How Warehouses of All Sizes Can Use Automation to Scale

Growing demands for order fulfillment and rising operational costs can make it challenging for warehouses to stay ahead of the game. Small-scale warehouses often need more resources to implement automation systems.

Robots as a Service (RaaS) is one solution that allows small-scale operations to compete more effectively with larger ones. Below, we share more about how RaaS helps warehouses of all sizes reach their automation goals.

What is Robots as a Service (RaaS)?

Robots as a Service (RaaS) is a subscription-based model that makes automation technology available to businesses of all sizes. Rather than purchasing robots outright, warehouses can use RaaS for monthly or annual fees.

The RaaS model is highly beneficial to smaller-scale warehouses because it eliminates many of the high upfront costs of traditional automation. RaaS providers handle the technology maintenance, updates, and support so warehouses can focus entirely on their operations.

This model is also highly scalable, so warehouses can add or remove robotic systems as needed. Warehouses only pay for their machines, so this flexibility is particularly beneficial for businesses that experience regular peak seasons.

Challenges Warehouses Face with Traditional Automation

There are several reasons why warehouses may find traditional automation challenging or even impossible to implement. Some of these challenges include:

Limited space and resources: Many warehouses are limited in space and equipment, often resulting in bottlenecks and other inefficiencies.
Need for faster fulfillment: Customers expect quick deliveries and accurate order fulfillment, which can be difficult for warehouses to meet during peak seasons without flexible automation solutions.
Labor shortages: Recruiting and retaining skilled workers is becoming increasingly complex, especially for smaller operations.
Rising costs: In addition to labor shortages, rising labor costs are further straining warehouse budgets.
Fluctuating market demands: Warehouses with scalable systems avoid overextending or underutilizing their resources during seasonal peaks or changing market conditions.

RaaS offers the flexibility that warehouses of different sizes need while remaining within a tight budget.

How RaaS Helps Warehouses Use Automation

Affordability and Accessibility

Small-scale warehouse operations often have tight budgets with no room for upfront automation costs. RaaS eliminates many of the high upfront costs associated with conventional automation by offering a subscription-based service. This lower financial barrier allows warehouses to enjoy the benefits of automation without depleting their budget.

Providers that offer RaaS will usually handle the repairs and updates their machines require, so warehouses do not need to worry about unexpected expenses from breakdowns. Their subscription-based pricing allows businesses to manage their budget more effectively without needing an emergency fund for broken equipment. RaaS helps warehouses avoid costly long-term investments since they can stop the subscription anytime or within the limits outlined in the contract.

Scalability and Adaptation

With RaaS, businesses can scale their operations quickly to respond to fluctuating demand. During seasonal peaks, warehouses can increase the number of robots to manage higher order volumes. After this period, they can scale back and remove robots they no longer need, saving money on unused resources.

This flexibility is also great for growing businesses, so they can increase automation as needed without needing significant operation overhaul. As the business budget grows, so can the number of robots rented to keep up with increasing demand.

Additional Integration Tools

One significant benefit of RaaS is its ease of integration with existing systems. This is important for warehouses that need help changing their infrastructure. Though purchased robots can also adapt to workflows, RaaS offers a tailored solution that minimizes disruptions. RaaS contracts often include services such as software updates, training, and other operational adjustments, which are usually extra or unavailable with purchased robots.

RaaS also allows for faster adaptation as technology evolves. While purchasing robots results in warehouses having to sell or retire old equipment, RaaS allows for easier upgrades with minimal cost or effort.

Lower Cost Remote Management

RaaS platforms use advanced cloud-based software for real-time monitoring and management. Warehouse managers can track performance and resolve issues remotely, without needing on-site teams. The difference RaaS brings compared to robots is the handling of technical support. RaaS providers can handle technical support themselves, while purchased robots often require the additional expense of internal IT teams for maintenance and troubleshooting.

Greater Efficiency

Both RaaS and purchased robots improve efficiency in warehouses, but RaaS provides additional upgrades and support that can further improve efficiency. By keeping operations optimized over time, warehouses using RaaS can remain competitive without needing to re-purchase entirely new technology. Plus, the improved scalability RaaS offers keeps warehouses efficient all year long, even during peak seasons.

Lower Upfront Cost

RaaS helps businesses save even more on their budget upfront. Warehouses using RaaS receive all the cost-saving benefits of automation without the full upfront cost of traditional automation. Since maintenance and support are often included in RaaS subscriptions, warehouses save on unexpected equipment breakdowns. Though some businesses may pay more in the long term with a subscription model, this may be worth it depending on your support needs and existing budget.

Final Thoughts

Staying competitive is challenging for warehouses, but Robots as a Service makes it easier. RaaS allows operations of all sizes to scale automation efficiently without the financial burden of traditional automation systems. The affordability and flexibility of this subscription-based model are unmatched, giving businesses a significant advantage in logistics.