AMRs in SMBs: now a reality

The needs of warehouses and distribution centers (DCs) are changing and evolving from day to day and season to season. From time to time, they will face elevated order volumes, prompting the need for additional support from the right warehouse technology solution. For many operations, automation is the best solution for peak season challenges, as logistics technology firms have developed a myriad of options. The variety of robots available can outfit facilities with the tools to augment the efforts of their human workers.

Can SMBs afford warehouse flexible automation solutions?

The technical wonders of automation and robotics may seem out of reach for smaller companies, with pricing or information technology (IT) requirements surpassing their available budgets and staffing. While small and medium-sized businesses (SMBs) may perceive these technologies as financially or technologically unattainable, industry leaders argue otherwise.

Smaller operations often assume the only way to manage peak seasons is with the addition of temporary workers and overtime pay. However, it does not have to be this way. For instance, half of our Autonomous Mobile Robot (AMR) customers at Körber Supply Chain are SMBs. Körber offers technology and systems integration services, in partnership with multiple robotics vendors. Körber works with the AMR developers Locus Robotics, Geekplus, Balyo and Fetch.

SMB warehouse software goes beyond automation

For several years now, supply chain tech developers have been designing software tailored to SMBs specifically. Körber supply chain’s software business offers a mid-tier Warehouse Management System (WMS). The arrival of the cloud-based Software-as-a-Service (SaaS) model makes Körber’s scalable and affordable offerings possible by allowing vendors to tailor their products and pricing to users of any size. There is no longer a need for a large upfront capital investment as clients typically pay only for what they use in a monthly subscription fee.

Körber has extended this SaaS offering to their robotics offering – Robotics as a Service (RaaS). RaaS opens the door to businesses of all sizes, allowing customers to take advantage of this type of financing model. This new strategy offers a low cost of entry, manageable annual costs and ROI in under 12 months.

Managing installation and operational disruptions

Now that we have addressed that AMRs are, in fact, becoming increasingly more affordable for SMBs, let’s cover the next elephant in the warehouse – the installation process. The idea of a long and drawn-out implementation phase is a big concern, as many SMBs only operate a handful of DCs. A complete shutdown of the facility to install the new technology is out of the question, as they cannot afford to pause warehouse operations.

What can SMBs do, then?

1. We encourage smaller clients to introduce AMR robots at the same time they upgrade their Warehouse Management System (WMS), reducing implementation time by combining two upgrade cycles into one.

2. SMBs face space and resource constraints when exploring the idea to automate their operations. They must find a way to sustain their growth yet stay in the same building for a few more years. Flexible automation solves this problem, enabling SMBs to do more with less available space.

3. To simplify the transition, a crawl-walk-run progression is recommended, allowing businesses to add automation gradually and demonstrate value before committing fully. Despite limited space and resources, retrofitting existing facilities (brownfield) becomes a viable option.

Preparing for the future

With all new automation developments, it’s natural for SMBs to be hesitant to take the risk. For now, experts are making a continuous effort behind the scenes to demystify robotics. The key is aligning expectations, gaining buy-in from all stakeholders and recognizing the unique challenges faced by smaller operations. Start the first step to optimize your warehouse through mobile robots by talking to one of our experts. Do not be left in the past by failing to invest in your future.

Interested in the underexplored opportunities of AMRs in your small to medium-sized business? Explore the topic more in DC Velocity’s article on the topic.