Case Study
How Dircks Transformed Outbound Operations with AI
| Kargo | 4 min
What You Need to Know
In today’s logistics landscape, third party logistics providers (3PLs) face the challenge of meeting rising customer expectations for high-quality service while keeping costs down.
To strike this balance, Dircks Moving & Logistics recognized the need to innovate and automate their outbound processes. By reducing inefficiencies and minimizing costs without compromising on the quality of their services, Dircks aimed to position itself as a leader in the logistics industry.
Challenge
Like many 3PLs, Dircks’ outbound operations relied on manual processes that were both time-consuming and prone to error.
Dircks recognized that such dependence on manual labor led to operational inefficiencies and increased the risk of inaccuracies in outbound shipments, which could impact customer satisfaction and overall business performance.
Before implementing Kargo, Dircks' outbound workflow involved several labor-intensive steps: picking pallets from warehouse racks, moving them to a staging area, manually scanning and verifying the orders, and then loading them into trailers. Each step required significant time and effort, which hampered throughput and accuracy.
Solution
To address these challenges, Dircks implemented Kargo’s computer vision solution across their loading docks to automate critical outbound processes and unlock what they refer to as "fluid loading." This transformative approach eliminated the need for a staging area and manual scanning, creating a more streamlined and efficient loading process.
Installed at the dock doors, Kargo Towers use computer vision, a type of artificial intelligence, to capture information from labels and perform quality inspections as forklifts pass by. This enables Kargo to verify shipments against orders, flag exceptions, identify damage, and update Dircks’ existing Warehouse Management System (WMS) in real time.
By adopting Kargo, Dircks has achieved several key benefits:
- Automated Scanning: Kargo automates label scanning and shipment verification, allowing Dircks to operate a scannerless workflow. This reduces the time and labor required for each shipment and significantly lowers the risk of human error.
- Increased Efficiency and Throughput: The introduction of Kargo’s automated verification process has enabled Dircks’ staff to focus on managing exceptions—such as overages, shortages, and damage—rather than spending time checking every pallet. This shift, along with automated scanning, has led to increased efficiency and a higher throughput rate. By eliminating bottlenecks, Dircks can now handle a greater volume of shipments in less time, reducing dock dwell time and increasing overall productivity.
- Improved Shipping Accuracy and Customer Satisfaction: Kargo catches and alerts staff to issues as they arise, giving Dircks the opportunity to rectify any mistakes before the truck leaves. This proactive approach ensures higher shipping accuracy and fewer claims, contributing to improved customer satisfaction.
- Enhanced Inventory Visibility: Kargo integrates seamlessly with Dircks’ existing WMS, providing real-time updates on inventory levels as shipments are processed. This enhanced visibility supports better decision-making, helping Dircks manage inventory more effectively and maintain high levels of customer satisfaction.
The implementation of Kargo's solution was straightforward, requiring only 30 hours of WMS work to integrate the new technology into Dircks' existing systems. This quick setup allowed Dircks to immediately begin benefiting from the automated processes and improved efficiency.
“Implementing fluid loading has been a game-changer. By automating processes with Kargo, we’ve been able to handle higher volumes with greater accuracy, positioning us for sustained growth in a competitive market,” says Dircks' CEO Matt Dircks.
Impact
The impact of Kargo’s solution on Dircks’ operations has been substantial:
- Quality Assurance: Ensured the quality of 74,913 pallets in the first six months, significantly reducing the risk of shipment errors and enhancing customer trust.
- Increased Throughput: Enabled Dircks to increase overall outbound throughput by 34% month over month since Q4 of 2023.
- Operational Efficiency: Automated critical processes, eliminated manual scanning, and reduced labor costs, allowing Dircks to focus on strategic growth initiatives.
“As we continue to grow, providing the highest quality service remains our top priority. Adopting advanced AI solutions like Kargo allows us to increase throughput while upholding our commitment to our customers,” emphasized Dircks' CEO, reflecting on the company’s dedication to innovation and customer satisfaction.
Driving Growth Through Innovation
By implementing Kargo’s computer vision solution, Dircks has successfully transformed its outbound operations. The adoption of fluid loading has not only increased efficiency and accuracy but also unlocked new growth opportunities for Dircks in a competitive market. As a result, Dircks continues to uphold its reputation as an industry leader committed to delivering the highest quality service to its customers.
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