An automated storage and retrieval system (AS/RS) can store inventory in a smaller footprint, but the densest design is not automatically the most productive one. The right system must move the required pallets, totes or cartons through receiving, storage, picking and dispatch at the times the warehouse needs them. Start by measuring demand and inventory patterns, then compare system types, building constraints, interfaces and full operating costs. A design that suits the average day may still create queues during peak periods, so test expected peaks and disruption scenarios before committing to equipment.

Start with the warehouse problem, not the equipment

Define what the AS/RS must improve. The main requirement might be more storage locations within a limited footprint, less travel for order picking, controlled access to stock, or a more predictable flow of work. These goals can point to different designs, and improving one may place pressure on another. For example, storing loads more densely can reduce access flexibility if the system has to move other loads to reach the one requested.

Set a measurable baseline before comparing proposals. Useful measures include inventory locations required, pallets or totes put away and retrieved, order lines picked, peak-hour demand, replenishment activity, travel or handling steps, and the labour and space used by the current process. Separate storage capacity from handling capacity: the system may have enough locations for all required stock but insufficient retrieval capacity for the busiest dispatch period.

Compare AS/RS types against the work they must perform

AS/RS is a family of systems, not one standard machine. The load, inventory profile, access pattern and building layout help determine which options are worth assessing. The table below is a starting point; actual capacity and performance depend on the selected configuration and the surrounding workflow.

automated warehouse storage system

System type Common load or use Planning strength Key limitation to assess
Unit-load crane Pallets or other large unit loads Can use tall storage aisles and automate pallet putaway and retrieval Aisle equipment, load specifications and access points can constrain layout and flow
Mini-load crane Totes, trays or cartons Automates storage and retrieval of smaller loads in dedicated storage structures Induction, picking and replenishment stations may become the limiting steps
Shuttle-based system Pallets, totes or cartons, depending on design Shuttles can serve multiple storage positions within a configured system Lane depth, access rules, lifts and transfer points affect retrieval sequence and capacity
Cube-based storage Typically bins or totes handled by robots Can use a compact storage grid with access provided at designated workstations Robot, port and workstation capacity must match the arrival of work
Vertical lift module Small parts stored on trays Brings selected trays to an operator access opening Tray size, item dimensions and the number of access points limit suitability

A unit-load crane may be a sensible option when pallet storage and retrieval are the central tasks. A tote-focused system may fit piece-picking operations better, but it still needs enough workstations and downstream capacity. Compare complete material flows, rather than ranking equipment by storage density or a supplier’s headline machine rate.

How to size throughput without creating a bottleneck

Throughput is the rate at which the whole process can complete useful work, not simply the number of movements a machine can make in ideal conditions. A pallet retrieval may be only one step before depalletising, replenishment, picking or dispatch. A tote may need to pass through induction, storage, retrieval and a picking station. If any linked step cannot keep pace, queues build even when the storage equipment has spare capacity.

Build the demand profile from operational data where possible. Use more than a daily average: record activity by shift and time period, distinguish putaway from retrieval, and identify periods when orders, replenishment and inbound receipts overlap. Include the mix of work, such as single-line and multi-line orders, full-pallet movements, tote retrievals and returns. Forecast changes in SKU count, order profile and seasonal demand rather than assuming that all future growth will resemble the present.

  1. Define the unit of work. Specify whether demand is measured in pallets, totes, cartons, order lines or completed orders. Keep measures distinct; a rate in containers per hour cannot be compared directly with a rate in order lines.
  2. Separate inbound and outbound demand. Estimate putaway, retrieval and replenishment activity. Identify when these tasks compete for shared equipment, lifts, conveyors or workstations.
  3. Model peaks and variability. Test busy periods, order waves, shift changes and uneven arrival patterns. Average demand can hide short periods when queues exceed available buffer space.
  4. Trace the full route. Map each load from receipt to its storage location and from retrieval to its next process. Include manual handling, exception checks and transfers between systems.
  5. Test constrained conditions. Ask how the operation performs when a machine, workstation or interface is unavailable, and how it recovers after a backlog. Confirm what fallback process is practical.

Ask suppliers to explain the assumptions behind their capacity figures: load mix, travel distances, simultaneous tasks, workstation availability, software rules and operating schedule. A quoted maximum under particular conditions is not the same as a dependable rate for the warehouse’s actual work. Use a flow model or simulation when interactions are complex, and make sure the scenarios reflect real order and inventory data.

Balance storage density with inventory access

Storage density should be measured against usable capacity, not just the number of positions drawn into a plan. The overall footprint also needs room for induction and discharge, picking or decanting, conveyors, safety provisions, maintenance access and other required equipment. Building columns, clear height, floor conditions, loading limits and services can affect what can be installed. Have qualified designers assess the building and the applicable local requirements before treating a layout as feasible.

automated warehouse storage crane

Inventory behaviour matters as much as the structure. Review the number and dimensions of SKUs, stock quantities, handling-unit variation, replenishment frequency and retrieval frequency. High-access items may need to be positioned or allocated so that they do not create avoidable travel or repeated reshuffling. Slow-moving stock may tolerate deeper storage or less direct access, provided the retrieval rules remain suitable for the operation.

Ask how the system selects a location and retrieves a load. Some designs may need to move other loads to reach a requested position; others depend on lanes, levels or configured access points. Clarify the rules for mixed stock, partial containers, empty locations, stock rotation and inventory counts. A design that fits the maximum stock quantity on paper can be difficult to operate if the SKU mix and location rules are not considered.

