This episode of The New Warehouse Podcast features Jerry Abiog, CEO of Standard Insights, discussing the pivotal role of AI in warehousing. Standard Insights was a pioneer in leveraging AI before its mainstream adoption and offers innovative solutions to common industry challenges. This discussion, grounded in Jerry’s rich background and the evolution of AI in business, illuminates the path forward for warehouses seeking efficiency and growth in an increasingly digital landscape.
The Genesis of Standard Insights
Jerry traces the foundation of Standard Insights to his experiences in the AI and machine learning sectors. This experience eventually led to the conception of an AI-driven marketing platform to enhance customer retention. “This was in 2018-2019…I flew from Atlanta to the retail show out in Denver, Colorado, and came back with two beta clients,” Jerry recalls, emphasizing the novelty of AI at the time. The firm has since evolved, leveraging AI to give businesses a competitive edge by predicting customer behavior and optimizing inventory management. He shares, “Our first partners came from the fulfillment space because they knew they were dealing with lots of customers and data.”
AI’s Role in Addressing Industry Challenges
AI’s integration into warehousing operations marks a pivotal shift in tackling perennial issues such as labor shortages and inventory management. “We help businesses leverage that first-party data…leverage sales data and product data to make predictions,” Jerry explains, highlighting the potential of AI to transform vast data sets into actionable insights. By predicting customer profitability and purchase likelihood, AI enables more precise inventory forecasting and customer targeting, which is crucial for enhancing top-line and bottom-line growth.
The Future of AI in Warehousing
Looking ahead, Jerry envisions increased adoption of AI in warehousing, driven by the imperative to overcome operational inefficiencies and stay competitive. “I think with more education…they’re gonna get buy-in,” he speculates, pointing to the gradual but inevitable shift toward digital solutions. This transition, however, requires warehouses and 3PLs to navigate the learning curve associated with new technologies, underscoring the importance of choosing the right AI partner to mitigate business pains and harness the full potential of their data.
Key Takeaways on AI in Warehousing
- AI can revolutionize warehousing by turning data into predictive insights for customer behavior and inventory needs.
- Standard Insights’ approach demonstrates the tangible benefits of AI in improving decision-making and operational efficiency.
- The future of warehousing hinges on adopting AI and other digital technologies to address critical challenges and enhance competitiveness.
