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How to measure the success of an automation project in your distribution centre

Automation in distribution centres is no longer a futuristic concept – it’s an increasingly necessary step for businesses aiming to remain competitive in a fast-paced supply chain environment. But as more companies look to automate, one key question often remains unanswered: how do you actually measure the success of an automation project?

“The most successful projects aren’t necessarily the ones with the biggest budgets – they’re the ones built on clear goals, honest evaluation and the ability to adapt.”
Mariusz Gorniak
Sales Engineer

Having worked across several automation initiatives – as both a consultant and a system designer – I’ve seen firsthand what success really looks like beyond the glossy brochures and initial go-live celebrations.

Success isn’t just about ROI (at least not immediately)

Let’s address the elephant in the room: return on investment (ROI) is important, yes, but it’s rarely the most useful short-term indicator, especially in the first six to 18 months post-implementation. Automation projects in logistics are capital-intensive, and expecting instant financial payback sets the wrong expectations from the start.

Instead, success needs to be viewed more holistically – focusing on operational impact, resilience and scalability.

What success actually looks like

Here are the indicators I advise my clients to focus on:

1. Operational stability and uptime

After implementation, can the system run reliably over extended periods without intervention? Downtime, even in small doses, can cripple throughput. A successful project is one in which the system settles into a consistent rhythm, with maintenance windows and failure rates within acceptable thresholds.

2. Throughput versus forecast

How close is the achieved throughput to the design specification? Better yet, how does it handle peaks beyond the baseline? Success means the system meets – and ideally exceeds – your daily volume requirements without excessive workarounds or overtime.

3. Labour reallocation (not just reduction)

Too often, automation is sold as an exercise to reduce headcount. In reality, the best projects free up staff from repetitive tasks and redeploy them in value-added roles, such as supervision, quality control or exception handling. Tracking how labour is reallocated gives a clearer picture of automation’s true benefit.

4. Error rates and quality improvements

Automation should reduce picking errors, damages and rework. If these metrics haven’t improved, the system may not be fully integrated with operational processes or data flows. Improved quality is often the clearest sign that things are working well, and it’s one customers will notice.

5. Flexibility to change

Can the system adapt to new product lines, packaging types or order profiles? Flexibility is often sacrificed for throughput, but a rigid system is costly to change later. Success includes designing for tomorrow, not just today.

6. Staff engagement

This one often gets overlooked. If your warehouse staff trust and embrace the new technology, that’s a huge sign of success. Resistance usually means they weren’t trained properly, the processes aren’t clear enough, or the system isn’t user-friendly. Regular feedback from the operations teams is vital.

Set expectations early and review regularly

Many automation projects suffer from vague or overly ambitious success criteria. That’s why it’s critical to define key performance indicators (KPIs) before implementation, not after. Agree on what success looks like across departments – operations, IT, finance and HR. Then review progress monthly for the first year.

Support that fits your journey

At Vanderlande, we’re here to support you at every stage of your journey – from defining success at the outset, through to implementation and ongoing optimisation. We believe in collaboration and can tailor our involvement to your specific needs, offering as much or as little guidance as required.

Building long-term success

Automation is a long-term investment. It won’t fix broken processes, but it will amplify both strengths and weaknesses in your operation. The most successful projects aren’t necessarily the ones with the biggest budgets – they’re the ones built on clear goals, honest evaluation and the ability to adapt.

If you’re considering automation, take the time to think about what success really means for your site – not just in numbers, but in how people work, how problems are solved and how the business grows from the ground up.

Would you like to know more?

Every company and every market is different. This is reflected in the layout of your warehouse – and the advice offered by our experts.