Where AGVs Save You Money Beyond Labor: Reducing Damages

When companies evaluate automation, labor savings usually get all the attention. But some of the most significant costs in an operation come from somewhere else entirely: damages. In this episode of Getting Traction with Mobile Robots, host Emily Pallikan sits down with Tommy Hessler, CEO and cofounder of ‪@americainmotion‬ to discuss the hidden costs associated with manual material handling and why many manufacturers underestimate their impact. From damaged products and pallets to facility repairs, rework, safety incidents, and operational disruptions, damage often becomes accepted as "the cost of doing business." Tommy explains how AGVs change that mindset by bringing consistency, predictability, and greater visibility to material handling operations. If you're evaluating automation solely through the lens of labor reduction, you may be missing a major part of the ROI equation. Key Topics Covered: The often-overlooked costs associated with damages in manual versus automated material handling How damages accumulate over time and impact overall ROI The role of automation in reducing damage variability and improving safety The importance of comprehensive cost analysis beyond labor savings Practical methods for quantifying damages through throughput analysis and presumptive calculations Industry-specific examples, including textiles and packaging, illustrating damage mitigation The future of AGVs in enhancing environmental and safety standards Tips for engaging financial decision-makers with damage-related data Timestamps: 00:00 - Introduction to damages in AGV systems and why it matters 01:36 - Set the stage: Costs of damages in manual vs. automated handling 05:04 - The significant value of transported loads and damage impact 06:17 - The difficulty of measuring damages in practice 04:52 - Visualizing total cost breakdown and payback periods 07:14 - Lessons from textile industry leak detection and measurement 08:28 - The role of automation in handling damages more consistently 09:29 - Damage variability caused by human drivers and how automation reduces it 10:56 - Environmental benefits: Noise reduction and pollution considerations 12:19 - Enhancing safety with programmed speed controls and pedestrian gates 13:00 - The misconception that AGVs will replace human jobs; instead, they free workers for smarter tasks 13:34 - Complete control over AGV behavior and operational safety protocols 13:54 - Innovative approaches: Flexible plant layouts with non-linear AGV operations 14:41 - Industry pioneers: Volvo’s early autonomous vehicle experiments 16:10 - Practical advice for quantifying damages and assessing ROI 17:07 - Simple calculations to estimate damage costs over time 18:01 - Risks of ignoring damages: Misjudged payback and missed improvement opportunities 18:51 - Final insights: Talking to financial decision-makers and making data-driven choices Interested in AGVs for your operation? 🎙️ Explore More Podcast Episodes: https://www.weareaim.com/getting-trac... 📊 Start Planning Your AGV System Estimate fleet size, pricing, and ROI with our AGV Planning Tool: https://www.weareaim.com/plan-agv-system 🤝 Talk to an AGV Expert Get answers to your questions and discuss your application: https://www.weareaim.com/agv-consulta... Listen to the full episode! Apple Podcasts: https://podcasts.apple.com/us/podcast... Spotify: https://open.spotify.com/show/033OTi8... Follow America In Motion LinkedIn:   / america-in-motion   Facebook:   / aimagvs