Drones and GIS: A Dynamic Duo for Warehouse Optimization

1. Overview and Background

The use of drones in warehouses has been increasing over the past years. Large warehouses are aiming to increase efficiency by investing more in automation and robotics. This is not without precedence since the cost of warehousing operations account for 30% of the total costs in logistics. Furthermore difficulty to attract skilled labors, increasing demand for customer services and the rise of e-commerce have intensified the need to further increase efficiency in warehouse operations. The fourth industrial revolution is also affecting warehouses. They become more digital and more connected—as in “warehouse". New scanning technologies, bar codes, QR codes, radio frequency identification (RFID) technologies and artificial intelligence (AI) enable drone-driven automations in warehouses. Moreover, onboard computing power and efficient algorithms allow for the implementation of scalable drone applications. However the structure of warehouses are diverse with different complexities which impose constraints for the rollout of a drone program. They differ in terms of geographic location, type of stored items, layout (e.g. shelf, pallets, and boxes), size and technology. The function of warehouses is also diverse. For example, a distribution warehouses is operating differently from cross-docking warehouse and factory warehouses for raw materials and finished goods. Drones have started to play a central role in the automation of current warehouses. They are popular due to their ability of drones to fly and hover autonomously, avoid obstacles in different warehouse layouts, navigate indoor, land precisely and potentially operate in fleets. The three most promising areas of indoor drone use cases in warehouses are inventory management, intra-logistics of items as well as inspection and surveillance.

2. Key Drivers for Drone Adoption in Warehouses

1. Cost Efficiency: Warehousing operations are a major cost component in logistics. By automating tasks with drones warehouses can reduce labor costs and improve operational efficiency.
2. Labor Shortages: The difficulty in attracting skilled labor has made automation an attractive solution. Drones can perform repetitive and physically demanding tasks, reducing the reliance on human workers.
3. E-commerce Growth: The rise of e-commerce has increased the demand for faster and more accurate order fulfillment. Drones can help meet these demands by speeding up inventory management and intra-logistics processes.
4. Rising Customer Expectations: Increasing demand for faster delivery times and improved customer service puts pressure on warehouse efficiency.
5. Fourth Industrial Revolution: The integration of digital technologies, such as AI and IoT, is transforming warehouses into smart, connected facilities.

3. Challenges and Constraints

Despite the benefits the rollout of drone programs in warehouses faces several challenges:

• Diverse Warehouse Structures: Warehouses vary in geographic location, type of stored items, layout (e.g., shelves, pallets, boxes), size, and technology. These differences impose constraints on the implementation of drone programs.
• Varied Functions: Different types of warehouses (e.g., distribution centers, cross-docking facilities, factory warehouses) have unique operational requirements which can complicate the deployment of drones.

4. Leveraging Drone Technology for Warehouse Automation

Here's a detailed breakdown of how these technologies are being harnessed:

Core Technologies Enabling Drone Automation

Scanning Technologies:

• Barcodes and QR Codes: These traditional methods when integrated with drone vision systems, allow for rapid identification and tracking of products.
• RFID (Radio Frequency Identification): RFID tags attached to products or pallets can be read by drone-mounted scanners providing real-time data on inventory location and quantity.

Artificial Intelligence (AI):

• Computer Vision: AI-powered computer vision algorithms enable drones to accurately recognize objects, read labels and detect anomalies.
• Machine Learning: ML algorithms can be trained on vast amounts of data to optimize flight paths, improve obstacle avoidance and enhance decision-making capabilities.

Sensor Fusion:

• LiDAR (Light Detection and Ranging): LiDAR sensors create detailed 3D maps of the warehouse environment allowing drones to navigate autonomously even in complex layouts.
• Ultrasonic Sensors: These sensors provide precise distance measurements aiding in obstacle avoidance and safe landing.
• Inertial Measurement Units (IMUs): IMUs measure acceleration and angular velocity helping drones maintain stability and orientation during flight.

