Rise of the Warehouse Drones: A New Era in Inventory Control

The use and popularity of drones within the warehouse are on the rise. In this article, we explore why they are starting a new era in inventory control.

Businesses are always trying to be more efficient with their warehouse inventory, but things don’t always go smoothly. Take retail operations in the U.S., for example. They have an average accuracy rate of just 63%. This can wreak havoc on restocking schedules, leading to empty shelves and unhappy customers. It’s caused by issues such as:

• High Labor Intensity: Manual stock checks and data entry demand significant manpower, leading to a bottleneck in workflow efficiency, especially in large-scale operations.
• Time-Consuming Processes: Doing inventory the old-school way means lots of repetition and a snail’s pace process. This can lead to order delays and a horde of angry customers. 
• Human Error: We all make mistakes, especially when we’re doing the same thing over and over again. A small error in counting or recording can lead to either too much stock or not enough, and both can hit the business hard.
• Data vs. Reality Mismatch: Having up-to-date info is crucial. Sadly, traditional inventory methods often can’t keep up, leaving a gap between what’s really in stock and what the records say.
• Accessibility Challenges: Certain areas in warehouses, especially high shelves or hazardous zones, come with their own set of problems. Reaching these areas for stock checks takes long and raises safety concerns for the staff involved.
• Limited Scalability: As businesses grow, their inventory needs expand. Traditional methods slow things down with increased complexity and resource demands. You end up yourself struggling to stay competitive.

How Companies Are Winging Warehouse Operations

The cargo, courier, and warehousing industry is currently undergoing a significant expansion with drones. As per the 2023 Drone Market Report from Drone Industry Insights, we’re talking about a growth of 15.7% every year!

Quadcopters are some of the common drones used, mainly for their agility and vertical takeoff and landing (VTOL) capabilities. They can easily navigate through tight spaces. Fixed-wing drones are used for larger warehouses due to their longer flight endurance.

For instance, Tesla’s Giga Berlin factory now employs two autonomous drones, “Pathfinder” and “Opportunity.” These tethered drones can count as many as 12,000 pallets daily. IKEA has also turned to UAVs in its warehouses globally. The company uses Verity drones to scan pallets on nightly missions, greatly refining their stock accuracy.

Benefits of Drone Automation in Warehouses

Precision in Inventory Tracking

Equipped with advanced scanning technologies, drones can count items fast and way more accurately than we could by hand – even scanning barcodes and RFID tags from a distance. Such was the case with Langham Logistics in Midwestern U.S, where the use of drones increased their inventory accuracy rate from 97% to over 99%, reducing their daily inventory-related issues from 20-30 to 1-2?.

Time-Saving Operations

Drone pilots can quickly maneuver them through the warehouse, covering large areas in a fraction of the time it would take a human. The entire inventory process gets a boost, and you can also undertake more frequent stock checks. In fact, by bringing in the duo of drones and ground-based robots to keep track of inventory, businesses can cut down the time spent on inventory checks by 90%.

Cutting Costs

With drones, you don’t need as many hands on deck for inventory checks. At Langham, they scaled down from a team of four and a supervisor to just the supervisor and one team member. This shift not only saves money but also frees up staff for other important tasks. Plus, you can save on equipment like automated lifts and insurance. Accurate inventory data also helps avoid overstocking or running out of stock, dodging unnecessary expenses.

Safer Workplaces

Drones are great for reaching high shelves or dangerous spots safely, reducing the risk of accidents that can happen with ladders or forklifts. A safer work environment is always a big win.

Easier audits

Inventory audits are essential but often cumbersome. Drones makes them a breeze by quickly scanning and verifying stock, making the whole process more efficient and less error-prone. AS a welcome bonus, you can have audits more often without messing up the workflow.

Smart Warehousing: Drones and WMS in Harmony

The next natural step is bringing synergy between drones and Warehouse Management Systems (WMS). How does this help?

