When businesses consider upgrading to an automated warehouse storage system, one concern consistently surfaces: the cost. Many UK companies, particularly SMEs, are assuming that the costs of automated warehouse storage are too high to justify the investment.
But is that really the case?
In this blog, we aim to understand the true cost of automation, explore the long-term return on investment (ROI), and demonstrate how modern AI-driven solutions can enhance warehouse efficiency and profitability.
Understanding the Costs of Automated Warehouse Storage
Automated warehouse storage solutions come in various forms, such as automated pallet storage like Autocube®, robotic picking systems like Brightpick, mini-load cranes, and shuttle-based storage. The price tag for these systems can vary significantly depending on factors like:
- Size and complexity of your warehouse
- SKUs and order volumes
- Storage density requirements
- Throughputs required – pallets in and pallets out
- Warehouse environment – freezer, chilled or ambient
- Integration with existing systems – machinery and software (WMS/SAP)
- Degree of automation and customisation
Many companies believe automated storage solutions are only applicable to large warehouses with thousands of pallets, however with advancing technology, the costs and the associated ROI are making projects with only a few hundred pallet positions extremely viable.
What Do You Get For Your Investment in Automation?
What you’re investing in is not just technology—it’s a complete leap forward in operational efficiency and effectiveness.
Automated storage delivers:
- Maximised space utilisation – store more within a smaller footprint
- Faster, more accurate picking – minimises human error
- Reduced labour dependency – fewer staff needed for repetitive manual tasks
- Improved health and safety – less manual handling and forklift use
- Greater scalability – futureproof your operations
- Improved client satisfaction – faster service with fewer errors
And when you have warehouse automation powered by artificial intelligence (AI), these systems become even more powerful.
Using AI To Help Reduce Operating Costs and Improve Efficiency in Automated Storage Solutions
Today’s smartest warehouse systems use AI and machine learning to go far beyond the capabilities of simple automation. Here’s how:
Product Location Optimisation
AI analyses order history and throughput data to strategically position fast-moving items for quicker access, reducing picking times and congestion in high-traffic areas.
Intelligent Batching and Order Grouping
AI algorithms can automatically group orders with similar items or destinations to improve picking efficiency and minimise unnecessary movement.
Predictive Analytics for Throughput
Rather than reacting to demand, AI systems can forecast peak periods and adjust storage and retrieval priorities accordingly—keeping your warehouse one step ahead.
Continuous Learning and Adjustment
As your operation evolves, AI adapts in real-time, constantly refining processes to reduce energy consumption, avoid bottlenecks, and increase productivity.
Long-Term Savings: ROI That Stacks Up
Yes, the upfront costs of automated warehouse storage can be significant—but the payback is often faster than expected. Many businesses see ROI in as little as 18–36 months.
Savings come from a number of factors , including:
- Up to 85% reduction in picking errors
- 50–70% increase in floor space efficiency
- Labour cost savings of up to 80%
- Faster order processing, reducing lead times and improving customer satisfaction
Plus, as the cost of labour continues to rise and the availability of skilled warehouse operatives declines, automation and AI offer a reliable long-term solution.
Final Thoughts: Is Warehouse Automation Too Expensive—Or Too Valuable to Ignore?
The costs of automated warehouse storage are not just about the capital expenditure — they’re about improving efficiency, accuracy, and profitability in an increasingly competitive and demanding market.
And the latest technology combined with AI is now enabling smarter, leaner operations, meaning the power of investing in automation has never been clearer.
Whether you’re looking to reduce reliance on labour, optimise your floor space, or simply improve service levels – automated storage and powerful AI, offers a compelling and future-ready solution.
Looking to explore how automation and AI can reduce your warehouse storage costs? Thistle Systems specialises in helping small to medium-sized UK companies to design, install, commission and integrate warehouse automation, storage and robotic picking solutions
To discuss your warehouse operations and your plans for warehouse automation, give us a call on 01236 453888 or use our enquiry form now.
Looking to Automate your Picking Operations?
If Automation is right for you, however your requirements differ from AutoCube’s offerings, explore our options: Brightpick – A Robotic Order Picking System. From in-aisle robotic picking solutions to fully automated goods-to-person systems, we have a solution that can be tailored to suit your requirements.
