But uncertain – though attractive – cost savings must be weighed against a substantial upfront investment. With new equipment and management/control systems required to operate it, recouping the investment can take a while. When flexibility is of the essence, it's no wonder businesses are hesitant to make that commitment.
An employee at Abel Womack, Inc., a warehouse systems integrator based in New England, states, "An AS/RS implementation isn't suitable for every business, but the equipment can provide huge benefits for companies facing particular challenges." If your business has these sorts of problems, it's worth researching your AS/RS options.
Moving to an automatic system is a sure way to use your warehouse space more efficiently, especially your vertical space, which is often sorely overlooked.
But not only vertical space can be used to your advantage. AS/RS equipment can also increase storage density horizontally by reducing the space needed for retrieval movement and reducing aisle width or eliminating aisles altogether. Smaller footprints also require less heating, lighting, and cooling.
Businesses where storage concerns are paramount – maybe expensive land prices or geographical constraints are keeping your footprint to a minimum, for instance – can find their costs reduced by deploying AS/RS equipment.
The higher the volume of orders leaving your warehouse, the more essential it is to bring down the cost per order. The largest operations stand to see the most benefit from implementing a fully automatic storage and retrieval system.
While looking at overall sales and order numbers is important, it's not enough to give a full picture. A large number of orders going out twice a day, for example, may see less benefit than a smaller overall number of orders frequently entering and exiting the warehouse. Both high volume and high velocity operations can see clear benefits from AS/RS implementation.
Automated systems can reduce the number of workers necessary for a given level of activity and increase the capacity of an existing workforce. Throughput is increased by bringing the goods to workers, automating picking, and reducing time spent on repetitive and mundane tasks. Recruitment and training costs can be reduced since the processes can be very systematized and validated at each step.
Warehouses that have difficult conditions for manual workers, such as freezers, cold storage, or warehouses covering large areas, can be good candidates for AS/RS systems.
Freezers are known for having high worker turnover as well as reduced picking accuracy. Automated systems can raise both worker morale and productivity while reducing labor costs overall. The AS/RS can take care of the heavy lifting and freezing conditions, and the dock or control area can be kept at a comfortable working temperature.
Damage is a problem in a warehouse environment. Delicate inventory is more likely to be damaged by frequent operations or worker clumsiness, and this can rack up unnecessary expenses. Manually operated machinery and heavy loads such as furniture or white goods are the biggest culprits for on-site injuries and the related worker's compensation claims. Moving to automatic storage and retrieval can cut the level of worker injuries.
Automatic storage and retrieval also offers benefits for highly valuable or controlled stock by restricting worker access, limiting theft opportunities, and improving inventory tracking.