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AGV & ROI: when automation really renders — and when it doesn’t

Automation with AGVs (Automated Guided Vehicles) sounds appealing to many companies. Less manual work, more predictability, and increased safety. But the real question is always the same:

When does an AGV solution really pay off?

In this article, we move away from simplistic sales pitches and take a sober look at ROI (Return on Investment) : when is automation a logical step, and when not (yet)?

Why ROI in AGVs is often misunderstood

ROI in automation projects is still too often reduced to a single element: saving man-hours . This seems logical, but it's rarely comprehensive.

What is often missing in classic ROI calculations:

  • the complexity of processes
  • the variability in volumes
  • exceptions and peak times
  • human factors such as safety, tranquility and sensitivity to errors

An AGV that works perfectly in theory can disappoint in practice if the process surrounding it is not stable or sufficiently well thought out.

Where does the revenue from AGVs come from?

1. Labor costs and availability

In environments with repetitive internal transport, AGVs are often the most cost-effective.

Typical measurable effects:

  • Fewer manual transport movements
  • Less dependence on scarce labor
  • Continuity across multiple shifts

Important: AGVs don't simply replace people, they relieve them so they can create value elsewhere.

 

2. Safety and harm reduction

An underestimated ROI factor.

  • Fewer collisions
  • Less product damage
  • Fewer injuries and incidents

This not only translates into lower costs, but also into peace of mind, predictability and limited liability .

 

3. Process stability and reliability

AGVs do exactly what they're supposed to do. Always!

Advantages:

  • Constant lead times
  • Fewer errors
  • Better planning and predictability

In production environments this often outweighs pure labor cost savings.

 

4. Scalability and future value

A well-designed AGV system grows with you:

  • Additional vehicles
  • New routes
  • Integration with WMS / ERP

There is often latent ROI here: not immediately visible, but crucial in the medium term.

A simple calculation example

Couple:

  • Investment in AGV system: €400,000
  • Annual savings (labor + damage + efficiency): €150,000

Then the payback period is:

€400,000 / €150,000 ≈ 2.7 years

In many industrial contexts this is perfectly acceptable — provided the process is sufficiently stable.

Conclusion: ROI is not a number, but a consequence

A good AGV ROI is rarely the result of one clever calculation.
It is the result of:

  • thoughtful choices
  • realistic expectations
  • and a phased approach

The best automation projects deliver not only returns on paper, but above all reliability in daily operations .

And sometimes the biggest win is simply:
a workplace that is calmer, safer and more predictable.

When AGVs are not (yet) the right solution

An important, but often overlooked point: AGVs are not always the right choice .

Automation rarely pays off well when:

  • processes still vary greatly
  • volumes are low or unpredictable
  • change layouts regularly
  • basic logistics is not yet standardized

In such situations, it's often wiser to optimize first, then automate. That, too, is a form of return.

Automation isn't a panacea. In some situations, waiting or adjusting is wiser.

Typical pitfalls:

❌ Low volumes or sporadic transports
❌ Widely varying layouts
❌ Many exceptions and manual decisions
❌ Insufficient standardization of pallets, bins or routes
❌ Expectation that AGVs will solve 'everything'

In these cases, the ROI may be negative, or only become apparent much later.

The Immer-Goed approach

First analyze, then automate

At Immer-Goed we don't believe in 'selling AGVs', but in correct applications .

A realistic ROI analysis always starts with:

  • Process mapping
  • Data collection (movements, volumes, variation)
  • Safety analysis
  • Growth scenarios

Only then comes the technology.

Conclusion

AGV automation doesn’t pay off everywhere , but it does in the right context.

The key is in:

  • Realistic expectations
  • A broad view of ROI
  • And above all: a good understanding of your own process

Are you unsure whether automation is useful in your situation? Then an exploratory conversation is often more valuable than a quick quote.

Want to know if AGV automation is a viable option in your area? We're happy to discuss your options with you, with no obligation.

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