The True Cost of Not Automating

by Laurent Siino

May 15, 2024

Now more than ever, businesses are turning to automation solutions to streamline processes and stay competitive. However, the decision to automate packaging and palletizing jobs isn’t just about embracing new technology—it’s about understanding the true cost of not automating.

In this article, we’ll explore the intricacies of this decision, weighing the advantages and disadvantages of collaborative robotics compared to traditional labor and delving into the essential concept of ROI in the packing, palletizing, and packaging sectors of warehouse and pharma jobs.

The Rise of Collaborative Robotics

Collaborative robots, or cobots, represent a new frontier in manufacturing and logistic industries. Unlike traditional industrial robots that operate behind safety cages, cobots are designed to work alongside human workers, enhancing productivity and safety. With their flexibility and ease of deployment, cobots are revolutionizing tasks like packaging and palletizing, leading to unprecedented efficiency.

Cobots excel at repetitive tasks, performing with speed and precision that human workers may struggle to match. By working seamlessly alongside humans, cobots can boost productivity without compromising quality. Collaborative robots also provide better product handling, with superior precision and consistency and the ability to handle fragile and high-value items.

One of the most significant advantages of cobots is their ability to reduce labor costs. Unlike human workers, cobots don’t require salaries, benefits, or overtime pay. This translates to substantial savings for businesses, especially in the long run. Safety is paramount in any workplace, particularly in environments where heavy lifting and repetitive motions are common. Considering the prevalence of low back pain in warehouse workers Cobots mitigate these risks by handling tasks that could lead to injuries for human workers, thereby creating a safer work environment overall.

Upskilled Employees Are More Likely to Stay with Their Employer

Investing in upskilling initiatives prepares employees for the evolving landscape of automation and fosters a culture of continuous learning and professional development, ultimately enhancing employee satisfaction and retention. Collaborating with cutting-edge robots allows employees to embrace change and learn to interact with new technologies.

Barriers to Entry

Implementing cobots involves a significant upfront investment, including the cost of purchasing and installing the technology. While the long-term benefits may outweigh these initial costs, some businesses may find the financial barrier daunting.

This is why various subsidy and loan programs like the Canada Digital Adoption Program (CDAP) are available. Check with your state or country about options to ease into robotics without the downsides of acquiring new equipment.

Low-Maintenance, High Performance

Like any machinery, cobots require regular maintenance to ensure optimal performance. However, predictive maintenance and spare parts availability prevent downtime from impacting production. Universal Robots offers reliable and low-maintenance robots that minimize any potential risk related to maintenance.

Calculating the ROI of Automation

Determining the return on investment (ROI) of automating logistics jobs is essential for making informed decisions. Businesses should consider labor savings, increased output, and reduced error rates when calculating ROI. Other hidden benefits such as the health and opportunity costs of an injured worker and the cost to acquire and train new hires are often overlooked yet can make or break a decision. While the initial investment may seem daunting, a thorough ROI analysis can reveal the true value of automation over time. Moreover, collaborative robots have a much shorter turnaround time from design to the moment it is up and running compared to industrial robots. This minimizes the risk of missing out on potential savings due to the prolonged implementation periods associated with conventional automation methods.

Overcoming the Sunk Cost Fallacy

In the decision-making process, businesses must guard against the sunk cost fallacy, the tendency to focus on past investments (or lack of investment) in automation rather than future benefits. By looking beyond sunk costs and evaluating the potential long-term gains of automation, businesses can make strategic decisions that drive growth and innovation.

In conclusion, the decision to automate packaging and palletizing jobs isn’t just about embracing new technology—it’s about understanding the cost of not automating. Collaborative robotics offer undeniable advantages, from increased efficiency to improved safety, but businesses must weigh these benefits against the potential challenges. Integrating robotics doesn’t have to be scary – by calculating the ROI of automation and overcoming the sunk cost fallacy, businesses can make informed decisions that propel them toward a more efficient and competitive future.

 

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