Complexity, not cost, is the leading challenge when it comes to adopting automation technology in order fulfillment operations, according to research from Interact Analysis.
Automation adoption continues to accelerate in the warehousing space, driven by factors such as labor and skills shortages, increasing customer demand for faster and more accurate deliveries, and space constraints.
However, according to Interact Analysis’ recently published Voice of Market Tracker, complexities associated with deploying automation in logistics facilities are presenting the greatest barrier to adopting automation. Unsurprisingly, financial considerations are also high on the list of obstacles, with budget limitations and high upfront cost ranked at No. 2 and No. 3, respectively.
What’s more, this survey found that those involved in intralogistics cite challenges such as the need to alter layouts, upgrade facilities, integrate automation with existing platforms, or halt operations as deterring them from automating order fulfillment processes.
Findings highlight the importance of automation companies designing products that minimize operational disruption, can be installed into legacy warehouses as well as purpose-built facilities, and are deployed quickly and easily.
Key takeaways:
· While budget and cost were certainly among the top challenges, the complexity of integration ranked No. 1, followed by budget limitations, high upfront cost, and concern around staff capabilities also ranking highly.
· While in aggregate integration complexity came out as the top barrier, the study identifies important differences in how respondents at various company types weight the various factors. For example, integration complexity is a much bigger issue in the parcel segment than it is for retail, where budget limitations far outpace every other barrier.
· Parcel faces the most acute integration complexity issues, while budget is top barrier to automation for manufacturers/producers and for retailers
· Automation is a top strategic priority for 40% of executives.
· Decision-makers are significantly more likely to rate automation as a top strategic priority, indicating that the perceived challenge of convincing management to approve automation projects may be unfounded.