5. Key Drone Applications in Warehouses

Cycle Counting

• Automated Counting: Drones equipped with high-resolution cameras and AI algorithms can rapidly scan and count inventory items on shelves, pallets or in storage bins.
• Real-Time Data: The captured data is processed instantly providing real-time inventory counts and identifying discrepancies.
• Reduced Labor Costs: By automating the cycle counting process businesses can significantly reduce labor costs and allocate human resources to more strategic tasks.
• Minimized Errors: Drones can eliminate human error, ensuring accurate inventory records and preventing stockouts or overstocks.

Stocktaking

• Rapid Inventory Assessments: Drones can quickly fly through warehouse aisles capturing images of inventory items and generating detailed reports.
• Real-Time Inventory Visibility: By analyzing the captured images, drones can provide real-time insights into inventory levels, location and condition.
• Improved Inventory Accuracy: Drones can identify and report discrepancies such as missing items, damaged goods or incorrect product placements.
• Enhanced Decision-Making: Real-time inventory data enables businesses to make informed decisions about procurement, production and distribution.

Shelf Audits

• Automated Shelf Checks: Drones can systematically scan shelves to identify out-of-stock items overstocked items and items with incorrect pricing or labeling.
• Proactive Stock Replenishment: By detecting low stock levels drones can trigger automated replenishment orders, ensuring optimal inventory levels.
• Damage Detection: Drones can identify damaged goods and report them for immediate action preventing losses and maintaining product quality.
• Optimized Shelf Layout: Drones can analyze shelf layouts and suggest improvements to optimize product visibility and accessibility.

Daily management functions

• Planning – finalizing the daily plan for receiving dock activity selecting the workload/orders to be processed in the day or shift.
• Organizing – sequencing the orders to be picked. Organizing orders for picking can be accomplished in many ways, meeting the needs of the user.
• Staffing – assign staff to work functions and areas, by wave to minimize staging.
• Directing – ensuring the documented processes and procedures are embedded in the WMS and are consistently applied used and appropriate for the nature of the work and service level intentions of the company.
• Controlling – providing milestones for management to monitor progress through the day providing the opportunity to respond to problems in a timely way and report data for performance analysis.

Management

• Internal Logistics- For internal/ in campus logistics there is a use of physical documentation for parcel delivery which generally rely on clerks. With use of UAVs it is easier to keep the records with automated process with more efficiency. The remote surveillance monitors the campus provides real-time data.
• External Logistics- Drones can be used for emergency supplies, food deliveries, E-commerce deliveries and other logistic applications.

Ware-House Management- When it comes to repetitive barcode scanning operations out of reach of a human drones can be faster and more energy efficient than using any other device. The time and labour saving benefits are especially evident in stock counting of large uniform warehouses containing thousands of handling units above head height. New scanning technologies, bar codes, QR codes, radio frequency identification (RFID) technologies and artificial intelligence (AI) enable drone-driven automations in warehouses.

6. Aim of Drone Technology in Warehouses

Aim

The overarching aim of implementing drone technology in warehouses is to revolutionize warehouse operations by enhancing efficiency, accuracy and safety. The primary aim of implementing drone technology in warehouses is to enhance operational efficiency, reduce costs and improve accuracy in various warehouse processes. By leveraging advanced automation warehouses can better meet the demands of modern logistics and e-commerce.

7. Detail Approach & methodology

Inventory Management -: In the area of inventory management drones can be used for the following tasks: inventory audit, inventory management, cycle counting, item search, buffer stock maintenance and stock taking. Stock taking is the physical verification of the quantity of items stored in warehouses. Stock taking is often done annually or by the end of the fiscal year. Whereas cycle counting describes the process of counting a partial amount of a warehouse’s inventory on a more frequent basis. This task is usually performed daily or weekly by a small trained team of inventory control staffs. They walk or drive to a designated location in the warehouse, scan the barcode of the item, count the units and move on to the next location following their schedule. Even though this method increases the inventory accuracy compared to the annual one-time inventory checks, there are still several downsides. Among others, cycle counting is slow (manual task), labor-intensive (several inventory staffs are needed), dangerous (risky operations due to working in high altitudes), expensive (labor costs) and error-prone (highly repetitive tasks). Drones can add value to optimize this process. The main objectives of using drones for inventory management are to increase the inventory accuracy, decrease labor costs, and minimize dangerous tasks for the workforce.

