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Cost-Saving Benefits Of Automated Guided Vehicles(AGVs)

Jun. 23, 2021

Cost-Saving Benefits Of Automated Guided Vehicles(AGVs)

When you want your company to automate your operations, a common starting point is to weigh the advantages and disadvantages of AGV when deciding whether an automated guided vehicle (AGV) is suitable for your company.

1) Reduce labor costs

The most obvious cost savings come from implementing automated guided vehicles to reduce labor costs because you either replace existing employees or give up a new employee.

As a return on the initial investment required to purchase AGVs, employers can save money by eliminating the ongoing costs associated with human personnel: wages, medical care, retirement benefits, vacation, and sick leave, overtime pay, etc.

In addition, the machines do not need to rest and can work 24/7, allowing them to quickly recover their initial investment.

2) Eliminate damage to structure and products

People who make mistakes. They will feel tired, exhausted, and distracted. Sometimes they can't see the obstacle until they hit the forklift into it. Accidents and mistakes can damage products that can no longer be sold, or damage equipment or structures that need to be replaced, thereby causing the company to suffer losses.

AGV does not have to face the same problems as human workers; they are not tired, they are not tired, and they are not distracted by thinking about lunch. By using sensors, lasers, and cameras, AGV can save money by reducing the damage caused by manual operations.

3) Improve workplace safety and reduce costs

The use of AGV can improve the safety of the workplace in many ways. In addition to removing human factors (the root cause of many accidents), they can also perform tasks that are dangerous to human workers, such as handling hazardous materials, working at extreme temperatures, and moving heavy materials. This ultimately puts personnel out of danger.

The operation of AGV is controlled, with smooth and stable acceleration/deceleration and monitoring of the maximum speed-this is in direct contrast to manual forklift drivers, who can drive at high speeds in factories, endangering employees.


4) They are cheaper than fixed automation systems

In many cases, the function of AGV is similar to that of a fixed automation system (such as a conveyor belt). A fixed automation system is expensive to implement and often affects the workflow during implementation; it takes time to put the system in place, and sometimes the facility cannot be operational during implementation. On the other hand, the implementation cost of AGVis lower, and more importantly, it will not affect operations during implementation. This will reduce downtime and increase productivity.

In addition, the equipment usually needs to adjust the workflow and layout to adapt to demand and increase flexibility. A fixed automation system, once implemented, is difficult and expensive to relocate; on the other hand, AGV can be easily reprogrammed to follow a new path.

5) Improve inventory efficiency and accuracy

When connected to a warehouse control system or warehouse management system, AGV can easily track inventory automatically. This reduces the need for workers to perform inventory, thereby reducing costs.

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