In a recent episode of The Automation Insider, host Joe McGrath sat down with Matt Kelly, Director of Business Development at Hai Robotics, to explore how companies of any size, from startups to large enterprises, can take a phased approach to automation. With robotics technology becoming more adaptable, businesses no longer have to make massive upfront investments to see meaningful operational improvements. Learn more about scalable robotics below!
Why Start Small?
The market is shifting toward scalable solutions that allow businesses to dip their toes into automation before fully committing. Traditionally, automation required significant capital and long implementation timelines, making it a daunting decision. However, as Kelly points out, today’s robotic systems provide a lower-risk entry point, allowing companies to automate incrementally.
Startups and smaller companies are prime candidates for this approach. With limited warehouse space and fewer resources, these businesses need solutions that help them compete with industry giants like Amazon and Walmart without a massive upfront investment. A real-world example comes from a company in Salt Lake City that had relocated seven times in four years due to space constraints. By implementing automation, they maximized their existing footprint, reduced labor strain, and improved fulfillment speeds.
McGrath expands on this by noting that even large companies can look small in certain areas: “A big company might have one small segment of their business—maybe just one product line or a set of SKUs—that would be perfect for automation. In the data, they look like a small business in that one area, and that’s where scalable robotics makes sense.”
The Case for Large Enterprises Starting Small
While big brands often have the resources to invest in large-scale automation, Kelly notes that many still hesitate due to competing priorities and high costs. Some organizations operate extensive distribution networks with smaller regional centers that aren’t traditionally considered for automation. These facilities, often reliant on manual processes, are ideal candidates for scalable robotics that can boost efficiency without requiring massive infrastructure overhauls.
One common misconception is that a company’s entire operation must be automated at once. In reality, large enterprises can take an incremental approach by targeting specific workflows or underperforming segments. As McGrath points out, some businesses might have just one SKU category or a single department that would benefit from automation, making it easier to sell internally.
Key Benefits of Scalable Robotics
- Lower Risk, Faster Implementation – Unlike traditional automation solutions that take years to implement, robotics can be deployed in as little as six months. This allows businesses to respond quickly to changing market demands.
- Incremental Growth – Companies don’t need to overhaul their operations overnight. Robotics-based solutions let businesses add capacity gradually, whether that means adding a single robot, an extra workstation, or additional storage.
- Flexibility for Brownfield and Greenfield Facilities – Robotics seamlessly integrate into existing operations without requiring extensive modifications. In contrast, traditional conveyor and shuttle systems demand significant structural changes, making them harder to implement in brownfield sites.
- Reduced Operational Costs – Automation doesn’t just reduce labor costs, it optimizes space utilization. Many warehouses struggle with real estate limitations, and robotic solutions allow them to maximize storage density while improving order accuracy.
McGrath highlights another key advantage: “In traditional automation if something breaks, your entire system can be down for hours. But with robotic fleets, if one or two bots go down, your operation keeps running. That’s a huge risk reduction, especially in peak seasons.”
Addressing Change Management & Employee Buy-In
One of the biggest barriers to adoption of automation is human resistance. Employees often worry that robots will replace jobs, but as Kelly explains, automation is designed to supplement human work, not eliminate it. In fact, automation can improve job quality by reducing physically demanding tasks, minimizing workplace injuries, and creating opportunities for upskilled roles.
Companies with high turnover, especially in warehouse environments, can also benefit from automation’s stability. One 3PL warehouse reported a turnover rate of nearly 40%, causing operational inefficiencies and increased training costs. With robotics, businesses can stabilize workflows and retain employees in more fulfilling roles.
🔗 Learn more about how John Lewis’ e-commerce DC implemented Hai Robotics, and why effective change management is key to integrate new technologies seamlessly into existing workflows.
Final Thoughts: Don’t Wait to Automate
A recurring theme in the discussion is analysis paralysis. Many companies delay automation decisions, waiting for the “perfect” moment or the “right” facility. Unfortunately, those delays often result in lost market share as competitors adopt automation-first strategies.
The takeaway? Starting small doesn’t mean thinking small. By implementing scalable robotic solutions, businesses can future-proof their operations and maintain a competitive edge in an increasingly automated world.
