Brian Pigott 
August 6, 2014 
Like all industries, the warehouse and logistic industry is moving into the future with a full head of steam. Companies across the country and the world are implementing a variety of new technologies in an effort to become safer, faster, and more cost effective.
One of these technologies is the automated guided vehicle, or AGV. As the name implies, an AGV is able to drive itself without human assistance, usually guided either by using pre programmed routes/floor plans, lasers, or some combination of the two.
So yes, it’s like a self-driving car combined with a forklift.
But can this new technology make an impact on your business right now? Or is the technology still a few years away from being viable?
Let’s look at some of the pros and cons:
Pros
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Reduced labor costs – Financially, this is the most significant advantage. It’s pretty simple: no forklift drivers = lower labor costs. Obviously, there may be some other labor costs associated with installing/maintaining the system, but installation is a one-time expense, and maintenance is intermittent (more on that later).
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Improved safety – It’s pretty hard for someone to hurt themselves driving a forklift if your forklifts don’t need anyone to drive them. AGVs can considerably cut down on injuries and improve safety by removing human error from the equation. Plus, in the event that something does go wrong, it’s less likely that a person will be nearby to get hurt.
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Cut downtime – One of the primary advantages of an AGV is its ability to reduce downtime in the warehouse. AGVs can work day and night, don’t require any breaks, and only have to stop for maintenance. You can keep fulfilling orders 24/7!
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Versatility and durability – Here’s the thing about humans: there are certain environments in which we just can’t work in. AGVs, on the other hand, can withstand heat and cold for long periods of time (for temperature-controlled warehouses), and also can maneuver in much tighter spaces than a forklift.
Cons
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Large upfront cost – While reduced labor costs are a big plus, the initial upfront cost of an AGV is a big drawback. Unit prices can range anywhere from $70,000 all the way up to a cool $1 million. For smaller companies, this may be enough to make an AGV impractical right off the bat.
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Lack of human intuition – As with any automated technology, removing human error from the equation also means removing human intuition. A forklift driver has the ability to see a situation and react using reason, while an AGV is limited to its programming. Plus, a human worker may notice if an order looks incorrect or suspect, while an AGV will fulfill it no matter what.
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Unproven technology – While AGVs have existed in some form or another since the 1950s, the technology is still relatively new. And as with any new technology, there are bound to be the occasional unforeseen problems. A forklift with a driver, on the other hand, is a tried and true method.
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Higher maintenance costs – Just like a regular forklift, an AGV requires regular maintenance. Compared to a forklift, however, this cost is significantly higher. Hopefully, this cost is offset by the lack of labor costs, but as with any new technology, you never know exactly what could happen.
There really is no simple answer when asking if an AGV is really worth it or not. For some businesses, it could be the key to increased safety and productivity, but for others, the cost alone may be enough to send them running.
The bottom line: if you’re considering adding an AGV, do your research, get a few price quotes, and make sure that your business can handle this technology.
About Brian Pigott
Brian Pigott is an engineer and customer-centric entrepreneur. Brian is the Managing Director of One Way Solutions.
As you will inevitably learn, buying an AGV to increase your warehouse productivity is a waste unless your distribution center has the talent to make the most of it. This may mean changing your fulfillment processes and habits, and can impact day-to-day operations. Bottom line: don’t buy an AGV or any other warehouse automation if you don’t have the capacity to use it correctly.