Level 0 - No Automation

There is basically no automation here, and all operations are labor-intensive. Everything runs through traditional paperwork and minimal use of data entry software. Operators do decision-making on the go, and people on the floor decide what goes where on a day-to-day basis.
A lot of time is spent on storage & retrieval of goods from one place to another by the team members

Ideal for–
Pretty much no one.

Level 1 - Systems Automation

System automation with the help of software solutions such as Warehouse ManagementSystem (WMS) makes operations and business processes more streamlined with accurate data and enhanced tracking. System automation helps in the decision-making process, and the information is relayed to everyone involved efficiently to increase productivity. However, material handling, retrieving, storing, shelving, etc., is still mostly done by human labor.

Ideal for-

• Businesses that are looking to transform their day-to-day operations and improve decision-making processes
• Businesses that are looking to get an effective ROI within 6-12 months
• Businesses that can spend $5000-$50000 on automation.

System automation can increase your labor utilization by 10-40%

Level 2 - Mechanized Automation

Mechanized automation makes use of solutions that support swift horizontal movement and reduce labor workload. Such solutions can be conveyors, picking and sorting equipment, stretch wrap applicators, etc. These solutions reduce the chance of product damages and speed up the supply chain as a whole. Mechanized automation is mainly focused on displacing physical labor and increasing individual labor productivity.

Ideal for-

• Businesses that are looking to reduce their labor costs
• Businesses that are looking to get an effective ROI within 1-2 years.
• Businesses that can spend $50000-$1M on automation.

Mechanized automation can reduce staffing by 10-30%

Level 3 - Semi-Automation

Semi-automation uses automated storage and retrieval systems (AS/RS) to boost efficiency, minimize travel, and reduce manual handling. These solutions are typically racking systems, conveyor systems, load-handling systems, robotic arms, etc. Most of these installations are fixed with a low possibility of scaling when your business grows. These solutions can only automate a small portion of the task. Hence, end-to-end order fulfillment is still largely dependent on humans

Ideal for-

• Businesses that are looking to optimize their supply chain significantly.
• Businesses that are looking to get an effective ROI within 3-4 years.
• Businesses that can spend $1M-$5M on automation.

Semi-automation can reduce the time spent walking by up to 40%.

Level 4 - Sophisticated Automation

Sophisticated automation involves using automatic sorters, AGVs, AGCs, mobile robots, automatic palletizers, mini-load systems, chain or roller conveyors, etc., to automate end-to-end loading, unloading, and order fulfillment. At the highest level, Sophisticated automation can potentially be a “lights-out automation,” which means virtually no human intervention is required to run a warehouse or a facility.

Ideal for-

• Businesses that are looking to operate their warehouse/facilities with maximum efficiency in terms of time, cost, and human resources
• Businesses that are looking to get an effective ROI within 5-10 years.
• Businesses that can spend $5M or more on automation.

Sophisticated automation increase inventory accuracy up to 99% and warehouse utilization by 10-40%