Automatic Storage and Retrieval Systems (AS/RS): The Path to Warehouse Automation

"Efficiency is doing things right; effectiveness is doing the right things.” — Peter Drucker

Warehousing and logistics are the backbone of today’s global economy. Whether it’s the latest gadgets, groceries, or critical medical supplies, these goods rely on a well-oiled system to reach their destinations swiftly. One of the unsung champions of this logistical ballet is the Automated Storage and Retrieval System (AS/RS). In this article, we will explore the fascinating world of AS/RS systems, from their core principles to their applications across diverse industries.

What is AS/RS?

An AS/RS is a sophisticated warehouse automation solution designed to efficiently store and retrieve goods from a high-density storage system. It combines machinery, software, and controls to automate the handling of materials, typically in large distribution centers and warehouses.

What are the features of an AS/RS System

1. High-Density Storage: AS/RS systems are engineered to make every inch of your warehouse count. They employ vertical and horizontal storage techniques to maximize space utilization, allowing you to store a substantial volume of goods in a smaller footprint.

2. Automation at its Finest: Imagine a world where repetitive, labor-intensive tasks in material handling are a thing of the past. AS/RS systems offer full automation, reducing reliance on manual labor and, in turn, increasing efficiency.

3. Precision and Accuracy: Gone are the days of inventory discrepancies and order picking errors. AS/RS systems provide meticulous control over your inventory and ensure that the right item is retrieved every time.

4. Inventory Tracking: Real-time inventory tracking is the bedrock of effective warehousing. AS/RS systems deliver this capability, enabling you to maintain precise stock levels and mitigate the risk of stockouts or overstocking.

5. Space Optimization: Every square foot of warehouse space is valuable real estate. AS/RS technology optimizes space utilization, enabling you to store more products within the same area.

6. Adaptability and Customization: AS/RS systems can be tailored to accommodate a variety of storage configurations, from unit loads to mini loads and various types of carousels.

7. Seamless Software Integration In a digitally connected world, AS/RS systems can integrate seamlessly with Warehouse Management Systems (WMS) and other software, enhancing overall warehouse operations and order processing.

How do AS/RS systems work?

It is a six part system which includes both hardware and software.

a) Storage Rack System: AS/RS systems consist of a tall storage rack structure with multiple shelves or levels. These racks can be single or double deep, allowing for various storage configurations.

b) Crane or Shuttle System: The heart of an AS/RS is a robotic crane or shuttle system. These machines move vertically and horizontally within the rack structure to access and retrieve items. Here’s how they work:

Vertical Movement: The crane or shuttle moves up and down along the height of the rack structure using a vertical mast or guide rails. This allows it to access items stored at different levels.

Horizontal Movement: The crane or shuttle also moves horizontally along the aisles between the racks. This movement is precise and enables access to specific storage locations.

c) Item Retrieval: When an order is placed or when inventory needs to be replenished, the AS/RS software determines the most efficient retrieval path. The crane or shuttle moves to the designated location.

d) Storage and Retrieval: Depending on the type of AS/RS, one of the following methods is used for storage and retrieval:

• Unit Load AS/RS: These systems handle large pallets or containers. The crane typically uses forks to lift and transport the entire unit to the retrieval point.
• Mini Load AS/RS: These systems handle smaller items, often in totes or cartons. A shuttle or robotic arm retrieves individual items and transports them to a pick-up point.

e) Automation Software: AS/RS systems are controlled by specialized warehouse management software. This software manages inventory, tracks item locations, and optimizes storage to maximize space utilization.

f) Inventory Control: AS/RS systems offer precise control over inventory. They can track quantities, expiration dates (in the case of perishable goods), and even manage first-in, first-out (FIFO) or last-in, first-out (LIFO) inventory strategies.

Where are AS/RS used?

Automated Storage and Retrieval Systems (AS/RS) find applications across a wide range of industries due to their ability to optimize storage, increase efficiency, and enhance inventory control. Here are some common applications of AS/RS systems in different industries:

Manufacturing:

• Raw Material Storage: AS/RS systems can efficiently store and retrieve raw materials needed for production, reducing the risk of material shortages.
• Work-in-Progress (WIP) Handling: AS/RS helps manage and organize WIP inventory, ensuring that components are readily available for assembly processes.
• Finished Goods Storage: After production, AS/RS can store finished products until they are ready for shipment.

Retail, E-commerce, 3PL (Third-Party Logistics) and Distribution:

• Order Fulfillment: AS/RS plays a crucial role in e-commerce warehouses by automating the storage and retrieval of products for order fulfillment.
• Returns Processing: Automated systems help manage and restock returned items efficiently.
• High-Density Storage: In retail, AS/RS is used to maximize space utilization in distribution centers and backrooms.
• Multi-client Warehousing: 3PL providers use AS/RS to efficiently manage inventory for multiple clients in shared warehouses.
• Cross-Docking: AS/RS can support cross-docking operations, where products are quickly transferred from inbound to outbound shipments.

