Enhancing Warehouse Operational Efficiency Through Vision-Guided Automated Guided Vehicles (AGVs): A Business and Productivity Analysis for SMEs

The increasing pressure for workflow stability, cost efficiency, and labour optimisation in small and medium-sized enterprises (SMEs) has intensified the demand for accessible intralogistics automation. Guided by Industry 4.0 principles and supported by recent research on lightweight, vision-based navigation and integrated material-handling mechanisms, this study presents the design and evaluation of a low-cost, vision-guided Automated Guided Vehicle (AGV) developed specifically for SME environments. The AGV employs PixyCam-based colour navigation and a height-adjustable conveyor module to provide autonomous, reliable material transfer with minimal infrastructural requirements. A mixed-method assessment combining engineering performance tests, operational workflow observations, and financial modelling was conducted. Results show that the AGV reduces takt-time variability from ±18% (manual handling) to approximately ±3%, enhances workstation synchronisation, and improves ergonomic safety by reducing walking distance and manual lifting. Annual labour savings range between RM 28,000 and RM 36,000, with a projected payback period of 4 to 6 months. These findings demonstrate that low-cost, vision-guided AGVs offer SMEs a practical pathway to operational stability and digital transformation, delivering measurable technical, ergonomic, and financial benefits without the high cost and complexity of industrial AGV systems.