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YOUR SAVINGS

HOW A ROBOTIC PROJECT IS PRICED ?

The pricing of a robotic project can be difficult to understand, especially when this is the first time you are planning to invest in such solutions. 

Here are some tricks to help you grasp how a robotic supplier sets up a technical and commercial offer. 

Key drivers: 
> You buy products and associated services: robots + software + deployment
> You buy according to your facility configuration 
> You buy a promise of performance

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1)    You buy a System not (just) a  Robot!

This is the main difference with the manual material handling industry. Customers are used to buying products (standard forklifts) and maintenance contracts. If you are about to evaluate the feasibility of implementing robots within your facility, you first need to understand that you will not only buy robots but also, the full configuration of your robotized operations.

The configuration of your future installation requires different AGV experts to:

> Manage your project, having a single interface for your teams and potentially your IT and software suppliers (WMS, ERP etc.)
> Set up the best layout for your future installation (simulations, robots path optimization, pick/drop zones, etc. )
> Deploy this pre-configured layout in your factory or warehouse
> Ensure the performance of your robotic installation

2)    What is included in your commercial offer?

Each supplier packages their offers differently but you should at least expect the following elements: 

> Robots price: the product itself and the options you need
> Energy price: the batteries and charging system
> Software price: robot supervision and interfaces with your IT system
> Project Management and commissioning price: deployment of the system

3)   What is included in the project management and commissioning price?

When you start a commercial discussion with a potential supplier, one of the first questions that you ask is: “how much does an installed robot cost?” 

In addition to the robots and energy price, an important part of the budget will be spent on project management and commissioning work. Pricing will depend on:

> The quantity and distance of flows you want to robotize
> The quantity and type  of pick/drop points   (racks, conveyors, dock lanes, etc.)
> The throughput (pallets per hour) you need to reach
> The quantity and type of robots we will provide to reach your throughput targets
> The total robot working area
> The software interfaces needed to connect your IT system to our robotic solution

It clearly appears that pricing has to be adjusted to each specific case and all above tricks will help you to inspect any supplier offers.

How do you generate savings ? Tricks to calculate your ROI.

Before investing in a robot fleet and starting your Industry 4.0 journey, you need to calculate the potential savings generated by a robotic solution. To help you make accurate calculations, we are sharing with you some feedbacks we got directly from our technology end users, who generated much more savings than expected.

Key insights:
> Robots are 30% more available than humans
> Robots eliminate/reduce the cost of damaged goods
> Robots can increase production capacity up to 15%
> Robots allow you to produce more with the same number of employees

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1) Availability comparison

When comparing the two approaches, manual and robotized, it is important to consider the availability of both options.
A human usually works 70% of the time he’s paid for when you consider lunch time, break time, vacations time and other lost time due to a normal working environment.

The AGV industry standards advocate 98% of availability for robots, meaning that an autonomous forklift must work during 23h30 out of 24h in a 3 shifts environment, without any technological disturbance due to the system itself.
The availability of a worker is thus 20% to 30% lower than a robot.

2) Quality increase and damage decrease

This is one of the main sources of savings for some customers, especially in packaging or food industries. Implementing self-driving forklift can dramatically improve the way your goods and products are transported.

Robots are much more smoother and safer than humans when moving, turning, picking or dropping loads, resulting in a decrease of accidents (involving materials, racks, trucks etc.) and pallet drops.

The percentage of quality improvement really depends on your industry type and your applications. But before calculating your potential return on investment, make sure to estimate the cost of potential losses for your company and include them into your ROI calculation!

3) Lean manufacturing

Working in an automated environment allows gain of time and process optimization. One of the main advantages of using robots in production operations is the time you save thanks to your connected robotic solution.

Your ERP (or your production management software) can now directly send orders to the robots to feed or remove raw materials or finished goods from the production line, avoiding any time loss that can occur with manual operations. Your connected robotic solution anticipates the needs and kills production stops due to lack of human coordination.

This process improvement can result in an increase of production of up to 15% in some industries.

4) Growing productivity with the same number of employees

This is one of the main challenges of the Industry 4.0: producing more for less, facing worldwide competition and cost pressure. Investing in automated processes and machines such as AGV, AMR or autonomous lift trucks is part of the answer.

Customers investing in our technology do not fire people replaced by robots. It is a common fear but not a business truth. In real life, our customers actually train drivers to operate on other manufacturing or logistic processes, meaning they can produce more with the same number of employees.

Some of our customers estimate they were able to increase their production by 15% by dedicating their employees to new tasks after investing in robotics.

You have now all the hidden and real robotic benefits to consider when calculating your robotic return on investment.

ESTIMATE YOUR SAVINGS

Our smart and free simulator, MyCashBox, helps you to find your automation opportunities and get a quick overview of your potential savings.

