How to Help Your Leadership Team Justify Investing in Warehouse Automation
Warehouse automation decisions rarely stall because of technology. They stall because leaders struggle to align operational pain with financial reality. For operations and supply chain teams, the challenge is translating daily friction into a business case that executives can support. This means reframing automation as a strategic investment rather than a capital expense. With the right framing, data, and timing, automation becomes a leadership conversation about risk, resilience, and long-term value.
Start the Business Case with What’s at Risk
The strongest automation conversations begin with what the business stands to lose. Labor instability, rising costs, service failures, and lost customers all erode performance over time. As Nathan Wolf, Director of Sales at TGW Logistics, explains, “It sounds so cliche but can you afford not to automate? … if you can deal with the rising cost of labor, land, lost orders, lost productivity, and all of those different types of things, then maybe automation’s not for you.” For many organizations, those pressures are already present. Ignoring them only compounds the risk in the future.
Executives also want clarity on scope. Not every operation needs full automation on day one. Dex Weber, Business Development Manager of Automation Integration Solutions at TGW, emphasizes that building the business case is a shared effort. “Building the business case is a collaborative effort,” he notes, adding that assumptions must reflect the company’s reality. Labor rates differ. Networks differ. Growth plans differ. That’s why early modeling often includes placeholders around labor savings, power usage, consolidation opportunities, and customer experience improvements. Grounding these assumptions in operational data helps leadership assess risk with confidence.
Greenfield and brownfield projects carry different risk profiles. Those tradeoffs directly affect assumptions around cost, disruption, and payback. Calling them out early helps leadership evaluate risk realistically rather than applying a one-size-fits-all business case.
Translate Automation into Financial Outcomes Leaders Trust
Once the problem is clear, leadership looks for financial credibility. ROI timelines, IRR thresholds, and capital tradeoffs matter. Wolf is direct in expectations. “In most cases, we’re looking at an ROI somewhere between 2 years and 5 years.” That range aligns with what many executive teams already expect from major capital investments.
IRR often becomes the deciding metric for an automation strategy. Wolf adds, “Most of the time we have customers that are looking for an IRR of 12% or higher. Oftentimes we’re in the 20s.” These numbers help reframe automation as competitive capital deployment rather than discretionary spend. They also open productive conversations with finance earlier in the process.
Financing automation also shapes leadership decisions. Weber points out that purchasing equipment ties up capital that could otherwise fund acquisitions or expansion. “When you’re making these big investments, you don’t start benefiting from your ROI until it’s installed and you’re actually using it.” Leasing can shift that timeline, reduce upfront exposure, and accelerate payback.
But the payoff can be huge as Wolf explains, “In a traditional picking environment, someone can pick 150 to 250 units an hour, and if it’s semi-automated, then maybe they get to 300 to 400, but in a fully automated, maybe you can get to 700, 800.” Exploring these options early avoids late-stage friction and aligns automation with broader financial strategy.
Show the Human and Operational Upside
Automation cases become stronger when leaders see the impact beyond spreadsheets. Productivity, retention, and consistency matter just as much as cost savings. Wolf highlights the workforce angle clearly. “If you can make that easier for someone, you can make their job easier, they’re absolutely going to work more efficiently, and they’re going to be happier.” Reduced turnover, fewer injuries, and more stable teams directly affect service levels and operating costs.
Change management also plays a role. Automation fails when people are left behind. Linking the business case to training, phased implementation, and operational continuity builds trust. When leaders see automation as a way to stabilize operations, protect customers, and enable growth, approval conversations shift. The focus moves from cost to capability.
Building Your Case for Warehouse Automation
Helping leadership justify warehouse automation requires clarity, not persuasion. Frame the risk of inaction. Anchor the discussion in financial metrics leaders trust. Show how automation supports people, customers, and long-term strategy. When operations teams speak the language of business, automation becomes a decision about resilience and readiness, not just equipment.
Watch The Business Case for Automation to hear how TGW leaders break down ROI, risk, and financing strategies in real-world automation decisions.
