5.2 Storage Systems and Equipment
6 min read•july 31, 2024
Storage systems and equipment are crucial for efficient warehousing. From to automated solutions, these systems maximize space and improve inventory management. Understanding the pros and cons of each option helps businesses choose the right setup for their needs.
Proper equipment selection is key to optimizing warehouse operations. Factors like product characteristics, operational requirements, and facility constraints guide choices. Automation can boost productivity and accuracy, but comes with significant upfront costs and ongoing maintenance needs.
Storage Systems and Applications
Block Stacking and Pallet Racking
Top images from around the web for Block Stacking and Pallet Racking
Logistics Management Options for Small Businesses - Pallet Rack Manufacturers | Warehouse ... View original
Is this image relevant?
File:Modern warehouse with pallet rack storage system.jpg - Wikimedia Commons View original
Is this image relevant?
Control Your Stock with Drive in Pallet Racking | Invest It Wisely View original
Is this image relevant?
Logistics Management Options for Small Businesses - Pallet Rack Manufacturers | Warehouse ... View original
Is this image relevant?
File:Modern warehouse with pallet rack storage system.jpg - Wikimedia Commons View original
Is this image relevant?
1 of 3
Top images from around the web for Block Stacking and Pallet Racking
Logistics Management Options for Small Businesses - Pallet Rack Manufacturers | Warehouse ... View original
Is this image relevant?
File:Modern warehouse with pallet rack storage system.jpg - Wikimedia Commons View original
Is this image relevant?
Control Your Stock with Drive in Pallet Racking | Invest It Wisely View original
Is this image relevant?
Logistics Management Options for Small Businesses - Pallet Rack Manufacturers | Warehouse ... View original
Is this image relevant?
File:Modern warehouse with pallet rack storage system.jpg - Wikimedia Commons View original
Is this image relevant?
1 of 3
- Block stacking stores pallets directly on the floor
- Suitable for high-volume, homogeneous products
- Offers low selectivity requirements
- Maximizes floor space utilization
- systems provide various storage options
- allow easy access to all pallets
- Drive-in/ increase
- use gravity to compact storage
- ensure first-in-first-out (FIFO) inventory management
Elevated and Automated Storage Solutions
- create additional storage within existing structures
- Often used for small parts or lightweight items
- Increases vertical space utilization
- Can be customized to fit specific warehouse layouts
- offer high-density storage
- Computer-controlled systems automatically place and retrieve loads
- Ideal for rapid retrieval and high inventory accuracy
- Reduces labor costs and improves safety
- rotate to bring items to pickers
- Horizontal carousels move laterally along tracks
- Vertical carousels utilize vertical space efficiently
- Both types maximize space utilization and improve picking efficiency
Specialized Storage Systems
- designed for long, bulky items
- Accommodates pipes, lumber, or furniture
- Allows easy access from the front
- Efficiently uses vertical space
- Eliminates need for shelving in some applications
- organize small parts
- Ideal for nuts, bolts, electronic components
- Improves inventory visibility and accessibility
- Often used in conjunction with other storage systems
Storage Equipment Suitability
Material Handling Equipment
- and move palletized goods
- Electric models suit indoor use (warehouses, distribution centers)
- Internal combustion engines better for outdoor applications (lumber yards, construction sites)
- enable continuous product movement
- Belt conveyors handle small to medium-sized items
- Roller conveyors accommodate heavier, palletized loads
- Chain conveyors transport bulky or irregularly shaped items
- perform repetitive transport tasks
- Operate in facilities with well-defined pathways
- Reduce human interaction and potential errors
- Improve safety by minimizing manual material handling
Specialized Handling Equipment
- access high-rack storage systems
- Extended forks allow deeper reach into racking
- Suitable for narrow aisle operations
- Increase vertical storage utilization
- facilitate item selection at various heights
- Allow operators to safely elevate to pick locations
- Improve picking efficiency in high-bay warehouses
- Often used in conjunction with warehouse management systems
- crucial for high-volume distribution centers
- Enable efficient order fulfillment and routing
- Can sort by size, weight, destination, or other criteria
- Increase throughput and reduce manual handling errors
Equipment Selection Factors
- Product characteristics influence equipment choice
- Size and weight determine lifting capacity requirements
- Shape affects handling method (pallets, cases, individual items)
- Fragility impacts equipment gentleness and precision
- Operational requirements guide equipment selection
- Turnover rate influences need for quick access or high-density storage
- Required accessibility determines racking and aisle configuration
- Throughput demands impact automation level and equipment speed
- Facility constraints affect equipment suitability
- Ceiling height limits vertical storage options
- Floor load capacity restricts equipment and storage weight
- Aisle width determines forklift and reach truck models
Automation in Storage Systems
Warehouse Management and Tracking
