Automation in its many forms can alleviate the pressures associated with SKU growth, offering better cube utilization and pick efficiencies over the manual status quo. As an example, in the near future RMT will be implementing a large gantry, robot-based automated case pick system for a client that, once completed, will occupy approximately 1500 sq. m (approx. 16,000 sq.ft). The manual system it is replacing currently consumes approximately 3550 sq m (38,000 sq.ft), a reduction of approximately 2050 sq m (22,000 sq ft). Aside from the space savings, the system will also process approximately 30% more cases than the current manual system.
Using a conventional approach towards justifying the expense of the automation, most would compare the capital cost for the solution against the current operating costs of the manual operation (people and equipment ). What is missing in the payback equation is the true value of the automation: cost avoidance. If an automated solution was not implemented and the operational status quo maintained, eventually additional floor space and manual labor would have to be added to alleviate the strain on the facility.
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