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Is automation beneficial for warehouse?

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Posts: 19
 Nic
(@quan)
Active Member
Joined: 4 years ago

This is because of the difficulty in justification. Typical 3PL contracts with customers are 2-3 years. After the contract ends, the customer can either re-contract with another 2-3 years or change the service provider.

If the automation is expensive and requires a long period to depreciate (more than the 1st contractual period), then it may be challenging to convince the management on the investment.

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WarehouseBlueprint
Posts: 62
(@michael)
Trusted Member
Joined: 7 years ago

Agreed. Additionally, after the contractual period is over, if there is a change in customer for the same space, the automation installed may not be suitable. Dismantling of the machine may incur additional cost, time and effort.

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