Real-Time Information Exchange

When drones work with WMS, they send data straight to the system. Companies like PFS are planning indoor drone deployments in partnership with technology providers like Vimaan. The drones sync with the WMS and capture information from every single level of the warehouse. In fact, they have the capacity to scan around 1,500 inventory locations per hour?.

Automated Inventory Processes

Drones can be set up to do regular inventory sweeps. This saves heaps of time and keeps the audits rolling in regularly and thoroughly, ensuring that the WMS always reflects the current state of the warehouse.

Making Space Work Smarter

Managers get to figure out out how to use warehouse space more effectively. Drones can spot areas that aren’t being used well, so managers can tweak the layout based on solid data within the WMS.

Smart Decisions All the Way

The combination of drone-collected data and WMS analytics tools offers powerful insights. Business owners can analyze trends, predict stock requirements, and make informed decisions about inventory management, all based on accurate, real-time data.

Simplified Compliance and Reporting

Drones can assist in compliance management by ensuring inventory practices meet industry standards. Working with the WMS, they facilitate easy generation of reports for compliance and auditing purposes, simplifying what is often a complex and time-consuming process.

Enhanced External Security:

 The security team gets a boost too. The UAVs swiftly capture multiple images of a property’s exterior and upload them to the cloud. This gives on-site security personnel extra surveillance tools.

The Flip Side: Challenges in Warehouse Drone Automation

While bringing drones into your warehouse operations has its perks, there are some issues to keep an eye on:

• Legal Frameworks: Different regions have varying regulations concerning drone flights, especially in commercial settings. Ensuring compliance is key to avoid lawsuits and fines.
• Initial Setup Costs: The initial investment in UAVs can be significant. This includes the cost of the drones, software integration, and any necessary infrastructure modifications. Businesses need to evaluate the return on investment and plan their budgets accordingly.
• Preparing the Workforce: Effective implementation of drone technology requires a skilled workforce. Employees need to be trained not only in operating the drones but also in interpreting the data collected. 
• Adapting to Different Conditions: Drones may face limitations in certain environments. For instance, they might be less effective in warehouses with very high ceilings or in areas with a lot of interference. Knowing which drone is suitable for the situation based on its capabilities is important for getting the job done right.
• Maintenance and Upkeep: Just like any tech, drones need TLC to stay operational. Businesses need to consider the ongoing costs of repairs, battery replacements, and software updates in their planning. Software (and the drones selected) should be compatible with the existing WMS infrastructure.
• Data Security and Privacy: As drones collect and transmit data, ensuring the security and privacy of this information is paramount. Implementing robust cybersecurity measures is essential to protect sensitive business data.

Tips for Implementing Drone Technology in Warehouses

• Start with a Clear Vision: First things first, figure out what you need. What’s the size of your operation? What kind of stuff are you storing? What problems are you hoping these drones will solve? Knowing all this helps you pick the perfect drone setup for your needs.
• Choose a Partner, Not Just a Supplier: Select a vendor that not only provides the technology but also offers ongoing support and consultancy. Look for vendors with experience in your industry and those who can offer tailored solutions. 
• Test Before Full-Scale Implementation: Try out the drones in a section of your warehouse and see how things go. This pilot phase is a great way to see how drones will work in your space and sort out any issues before you fully commit.
• Empower Your Workforce: You want your staff onboard, and comfortable with the drone tech. Train and have discussions with them about any concerns they may have about the new systems.
• Integrating with Existing Systems: Work closely with your IT team or an external consultant to integrate drones with your existing WMS. Ensure that the data flow is smooth and reliable.
• Stay on top of drone TLC: Schedule routine checks and allocate resources for potential repairs and software upgrades. That way you can avoid any surprise grounded drones.

Scaling – Think Long-Term: As your business grows, your drone solution should be in lock-step with it. Opt for a system that can adapt as needed. A future-proof solution that evolves with your warehouse.

Modernise your warehouse operations with IoSCM. Call 0800 1422 522 today to find out more.