Warehouse Automation ROI Mistakes to Avoid

Most distribution center operations have seen significant increases in warehouse labor costs, as well as all time high lease costs for a new facility. These factors have driven more companies to consider warehouse automation to remain in the current facility longer and reduce the labor costs. These two cost components can radically increase your cost per order. However, this does not mean that companies should simply employ automation without achieving a cost-effective warehouse automation ROI.

One of the first aspects in determining the warehouse automation ROI is to ensure that the automated solutions being considered are realistic for your business. Many companies begin their process with some “YouTube shopping”, becoming enamored with a certain automation system. That skips over any detail consideration of current process, systems and costs.

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5 Factors To Understand Before Implementing Warehouse Automation

As you consider evaluating and deploying automation and robotics to your warehousing and distribution processes, there are five factors you must consider to be able to implement it in an efficient and cost-effective manner.  This article identifies the analyses that should be done, before making decisions on deploying automation. 

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How Automation Is Reducing Labor Cost and Improving Order Turnaround Time

To say 2020 was a curveball most businesses would be a gross understatement. While Americans suffered and many small businesses closed permanently, multichannel businesses as a whole saw significantly higher volumes, largely from direct-to-customer orders. The difficulty was in trying to keep workers safe and have enough labor to ship customer orders without falling more than a few days behind. For some clients, the goal was to merely not fall more than 10-14 days behind.

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