The Rise of Artificial Intelligence (AI) in Hybrid Fulfillment Warehousing

AI Adoption by Hybrid Fulfillment Operations

To improve hybrid fulfillment operations, you must be able to monitor and improve workflows systemically, automate manual processes, and minimize guesswork as much as possible – all things AI is geared to do. According to McKinsey & Company’s industry insights, businesses that adopt AI into their supply chain operations have seen a 15% improvement in logistics costs, a 35% improvement in inventory levels, and a 65% improvement in service levels. 

In the previously mentioned Retail Info Systems study, researchers found that 70% of retailers and providers of consumer goods who added AI to their warehouse and supply chain approach realized  major improvements to their automation and planning execution. Moreover, 56% said automating manual processes improved their ability to respond to changing demand. 

When it comes to growing hybrid operations, you need to keep operational costs low while opening up your channels to future growth. The benefits of AI make this possible. Learn more in our resource, “The Critical Role of Artificial Intelligence in Warehouse Operations.”

Benefits of AI on Hybrid Warehouse Operations

Managing supply chain operations is hard enough without the added difficulties of juggling B2B and DTC orders. One of the primary reasons why is because humans often fail to recognise problems or inefficiencies in large amounts of data. However, AI can work without rest to analyze trends and use new insights to identify weak areas in your fulfillment processes, forecast demand, control inventory levels, schedule maintenance, and essentially keep potential failures from ever having the chance to occur. 

AI technology can help you and your warehouse: 

A Case for AI in Warehouse Management Systems (WMS)

Conducting B2B and DTC fulfillment in the same warehouse is not just possible, it might just be the future of warehousing. It requires dedicated planning and the help of high-tech solutions like AI. A Cloud-based fulfillment platform streamlines warehouse management processes and uses AI to aid both B2B and DTC operations. 

For both B2B and DTC warehouses, warehouse management solutions provide the visibility and control needed to lay out successful hybrid operations. Custom algorithms and AI-powered software ensure your inventory is moving as smoothly as possible and alert you when it is not. Leading ecommerce solutions even let you specify different picking processes for the various areas of your business (ex. mass picking for DTC orders and first-come first-leave picking for B2B clients), so neither your B2B or DTC processes become strained or limited by the other. 

For more insight into how leading WMS technology manages hybrid fulfillment operations, check out our case study with Badger Fulfillment Group. Using Logiwa’s direct putaway algorithms and AI-powered picking and packing, they were able to easily manage B2B, B2C, and location-to-location (LTL) order fulfillment while eliminating inaccuracies throughout their entire fulfillment network. 

To learn more about Logiwa WMS, reach out to our team of warehousing and supply chain specialists or request a demo today.