Smart Evolution Instead of Costly Revolution

“Help, my automation technology is outdated, now what?”

This is a question many small and medium-sized businesses (SMBs) are currently facing. The demands on modern logistics processes continue to rise: shorter lead times, higher process reliability, improved traceability, and seamless system integration are no longer future challenges, they are operational reality. At the same time, existing automation solutions are under growing pressure, whether due to outdated control systems, lack of connectivity, or limited flexibility.

For many companies, a complete replacement of existing systems seems neither economically viable nor organizationally feasible. High investment costs, uncertainties during implementation, and the risk of costly downtime make such projects difficult to justify. Adding to the challenge is a common misconception: that meaningful modernization automatically requires a full rebuild technologically, structurally, and financially.

A Pragmatic Response to Today’s Challenges

Reality shows there is another way, more practical, economical, and risk-conscious. One particularly effective approach for SMBs is retrofitting, the targeted modernization of existing equipment through new software or hardware. Instead of replacing automation systems, retrofitting upgrades them with the primary goal of ensuring functionality while bringing them up to the latest technological standards.

At its core, retrofitting means enhancing a system so it delivers at least the same performance, reliability, and availability as before, often with improved operational safety and easier maintenance. Beyond that, retrofitting opens the door to additional potential through smart technologies. Modern sensors enable more precise process monitoring, intelligent control systems increase transparency, and energy-efficient drive technology delivers significant savings.

These upgrades are modular, avoiding deep structural changes and usually implemented without long production downtimes.

An Evolutionary Path to Automation

For SMBs, retrofitting offers an evolutionary path into automation: step by step, predictable, and financially manageable. This approach reduces investment risks and allows seamless integration into existing processes. That is a crucial advantage in an environment where flexibility and adaptability determine business success.

When retrofitting is carried out during ongoing operations, careful planning and professional project management are essential to minimize disruptions and ensure success.

Overcoming Outdated Mindsets

One of the biggest obstacles to automation is the deeply rooted belief that it inevitably requires disruptive, expensive change. Retrofitting challenges this assumption. It reframes automation not as a radical break but as a continuous improvement process.

For SMBs, this means they can start small: gain initial experience, test new technologies, and build internal expertise without overhauling their entire logistics system.

Embracing Technological Diversity

Technology is advancing rapidly, from cloud-based control solutions to machine learning and digital twin technology. For many SMBs, however, it is difficult to navigate this complexity. Often, they lack the time, expertise, or personnel to identify and successfully implement the right solutions.

That is where specialized consultants come in. With deep industry knowledge, structured analysis, and proven methodologies, they create customized automation strategies that are both technically feasible and economically sustainable. The focus is not on theoretical possibilities but on tangible value: measurable efficiency gains, lower operating costs, and long-term resilience.

Key Success Factors: Clear Goals and Solid Analysis

So, how can a company successfully launch a retrofit project? The first step is defining clear objectives: Which processes need improvement? Which bottlenecks must be eliminated? Which KPIs should be optimized?

Equally important is a realistic assessment of the current system. What is the condition of the equipment? Where are the weaknesses? Where are untapped opportunities?

A retrofit makes the most sense when frequent breakdowns, high maintenance costs, or unavailable spare parts disrupt operations, when software no longer supports key functions, or when processes no longer meet today’s quality and efficiency standards.

With this foundation, investments can be made wisely and justified both internally and externally. Structured consulting not only supports the selection of suitable technologies but also enables risk assessment and cost-benefit analysis. Overlooked interface issues, underestimated downtime, or unexpected interactions between old and new components can quickly become expensive. Experienced experts identify these risks early and design effective countermeasures.

Retrofitting as a Driver of Digitalization and Sustainability

Modern automation goes far beyond traditional process optimization. By retrofitting IoT components, even older systems can become “smart”: they collect operational data, communicate with each other, and provide valuable insights for predictive maintenance, improved resource planning, and faster incident response.

Sustainability goals are also becoming increasingly important. Companies that save energy and reduce emissions through modern technology not only lower operating costs but also meet stricter regulations and growing customer demands for sustainability and safety. In this way, automation becomes a strategic lever, not only for efficiency but also for responsible business practices.

Evolution, Not Revolution: Automation for SMBs

Retrofitting provides small and medium-sized businesses with a realistic, flexible, and economically viable way to modernize existing automation systems. The focus is not on disruptive change but on sustainable value creation.

The key lies in combining technical feasibility, tailored goal-setting, and expert guidance from experienced partners.

** This is an English adaptation of the posted article in the German trade journal f+h fördern und heben KMU/2025**

Read more on Retrofitting here

About the author:

Marcel Wilhelms

Marcel is CEO EPG Consulting and Managing Director at Groenewout. He has a Bachelor of Arts in Transport and Logistics management (B.A.) and a Master of Science in International Business (M.Sc.)

With over 20 years of experience in logistics and supply chain and more than 10 years in leading consulting firms, Marcel brings a unique combination of strategic thinking, operational excellence, and a strong sales focus. As the leader of two internationally operating consulting firms, he supports over 100 clients annually in achieving their goals and driving sustainable growth – both organically and inorganically.

Specializations: Project Management, Business analytics, Logistics Management, Business and Management Consultancy, IT-Consultancy, Strategic Planning, Supply Chain Management and Optimization, Strategic Planning.