An ASRS warehouse can store more inventory within a given footprint, but storage capacity alone does not make a warehouse faster or less expensive to run. The right system depends on the loads you handle, the shape of order demand, peak retrieval rates, available building space and the cost of connecting automation to existing operations. Before selecting equipment, map the full flow from receiving to dispatch and identify where work currently accumulates. Then size storage and throughput separately, test the layout against peak conditions, and compare the system’s lifetime costs with the performance gains it is expected to deliver.

What should an ASRS warehouse be designed to do?

An automated storage and retrieval system (ASRS) places loads into storage and retrieves them with automated equipment, often under instructions from warehouse software. Depending on the design, it may handle pallet loads, totes, cartons or smaller items. Some configurations bring goods to a workstation for picking; others retrieve full loads for replenishment or dispatch.

Start with the operational task, not the equipment name. A system intended to hold reserve pallets and feed a picking area has different demands from one that presents individual order items at workstations. Write down which inventory will go into the system, what must come out, how often it moves and what happens before and after each movement. This helps prevent a high-capacity installation from becoming a bottleneck at its input or output points.

Compare ASRS types by load and workflow

ASRS designs are not interchangeable. The following comparison is a starting point; equipment capabilities and configurations vary by supplier, site and application. Ask vendors to confirm that a proposed system can handle your actual load dimensions, weights, packaging and movement profile.

System type Typical load Often considered for Key planning question
Pallet-load system, such as a storage-and-retrieval crane Unit loads on pallets Dense reserve storage with automated pallet retrieval Can the building, pallet quality and handling interfaces support the proposed configuration?
Mini-load system Totes, trays or cartons, depending on design Automated storage and retrieval of smaller load units Will the load unit and retrieval sequence match picking and replenishment needs?
Shuttle-based system Pallets or smaller load units, depending on the system High-density storage where the selected configuration suits the required flow How do the shuttles, lifts, transfer points and workstations perform together at peak demand?
Vertical lift module (VLM) Items stored on trays Compact, controlled access to a range of smaller items Do tray presentation and operator access suit the expected order and replenishment pattern?

A pallet-load system may suit a warehouse that needs automated access to unit loads, while a VLM may be a better fit for a defined range of smaller items picked at a workstation. A shuttle system’s suitability depends on its specific design and load type; the label alone does not establish its capacity or performance. Compare alternatives against the same operating assumptions, including load sizes, required retrieval rates, shifts and planned growth.

automated warehouse storage retrieval cranes

Size storage capacity and throughput separately

Storage capacity answers how much inventory the system can hold. Throughput answers how much work it can process over time. They are related, but one does not guarantee the other. A system can provide ample locations yet struggle to deliver the right inventory quickly enough during a busy period.

Build the demand picture from actual warehouse data where possible. Review inventory levels, SKU profiles, order lines, replenishment movements and fluctuations by day or shift. Average activity can hide short periods when many orders need the same work area. For design purposes, distinguish routine demand from the peaks the operation must handle without creating an unacceptable backlog.

  • Count the relevant movements. Separate putaway, retrieval, replenishment and picking activity. A pallet moved to a picking zone and an item presented for an order are different work steps.
  • Check the order profile. Consider how many lines are picked per order, how frequently SKUs recur and whether orders have deadlines or release waves.
  • Include replenishment. Picking stations may need replenishment while customer orders are being processed. Model these demands together rather than treating them as unrelated.
  • Identify the constraint. The limiting point could be a lift, conveyor, workstation, packing area or dispatch process rather than the storage equipment itself.
  • Test peak scenarios. Ask the supplier to show the assumptions behind its throughput proposal, including how many stations or equipment units are operating and what happens when demand is uneven.

Request performance estimates for a clearly defined operating scenario, not a headline rate without context. Confirm what the rate measures, where it is measured and whether it includes the surrounding transfers, operator work and software controls. A credible design discussion should also address queues and recovery after a temporary interruption.

Check the building and the full material flow

High-density storage can change how space is used, but the equipment must fit the site and connect to the rest of the warehouse. Review clear height, floor conditions, columns, access routes and the positions of receiving, picking, packing and dispatch areas. The usable storage footprint is only one part of the layout; equipment access, transfer points, workstations and service areas also need space.

Map each load’s route through the operation. Consider how goods are identified and checked at receipt, how they enter the system, where retrieved loads go, and how exceptions are handled. If operators must repeatedly move items between an ASRS output point and a separate picking or packing area, those transfers can reduce the benefit of dense storage.

For an existing building, assess structural and operational constraints before settling on a system. For a new facility, coordinate the storage design with building services, fire protection, egress and maintenance access. Have suitably qualified professionals assess site-specific engineering and safety requirements; a supplier layout is not a substitute for checking that the facility can support the proposed installation.

automated warehouse storage system

Include software, people and exceptions in the design

Automation depends on accurate inventory data and reliable communication between systems. Establish which software manages stock and order priorities, which controls the equipment, and how information passes between them. The precise software arrangement varies, but the operating design should cover inventory updates, task sequencing, replenishment requests and status reporting.

