Calculating ROI for Warehouse Automation

Chad Warzecha interviewed Lori Gibson, Director of Consulting Services at Hy-Tek Intralogistics Consulting, a supply chain operations consultancy that provides clients with cost-effective, service-focused solutions.

The topic of discussion is the best way to calculate ROI for warehouse automation. This is something Lori has been working on for a long time, and it all starts with a technology assessment to determine what kind of automation is right for the situation.

Several factors go into determining the right automation fit. One is capacity constraints, and how that might affect labor costs and the number of employees. Another factor is throughput, and how technology might ease some pain there.

Lori warns against getting excited about shiny, new things. It is critical to carry out a full assessment of your situation before spending money on new technology. The new system that is a game changer for one company may not be a poor fit for another.

Chad and Lori discuss the different factors that go into an ROI calculation and how to make a case for automation to your organization.

#logistics #supplychain #fulfillment #ecommerce #b2c