Maximizing Smart Storage ROI

Smart Storage provides ROI in a number of ways - here are a few common examples

Investing in smart storage systems represents a significant leap forward for electronics manufacturers of all kinds. In order to accurately capture return on investment (ROI) figures, you need to understand how and where a state-of-the-art Smart Storage System can save you money and be prepared to take benchmark measurements on existing processes. While it's challenging to offer generic ROI figures that apply universally due to varying operational dynamics, we can explore several key areas where ROI is typically realized.

Labor Savings

One of the most tangible benefits of smart storage systems is the drastic reduction in labor costs. A medium-sized EMS, for example, can achieve labor savings of up to 90% when transitioning from a standard rack-and-bin setup to an appropriate Smart Storage System.

Modern material handling systems streamline the process of finding and retrieving parts, significantly cutting down the time employees spend on these tasks. Automated inventory tracking with ERP/MRP integration reduces the need for manual counts and checks, further saving labor hours. The same efficiencies are gained on material receipt/return-to-stock, which can virtually eliminate any material bottlenecks in a production facility.

Real Estate Optimization

The value of real estate is a significant consideration for any business. Smart storage systems contribute to ROI through effective space utilization. With potential space savings of about 90%, these systems transform previously wasted storage areas into productive spaces. The reclaimed space can be repurposed for additional production lines or other value-adding activities, directly contributing to revenue generation. 

Minimizing Human Error

Another crucial area where smart storage systems deliver ROI is through the reduction of human error in part selection, picking and returning, data entry, and more. These systems ensure that the correct parts, whether determined by manufacturer part number, lot code, or any other means, are always selected. This accuracy is paramount in preventing costly production errors and the associated costs. By virtually eliminating material handling errors, smart storage systems reduce the costs associated with rework, returns, and production delays. Data integrations with other manufacturing systems can eliminate the need for costly and error-prone data entry as well.

Additional ROI Considerations

In addition to the above areas, smart storage systems also provide ROI in a number of other areas. By providing real-time data on inventory levels, these systems enable tighter inventory control, reducing the need for excess stock and freeing up capital. Integrations with supply chain partners provide real-time tracking, automated ordering, and other services, reducing costs associated with rush orders and stockouts. 


While the exact ROI of a smart storage system will vary based on specific operational circumstances, the benefits in labor savings, error reduction, space optimization, and supply chain efficiency are universally applicable. Businesses considering such an investment should conduct a thorough analysis of these areas to understand how a smart storage system can align with their operational goals and financial objectives. The potential for significant ROI is clear, making smart storage an attractive proposition for businesses looking to modernize and streamline their operations.

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