Supply chain disruptions, increased customer demands, and warehouse labor shortages are just some of the factors that can adversely affect a business’ cashflow. As such, many logistics operations are seeking ways to optimize investments and free up capital. DLL’s intralogistics experts work with businesses globally to develop tailored solutions for these challenges.
Improving cashflow is important to many organizations as it allows them more flexibility to react to opportunities that arise, such as expanding operations or extending their business offerings. Logistics firms are no exception. Of the different ways businesses can preserve cash, one solution enables them to take advantage of the latest technologies, too.
Financial benefits of automation in logistics
Automation offers resilience, flexibility, and scalability to businesses when markets fluctuate and consumer requirements change, allowing logistics operations to rapidly respond to variations in demand. It is therefore no surprise that interest in automating warehouse operations continues to increase.
There are several cost benefits to automation, as well. With considerable deficits in warehouse labor availability and increasing salaries impacting many businesses globally, automation can help keep costs down in the long term. It can also help improve operational profitability. Robotic equipment can work 24/7 if needed, increasing output with no breaks, paid leave, or HR costs to contend with. The predictable nature of machines can also improve accuracy, reducing the cost of error fixing.
Automated warehouses can also help save on energy bills, as vast areas do not require heating or lighting where automated machinery is in operation instead of human labor. With global energy prices rising, this is a key consideration for many organizations seeking to optimize cashflow.
Switch from purchasing to leasing
Logistics firms can unlock further cashflow benefits by changing their approach to financing automation projects and other equipment. Leasing equipment, rather than purchasing it outright, moves the investment from capital expenditure (CAPEX) to operational expenditure (OPEX). With affordable monthly payments, this frees up much-needed cash reserves.
Leasing also allows companies to have access to up-to-date equipment, enabling them to maintain a competitive offering, without the hassle of ownership. To further help organizations to manage costs, leasing solutions can also include service and maintenance of the equipment, making it simpler and more predictable to budget month to month.
At the end of the lease, the end user may have the flexibility of being able to extend the agreement, purchase the equipment, upgrade, or return , . This can better allow firms to react to market conditions and changing business objectives, or upgrade to the latest technologies in a more affordable way.
By financing automation projects with bespoke solutions from DLL, businesses can also access innovative automation concepts thanks to its close partnerships with automation equipment manufacturers globally.
The dedicated intralogistics team at DLL has experience consulting with companies around the world to customize financial solutions for individual business cases. From conceptualization to completion, whether you’re financing part or all of your automation project, DLL can develop a finance program which is specifically tailored to your needs and designed to support better cashflow.
Finance logistics automation with DLL
DLL is ready to talk to businesses about their strategies for automation, improving cashflow, and optimizing investments. Why not get in touch with our intralogistics experts to see how DLL can help you?
