Customer Spotlight
How Armada is Setting New Standards for Inventory Management with AI
| Kargo | 5 min
What You Need to Know
The global food logistics market is projected to reach $260.56 billion by 2032, according to Allied Market Research’s Food Logistics Market report. Staying ahead of the curve requires visionary leadership and innovative technology.
Armada Supply Chain Solutions has demonstrated both by successfully implementing Kargo’s advanced AI solution, setting new standards for inventory management and operational efficiency.
Leading the Charge in Innovation
Armada, a leading provider of supply chain solutions for the food industry, has always been dedicated to delivering exceptional service to their customers, including some of the largest restaurant brands in North America.
Armada rolled out Kargo’s computer vision solution across their National warehouse footprint to improve inventory management, while increasing operational efficiency and accuracy.
“Our clients are constantly raising their expectations for service, precision, and traceability,” said Kris Jensen, VP of Warehouse Operations and Client Support at Armada.
“Kargo has been a tremendous partner in helping us stay ahead of the market and realize our vision for how AI can improve our service and strengthen our clients’ supply chains. The solution has become a critical part of our warehouse technology infrastructure that benefits our employees and clients alike. We look forward to continued future progress.”
As companies in the food logistics market strive to improve their operations, Armada’s success with Kargo’s solution serves as a compelling case study and a benchmark for others.
Proven Results and Impressive ROI
Kargo’s integrated hardware and software solution automates the capture and verification of freight data. Kargo Towers, installed at warehouse loading docks, use computer vision technology to collect inventory and production condition data. This enables Kargo to:
- Flag overages, shortages, damages, or compliance concerns in real-time.
- Provide visual proof of the contents and condition of every pallet.
- Supply accurate inventory and operational data to both the Kargo Platform and existing supply chain management systems.
“We implemented Kargo’s solution in less than one month and began leveraging the resulting data to meaningfully enhance our inventory management,” continued Jensen.
“Our entire team depends on Kargo’s operational platform for faster inbound receipts, fewer claims, improved accuracy when receiving to break out lots or expiry dates. Armada is positioned to lead the charge in modernizing logistics solutions and promoting proactive supply chain resiliency.”
Meeting Industry Challenges with Innovation
In food logistics, managing diverse products from various suppliers is a complex task. Armada handles products from thousands of suppliers, making the task of automatically digitizing key data elements (KDEs) from a wide variety of unique, non-standardized labels very challenging.
Kargo’s innovative AI-based label reading technology is designed to address these complex scenarios. Kargo’s method of label reading is fast, accurate, explainable, and scalable, allowing for new suppliers to be added quickly and easily. With Kargo’s patented solution, customers experience a 30-50% improvement in inventory integrity.
Rick Rover, President of Armada Warehouse Solutions, highlighted the operational synergy provided by Kargo, stating, “The dock door is the universal connection point between Armada and our supply network. Kargo enables seamless coordination of inventory transactions with our upstream and downstream partners.”
Operational efficiency is a key indicator of success in the food logistics industry. Armada’s success with Kargo’s AI solution highlights the potential for other companies to achieve similar improvements.
Scalable, Future-Ready Technology
Kargo’s AI solution is designed to be scalable and adaptable, making it ideal for addressing the complex demands of modern supply chains. Here are some highlights:
- Automated Scanning: On average, Kargo scans 9,000 pallets per day, handling $1.5 billion worth of products each month.
- Exception Management: Kargo identifies and flags approximately 536 inventory exceptions daily. With Kargo, 3PLs that handle products for various different suppliers can create custom rules for each SKU to help operations like Armada’s to ensure compliance and customer satisfaction.
- Supplier Onboarding: Kargo has learned over 1,000 distinct label variations to date and can learn a new label in just 5 seconds, enabling 3PLs like Armada to easily handle products from thousands of suppliers handles products from thousands of suppliers.
Inventory Visibility: Each week, the system captures and digitizes an average of 2.8 million images of labels, providing comprehensive data for decision-making around inventory.
The future of the food logistics industry is poised for significant transformations, driven by advancements in technology and increased regulatory scrutiny.
“Our clients rely on us for proactive solutions to advance supply chain operations, traceability, and food safety measures. Kargo represents a paradigm shift in inventory visibility that sets a new standard for the industry,” said Jensen.
Armada’s forward-thinking approach positions them to lead these changes.
Ensuring Compliance and Operational Efficiency
The regulatory landscape in the food logistics industry is becoming more stringent, necessitating the adoption of advanced technologies to ensure compliance.
Kargo’s advanced technology suite offers critical support in meeting the new requirements of the FDA’s Food Traceability Rule. Kargo’s AI solution assists Armada in capturing all necessary key data elements (KDEs) for FSMA compliance efficiently, providing AI-verified data at their fingertips.
“Most of the industry is still grappling with Rule 204 compliance. Achieving compliance would have traditionally required a massive increase in labor—which is not sustainable or cost-effective. With Kargo, we manage to capture all necessary KDEs for FSMA compliance efficiently, with AI-verified data at our fingertips,” explained Jensen.
Ensuring compliance with evolving regulations is critical. Armada's proactive approach in leveraging AI for compliance sets a new standard in the industry.
Looking Forward
By integrating Kargo’s AI solution, Armada showcases its role as a technological leader in the food logistics sector, setting benchmarks that other companies aspire to meet. Sam Lurye, founder and CEO of Kargo, reflects on the Armada relationship and the broader impact of the collaboration saying, “We’re excited about the future and what this partnership means for the industry.”
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