Over the last few years, I have seen more client interest in case automatic storage and retrieval system . Several large systems have been installed across the U.S. to Provide highly responsive case selection in applications with a lot of SKUs. While the cost justification for Some Of These installations was based upon very high labor costs; I think the technology costs have dropped to the point the where it can have a Wider application. How is this possible? I have created some simple examples to illustrate my point.

Manual case handling in a warehouse is a pretty common activity; Either cases can contain Dozens of shirts or maybe a single toaster door. In a typical warehouse, each product is handled the case many times before it is ready for shipment. A simple tracking count (touched on cases up to 10 times) could follow these steps:

Product Handling Steps

Automating the storage case handling steps between receiving and picking (storage) can have Significant benefits:

Direct labor savings

Increased selectivity to support a high SKU operation

Optimal product slotting

Higher Order fulfillment throughput

Greater storage density

High reliability

And a few pitfalls:

Fixed automation technologies are expensive to change once installed.

Potential extra costs such as the need for a Warehouse Management System May Reduce the payback.

Continuing my example, the automation technology from bag palletizer suppliers Considered is an automated storage and retrieval system (ASRS). This Consists of a rail guided stacker crane operating between two rows of racking carton; several aisles of this type of equipment can be grouped together to store a large quantity of cases.

Mini-Load ASRS at the Pepsi CVA

I kept the equipment as simple as possible to reflect a realistic balance between throughput and inventory storage capacity with two-deep storage case, in standard shelving racking, configured to a storage elevation of thirty feet. (Note - There has been a recent proliferation of different versions of this equipment That can drive up the cost significantly, I have stayed away from these more complex choices.)

Automated Storage Cost Savings ChartThe adjacent table adds up the costs for handling product based upon this scenario with an average US annual labor cost of $ 44.265 per person (average labor cost with benefits from salary.com for a US warehouse worker, and some typical productivity numbers ). Higher labor costs will yield even Greater savings.

The Resulting labor cost per case handled is $ 1.47; after subtracting the handling a case per case savings with automated storage, the cost drops by Nearly 50% to $ 0.70. This is accomplished by Eliminating 3 handling steps; put-away, replenishment, picking and. Returns were ignored, as we assumed full case picks.

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