The Satellite Review Magazine The Satellite Review Magazine Vol 2 | Page 29

within three to five years, that leaves twenty years to reap
cost savings and profit potential that an
AS/RS has to offer. Cost savings accrue from a variety of
sources:
• Reduced labor and equipment costs
• Reduction in land use requirements
• Reduced waste
• Maintenance costs are lower
• Reduced energy costs especially for refrigerated and
frozen warehouses

3. Improve productivity
Automated systems are faster and more accurate than manual labor and ensure that product is moved and transported,
and done so correctly. The technology behind this automated process guarantees an efficient system without the time
constraints of an average work shift. The systems can also
cover a vast amount of space, moving both horizontally and
vertically.

4. Optimize space utilization
Let’s face it, there is never enough space. You either want to
use as much as possible in an existing facility or are looking
to build a new facility, both as cost effectively as possible.
With a high-density AS/RS more product can be stored
in a smaller amount of space. In fact, an AS/RS can store
40% more pallets in the same space as a conventional rack
warehouse.

5. Provide better inventory accuracy
By bringing in software, like a warehouse execution system
(WES), and integrating it with the AS/RS, organizations
have total control over their inventory, whether it is a
slow-moving seasonal product, or a product that is popular
all year round. Therefore, without having to worry about inventory and maximizing space, manufacturers and distributors can focus on more critical areas, like fulfilling orders.

6. Optimize order fulfillment
With an automated warehouse, organizations can establish
efficient picking processes, routes and sequences to enable
better overall performance of the warehouse. However,
successful order fulfillment begins with the design of the
warehouse and picking process. Integrating an AS/RS with
warehouse material handling systems drastically simplifies

the picking process to improve order fulfillment.

7. Create a safe working environment
An AS/RS adopts the idea of ‘bringing the product to the
worker’ as opposed to the worker retrieving the product.
This greatly decreases the amount of physical labor involved
with these tasks, including walking, lifting and carrying
heavy loads. As well as keeping employees out of sub-zero
temperatures in frozen food warehouses, eliminating multiple breaks.

8. Eliminate product damage
Automated technology ensures the safe handling of products and minimizes product damage by eliminating workers
from having to manually move product from one location
to another. Less human interaction with product equals less
damaged product.

9. Provide less shipping errors with just-intime order fulfillment
How does 15% less errors in shipping sound? With transportation being somewhat unreliable, automated technology can eliminate staged orders waiting to be picked up by
implementing just-in-time (JIT) order fulfillment. The idea
behind JIT order fulfillment is to prepare orders right when
the truck arrives on site, as efficiently and quickly as possible. This frees up a great deal of warehouse space and keeps
everything flowing.

10. Environmentally friendly
Less well known, yet equally important, are the environmental benefits that automation provides. Three primary
“green” outcomes concern land use, energy consumption
and waste production, including hazardous waste. Take
these green benefits into consideration:
• Uses 40% less space than a conventional warehouse
storing equivalent product inventories
• Requires less energy to function
• Reduces forklift damage to the building and rack system
as well as battery use
• Eliminates fork trucks, lessening the opportunity for
product damage
• Reduces stretch wrap consumption

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The Satellite Review

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