Rewriting the Rules of Warehouse ROI

Rewriting the Rules of Warehouse ROI Main Photo

24 Jun 2025


News

In my decades of experience providing supply chain network design and operations design, I've repeatedly encountered one major challenge that businesses struggle to overcome: balancing the high cost of automation with the pressure to improve productivity, capacity, accuracy, safety and speed, particularly in distribution operations.

Automation's appeal is clear — companies seek lower cost, faster fulfillment, lower error rates, improved worker safety, and reduced reliance on increasingly scarce labor pools. Yet, implementing automation has historically been prohibitively expensive, causing even sophisticated operations to scale back ambitious plans due to financial constraints. In many cases, companies face sticker shock when presented with a comprehensive automation solution costing tens of millions of dollars, leading them to settle for less-than-ideal compromises.

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