How Inventory Robots are Revolutionizing Retail

Secure IoT Office

06 Feb 2024 — 7 min read

Are you tired of walking into a store and finding empty shelves or missing products that you intended to purchase? If so, you're not alone. Retailers have long grappled with the challenge of keeping their shelves fully stocked, and it's a problem that has cost them billions of dollars. But there's a new player in town – inventory robots.

The Inventory Problem

Empty store shelves and out-of-stock items havebeen a persistent headache for retailers. In 2021 alone, US retailers lost a staggering $82 billion due to missed sales caused by these issues. Whether it's your favorite snack or a crucial household item, the frustration of finding products missing from the shelves can drive customers away.

The Labor Challenge

To make matters worse, retailers have been struggling with labor shortages. By the end of November 2022, nearly 900,000 retail jobs remained unfilled. The competition for workers, especially for physically intensive tasks like restocking shelves or packing boxes, has been fierce. This is where robots come into play.

The Rise of Inventory Robots

Retailers are increasingly turning to robots and automation to address these challenges. These inventory robots are designed to handle tasks like verifying price tags, checking for out-of-stock items, and even monitoring inventory levels. They not only make the process more efficient but also provide retailers with valuable data about customer preferences.

How Inventory Robots Work

Equipped with cameras and sensors, these autonomous robots roam store aisles, capturing images of shelves. These images are then uploaded to a cloud environment, where advanced algorithms determine which products are out of stock, mispriced, or in the wrong position. This real-time data allows retailers to respond quickly and keep their shelves well-stocked.

The Impact on Retailers and Workers

The adoption of inventory robots has the potential to revolutionize the retail industry. Here's how:

Efficiency: Robots can work consistently, without getting tired or calling in sick. This means that routine tasks, like inventory counts, can be completed more efficiently and accurately.
Cost Savings: By automating labor-intensive tasks, retailers can save on labor costs. For instance, eliminating the need for manual inventory counting can translate into significant annual savings.
Data Insights: Inventory robots not only maintain stock levels but also provide valuable data on customer preferences. Retailers can use this information to optimize their product offerings and improve customer satisfaction.
Labor Reallocation: With robots handling routine tasks, human workers can focus on roles that require cognitive skills, enhancing job satisfaction and potentially reducing turnover.

The Future of Robotics in Retail

The inventory robot market is booming, with companies like Simbe Robotics and Bossa Nova Robotics joining the fray. These robots are not just about maintaining inventory; they're about shaping the future of retail.

Imagine a world where robots efficiently move products within stores, fulfilling orders with speed and precision. This future isn't too far off, and it could transform the way we shop.

Embracing Robotics

Despite the challenges that come with developing and implementing robotics in retail, the benefits are clear. Consistency, efficiency, and cost savings make a compelling case for the adoption of inventory robots.

In the end, retailers are evolving to become more sophisticated in their operations. They're harnessing the power of robots to tackle challenges that have plagued them for years. While it may change the landscape of the retail workforce, it's a shift that ultimately benefits both retailers and consumers.

So, the next time you walk into a store, don't be surprised if you see a robot roaming the aisles, ensuring that your favorite products are in stock and ready for you to purchase.

You Summary:

00:00 📷 Challenges of Retail Inventory
- Retailers face challenges such as empty shelves and out-of-stock items.
- Missed sales from these issues cost US retailers $82 billion in 2021.
- Almost half of retailers identify out-of-stock items as their biggest challenge.
00:58 🛒 Robots in Retail: A Solution to Worker Shortages
- A shortage of retail workers, with almost 900,000 jobs unfilled in November 2022.
- Robots and automation are being used to handle physically intensive tasks, freeing workers for more cognitive roles.
- The inventory robot market is a $34 billion industry.
02:36 🧾 Inventory Challenges: Supply and Demand
- Challenges like fewer truck drivers, higher fuel prices, supplier issues, and changing consumer preferences impact inventory.
- Retailers struggle with out-of-stock items, leading to customer frustration and lost sales.
- Surplus inventory can lead to heavy discounts or even wastage.
04:04 🤖 Role of Robotics in Inventory Management
- Retailers are turning to robotics and automation to manage inventory more efficiently.
- Inventory robots can help save costs, free up workers, and improve accuracy.
- Data collected by robots can provide insights into customer preferences.
06:06 🧩 Brain Corp and Inventory Robots
- Brain Corp, known for self-driving technology for floor cleaners, expands into inventory robots.
- Walmart-owned Sam's Club uses inventory robots to collect data while cleaning floors.
- The robots use cameras and 3D technology for navigation and data collection.
07:32 📊 Data Collection and Customer Insights
- Inventory robots not only maintain stock levels but also provide valuable data on customer preferences.
- Retailers can monitor inventory and make data-driven decisions.
- The use of Stock Keeping Units (SKUs) helps distinguish different products in stores.
08:31 💼 Labor Cost Savings with Robotics
- Robotics and automation help reduce labor costs by automating routine tasks.
- Retailers can potentially save millions annually by eliminating manual inventory counting.
- The median salary for a retail sales worker is $29,000 a year.
09:34 🏬 Simbe Robotics and Tally
- Simbe Robotics' Tally autonomously scans 15 to 30,000 products per hour in supermarkets.
- BJ's Wholesale deploys Tally robots across its 237 locations to enhance inventory management.
- Warehouse robotics, such as those used by Amazon, are also on the rise.
10:31 🚚 Moving Products within Commercial Spaces
- The potential for robots to move products within commercial spaces is on the horizon.
- Robots can improve efficiency, speed, and accuracy in fulfilling orders.
- Labor-intensive tasks like order picking could benefit from automation.
11:29 🔧 Challenges in Robotics Development
- Robotics development faces challenges related to hardware, motor control, and sensor integration.
- Despite challenges, robots offer consistency and reliability in tasks.
- Retailers aim to use robots for more efficient and cost-effective operations.