Walmart drops inventory robots from its stores
bbc.co.uk
bbc.co.uk
• Theft
• Spoiled/broken products
• Customers taking a product then browsing for another hour before checking out
• Customers buying multiple flavours of a product with the same price but different UPCs, which the cashier rings up by scanning the first product then hitting "times 10"
• There is stock on the shelf, but it's hidden behind something else or out of reach
• There is stock in the store, but not on the shelf (many retailers don't track backroom → shelf stocking)
• Product is stocked in multiple locations in the store, one of which is empty
• Plus all the usual data issues caused by wrong barcode scanned, data entry error, out-of-date information about units per box, etc
Those issues are all small, but still significant:
• For slow-moving products, being a few units off can mean the difference between out of stock and 1 month stock remaining.
• Even for fast-moving products these errors add up over time, you never really get a ground-truth event to reset the error drift. Stocktake and out-of-stock help but are infrequent and not a perfect reflection of reality.
There's a big unsexy industry working on this problem with data and human checks. The economics of robots, drones, smart shelves, and smart carts don't seem competitive right now. When you have 10k stores in the US, the expense is massive.
I worked at retail (Uniqlo to be specific) and it was definetely a rule to not do this. They wanted us to scan everything one by one even if they were the same color and size. This allowed for a pretty accurate information on stock, e.g. we could see how many of a given sweater in given size and color is still in storage etc.
Probably this is too tedius for some retail (groceries with very small unit price) but very smart rule in general.
https://www.globenewswire.com/news-release/2017/05/16/125712...
https://www.atlasrfidstore.com/rfid-insider/walmart-and-rfid...
I'd be interested to know the precise reasons for not using RFID on items though, I suspect it might be something like "tagging $1 items is cost-prohibitive, and the system isn't useful if you don't tag every item".
That wouldn't stop them from paying for the tagging. If it happens at all, everyone later in the supply chain has to pay for it.
If you want it integrated then your store must convince every manufacturerto modify their production line to put a tag inside the product packaging. Reading is still a problem also, RFID works great alone but what about reading a shelf full of products at once?
IMO computer vision (like Amazon Go) is a more likely solution to the problem.
Reading a shelf full of products isn't an issue, how do you think they can wave a wand over clothes and know the exact sizes they have and quantity?
They should double down on RFID but many of the manufacturers don't want to incorporate it in their process.
Also in a number of places walmart and other stores literally just open a box provided by their sources and place it on shelves.
This is a genuine question by the way, I honestly have no idea of the scale of this when applied to a store chain as huge as Walmart.
I think the second is a big part of why RFID tags haven't taken hold, stores need enough of their stock to use them to be useful while manufacturers need enough clients to want the tags embedded to go through the trouble of including it in the packaging.
https://www.mouser.com/ProductDetail/NXP-Semiconductors/SL3S...
Walmart sells bulk poverty goods with a margin of 1%. It's often the only store in town it's customers can afford to shop in.
Barcodes are not ideal on something that is flexible and gets cleaned a lot, but RFID was discarded as a solution then.
My point is that RFID tags have had over 30 years in the market. If they were a better general solution than barcodes, they would be everywhere.
Source: I worked at a company selling RFID-based inventory tracking hardware.
The reason is that your original premise is not true - they are not relatively cheap to roll out or maintain (relative to the cost of goods).
They are not cheap to roll out:
- Readers in all stores, including handheld devices, tills, doors e.t.c.
- If you are tagging 100% of products, it affects every single supplier production line, of which there are tens of thousands. A cost to your supplier is a cost to you, because it will inevitably affect the cost of goods sold.
- IT cost implications both internally and at your suppliers.
- If you don't get 100% of suppliers adhering, you don't get as much benefit. Good luck getting Coca-Cola to change their production lines for no benefit to themselves!
They are not cheap to maintain:
- At an estimated 2p per item, if you are shipping 10 billion items that is £200,000,000 a year just in tag costs. Alternatively put, if you sell items for £1 on average and make 4% net profit, that cost of tag cuts deep.
- There is an incremental cost for suppliers to maintain all that equipment to apply tags or build them into the packaging (which comes back in COGS).
