Will the robot take over in the end? This is still an open question, but if pure ability is standard, the answer is certain – yes. Robots can already do almost anything humans can do – no less than Bill Gates describes its functionality as “infinite” characters – they are still in their infancy. For businesses, robots mean efficiency and lower costs, especially in factories, warehouses and other facilities that require a lot of manual labor; at least that’s how they perceive.
However, managers often think that replacing labor with robots results in zero dollars per hour of employees working – can work 24/7 if needed. While robots, as well as other autonomous and automated mobile devices (AMRS and AGVs), as well as vehicles and forklifts, the idea is that the return on investment should be large given the reduction in the labor costs of their replacement.
But this is not necessarily true; many managers are not fully aware of or do not have enough weight, i.e. robots and automated mobile devices come with their own expenses, some are direct and some are hidden. There are some hidden costs that managers often don’t consider, but should include downtime of robots, computer upgrades to manage fleets, storage space lost or production space, and even traffic congestion.
Insufficient downtime
Robots and automated mobile devices run on batteries – these batteries need to be charged. Charging time depends on the size of the robot or vehicle, but probably 20% of the time it should run. Additionally, the data suggest that other issues often reduce bots by another 12% of the time, meaning many bots may be offline and managers expect them to work properly. This downtime needs to be reflected when calculating the ROI – when the job cannot be done.
In addition to downtime, small interruptions or errors in the engineering cycle can lead to other inefficiencies in the automatic robot fleet. For example, in many warehouses, picking is done by robots, while packaging and order verification is done by humans. If the robot fails to pick and transport items to the packaging area, or brings the wrong items, the worker will be unable to complete the order, and the entire system is often suspended, triggering a chain reaction of delayed and idle robot time. And if the company promises to ship on the same day, many online sites require suppliers to do, which can cause a ripple effect for disappointed customers and lose business.
Expanding fleet means expanding budget
To compensate for the downtime required by most robots, many warehouses or factories have backup fleets – up to 35% of robots or machines for you to use your leisure time for charging and maintenance downtime. The additional charges for these additional charges include additional maintenance and battery replacement (once a year). However, one cost that is impossible to consider is the need for a more powerful server to control other robots or machines. This may require a substantial investment in new hardware and software – this fee will certainly affect ROI calculations.
Additionally, additional robots may require more maintenance than expected. Idle robots will experience other maintenance issues such as lubrication degradation, drainage backup batteries, dust accumulation in sensors, and motion problems. If the robot is inactive for up to 20% of the time – as with many times – it may mean a corresponding increase in additional maintenance costs to deal with these issues related to periods of long-term inactivity
Don’t forget to think about lost space
Robots require power, in standard warehouse and factory settings, which means allocating space for chargers and docking stations, usually 10 square feet per charger or more. This extra real estate space costs money – both in rental costs, land purchases and real estate taxes – these fees need to be included when calculating the ROI. This also assumes that even space can be added. While this is unlikely to be a problem in large distribution centers that are often far from town, it can be a major problem for companies that already have smaller warehouses in cities and suburbs that can better accommodate the same-day delivery. In any case, when the space is occupied by a charger or docking station, it cannot be used for other purposes and can prevent the ability to expand or expand.
More charging space means less space for goods – which means bringing more shipping costs to distribution centers to urban and suburban warehouses, more waiting time to achieve orders, and more inventory and tracking issues. This can also lead to missed or incorrect orders – as well as another dark eye with the customer. One solution is to expand the warehouse to compensate for the extra space required; the other is to add vertical shelves to accommodate more merchandise if there is no floor space. But these solutions also cost money – meaning ROI could take a big hit.
Robot traffic congestion is a real risk
There are more robots on the floor of a factory or warehouse, and they may collide with each other or with human workers. These collisions can cause damage, injury and other major problems. When robots conflict with each other, they may need to be repaired, increase maintenance costs, and cause the facility to become more efficient because now it does not have enough robots to cover charge time. And, if a robot attacks a human, the victim may sue – so the facility needs to increase its insurance to cover potential losses. Managers can choose collision detection systems, but these systems also cost money. Although most facility managers are unlikely to consider them, these factors can seriously undermine the ROI estimate.
Obviously, the return on investment of robots is not an easy thing. Those who take the big picture into account and include all of these hidden costs may indeed be disappointed or delayed in automated warehouses. However, there are ways to offset these costs further and increase the ROI. AI shows hope for solving robot traffic jams, but when facilities need to add additional robots to compensate for charged downtime, algorithms need to be adjusted – this may again require software or hardware upgrades, or hire AI experts to change the controller system.
One promising solution to some of these problems is that innovative charging methods reduce or even eliminate the need for downtime. For example, these methods, such as making robots charge during work, can reduce the need for fleets of backup robots and solve some challenges related to idle time, crowded work floors or warehouses, waiting for robots to complete tasks, losing their tasks, losing space for charging docks and fees associated with controlled fleets.
Experts believe that automation is indeed the future. The number of fully automatic warehouses in the United States has steadily increased by nearly a decade. In addition, logistics and warehouse personnel are becoming increasingly difficult to find, and same-day delivery increases the need for reliable staff. This automation trend may continue, especially with more solutions to charging, robot downtime and traffic congestion issues and addressing logistics, making the automation’s true ROI more attractive. However, before that, facility managers and owners need to consider the hidden costs of automation and make sure they are accurately put into the ROI figures. Automation can really benefit the bottom line of an organization – if you know what it is entering and you can control hidden costs.
