Automated Storage makes a comeback

New flexibility has made automated storage/retrieval systems, carousels and vertical lift modules more valuable.

By Bernie Knill, Editor at Large -- Modern Materials Handling, 12/1/2005

It wasn't too long ago, 2002 to be precise, that you could say automated storage and retrieval systems (AS/RS) bottomed out. Only 25 new systems were booked for the entire year, according to the AS/RS Product Section of Material Handling Industry of America.

But last year, 51 new systems were booked. What changed?

The uptick represents a maturing of AS/RS "when it comes to more robust designs, greater flexibility and capabilities, and extremely high reliability," said Dick Ward, AS/RS Product Section managing executive, when announcing the numbers earlier this year.

Better yet, these trends are not confined to AS/RS, which is just one segment of automated storage. In fact, much the same is also happening with vertical and horizontal carousels as well as vertical lift modules (VLMs).

In fact, all aspects of automated storage are giving way to more flexible materials handling, says Dan Labell, president of Westfalia Technologies (717-764-1115).

Consider carousels and VLMs, says Ed Romaine, marketing director at Remstar (207-784-1381). Horizontal carousels offer higher throughput while vertical carousels offer tremendous space savings on certain items. "On the other hand," Romaine adds, "a vertical lift module will give you the ability to deal with a wide range of sizes and maximize space utilization within the storage equipment."

And that's just the physical side of the flexibility equation.

"What has also changed is the software and information flow," says Bob Rienecke, vice president of sales, Diamond Phoenix (207-784-1381). "People are demanding real-time, online information. People are demanding that their systems be more flexible and able to adjust storage and buffer systems accordingly."

And while Rienecke was referring to carousels and VLMs, the same is true with AS/RS, says Robert Lyon, senior solutions consultant, HK Systems (262-860-7000). "Some of the design changes in AS/RS in particular are the ability to manage inventory in the high rise using software," says Lyon. "There's a lot more flexibility in managing certain routines."

Improved flexibility has also opened more doors for all types of automated storage. At one time, only the largest companies would install a multi-million dollar AS/RS. But now much smaller companies are using the technology in smaller one- and two-aisle systems with much lower price tags. Similarly, carousels and VLMs, once primarily used in smaller operations, are now migrating to installations with 50 units or more, sometimes many more.

Regardless of the technology, the reasons are much the same — improved efficiencies, ability to handle multiple functions and better use of space.

The pick rate of a horizontal carousel depends more on the operator than it does on the equipment. "Higher speed of the carousel won't necessarily mean faster picking," says Hugo Lanesskog, vice president of automated systems, Lauyans & Co. (502-774-2200). "The pick rate of the carousels is the prime justification factor rather than the floor space."

But for AS/RS in particular, labor reduction is the most traditional justification factor. Says George King, director, major systems sales, FKI Logistex (877-935-4564), "The latest AS/RS design, application or justification comes from the overall cost savings from building with a smaller footprint, utilizing cranes [storage machines] that are fully automated and that do not require a man to be aboard to move pallets."

Rob Schmit, vice president of the Automation and Systems Division, Schaefer International, Inc. (704-944-4573), says automated storage can perform multiple functions at a time. "Most of the time you are using multiple functions in the AS/RS; not only for storage and retrieval, but also for picking and transportation so that you get multiple use out of it. Your investment gets better. It makes AS/RS more justifiable."

There's also the matter of making the best use of space — both the footprint of the system and within the storage unit itself. "Slow-moving SKUs are kept in the AS/RS, thereby reducing space requirements. Also, a pick face in the warehouse for each slow mover, which takes up valuable space, is eliminated," says Ken Ruehrdanz, business development manager, Siemens Logistics & Assembly Systems (877-725-7500). "When a slow mover is required, the AS/RS retrieves that item and creates a temporary pick face for it," Ruehrdanz explains.

And when all of this comes together, the result is more flexible automated storage systems that deliver higher efficiencies and faster paybacks.