(Photo: Cimcorp Group)
Warehouse automation is increasingly being treated as a strategic priority for companies seeking to strengthen efficiency and resilience in their supply chains. While cost remains a central consideration, industry experts argue that the return on investment (ROI) should be measured in far broader terms.
“In some industries, you simply can’t hire enough people anymore,” said Riku Puska, Warehouse & Distribution Industry Sales Manager at Cimcorp Group. “So the question isn’t ‘can we afford automation?’, it’s ‘can we afford not to?’ In these cases, automation becomes essential not only to maintain efficiency but to protect business continuity and customer loyalty.”
The price of automation varies according to warehouse size, processes, infrastructure and the degree of automation required. While the initial capital expenditure can appear daunting, it represents only part of the picture.
Automation can deliver a range of benefits: higher output, reduced reliance on labour, improved accuracy and enhanced product quality. Beyond this, companies often report fewer order errors, lower return rates and stronger customer satisfaction — intangible factors that nevertheless impact profitability and brand reputation.
“Reducing costs matters, but the real value lies in building more intelligent, resilient and future-ready operations,” noted Mikko Kumpulainen, also a Warehouse & Distribution Industry Sales Manager at Cimcorp. “Automation lets you plan ahead with confidence and reduce the daily firefighting that comes with manual work.”
Labour shortages, especially at peak demand periods, can leave shelves empty and customers frustrated. Automation, Cimcorp argues, is not simply about saving money but about ensuring continuity, protecting customer relationships and enabling sustainable growth.
“If you can’t staff your peak days, you’re not just losing sales, you’re handing your customers to the competition,” emphasised Puska. “In that light, automation isn’t about ROI alone. It’s about survival and smart growth. Automation helps businesses stay ready and relevant.”
Returns on automation projects typically fall between four and 14 years, depending on scope and strategy. Larger systems generate stronger efficiencies but require more upfront investment, while smaller projects offer a gentler entry point. Modular systems, in particular, allow firms to start with a limited set-up and expand over time.
“A smaller system can be a smart starting point,” said Kumpulainen. “Especially if it’s designed to scale. You get early results and a long-term plan in one.”
Cimcorp stresses that a successful automation project begins with a robust business case, identifying pain points such as lost time, labour inefficiencies or order inaccuracy. Quantifying these issues and projecting improvements provides a clear framework for financial and strategic justification.
Operational expenditure is another key element. Although automation requires higher upfront costs, it typically offers lower running expenses than manual systems. In sectors such as fresh food, automation can reduce waste, improve cold storage efficiency, enhance accuracy and increase throughput — all of which deliver measurable ROI.
“Customers don’t just need automation, they need a roadmap that fits their business,” explained Kumpulainen. “At Cimcorp, we work closely with customers to define what success looks like and how to reach it, step by step.”
Automation, the company argues, should be seen as a long-term strategic investment rather than a short-term cost. Businesses that align automation with their wider objectives — whether improving supply chains, scaling operations or safeguarding competitiveness — are best placed to thrive.
“For those who start in a smart way, build a strong business case and partner with the right experts, automation lays the foundation for a more resilient and competitive future,” concluded Puska.