The use of robotic technology in supply chain warehousing is growing at an astronomical rate. Understandably so, as automation is proven to increase production while decreasing production costs, not to mention improve reliability and safety. Of course, the shift to automation is expensive and many warehousing businesses just lack the funds. At the same time, NOT investing in robots can quickly put warehousers out of business.
Fortunately, there is an industry solution on the rise called Robotics as a Service (RaaS) which involves leasing robotic technology rather than purchasing it. Much like an automotive lease, there is no large financial outlay up front but rather manageable monthly payments. Users are able to retain their capital and preserve their credit lines. What’s more, RaaS allows for robotic equipment upgrades or add-ons during or at the end of rental terms, which can be critical considering how quickly emerging technology becomes outdated.
Most exciting about RaaS is its near-immediate impact on a company’s production power and bottom line. Thanks to the lower initial costs, ROI is virtually instant. And because leasing the technology falls under an operational expense, warehousing businesses are able to gain internal approvals and reap the benefits of robotic technology in short notice.