6 Powerful Machine Learning Solutions To Automate Your Warehouses

6 Powerful Machine Learning Solutions To Automate You-01

6 Powerful Machine Learning Solutions To Automate Your Warehouses

In 2023, the worldwide warehouse automation market surpassed a value of 23 billion U.S. dollars. It is projected to experience a Compound Annual Growth Rate (CAGR) of approximately 15 percent in the coming years, leading to a market size of 41 billion U.S. dollars by 2027.

Investors place large wagers on cutting-edge robotics technologies and automation solutions as demand for faster and more efficient order fulfillment rises.

As consumers make smaller purchases and have higher expectations for order visibility, warehouse automation is becoming an increasingly important competitive advantage, especially for ecommerce businesses.

In this blog, our machine learning services provider will introduce you to six warehouse automation solutions powered by machine learning. Keep reading to learn about these cutting-edge technologies that can reform your logistics operations.

1. Label Processing and Automated Document

Label Processing and Automated Document-01

Manual labor and job knowledge are required to correctly enter the information from incoming invoices, vendor documentation, and product identifiers into backend systems. The overwhelming majority of warehouses process many documents daily, forcing employees to neglect more critical and time-sensitive tasks.

Automated document processing software utilizes a range of machine learning and deep learning algorithms to extract valuable information from documents and seamlessly update backend systems and databases in an automated manner. By doing this, you can allow for greater accuracy in the real world. You can train the models to manage a variety of document sizes, formats, and image quality. You can use a smartphone image of the document or label to configure the pipeline rapidly, and the program can extract the data and update the backend systems in under three seconds.

Below are the standard technologies that make up a warehouse document automation system.

OCR Text Extraction:

OCR Text Extraction-01

Powered by deep learning, OCR algorithms extract text from various document types (invoices, vendor documents, product labels, shipping documents, purchase orders, inspection reports, and more) in a warehouse setting. These algorithms are exceptional at deciphering difficult-to-read text, such as package labels, handwritten characters, hazy or blurry photographs, and product images. It relies upon robust pre-trained algorithms, such as TrOCR, to form the foundation of the architecture. The architecture is then enhanced using in-domain data to optimize precision for specific warehouse use cases. The use cases include Invoice Processing, Product Label Recognition, Vendor Document Analysis, Shipping Document Processing, Purchase Order Management, and Inspection Reports Analysis.

Information Extraction & Learning:

Information Extraction & Learning-01

A framework based on deep learning aims to evaluate documents and extract crucial information such as text positioning, size, keyphrases, classification, and other factors like Named Entity Recognition (NER), Sentiment Analysis, Language Detection, Text Summarization, etc. This procedure facilitates a better understanding of the interrelationships among the document’s text fields, including “QTY,” “Size,” and “Item.”

Post-processing Standardization:

After extracting data from documents and mapping it to the appropriate warehouse backend or database fields, the post-processing step ensures compatibility. The extracted elements may differ from the internal names or formats of the warehouse database. To resolve this issue, you can use several NLP techniques like Tokenization, Lemmatization and Stemming, Part-of-Speech Tagging (POS), Regular Expressions (Regex), etc., to standardize the data into a format suitable for the particular use case. You can ensure the seamless incorporation of the internal warehouse system.

2. Automated Invoice Matching

Automated Invoice Matching-01

Using automated invoice matching, you can standardize text across documents such as purchase orders, receipts, invoices, and inspection reports. Using the same pipeline as before can automate this somewhat manual process by extracting critical data such as line items, product titles, quantity, price, and contract terms, validating it across all required documents, and repurposing the pipeline.

Are you seeking to improve the efficiency of your invoice-matching process and logistics operations? Partner with a prominent machine learning services provider for expert advice and innovative IT business automation solutions.

We offer cutting-edge software development services related to ML tailored to automate warehouse activities. Get our machine learning consultation to embrace the future of warehouse automation!

3. Product Recognition Software

Product identification software identifies the portions of an image or video stream in which a product is present using computer vision techniques such as object detection and optical character recognition. The identified product area is subsequently matched to a particular SKU or unique identifier in the database using embedded vector similarity. Consequently, you can now automate the numerous warehouse and logistics processes.

This software can improve conventional object recognition and provides several significant benefits for a warehouse environment:

1. Unlike conventional object recognition, which identifies entire objects without distinguishing different parts, product recognition allows for a more in-depth evaluation. This enables the location of specified SKUs or sizes for the same primary product.

2. The dynamic nature of the software also allows for seamless support of new products or box layouts without requiring retraining the models from scratch. In conventional object recognition, adding a new product or packaging design to the list of potential matches would necessitate retraining the pipeline. However, with product recognition, you can easily update the database images to include new products or crates.

