MHI Solutions - Volume 6, Issue 2 - 20

WRIGHT STUDIO/SHUTTERSTOCK.COM

If by midday, real-time sales data show
strong demand in the West and weak
demand in the East, the AI program
will increase the price of the cups in the
West and decrease the price in the East,
thereby boosting the company's margins
in the West and driving up demand in
the East.
A sales executive looking at the data
never would have the time to shape
demand for hundreds or thousands of
goods in this way, so an AI program
that constantly is using data to make
adjustments and self-correct is the only
way to maximize results, Tompkins said.
With a highly functional AI program, a
company no longer will have to choose
between minimizing its inventory and
minimizing its lost sales.
"You're using machine learning to do
what you could never do in your own
little head because the amount of data
that you're using is so great," he said.
Tompkins said that in forecasting
sales, the goal is nirvana-when just
before midnight, the last blue cup predicted to be sold that day is purchased,
and the shelves in the distribution center
are totally empty, with not a single customer having been turned away.
"When I talk about demand shaping, I'm often asked, 'Do you ever get
to nirvana?'" Tompkins said. "Well,
nirvana is not really when you come
up with a perfect sales forecast, it's when
you've done enough demand shaping
that it looks like you've come up with a
20

MHI SOLUTIONS

*

Q2

*

2018

perfect forecast. It's the self-correcting
that allows artificial intelligence to come
up with better predictive intelligence."
Combating the Amazon Effect
Fulfillment centers everywhere are
feeling the heat from e-commerce powerhouses such as Amazon and Walmart,
with customers increasingly expecting
same-day or next-day delivery of perfectly picked orders. For smaller retailers
to compete, they simply must get more
out of their facilities, and Eric Peters,
president and CEO of MODEX 2018
exhibitor SensorThink, is using AI to
help them do just that.
SensorThink's web-based platform is
designed to use data from every aspect
of a warehouse's operations, including
temperature, lighting and employee
movement, to make a warehouse run
more efficiently. For example, a warehouse manager could analyze picking
productivity when the HVAC system is

"Artificial intelligence
represents a huge
opportunity for us to
make supply chains
work better, so I'm
excited about it."
-Jim Tompkins,
Tompkins International

set to 72 degrees and then measure it
again at 75 degrees, and if productivity hasn't dropped, then the company
knows it can save money on electricity
without sacrificing production. The
same can be done with lighting.
Using RFID badges, SensorThink
aims to give warehouse managers a
more accurate gauge of worker performance than the currently used productivity standards, which measure the
average time it takes the average worker
to handle the average item. By recording
worker productivity over a period of
time and using sales forecasting, a warehouse manager can more accurately
predict how many workers he will need
on a given day. And by using real-time
productivity data, a warehouse manager
can see if a worker's productivity has
dipped because of illness or some other
problem and then reroute some of that
employee's work to another worker.
If an RFID badge hasn't moved in
a while, a manager will know to check
on the employee and see if he has been
injured, is goofing off or has dropped his
badge. Managers will be able to better
gauge the performance of new hires-a
key issue in high-turnover warehouses
or those that employee seasonal help-
and can combat employee theft by
monitoring whether an employee is
in an area of the warehouse where he
shouldn't be.
"You're able to analyze how a worker
is doing the work and then look for
opportunities to correct what they're
doing so they can become more productive," Peters said. "Once you start
gathering this new level of granular information through sensors and
devices like our platform is capable of
doing, all of a sudden you can do all
sorts of analysis that you could never
do in the past."
Increasing asset utilization
Data from sensors placed on material handling equipment and other
warehouse assets can be used to predict
maintenance issues and increase asset
utilization. The SensorThink platform
is continuously evolving, and Peters
said the goal is to provide one screen
where warehouse managers can check



