Overview
Flip.ro, operates a highly complex inventory system that must support the fast-paced movement of a large volume of devices. Due to the rapidly changing nature of its inventory flow, Flip faced operational challenges, including time-consuming manual processes, the risk of product loss, fragmented workflows, and delayed communication and decision-making. They were in search of a solution that would streamline their inventory processes, enhance tracking accuracy, and increase overall operational efficiency.
After a trial-and-error period with multiple suppliers and solutions that did not completely cover their needs, they started discussions with Adapta for a personalized inventory automation plan with SIDD. The Stock Identification and Detection Device, a smart shelf system designed to bring real-time monitoring and transparency to inventory management, addressed Flip’s requirements through its strong performance, adaptability, and comprehensive pre- and post-implementation support.
Challenges
The inventory system of Flip.ro involves multiple stages, with a high volume of devices, requiring constant manual tracking to address inventory movement, product status, and workflow progress. With the previously used system heavily reliant on manual processes, several issues were present:
- Time-Consuming Operations: With a large volume of devices and constant changes in product status, Flip was performing hourly rescans of product IDs to track inventory. The manual approach consumed significant time and resources, slowing down the overall workflow.
- Error-Prone: The manual processes were prone to errors and discrepancies, leading to delays in decision-making, miscommunication, and inefficiencies within the team, overall leading to an inability to respond quickly to customer demands.
- Lack of Real-Time Visibility: The inability to track product movements in real time led to a lack of visibility in the inventory system. This made it difficult to address issues promptly and contributed to unnecessary delays in processing customer orders.
Objectives
By implementing SIDD AI-powered camera system, Flip.ro was looking to automate its inventory management processes. The primary objectives included achieving better tracking and faster localization of products throughout all inventory stages. To ensure efficient inventory flow, the system aimed to minimize and monitor the shelf-time of each stored product at various stages. SIDD was designed to automate workflows, improving overall productivity and facilitating better decision-making. Addressing issues promptly across inventory stages was also a primary focus, allowing for the expansion of the solution, adaptation to changes, and further optimization. Ultimately, the goal was to maintain high internal responsiveness and meet customer requirements effectively, boosting operational efficiency.
SIDD Smart Shelf Implementation
SIDD, the identification and detection camera system, was adapted to integrate seamlessly with Flip's existing processes. The system features four modules (smart shelves) strategically placed within Flip's storage and inventory areas. These shelves are equipped with advanced cameras using barcode detection and scanning to enable real-time monitoring of product statuses, precise product traceability, and shelf-time measurements.
The implementation process took 3-4 months, during which Flip worked closely with the Adapta Robotics team to ensure that the system was tailored to their specific needs. It involved several consultation meetings and adjustments to integrate the SIDD technology smoothly into Flip’s workflow. The solution’s practicality, ease of use, and ready-to-deploy design allowed Flip to quickly transition to a more efficient inventory management system.
How SIDD Improved Flip Technologies’ Operations
- Real-Time Status Updates:
SIDD’s smart shelves provide Flip with real-time tracking capabilities on the statuses of each product. With automatic tracking of inventory movements, Flip no longer needs to rely on manual scanning and tracking. The system logs product placements and removals, making it easy to trace items and identify discrepancies. - Product/ SKU/Item Traceability and Shelf-Time Optimization:
With precise tracking capabilities, Flip can monitor how long products remain in each stage of the process. This helps reduce delays, optimize shelf time, and ensure that products move through the system faster, enhancing overall workflow efficiency. - Streamlined Processes with Reduced Manual Interventions:
SIDD’s integration with Flip’s inventory management system has minimized the need for manual input. Team leaders can now manage inventory directly from their laptops, allowing them to shift focus toward more important tasks. SIDD’s application offers easy access to data management, reporting, and communication. With the integration of a stack light that provides customizable alerts, employees are aware and responsive to changes instantly. - Adaptability and User-Friendliness:
The system's intuitive interface and flexibility make it easy for Flip’s teams to respond and adapt quickly, whether it’s tracking high-priority items or managing day-to-day inventory.
Achievements and Results
The implementation of SIDD has brought improvements across various areas of Flip.ro operations. An automated inventory management system has increased team productivity and significantly reduced errors in tracking and processing products, with real-time updates and product traceability as key factors. Key Performance Indicators (KPIs) that outline the improvements mentioned are defined by cost and time savings, gained operational efficiency and increased customer satisfaction.
Optimizing product movement through the inventory system, SIDD has reduced product loss and accelerated workflows. With real-time tracking, Flip can ensure that products are where they need to be at every stage of the process. Faster processing times have led to quicker interventions and faster responses to customer needs, improving customer satisfaction and overall experience.
Flip’s operational improvements are demonstrated by the decrease in time spent on inventory tracking using SIDD versus the previously used solution, reliant on manual scanning. Previously, the process of scanning and tracking stored items, conducted by one person and repeated hourly, added up to 240 minutes/day. After automating inventory management with SIDD, the Flip team saw a 62.5 % improvement in time spent on tracking items manually, saving 150 minutes/ day/ employee, contributing to a reduced operational cost and greater labor efficiency. As a result, workflow was accelerated, enabling Flip to handle a larger volume of products in less time.
The initial setup of SIDD smart shelf consisted of 2 cameras that allowed 400 items to be scanned at the same time. Considering that not all IDs had a shelf time of 24 hours and through item rotation, the setup was able to sustain a daily shelf-load of 600 unique IDs/day
With the increasing volume of products going through the inventory system, Flip tripled the number of cameras used for their smart shelves from two in February to six in October. In April, each employee handled 150 devices, four SIDD cameras scanning 800 unique IDs at the same time. As volume grew, the team expanded from 5 to 9 employees, each handling 130 units with 6 SIDD smart shelf modules covering 1200 IDs.
SIDD has significantly improved productivity and the ability to monitor and manage inventory across the product chain while sustaining Flip’s rapidly growing unit volume. By eliminating manual interventions and automating inventory tracking, Flip has been able to scale operations while maintaining high levels of responsiveness.
Conclusion
The implementation of SIDD's AI-powered camera system improved Flip Technologies' inventory management by providing real-time updates on the status and location of products from the moment they are placed on a smart shelf until their final removal or processing. Gaining transparency and visibility over inventory movement has enhanced decision-making, allowing for quicker, more informed choices, and ensuring high-priority items are processed quickly. With the elimination of inefficiencies such as product misplacement, SIDD has ensured smoother transitions between departments and faster handling of urgent products. As an immediate result, waiting time for customers has been reduced, ensuring faster responses and interventions, which has led to a significant boost in customer satisfaction.
Ultimately, the system has transformed operations, driving greater efficiency, accuracy, and responsiveness across Flip.ro inventory management process.