- optimize operations
- Integrate with automated storage for inventory placement
- Enhance retrieval efficiency through intelligent slotting
- Provide real-time visibility into inventory levels and locations
- improves tracking
- Reduces manual scanning and associated errors
- Enables real-time inventory updates
- Facilitates automated receiving and shipping processes
Robotic and Automated Picking Systems
- increase picking efficiency
- Automated systems bring items to stationary pickers
- Reduce worker travel time and fatigue
- Improve picking accuracy and speed (up to 200% increase)
- Automated guided vehicles (AGVs) streamline material movement
- Follow predefined paths using markers or sensors
- Reduce labor costs and improve safety
- Can operate 24/7 with minimal supervision
- offer flexible automation
- Navigate dynamically using onboard sensors and AI
- Adapt to changing warehouse layouts
- Collaborate with human workers for complex tasks
Enhanced Picking Technologies
- Voice-directed picking systems improve productivity
- Provide hands-free, eyes-up operation
- Reduce errors through verbal confirmation
- Increase picking speed by 10-25%
- Light-directed picking (pick-to-light) enhances accuracy
- Use LED displays to guide pickers to correct locations
- Ideal for high-volume, multi-line orders
- Can improve productivity by up to 50%
Automation Impact and Considerations
- Increased throughput results from automation
- 24/7 operation capability
- Consistent performance without fatigue
- Reduced pick times and improved order cycle times
- Reduced labor costs through automation
- Fewer workers required for routine tasks
- Reallocation of labor to value-added activities
- Potential ROI of 2-3 years for major automation projects
- Improved inventory accuracy with automated systems
- Real-time tracking reduces discrepancies
- Minimizes human error in data entry and item selection
- Can achieve inventory accuracy rates of 99.9%+
- Significant initial investment required
- Hardware costs (robots, conveyors, racking)
- Software integration expenses
- Facility modifications to accommodate automation
- Ongoing maintenance needs for automated systems
- Regular software updates and calibration
- Mechanical servicing and part replacements
- Specialized technician training and support
Storage Density vs Accessibility vs Costs
High-Density Storage Systems
- maximize cubic space utilization
- Increase storage density by up to 75% compared to selective racking
- Sacrifice accessibility for higher capacity
- Increase retrieval times due to last-in-first-out (LIFO) access
- Very Narrow Aisle (VNA) racking balances density and accessibility
- Reduce aisle width to 1.5-1.8 meters
- Require specialized handling equipment (turret trucks, wire-guided vehicles)
- Increase storage capacity by 40-50% compared to wide aisle layouts
Automated Storage Solutions
- Automated Storage and Retrieval Systems (AS/RS) offer high density and speed
- Maximize vertical space utilization (up to 30 meters high)
- Provide rapid accessibility (100+ dual cycles per hour)
- Involve substantial initial investment ($1-3 million for mid-sized system)
- Require ongoing maintenance and specialized technician support
Traditional and Dynamic Storage Options
- Selective racking provides excellent accessibility
- Allows direct access to all pallets
- Results in lower storage density (30-40% space utilization)
- Offers flexibility for mixed SKU storage
- impact density and accessibility
- increase density but limit access to front positions
- improve piece picking efficiency at higher initial cost
- Push-back racks offer compromise between density and selectivity
Cost Considerations in Storage System Selection
- factors for storage equipment
- Initial purchase price varies widely (150 per pallet position)
- Installation costs (10-20% of equipment cost)
- Maintenance requirements (1-3% of initial cost annually)
- Potential productivity gains (15-30% improvement in throughput)
- Scalability and flexibility of storage systems
- Modular systems allow for easier expansion
- Reconfigurable racking adapts to changing product mix
- Future-proofing may increase initial costs but reduce long-term expenses
- Long-term business projections influence system choice
- Anticipated growth rates affect capacity planning
- Changes in product mix may require adaptable storage solutions
- Shifts in handling requirements could necessitate equipment upgrades
Key Terms to Review (30)
Automated guided vehicles (AGVs): Automated Guided Vehicles (AGVs) are mobile robots that follow predefined paths to transport materials and goods within a facility. They are integral to improving efficiency and accuracy in logistics operations by automating material handling tasks, reducing the need for human intervention and the potential for errors. AGVs can operate in various environments, including warehouses and manufacturing plants, significantly enhancing the overall productivity of storage systems and logistics activities.
Automated storage and retrieval systems (AS/RS): Automated storage and retrieval systems (AS/RS) are computer-controlled systems designed to automatically place and retrieve loads from defined storage locations. They enhance efficiency in warehouse operations by minimizing human error, optimizing space utilization, and increasing inventory management accuracy. These systems are commonly integrated with other technologies, like warehouse management systems (WMS), to streamline overall logistics processes.
