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Scalable Solutions Make Big Business Sense

Discover how scalable warehouse automation solutions help mid-size businesses boost efficiency, reduce costs and drive long-term growth.

by Cheryl Falk

Your Automation Journey Begins Here

In today’s supply chain environment, where space is limited and labor costs are rising, mid-sized businesses are feeling the pressure to adapt. For years, automation was seen as only an option for big-name brands, but that’s no longer the case.

Many growing organizations are reaching a tipping point. Warehouses are reaching capacity, labor shortages are becoming more pronounced, and operational costs continue to rise. Yet for many, automation still feels out of reach, either financially, logistically or both.

These companies face unique challenges, often running within tighter resources and narrow margins, which make the impact of operational inefficiencies even more pronounced. Every square foot of space and every hour of work must be fine-tuned to support sustained growth. When outdated or manual processes begin to hinder performance, the case for a smarter, scalable solution becomes clear.

As a result, many organizations are reevaluating their approach to automation. Rather than pursuing large-scale infrastructure changes, they are looking for targeted, cost-effective strategies that align with both current operations and long-term growth. For many, this begins with a right-sized setup, one that improves productivity and efficiency without adding unnecessary complexity.

Opening the door to automation

FORTNA has supported some of the largest automation deployments in the world, including systems with up to 200,000 storage bins in some of the most advanced facilities. However, not every operation requires that level of scale.

Businesses with annual revenues between $30 and $100 million are growing quickly but may not have the resources or space for a fully automated mega-facility. That’s where smaller, well-designed programs come in. They offer the capabilities growing companies need, including improved picking speed, space optimization and labor efficiency without major disruption.

The bigger hurdle now is shifting how leaders think about automation. It’s not a massive, intimidating or complex project anymore. It just needs to be thoughtfully matched to the size of your operation and growth goals.

autostore-bot-fortna-high-density

Value of scaled-down automation

Smaller, scalable systems make automation possible and are designed to work efficiently within your existing space and grow alongside your business. There are a variety of options available, including solutions from trusted alliance partners such as Hai Robotics and Geekplus, offering flexible, high-performing systems that can adapt to operational needs.

One example of a fully automated solution is the FORTNA/AutoStore system. Powered by FORTNA’s warehouse execution system (WES), this modular, goods-to-person solution is both cost-effective and high-performing. Even a modest setup, such as a 10,000-bin system, delivers strong throughput and a solid return on investment, with the ability to expand as a business grows. Consider these key factors:

  • Real estate savings: Warehouse space averages $5 to $8 per square foot, so expanding by 100,000 square feet could cost upwards of $800,000 per year.
  • Operational efficiency: Automation helps streamline picking, reduces error rates and lowers dependency on manual labor.
  • Rapid ROI: With thoughtful design, smaller configurations can often pay for themselves in less than two years.

Making automation approachable

Automation can feel overwhelming, especially when the word “customization” enters the conversation, as it often implies long lead times, excessive costs and complicated implementations. Rather than building from scratch, a growing number of businesses are turning to proven configurations—think chocolate, vanilla or strawberry. This approach keeps things simple and effective, helping growth-focused organizations move forward with confidence.

What this means for your operations:

  • Faster design and deployment cycles
  • Predictable costs
  • Shorter project timelines
  • Fast implementation, sometimes in just six months

Complex customization is reserved for large-scale projects. However, for many businesses, a smaller pre-configured, off-the-shelf solution provides the right mix of performance, agility and simplicity.

 

Ideal for e-Commerce operations

A smaller AutoStore approach is a strong fit for a variety of industries, particularly those managing high volumes of small, fast-moving goods. Apparel brands, online retailers and third-party logistics providers (3PLs) often benefit the most, as these environments demand high picking efficiency, order accuracy and effective use of space.

For businesses facing seasonal demand, high SKU turnover or limited warehouse space, compact automation offers a smart path forward. A smaller AutoStore system can enhance space utilization, streamline labor requirements and accelerate fulfillment, all within the existing facility footprint. This makes it a practical and cost-effective alternative to large-scale warehouse expansion, especially for organizations focused on boosting performance without significant disruption.

Cost of doing nothing adds up

Postponing automation can lead to mounting inefficiencies, especially for businesses experiencing 10% to 20% rapid growth annually, expanding warehouse space or struggling with ongoing labor shortages.

In a real-world example, a company with $30 million in annual revenue explored implementing a $3 million FORTNA/AutoStore system. Although they had recently expanded their facility and were initially reluctant to take on another investment, a data-driven assessment projected that the new space would be at full capacity again within two years. This insight shifted the conversation from “if” to “when,” positioning automation as not only a logical next step but also a financially sound decision.

To further evaluate the investment, rigorous ROI modeling was conducted, and the results were compelling, as the solution was projected to:

  • Reduce picking labor by 35%, eliminating the need for nine full-time positions
  • Cut replenishment labor by 50%, removing a headcount of seven
  • Lower fork truck investment and related maintenance costs by 57%

What first appeared to be a significant financial commitment quickly proved to be a strategic, practical option. Through clear ROI modeling, the automation assessment demonstrated that monthly savings in labor and equipment were enough to offset the cost of the system. This analysis didn’t even account for additional benefits such as space optimization and long-term operational efficiencies.

In the end, the numbers told a clear story: that automation wasn’t just affordable, but it offered a cash-positive solution that addressed immediate challenges while creating room for future growth.

This example highlights a critical reality that the cost of doing nothing continues to rise. Delaying automation often leads to growing inefficiencies, higher labor costs and space limitations, especially for fast-growing businesses. In the end, the real risk wasn’t the investment itself. It was delaying the decision and missing the opportunity to achieve measurable results sooner.

35%

reduced pick labor

50%

reduced replenishment labor

57%

reduced fork truck investment and related maintenance

FORTNA Can Help

Deciding whether a scalable automation solution aligns with your business goals starts with a conversation. By partnering with FORTNA, we will help clarify operational needs, identify opportunities and provide a design tailored to your specific requirements. We will walk through the details together to ensure the insights are relevant and grounded in your real-time data. If you’re exploring whether a mid-sized system makes sense for your business, contact the team today.

Your automation journey begins here

About the author

photo-of-cheryl-falk-senior-vice-president-marketing-and-business-development

Cheryl Falk

Sr. Vice President, Marketing & Business Development

Cheryl Falk is Senior Vice President, Marketing & Business Development at FORTNA. She leads strategic initiatives that drive global revenue growth in a dynamic and complex business landscape. Leveraging a keen understanding of next generation technologies and emerging trends, she engages C-level executives with thought leadership to assist in achieving business outcomes.