In 30 days, Kargo’s computer vision infrastructure was implemented across Armada’s warehouse hub network, significantly improving efficiency and ultimately yielding a 56% ROI.
Kargo, a leader in artificial intelligence (AI) technology for logistics, and Armada Supply Chain Solutions, LLC, 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.
“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.”
“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.”
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 (i.e. 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.
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“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.”
Armada handles products from thousands of suppliers, which makes the task of automatically digitizing key data elements (KDEs) from the myriad unique, non-standardized labels extremely challenging. Complex scenarios like this are precisely what Kargo’s 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.
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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 trading partners.”
In addition to the operational benefits, this seamless integration is crucial 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.
Jensen explains, “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.”
Jensen added, “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.”
Sam Lurye, founder and CEO of Kargo, reflects on the Armada relationship and the broader impact of the collaboration saying, “It takes vision, guts and operational execution to push the boundaries of what’s possible. Armada continues to innovate, and we’re honored to collaborate in bringing the latest in AI innovation to ensuring best practices in the supply chain.”
