The introduction of automation solutions in warehouse and logistics processes is a big step towards efficiency and competitiveness for warehouse operators. However, the high initial investments involved pose significant challenges for many companies.
Cost components associated with implementing a fully automated warehouse solution include:
• Procurement and integration of robotics/automation systems
• Installation of IT infrastructure (software and hardware)
• Adaptation and modernization of warehouse infrastructure
• Downtime and disruptions that are unavoidable when integrating into existing structures
• Training employees to work with the new technology
• Ongoing maintenance and service costs for the systems
While these investments lead to significant long-term savings in operating costs and a reduction in labor needs, the payback period is often very long. In many cases, it takes at least four years or more for the initial expenses to pay off. This often exceeds the typical contract terms of 3PL providers.
A real game-changer in this area is NEO with its innovative Pay-Per-Pick billing model. With NEO, the high upfront investments are completely eliminated, as billing is based solely on the actual picks made. Companies only pay for what they use – without having to invest in expensive hardware or long-term installations in advance. Additionally, NEO can be flexibly integrated into existing structures, avoiding further investments. 💡
Another advantage: The onboarding process for NEO is extremely simple and requires only minimal training effort. The system is intuitive and user-friendly, allowing employees to work more efficiently in no time. NEO significantly lowers the barriers for automating existing and new shelving systems and enables rapid scaling – without the risk of long payback periods.