AGV ROI Starts with a Delivery Commitment

So much emphasis has been placed on features, advantages, and benefits; too little attention has been paid to delivery dates. The best automation solution on paper means nothing if it cannot be delivered in 2022.  Selling the sexy sizzle of new, clever, even remarkable AGVs means nothing if manufacturers and distribution centers cannot take delivery of the product until 2023. Throughout industrial manufacturing and distribution the lead time from many AGV manufacturers is more than a year.  That means product ordered in Q1 2022 will not be delivered until the following year. That is an absurd lead time and reflects poor planning and unnecessary supply chain constraints.
AGV ROI Starts with a Delivery Commitment
The supply chain disruption: most new fork trucks cannot be delivered until 2023

The question several years ago might have been fork truck or AGV?  The average delivery time for most new fork trucks is also 2023. Until now, the question from purchasing was which vendor could best demonstrate the fastest ROI and cost-justification. That question is also dated because ROI can only be calculated from the date of delivery and rapid installation.

Basic AGV Solutions Prove Best Option for 2022

One of the realities of moving materials on a production loop with 30 stops is that well-established, tried, and trusted AGV technologies, will solve the problem.  Likewise, most AGVs are needed for simple A to B location (dock to production cell) delivering raw materials or kitted solutions.
AGV ROI Starts with a Delivery Commitment
K10 One-Way: One-directional movement. Towing capacity of up to 3,000 kg/ 6,614 lbs on wheeled trolley. Dimensions (L x W x H): Up to 1,700 x 500 x 280 mm/ 67”x 19,7” x 11” Magnetic navigation

Tricked-out super-sophisticated AGVs that cannot be delivered until next year are useless.

The need for AGVs is real

Years ago, the efficacy and merit of the technology had to be explained as some feared that fork truck drivers would be replaced. Ask any manufacturer struggling to find workers right now, the ability to order AGVs and take delivery by Q3 2022 is a big deal.  As plant managers, purchasing, and occupational health and safety professionals are tasked with automation objectives, hiring objectives, and production quality and safety process improvement, the standard ROI paradigm has shifted for 2022.

The AGV selection process for 2022: Delivery Commitment

AGV vendors must promise a delivery date with a guarantee not to exceed 180 days from purchase order to delivery. Failing to provide that commitment is unacceptable. Solving the immediate challenges in production by delivering product in Q3 2022 and mitigating the hiring constraints plaguing industrial HR managers are top priorities.
AGV ROI Starts with a Delivery Commitment
K11 Two-Way: Bidirectional movement; Towing capacity of up to 3,000 kg/ 6,614 lbs on wheeled trolley. Dimensions (L x W x H): Up to 2,010 x 500 x 280 mm/ 79” x 19,7” x 11” Magnetic or mapping navigation
About The Author
Mike Kotzian is currently the Managing Director of Kivnon USA, a leading Automated Guided Vehicle supplier with Farmington Hills, Michigan headquarters. He has over 20 years of experience in the AGV industry in various leadership roles. He has a special interest in the history and evolution of the AGV with a passionate look to the future. Follow KivnonUSA on Twitter or contact Kotzian on LinkedIn.

SPOTLIGHT

Kivnon researches, develops, designs, manufactures and distributes Auto Guided Vehicles (AGV´s) and systems in order to improve the productivity of internal logistics of its customers. Kivnon is committed to global excellence with a complete range of AGV´s and related products to support its customers in the current transformation in the world of manufacturing (industry 4.0). With the 10 years of experience in the field of the AGV production and related products, Kivnon has become an important player in its segment.

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Kivnon researches, develops, designs, manufactures and distributes Auto Guided Vehicles (AGV´s) and systems in order to improve the productivity of internal logistics of its customers. Kivnon is committed to global excellence with a complete range of AGV´s and related products to support its customers in the current transformation in the world of manufacturing (industry 4.0). With the 10 years of experience in the field of the AGV production and related products, Kivnon has become an important player in its segment.

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