Pharmaceuticals and Healthcare:

• Medication Storage and Dispensing: AS/RS systems are used in hospitals and pharmacies to store medications securely and retrieve them accurately for patient care.
• Medical Device Storage: Medical equipment and devices are stored and tracked efficiently in AS/RS systems.

Food and Beverage:

• Cold Storage: AS/RS systems are employed in cold storage warehouses for storing perishable goods at controlled temperatures.
• Inventory Control: They help manage the inventory of food and beverage products, ensuring freshness and minimizing waste.

Automotive:

• Parts Storage: AS/RS systems efficiently manage the storage and retrieval of automotive parts, reducing downtime in manufacturing and assembly processes.
• Tool and Equipment Handling: Tools and equipment required in automotive manufacturing are stored and retrieved with precision.

Other than these, they also find a lot of applications in Aerospace for Aircraft Parts Storage and Inventory Management, Electronics for Components Storage and Inventory Control, other applications in Textiles, Apparel and Chemical industries.

Does AS/RS come in one-size-fits-all or come in different types?

Automated Storage and Retrieval Systems (AS/RS) come in various types, each suited for specific scenarios and industries based on their design and functionality. Let’s explore the different types of AS/RS systems and the scenarios in which they are commonly used:

Unit Load AS/RS:

Description: Unit Load AS/RS systems are designed to handle large and heavy items, typically pallets or large containers.

Use-case:

• Manufacturing: These systems are often used in manufacturing facilities to store raw materials, work-in-progress (WIP), and finished goods on pallets.
• Distribution Centers: Unit Load AS/RS is well-suited for high-volume distribution centers where palletized products need to be stored efficiently.

Why: Unit Load AS/RS is ideal for scenarios where there’s a need for high-density storage of large and heavy items. They optimize space usage and reduce the need for extensive manual labor.

Mini Load AS/RS:

Description: Mini Load AS/RS systems are designed for handling smaller items, typically in totes, cartons, or bins.

Use-case:

• E-commerce Fulfillment: These systems are commonly used in e-commerce warehouses where a wide variety of small items need to be stored and retrieved quickly.
• Pharmaceuticals and Healthcare: Mini Load AS/RS can efficiently manage the storage and retrieval of pharmaceuticals, medical devices, and small healthcare products.

Why: Mini Load AS/RS is suited for scenarios with high SKU (stock-keeping unit) counts and frequent order picking of smaller items. They improve accuracy and speed in order fulfillment.

Vertical Lift Modules (VLMs):

Description: VLMs consist of vertical columns with trays or bins that are automatically delivered to an access point.

Use-case:

• Parts Storage and Retrieval: VLMs are used in industries like automotive and aerospace to store and retrieve parts and components.
• Office Environments: In office settings, VLMs can store documents, supplies, and other materials efficiently.

Why: VLMs maximize vertical space and are suitable for scenarios where space is limited or where easy access to parts and items is required.

Horizontal Carousels:

Description: Horizontal Carousels consist of multiple bins or shelves mounted on a rotating track.

Use-case:

• Order Picking: Horizontal Carousels are used for batch order picking in scenarios where items are relatively small and need to be picked quickly.
• Pharmacy Automation: They are used in pharmacy settings for the automated storage and retrieval of medications.

Why: Horizontal Carousels optimize order picking processes, reduce travel time, and enhance order accuracy in scenarios with frequent order changes.

Vertical Carousels:

Description: Vertical Carousels are similar to horizontal carousels but rotate vertically around a central axis.

Use-case:

• Automated Storage: Vertical Carousels are used to store and retrieve a variety of items in manufacturing and distribution settings.
• Tool Storage: They are employed in workshops and manufacturing facilities for storing and accessing tools and equipment.

Why: Vertical Carousels offer high-density storage in a small footprint and are ideal for scenarios where space is limited.

Shuttle Systems:

Description: Shuttle systems use robotic shuttles to transport goods within the rack structure, eliminating the need for a crane.

Use-case:

• High-Density Storage: Shuttle systems are used in scenarios where a high degree of storage density is required, such as cold storage environments.
• Automated Buffering: They can be used for buffering products in production lines.

Why: Shuttle systems offer high storage density, fast retrieval times, and are adaptable to various warehouse environments.

Choosing the right type of AS/RS system depends on many factors including the type and size of products, order volume, space availability, and the specific goals of the warehouse or distribution center. By selecting the appropriate AS/RS system, businesses can significantly improve efficiency, accuracy, and overall warehouse performance. We at Levintutu Automation, bring our experts to your warehouse and help find the best types of AS/RS suitable for your needs.

What are the advantages of AS/RS Systems:

There are many advantage of installing an AS/RS system. Some of them are mentioned below:

1. Improved Efficiency With AS/RS systems at the helm, material handling becomes a symphony of precision and speed. These systems automate storage and retrieval tasks, leading to a significant improvement in operational efficiency.

