The five greatest benefits of warehouse automation

While many are aware that warehouse automation can help reduce costs, the benefits go far beyond just financial gain.

A man picks orders from an AutoStore port.

As the trend towards warehouse automation continues to grow, an increasing number of companies are weighing the benefits of automation for their own operations. But what exactly are those benefits, and why should your business consider implementing warehouse automation?

Our customers report these five main benefits from warehouse automation with AutoStore:

  • Magnified storage capacity
  • Exceptional customer experiences
  • Elimination of errors
  • Reduced cost per transaction
  • Ergonomic workplace creates happier employees

Magnified storage capacity

Warehouse automation solutions, like AutoStore, save you space by storing items vertically, making your warehouse compact and more spacious at the same time.

Instead of storing goods on shelves with aisles on each side for workers to walk and pick the goods, an AutoStore is as compact as it gets. An AutoStore solution stacks bins in a grid pattern, with robots positioned above to pick and transport goods directly to warehouse workers.

An AutoStore solution delivered by Element Logic makes your warehouse a lot more space efficient – saving up to 80 per cent of your available floor space. This way, you can reduce costs by either moving to a smaller warehouse or renting out the extra warehouse space you have freed up by automating.

By implementing space-saving solutions like warehouse automation, you can expand your operations and increase storage capacity within your existing facility, potentially saving on costs associated with moving to a larger warehouse.

Exceptional customer experiences

Customer satisfaction is key for all companies. Businesses in the eCommerce industry face especially high expectations from their customers, who often demand their orders delivered within just a few days.

Delivering the right product on time is crucial to achieve satisfied and loyal customers, who then spread the word about their good customer experience from your services.

You save money and time on eliminating unsatisfied customers complaining to your customer service, cancelling orders if it is late, or spread negative reviews of your services to others.

Eliminate errors

Another benefit of warehouse automation is being able to process returns swiftly and giving customers their money back within a reasonable timeframe.

You can also expect savings from nearly eliminating picking errors and avoiding cancellations.

Reduced cost per transaction

By automating, you increase your productivity and efficiency immensely compared to a manual warehouse.

What this efficiency equals to in hourly rates differs from company to company depending on the flow of goods, order processes and complementary automation. The financial gain depends on whether you pick order by order or batch pick, and whether connected systems like labelling and conveying systems are manual or automated.

A man uses a touch screen to complete orders in an AutoStore system.
REDUCED COSTS: Warehouse automation reduces the cost per transaction, while saving money on yearly salaries, seasonal workers, overtime work and recruitment resources.

Ergonomic workplace creates happier employees

Workers in a manual warehouse walk long distances up and down aisles throughout their workday, doing heavy lifts and straining their body.

With an AutoStore solution, the workers are put through less strain and do not have to walk as much, decreasing the chance of work-related injuries. The value of healthy and happy employees does not only affect the work environment, but it also helps you save on sick leave costs and costs related to substitutes.

Read more about benefits to automating your warehouse in our whitepaper  “Warehouse automation: Cost versus Benefit – Calculate your ROI with Element Logic”.

Element Logic has its own design and consulting team with expertise in designing tailor made solutions to fit your needs. If you want to know more, get in touch with us today.

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