Autonomous Mobile Robots (AMRs): Autonomous Mobile Robots (AMRs) are advanced robotic systems designed to navigate and operate independently within various environments, often utilized in warehouses and storage facilities. These robots use sensors, cameras, and AI technology to understand their surroundings and efficiently transport goods or materials without human intervention. AMRs are crucial for improving operational efficiency, reducing labor costs, and enhancing safety in logistics operations.
Bin shelving systems: Bin shelving systems are storage solutions designed to organize items in bins or containers, allowing for easy access and efficient inventory management. These systems are commonly used in warehouses and distribution centers, maximizing space utilization while providing a systematic approach to storing and retrieving products.
Block stacking: Block stacking is a storage method where goods are stacked directly on top of each other to maximize space utilization in a warehouse. This technique is especially beneficial for storing bulk items or products with similar dimensions, as it helps to minimize the amount of floor space required. Effective block stacking can improve inventory management and make it easier to access items while ensuring stability and safety.
Cantilever racking: Cantilever racking is a specialized storage system designed to hold long or bulky items that cannot be easily stacked, such as lumber, pipes, or furniture. This system features arms that extend out from vertical supports, allowing for easy access and efficient use of space, making it ideal for warehouses and distribution centers that handle heavy or irregularly shaped products.
Carousel systems: Carousel systems are automated storage and retrieval systems that use rotating shelves or bins to store and access inventory efficiently. They enhance productivity by minimizing the time spent searching for items, as they bring the products to the operator, reducing walking distance in a warehouse or storage facility.
Carton flow racks: Carton flow racks are a type of storage system designed to optimize the storage and retrieval of products by using gravity to facilitate the movement of cartons from the back to the front of the rack. These systems are highly efficient in managing inventory, especially in environments with high turnover rates, as they allow for quick access to products while maximizing vertical space utilization.
Conveyor Systems: Conveyor systems are mechanical devices that transport materials or products from one location to another within a facility, streamlining the movement of goods and enhancing operational efficiency. These systems can be used in various settings, such as warehouses, manufacturing plants, and distribution centers, playing a critical role in the handling and storage of items.
Drive-in racks: Drive-in racks are a type of high-density storage system that allows forklifts to access stored products directly from the aisle, maximizing storage space and efficiency. This system enables multiple pallets to be stored deep within the rack structure, allowing for increased inventory capacity while maintaining easy access. The design is particularly advantageous for operations that handle large quantities of similar products, enhancing warehouse layout optimization and storage equipment utilization.
Drive-through racks: Drive-through racks are a type of storage system designed to allow vehicles to access stored items directly from both sides of the rack structure, optimizing space and improving efficiency. This design supports a first-in, first-out (FIFO) inventory management system, making it ideal for perishable goods or items that need to be rotated regularly. By allowing forklifts and other equipment to navigate easily, these racks enhance warehouse operations, reduce loading times, and streamline inventory control.
Dynamic storage systems: Dynamic storage systems are advanced storage solutions designed to optimize space utilization and improve inventory management by automatically adjusting to changes in demand and product flow. These systems utilize technology such as automated storage and retrieval systems (AS/RS), which allow for efficient storage, quick access to items, and a high degree of flexibility in handling various types of goods. They play a crucial role in modern logistics by enhancing the speed and accuracy of order fulfillment processes.
First-in, first-out (FIFO): First-in, first-out (FIFO) is an inventory management method where the oldest stock items are sold or used before newer ones. This approach ensures that products are rotated properly and helps minimize waste, particularly in industries with perishable goods. It also provides a systematic way of tracking inventory flow, which is crucial for maintaining accurate records and optimizing storage systems and equipment.
Flow-through racks: Flow-through racks are a type of storage system designed to facilitate the efficient movement of products through a warehouse. These racks use a gravity-fed mechanism that allows items to flow from the loading side to the picking side, enhancing inventory management and reducing retrieval times. This system is particularly effective for high-rotation products, ensuring that older stock is picked first, which aligns with the first-in, first-out (FIFO) principle.
Forklifts: Forklifts are powered industrial trucks used to lift and move materials over short distances, primarily in warehouses, factories, and construction sites. They are essential for efficient storage and handling of goods, enabling the stacking of heavy loads and optimizing space utilization within storage systems. With various attachments available, forklifts can perform a range of tasks beyond just lifting pallets.
Goods-to-person technologies: Goods-to-person technologies refer to automated systems designed to bring products directly to the operator or picker in a warehouse or distribution center, rather than requiring them to travel throughout the space to retrieve items. This approach enhances efficiency by reducing the time spent on travel and increases accuracy in order picking, ultimately leading to improved inventory management and fulfillment processes.
