The Importance of Evaluation Criteria for Investment in Warehouse Automation Systems

A recent study by Peerless Research Group (PRG) has revealed the main factors that companies consider when evaluating warehouse automation systems. In this article, we will analyze the changes in the importance of these criteria between 2022 and 2023, based on the data presented in this comparative graph.

Durability / Reliability / Uptime

In 2023, durability, reliability, and uptime continue to be the most important criteria, with a percentage of 92%, compared to 86% in 2022. This highlights the need for systems that operate consistently and efficiently, minimizing downtime and maximizing productivity. Any system downtime can lead to costly delays and negatively impact the overall performance of the warehouse. According to experts, the integration of predictive maintenance, based on sensors and real-time data, can prevent equipment failures and optimize operations, thus ensuring maximum uptime.

Total cost of ownership / ROI / Maintenance costs

The importance of total cost of ownership, return on investment (ROI), and maintenance costs decreased slightly from 86% in 2022 to 82% in 2023. This indicates an adaptation of companies to the costs involved in automation. Companies are looking for solutions that offer long-term value and integrate efficiently into their budgets, so the initial purchase costs, as well as the ongoing maintenance and operating costs, are critical factors in decision-making. As automation becomes more accessible, companies can see an increase in ROI by reducing operating costs and improving warehouse efficiency.

Technical Support and Service Response Time

This remains a crucial criterion for investors, with a slight increase from 79% in 2022 to 81% in 2023. The continued need for fast and efficient support in case of technical problems is evident. Preventive/corrective maintenance is essential to minimize downtime and ensure optimal system performance to prevent significant losses.

Parts availability / Risk of Obsolescence

The importance of this criterion increased significantly from 66% in 2022 to 74% in 2023. This indicates a growing concern for maintaining and updating industrial automation equipment. Advanced technologies, such as IoT and AI, can help monitor and manage the spare parts inventory, reducing the risk of obsolescence.

Integration / Compatibility with Existing Equipment

These are considered less important in 2023 (64%) compared to 2022 (69%). This aspect may suggest an increase in confidence in new automation solutions that offer extensive compatibility and interconnectivity through modern technologies, although a large part of companies still prefer solutions that can be easily integrated with their current infrastructure, thus avoiding additional costs and disruption of operations.

Purchase Price

This factor remained important in 2023, with a small increase from 58% in 2022 to 59% in 2023. Although it is not the most important aspect, companies must balance the initial cost with the long-term benefits of automation. The purchase price is only part of the total cost of ownership. Installation, maintenance, operation, and upgrade costs must also be considered. A more expensive system could have a lower total cost of ownership if it has lower operating costs or requires less maintenance.

Scalability

It is considered equally important in 2023 (56%) compared to 2022 (56%), suggesting a possible stabilization of the needs for expanding automation systems, although most companies investing in automation still want systems that can be adapted and expanded as their business grows, thus ensuring that their investment remains relevant and efficient in the long run. Cost optimization, maintaining competitiveness, and managing risks in a dynamic and unpredictable business environment are the main pro-scalability arguments.

Warranty Program

The importance of the warranty program decreased from 58% in 2022 to 55% in 2023, indicating increased confidence in the initial reliability of automation products. However, a solid warranty program remains essential to ensure continuity of operations and minimize long-term financial risks, giving companies the confidence that their investment is protected and that the supplier will provide support in the event of unforeseen problems.

Turnkey Solutions

Being one of EUROFIT’s strengths, it is necessary to mention that the importance of turnkey solutions increased slightly from 45% in 2022 to 48% in 2023, reflecting a preference for complete and integrated solutions that simplify the implementation and use of implemented systems. These are appreciated for their ease of installation and extensive compatibility with various equipment. Contact our specialists for turnkey solutions for warehouses and commercial spaces.

Innovation / Leading edge solutions

Being as important in 2023 as in the previous year, with a percentage of 35% in investor preferences, innovation represents a current requirement for advanced technologies that bring added competitiveness. The integration of artificial intelligence and machine learning in automation processes allows companies to optimize logistics processes and reduce time lost due to system downtime. Companies that want the status of leader in their field are looking for solutions that incorporate the latest technologies, offering them a real competitive advantage.

Relationship / Past experience with vendor, provider

The importance of the relationship and previous experience with the supplier decreased slightly from 34% in 2022 to 31% in 2023, indicating a greater openness to new suppliers and innovative solutions. But a solid relationship with the supplier can bring significant benefits in terms of technical support and adaptability of solutions in the long term. A good relationship and a positive previous experience are very important to build trust, influencing the purchase decision.

Green / Environmentally friendly / Energy efficiency

Although the criterion of environmental friendliness and energy efficiency decreased slightly in importance from 24% in 2022 to 21% in 2023, current trends in automation show an increased interest in sustainable production practices and reducing energy consumption. As companies become more aware of the impact of their activities on the environment, it is likely that this criterion will become increasingly relevant in making decisions to invest in automation.

Conclusions

The evaluation of warehouse automation solutions for purchase continues to be governed by criteria such as durability, cost, and technical support, while other aspects such as scalability and system integration show variations in importance from one year to the next. This reflects an adaptation of companies to the specific needs and challenges of each year while maintaining a focus on reliability and efficiency.

EUROFIT remains one of the main providers of complete solutions for warehouse automation, of which we can mention advanced systems such as Intelligent High-Density 3D Shuttle, Stacker Crane, AMR (Autonomous Mobile Robots), Shuttle, AutoStore, Vertimag, Conveyors, Sorters, A-Frame or Automatic palletizing and depalletizing systems, including Mobile pallet racking.

For more information and automation solutions adapted to the needs of your business, we invite you to explore our website depozitautomatizat.ro or to contact our specialists, in the Contact section.