3. You can get scalability to more unique SKUs and IDs with less initial data. The embedded vector similarity approach allows the system to represent and compare products in a high-dimensional space efficiently.

Use Case of Warehouse Product Recognition

Here is an example of how you can leverage the benefits of this architecture in the real world. Imagine you are a Coca-Cola distributor offering year-round support for all Coca-Cola products. You can treat the two boxes (12 packs of cans), A and B, as essential products with their distinct SKUs.
Hundreds of images with varying noise levels and numerous training cycles would be required for object detection to distinguish between these two products. You had to retrain whenever the box received a special occasion or antiquated design.

You must collect photographs and retrain to promote this new box design for the 12-pack of cans. Using the product identification architecture, you need only upload this image to the database and link it to the unique identifier of the original 12-can pack. As you attempt to scale the use of the software, the requirement for updating to new package designs, adding new SKUs, or other significant changes to the product you are attempting to detect arises.

4. Slotting Optimization Algorithms and Warehouse Space

Warehouses and distribution centers always try to maximize their space by optimizing their inventory levels and anticipated needs. Seasonal shifts, unanticipated early or late inventory, and inadequate space management all contribute to the overburdening of these businesses. As a result, stock transportation is inefficient, high expenditures, and more physical effort is vital for each inventory action. Planning and optimizing warehouse space can be complex due to various factors, including the total warehouse area, projected inventory, and demand optimization. It can be challenging to model and solve this problem manually.

Warehouse space and slotting optimization algorithms aim to solve the problem of using warehouse space efficiently by treating it as a multi-variable optimization problem. The goal is to find the best arrangement of items in the warehouse to maximize space utilization. Studies have shown that utilizing these algorithms in warehouse operations can lead to significant benefits, such as a boost in storage capacity by 120-150%, a 37% increase in productivity, and a reduction in operational costs.

Understanding these principles offers several significant benefits:

• How much space does a particular object or item require concerning how often they are accessed or relocated?
• Using historical and projected data, the rate of input and output from the warehouse for a specific item concerning the abovementioned factors. This information is frequently utilized in simulation-style environments to maximize the available space for new products and seasonal volume fluctuations. One of the appealing advantages is that you only need your sales data to get started with this aspect, simplifying the setup process.
• What are the specific objectives and constraints to achieve desirable outcomes with these optimization algorithms? This can be anything, including the number of workers required to convey a product, the number of products for grouping, the product’s color, etc. In most ML/AI problems, having a clear statement of the objectives makes it easier to achieve the desired outcome, so we recommend placing a great deal of emphasis on this phase.

5. Automated Sortation Systems

Automated sortation systems are a critical component of modern manufacturing and distribution operations. These systems use advanced technologies like RFID (Radio Frequency Identification) scanners and various sensors (Photoelectric Sensors, Proximity Sensors, Infrared Sensors, Ultrasonic Sensors, etc.) to organize and direct products on conveyor belts efficiently. When you automate the sorting procedure, these systems increase the speed, accuracy, and total efficacy of order fulfillment through several supply chain phases. Let’s examine the two vital types of sortation systems:

• Case sorters: Case sorters help categorize larger containers such as totes, pallets, and shipping containers. The purpose of a case sorter is to reduce manual handling. They are frequently employed in economic sectors where bulk shipments of identical goods are received, sorted, and shipped. For instance, in a chemical factory’s distribution center, storing different chemicals in various containers. Case sorters help organize (large) containers and ensure the filling of correct orders.
• Unit sorters: Unit sorters are helpful for smaller items and have applications in direct-to-consumer (DTC) and e-commerce companies that manage individual items and fulfillment trips.

6. Data Matching

Data matching software uses natural language processing techniques to check if different product data fields are similar. These algorithms have learned relationships between the data points. It allows them to anticipate similarity even with some variation and uncertainty. The latest versions of these algorithms are designed to quickly add or remove fields while maintaining high accuracy.


As the demand for efficient warehouse administration increases, businesses must embrace machine learning to remain competitive. By collaborating with machine learning service providers, warehouses can automate document processing, enhance product recognition, optimize space, and improve sortation systems. This can result in increased productivity, decreased costs, and enhanced customer satisfaction.

So, get our machine learning consultation and warehouse-specific IT business automation services? Streamline warehouse operations to increase productivity, reduce costs, and gratify customers. Contact Sky Potential US immediately for the best software development services and maximize your warehouse operations with our cutting-edge machine-learning solutions.

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