REQUEST A POC (PROOF OF CONCEPT) TO BALYO

DESCRIBE YOUR SPECIFICATIONS

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5 key points to take into account while writing your specifications

Here is a short list of advices you need to review before writing your robotic project specifications. Don’t miss it!

CHOOSE A ROBOTIC SUPPLIER

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5 things to check before choosing your supplier

Before making your final decision, here is a list of advises to choose a supplier based on your current needs, but not only!

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Request a demo at BALYO

You now know a little more about the players and technologies available, your robotic project takes shape and you want to see a robotic lift trucks in real life? It’s possible! Fill out this short form and make an appointment directly with one of our experts in one of our showrooms.

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Request a Proof Of Concept in your facility

You have been in touch with one of our experts and need to see what a robot is capable of in your facility? It’s possible! Complete this short form and book an appointment!

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How do you generate savings? Tricks to calculate your ROI

Customers usually compare the cost of purchasing a robotic system with the drivers salary which represents 80% of a pallet movement cost. This is a start, but this is not the only element to take into account.

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Estimate your cost savings

Today you can easily automate more than 80% of warehouse applications. Our smart and free simulator, MyCashBox, helps you to find your automation opportunities and get a quick overview of your potential savings.

YOUR FIRST ROBOT INSTALLATION

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Let’s start with BALYO

Now that you’ve ordered your BALYO robotic solution, the whole project team will be focused on delivering the targeted performance level.
BALYO teams will drive your success by providing you with all the performance analysis you need (Statistic Tool) to understand how your robots and human operators behave.
All along your journey, we will recommend the best optimizations to successfully implement your robotized processes.

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Your Project Kick-Off

Kick-Off
The Kick-Off is the first step of the BALYO Project Management Process. Prior to the Kick-Off meeting, our project manager will prepare a list of documents including the application-specific customer specifications, technical specifications, the project risk analysis & the project planning. Then, these documents and milestones are presented to you during the Kick-Off meeting.

Before your installation 
After an internal validation of the Software and Hardware bricks needed for your robotic project, the manufacturing process starts. In parallel, our project manager helps you prepare everything before robot commissioning: IT infrastructure & Software interfaces readiness, risk analysis recommendations implemented, site adaptations made, etc. Once the robots are produced, we perform an internal commissioning to test and validate all the safety and functional features before shipping the autonomous forklifts to your facility. All the results are obviously shared with you.

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Installation phase

Once the robots are delivered to your facility, the job of the field engineer in charge of installing your BALYO system starts: mapping of the building, routes design, pick & drop points design, testing etc.
During this phase, we validate all functionalities with you, as well as safety and interfaces tests/reports in real conditions. We also train your teams to work alongside robots in a new cobotic environment. The ramp-up of your installation is ensured by measuring performances all along the process until the handover milestone, where you officially take the lead on your robotic system!

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Handover

The handover formalizes transfer possession and risk from BALYO or its partners to the customer, meaning the system can be run without the presence of BALYO or its partners. The handover may contain “non-blocking open points” which will be dealt with in a final fixes phase. A non-blocking open point is an issue which does not hinder the system to achieve its contractual performance.

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Final Acceptance

The purpose of the final fixes phase is to close open points raised during the handover. When the robotic system is fully compliant to its specifications, the Final Acceptance is signed by all parties.

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Maintenance

Now your robots are fully operational, your main contact will be the service team. Organized by level of maintenance actions (base truck, hardware, software), our group of experts will support you whatever the issue is, ensuring continuity of your operations at the expected level of performance.

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Performance

Thanks to the BALYO Statistics Tool, you can track the performance of your system. Based on efficiency standards such as OEE or PackML data, our monitoring tool gives you the ability to follow and optimize your installation on a daily basis.

YOUR NEXT DEPLOYMENTS

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Your future needs

Usually, customers start their robotic investments with an installation of 3 robots (average). But keep in mind that our solution is designed to scale your operations up! After your first deployment, our experts are available to think about your future optimizations and new robotized material flows.
For example, after having automated supplies and removals of your production line, the next step can be to automate the vertical storage of your finished goods. Don’t forget, Robotics is a journey.

QUESTIONS TO ASK YOURSELF

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Evaluate market players and technology

Before investing your time in a robotic project, it is important to understand what are the trends of the material handling and AGV markets. Get an overview of the AGV player typologies and technologies by downloading our white paper.

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What applications can you cover ?

You’re thinking about a specific application for your future robots? Have a quick review of all the material flows our technology can robotize with an incredible product range.

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How a robotic project is priced?

This is the question our customers always ask first! As robots’ deployment requires an important investment from your company, it is mandatory for you to understand how a robotic project is priced.
Here is some key information we would like to share to help you out!