Computer Vision & AI Reduce Distribution Center Inventory Losses

    April 11, 2022

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    Written By
    Bella Reed

    According to The U.S Department of Commerce, businesses lose over $50 billion in revenue due to employee theft and that employee theft; a cost which is rising at a rate of 15 percent per year. Furthermore, the Association of Certified Fraud Examiners announced this year that transportation and warehousing organizations are disproportionately affected, both by internal and external perpetrators.

    Distribution Centers are Theft Targets

    With the rise of e-commerce sales throughout the last decade, it is safe to say that most, if not all, businesses stock all of their merchandise within a warehouse to allow for retail distribution, with 20% of all worldwide warehouses being located in North America. Not to mention the number of logistics companies that rely heavily on warehouses to store customer commodities, shipments and goods. For example, Fedex, DHL and UPS have a total combined number of 4,400 warehouses across the globe storing close to a trillion dollars worth of goods on any given day.  One of the largest online retailer in the world, has a total of 175 fulfillment warehouses representing 150 million square feet of space!

    So how do some of the biggest companies make sure that the goods in their care are safe from being pilfered or pillaged? Unfortunately, most solutions require implementing policies based on trusting employees to do the right thing–to be honest. While the vast majority of warehouse workers are trustworthy, it’s those small yet pernicious few who must be addressed. Stealing on the job is a reality and has been for millennia. But what separates today from Roman times is technology. Auditing and inventory counting measures can help in some ways, but don’t completely prevent loss.

    Computer Vision and AI Can Reduce Theft and Losses

    Ah, the good ol’ security camera. Don’t get me wrong–security cameras are an efficient way of identifying people stealing and/or breaking and entering. But are they efficient if they can only be used to identify the perpetrator after the crime is done and only after you realize the goods are missing? Is it efficient and cost effective if you need human eyes watching that camera feed 24/7, waiting for a larcenous act to happen?

    Combining Computer Vision and artificial intelligence can help a company to detect unusual behaviors like perimeter crossings, gun detection, and unattended bags. Unfortunately, this magic combination only works when the:

    • Models have been trained for the circumstances
    • Rules engine is robust and flexible
    • Platform offers extensive capabilities to make that those detections actionable

    Kogniz Offers the Complete Solution

    With Kogniz, you'll be able to notify anyone in your company within seconds of a suspicious activity occurring. Whether someone is jumping over a fence, actively breaking in, or stealing cargo/goods, Kogniz’ computer vision AI detects anomalies quickly and efficiently.

    Anomalies aren’t only limited to theft carried out by inside or outside perpetrators. Kogniz can also detect whenever cargo, people, tractors and trailers aren’t where they’re supposed to be or about to be, through optical character recognition and identification.

    When integrated with your available data on the vehicles, employees, and drivers (trailer numbers, license plates, cargo serial numbers, employee names, employee numbers etc.), Kogniz becomes even more powerful in helping you to manage all the moving parts through our platform and keep you informed to the second when something goes awry.

    Through optical character recognition and identification, our software can identify if the wrong tractor leaves with the wrong trailer and vice versa, before it even leaves your lot. Optical Character Recognition (OCR) is used to read Department of Transportation (DOT) numbers on vessels, and vehicle identification numbers (VINs) on trailers and cargo.

    Not only will we reduce theft, we will help you create a safer workplace for you and your company by adding our software to your existing IP cameras. Making the most of what you have now, not only more efficient but smarter through the Kogniz platform.

    Learn about other use cases for our product suite like how we help detect defects in conveyor belts.

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