Automation broadly impacts a company’s performance on both sides of the profit and loss equation. It lowers costs and alters the balance between operational and capital expenditures. The effect of automation on the revenue side has moved to the foreground with the emergence of e-commerce and its need to maintain service level agreements (SLAs) that manual processes cannot guarantee.
Cost Considerations
Labor Costs
The traditional justification for investing in automation is cost reduction, especially direct costs related to labor per shipment or unit of fulfillment throughput. To achieve operational cost efficiency, automation investments include fixed and indirect expenditures associated with capital, equipment ...
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