The rise in the popularity of autonomous mobile robots (AMRs) continues to grab the attention of supply chain managers across a multitude of industries. AMRs can boost the efficiency and productivity of order fulfilment operations, but signing up for a fleet is a major investment. Before doing so, it pays to understand how the return on investment (ROI) can be calculated, and the possibility of unforeseen expenses.
Set-up & initial configuration costs
Additional costs come in all sorts of shapes and sizes when undertaking the smooth integration and operation of AMRs into a business’s existing systems. On the one hand, compared to traditional industrial systems like automated guided vehicles (AGVs), AMRs boast a simpler configuration. On the other, it will still take time and effort to get an AMR up and running, which requires manpower to modify and adapt the environment to be compatible with the movement of AMRs. Time and effort will also be needed to create the maps or paths that AMRs rely on for their movement, and subsequent re-mapping to refine the routes for improved efficiency.
Deployment & training
While deployment is generally fast, there is likely to be a period of transition when employees will need time to become confident in operating the AMR. Lack of adequate training or user-unfriendliness of the AMR could lead to deployment delays.
As part of the configuration and deployment, training costs will need to be factored in. If a workforce has had little or no experience in operating robots, it would be wise to factor in greater time as well as training to equip employees with the skillset and know-how in human-robot collaboration and AMR software interfaces.
Reconfiguration costs
Over time, work or project objectives change and as a result AMRs might need to be reconfigured. AMRs that are not easy to reconfigure, or complicated to use, can cause downtimes and additional costs.
ROI benefits of AMR
Understanding the costs of implementing an AMR system is the precursor to any investment decision. This includes everything from initial purchase and deployment to maintenance and the longer-term effects of how AMRs can become a key driver of cost efficiency and overall productivity.
Reduce labour costs
AMRs can reduce labour costs, such as by either replacing a sizeable portion of unskilled labour or by complementing workers to make them more efficient and productive.
Better safety and a lower rate of accidents
While human workers are limited by health and fluctuating energy levels, robots are comparably more consistent, providing they are well maintained. They can improve workplace safety and reduce the number of mistakes in an operation, which has the potential to save costs from damaged equipment and repairs.
Better overall affordability
Compared to conventional automation systems, AMRs are more affordable, and they don’t require big investments to renovate environments and add infrastructure. AMRs have relatively quick deployment, ranging from a few weeks to a few months, and the number of AMRs can be easily scaled up or scaled down depending on the operational need.
Calculating the ROI for your AMR
To calculate the ROI payback period (how many years it would take to recoup the cost of investment in AMRs and begin generating a positive ROI), first calculate the total cost of the AMR investment. This includes the capital cost, implementation cost, and maintenance cost of the purchased AMR fleet, plus the unforeseen costs mentioned above, such as deployment, training, and reconfiguration costs.
In addition, calculate the annual labour savings from the AMR investment. For example, work out the annual wages of a full-time human equivalent that you have reduced or redeployed after the introduction of an AMR solution. Divide the cost of the AMR investment by the annual labour savings to get your estimated ROI payback period.
*This blog article is based on content kindly provided to us by Geek+.