Table of Contents for the Digital Edition of MHI Solutions - Volume 6, Issue 2

CEO Update
3-Step Checklist for Addressing the Supply Chain Skills Gap
Beyond Analytics
Women Rising
People Are at the Center of the Robotics Revolution
Acing ‘The Basics’ of Business
Bridging the Skills Gap
Millennials and GenZ: The Key to Future-Proofing Your Supply Chain Workforce
Identifying Talent
Attracting and Retaining Top Supply Chain Talent
Consider Sustainability When Choosing Your Next Forklift Power System
CTE Program: Students, Instructors Benefit from Student Days Participation
Industry Focus: Intermodal
Education and Industry: An Ecosystem Mindset
2018 MHI Innovation Award Finalists
MODEX 2018
Economic Market Analysis
Safer Handling
Fulfillment Update
Product/Solutions Spotlight
Scholarship Winners: Where Are They Now?
Inside MHI
Will Big Data Help Us Predict the Future?
MHI News
Calendar
Index of Advertisers
MHI Solutions - Volume 6, Issue 2 - Intro
MHI Solutions - Volume 6, Issue 2 - cover1
MHI Solutions - Volume 6, Issue 2 - cover2
MHI Solutions - Volume 6, Issue 2 - 3
MHI Solutions - Volume 6, Issue 2 - 4
MHI Solutions - Volume 6, Issue 2 - 5
MHI Solutions - Volume 6, Issue 2 - 6
MHI Solutions - Volume 6, Issue 2 - 7
MHI Solutions - Volume 6, Issue 2 - 8
MHI Solutions - Volume 6, Issue 2 - CEO Update
MHI Solutions - Volume 6, Issue 2 - 3-Step Checklist for Addressing the Supply Chain Skills Gap
MHI Solutions - Volume 6, Issue 2 - 11
MHI Solutions - Volume 6, Issue 2 - 12
MHI Solutions - Volume 6, Issue 2 - 13
MHI Solutions - Volume 6, Issue 2 - 14
MHI Solutions - Volume 6, Issue 2 - 15
MHI Solutions - Volume 6, Issue 2 - 16
MHI Solutions - Volume 6, Issue 2 - 17
MHI Solutions - Volume 6, Issue 2 - Beyond Analytics
MHI Solutions - Volume 6, Issue 2 - 19
MHI Solutions - Volume 6, Issue 2 - 20
MHI Solutions - Volume 6, Issue 2 - 21
MHI Solutions - Volume 6, Issue 2 - 22
MHI Solutions - Volume 6, Issue 2 - 23
MHI Solutions - Volume 6, Issue 2 - Women Rising
MHI Solutions - Volume 6, Issue 2 - 25
MHI Solutions - Volume 6, Issue 2 - 26
MHI Solutions - Volume 6, Issue 2 - 27
MHI Solutions - Volume 6, Issue 2 - 28
MHI Solutions - Volume 6, Issue 2 - 29
MHI Solutions - Volume 6, Issue 2 - 30
MHI Solutions - Volume 6, Issue 2 - 31
MHI Solutions - Volume 6, Issue 2 - 32
MHI Solutions - Volume 6, Issue 2 - 33
MHI Solutions - Volume 6, Issue 2 - 34
MHI Solutions - Volume 6, Issue 2 - 35
MHI Solutions - Volume 6, Issue 2 - People Are at the Center of the Robotics Revolution
MHI Solutions - Volume 6, Issue 2 - 37
MHI Solutions - Volume 6, Issue 2 - 38
MHI Solutions - Volume 6, Issue 2 - 39
MHI Solutions - Volume 6, Issue 2 - 40
MHI Solutions - Volume 6, Issue 2 - 41
MHI Solutions - Volume 6, Issue 2 - Acing ‘The Basics’ of Business
MHI Solutions - Volume 6, Issue 2 - 43
MHI Solutions - Volume 6, Issue 2 - 44
MHI Solutions - Volume 6, Issue 2 - 45
MHI Solutions - Volume 6, Issue 2 - 46
MHI Solutions - Volume 6, Issue 2 - 47
MHI Solutions - Volume 6, Issue 2 - 48
MHI Solutions - Volume 6, Issue 2 - 49
