The ROI of Automated Warehouse Solutions

Material Handling NetworkCimcorp in the News: The rising costs of order fulfillment and growing labor challenges have left more and more warehouses and distribution centers struggling to keep up. This has led many companies to consider automation as a solution to their material handling needs. While automated systems offer many great benefits to warehouse operations, at the end of the day it is all about the return on investment (ROI).

After all, automated solutions often represent huge capital investments, and warehouse managers may find it difficult to justify these expenditures to executives for project approval. While “hard” benefits like the reduction of labor may be easy to calculate, it can be more difficult to put a dollar value to the “soft” benefits of automation. Companies only reaching for the low hanging fruit for a quick payback are going to miss out on greater opportunities to improve efficiencies, reduce long-term costs and facilitate future growth.

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