Maximizing ROI and Mitigating Risks with Robotics
You must make the business case before making the investment.
Robots are everywhere in the warehousing industry these days. A look around the showroom of a trade show will feature everything from traditional fixed arms to autonomous mobile robots (AMRs), and even humanoids. While the latter remains largely in the (near) future, the former have plenty of use cases today. But before you consider that shiny new toy, it’s important to consider the many costs involved, and what the benefits are. You want to mitigate risks as best you can.
When it comes to costs, the price tag on the robot itself is only the beginning. When budgeting for robots, you need to include the added costs like the fleet manager software, integration, programming, and the brief productivity dip that will accompany starting up the new equipment. In other words, take a full, holistic approach to pricing out a robotics project.
The good news is that, as with all technology, the costs associated with robots continues to drop as it matures. What once was available only for the largest operations is now within reach for small- and medium-sized operations. Additionally, robots now work alongside humans as “co-bots,” making the most of your available labor pool. The software is getting better, the robots can work faster, and integration—while still a difficult task—is getting easier, too. You need to apply fewer resources to all aspects of robots today.
There are also more avenues for bringing robots onto your floor. While a capital expenditure is the most common, there are options for robotics as a service. There are also modular systems that allow you to invest in a year-round fleet and then scale up for temporary stints. Busy season is a good example. If you’re a toy retailer that does a big ramp up before the holidays, you can work with your robot OEM to bring in the extra number of units you need to get through that busy season. When finished, you ship the robots back to your OEM and return to business as usual.
Still, you must justify your spend and the way to do that is to build a use case. Don’t start with the technology first. Consider what your most compelling business need is—what problem are you trying to solve? Do robots solve that problem? Also consider whether your company culture is ready for robots. One way to go about it is to ease in with a smaller robot purchase to allow your team to adjust and buy in to the benefits.
Finally, you need to mitigate risk and deliver an ROI. These days, most companies look for an ROI from their robotics in about two years. If you’re building a greenfield site, look at robots strategically. Can it help you fulfill orders and attract qualified labor?
To mitigate risk, it all comes back to that business case. You need to evaluate your workforce through automation. Try testing in advance through simulation, emulation, or a digital twin. Quantify the benefits, comparison shop, and if it all makes good sense, move forward.
Learn more about The Robotics Group (TRG): mhi.org/trg
For further articles from the The Robotics Group (TRG):
How Robots Positively Impact the Labor Shortage
How to Justify the Cost of Robotics–Part 1
Podcast: Robotics and Humans: A Synergistic Workforce
Order Orchestration Optimization Through Robots
Robotics in Logistics, Part 2 – You’ve Decided to Add Robots—Now What?
