Warehouse Automation ROI: Where to Start Without Breaking the Bank

Operations managers can improve throughput, reduce labor costs and set the stage for scalable automation – all within a manageable budget.

Why do many warehouse managers overestimate automation costs?

It’s common for operations leaders to think that “automation” means massive capital outlays and years of integration. In reality, most warehouses can begin affordably by upgrading specific bottlenecks – such as pallet wrapping or pallet transport – where automation delivers measurable payback in months, not years.

According to MHS Lift’s automation specialists, the right starting point is often incremental modernization, not full-scale transformation. By analyzing workflow data and labor spend, companies can identify areas where modest automation yields big returns.

Which automation upgrades deliver the fastest ROI?

1. Automated Stretch Wrappers (Robopac)

Automated and semi-automatic stretch wrappers – like Robopac’s Technoplat and Robot S7 models – reduce film waste and operator fatigue while increasing load consistency.
ROI impact: Facilities often see labor savings of 30-50 % and less product damage on outbound loads. These products are ideal for operations still using manual or semi-manual wrapping stations.

2. Autonomous Mobile Robots (AMRs)

AMRs automate repetitive transport tasks between storage and shipping zones. They can run safely alongside workers and integrate with existing WMS software, making them ideal for warehouses with long travel distances or chronic labor shortages.

ROI impact: Reduces travel time and labor hours; typically a one-to-two-year payback.

3. Dual-Mode Forklifts and AGVs

For facilities already running Crown or Rocla fleets, dual-mode automated forklifts can operate manually or autonomously – perfect for phased rollouts.
ROI impact: Flexibility to automate high-volume shifts without losing manual versatility.

How can you phase automation to stay on budget?

  1. Start with one process – pick the area with the highest repetitive labor.
  2. Pilot a small system – test a stretch wrapper or a single AMR route before scaling.
  3. Measure and prove ROI – track throughput, uptime and labor reduction metrics.
  4. Expand with data – use results to justify the next phase, like conveyor integration or WMS optimization.

MHS Lift’s Integrated Solutions team helps clients evaluate automation readiness, simulate ROI scenarios and install systems without operational disruption.

What are the benefits beyond cost savings?

Affordable automation delivers more than efficiency – it builds a safer, more resilient warehouse.

  • Reduced injuries from repetitive tasks
  • Higher load quality and fewer shipping claims
  • Data visibility via telematics and My Fleet 365 integration
  • Scalability as order volume grows

As one of the Mid-Atlantic’s leading integrators, MHS Lift guides companies through every stage – from layout design to ROI tracking – so automation aligns with both budget and long-term strategy.

Ready to see what automation could save your operation?

Request a warehouse automation assessment from MHS Lift’s Integrated Solutions team. Our experts will model your ROI and design a phased rollout that fits your budget. Give us a call today: (877) 647-9320.