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Offsetting the cost of automation

Nov 25, 2024

We understand that you are constantly seeking ways to improve operational efficiency and reduce costs. So why would you want to invest in automation?

One of the most effective strategies is the implementation of automation. While the initial investment may seem significant, the long-term benefits far outweigh the costs, particularly when you consider the areas where savings can be realised. At CSL Automation, we not only specialise in designing, installing, and maintaining automation and conveyor systems, but also in helping our clients understand how automation can offset costs in several key areas.

CSL engineers testing roller lift up gate during system commissioning
  1. Reduced labour costs

One of the most significant areas of savings comes from the reduction in labour costs. Manual tasks that once required large teams can be automated, allowing businesses to reallocate their workforce to more skilled or strategic positions. Not only does this reduce the need for a large workforce, but it also minimises the associated costs, such as:

  • Wages / company contributions
  • Training / onboarding
  • Health and safety risks
  • Overtime and shift differentials
  • Dealing with holiday and illness issues/cover

Automation provides consistency in performance without breaks, fatigue, or the need for additional compensation, resulting in a streamlined workforce that focuses on higher-level operations rather than repetitive tasks.

  1. Fewer complaints and quality issues

Human error is a common cause of complaints and quality issues in manual operations. Even the most diligent worker can make mistakes that lead to customer dissatisfaction, product returns, or even damage to the business’s reputation. By implementing automated systems, you can expect:

  • Increased accuracy and precision: Intelligent automation such as pick to light systems perform tasks exactly as programmed, ensuring that every product is handled accurately.
  • Reduction in defects: Automated systems such as scanners and check weighers provide quality control mechanisms that detect and address defects immediately, preventing issues from escalating.
  • Consistent performance: Automation ensures consistent output and service levels, reducing variability and providing customers with a reliable experience.

The reduction in complaints not only boosts customer satisfaction but also reduces the time, money, and effort spent on resolving issues, from product returns to damage control.

  1. Lower material handling equipment costs

Forklifts, manual pallet lifters, and other non-automated equipment, often incurs significant operational and maintenance costs. With the integration of automation systems, many of these machines become redundant or are used far less frequently. The benefits here include:

  • Reduced maintenance and repair costs
  • Lower capital expenditure on MHE
  • Increased space efficiency

 

  1. Improved operational efficiency and throughput

Automation also dramatically improves throughput by increasing the speed and efficiency of operations. Automated systems are able to run 24/7 without the need for breaks, holidays, or shifts, providing a continual flow of goods and services. This increased operational efficiency can help companies meet higher demand without the need to expand their workforce or equipment, further reducing long-term costs.

  1. Energy savings and environmental impact

With automation, many businesses see reductions in energy consumption. Automated systems are often designed to be energy efficient, reducing power usage compared to older, less efficient machinery or powered MHE. Moreover, with fewer mistakes, less product damage, and reduced waste, automation can help businesses meet sustainability goals, ultimately saving on material costs and helping maintain environmental compliance.

Conveyor units roller bend in online hardware fulfilment centre order picking line

At CSL Automation, we work with businesses to not only design and implement automation systems but also to help them understand the long-term financial benefits. By offsetting the initial cost of automation with the savings in labour, reduced complaints, lower MHE expenses, and improved efficiency, businesses can achieve faster ROI and maintain a competitive edge.

Are you ready to discover how automation can transform your operations? Contact us today for a 10 minute initial discussion at [email protected] or call 01283 55 22 55 to learn more.

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