Automation: Realizing Different Ways to Increase Revenue

The decision to automating product flow often comes with questions as to how it benefits a company. With the rise of e-commerce giants like Amazon, automation becomes a necessity to adapt to new customer standards and remain competitive for many companies. However, just following the flow of the competition isn’t enough of a reason to automate a company’s operations. Automation has to make sense at a financial standpoint of the company.

In a previous article on McCombs-Wall Cases, we focused on different ways a company can reduce costs through automation solutions. However, when reaching return on investment (ROI), we all know there are two ways: cutting costs and increasing revenue. This article’s main purpose is to show different ways automation can raise revenue from your product flow.


Increasing Revenue

Although cost reduction is a top priority for material handling and product flow companies, companies should always find new ways to increase revenue when resources allow them to. Your supply inventory and your customer’s demands are the two key factors to increasing revenue – without one or the other means the death of your business. Automation tackles this issue from both ends! When executed properly, automation can immensely increase profit as revenue is raised through the roof on one side and reducing costs at the other.

From fulfilling orders better and faster with material handling equipment to increasing inventory capabilities with state-of-the-art sortation devices, your company can increase “supply and demand” through automation. Here are some of the main ways you can increase your operations revenue:

Increase Product or Pick Rate

When compared to manual labor, automation provides a faster, more efficient, and more accurate solution to increasing product and pick rate for any operation. Product and pick rate is dependent on the capabilities that a product flow system has to take an order and process it. More productivity means more product orders to increase your revenue!

Imagine if the product flow system is just one long conveyor system with dozens of workers lined up all around to fill different boxes of different orders. Workers without assistance may find it difficult to pick properly, especially when it’s a busy shift and there are hundreds of unique stock keeping units (SKU).

Utilizing robotics solutions is an example where pick rate can be easily increased. When finding ways to reduce repetitive picking tasks such as picking small cartridges or hand-sized materials, McCombs-Wall designs solutions that integrate pick and place robots. With rates up to 150 picks per minute, pick and place robotic solutions can increase pick rate without the need for additional labor.


Increase SKU Quantity

The ability for companies to manage and hold a wide selection of unique SKUs is becoming an industry standard for commerce companies. However, companies are often meet bottlenecks because higher SKU quantity can potentially increase error, decrease pick-rate, and increase required operational space.

Automation can increase a company’s SKU quantity without encumbering them with the increase of errors and inefficiencies that comes along with it manually. With careful warehouse management strategies, companies can utilize solutions such automated storage and retrieval systems such as carousels and extractors can be implemented to manage a larger SKU quantity.

With a greater inventory to choose from, customers are more attracted to the options that fits their needs – thereby increasing demand and revenue.


Increasing both processing speed and providing a wider selection of inventory allows for greater customer satisfaction – which results in repeated business! Automation serves as a vital tool for companies to meet and go beyond their customers’ expectations.

Considering ways to innovate your product flow? Contact us at McCombs-Wall to envision and create your next project! Visit the McCombs-Wall Inc. Website for more information.


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