Plan for exceptions as carefully as normal flow. Loads may arrive damaged, labels may not scan, inventory may be missing, or an order may need to be changed after work has started. Define where these cases go, who can resolve them and how stock records are corrected. If exception handling requires improvised workarounds, the system can create extra handling and reduce confidence in inventory accuracy.

Staff responsibilities will change rather than disappear. Determine who monitors the system, replenishes work areas, handles exceptions and coordinates with maintenance. Include training and procedures for routine operation, safe access and recovery from faults. Confirm service arrangements, expected maintenance access and the process for obtaining replacement parts or technical support before committing to a design.

Compare total operating cost with the benefit

Purchase price is only one part of the business case. Estimate the cost of the full installation and its ongoing operation, then compare that with the costs and constraints of the current process. Use assumptions that management can review, and test how the case changes if order volume, labour availability or operating hours differ from the forecast.

  • Initial costs: equipment, installation, building preparation, software interfaces, commissioning and any required changes to the site.
  • Ongoing costs: maintenance, service support, replacement parts, energy, software and training.
  • Transition costs: implementation planning, testing, staff time and disruption while inventory and workflows are moved or changed.
  • Expected benefits: usable storage, reduced travel or handling, changes to labour requirements, improved access to stock or support for a defined service need.

Do not count every potential benefit as guaranteed savings. For example, labour may be redeployed rather than removed, and extra storage capacity has limited value if the business does not need it. Make the case explicit about which costs are avoided, which resources are reassigned and what level of use the system needs to justify its expense.

automated warehouse

A practical planning sequence

  1. Document the current operation. Record inventory, movement patterns, order profiles, constraints and known service issues.
  2. Define the job for automation. Specify the products and load units involved, the processes to automate and the outcomes the project must support.
  3. Set capacity and throughput requirements. Use representative and peak demand, including replenishment and downstream work.
  4. Shortlist system types. Compare only designs that can handle the loads and workflow, then assess their fit with the building.
  5. Validate the complete flow. Review input and output points, workstations, software interfaces, exception handling and recovery procedures.
  6. Compare costs and assumptions. Evaluate installation and operating costs alongside realistic benefits, and test the business case against lower or higher demand.
  7. Agree on acceptance criteria. Define how the installed system will be tested, what operating conditions apply and how outstanding issues will be resolved.

Common planning mistakes to avoid

  • Choosing by storage density alone. Dense storage does not resolve a picking, packing or dispatch constraint elsewhere in the operation.
  • Designing around average demand. A system that fits a quiet period may accumulate work during predictable peaks.
  • Ignoring inventory quality. Inconsistent load dimensions, packaging or identification can complicate automated handling. Verify accepted load requirements before selecting equipment.
  • Underestimating integration work. Clarify data ownership, software interfaces, testing responsibilities and exception processes early.
  • Assuming a forecast is a guarantee. Review the conditions behind any proposed performance figure and define how the system will be assessed after installation.
  • Leaving growth undefined. Decide whether the design needs to accommodate expansion, and establish what changes that would require. Avoid paying for capacity with no operational case.

Frequently Asked Questions

Does an ASRS warehouse always reduce labour costs?

No. Automation changes the work involved, but the overall labour effect depends on the existing process, the tasks transferred to equipment and the people needed to operate and support it. Model labour changes as a specific benefit only when the operating plan shows how they will be achieved.

Is storage density the same as storage capacity?

No. Density describes how compactly inventory is stored, while capacity refers to the amount the system can hold. The usable result depends on building constraints, load characteristics, required access and the space needed for equipment and material flow.

How should throughput be specified to a supplier?

Describe the required movements and the conditions under which they must be handled, including peak demand, load types, workstations and replenishment. Ask the supplier to state what its proposed rate measures and which assumptions or interfaces are included.

Can an ASRS be installed in an existing warehouse?

It may be possible, but feasibility depends on the building, available space, structural conditions, utilities and the operation’s ability to accommodate installation and workflow changes. Assess the site and material flow before choosing a system design.

What should be checked before signing a contract?

Confirm load specifications, scope of supply, software responsibilities, site work, performance assumptions, training, service arrangements and acceptance tests. Make sure the contract and project plan explain how the system will be tested under agreed operating conditions.

The strongest ASRS warehouse plan starts with a defined operational need, then matches the storage design to real movement patterns, site constraints and lifecycle costs. If the system’s capacity, throughput and supporting workflows all fit the business case, automation can address a specific warehouse constraint rather than add expensive capacity the operation does not need.