Automated Storage and Retrieval Systems to Witness Increased Demand for Inventory Management

Thanks to automated storage and retrieval systems (ASRS), the movement of high volume of loads was never been so easier. The ASRS is used when in various applications where storage density is vital due to space constraints and high accuracy is demanded as damages to the load could lead to heavy expenses. These systems are commonly used in manufacturing centers, distribution facilities, and large warehouses.

According to Allied Market Research, the automated storage and retrieval systems market is expected to reach $12.93 billion by 2027, growing at a CAGR of 7.2% from 2020 to 2027. That’s because of surge in demand for ASRS in the aviation industry and increase in e-commerce across the globe.

Why ASRS are in demand?

ASRS is used for the standard load as well as non-standard loads. For instance, the loads consisting of uniformly-sized boxes are standard loads and these loads are simple to handle. The demand for ASRS increased due to its accuracy while auditing as it does not require top-to-bottom search of the entire facility to find a particular item. The major advantages of the usage of ASRS are:

• Accurate ASRS helps organizations reduce expenses by minimizing the number of bulky products in the storage and improving the contents of a warehouse.
• As the system is automated, it enables more storage space due to narrower aisles and high-density storage places.
• ASRS reduces labor costs and workforce requirements, which, in turn, minimizes the humor error and improves safety.
• ASRS helps to manage and model the logical representation of physical storage facilities. For instance, for an e-commerce company, if a particular product is in high demand or certain products must be sold together, those products can be places together and near the delivery, area to improve the other processes of packing & shipping to customers.
• The ASRSs offer a seamless link between order processing and management of logistics while packing, picking, and shipping of the product out of the facility.
• ASRS simplifies the tracking of the products, including where they come from and the duration of storage of the products. As the system is completely digital, it is easy to analyze such data, and the organization can efficiently control the inventory level and maximize the use of the warehouse space.

Launch of novel ASRS to manage bulky systems

Given the advancements in technology, major market players are now focused on improving the existing automated storage and retrieval systems. For instance, JD, one of the prime Fortune 500 companies recently launched its first ASRS for heavy items in Asia’s e-commerce market.

The launched system is centered at JD’s logistics park in Langfang, Hebei province. This park is one of the three majorly automated Asia No. 1 parks that JD has put into operations. According to the company, the ASRS would be used for items such as home appliances and furniture, which will increase the efficiency around three times of the conventional warehouses. Moreover, JD states that since 25th May 2020, the outbound orders of air conditioners have increased by around 300%, and fulfillment efficiency in Beijing, Baoding, and Langfang has increased by around 15%.

Apart from this, Tompkins Robotics, a company that develops t-sort solutions for micro-fulfillment recently launched its new product that uses ASRS technology. Moreover, the solution uses the company’s widely-known t-sort autonomous mobile robots (AMRs) to efficiently manage the operations in the backroom and micro-fulfillment store. The launched micro-fulfillment solution optimizes operations by utilizing space and saving costs on labor. Moreover, it improves accuracy and speed. As the system uses ASRS technology, it easily fits an existing backroom space. It can be used by retailers as they have to deliver products in a particular timeframe and this tool gives customers for retail stores when a high level of automation is not possible.

As per the company, those customers that use a micro-fulfillment strategy using ASRS solutions can easily integrate this tool at a minimal cost. Moreover, with this solution, customers can increase capacity and productivity at the same time.

Thanks to advancements in ASRS, retails as well as warehouse owner can efficiently manage their work while reducing labor costs and improving efficiency. Although the technology demands high investment initially, ASRS can quickly offer a return on investment, making it the most sought-after technology for inventory management.

Reference:

https://ajot.com/news/tompkins-robotics-launches-new-t-sort-solution-for-micro-fulfillment-operations

https://supplychainanalysis.igd.com/news/news-article/t/jd-launches-first-automated-storage-system-for-bulky-items-in-asia/i/2575

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