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The case for a logistics automation systems

Logistics companies are increasingly adopting warehouse AGVs to mitigate challenges in maximising operational efficiency, boosting labour productivity and meeting skyrocketing e-commerce demand. 

AGVs – The future of warehouse efficiency

53% of third-party logistics providers (3PL) stated that automating warehouse processes is their most significant opportunity in 2023 (Extensiv, 2022). 

The market value for AGVs within e-commerce and logistics is forecasted to reach $560.9 million by 2023 (AGV Network, 2021), illustrating the acceleration of logistics automation. 

The benefits of automation include:

  • Improved safety
  • Unlock greater efficiency
  • Maximise space on the warehouse floor
  • Fully automated load moving

What are automated guided vehicles?

An automated guided vehicle (AGV) is a material handling system that travels autonomously without an operator. With AGVs delivering significant efficiency gains, logistics companies increasingly use the technology to mobilise their operations. 

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Moving to an automated logistics system – What are the benefits of warehouse AGVs?

Improve efficiency

Supercharge operational efficiency

Warehouse AGV systems help 3PL providers drive operational efficiency and support effective inventory management. AGVs can move multiple loads simultaneously, reducing wasted time for distribution centres and fulfilment operations. 

Improve safety with an AGV electric tug

Boost labour

It’s no secret that the logistics sector faces challenges with labour shortages. AGVs are proven to deliver time savings and maximise labour productivity, empowering workers to focus on greater value-adding tasks.  

Increase ROI with an AGV electric tug

Mitigate warehouse capacity constraints

Rapid growth puts pressure on warehouse capacity, and this is particularly true during seasonal peaks and trends. Optimising existing space is crucial for logistics providers. Compact logistic AGVs enable businesses to maximise warehouse space – delivering goods as and when they’re required. 

Project Snapshot: Leading 3PL gains competitive edge with AGV systems

A third-party logistics provider (3PL) has reduced its forklift fleet, significantly reducing traffic in populated areas and driven efficiency benefits through a MasterMover warehouse AGV solution. 

The move towards automation in logistics

This 3PL uses cages to transport parts from the depot to stores. When these cages are returned to the depot, they are located on the opposite side of the site from where they are needed. 

Previously, forklift trucks were used to move roll cages, stock and containers. However, the forklifts could only move a small number at a time and were travelling in busy areas.

These factors meant a lack of efficiency, increased costs and a higher risk of incidents involving people, equipment and stock. 

The solution – MasterMover AGV

With a MasterMover AGV solution, the movement of stock is automated, with the AGV moving five times the number of roll cages or containers in one go. Forklifts are now only used outside in safe areas, and fewer operators are needed to transfer stock across the site.

The benefits of the logistics automation system for this 3PL included: 

  • Improved safety 
  • Unlocked greater efficiency  
  • Maximised space on the warehouse floor 
  • Fully automated moving loads 
  • Removal of human operated forklift process 
  • Automation of repetitive tasks 

Ready to learn more? Download your Guide to Automated Guided Vehicles (AGV)

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