GlobalAutoTV
Click to watch Margery Marshall - Global Mobility Strategies
Click to watch Margery Marshall - Global Mobility Strategies
global resources
Need an office somewhere in the world? Office suites, meeting rooms, virtual offices, network access



free downloads
GLOBAL: "The Role of the United States in the Harmonization Process: A Proposed Scorecard" article

GLOBAL: "The Role of the United States in the Harmonization Process: A Proposed Scorecard" article. 7-page article by Dan Malone, Director Global Automotive Practice, Butzel Long and published by BNA, Inc.

proceed to download
eJournals




back to index backGLOBALtalk October,  2016


The robotization of logistics will lead to the disappearance of 1.5 million jobs in the Eurozone in the next ten years

- Research examines the economic impact of robotic solutions in logistics

- Total cost of robotic solutions is falling sharply and expected to drop below 100,000 euros by 2020

- Robotization increases productivity in warehouses significantly – handling costs to be reduced by 20 to 40%

The robotization of logistics will lead to the disappearance of several hundred thousand unskilled jobs over the next ten years. Unless preparations are made for the transition, up to 1.5 million jobs in the Eurozone will be lost. The most heavily affected sectors will be commerce and the manufacturing industry and their logistics service providers. These are some of the major findings of the new Roland Berger study "Of Robots and Men – in logistics: Towards a confident vision of logistics in 2025".

"While a decision in favor of robotization seems inevitable from a microeconomic point of view, its macroeconomic significance is uncertain. The offsetting of the lost jobs through increased added value or exports is not as evident as it has been in other industries such as manufacturing," commented Mehdi El Alami, Principal at Roland Berger.

Total cost of robotic solutions is falling sharply

The return on investment of logistics automation solutions will soon drop below three years thanks to flexible and collaborative robotic solutions. These new solutions, which are now helping human operators and machines to work side by side in the same warehouse without the need for any major transformation, are causing companies to rethink the way work has been organized over the last few decades. Their operational scope includes the moving of pallets, stacking/unstacking, order preparation or palletizing and, before long, loading. "Robotic logistics solutions have developed at great pace since the giants of the internet made them the spearheads of their expansion plans. The cost reductions and the maturity of the solutions are such that we are now approaching a tipping point before the widespread presence of robots in warehouses," commented El Alami.

The cost threshold at which robotic solutions become viable in most of Western Europe is now between 100,000 and 110,000 euros per unit. As such, the total hourly cost of a robot is around 18 to 20 euros per hour when the average cost of a human operator is 14 to 15 euros per hour in the Eurozone. "In the long run, the increase in productivity, the lengthening of the lifespan of robotic solutions and the drop in equipment prices will all be factors in favor of robotization, while the cost of human labor will continue to rise structurally," explained Didier Bréchemier, Partner at Roland Berger. The Roland Berger experts predict a large number of solutions costing less than 100,000 euros to appear on the market by 2020. This is attributed to the emergence of low-cost solutions developed by research institutes or start-up spin-offs, which are more agile than established industrial robotics giants and more likely to go for market disruption.

Productivity gains expected through increased robotization

Manufacturers promise significant picking productivity gains since robots, assuming they are in continuous use, are four to six times more efficient than human operators. In practice, such productivity rates are significant only if they speed up the sales cycle. Even the most advanced robotic solutions are rarely fully automated, with human operators invariably managing complex formats or items with the lowest rotations. "With these configurations, initial feedback indicates a drop in handling costs of 20-40%," said El Alami. "These figures depend on various factors such as the complexity of order preparation operations, the order range and the warehouse layout among others. In general terms this level of productivity gain is enough to finance the investment."

How to prepare for the mass arrival of robots in logistics

According to the authors of the study the most credible solution for European countries is to improve their competitiveness and become the most attractive logistics hub in larger clusters. Toughening of labor regulations would only encourage the rollout of robotic solutions by increasing their return on investment. Roland Berger experts recommend decision makers to:

- Subtly oversee the transition by creating an ecosystem around a flexible and evenly spread robotization process

- Simplify regulations to compensate for the forecast "additional cost" of arduous logistics work

- Encourage logisticians to revamp their business model on the basis of this new reality

"Robotization should be seen as the solution that improves the attractiveness and the competitive situation of a logistic hub, rather than the problem," said Olivier de Panafieu, Partner at Roland Berger, in summary.

To download 20-page report, please click here.

Source: Roland Berger - GAI





previous page

go top
search our site


Loading

GLOBALtalk

Other articles from the same issue (October,  2016).

Are You Developing Global Leaders?
play read on

The Double-Edged Sword of Overseas Experience
play read on

Michigan Incentives (job training)
play read on

China Ministry of Human Resources Issues Three New Regulations to Strengthen Enforcement of Labor Laws in 2017
play read on

Can an expat work or do business in Mexico?
play read on

UK Brexit: 10 steps for employers to take now
play read on

2016 Asia-Pacific HR Report
play read on

Talent Development Tip For China: Throw Them In The Deep End
play read on

U.S. Companies Turn to German Training Model to Fill Jobs Gap
play read on

Mexico: Two initiatives to amend legislation related to labor litigation and to collective bargaining
play read on

Ten things you didn’t know about employment law in Brazil
play read on

U.S.: The Right Way to Check Someone’s References
play read on

China Employment Law Update
play read on

The earning gap between Chinese and foreigners in China continues to decrease as priorities in the job market shift
play read on

China Employment Arbitration: Good Luck With That Battle
play read on

France: Calculation of severance pay
play read on

Romania, highest increase in cost of labor among EU states
play read on

U.S.: Study Addresses 'Crippling Deficit' in Skilled Workers
play read on

U.S. Manufacturers Attempting to Upskill Their Workforces
play read on

New USCIS Policy Decision Broadens Permissible Bases for Visa Transfer of Multinational Managers
play read on

Mexico: Company’s solidarity liability with the expat
play read on

6 things to know about business travel to Rio de Janeiro
play read on

Key Challenges Facing Global Talent Management Strategies
play read on

Managing Risk and Compliance with your Global Traveler
play read on

Singapore: Guidelines for employers on leave and notice periods for term contract employees
play read on

Prioritizing HR to succeed in China
play read on

Employment law, Immigration and Brexit: how much more do we know?
play read on

Preparing for Brexit – a checklist for HR
play read on

Women in Management: Old and New Challenges in Brazil and China
play read on

The robotization of logistics will lead to the disappearance of 1.5 million jobs in the Eurozone in the next ten years
play read on

Robots will eliminate 6% of all US jobs by 2021, report says
play read on

Millions in South East Asia to lose jobs to automation
play read on

Industry-Academia Collaboration in Japan – Opportunities for Foreign Companies
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120