- Maintenance of all RF readers
And inventory routines are cheap relative to this cost: - Assuming you have 1000 stores, and spend 5 hours per day on inventory routines @ £12 total cost to employ, you are talking a £20m cost (5 hours assumes gap scanning & code checking). I assume a manual financial account is still required once a year to account for failed tags.
So we have to come up with other benefits, like top-line growth driven by a better customer experience, but customers will have to be willing to pay for this with higher prices.
""" The original idea was to have a few extra security cameras and some mirrors. I think it took 2 mirrors per aisle and only a few 4k color security cameras with infrared to cover the fast moving items.
After prototyping we find exactly what you said. Turns out it doesn't matter how well you know you need to stock items, if you don't give enough people-hours to do it, the number of items on the shelf doesn't change.
The robots were probably pitched by the Walmart dot com or Jet dot com guys. Thier projects always were greenlit without any analysis and rarely worked. """
https://old.reddit.com/r/technology/comments/jmx78e/walmart_...
What's interesting is the Amazon store concept which just like this post is heavily based on cameras watching the shelves.
This would be in contrast to having people regularly walk every aisle and examine everything personally, going back and forth to get stock repeatedly. Much time was wasted.
As a former Walmart employee I was actually excited to see these proposed.
But now with so many people walking the aisles collecting items for pickup, I guess they’re just going to have them send “problem detected” messages instead of the robots. Which is fine I guess. Shopping there has become an even greater hassle with all the employees and their pickup carts, but that’s a whole other issue.
What am I missing?
How much do these margins really matter? Probably not enough to have a robot that's very pricy going up and down isles.
Let's take the journey of some cans of Goya black beans. 12 come in on a truck. The shelf capacity for them is 4. The person unloading the truck takes beans to the sales-floor, puts 4 on the shelf, puts 4 into overstock puts 4 into the backroom. Joe walks in takes a can, drops it and it bends. Jane comes along takes a can, continues shopping, the changes her mind and leaves it somewhere in the cereal aisle. Janet comes along and takes a can, takes it to self checkout but forgets to scan it. Jacob comes along takes a can, takes it to the checkout, and 1 can is subtracted from inventory. Inventory shows 11 cans, but there are actually 0 cans out on the sales floor. And I haven't even gotten into stuff being misplaced in the backroom ect.
In every company I've worked or consulted for, inventory reconciliation is always an ongoing headache for every business with a retail component. It is unbelievable how much waste and loss comes about from this.
Are their any companies achieving some level of automation? I would be very interested in learning more.
One day a customer complained we had no more washing powder of the most popular brand. Boss came, said they just got some the previous day, checked the inventory system and saw there should be three "trays" left, each with 12x packs of 1.2kg. He went to check the back, nothing there.
After a bit more searching he had a hunch, and checked the cameras. Sure enough, someone had loaded the three trays into a duffel bag earlier that morning and walked right out.
So yeah, even with all the normal human elements in the logistical chain, kinda hard to keep track of blatant theft.
With only using in-out the inventory system thinks there are plenty to sell and won't reorder, but if it's wrong the shelf is empty and can't be reordered. There are posts from Walmart people online complaining about this exact problem.
Affects me as a customer, hit their website says they have 10 in stock for pickup today, drive over and the shelf is bare. Ask, they say the inventory is probably wrong, check another store because they can't reorder.
Now they are missing x items + y lost sales. That's why place do inventory.
Obviously, we know why places do inventory.
We are talking about paying an expensive robot to go up and down isles to track inventory and if that is worth it.
WalMart already knows how much of something they have because they get everything scanned at the register. Sure there is a hour delay between it leaving the shelf and it being subtracted from inventory, but they need more than an hours worth on inventory on the shelf anyway because it takes time to load a truck with whatever they need more of. Shoplifting is a problem that mucks with this (I could actually see this being a useful help to that problem, but I'm not sure if it is useful enough)
An item in the backroom does not count towards the on shelf count. An item that is on a high shelf to be moved down as needed (overstock) does not count. And there isn't just a bit of overstock, most aisle the top shelf will be overstock. Also Items can get damaged, meat can expire ect. A customer can pick up an item decide he doesn't want to buy it, and throw it back on a random shelf.
