Executive Briefings

'Total Value of Ownership' Gains Use as ROI Measure of Warehouse Automation

There is a shift happening in the way companies evaluate automated and integrated material handling systems, according to the fall quarterly report from the Material Handling System of America's Integrated Systems and Controls Industry Group. The report, A New Look at Automated Material Handling's Return on Investment, asserts that total value of ownership (TVO) is supplementing the more widely used Total Cost of Ownership analysis in ROI formulas. TVO analysis helps companies realize how a capital investment will reduce direct labor, and enable process, technology and service innovations to the benefit of their customers.

The complete report is available at: http://www.mhia.org/subwebs/emails/images/iscqrfall2009.pdf

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There is a shift happening in the way companies evaluate automated and integrated material handling systems, according to the fall quarterly report from the Material Handling System of America's Integrated Systems and Controls Industry Group. The report, A New Look at Automated Material Handling's Return on Investment, asserts that total value of ownership (TVO) is supplementing the more widely used Total Cost of Ownership analysis in ROI formulas. TVO analysis helps companies realize how a capital investment will reduce direct labor, and enable process, technology and service innovations to the benefit of their customers.

The complete report is available at: http://www.mhia.org/subwebs/emails/images/iscqrfall2009.pdf

Read Full Article