Subscribe to our free, weekly email newsletter!



Building the Business Case for Automation: How to Evaluate Automation Investments

October 10, 2012

Benefits beyond pure dollars and cents are needed to drive the investment request across the finish line. Gaining authorization to invest in distribution center improvements, including automation, is a challenging endeavor in most organizations.

Overall economic conditions, along with individual business concerns such as availability of capital, competing capital projects and myriad obstacles potentially stand in the way. Given many immediate obstacles to obtaining investment approval, the development of a sound, thorough business case is essential for the distribution operations management team who wants to move his project forward successfully.

Reasons commonly cited for rejecting or delaying investments to substantially improve DC operations include:

  • Prioritization of capital toward top line growth, e.g., manufacturing capacity expansion, new product development, sales and marketing initiatives, etc.

  • Concern about temporary decline in sales or reduction in sales growth due to competitive pressures and/or economic conditions

  • Limited availability of capital due to recent business conditions

  • Unwillingness to put capital at risk due to an unfavorable regulatory climate

image

 

Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Supply chain visibility is the Holy Grail for warehouses and distribution centers where the fast and efficient movement of goods is the solution to satisfying customer demand. This is especially true for the 68% of companies which are not satisfied with material movement efficiency from source to destination. These companies are seeking new ways to get the right goods to the right place at the right time. They are finding that change, complexity, compliance, competition, and connectivity are leading to further confusion.

Instead of ignoring a forklift fleet and its associated costs, asking the right questions can lead to substantial savings.

This white paper outlines five ways to increase profits with automation. By implementing automated storage and retrieval equipment-such as horizontal carousels, vertical carousels and vertical lift modules, multiple areas of a manufacturing or distribution facility will benefit from savings in inventory accessibility, floor space, time, improved ergonomics and better accuracy.

Citing difficult winter weather, executives anticipate the release of pent-up demand.

First edition takes place in Nairobi, Kenya, Sept. 9-12, 2014.



© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA