Throughout industries today, everyone is speaking about automation, and a key buzzword is “AGVs” or Automated Guided Vehicles. But as a company, how can you determine if moving to an AGV is necessary?

Let’s look at the signs your facility might be ready to consider automation, and particularly an AGV.

Automated Guided Vehicles

AGVs are no longer just a futuristic concept; they are essential to modern warehouse operations. With their ability to increase efficiency, reduce costs, improve safety, and scale with business growth, AGVs represent a key technology driving the transformation of warehouses into highly automated, intelligent environments. As technology advances and the need for faster, more flexible supply chains grows, AGVs will continue to play a pivotal role in shaping the future of warehousing and logistics.

Here are some signs that indicate it might be time to consider implementing AGVs in your company’s operations:

1. High Labor Costs in Repetitive Tasks
Suppose your warehouse or facility relies heavily on human workers for repetitive and physically demanding tasks, such as transporting materials, moving pallets, or restocking inventory. In that case, AGVs can help reduce labor costs. By automating these tasks, AGVs can operate continuously without breaks, shift changes, or overtime, freeing up employees for more strategic, value-added work. If labor costs are increasing due to the need for more staff or higher wages, AGVs can provide a long-term solution that reduces reliance on human labor for routine tasks.

2. Safety Concerns or High Risk of Accidents
Warehouses can be hazardous environments, with forklifts, pallet trucks, and other equipment constantly in motion. If your company has experienced frequent accidents or near-misses due to human error, the introduction of AGVs has been shown to help significantly reduce OSHA-related accidents. These vehicles are designed with built-in sensors and safety features that allow them to navigate autonomously and avoid collisions with obstacles or people. If improving safety is a top priority, AGVs are worth a look.

3. Warehouse Space Constraints
Space optimization becomes a critical concern as warehouses become busier and inventory volumes grow. Traditional warehouse layouts often require wide aisles for human-operated vehicles to pass through. AGVs, especially those designed for narrow aisles, can operate in tight spaces, allowing for more compact shelving systems. If your company is facing constraints in warehouse space or struggling to optimize its storage capacity, AGVs can improve space utilization and increase storage density. Additionally, Raymond’s auto-swing reach truck interacts with Radioshuttle and raises warehouse space to the highest capacity.

4. Slow or Inefficient Material Handling Processes
If your material handling processes involve excessive manual labor or create bottlenecks in your workflow, AGVs can help streamline operations. They can transport materials between different warehouse areas reliably, reducing the time spent on tasks like moving goods from receiving areas to storage or from storage to picking locations. If your company’s workflow is suffering from inefficiencies, implementing AGVs can increase your operations’ efficiency and reliability.

5. Complex or High-Volume Order Fulfillment
For companies with high volumes of orders or complex order fulfillment processes (e.g., multi-order picking, large-scale sorting), AGVs can significantly enhance productivity and accuracy. These vehicles can transport goods to picking stations, carry items between shelves, and even deliver completed orders to packaging or shipping areas. AGVs can also work alongside other automated systems, such as robotic arms or conveyors, to create a fully automated fulfillment system. If your order fulfillment is time-consuming, prone to errors, or difficult to scale, AGVs could significantly improve throughput and accuracy.

6. Difficulty Scaling Operations
Suppose your business is experiencing rapid growth and struggling to scale your operations effectively. In that case, AGVs can provide the flexibility needed to expand without a proportional increase in labor or overhead costs. AGVs can be easily reprogrammed and adapted to handle different tasks or workflows as business needs change. Whether your company is growing in volume, product variety, or geographic reach, AGVs can scale with your operations and ensure that material handling remains efficient, even as demand fluctuates.

7. Increased Customer Expectations for Faster Deliveries
The rise in e-commerce and customer demands for faster delivery times has pushed many warehouses to operate at higher speeds and with more accuracy. If your company struggles to meet these demands, AGVs can help by automating processes that improve the speed of material movement, order picking, and inventory tracking. AGVs work efficiently around the clock and reduce the time it takes to move goods from storage to shipping, contributing to faster order fulfillment and potentially shorter delivery windows.

8. Aging Infrastructure or Equipment
If your current fleet of forklifts or manual material handling equipment is outdated, prone to breakdowns, or inefficient, it might be time to consider upgrading to AGVs. AGVs are typically more energy-efficient, require less maintenance, and have a longer lifespan than traditional material handling equipment. If your company is facing maintenance issues with older equipment or struggling to keep up with growing operational demands, AGVs could provide a more reliable and cost-effective solution.

9. Desire for Greater Operational Visibility
Many AGVs are equipped with advanced sensors and tracking technology that allow businesses to monitor their operations in real time. If your company struggles to gain visibility into key performance metrics, like material movement, stock levels, or order progress, AGVs can help improve data transparency. Integration with warehouse management systems (WMS) or enterprise resource planning (ERP) software enables real-time tracking and data analysis, providing actionable insights for better decision-making and operational planning.

Is it Time to Transition to AGVs?

AGVs are an ideal solution for companies facing efficiency, safety, scalability, and cost management challenges within their warehouse or operations. If your business experiences any of the signs mentioned above, implementing AGVs could significantly improve operations and create a more efficient, productive, and safe environment. The initial investment in AGVs may seem daunting. Still, the long-term benefits, including reduced labor costs, improved safety, and enhanced productivity, can provide a substantial return on investment and bottom line.

Next time you walk around your facility, keep the above nine signs in mind and count how many you see. Better yet, call Abel Womack and have one of our automation experts conduct a walkthrough with you. We will evaluate your current operational challenges, warehouse layout, and growth to ensure a smooth transition to automation and AGVs.