Plan the connections to the rest of the warehouse

An AS/RS works as part of a material-flow system. Receiving, identification, labelling, load inspection, pallet or tote preparation, induction and discharge all affect the equipment’s usable capacity. Define who or what delivers each load to the system, how exceptions are handled, and where completed retrievals go. An automated store can be starved of work at its input or blocked at its output if upstream and downstream processes are not sized and scheduled together.

Document the responsibilities of the warehouse management system (WMS), warehouse control system (WCS) and any warehouse execution system (WES). Depending on the design, software may manage inventory records, release work, direct equipment and report status. Confirm how orders are prioritised, how inventory locations are updated, what happens when a load fails a check, and how operators can see and resolve faults. Define ownership of interfaces between the AS/RS, conveyors, picking equipment and other systems before procurement.

Buffers can absorb short variations in flow, but they need a defined purpose and enough space to operate safely. Specify where loads wait, how they are sequenced and what happens when a buffer fills. Avoid treating extra buffer positions as a substitute for adequate throughput: a queue can postpone a blockage without removing its cause.

Compare the full cost of ownership

Initial equipment cost is only one part of the decision. Build a lifecycle view that includes building modifications, storage structure, handling equipment, controls and software, integration, installation, testing, training, maintenance and operating costs. Include the cost of required service arrangements and critical spares, as well as the effect of downtime on fulfilment and any fallback handling. The scope of quotes can differ, so compare inclusions and exclusions line by line.

automated warehouse storage system

Assess savings as carefully as costs. Reduced travel or manual handling may lower labour demand, but the result depends on the work removed, the new tasks created and how the operating model changes. Compare scenarios at expected low, normal and peak volumes. A system with higher capacity may be difficult to justify if the warehouse cannot use that capacity; a smaller design may be costly if growth soon requires extra shifts, equipment or a second handling process.

For each option, ask what it costs to handle the expected workload over the planning period and what assumptions drive that result. Consider energy, maintenance access, software support and the need to keep the operation running during service work. Also check which components can be expanded later and what changes that expansion would require. “Expandable” is only useful if the building, interfaces and operational plan can support the expansion.

Use a practical specification and acceptance plan

Before requesting final proposals, give suppliers the same operating information and ask them to respond to the same scenarios. A consistent specification makes it easier to compare system capacity, scope and limitations without relying on different assumptions.

  • Inventory profile: SKU count, load dimensions and weights, stock quantities, and handling-unit rules.
  • Demand profile: inbound, retrieval and replenishment volumes, order mix, operating shifts and peak periods.
  • Building information: available footprint and height, columns, floor and loading information, services and planned constraints.
  • Process interfaces: receiving, identification, picking, packing, dispatch, exceptions and existing software.
  • Performance expectations: required storage locations, defined throughput measures, availability assumptions and recovery needs.
  • Commercial scope: installation, integration, training, maintenance, spares, warranties, exclusions and future expansion options.

Agree how performance will be tested before installation is complete. Acceptance criteria should define the load and order mix, operating conditions, system boundaries, measurement period and treatment of exceptions. Include the software interfaces and workstations in the test, not just the storage machine. Plan training and a controlled transition from the current process, with a clear way to handle inventory discrepancies and system interruptions.

automated warehouse storage system

Common planning mistakes to avoid

  • Designing for average demand only. Test the periods when orders, receipts and replenishment overlap.
  • Comparing unlike capacity figures. Confirm whether a rate refers to machine cycles, loads delivered to a port, order lines picked or completed work.
  • Maximising locations at the expense of access. Check retrieval rules and handling effort for fast-moving and awkward inventory.
  • Leaving interfaces until late in the project. Define load standards, software ownership and exception flows before equipment selection is final.
  • Ignoring downtime and recovery. Establish how work will continue, what stock remains accessible and how backlogs will be cleared.
  • Comparing purchase prices alone. Include integration, facilities, service, training and operating costs in the same evaluation.

There is no single best automated storage and retrieval system for every warehouse. The strongest option is the one that meets the required storage and flow needs within the building, integrates with the operation and remains affordable to run. Before making a commitment, validate the peak-demand model, the full process interfaces and the assumptions behind each supplier’s performance and cost proposal.

Frequently Asked Questions

Does an AS/RS always increase warehouse storage capacity?

It can increase storage density by using space differently, but the result depends on the building, system design and required access areas. The usable gain may be reduced by workstations, conveyors, buffers, maintenance access and building constraints.

What information should a warehouse collect before choosing an AS/RS?

Gather inventory dimensions and quantities, SKU and load profiles, putaway and retrieval activity, order-line demand, replenishment patterns and peak-period data. Building information and details of existing software and material-flow processes are also needed for a meaningful design.

How can a business tell whether an AS/RS will meet its throughput needs?

Define throughput in operational units, such as pallets or totes retrieved and order lines completed, then model the whole process at peak demand. Check supplier assumptions and test the capacity of connected equipment, workstations and software as well as the storage machinery.

Can an AS/RS handle mixed inventory?

That depends on the system’s load specifications and location rules. Confirm permitted dimensions, weights, handling units and procedures for partial or irregular loads, then assess whether the proposed rules fit actual inventory and replenishment practices.

What should be included in an AS/RS cost comparison?

Compare equipment and installation alongside building work, software and integration, training, maintenance, spares and operating costs. Include the cost and operational consequences of downtime, and use consistent demand assumptions for every option.