An automated storage and retrieval system, commonly known as AS/RS, is a computer-controlled system that effectively stores and replenishes loads from specific locations.
AS/RS technology is widely used in warehouses, manufacturing units, and distribution centres for materials transport and inventory management purposes.
These warehouse automation systems are commonly used in cold storage, automotive, pharmaceutical, manufacturing, food and beverage, and e-commerce applications.
It’s important to understand that these systems are not a perfect fit for every industry, operation, or business.
To help you determine whether or not implementing warehouse automation makes sense for your operation, we’ve compiled a list of the major pros and cons of AS/RS that you should consider before making any decision.
Advantages of Automated Pallet Racking or Automated Storage and Retrieval Systems (AS/RS)
Reduced Labor Costs
Automated storage and retrieval systems reduce the variable cost of operations by reducing the need for manual labor for tasks such as picking, storing, assembly, and inventory replenishment. These costs are variable, with expenses such as overtime, benefits, and payroll taxes adding to the total cost of manual labor.
Reduction of variable costs
Automated storage and retrieval systems reduce the variable cost of operations by reducing the need for manual labor for tasks such as picking, storing, assembly, and inventory replenishment. These costs are variable, with expenses such as overtime, benefits, and payroll taxes adding to the total cost of manual labor.
Automating manual, repetitive storage, and retrieval costs
Automating these tasks increases accuracy and efficiency while also freeing up human workers to focus on higher-value activities.
Better safety
Human workers who handle manual, repetitive tasks for several hours can experience fatigue and muscle strain, increasing the risk of errors and injury.
Likewise, errors made when operating heavy equipment in a manufacturing or warehouse environment can be dangerous, resulting in injury or death.
By allowing AS/RS systems to manage the components of your operation that can be automated, these inefficiencies can be removed, ultimately reducing waste and increasing output.
And all of this will allow your operation to become more accurate and, therefore, profitable.
Better space utilisation
AS/RS carries another benefit for operations that are constrained by a small footprint. By making better use of the space available in a facility, AS/RS can remove the need for a costly redesign or expansion.
AS/RS typically requires narrower aisles than do human-operated forklifts; racks can reclaim vertical space, and automation can allow for high-density storage that is difficult to achieve by traditional means.
Can be Modular
Though an AS/RS system can be a costly expense for an operation to absorb, one often overlooked benefit is the fact that they can be modular.
An operation can migrate inventory segments into AS/RS one at a time; for example, prioritising fast-moving product first, limiting initial expense, and allowing you to slowly transition to full automation.
Disadvantages of Automated Storage and Retrieval Systems (AS/RS)
High Initial Investment
Installation and implementation of warehouse automation and retrieval systems are costly.
The initial capital investment can be significant and installation requires substantial infrastructure changes.
If a company is looking for a long-term solution, then the cost-benefit-analysis can show a positive ROI over the long term, but for companies in need of a faster return on their investment, AS/RS solutions may not be practical.
For smaller companies, the large initial capital investment is often cost-prohibitive.
Maintenance
As with any kind of equipment or technology, AS/RS will need to undergo routine maintenance and occasional repair.
This will undoubtedly lead to some operational downtime as occasional repairs and maintenance are made.
And though still cheaper than the ongoing costs of hiring and employing additional staff, the costs of this maintenance should be considered before implementing any new system.
Not Suitable for Highly-Variable Operations
AS/RS, like all automation technologies, are best suited for operations that have regular, predictable, and repetitive tasks.
Operations that vary widely in terms of product or mate-rials handled from week to week or month to month may find it difficult to make AS/RS fit into their business plan.
Because AS/RS works according to preset systems, processes, and analysis, rapid change can be difficult to facilitate.
This sort of system is best for warehouses with a small number of SKUs who don’t need to access all of their inventory all of the time; otherwise, you may be waiting for a machine to move your pallet racks when you could have just as easily (or even more efficiently) walked there to pick it up yourself.
Can Require Technical Skill and Retraining
As with any new warehouse equipment, your employees will need to be adequately trained to safely handle your new AS/RS systems and get the most out of the technology.
This will, of course, lead to some downtime while training takes place, and could lead to turnover of current staff.
The Bottom Line
Though Motorised Pallet Racking is a powerful tool that can dramatically increase productivity, efficiency, and profitability for many operations in many industries, it isn’t for everyone.
If you are considering implementing an automated storage and retrieval system in your facility, be sure to weigh the pros and cons of AS/RS use that we have outlined to determine whether they would complement your operations.
PRS can help you determine whether a motorised or non-motorised system is the right choice for your warehouse automation.
Once we’ve done that, our team can give you a comprehensive quote on having the system installed in your space, including material costs and even installation from our professional teams.
We’ll make sure you get the assistance, supplies, and equipment that you need to develop the perfect setup for your warehouse.
Contact us today if you would like to know more about warehouse automation.
Pallet Racking Solutions designs, supplies and installs quality pallet racking and warehouse storage solutions, New Zealand wide. Follow our blog for the latest innovations, new tech, safety and compliance, case studies and in-depth explanations of our solutions.