2. Reduced Labor Costs Say goodbye to the costly reliance on manual labor. AS/RS systems streamline material handling processes, effectively reducing labor costs associated with picking, replenishment, and other tasks.

3. Enhanced Order Accuracy Precision is the watchword when it comes to AS/RS systems. The meticulous control they offer translates into fewer picking errors, ensuring that the right products reach customers, leading to higher satisfaction.

4. Space Savings The high-density storage capabilities of AS/RS systems enable businesses to make optimal use of available warehouse space. This can lead to significant savings on real estate costs.

5. Inventory Control Real-time inventory tracking isn’t just a luxury; it’s a necessity in today’s fast-paced world. AS/RS systems enable organizations to maintain accurate stock levels, reduce excess inventory, and minimize the risk of stockouts.

6. Faster Order Fulfillment AS/RS systems are masters of speed, resulting in faster order processing and shorter lead times. This translates to quicker delivery to customers.

7. Increased Throughput AS/RS systems can handle a high volume of items in a short time, increasing the overall throughput of the warehouse or distribution center.

8. Improved Safety Safety in the workplace is paramount. AS/RS systems reduce the risk of accidents and injuries associated with manual material handling tasks, ensuring a safer working environment.

9. Better Space Utilization AS/RS systems unlock vertical space, a valuable resource, especially in high-cost real estate areas.

10. Scalability Designed with growth in mind, AS/RS systems are scalable, accommodating expanding operations without significant changes to storage infrastructure.

11. Enhanced Customer Service By reducing order errors and lead times, AS/RS systems contribute to better customer service and satisfaction, which can lead to increased customer loyalty.

What is the ROI and Cost Benefit Analysis of installing AS/RS systems

There exists different factors that needs to be considered before estimating the ROI, breakeven point or cost benefit analysis.

1. Industry: The type of industry will have a significant impact on the ROI of an AS/RS. For example, industries with high-volume, low-SKU operations, such as e-commerce and retail, are more likely to see a positive ROI than industries with low-volume, high-SKU operations, such as healthcare and manufacturing.
2. Company size: Larger companies are generally better able to justify the upfront investment in an AS/RS. However, smaller companies can also benefit from AS/RS, especially if they are experiencing rapid growth.
3. Storage requirements: The type and amount of products that need to be stored will also affect the ROI of an AS/RS. For example, AS/RS systems that are designed to store heavy or bulky items are typically more expensive than those designed for lighter items.
4. Throughput requirements: The number of orders that need to be processed per day will also affect the ROI of an AS/RS. AS/RS systems that are designed for high-throughput operations are typically more expensive than those designed for lower-throughput operations.
5. Labor costs: Labor costs vary significantly from country to country. In countries with high labor costs, such as the US and Europe, an AS/RS can be a significant investment saver.

There are different cost elements of an AS/RS that includes:

• The upfront cost of the system
• Installation costs
• Maintenance costs
• Energy costs

To calculate the ROI of an AS/RS, businesses need to estimate the benefits and costs of the system over a period of time, typically three to five years. The ROI can then be calculated using the following formula:

In the Asian market, the demand for AS/RS systems is growing rapidly, driven by factors such as the rise of e-commerce and the increasing complexity of supply chains. However, the upfront cost of AS/RS systems can be a barrier for some businesses in the region.

To overcome this barrier, there exists options of offering leasing and financing options to businesses. Additionally, some governments in the region are offering incentives for businesses that invest in AS/RS systems. The European and US markets are more mature markets for AS/RS systems. However, there is still room for growth, as many businesses in these regions have yet to invest in AS/RS technology.

The ROI of AS/RS systems in the European and US markets is typically higher than in the Asian market, due to higher labor costs.

Conclusion

In the ever-evolving landscape of warehousing and logistics, AS/RS systems emerge as champions of efficiency, accuracy, and adaptability. By harnessing the power of automation, organizations can unlock the full potential of their warehouses. AS/RS systems are the key to doing things right and doing the right things, and they are shaping the future of warehousing as we know it.

The 3Key Takeaways are:

• AS/RS systems are the unsung heroes of efficient warehousing, automating the storage and retrieval of goods.
• They come in various types, each tailored to specific use-cases and industries.
• It is important to estimate ROI and do cost-benefit analysis of installing an AS/RS system for your use-case

Now, if you have specific questions or if you’d like to discuss a problem related to AS/RS systems, please feel free to share more details.

Tech@Levintutu is the technical team at @Levintutu who writes on latest technology and its applications in industrial automation. To read more about us, visit our case studies at https://levintutu.com/case-study/. We is really excited about writing more on application of technology, Artificial Intelligence, industrial automation, AMRs, AGV, ASRS, Industrial IOT, etc. Follow us on https://www.linkedin.com/company/levintutu-automation/.