Warehouse Automation ROI – Pallet Sorting and Replenishment 

by Nate Aswege
June 23, 2022

Automation within the manufacturing industry has gained traction over the last few years, and it makes sense why. Automating warehouses, materials handling, and order fulfillment operations have eliminated errors, minimized fatigue and injury, and accelerated productivity.  

When implemented accurately, warehouse automation can produce positive ramifications and aid in earning a worthwhile return on investment (ROI). Warehouse automation refers to the method and strategy of automating inventory movement in, out, and within a warehouse to different customers with reduced human input.  

Why Opt for Warehouse Automation? 

Businesses have been shifting from traditional warehouses to automated or semi-automated warehouses for reasons like cost savings, increased efficiency, and safety concerns. Before we discuss the benefits of an automated warehouse, we need to understand the shortcomings or restrictions of a traditional warehouse: 

Difficult to Source and Hire Employees 

The industry is facing a downturn, and even with incentives and competitive wages, it’s getting harder and harder to source and hire good employees. The cumbersome nature of working warehouse jobs has turned most people away from cushy jobs and remote working opportunities.  

High Training Cost & High Turnover 

Warehouse managers are consistently finding ways to reduce costs while improving service levels. However, the cost of labor and training of new employees is considerably high. The time it takes for an employee to learn the ropes is the time when your productivity is low. Moreover, when you lose an employee, you increase your turnover cost. The turnover costs include lost warehouse productivity, delayed order delivery, damaged reputation, and unhappy customers.  

High Risk & Chance of Accidents 

Warehouse safety and productivity go hand in hand. One safety hazard can cause lost workforce hours, damaged inventory, and costly machine repairs that eat away at the bottom line. 

Payload For Pallets Is Very Large 

The payload for pallets is vast, and overloaded pallets can be very dangerous. If one pallet breaks, it can spill thousands of dollars of product onto anything that comes in its way nearby. This can cause not only the loss of thousands of dollars and possibly more damage to your reputation but can also become a safety hazard in no time.  Moreover, an overloaded pallet can cause trucks to exceed weight limits, resulting in heavy penalties and product damages during transportation, storage, and handling. 

What is MobilePallet? 

MobilePallet is an automated storage option that can move various products from bulky, heavy loads to lighter loads from point A to point B without human assistance.  Unlike static racking, MobilePallet robots operate via remote control or computer interface and provide easy access to products by forklift or manual picking.   

ROI opportunities using MobilePallet – Reduced Labor Costs & Turnover 

Reducing your labor and turnover costs will automatically help increase your ROI. Using MobilePallet, you can replace picking labor and free up workers to focus on more productive functions. You can also remove the need to expand and train your workforce and remove ongoing labor costs such as healthcare, salary increases, bonuses, payroll taxes, training, etc., by opting for this one-time investment of purchasing a Mobile Pallet.  

Reduce Safety Concerns 

We cannot get rid of human errors. Distraction, lack of motivation, fatigue, emotional distress, hunger, psychological stress, or something else can cause human mistakes. When these mistakes are made while operating heaving machinery, the consequences can be tragic. However, automated robots are immune to these types of work variables.  

When you use MobilePallet, you remove some of these unpredictable human errors by replacing the workers with machines that don’t get distracted or tired. By increasing safety, you can reduce accidents and damages to products, equipment, and structures and thus save yourself thousands of dollars.  

Increased Accuracy, Efficiency, & Productivity 

You can increase the efficiency of operations by eliminating human error from the equation by using mobile pallets. For instance, one pallet delivered to the wrong department can cause confusion, order delay, and even a shutdown of entire order processing until the mistake is fixed. This can cause damages worth hundreds and thousands of dollars. Using mobile pallets, you can remove these inefficiencies, increase your overall accuracy and thus contribute to accelerated productivity and profitability.  

Accelerates Order Fulfillment Process 

Mobile Pallet can help create a clutter-free, organized, and efficient workspace, thereby increasing storage space and giving fast access to storage bays. It is no secret that streamlined workflows can significantly increase productivity, resulting in accelerated order fulfillment. This can help you create a competitive advantage, leading to an increase in customer retention and a boost in sales.  

Boost Customer Loyalty 

Nothing makes a customer happier than receiving their orders sooner than expected. Streamline your operation using mobile pallets, and you can deliver your orders quicker than expected, leading to a satisfied and loyal customer base.  

Improved Working Conditions 

Automating the sorting and replenishment process can relieve your employees from performing repetitive and tedious tasks, allowing them to concentrate on other added value operations. Removing tedious tasks can create a more satisfactory work environment, reducing employee turnover and recruitment costs and allowing you to capitalize on experience and training. 

Handle Fluctuations in Demand 

During holiday seasons and busy periods, you can easily handle fluctuating demands by employing mobile pallets, avoiding the need to hire temporary workers. On the other hand, when demand is low, the automated system is slowed down, thus eliminating the need to lay off employees.  Maximizing profit margins is the primary goal of any warehouse business, and earning a worthwhile ROI can seem like a daily struggle.  

However, choosing the right partner can help you turn this struggle into a strength. Automating the warehouse by implementing mobile pallets for sorting and replenishments can make your business more profitable and seamless. Prime Robotics is your ideal partner to start your automation journey. Here, you can find state-of-the-art robotic automation solutions that best suit your requirements and bring the best out of your business. 

Contact us today to start your automation journey, whether your business is manufacturing, shipping, or E-Commerce focused! 

Prime Robotics