MHI Solutions - Volume 6, Issue 2 - Bridging the Skills Gap
MHI Solutions - Volume 6, Issue 2 - 51
MHI Solutions - Volume 6, Issue 2 - 52
MHI Solutions - Volume 6, Issue 2 - 53
MHI Solutions - Volume 6, Issue 2 - 54
MHI Solutions - Volume 6, Issue 2 - 55
MHI Solutions - Volume 6, Issue 2 - Millennials and GenZ: The Key to Future-Proofing Your Supply Chain Workforce
MHI Solutions - Volume 6, Issue 2 - 57
MHI Solutions - Volume 6, Issue 2 - 58
MHI Solutions - Volume 6, Issue 2 - 59
MHI Solutions - Volume 6, Issue 2 - 60
MHI Solutions - Volume 6, Issue 2 - 61
MHI Solutions - Volume 6, Issue 2 - 62
MHI Solutions - Volume 6, Issue 2 - 63
MHI Solutions - Volume 6, Issue 2 - 64
MHI Solutions - Volume 6, Issue 2 - 65
MHI Solutions - Volume 6, Issue 2 - Identifying Talent
MHI Solutions - Volume 6, Issue 2 - 67
MHI Solutions - Volume 6, Issue 2 - 68
MHI Solutions - Volume 6, Issue 2 - 69
MHI Solutions - Volume 6, Issue 2 - 70
MHI Solutions - Volume 6, Issue 2 - 71
MHI Solutions - Volume 6, Issue 2 - Attracting and Retaining Top Supply Chain Talent
MHI Solutions - Volume 6, Issue 2 - 73
MHI Solutions - Volume 6, Issue 2 - 74
MHI Solutions - Volume 6, Issue 2 - 75
MHI Solutions - Volume 6, Issue 2 - 76
MHI Solutions - Volume 6, Issue 2 - 77
MHI Solutions - Volume 6, Issue 2 - 78
MHI Solutions - Volume 6, Issue 2 - 79
MHI Solutions - Volume 6, Issue 2 - Consider Sustainability When Choosing Your Next Forklift Power System
MHI Solutions - Volume 6, Issue 2 - 81
MHI Solutions - Volume 6, Issue 2 - 82
MHI Solutions - Volume 6, Issue 2 - 83
MHI Solutions - Volume 6, Issue 2 - 84
MHI Solutions - Volume 6, Issue 2 - 85
MHI Solutions - Volume 6, Issue 2 - CTE Program: Students, Instructors Benefit from Student Days Participation
MHI Solutions - Volume 6, Issue 2 - 87
MHI Solutions - Volume 6, Issue 2 - 88
MHI Solutions - Volume 6, Issue 2 - 89
MHI Solutions - Volume 6, Issue 2 - 90
MHI Solutions - Volume 6, Issue 2 - 91
MHI Solutions - Volume 6, Issue 2 - 92
MHI Solutions - Volume 6, Issue 2 - 93
MHI Solutions - Volume 6, Issue 2 - Industry Focus: Intermodal
MHI Solutions - Volume 6, Issue 2 - 95
MHI Solutions - Volume 6, Issue 2 - 96
MHI Solutions - Volume 6, Issue 2 - 97
MHI Solutions - Volume 6, Issue 2 - 98
MHI Solutions - Volume 6, Issue 2 - 99
MHI Solutions - Volume 6, Issue 2 - Education and Industry: An Ecosystem Mindset
MHI Solutions - Volume 6, Issue 2 - 101
MHI Solutions - Volume 6, Issue 2 - 102
MHI Solutions - Volume 6, Issue 2 - 103
MHI Solutions - Volume 6, Issue 2 - 104
MHI Solutions - Volume 6, Issue 2 - 105
MHI Solutions - Volume 6, Issue 2 - 106
MHI Solutions - Volume 6, Issue 2 - 2018 MHI Innovation Award Finalists
MHI Solutions - Volume 6, Issue 2 - 108
MHI Solutions - Volume 6, Issue 2 - 109
MHI Solutions - Volume 6, Issue 2 - 110
MHI Solutions - Volume 6, Issue 2 - 111
MHI Solutions - Volume 6, Issue 2 - 112
MHI Solutions - Volume 6, Issue 2 - 113
MHI Solutions - Volume 6, Issue 2 - 114
MHI Solutions - Volume 6, Issue 2 - 115
MHI Solutions - Volume 6, Issue 2 - 116
MHI Solutions - Volume 6, Issue 2 - 117
