Author: Jeff Ström

Why "The Sweet Spot" is crucial for profitable automation

A common misconception in e-commerce and 3PL is that the threshold is too high and that automation solutions are expensive. Many believe that some kind of robotic warehouse is the only way to go.

Here we want to create a clearer picture, and give more companies the opportunity for successful and profitable automation. With the support of data from your system (e.g. WMS or ERP), we find together what we at e-motions call "the sweet spot".

The sweet spot is the point where you get the best return on investment.

Here is a clear picture of how many picking locations we can complete as a percentage of all picks. It is also where - and only where - our focus for automation should be.

With our Pick-to-Light (or Pick-by-light as some say), we can make a huge difference with a small investment. The PTL often solves a higher percentage of the total order backlog than what you think at first glance. In the image above, we see a typical curve for what a 3PL, or e-retailer's, relationship looks like between the number of storage locations (x-axis) and the percentage of our orders we can complete (y-axis). For example, with 96 picking locations, we can fulfill 60% of all orders.


Where is your sweet spot?

Here are three important takeaways:

  1. Let the data guide you to get the most optimized flow possible.

  2. Focus on your high-rollers.

  3. Identify your sweet spot and apply the 80-20 rule.


Do you want to know more about how we can help you find your sweet spot? Contact me.

Key Account Manager

Jeff Ström

We are here for you

Fill in the form below and we will help you further. Thank you for contacting us!