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Cost Avoidance for Lean Operations

October 03, 2012

The economic realities of the past few years have forced most companies to make cuts, frequently in personnel headcount, to accommodate the downturn in business as they fought hard to survive. Indeed, many facilities—including manufacturers, warehouses and distribution centers—find themselves today to be as lean as possible, even as business has slowly begun to pick up. Yet, there remains a reluctance to increase staffing in order to support that slow growth.

One answer to this dilemma can be found in the implementation of process automation, specifically via automated storage and retrieval systems that can simultaneously save floor space while boosting employee productivity. Because an investment in any automation technology can require significant capital, it’s important to validate that expenditure through a series of calculations to justify the cost.

This white paper will demonstrate how to calculate your return on investment in automated storage and retrieval equipment as a means to accommodate slow growth in an already lean organization, as well as detail examples of potential areas of cost avoidance that can be addressed by its implementation.

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