MHI Solutions - Volume 6, Issue 2 - 118
MHI Solutions - Volume 6, Issue 2 - 119
MHI Solutions - Volume 6, Issue 2 - 120
MHI Solutions - Volume 6, Issue 2 - 121
MHI Solutions - Volume 6, Issue 2 - 122
MHI Solutions - Volume 6, Issue 2 - 123
MHI Solutions - Volume 6, Issue 2 - 124
MHI Solutions - Volume 6, Issue 2 - MODEX 2018
MHI Solutions - Volume 6, Issue 2 - 126
MHI Solutions - Volume 6, Issue 2 - 127
MHI Solutions - Volume 6, Issue 2 - 128
MHI Solutions - Volume 6, Issue 2 - 129
MHI Solutions - Volume 6, Issue 2 - 130
MHI Solutions - Volume 6, Issue 2 - 131
MHI Solutions - Volume 6, Issue 2 - 132
MHI Solutions - Volume 6, Issue 2 - 133
MHI Solutions - Volume 6, Issue 2 - 134
MHI Solutions - Volume 6, Issue 2 - 135
MHI Solutions - Volume 6, Issue 2 - 136
MHI Solutions - Volume 6, Issue 2 - 137
MHI Solutions - Volume 6, Issue 2 - 138
MHI Solutions - Volume 6, Issue 2 - 139
MHI Solutions - Volume 6, Issue 2 - 140
MHI Solutions - Volume 6, Issue 2 - Economic Market Analysis
MHI Solutions - Volume 6, Issue 2 - 142
MHI Solutions - Volume 6, Issue 2 - Safer Handling
MHI Solutions - Volume 6, Issue 2 - 144
MHI Solutions - Volume 6, Issue 2 - 145
MHI Solutions - Volume 6, Issue 2 - Fulfillment Update
MHI Solutions - Volume 6, Issue 2 - 147
MHI Solutions - Volume 6, Issue 2 - 148
MHI Solutions - Volume 6, Issue 2 - Product/Solutions Spotlight
MHI Solutions - Volume 6, Issue 2 - 150
MHI Solutions - Volume 6, Issue 2 - Scholarship Winners: Where Are They Now?
MHI Solutions - Volume 6, Issue 2 - 152
MHI Solutions - Volume 6, Issue 2 - Inside MHI
MHI Solutions - Volume 6, Issue 2 - 154
MHI Solutions - Volume 6, Issue 2 - Will Big Data Help Us Predict the Future?
MHI Solutions - Volume 6, Issue 2 - 156
MHI Solutions - Volume 6, Issue 2 - MHI News
MHI Solutions - Volume 6, Issue 2 - 158
MHI Solutions - Volume 6, Issue 2 - 159
MHI Solutions - Volume 6, Issue 2 - Calendar
MHI Solutions - Volume 6, Issue 2 - Index of Advertisers
MHI Solutions - Volume 6, Issue 2 - 162
MHI Solutions - Volume 6, Issue 2 - cover3
MHI Solutions - Volume 6, Issue 2 - cover4
http://www.nxtbook.com/naylor/MHIQ/MHIQ0218
http://www.nxtbook.com/naylor/MHIQ/MHIQ0118
http://www.nxtbook.com/naylor/MHIQ/MHIQ0417
http://www.nxtbook.com/naylor/MHIQ/MHIQ0317
http://www.nxtbook.com/naylor/MHIQ/MHIQ0217
http://www.nxtbook.com/naylor/MHIQ/MHIQ0117
http://www.nxtbook.com/naylor/MHIQ/MHIQ0416
http://www.nxtbook.com/naylor/MHIQ/MHIQ0316
http://www.nxtbook.com/naylor/MHIQ/MHIQ0216
http://www.nxtbook.com/naylor/MHIQ/MHIQ0116
http://www.nxtbook.com/naylor/MHIQ/MHIQ0415
http://www.nxtbook.com/naylor/MHIQ/MHIQ0315
http://www.nxtbook.com/naylor/MHIQ/MHIQ0215
http://www.nxtbook.com/naylor/MHIQ/MHIQ0115
http://www.nxtbook.com/naylor/MHIQ/MHIQ0414
http://www.nxtbook.com/naylor/MHIQ/MHIQ0314
http://www.nxtbook.com/naylor/MHIQ/MHIQ0214
http://www.nxtbook.com/naylor/MHIQ/MHIQ0114
http://www.nxtbook.com/naylor/MHIQ/MHIQ0413
http://www.nxtbook.com/naylor/MHIQ/MHIQ0313
http://www.nxtbook.com/naylor/MHIQ/MHIQ0213
http://www.nxtbook.com/nxtbooks/naylor/MHIQ0113
http://www.nxtbookMEDIA.com