Project Overview
A major retail warehouse in Italy struggled with operational inefficiencies such as delays and errors in inbound shipment processing. Manual counting, slip verification, and ERP entry took hours per truck, often leading to mismatches, shrinkage, and rising labor costs.
We deployed AI-driven agents to automate receiving, reconciliation, and inventory updates, leading to automation and optimization of warehouse workflows.
The result: streamlined workflows, faster operations, reduced dependency on manual labor, and scalable modernization of warehouse management.
Key Challenges
- Inbound Receiving Delays Each shipment required manual unloading, box counting, and slip verification, stretching processing times to several hours. These delays slowed warehouse operations, affected downstream logistics, and reduced overall efficiency. Over time, they became a major bottleneck, preventing the client from scaling smoothly and keeping pace with high-throughput demands.
- Frequent Inventory Mismatches Errors crept in due to manual slip checks, miscounts, and ERP entry mistakes. Mismatches between physical inventory and system records created serious challenges, often leading to confusion in stock reconciliation. This not only impacted real-time accuracy but also undermined trust in the data used for forecasting and planning.
- Delayed Stock Visibility Traditional processes meant that inventory updates in the ERP system were not immediate. This lag created blind spots in stock availability, making it difficult to manage replenishment or anticipate shortages. Decision-making became reactive instead of proactive, leading to delays in planning, poor forecasting, and missed opportunities in inventory control.
- High Labor Dependency Manual inbound processing required three to four staff per shipment for unloading, verification, counting, and data entry. This heavy reliance on labor increased costs, created inefficiencies, and left operations vulnerable to human error. It also prevented staff from focusing on higher-value activities that could drive long-term warehouse productivity.
Our Solution
AI Vision Agents
We introduced Vision AI agents capable of automatically detecting and counting boxes in real time through photo uploads and CCTV integration. This eliminated manual counting, reduced the risk of errors, and significantly shortened receiving time. The system ensured speed, accuracy, and consistency across all incoming shipments for the client.
ERP Sync Agents
ERP Sync agents directly integrated with existing warehouse systems, updating inventory records in real time. This eliminated manual data entry and ensured that the ERP reflected actual stock levels instantly. By automating updates, the solution improved forecasting, enhanced visibility, and established trust in system-generated stock information across locations.
Document & Reconciliation Agents
Document agents used LLM and OCR to parse slips, extracting key details such as SKUs, expiry dates, lot numbers, and vendor data. Reconciliation agents compared this against purchase orders and ERP records, flagging mismatches or anomalies instantly. Together, they improved accuracy, reduced shrinkage, and created reliable audit-ready processes.
Predictive Dashboards
Predictive dashboards gave supervisors real-time visibility and insights into warehouse operations. Powered by AI-driven forecasting, they highlighted restocking needs, flagged discrepancies, and provided trends for smarter planning. Instead of reacting to issues, managers could proactively address shortages, resolve mismatches, and make data-driven decisions, ensuring smooth, efficient warehouse performance.
Benefits Delivered
Faster Inbound Processing
Inbound processing time dropped drastically, with AI agents reducing hours of manual work to near real time. Shipments that once took up to four hours could now be processed within minutes. This speed not only improved overall warehouse efficiency but also unlocked scalability for high-throughput logistics operations.
Improved Stock Accuracy
Stock accuracy levels rose to 98% after deploying AI-powered agents. Automated slip parsing, reconciliation, and ERP syncing minimized human errors. Accurate inventory meant fewer disruptions in downstream processes, stronger demand forecasting, and better customer satisfaction. Reliable data became the backbone of smarter supply chain and warehouse decision-making.
Reduced Labor Dependency
Automation cut labor requirements for inbound processing by nearly 50%. Tasks once requiring several staff could now be handled by one or two people with oversight. This freed up employees for higher-value work, reduced operational costs, and created a more productive and resilient workforce in the warehouse.
Shrinkage & Misplacement Reduced
Shrinkage and misplacement of goods decreased by 70%. With reconciliation agents constantly monitoring data and AI vision ensuring correct counts, errors and losses were flagged early. This not only protected inventory but also built accountability and transparency into the system, resulting in stronger financial outcomes for the client.
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