Maersk explores digital slotting design solutions for warehousing

Developing digital plans as part of technology innovations

Warehousing and Distribution operations are critical in integrated supply chains. As part of the company’s portfolio of technology innovations, Maersk is exploring AI-empowered, warehouse design slotting digital solutions.

In large scale fulfillment operations, slotting is essential to maximize the overall efficiency of warehouse operations by maximizing space utilization, increasing productivity, and reducing inventory handling. The constant optimization of inventory layout within warehouses improves workflows, order preparation processing times and the company’s operational strategy.

“Utilizing AI, developing algorithms, predictive analytics, simulations and data-driven analytics added to business model innovations enables us to continuously improve supply chain processes.  This visibility enables our customers to compete with a faster time-to-market proposition,” said Erez Agmoni, Maersk’s Head of Innovation and Strategic Growth for the Warehousing and Development product. AI solutions embedded with deep expertise in machine learning, optimization, simulation, and data-driven analytics also upskills decision-making. 

Since November 2021 in Redlands, California, Maersk’s cross-functional innovation team collaborated with IAI Labs Technology (http://www.iailabs.com/) to create a customized digital application for the slotting solution process in omni-channel fulfillment centers.  The new technology being prototyped enables software analysis to improve the accuracy and efficiency of results and enhance the storage location distribution of items for warehouse utilization.  “The solution is well-ahead in the proof-of-concept process and is already tracking with a 97% accuracy rate which will significantly improve decision-making through digitalization, said Manuel Pappaterra, Maersk’s Warehousing and Distribution, Head of Customer Implementations.

"This project is a fantastic opportunity for us to validate the value of our solution to Maersk. The feedback from industry experts is valuable to our growth. This also helps fast-track our engagement with Maersk and explore new opportunities to scale," said Siming Li, CEO of IAI Labs.

More testing and research is planned for phase two of the project in Q1 2022.