In most industries, small-sized and medium-sized companies are finding it hard to compete. This is especially when it comes to offering better prices for their products.
Big companies tend to out-compete smaller companies mainly because of automation. They have budgets that allow them to take advantage of the benefits that come with robotic automation. With these advanced systems, they can be able to increase productivity in their companies. This is in addition to the consistency in quality that these systems make possible.
Luckily, it is possible for small businesses to also enjoy the benefits of automation. This is because of the availability of collaborative robots. With their relatively cheaper prices, ease of installation and overall versatility, these advanced robotics systems are giving most small-sized and medium-sized businesses a chance to effectively compete in the marketplace.
Here are the different ways in which having a collaborative robot, also known as a cobot, can help you compete — especially when it comes the cost of production.
Economies of scale
Generally, the more a company produces, the lower its per-unit costs drops. This is usually the case because fixed costs make up a huge portion of a company’s expenses. And with reduced per-unit costs, a company will have better margins. The company can also have the freedom to reduce its costs to a point where it can compete with bigger companies.
Small companies tend to have a harder time increasing production. This is because in order to increase production, they have to allocate more capital in increasing their labor force and building out the infrastructure needed to support such increases.
Collaborative robots can work at a faster rate than human beings. They can also work continuously without needing to take a break. As a result, they can make it way easier for small businesses to increase their production without necessarily hiring a large army of workers. One can therefore enjoy the economies of scale without the headache of increasing your labor force, or having to reduce it in case things don’t pan out.
Wastage accounts for a significant portion of a companies losses. Whether this loss is as a result of employee mistakes or accidents, it all counts towards increasing the cost burden that the company has to bear. This can make competing a little bit more difficult.
Collaborative robots are very precise. They are also consistent. Therefore, if accidents and employee mistakes are burdening your company with losses, opting for these advanced robotics systems is something that you should definitely consider. They provide an easy and affordable way of taking control of your business’ costs.
With market demands changing at a fast pace, small businesses need to always be able to change with the market. These changes are sometimes hard for small businesses to make since they rarely have a budget that allows them to absorb the shocks that some of these changes cause.
A good example is when a company gets a huge contract. In order to fulfill such an order, the company may have to suddenly higher a larger team of employees. This is expensive. Finding the right employees to handle the demands of the business may also be challenging.
There is also a problem with what then happens once the contract ends. All these are things that may make a company to become hesitant when it comes to taking advantage of business opportunities.
Collaborative robots can work as fast as you want them to. You can speed them up to increase production when you have a large order. And when things change, you don’t have to worry about being saddled with a huge payroll that you have to take care of. You simply make the necessary adjustments.
Therefore, having a good cobot can go a long way as far as allowing you to quickly adapt to changes in the market. They can help keep you from having to carry significant payroll costs especially during a downturn in the market.