The Advantages of AGVs - Mitsubishi Logisnext Americas

Author: Fayella

Aug. 11, 2025

Machinery

The Advantages of AGVs - Mitsubishi Logisnext Americas

What are the Advantages of AGVs?

Automation has worked its way into nearly every corner of our lives. Forward-looking companies have embraced automation and searched for increased opportunities to utilize it to reduce costs and increase efficiency. While automated guided vehicles (AGVs) have been used in some capacity for several decades, manufacturing centers and distribution facilities are beginning to realize that utilizing more AGVs can add up to a very positive ROI over the long term. Let's explore some of the benefits of AGVs.

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Savings in Personnel Cost vs. AGV Cost

The price tag on an AGV might raise a few eyebrows if you’re trying to pitch the idea under the banner of savings, as you’re likely to spend $30,000 or more to buy a new automated guided vehicle. However, once you get past the initial AGV cost, the savings from reduced labor costs and personnel can add up quickly. The chart below shows the estimated cost savings of just one AGV over the course of five years, where the total cost of ownership for a standard forklift is around 80% related to the operator.

Another AGV benefit after your initial investment comes from the fact that AGVs don’t require increases in compensation. Particularly in a tight labor market it’s also important to realize that moving to AGVs means you won’t have to deal with wage increases, bonuses, insurance, 401k matches, etc.

On top of costs associated with salary and benefits, it’s especially important to account for the costs of human error. AGVs do not make the same mistakes a human does, which can lead to less damage to products and equipment. AGVs will not get tired or distracted, allowing for 24/7 operation in a wide range of conditions. Depending on your operation, removing a human operator from certain processes will also allow you the option of lowering heating and cooling costs as your AGV can function in a wider range of temperatures and conditions than a human.

Technology = Efficiency, Accuracy and Safety

The newest generations of AGV pallet stackers, like the Jungheinrich EKS 215a NA, utilize laser navigation which allows them to move with remarkable precision, an accuracy that’s within millimeters. That accuracy is vital when interfacing with conveyors. These stackers can monitor for obstacles by using enhanced sensors and reflectors, allowing them to integrate seamlessly and safely into environments that include manual trucks and pedestrians. With programmable top speeds, smooth and controlled movements, and collision detection systems, AGVs are designed with a high level of safety.

On top of the precision and safety features, AGVs can also be programmed to prioritize orders to maximize efficiency in order processing. These vehicles can be integrated easily into your existing processes including your Enterprise Resource Planning (ERP) software or Warehouse Management Software (WMS). Jungheinrich AGVs have been successfully integrated with over 100 different WMS, ranging from off the shelf to customer specific and can be tailor-made to fit your existing WMS. Have changes? No problem. The modular AGV system offers the flexibility for the vehicles to respond to changes. Don’t have a WMS? Jungheinrich AGVs can even operate as an autonomous standalone system without a host connection. 

While you might think AGVs would only work in the most rigid of structures, the current state of these products allows far greater flexibility than you would imagine.

When Automation Makes Sense

Yes, AGVs are more flexible than they’ve ever been, but it’s important to do a thorough assessment of where, when, and how you should implement automation to maximize your ROI. AGVs are at their most valuable when utilized in processes that have predictable, repeatable movements. You can work with your local Jungheinrich dealer to identify the most valuable task for automation in your facility. Run through this list of common questions to help figure out your best application for AGVs:

  • What is the load/unit?
  • What is the volume or throughput of the product movement?
  • What are the temperature conditions?
  • How many shifts are you currently running?
  • What is the labor content?
  • What are the space requirements?
  • What type of Warehouse Management Software do you have?

Have Questions About the Advantages and Disadvantages of AGVs?

Five ways automation can benefit your internal logistics

As e-commerce volumes rise across Europe, labour shortage increases and the ongoing need to improve warehouse and production efficiency intensifies. Automation can seem like the solution for all logistical problems. Logistics industry has spent decades looking towards new technologies to help improve efficiencies, boost productivity and eliminate the risk of human error.

A recent McKinsey article on the topic suggests the emergence of a new logistics paradigm which will see many operations automated by , as artificial intelligence takes over the repetitive activities that warehouse operatives have to perform. It predicts an industry in which we will see fully-automated high-rack warehouses and autonomous forklifts navigating the aisles.

Goto Daulfinld to know more.

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However, the decision to automate your material handling processes is not as simple as the solution itself. To be successful, it must be based around an individual business case. How many tasks are repetitive and could benefit from automation? In which areas are skills shortages or employee retention an issue? Where is time being wasted in your operation? What is your overall automation goal? To help you consider these factors, this blog post lists five ways automation – through the use of automated guided vehicles (AGV) from Toyota - could benefit your warehouse operation and solve some of these challenges.

1. Supporting business growth

Companies looking to grow their business and increase throughput often turn to automation as a solution. Not only is technology such as AGVs easier to implement than ever, and widely more available, they are proven in many circumstances to help businesses increase productivity along with an attractive return on investment.

2. Bridging the labour gap

Retaining warehouse staff can be a challenge for logistics businesses. Warehouse jobs can be repetitive, demanding and stressful, with lots of movements to cover over short to long distances. By using automation in areas of repetitive work, employees can be freed up to perform other added-value tasks, which will be more motivational and opens up for new job opportunities. This will increase staff morale. AGVs can also present several new career opportunities in the field of maintenance.

3. Reducing costs

AGVs can reduce costs by working day, night and weekends, without a wage or overtime payments. This improves just-in-time logistics operations, which in turn, reduces costs and stock levels. It also creates a leaner operation, enabling your business to reduce waste and increase the throughput of stock leaving the warehouse.

Additionally, AGVs can help businesses that are looking to find new ways to lower the costs caused by accidental site damage, labour and health & safety. Damage to loads and infrastructure, along with health & safety issues are reduced, thanks to scanners and sensors utilised by AGVs to manoeuvre with high levels of precision.

4. Lowering the risk of accidents

Employees can be vulnerable to the risk of workplace incidents due to the busy environment in which they operate, where forklifts and workers pass each other regularly and the opportunity for collisions and damage is high.

Our range of automated trucks are designed with safety in mind. AGVs can replace manual trucks, which reduces the likelihood of workplace incidents. Toyota’s automated vehicles are equipped with safety scanners that continually look for hazards in the environment they operate. Upon detecting a potential hazard, an AGV will automatically stop to avoid collision.

5. Improved sustainability

Companies looking to move towards making their sites more environmentally friendly can benefit significantly by using automated guided vehicles. Their efficiency and smooth driving behaviour mean that automated trucks contribute to reduced waste and require lower energy consumption than traditional fuel sources.

Furthermore, advancements in lithium-ion battery technology mean that battery charging rooms are no longer required for AGVs. Instead, charging can be done automatically and the batteries themselves save 30% more energy compared to alternative power sources. As AGVs can be used at night and in total darkness, the costs for using electricity and heating warehouses can also be reduced.

Of course, while AGVs present several business benefits, they are not always the answer to all of your warehousing problems. It may be the case that non-repetitive tasks are not so easy or economical to automate, which is why we always advocate a combination of automated machines supporting skilled humans in their work. It is also a good idea to consider applying some lean thinking before attempting to automate areas with high traffic volumes, for enhanced safety.

For more information, please visit AGV For New Energy(ru,fr,ko).

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