Embedded Vision in Supply Chain Management
Embedded Vision is Bringing Supply Chains into a Connected, Digitized Future
Supply chains are one of the least digitized areas of a business and, according to a recent study, only about 2% of executives say the supply chain is the focus of their digital strategies1. Embedded vision systems will play a big role in changing this reality. An embedded vision system's ability to augment the physical movement of goods will create efficiencies no executive can ignore.
The global market for connected logistics technology is growing rapidly. In 2016, it was worth approximately $9.72 Billion, but by 2022 it's projected to be worth $54.80 Billion, growing at a compound annual growth rate (CAGR) of 33.4%2. The falling price of advanced image sensors and the rising need for operational efficiencies are the main drivers of this growth.
Automated guided vehicles (AGVs) for movement of goods within a warehouse, as well as drones for automated inventory tracking, are some of the most innovative and promising technologies leveraging embedded vision systems to automate supply chain processes. Barcode scanning was an early embedded vision application, but this is evolving into automated data capture at the shipping and receiving level to inform ERP systems for track and trace, packaging, quality, labeling and volume. Even augmented reality is making its way into the supply chain space, helping truck drivers and warehouse workers alike manage tight schedules with navigation and product recognition assistance.
Supply chain management is ripe for disruption. As more and more logistics processes find automation solutions that drive meaningful efficiencies, embedded vision systems will be at the heart of quick technological growth within supply chain management.
1. Enis Gezgin, Xin Huang, Prakash Samal, Ildefonso Silva, McKinsey & Company, “Digital Transformation: Raising Supply-Chain Performance to New Levels.”
2. Reuters, “Connected Logistics Market Size, Share, Report, Analysis, Trends & Forecast to 2022”