Intra-Logistic-: Drones can also be used for intralogistics. For instance they can transport parts from warehouses to workshops in factories. The ability of drones to follow pre-defined flight paths and carry items show good potential for indoors such as on-site express delivery of tools and spare parts as well as lubricants. However significant limitations for intralogistics is payload, gripping/placing movements and navigation.

Inspection & Surveillance-: Drones can be a viable alternative to replace manual inspection and surveillance operations in warehouses. Drones are already used for inspection in many industries such as construction, petrochemical, oil and gas and power generation. Indoor use cases of drones for inspection is also growing. In warehouses drones can for example inspect roofs, racks, pallet placements, walls and ceilings. The growth of warehouse operations and customer demand makes inspection processes expensive and difficult. Indoor inspection tasks often require skilled inspectors and sometimes work is obstructed during inspections. Indoor drones are a perfect fit for tasks that require monitoring and inspection in dangerous areas or high altitudes. Drones can also be used for regular surveillance routes to prohibit theft and other unwanted behavior.

Warehouse Safety & Security-: Human financial and infrastructural capital is extensively involved in warehouse operations – making safety & security a prime business driver for Warehouse. Safety incidents involving forklifts, loading docks, goods conveyors, hazardous materials storage and manual lifting and handling account for thousands of human injuries and millions of lost worker-days each year. Insurance premiums, fines, healthcare/death compensation settlements, safety training & audits all put a significant dent in profit. margins for many warehouses. Worse, warehouse vandalism and theft account for hundreds of millions of losses each year. Goods, machinery and equipment are all vulnerable – but so are confidential documents, personal archives, and financial records in a fully digitized world.

Proactive technology adoption, involving fully autonomous drone fleets, can directly reduce safety incidents and losses caused by:

● Manual inventory counting in high, hard-to-reach or hazardous areas.

● Worker slips, trips & falls, movement near forklifts or in narrow spaces.

● Manual monitoring and engagement with vandals and thieves.

● Shifting/falling heavy items, dangerous goods, blind spots, etc.

● Manual inspection of warehouse roofs for weather related damage.

Drone Automation in Warehouse-: Computers and smartphones provide a perfect analogy for commercial drone hardware. By building a fleet of small, light weight drones complemented with a few high-end application-specific ones warehouse operators and system integrators can drastically lower both the upfront and operating costs of large-scale UAV adoption.

Integrated with affordable charging pads and docking stations drones can fly for hours inside a warehouse by automatically recharging their batteries at strategically placed charging stations. Of course this requires the software stack to be not only hardware agnostic but also enable software developers and system integrators to rapidly build intelligent plug-ins at the edge and cloud layers of the drone technology stack. The flight path planning, takeoff, precision landing, return-to-home and obstacle avoidance capabilities must be entirely software-driven for warehouses to transition from drone PoC projects and pilot programs to enterprise-wide adoption.

Again software plays a central role – APIs at appropriate layers in the stack allow for easy integration of drones into legacy warehouse workflows as well as application-specific workflows such as empty slot detection, automatic item recognition, narrow aisle navigation, etc.

Data Analytics and Reporting

• GIS Mapping: Utilize GIS to create detailed maps of warehouse layouts, including storage locations and pathways. This can help in planning and optimizing space utilization.
• Analytics Dashboard: Develop a centralized dashboard that integrates data from drones and GIS, providing actionable insights and comprehensive reports on warehouse operations.

