The most obvious cost saving that comes from implementing automated guided vehicles is a reduction in labor costs because you are either replacing an existing employee or foregoing a new hire. In exchange for the initial investment that it takes to purchase an AGV, employers save money by eliminating ongoing costs that accompany human personnel: salary, healthcare, retirement benefits, vacation and sick time, overtime pay.

People make mistakes. They get tired, fatigued, and distracted. They sometimes don’t see an obstacle until they ram the forklift into it. Accidents and mistakes cost companies money by damaging a product that can no longer be sold and by damaging equipment or structures that then need to be replaced. AGVs do not have to contend with the same issues that human workers do; they don’t get tired, they don’t get fatigued, they don’t get distracted thinking about lunch. Through their use of sensors, lasers, and cameras, AGVs save money by reducing the damage that human operators can cause.

Using AGVs increases workplace safety in a number of ways. In addition to removing the human element, which is at the root of many accidents, they can perform tasks that are dangerous to human workers, such as handling hazardous substances, working in extreme temperatures, and moving heavy materials. This ultimately moves personnel out of harm’s way. AGVs operate in a controlled manner, with smooth and consistent acceleration/deceleration and monitored top speeds—a direct contrast to manual forklift drivers, who can whip around a plant at high speeds and endanger staff.

When linked with a warehouse control system or a warehouse management system, AGVs easily and automatically track inventory. This lowers costs by removing the need to have workers perform inventory. Increased accuracy of inventory also means that you know exactly how much material you have, allowing you to order materials when you need them. This prevents the loss of time and productivity that can occur if you are waiting for a new shipment to arrive and also prevents the waste of capital that can occur if you order something that you don’t yet need.