BJ’s Gains Efficiency from Robotic Inventory Management

The wholesale club has launched Simbe's robotic system, using barcode scanning and computer vision, to capture on-shelf stocking data at 237 clubs, and is gaining efficiency and reducing out-of-stock events.
Published: April 19, 2023

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While inventory flows rapidly through wholesale stores, and as inventory counts help to ensure shelves are stocked, tracking that inventory can be uniquely challenging in this environment. For one thing, large metal shelving puts merchandise out of the view of handheld barcode scanners and some RFID readers as well.

BJ’s Wholesale Club plans to expand a solution from Simbe Robotics to its 237 locations by the end of this year, using a robot armed with computer vision and artificial intelligence (AI), as well as barcode scanning, to track inventory at the wholesaler’s many clubs. The solution is aimed at three main challenges: on-shelf availability, pricing integrity and product location. The BJ’s deployment represents the first implementation of Simbe’s Tally robotics into a club warehouse environment, according to Brad Bogolea, Simbe’s CEO and co-founder.

BJ's Wholesale Club plans to expand a solution from Simbe Robotics to its 237 locations by the end of this year.

BJ’s Wholesale Club plans to expand a solution from Simbe Robotics to its 237 locations by the end of this year.

The wholesaler’s products are displayed on large steel warehouse racks, on shelves that stand a dozen feet high or more. Its products come with barcodes, typically larger than standard ones, due to the size of packaging, which makes it possible for the Tally robot to scan, even from a distance, and then analyze in 2D and 3D imaging. Bogolea says Tally can scan both sides of an aisle, capturing data regarding inventory as high as 24 feet.

Simbe has been working with BJ’s Wholesale Club for approximately a year, initially discussing the applications, and then piloting the technology. The Tally robots were first tested at seven BJ’s clubs. “During that time,” Bogolea recalls, “we worked closely with the BJ’s team to ensure that Tally is fully optimized to operate in a club environment,” from the sales floor to the steel racks and everywhere in between. Following the pilot, BJs began rolling out the technology to the 237 club locations.

BJ’s is focused on providing the best possible experience for both club members and team members (customers and store employees), Bogolea explains, and Tally enables that mission by ensuring products are in stock, shelved at the right location and accurately priced. Tally is a fully autonomous robot equipped with an array of sensors enabling it to navigate a store strategically and quietly without being intrusive to customers or store personnel, Bogolea says.

Using AI and computer vision, Tally can identify which products are out of stock, misplaced or mispriced, as well as provide a live-view into store conditions. Additionally, Bogolea says, Simbe is the only retail robotics company to offer both RFID and computer vision capabilities, though BJs is opting to use only the computer vision functionality at present.

How the Solution Works

Each site has at least one robot, which uses computer vision to follow a pre-determined path through store aisles, collecting data as it goes. The Tally’s built-in scanner captures barcode serial numbers that are then linked to the store’s planogram and inventory data in the cloud-based software. The system can identify what is on display in each area, based on the robot’s location during each scan, as well as what the price should be and how many of each product are available. Store personnel can then use that information to ensure proper shelf data, or to correct any anomalies such as an empty shelf or a misplaced item.

Brad Bogolea

Brad Bogolea

The Tally robots operate during normal business hours, multiple times per day, and are programmed to utilize the sensor data to avoid obstacles and hazards in aisles, including shoppers. Each robot operates at a maximum speed of 0.5 meters (1.6 feet) per second, which is one-third the pace of a typical walking speed. It uses computer vision to identify changes in its environment, such as people walking or standing near or around it. “Tally is intentionally designed to be shy and unobtrusive, and it has great manners,” Bogolea states. “If Tally encounters a shopper or associate while scanning shelves, it pauses to allow them to finish their task, goes around them, or turns and goes in the other direction, to come back later.”

For management, the cloud-based application empowers teams to manage and monitor the Tally robots across all BJ’s clubs. The platform offers such features as prioritized alerts, analytics and recommendations, all generated by terabytes of collected data. Additionally, Tally creates high-definition renderings of each aisle, which individuals can then use to virtually walk through their club or store.

Some examples of analytics and alerts include instructing warehouse workers to put more product on the next shipment to a particular store because it is selling quickly there. The system provides business analytics, such as which location sells a given product fastest, and by how much. It identifies where excess inventory is located within the store, as well as available space to optimize pallet management. The Simbe system is designed to provide real-time insight into marketing and merchandising campaigns at a store level, Bogolea adds.

Meeting the Unique Challenges of Club Environments

To configure the solution for the wholesale club environment, Simbe had to tailor the system in ways that are different from those used at standard grocery stores. “We worked closely with BJ’s” to accomplish this, Bogolea states. Simbe’s AI-powered Tally robotics solution will be integrated into BJ’s existing operation-management system, the company reports, to improve operational efficiencies and enhance the member experience. “The speed at which retail operates has evolved,” says Krystyna Kostka, BJ’s Wholesale Club’s senior VP of operations. “Greater automation can help us respond with speed to real-time conditions and business opportunities.”

Krystyna Kostka

Krystyna Kostka

BJ’s has not previously deployed similar systems chain-wide. Kostka says the robot’s form factor was important to the company, adding, “The general demeanor and behavior of the Tally robot was on point, with its friendly and unobtrusive presence.” The wholesale company expects the technology to improve efficiencies by enabling faster restocking, directing team members and customers to quickly locate products, and providing inventory tracking visibility. “Ultimately,” Kostka says, “Tally allows team members to be more efficient and refocus more of their time toward providing exceptional customer service.”

This year, the company intends to scale the technology deployment to all of its club locations. “We are excited about the baseline technology and the potential to scale into new and compelling use cases in the future,” Kotska says. “By deploying Tally in all of our club locations, we will gain unprecedented insights which will leverage real-time data, enabling us to continuously improve our operation and ensure that we’re offering the best possible experience to both our team members and members.”

 

Key Takeaways:

  • BJ’s deployment of Simbe’s Tally robots is enabling the wholesalers club to ensure inventory is in stock and properly displayed, thereby reducing labor and out-of-stock events.
  • The technology is designed to operate during business hours, navigating aisles and steering clear of customers and workers.