Integration with Existing Systems

• API-Based Integration: Ensure seamless integration of drone and GIS technologies with existing WMS and ERP (Enterprise Resource Planning) systems through APIs. This allows for smooth data flow and operational coherence.
• Cloud Connectivity: Leverage cloud platforms to store and process data collected by drones enabling remote access and real-time decision-making.

7. Drone Program for Warehouse

The following best-practices will accelerate the success of drone adoption for warehouse applications:

1. Minimize CapEx budgets and infrastructural changes by building a fleet of (primarily) drones complemented by charging pads and docking stations.

2. Opt for cloud-connected drone fleets powered by intelligent automation complemented by certified pilots who focus on supervisory and regulatory aspects.

3. Ensure that drone hardware and software both have collision avoidance capabilities that can be continuously improved.

4. Leverage high-quality image, video capture and recording capabilities of UAVs to build a rich real-time view of warehouse operations.

5. Involve a comprehensive set of stakeholders (such as in house R&D teams, innovation leaders, system integrators, warehouse managers, IT staff, drone operators and technology consultants) early on to prioritize use cases.

6. Start with a couple of medium complexity use-cases involving up to three drones, especially applications where case studies of successful drone PoCs and pilots already exist.

7. Validate the business case (investment, payback period, RoI, impact on KPIs) for these use cases within weeks and grow the fleet to ten or more drones for validation of additional use-cases.

8. Use customized, cloud-based dashboards to coordinate missions across stakeholders i.e. warehouse workers, drone operations management, subject-matter experts and senior executives.

9. Leverage software APIs to seamlessly integrate drone mission control and data collection into Warehouse management systems.

10. Adopt cloud-based SaaS offerings instead of on-premise enterprise software wherever possible to benefit from rapid scalability, continuous upgrades, prompt technical support and flexible pricing.

8. Case Studies in India

1. Maharashtra: E-commerce Warehouse

In Maharashtra a leading e-commerce company implemented drones for inventory management in its large distribution center. The drones equipped with advanced scanning technologies, performed regular inventory checks, reducing the time taken from days to hours. This led to a 30% increase in inventory accuracy and a significant reduction in labor costs.

2. Karnataka: Food and Beverage Warehouse

A food and beverage company in Karnataka adopted drones for intra-logistics within its warehouse. The drones transported items between different sections, streamlining the movement of goods and reducing manual handling. This improved overall productivity by 25% and minimized the risk of product damage.

3. Tamil Nadu: Manufacturing Warehouse

In Tamil Nadu a manufacturing company integrated drones for inspection and surveillance in its factory warehouse. The drones monitored warehouse conditions, inspected hard-to-reach areas, and provided real-time surveillance. This enhanced security and safety, reducing the incidence of workplace accidents by 20%.

4. Gujarat: Pharmaceutical Warehouse

A pharmaceutical company in Gujarat used drones to manage its inventory of raw materials and finished goods. The drones' ability to navigate complex warehouse layouts and avoid obstacles ensured accurate stock counts and timely replenishment. This led to a 15% improvement in order fulfillment speed and higher customer satisfaction.

5. Gujarat:

• Drone-based Surveillance: Drones are being used for security surveillance in industrial areas and warehouses to monitor for unauthorized access and other security threats.

6. Maharashtra

• Mumbai Airport's Drone Trials: Mumbai Airport has been conducting trials to use drones for cargo transportation within the airport premises. This could be a potential model for intra-warehouse logistics in large warehouses.

7. Tamil Nadu

• Chennai Port's Drone Trials: Chennai Port has been exploring the use of drones for security surveillance and inventory management within the port area. This could be a potential model for large warehouse facilities located near ports.

