How to calculate a compelling ROI for AMR?

How to calculate a compelling ROI for AMR?

While most manufacturers today know they need to automate further to compete better, most also struggle to make a compelling business case for autonomous mobile robots (AMR).

What’s more tightening margins and cost-cutting pressures are keeping manufacturers from investing in new technology unless they can see a clear and short-term ROI. In fact, according to the findings from our latest report, a staggering 88% of manufacturers say ROI concerns slow automation attempts down.

Getting a better understanding of the business value of AMR is essential for manufacturers who want to get ahead. Here are five figures to include in your ROI calculations.

Cutting costs

The most obvious statistic to plot into your ROI calculation is the sum of costs saved with labor and skill optimization. With their long battery life, high payload and autonomous routing, AMRs can take on hours a week of low-value human tasks. However, this simple figure is only the tip of the iceberg.

Faster supply chain

Removing human decision making from the supply chain decreases the rate of errors, required quality checks and collisions. All of these contribute to a slowed or halted process. By adding sophisticated AMR technology to the mix, manufacturers can see an improved offering from day 1.

Improved safety

The MiR AMR is probably one of the safest in the world, with the latest technology to keep workers safe. By taking on the tasks that put workers at risk of an injury, the related financial cost from fines, lost workdays and damaged equipment should drop dramatically.

Limited downtime

While there is complex technology and data behind MiR AMRs, their set up and use is anything but. Unlike AGVs, which require refitting of the shop floor, MiR AMRs can be implemented quickly, ensuring that there is no downtime in other processes when the robots are deployed.

More attractive workplace

By creating a better work environment, the costs relating to retaining and recruiting staff should naturally drop. In a period of record employment, many manufacturers are struggling with staffing. Therefore, implementing AMR to take on the dirty, dull and dangerous jobs will help increase appeal.

Quicker response to market demands

For businesses to keep competitive on a global playing field, logistics processes must get increasingly lean and responsive. AMRs contribute to reliable, efficient and flexible workflows. This means those who automate the most will be able to respond better to external demands and fulfil larger or more complex orders than before.

Source by MiR 

Unsure about the ROI of AMR?

The robots from MiR offers a fast return on investment with a payback period that is often less than a year.

Explore how we can help your business gear up for the future.



About HoST

HoST, founded back in 1990, operates in the industrial automation market across Singapore and parts of South East Asia. HoST’s vision is to be a company that delivers customer-centric values to address evolving business needs. HoST has been mainly recognised as the sole authorised distributor of Allen-Bradley Company in Singapore. Over the years, HoST has not only established strong ties with its various business partners but have continued to build new and successful business relationships to provide its customers with the best-in-class solutions that are available in this competitive market. HoST ever-expanding portfolio of solutions makes up the three core pillars of its business, specifically in the Industrial Internet of Things (IIOT), Industrial Network and Security, as well as Carbon Footprint Reduction, which reflect HoST’s commitment to innovation and sustainable growth.

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