The job involves going to an aisle, scanning the items on the shelf, and if the shelf count is not full either moving items down from overstock or from the back room.
In terms of Warehouse Automation, does anyone knows how well does Walmart compare to Amazon?
Brick and mortar warehousing seems like it would be much different than online retail warehousing.
I'm grossly simplifying the above, but the idea should be clear. WalMart doesn't store things in their warehouses so much as take them off of trucks and put a different mix of thing on other trucks. There is lots of room for automation, but it will look very different from Amazon.
> ...precise inventory is also essential for Walmart’s increasingly popular pickup and delivery services.
...and I can see highly accurate inventory helping that (and as a shopper I’d like it there was warehouse style ‘pick to light’ systems in supermarkets (perhaps using Augmented Reality))
Seriously, watching one person pick one order from retail shelves is kind of aggravstingly inefficient, when (and this is probably already starting to happen) they could have everything picked in bulk with an optimized path through the shelves for a batch of orders, then put-to-light each order.
Same goes for Target. I sometimes get incorrect products from them.
Amazon has been much better in product accuracy. But I get leery at buying certain items from Amazon, especially if it has a high probability for defects or counterfeits.
research is fine and all, but this is quite far from something that could have resulted in a production run.
But going this way, why not put a camera on each shelf, looking at the shelf opposite of it? I.e. if you have shelf A and shelf B opposite each other, the camera on A looks at B, and camera on B looks at A. The goal would be to have each shelf seen by at least one camera.
It now becomes a problem of integrating data, but I can't imagine it being more complex than crowd-navigating robots, or even moving cameras on rails.
angle would be about same from top or ceiling
> on each shelf, looking at the shelf opposite of it
it would cost a lot more than a camera on rail, especially the wiring but also bandwidth
Management teams often love the idea of things that prompt humans to do a thing, under the guise of saving human work hours due to magical 'efficiencies'. But somehow it is often lost on them that they're actually simply prompting ... more (or even just the same amount) human work hours.
Later the idea is often eventually scrapped when they finally associate it with human work hours.
It's this strange constant cycle.
The problem isn't the technology, it's the physical amount of product coming in compared to man hours. A typical 8hr shift would look like:
- 3hrs to unload the general merch delivery truck. An hour to unload the two freezer/cooler that would arrive at some point throughout the shift
- 1hr30m of breaks
- 1hr setup for night shift
- 1hr of 'picks', which was stock we had in the backroom that the system said could go out. This doesn't include the actual stocking of said items
That leaves 1hr30m to unload all the stock from the trucks, which doesn't happen.
Even if these robots were in my store and could tell me for certain that products needed to be reshelved, the man power isn't there to do it. It ends up being that all the teams achieve their department goals except for the fulfillment team that gets killed.
edit: formatting
This seems to be an approach of "let's replicate what humans do with robots", which often fails due to complexity (humans are very versatile). For example, the separate problems of finding empty shelves and restocking those are much more complex if you try to solve them together. Do it with a ground-moving robot, competing for floor space with humans and it may be hopeless.
But if you aim for just finding empty shelves you can probably do so with a few high-res ceiling mounted cameras and algorithms. This also allows for incremental enhancements. If the system initially detects missed inventory at 80% of the shelves it is a good start (there are now fewer shelves for humans to check).
Incremental improvement usually beats trying to solve complex problems in one go. My 2c.
Shoplifting is not a different problem; it's the same problem. Shoplifting means the record derived from register transactions is incorrect, because registered sales are not the only type of transaction you participate in.
I agree! Building a machine to do what humans are good at is dumb. Building a machine to do what humans are not good at is smart. Humans are great at noticing things as they walk around. Machines are OK, but miss the context way too frequently. If a person can do it alone, it'll be really hard to make a robot better at it, at least in the real world.
We should build more machines that are good at what machines are good at, and let humans fill in the blanks around those machines. For example, a robot that unloads heavy stuff from trucks would save hours of time so that human can move stuff to the shelves (and answer questions from shoppers while they're out there). Lo and behold, the profitable robotics companies here and elsewhere do that: move heavy stuff around (and only that, and only in warehouses where things are controlled).