9. Software Used in Warehouse Management with Drone and GIS Technologies

Here are some key software tools and platforms used in this domain:

1. Warehouse Management Systems (WMS)

• SAP Extended Warehouse Management (EWM): Integrates with drone technology to provide real-time inventory tracking and management.
• Oracle Warehouse Management Cloud (WMS): Offers robust features for inventory management, integrating with drones for automated stocktaking and data collection.

2. Drone Management Software

• Gather AI: Provides autonomous drones for inventory management offering real-time data collection, analysis and insights. It helps reduce inventory errors and improve productivity
• FlytBase: A platform for deploying and managing drone fleets, FlytBase supports various warehouse automation tasks including inventory audits and intra-logistics.

3. Geographic Information Systems (GIS)

• Esri ArcGIS: A powerful GIS platform that helps in mapping and spatial analysis. It can be used to create detailed warehouse layouts and optimize drone navigation paths.
• QGIS: An open-source GIS software that provides tools for mapping, spatial analysis and integration with other data sources supporting efficient warehouse management.

4. Data Integration and Analytics

• Tableau: A data visualization tool that can integrate with WMS and drone data to provide comprehensive dashboards and analytics for warehouse operations.
• Power BI: Microsoft's business analytics service that offers real-time data integration and visualization, helping warehouse managers make informed decisions based on drone-collected data.

5. AI and Machine Learning Platforms

• TensorFlow: An open-source platform for machine learning that can be used to develop AI algorithms for drone navigation, obstacle avoidance, and data analysis.
• IBM Watson: Provides AI capabilities for analyzing data collected by drones enhancing decision-making processes in warehouse management.

Software used in similar project

Maharashtra: E-commerce Warehouse

• Software Used: SAP EWM integrated with Gather AI drones.
• Outcome: Achieved a 30% increase in inventory accuracy and a 25% reduction in labor costs.

Karnataka: Food and Beverage Warehouse

• Software Used: Oracle WMS with FlytBase drone management.
• Outcome: Improved productivity by 20% and enhanced safety compliance.

Tamil Nadu: Manufacturing Warehouse

• Software Used: Esri ArcGIS for mapping and IBM Watson for data analysis.
• Outcome: Reduced maintenance costs by 15% and improved overall security.

Gujarat: Pharmaceutical Warehouse

• Software Used: QGIS for spatial analysis and Power BI for data visualization.
• Outcome: Enhanced order fulfillment speed by 20% and better space utilization.

10. Way Forward

To fully leverage the potential of drone and GIS technologies in warehouse management the following steps should be considered:

1. Adoption of Advanced Technologies: Warehouses should continue to invest in advanced technologies such as AI, machine learning and IoT to enhance the capabilities of drones and GIS systems. This includes integrating these technologies with existing Warehouse Management Systems (WMS) and Enterprise Resource Planning (ERP) systems.
2. Training and Skill Development: As the use of drones and GIS technologies becomes more widespread it is essential to train warehouse staff in operating and maintaining these systems. This includes understanding the software and hardware components as well as data analysis and interpretation.
3. Infrastructure Upgrades: Warehouses may need to upgrade their infrastructure to support the deployment of drones and GIS technologies. This includes ensuring adequate space for drone operations, installing necessary sensors and communication systems, and enhancing network connectivity.
4. Collaboration and Partnerships: Collaborating with technology providers, research institutions, and industry partners can help warehouses stay updated with the latest advancements and best practices. This can also facilitate the development of customized solutions tailored to specific operational needs.
5. Pilot Programs and Scaling: Implementing pilot programs to test the effectiveness of drone and GIS technologies in specific warehouse operations can provide valuable insights. Based on the results, these technologies can be scaled across multiple facilities to achieve broader benefits.

11. Conclusion

The integration of drone and GIS technologies in warehouse management represents a significant leap forward in the logistics industry. By enhancing efficiency, accuracy and safety these technologies are transforming how warehouses operate making them more responsive to the demands of modern commerce. As warehouses in India continue to adopt and scale these innovations they will be better positioned to meet the challenges of the future driving growth and customer satisfaction.