AGV Benefits: The Mystery of the Mangled Merlot

Editor’s Note: Identifying details, including company names, have been altered to protect the privacy of the involved operations.

Super Wine Distributors had a serious problem.

Nearly every driver in the company reported damage to one pallet of every single wine shipment, resulting in a massive revenue loss. That struck the company as odd. They were using trusted warehouse workers to carefully load each pallet into their trucks every time. What could cause that kind of damage, and how could they stop it? The solution came from an unexpected source.

Read on to learn how Super Wine Distributors solved their problem with automated guided vehicles and earned an instant ROI.

The Problem: Product Loss

The issue Super Wine Distributors (SWD) faced is one that plagues many industries.

Product loss is a significant problem that erodes your revenue. It’s made even more frustrating by the fact that it is largely preventable. There are two primary sources of product loss.

Product damage is the first.

To some extent, product damage is unavoidable. Accidents happen, and they often result in damaged goods. However, product loss due to damage can be significantly reduced by using the proper equipment and employing a careful, trusted team.

Theft is the second.

This is a less straightforward issue to solve. Odds are, the vast majority of your associates are honest and wouldn't dream of ripping off the company. That honesty deserves respect and trust. Yet, no matter how carefully you screen your staff, there will always be a few who are willing to break the rules when no one is watching.

Sometimes, the best thing you can do is put systems in place to keep honest people honest.

The Solution: AGV Advantages

There’s plenty of talk about the efficiency of automated guided vehicles (AGVs), but that’s not why SWD implemented them.

One of the under-reported advantages of automated guided vehicles is the on-board cameras. These cameras can offer a complete 360-degree view, taking photos every 30 seconds as they travel your facility. These work better than security cameras because they are actually involved in your process. Likewise, because AGVs provide a useful service, your team is less likely to view them as “Big Brother.”

Constant monitoring enables you to more effectively analyze your process.

By reviewing these photos, you can gain an understanding of what happens within your facility when you're not actively walking the floor. This provides you with the opportunity to reward positive behavior that would have otherwise gone unnoticed or correct negative behavior that affects the efficiency of your facility.

Cameras mounted on AGVs also allow you to determine whether product loss is due to damage or theft.

Accountability: AGV ROI

Cameras keep people accountable.

The internet is proof that humans behave differently when they have anonymity compared to when they are accountable for their actions. Most of the time, there is no malicious intent, but standards often slip when no one is around to see. Workers get pressed for time, have a bad day, or fight fatigue. All of these lead people to cut corners.

For your business, cutting corners could mean losing millions in damaged goods.

Take the pharmaceutical industry, for example. These companies move millions of dollars worth of life-saving medicines through their facilities every day. One pallet lost to carelessness not only creates a massive hit to revenue. It also creates shortages of vital medications.

More and more, big pharma looks to AGVs for the answer.

With so much at stake on every pallet, neither they nor their clients can afford a slip-up. Cameras mounted on their AGVs help them find weaknesses in their supply chain, allowing them to prevent tampering and damage.

The ROI from preventing that loss far exceeds the cost of installing even a comprehensive AGV network.

Whodunit: A Mystery Solved

Through the benefits of AGV surveillance, SWD figured out what was really going on.

They incorporated AGVs into the loading process for their wine shipments. With the cameras, they verified that every pallet loaded was undamaged. Other than making their staff aware of the cameras, they took no other action.

Suddenly, the damage disappeared.

Overnight, reports of damaged pallets dropped to zero. The company didn't notice a slowdown in loading speed, which they would expect if the dock team suddenly became more careful. Yet, the results were indisputable.

It turns out it was the drivers.

Nearly all the drivers consistently stole bottles of wine from the last pallet of the day. No one was looking. So they figured, why not? Yet, the use of AGV-mounted cameras kept everyone accountable. The thefts stopped, the saved revenue paid for the AGVs in record time, and no one lost their jobs.

Integrating AGVs was the definition of a win-win for Super Wine Distributors.

The AGV Experts

All we ever hear about is the fantastic improvements in efficiency offered by AGVs.

However, they offer a lot more than 24-hour functionality. AGVs are intelligent machines that improve your operation in innumerable ways—far too many to list here. Bottom line, if you've never considered AGVs, it's time to start. That's where we come in. Our expert team is at the forefront of this emerging technology. We have all the knowledge you need to make your decision on whether AGVs can benefit you.

Still have a few mysteries lurking in your warehouse?

You don’t have to solve them alone. Just like any good detective, the first step is opening a case file.

Invite Lilly in to investigate, we’ll help you uncover the hidden causes of product loss, inefficiencies, or missed ROI.

You can book a Warehouse Investigation or, if you’re not ready for boots on the ground, download our Warehouse Automation Toolkit to gather some early clues.

Explore both options here.

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Further Reading
AGVs 101: Your Guide To Autonomous Warehouse Vehicles
Answers to Your Most Frequently Asked Questions about AGVs
AGVs Are the Future: The Best Industries for Automated Guided Vehicles