Nine out of 10 companies (91%) report an increase in capital expenditure (CapEx) spend on order fulfillment automation over the past year, according to new research from Interact Analysis.
In fact, more than half of those investing more during the previous 12 months increased their spend by 6%-15%. Further investment is planned for the future, with 95% of survey respondents anticipating an increase during the coming year.
“Asking the right questions can enable suppliers of order fulfilment automation to incorporate a broader set of criteria (standardization, accuracy, demand flexibility, multi-shift operation) or factors can be weighted differently when suppliers partner with potential clients to truly understand the current operation and future needs,” says Monica Sanchez, senior research lead for the Voice of Market report at Interact Analysis.
Interact Analysis
Key takeaways:
· Return on investment (ROI) expectations are also rising, with 61% of respondents now expecting ROI from order fulfilment automation within 12 months. However, as CapEx grows, automation customers are willing to be more flexible about the criteria they consider when calculating ROI.
· Facility automation is rapidly becoming a key priority for companies. Approximately 40% of respondents stated “facility automation“ is a top strategic priority, with decision-makers almost twice as likely to do so (50%) than influencers (29%). Respondents are reporting a decreasing reliance on labor due to high costs, shortages, and recruitment challenges, especially for processes with low “added value“ and high “repetitive stress or injury.“
