Kargo & Armada: Setting AI Standards in Inventory Management

Kargo, a leader in artificial intelligence (AI) technology for logistics and Armada Supply Chain Solutions, a leading supply chain solutions provider, announce the successful rollout of Kargo's computer vision solution at 240 dock doors to automate inventory management across Armada's network of warehouse hubs.

This strategic deployment underscores Armada's commitment to leveraging innovative technology to provide unparalleled service to their customers, which include many of the largest restaurant brands in North America, which includes McDonald’s, Chipotle and Chick-fil-a.

"Our clients are constantly raising their expectations for service, precision and traceability," says 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 realise 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."

Revolutionising how supply chains are managed

Armada Supply Chain Solutions creates innovative, data-driven, fully integrated supply chain solutions that improve business performance for its clients, which include Fortune 500 companies, enabling them to best serve their customers.

It is revolutionising the way supply chains are managed by creating resilient and agile networks to manage the challenges of today's market.

Armada believes there's a better way – rooted in transparency, advocacy and ingenuity.

Kargo provides an integrated hardware and software solution that automates freight data capture and verification.

Kargo Towers are installed at warehouse loading docks and use computer vision, a form of AI, to gather information on case labels and product condition.

This enables Kargo to flag exceptions (e.g. overages, shortages, damage or compliance concerns) in real-time, provide visual proof of the contents and condition of every pallet and supply accurate inventory and operational data to both the Kargo Platform and existing supply chain management systems.

Sam Lurye, founder and CEO of Kargo, adds: "It takes vision, guts and operational execution to push the boundaries of what's possible. Armada continues to innovate and we're honoured to collaborate in bringing the latest in AI innovation to ensuring best practices in the supply chain."

Enhancing inventory management

Armada handles products from thousands of suppliers, which makes the task of automatically digitising key data elements (KDEs) from the myriad unique, non-standardised labels extremely challenging.

But it is for situations like this why Kargo is called in, with its new method of AI-based label reading was developed for - it is fast, accurate, explainable and can be easily updated when new suppliers are added. With Kargo's patented solution, customers see a 30-50% improvement in inventory integrity, according to the company.

"We implemented Kargo's solution in less than one month and began leveraging the resulting data to meaningfully enhance our inventory management," adds Kris.

"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 modernising logistics solutions and promoting proactive supply chain resiliency."

Kargo deployed towers equipped with computer vision at Armada’s warehouses in less than 30 days and Armada is experiencing 56% ROI.

Computer vision technology flags missing or damaged items, food expiry dates and enables Rule 204 FSMA compliance for food traceability and safety

Rick Rover, President of Armada Warehouse Solutions, says: "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 trading partners."

This seamless integration is of paramount importance, as the industry faces stringent requirements under the Food Safety Modernization Act (FSMA).

The FDA's Food Traceability Rule, which implements Section 204 of FSMA, requires enhanced tracking and recordkeeping for food products, challenging industry players to elevate their traceability and compliance measures.

Kris continues: "Most of the industry is still grappling with Rule 204 compliance. Achieving compliance would have traditionally required a massive increase in labour—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.

"The food industry anticipates substantial changes over the next five years.

"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."

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