How Inventory Drones Help 3PL Warehouses Find and Fix Inventory Errors

Many third-party logistics teams tell us how their customers are constantly raising the bar, asking them to continuously improve on-time shipping, decrease shrinkage and help them to meet the needs of their customers. In the meantime, 3PL warehouse operations managers are facing high employee turnover which they tell us can be 70% or more, making it difficult for inventory teams to properly train team members and maintain quality.

To help meet customer demands, cutting-edge warehouse teams today are entrusting their inventory monitoring to drones to count their inventory up to 15 times faster than with traditional cycle counting, helping them to easily find and fix inventory errors.

Our 3PL customers report the following benefits of our solution:

Decrease cost of inventory accuracy
Increase productivity
Boost revenue

Decrease cost of inventory accuracy

With our solution, inventory teams can count quickly and efficiently, 15x faster than with traditional methods. Barrett Distribution, a Gather AI 3PL customer, reports it has been able to reduce its cost per count by 70%. Additionally, Barrett has saved money because no Material Handling Equipment (MHE) is needed to count high up in the racks, and cycle counters are able to do more fulfilling work. Jim Rapoza, Barrett VP of Business Optimization, and Scott Hothem, SVP of Customer Solutions, say their teams have been able to reallocate $250k in MHE and reassign 6 cycle counters to do value-added tasks.

Finding and fixing inventory errors is much less costly with our solution. Now inventory managers can see the results of the inventory scans and make any adjustments necessary directly from their desks. One customer reported they are able to fix over 90% of inventory errors without visiting their warehouse floor.

Companies have seen their inventory accuracy improve. Jim Rapoza told us they have seen an inventory accuracy increase of over 70%, and another customer has seen its Warehouse Management System (WMS) error rate go from 11% to 3%.

Increase Productivity

An increase in license plate (LP) accuracy enables 3PLs to fulfill orders and meet service level agreements (SLAs) with their suppliers. Teams are able to focus on finding and fixing inventory problems, rather than scanning inventory.

Cycle counters no longer have to climb into a scissor lift or other piece of equipment and go to the top of the rack to scan. The drone easily flies up to the top of the racks and identifies what’s there.

Scott Hothem says Barrett’s customers have also agreed to eliminate or reduce physical inventory counts which greatly improves productivity.

Boost Revenue

Our 3PL customers have been able to leverage our solution to increase their sales. Sales teams show proof of accuracy to future customers as a sales and marketing tactic. They showcase this technology and its benefits in marketing materials and on tours. Overall 3PL sales use our solution to better manage complex inventory cases and upsell services thanks to increased accuracy.

For example, Barrett Distribution used our solution to help land a customer with very complex inventory requirements. The customer has over 500k uniquely serialized and bagged shoes and apparel that they entrust to Barrett. Finding a misplaced item is like trying to find a needle in a haystack, so Barrett uses our solution to help keep their inventory accuracy above 99.995%.

Conclusion

The adoption of drone-based inventory monitoring solutions by 3PL teams is revolutionizing warehouse operations, helping them meet customer demands and the challenges of high employee turnover. The benefits include decreased costs of inventory accuracy, increased productivity, and a boost in revenue. By counting inventory up to 15 times faster than traditional methods, drones enhance inventory accuracy and enable inventory teams to find and fix errors. The time and cost savings, along with improved operational efficiency, allow teams to focus on problem-solving and value-added tasks. Additionally, the use of drone technology provides a competitive edge for 3PLs, allowing them to showcase their accuracy to potential customers and secure complex inventory projects. Overall, drones are transforming the warehouse landscape, empowering 3PLs to meet the evolving needs of their customers and achieve higher levels of success.