Now, arguably their case is that they want something "acceptably worse than a human for much less cost", but they erred by missing all the different things a human has to do while on shift, and building up a whole machine for this, the one thing that humans do without thinking.
Vs going away from the idea entirely. WalMart labs is heavily interested on automation to reduce human labor needed.
Well... There really is no question of interest. They'd obviously like to automate more and reduce labour. The interesting questions relate to the trials, tribulations, successes and failures.
It would be a more informative article with some indication of how much they're investing in such initiatives. Why did this initiative fail, etc.
Both are shockingly large.
The federal government is a sector, comparable to "mining" or whatnot. Big is still big in the one-prick-many-ouchies sense, but sector size is not the same thing.
The "resolution" of private markets is a major characteristic.
Also, as far as the "government sector" of the economy goes -- 87% of government employees work for state or local governments.
Suppose you have a village of 400 people. What are the odds that somebody there employs 4 other guys in some capacity? That's more than 1% of the workforce.
I notice you've never bothered to make any arguments other than "stop being stupid". Could you?
Thus 50% is not a shockingly high number. Right?
Their ideas of "Robots!" and sending hourly employees to your home with merchandise instead of paying actual delivery drivers were two ideas that came from them recently. Everything they touch is broken.
The obviously best solution to keep track of inventory would be "smart racks" with RFID tags on each product (side note: that could also be used to deal with tracking stolen products, return policy abusers, people who want to legit return something but lost the receipt, counterfeit issues), but building such a rack is likely enormously expensive...
As someone who's deployed several industrial RFID systems: I doubt we'll ever see an RFID tag on every item in Walmart.
The first reason is the cost of tags: Even the cheapest EPC Gen2 RFID tags cost more than 1 cent - and nobody selling a 20 cent can of beans is going to pay that. Barcodes, on the other hand, come free with the product's printed packaging.
And the tag's performance varies - the super-low-price tags might work fine for cardboard packages, but not work on metal cans, for example, as sticking a radio antenna to a bit of metal and having it work is a complex business.
The second reason is reliability: Even in a highly controlled environment, where every tag is on an identical item and you're willing to spend 20 cents per tag, RFID is hard to get right.
One thing that causes reliability problems is RFID is tough to test. Reflections and interference patterns mean you'll get areas where reading will fail, even when inches away reading works very well - and if you move metal in the environment around, it all changes and the nulls move.
And that's before you get into having a thousand different products from a hundred different suppliers, all of whom now have to learn this new RFID technology.
Another thing that leads to reliability problems is simple mechanical matters: It's tough for an RFID tag to survive being in between two metal cans that bump together.
And if you're hoping to do something like detecting thefts, a system that is merely 99.99% reliable is going to generate far more false alarms than it does real alarms.
That could be solved by giving the customers handheld barcode scanners.
From what I heard/saw I figured there was something more because what it seemed to be achieving was very low hanging fruit.
Walmart is notorious for cutting costs and keeping prices low for shoppers and a razor thin profit margin. Their real strength is their supply chain and I have tremendous respect for what Walmart does...and I don’t think anyone matches Walmart when it comes to supply chain management. I heard even amazon’s best are from Walmart.
Having said that..I could see no way Bossa Nova bots were compatible with Walmart principles. IMO, they should all pivot and work on autonomous Ag bots. Unlike warehouses, there are multiple environments and multiple problems to solve in Ag. And it’s under explored and under developed.
I remember thinking that this(walmart bots) is similar to Ag robotics. Robotics and automation companies coming up with a solution first and then hope that they can define the problem later. They are creating solutions for problems that don’t exist in the first place.
Or, Amazon can slide into the groceries space.
As a result, clicking the back button only once from the `.com` takes you to the `.co.uk`, which redirects you back to the `.com`. Clicking twice, or if you follow the `.com` link in the first place, does not affect the back button in any way.
I imagine with OCR advances (and similar) it would make more True Positives, eliminating the need for a worker.
If a worker still needs to check an isle it almost defeats the purpose.