Globally, out-of-stocks cost retailers an estimated $1T in lost sales. An estimated 20% of these losses are due to phantom inventory, the misreporting of product units actually on-hand. Despite technical advances in inventory management software and processes, the truth is that most retailers still struggle to report accurate unit counts without employees manually performing a visual inspection. .
For product manufacturers, quality problems erode between 15 and 20% of annual revenues. Manual checks come with their own set of risks, including worker fatigue, distraction, specialized training and general human error. To quote a US Department of Energy review of the relevant literature on visual inspections, “inspection error is a fact of life.”
A solution driving use cases addressing retail’s out-of-stocks or manufacturing’s cost of quality concern is computer vision. Why? Computer vision applications are ideal for solving these and other problems because it’s on 24/7, more accurate, and can immediately scale to thousands of devices with up to 99% detection rates, minimizing product defects to the absolute minimum. Computer vision uses the power of massive data sets, machine learning and an image library to compare and identify 2D images or 3D objects against a known standard. If that image or object does not match the standard, informed or predictive action can be taken. Computer vision can answer simple questions like, “are all my screws in the bin the same type and size, or is my retail stock shelf full and organized.”
Computer vision by itself does not improve manufacturing quality or a retailer's store shelf-stocking levels, but it closes the time that a defect or stock out is detected and corrective action is taken. Use cases that benefit from computer vision are:
Manufacturing
Retail
Computer vision from a data perspective
When implementing computer vision to tackle some of your toughest use cases, here are three guiding thoughts on how to handle your data:
Consider new data sources
Address mountains of real-time data
Leverage the computer vision ecosystem
At Databricks, we are in a unique position to assist enterprises with their computer vision journey. Built with the goal of enabling all enterprises to leverage data and artificial intelligence (AI), Databricks has native capabilities for the handling of the complex, unstructured image and video data consumed in this space. Leveraging an extensible collection of the most popular computer vision libraries, Databricks focuses on scaling AI model training, management and deployment to ensure organizations are able to quickly recognize value from their work. And by tapping into the capacity of the major cloud providers, we allow organizations to cost-effectively take advantage of the specialized hardware (e.g., GPUs, edge devices, etc.) and workflows required by many computer vision models.
With this in mind, we are launching a series of blogs intended to share our insight on computer vision from a data-driven perspective, how a data platform may be used to tackle a wide range of computer vision challenges or end up being a challenge in itself, and how ecosystem partners can speed return on investment.
Our goal is to enable organizations to successfully deliver computer vision capabilities that map to widely recognized needs in the retail and manufacturing industries. Want to get started building computer vision solutions at scale? Join our upcoming workshop to get hands on understanding on December 9, 2021 at 9:00am PST as we kick off this series with an engaging webinar with our partner LabelBox. See you there.