How Much Does Warehouse Automation Cost?

Warehouse automation is a helpful way to improve your facility’s efficiency. As companies find ways to leverage new and existing technologies to facilitate the production and movement of inventory in their warehouses, they are creating systems that are easier, faster, and less prone to human error. Labor costs go down and productivity goes up.

Warehouse automation uses robotics technology and software to automate the tasks associated with warehouse operations. These automation processes help keep up with the growing demand of warehouse fulfillment with online sales predicted to hit over $500 billion by next year.

While warehouse automation sounds like the perfect solution for every business, it can be cost-prohibitive.

How Much Does Warehouse Automation Cost?

• The cost of a system that improves picking will cost anywhere from $500,000 to $1 million
• A mechanized operating system ranges from $1 million to $5 million in costs.
• Converting to a semi-automated warehouse will cost from $5 million to $15 million
• A fully-automated warehouse tops out at around $25 million

The options are as vast as they are varied. These key factors can determine which automation options are available for your operation:

• Size and scope of the automation activities. Different levels of automation exist, ranging from a few basic automation tools to more advanced designs that incorporate systems that are fully mechanized and automated.
• The types of technologies utilized. Different types of automation technologies exist for different warehouse processes. Obviously, the more technology you incorporate and the more advanced that technology is (requiring less human intervention), the more expensive it will be.
• The maintenance involved. Many companies don’t have in-house specialists to perform regular maintenance on the equipment or troubleshoot when things break down. Scheduling these types of service calls will cost both time and money.

How Much Can You Save Using Warehouse Automation?

Automating warehouse production can save your business a great deal of money. Some costs that can be cut in production are:

• About 65% of a warehouse operating budget goes to labor costs
• Retail inventory fulfillment is only correct about 63% of the time
• Automation tools can reduce picking error rates by up to 67%
• Robotic warehouse automation can reduce costs by up to 30%

How Can the Rapid-Veyor Help?

Fortunately, there is a much more cost-effective solution: the Rapid-Veyor. This is a portable, modular conveyor belt that many companies are using to streamline a variety of warehouse activities while still enjoying the benefits of reduced labor costs and increased productivity.

The Rapid-Veyor is an inexpensive and user-friendly technology that can be implemented quickly (no special training required) and provides immediate results. Though it is considered a more basic automation tool, it can be used in countless ways and has become an important production tool for greenhouses, nurseries, manufacturers, and small businesses. Some of the important benefits include:

• Variable drive placement and speed
• Adjustable length
• Convenience
• Versatility
• Safety

These are features that provide immediate and tangible benefits to your employees, your customers, and your bottom line. In fact, customers have raved about the reduction in labor costs (in one case, up to 75%) as well as the quick ROI.

The benefits of warehouse automation are hard to dispute. But your warehouse may not have the size and budget to fully automate. That’s where the Rapid-Veyor can help. This versatile, convenient tool can help your warehouse meet high consumer demands and stay up to speed — ensuring efficiency and profitability. The Rapid-Veyor is easily implemented with minimal time, effort, and cost. It can help your warehouse meet growing consumer demands while maintaining high standards of quality and customer service. Contact our team for more information. 

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