Mezzanines: A mezzanine is an intermediate floor or platform that is built between the main floors of a building, typically used to increase usable space within a warehouse or storage facility. These structures can help optimize vertical space and are often designed to hold inventory, equipment, or even office areas, thus enhancing the overall efficiency of storage systems and equipment.
Order Pickers: Order pickers are specialized workers or machines used in warehouses to retrieve products from storage locations for fulfillment of customer orders. They play a crucial role in the efficiency of the picking process, which is essential for inventory management and overall supply chain operations. Order pickers can operate in various environments, using different technologies and strategies to optimize the retrieval of goods.
Pallet flow racks: Pallet flow racks are a type of storage system designed to facilitate the efficient movement and storage of palletized goods. They use a gravity-fed system where pallets are loaded from one side and flow down to the picking side, optimizing space and reducing handling time. This system enhances inventory management by allowing for first-in-first-out (FIFO) retrieval, making it ideal for perishable goods and high-turnover items.
Pallet jacks: Pallet jacks, also known as pallet trucks, are manual or powered devices designed to lift and move palletized loads. They play a vital role in warehouse operations and logistics, enabling efficient handling and transportation of goods within storage areas. By allowing operators to easily maneuver heavy items, pallet jacks contribute to optimizing space and improving overall workflow in storage systems.
Pallet racking: Pallet racking is a storage system designed to hold palletized loads in warehouses and distribution centers, allowing for efficient storage, retrieval, and organization of goods. This system maximizes vertical space and enhances inventory management by providing easy access to products, thus optimizing the overall flow of operations within storage facilities.
Push-back racks: Push-back racks are a type of storage system designed to maximize warehouse space by allowing pallets to be stored and retrieved efficiently. In this system, pallets are loaded onto a series of nested carts that slide back on inclined tracks, enabling easy access to multiple pallet positions without requiring a lot of aisle space. This setup supports high-density storage and quick retrieval, making it ideal for warehouses with a first-in, first-out (FIFO) inventory management strategy.
Radio frequency identification (RFID): Radio frequency identification (RFID) is a technology that uses electromagnetic fields to automatically identify and track tags attached to objects. RFID systems consist of tags, readers, and antennas, allowing for the efficient management of inventory and assets in various settings. This technology enhances storage systems by automating data collection and improving accuracy in inventory management, while also playing a critical role in electronic data interchange processes.
Reach trucks: Reach trucks are specialized forklifts designed to handle and store materials in narrow aisles and high racking systems. These vehicles have a unique extending mechanism that allows the operator to reach loads that are positioned far away from the base of the truck, maximizing storage space while minimizing footprint. Their design and functionality make them essential for efficient warehousing and distribution operations, enabling quick loading and unloading processes.
Selective Racks: Selective racks are a type of storage system designed to maximize accessibility and efficiency in warehouses by allowing easy access to individual pallets or products. This system utilizes vertical space and is adjustable, making it suitable for various pallet sizes and types, which enhances inventory management and retrieval processes.
Sortation Systems: Sortation systems are automated or semi-automated processes designed to categorize and distribute items based on specific criteria, such as size, weight, or destination. These systems play a crucial role in improving efficiency and accuracy in logistics and warehouse operations, ensuring that products are quickly and accurately directed to their appropriate locations within storage systems.
Space utilization rate: The space utilization rate measures how effectively a storage area is used, expressed as a percentage of the total available space that is actively occupied by products or materials. A high space utilization rate indicates efficient use of storage, while a low rate suggests wasted space or inefficiencies in the layout and organization of the storage area. This concept is vital for optimizing storage systems and equipment to enhance operational performance and reduce costs.
Storage density: Storage density refers to the amount of storage space utilized relative to the total available space within a storage system. It is a crucial factor in logistics and warehousing as it directly influences how efficiently space is used, which can affect operational costs and inventory management.
Total Cost of Ownership: Total Cost of Ownership (TCO) refers to the comprehensive assessment of all costs associated with acquiring and using a product or service over its entire life cycle. This includes not only the initial purchase price but also ongoing operational, maintenance, and disposal costs. Understanding TCO helps businesses make more informed decisions regarding investments and is crucial for optimizing logistics strategies, supplier relationships, and overall operational efficiency.
Warehouse management systems (WMS): Warehouse Management Systems (WMS) are software applications designed to support and optimize warehouse functionality and distribution center management. They provide tools to manage inventory levels, track stock movements, and streamline the picking, packing, and shipping processes, thereby enhancing overall efficiency in logistics operations.