What level of automation exists, and what level of automation do we need

Automation is essential for staying relevant, competitive, and innovative in today’s technology-driven world. Once accessible only to large companies with significant resources, robotics technology has now become attainable for businesses of all sizes. This technological shift allows any business, whether small or large, to implement robotics solutions, boosting productivity and reducing operating costs over time.

 

Beyond enhancing throughput, robotic automation significantly lowers the risk of disruptions by safely handling accident-prone tasks. Industries such as retail, wholesale, food and beverages, logistics, manufacturing, automotive, chemicals, pharmaceuticals, and healthcare are increasingly adopting automation in their production and warehousing operations—and this is just the beginning.

What level of automation exists, and what level of automation do we need

Assessing Automation Needs

For businesses considering industrial automation, two critical questions arise:

  1. What level of automation currently exists?
  2. What level of automation do we need?

We will address these questions directly, enabling you to make an informed decision about your automation journey.

Levels of automation and who is it ideal for

Level 0 - No Automation

In this stage, there is virtually no automation, and all operations are labor-intensive. Processes rely heavily on traditional paperwork, with only minimal use of data entry software. Decision-making is done on the fly by operators, and daily tasks such as determining the placement and retrieval of goods are managed manually by floor staff. This results in a significant amount of time being spent by team members on moving goods from one place to another, leading to inefficiencies.

Ideal for:

Almost no one.

Level 1 - Systems Automation

Utilizing software solutions like Warehouse Management Systems (WMS) streamlines operations and business processes by providing accurate data and improved tracking. System automation enhances decision-making by efficiently relaying critical information to all stakeholders, leading to increased productivity. However, tasks such as material handling, retrieval, storage, and shelving are still predominantly performed 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

This level of automation leverages equipment designed to enhance the speed and efficiency of horizontal movement, significantly reducing the physical workload on employees. Solutions such as conveyors, picking and sorting systems, and stretch wrap applicators fall into this category. Mechanized automation not only accelerates the overall supply chain but also minimizes the risk of product damage. Its primary focus is on reducing the need for manual labor while boosting the productivity of individual workers.

 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 incorporates automated storage and retrieval systems (AS/RS) to enhance efficiency, minimize travel time, and reduce manual handling. Common solutions include racking systems, conveyor systems, load-handling equipment, and robotic arms. However, these systems are often fixed installations with limited scalability as your business grows. While they automate specific tasks, they cover only a small portion of the overall workflow, leaving end-to-end order fulfillment still largely reliant on human labor.

  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

This advanced level of automation utilizes technologies such as automatic sorters, AGVs, AGCs, mobile robots, automatic palletizers, mini-load systems, and chain or roller conveyors to fully automate end-to-end processes, including loading, unloading, and order fulfillment. At its most advanced, sophisticated automation can achieve “lights-out” operations, where a warehouse or facility runs with virtually no human intervention.

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%

We hope we have given you all the information you need to make an informed decision.
However, if you want to consult an expert, we are here to help.