The Satellite Review Magazine The Satellite Review Magazine Vol 2 | Page 21

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Agility with

Automation

t’s no secret that the economy has improved over the last five years,
with smarter, more opinionated and involved consumers. As a result
of these trends in consumer behavior, manufacturers and distributors
are increasing product line diversity and turnaround. This creates a
tremendous challenge for manufacturers and distributors – managing
a greater number of SKUs in their warehouse.

As consumer preferences evolve, many are looking for new,
strategic ways to obtain a competitive edge and design for
agility. For most, this means doing things a little bit differently in order to operate more efficiently, improve customer
satisfaction and cut costs. Today, one of the most promising
solutions for achieving a competitive advantage and agility
is warehouse automation technology.

While investing in an AS/RS may seem like a large capital
expenditure upfront, it will be worth it, as the systems typically deliver ROI in three to five years and boast lifespans of
more than 25 years.

Maximizing Space Utilization with AS/RS

Consumers are demanding a personalized experience and
they want it quick. There are a variety of reasons, short
product lifecycles, competitive pressures or consumption
patterns, manufacturers and distributors are now faced
with being capable of quickly adapting to support market
demand. This means better managing inventory, supporting
both slow and fast moving SKUs, while optimizing warehouse space. An AS/RS allows for better management of
these “slow or fast moving” SKUs.

As the economy continues to improve and companies
continue to grow and generate more SKUs, distributors and
manufacturers are struggling to find the necessary space for
storing these products.
At the same time, warehouse space is at a premium and new
construction is far too expensive. By retrofitting their facilities with high-density, multiple deep automated storage and
retrieval systems (AS/RS), these organizations can essentially “do more with less” – they are storing more product in a
smaller or same amount of space, and have room to accommodate for future growth. There is no need for off-site
storage, existing facility expansions, or costly construction.

An agile design supports slow and fast
movers

The ability to accommodate for a variety of SKUs can be
built into the AS/RS’ design. Then, by bringing in software,
like a warehouse execution system (WES), and integrating it
with the AS/RS, organizations have total control over their
inventory. Therefore, without having to worry about their

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The Satellite Review

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