Did you know that warehouses’ automated storage and retrieval systems have productivity rates as high as 85% compared to traditional manual operations? This new technology is revolutionizing the field of logistics at never-before-seen rates.
What is an Automated Storage and Retrieval System(AS/RS)?
An automated storage/retrieval system (AS/RS) is the ultimate solution in warehousing computerization. Computer-driven AS/RS positions and retrieves loads into predetermined storage positions without operator intervention AS/RS technology has evolved from lift modules to highly sophisticated automated pallet storage and retrieval systems to manage a myriad of inventory issues across many different industries.
So, what makes these automated storage systems valuable in our competitive marketplace? Besides the technology, it offers practical benefits to operations of any size. We’ll discuss these in the next section.
Top 10 Benefits of Automated Storage and Retrieval Systems
Here are the top 10 reasons why AS/RS is such a game-changer for warehousing operations of our time:
Maximized Storage Density and Space Efficiency
AS/RS technology completely redefines warehouse space usage. With overhead space and reduced aisle needs, the systems can potentially boost storage capacity to 60-85% more than traditional racking systems.
Their compactness allows inventory to be kept in densely packed patterns. Vertical optimization with automated storage solutions will enable businesses to fit significantly more inventory into the same footprints and postpone or even avoid the need to expand buildings altogether.
For city centers where land is so valuable, the space savings of an AS/RS can be worth millions of dollars in expansion expense avoided. Expanding your inventory capacity without expanding your square feet is one of the most appealing benefits of automated storage and retrieval systems.
Dramatic Reduction in Operational Costs
The financial savings of an AS/RS extend far beyond labor savings. Although the automated storage and retrieval system cost may appear high initially, savings in the long run offer sufficient justification for the expense.
These systems significantly reduce the cost of doing business with inventory, for example, reducing product damage, reducing the cost of utilities for less area, and reducing equipment for materials handling. Operational cost savings of 25-40% have been achieved in many plants with full implementation.
Furthermore, AS/RS accuracy prevents costly errors like misplaced stock and pick mistakes. It also translates into bottom-line savings that are cumulative in their effect and bring repeat returns on the investment.
Enhanced Inventory Accuracy and Traceability
Inventory accuracy is not something that can be achieved in today’s marketplace. AS/RS offers unmatched accuracy, with most systems achieving 99.9% accuracy and higher—a stark contrast to the 80-90% accuracy with traditional systems.
This accuracy is attained through eradicating human error via barcode scanning, RFID, and exact computer management. Each merchandise action is followed and recorded, making full traceability across the supply chain.
Real-time stock transparency from automated storage systems makes managing stock more of a continuous process than sporadic counting activity. Inventory transparency facilitates wiser procurement decisions, prevents stockouts, and reduces surplus stock—all of which are major contributors to keeping working capital at the optimum levels.
Faster Order Fulfillment Speeds
Speed is the key to competitiveness in the on-demand economy of our day. AS/RS significantly accelerates order processing rates, with retrieval intervals often counted in seconds rather than minutes or even hours.
Automatic storage and retrieval systems eliminate unproductive travel time that can consume up to 70% of the picker’s day in traditional systems using goods-to-person picking practices. Materials are brought directly to operators for rapid ergonomic processing.
These efficiencies translate into shorter order cycle times, subsequent order cut-off times, and the ability to offer same-day or one-day delivery, increasing customer satisfaction and loyalty.
Improved Workplace Safety
Warehouse accidents cost businesses billions of dollars annually in workers’ compensation, lost productivity, and related expenses. An automated pallet storage and retrieval system reduces these risks by removing humans from hazardous tasks.
They take workers off of ladder climbing, forklift truck travel in aisles with high traffic volume, and hand lifting of bulky loads—all frequent causes of work-related injury. The ergonomic workstations part of AS/RS also reduce repetitive motion injury and fatigue.
The security benefits extend beyond safety by improving security for valuable stock, safe storage of controlled medication, and management of dangerous materials. A safe working environment protects businesses’ workforce and reduces insurance costs and compliance issues.
Scalability for Business Growth
Future-proofing operations are also a key consideration in any significant investment in infrastructure. Among the primary advantages of automated storage and retrieval systems is their inherent scalability for future business expansion.
Unlike traditional warehousing systems that may require intrusive expansion work, AS/RS systems can be built with expansion potential built-in. Storage modules may be added incrementally, and software packages may be upgraded for increased throughputs without substitution of the complete system.
This scalability allows firms to align their investment in automation with their growth curve, adding capacity precisely when needed and not over-investing in underused infrastructure.
Lower Labor Dependency
Reducing labor dependency is imperative during chronic labor shortages and increasing wage rates. Automated storage systems can substantially reduce labor requirements for high-frequency storage and retrieval operations.
An efficiently planned AS/RS can operate with 60-75% fewer workers than are employed in conventional warehousing operations. Staff savings are particularly advantageous for operations with labor-constrained markets or high employee turnover.
Work efficiency also translates into training costs, supervisory needs, and administrative overhead. By shifting human resources away from repetitive work to work of greater worth, businesses can maximize their workers’ productive potential while lessening recruitment challenges.
Sustainability and Energy Efficiency
There are increasing environmental considerations influencing warehousing design and operations AS/RS technology offers strong sustainability benefits that complement corporate environmental efforts with minimal operational costs.
The small size of automated systems reduces overall building size with decreased heat, cooling, and lighting loads. A number of the systems operate at night and with decreasing temperatures, further reducing energy consumption.
Seamless Integration with Warehouse Management Systems
AS/RS achieves its full potential when perfectly integrated with warehouse management systems (WMS). This integration provides for intelligent environments where inventory decisions are informed through advanced algorithms.
Integrated systems enable advanced inventory tactics like wave planning, batch picking, and zone optimization. Information sharing in real-time from the AS/RS and the WMS avoids information lag and enables dynamic decision-making for the current scenario.
The integration also transcends the four walls of the warehousing unit to connect with enterprise systems as a complete entity, including ERP, transportation management, and e-commerce systems. This creates an end-to-end digital supply chain with unparalleled visibility, control, and responsiveness.
High ROI for Long-Term Operations
Though the up-front cost of automated storage and retrieval systems is a considerable capital outlay, the long-term return on investment is strong. Paybacks of 3-5 years are realized for most systems with extended benefits of 20+ years.
The ROI calculation must include indirect benefits (improved accuracy, faster fulfillment, enhanced safety) and direct savings (labor, space, utilities). When properly calculated, most organizations have discovered that AS/RS yields internal rates of return in excess of 20%.
Also, such systems tend to have high residual values across their life, with many parts being reusable for many years with proper maintenance. This factor makes their lifecycle costs outstanding, thus making investments in AS/RS appealing to innovative organizations.
In Conclusion
The benefits of automated storage and retrieval systems extend far beyond mere automation. These new technologies are a holistic end-to-end re-engineering of warehousing operations, translating fixed storage buildings into dynamic order-fulfillment engines capable of meeting the future’s logistics challenges.
Despite the careful strategy and high cost required for the automation journey, the subsequent competitive advantages of greater efficiency, accuracy, and scalability position businesses for long-term success in an increasingly challenging environment.
Are you ready to learn how automated storage systems can transform your warehousing operations? We provide complete consulting services to compare options, design optimal systems, and install solutions that meet your needs. Contact us today for a free consultation and learn how automation can give your company a strategic advantage.
