The logistics and warehousing industries are transforming. Emerging technologies are providing opportunities for these businesses to evolve. By adopting new technologies, such as warehouse robotics, your business can stay on top of customer demand, improve profitability, and optimize every aspect of your operation. While some businesses are fearful of this type of big business change, the advantages undeniably outweigh the costs. Robotic warehouse solutions can control costs, address labor issues, and increase efficiency, productivity, and reliability.
Justifying the Initial Investment
To adopt the newest available technologies, a large initial investment is required. Clearly, as the competitive landscape continues to evolve and intensify, no business can afford an investment that does not pay off. Making sure your initial investment sees tangible benefits as soon as possible is top-of-mind for all who consider making the investment. Suffice it to say, most businesses who take the leap see a reasonably fast return on investment. The higher volume with which your business operates, the sooner you will reap the full benefits and see it on the books.
That is because these new technologies are cutting out any excess, streamlining operations, which guarantees long-term advantages. For example, ground wires, tape, magnets, and reflectors were commonly used for materials handling before today’s warehouse robotics. However, new lift trucks have the benefit of operating without any added infrastructure. In addition, they are unrestricted by fixed routes. This level of flexibility and ease of use take the theoretical benefit of new technology and transform it into an undeniable measure of success.
Employee turnover and lengthy training time are two common liabilities that can be mitigated with warehouse robotics. According to the Bureau of Labor Statistics, the turnover rate for warehouse workers is 36 percent. To fill a newly vacant position, a business can spend anywhere from 25 to 150 percent of the original employee’s salary. In addition, training inexperienced or unskilled employees can be just as costly.
To fix these issues, warehousing companies can use new technologies. Automated systems, for example, can reduce training time. Furthermore, adopting automated transportation solutions like robotic lift trucks can help simplify tasks reserved for employees. In these cases, companies are generating trained employees even faster and are keeping experienced employees happy with simpler responsibilities.
It is important to note that implementing warehouse robotics does not always take away jobs from human workers. Using automated solutions in tandem with a human workforce, known as “co-botics”, can ensure even more streamlined and efficient operations. In cases where technology does replace a human worker, managers address the labor shortage and allow employees to advance to more engaging, meaningful positions, curbing employee turnover.
Lower Long-term Costs
When adopting warehouse robotics in an effort to automate processes, calculating the associated payback is one of the top priorities. While direct labor savings are obvious wins, with expenses like hourly wages and overtime rising to the top, consider all of the other savings that robotics can generate.
The following costs may reduce as a result.
- Workers’ compensation
- Lost time due to illness or injury
- Retraining and re-education
- Long-term wage increases
As mentioned above, tech and humans working together yields many benefits and can also lower costs. This arrangement leverages the strengths of both resources to make every affected task more efficient.
Specialized Storage Can Help Your Business
The experts at Specialized Storage can help your business adapt to these demanding times. Adopting new technologies, like warehouse robotics, is a great step towards improving profits and maximizing efficiencies. To optimize operations even further, reach out to our team today to learn more about taking advantage of every possibility. A member of our team will assess your space, ask about your needs, and design a custom warehouse solution just for you. Contact us today to learn more!