It was revealed that five representative companies that introduced the logistics automation system of AutoStore™, a leading company in robotics technology, achieved a 79% ROI within three years and experienced a total economic effect of KRW 15.67 billion.

AutoStore recently released a research report titled Total Economic Impact™ of AutoStore (TEI), which analyzes the economic impact of introducing a logistics automation system.

According to this, it was confirmed that the introduction of Autostore's logistics automation system would improve customer service with high-density storage and a small workforce, while significantly reducing logistics warehouse space and real estate-related costs.

This TEI study, commissioned by AutoStore and conducted by global market research firm Forrester Consulting, was conducted to investigate the potential return on investment (ROI) that companies can obtain by adopting AutoStore solutions and to help potential customers understand the financial impact, including benefits, costs, and risks, of adopting AutoStore.

This TEI study was conducted based on representative interviews and financial statements of five European companies that have introduced the AutoStore system. These companies have been operating their warehouses in a traditional way using shelf storage, radio frequency-based manual picking or reach trucks, and have been suffering from chronic problems such as increasing warehouse rentals and labor costs in Europe, and limited scalability. To solve these problems, they introduced AutoStore's logistics automation solution to improve the efficiency and flexibility of their warehouse operations.

According to the report, these five companies achieved a total economic effect of approximately KRW 15.67 billion (USD 12.05 million) compared to the total system introduction cost of KRW 8.74 billion (USD 6.73 million) over three years after introducing AutoStore, recording a high net present value (NPV) of approximately KRW 6.92 billion (USD 5.32 million). They also achieved an investment recovery period of 18 months and a high ROI of up to 79%.

The report analyzed that these financial effects are because AutoStore's logistics automation system provides various cost-saving benefits such as warehouse space, labor costs, and theft prevention costs. The companies that introduced the system were able to reduce their storage area by 75% thanks to the high-density storage method of the AutoStore system, resulting in a total warehouse area saving effect of approximately KRW 7.8 billion (USD 6 million) over three years.

In addition, Autostore's AS/RS (automatic storage and retrieval system) enabled the operation of warehouse picking personnel at half the level of existing ones, resulting in a labor cost savings of approximately KRW 3.51 billion (USD 2.7 million).

Additionally, AutoStore's closed system design enhanced inventory security, resulting in savings of approximately KRW 743.9 million (USD 541,846) in inventory shortages and theft over three years.

In particular, the AutoStore system reduced picking errors by 99%, and companies that introduced it experienced economic benefits worth approximately KRW 3.25 billion (USD 2.5 million) over three years due to improved picking accuracy. Additionally, it enabled operations to be expanded without the need to hire additional temporary workers during peak seasons, resulting in cost savings of approximately KRW 540 million (USD 414,754) over three years.

In addition, the report stated that companies that have adopted AutoStore’s logistics automation system are also enjoying various non-quantitative benefits such as reduced robot maintenance, stability, and inventory management. Compared to other AS/RS solutions, AutoStore robots require minimal maintenance, which can reduce maintenance costs for companies.

Kim Kyung-soo, CEO of AutoStore Korea, said, “AutoStore provides high-density storage capacity through stable logistics automation solutions, helping companies improve customer service with fewer staff while reducing costs related to warehouse space and real estate. AutoStore Korea will do its best to help domestic companies accelerate their business growth through this.”