Financial metrics and business continuity

Automation provides substantial financial returns by reducing operational costs and increasing productivity and accuracy. Automated systems streamline processes and can often work 24/7 365 days a year, leading to significant labour savings and throughput increases.

However, the conversation around ROI has expanded to include business continuity. With automation, businesses can maintain operations even during disruptions, such as labour shortages or global crises. This aspect of ROI has become increasingly important as companies seek to build resilient and agile operations.

Labour savings and reliability

One of the most significant advantages of automation is the reduction in labour reliance. Automated systems can operate with fewer employees, making it easier to manage and maintain facilities. This is particularly beneficial during peak periods or in response to unexpected events. For instance, running a facility with five employees instead of fifty allows for greater flexibility and reliability. This has become increasingly important in Western Europe, which has faced challenges with labour shortages and high turnover in recent years, as well as the ongoing issue of an aging workforce.

Enhanced customer service

Speed and customer service are other critical factors in the ROI equation. Automated systems enable faster order fulfillment, allowing businesses to meet customer demands promptly. This is especially important in industries like eCommerce, where timely delivery is crucial, and is often a competitive differentiator. Automation also enhances the overall customer experience by ensuring orders are accurate and delivered on time. This level of service can significantly impact customer loyalty and repeat business.

Mitigating risks in automation

Even with its many benefits, implementing an automated system still involves inherent risks — primarily at the design stage. Success hinges on getting the data right upfront and understanding the idiosyncrasies of the business. This requires a thorough risk analysis and the involvement of all stakeholders, including builders, fire authorities, and warehouse management system (WMS) providers, just to name a few.

Service and support agreements

Robust service and support agreements are crucial for maintaining automated systems. These agreements ensure that systems are regularly maintained and supported by experienced technicians.

There are two main types of service agreements: residential and field service. Residential agreements involve having dedicated technicians on-site, while field service agreements provide on-call support. Both types of agreements help minimise downtime and ensure continuous operation of automated systems.

Intelligent redundancy

Redundancy in automated systems is another important aspect of risk mitigation. Traditionally, redundancy meant having backup equipment sitting idle. However, modern approaches involve the intelligent deployment of redundancy, where additional capacity is built into the system. This allows businesses to handle disruptions and unexpected increases in demand effectively and seamlessly. Designing systems with built-in redundancy ensures greater flexibility and resilience.

Maintaining spare parts inventory

Maintaining a spare parts inventory is essential for minimising downtime. Having spare parts on-site allows for quick replacement of faulty components, reducing the time required to resume operations. This proactive approach ensures businesses can continue operating smoothly even when equipment fails.

The timeline for automation implementation

The timeline for implementing an automated system varies based on the solution and the complexity of the project. The process typically involves several phases, starting with the pre-contract stage. This stage can take considerable time as it involves meticulous planning and stakeholder engagement. Early engagement with automation providers is crucial to realising the benefits sooner and maximising ROI. The implementation phase can typically span 12 to 24 months, depending on the project's scale, with a strong emphasis on getting the design right from the outset.

Change management

Introducing automation represents a significant change for any business. Supervisory staff play a crucial role in the success of an automation project. These are often long-standing employees who are accustomed to traditional processes. Introducing new technology can be challenging for them. Engaging supervisory staff early in the process and involving them in the design and implementation phases can help overcome resistance to change. Providing adequate training and support is essential to ensure they can effectively manage the new automated system.

A train-the-trainer approach can be highly effective in managing change. By training a select group of employees, businesses can ensure that these individuals become experts in the new system and can train others. This approach fosters a sense of ownership and engagement among employees, making the transition to automation smoother. It is vital that there’s a number of trainers in the event any leave the organisation, to ensure continuity of optimal system and operator management.

Designing for future growth

Businesses are dynamic, and their needs can change over time. Designing automated systems with flexibility and adaptability in mind is crucial. This includes designing automated systems with future growth in mind and involves understanding the business's growth projections and designing the system to accommodate these changes. The latest range of automated systems are modular in design and allow for easy expansion, enabling businesses to scale their operations as needed.  and ensure their automated systems remain relevant and efficient in the long term.

Accommodating changes in order profiles

Businesses often experience changes in order profiles and product mixes. Designing systems that can handle these changes is crucial. Some automated systems are more suited to handling throughput growth, while others are better at accommodating an increase in stock keeping units (SKUs). Other solutions can offer the benefits of both. By understanding the business's needs and designing flexible systems, companies can ensure their automated systems can adapt to changing requirements.

Innovation vs. proven technology

Businesses must decide whether they want to be early adopters of new technology or implement proven solutions. Early adopters can gain competitive advantage by implementing cutting-edge technology, but this comes with higher risks. On the other hand, businesses that prefer proven technology can rely on established solutions with a track record of success. Understanding the business's appetite for risk and innovation is essential in making this decision.

Choosing the right partner for automation

Choosing the right partner is critical, whether it's for pioneering new automation methods or implementing tried-and-tested systems. A reliable partner should demonstrate a history of managing innovation and provide local references to showcase their capabilities, ideally backed by site visits so companies evaluating automation can hear first-hand from automation users the benefits they’ve realised, their experiences and learnings in implementing automation.

As automation continues to reshape the supply chain industry, Dematic remains at the forefront, offering solutions that enhance efficiency, resilience, and flexibility. By addressing key questions and challenges, we aim to empower businesses to navigate the complexities of automation and achieve their operational goals.