Stock audit costs improve by 80% with Sentispec Inventory
Stock audit costs improve by 80% with Sentispec Inventory
Background to the Frode Laursen stock audit 80% cost saving case study
Frode Laursen is a Northern European logistics company providing warehousing and distribution, offering services from the factory and all the way into the stores. Operating for more than 70 years, they have grown from being a local haulier to become an international transport and logistics company focussed on FMCG, building materials, recycling, and dangerous goods.
Challenge in warehouse stocktaking
Stocktaking is a manual and labour-intensive operation. Frode Laursen , as a 3rd Party Logistics Provider (3PL), holds stock on behalf of their customers, meaning that there is an additional need for transparency and accountability at all times. Hence the need to run a regular stock audit for all customer product. To maintain these standards in accountability a significant number of resources must be dedicated to manual stock taking across all regional warehouses. This is time consuming and can be very costly. Hence the need to review the opportunity for an automated stock audit.
By placing cameras in the right places, streaming the high-quality computer vision data and analysing the results alongside business planning data we can now deliver real time and business insights. One of the major benefits is that it can reduce the cost of the stock audit.
Automated inventory tracking and stock take
Since working with Sentispec, to develop and install Sentispec Inventory an AI automated stock taking and inventory tracking in their Åstorp logistics centre, Frode Laursen have found that speed and accuracy of their stock audit has improved dramatically. This enables a higher level of stock transparency, which they can now offer to their customers. In turn, their customers can be more confident than ever in their distribution and inventory calculations.
Sentispec Inventory cuts stock taking cost by 80%
In addition to providing direct benefits for their customers, Frode Laursen can reduce operating costs through careful management of the stock audit. They are doing this by cutting back on overtime for staff during cyclic inventory counts. Furthermore, the solution is expected to reduce pressure on finishing in time for the new week, as inventory counts are typically done during weekends.
The AI automated stock audit has therefore streamlined the process and stock controls. It has also improved turnaround times for inventory counts dramatically, and improved accuracy and time spent in resolving anomalies like missing pallets. The stock audit savings are estimated as a cut of 80% in manual labour costs in this warehouse alone.
“This improves the service we can offer to our customers.”
Peder Kjærsgaard, COO Frode Laursen A/S
Frode Laursen has more than 640,000 square metres of storage space across Northern Europe, with 170,000 sqm in Åstorp alone, and as such they audit a large amount of stock every month. On a corporate scale, the Sentispec Inventory solution offers a significant ongoing capability for Frode Laursen, which will improve overall operations with a positive impact on cost and productivity.
“The Sentispec Inventory solution makes it easy to do pinpoint analysis of the current inventory, should we have that need .”
Stefan Maagaard, CTO Warehousing Division, Frode Laursen.
Sentispec Access, an AI logistics platform providing Automation and Transparency through Computer Vision, works by leveraging data gathered through various cameras – security cameras, mobile phones, etc. By mounting video cameras on forklifts, customers can replace manual barcode scanning with an AI based solution which outputs data on shelf and slot contents, by scanning barcodes on shelves and pallets. Sentispec Access allows for up to 95% cost reduction in stocktaking operations, whilst reducing labour spent searching for misplaced pallets.
“Our solution is innovative and practical in that it is easy to deploy with minimal change to existing facilities and processes. It just works.”
Andreas Claudi CEO, Sentispec Aps
Download this Sentispec Inventory Automated Stocktaking Case Study 📑