Warehouses are considered to be the heart of manufacturing and distribution operations. Under any instance materials are constantly moving in and out of this crucial business hub. The effectiveness of warehouse operations plays a major role for companies to gain profitable margins and enhancing customer service. Warehouse operations affect every aspect of the supply chain of the company. The demand for these efficiencies is creating a wide spread demand for automation in warehouse operations. One of the prime equipment or systems which are increasing these efficiencies is Automated Storage and Retrieval Systems.
The evolution of AS/RS systems is accelerating at a rapid pace of the last few years. Although these systems have existed in the industry for over a period of 60 years, the misconception surrounding their utilization was a major hindrance for growth in this market. The demand for multi-channel supply chain have allowed to overcome this misconception and created a major increase in demand for AS/RS Systems. The heavily growing economic and logistic needs and need for more goods to be stored and raising labour costs have splurged the demand further for these systems.
AS/RS systems allow automatic storage and retrieval of goods with management and control of automated process from one place. Warehouses are using these systems to increase storage density, boost pickup rate, improve order accuracy and decrease labour cost. E-commerce industry is one of the fastest growing end-user markets for AS/RS systems. Order picking in this industry has been exhibiting high resulting and splurging the demand for the usage of automated systems. Automated storage systems with real time inventory management capabilities have exhibited high adoption as they allow sufficient product stocking in the warehouses. Customized automated storage and retrieval systems have been favoured by e-commerce vendors for their particular needs. Effective supply chain management is another growing requirement for automated storage systems. The improved order fulfilment offered by these systems has resulted in their fast adoption in this industry. The growing e-commerce industry will propel the automated storage and retrieval system market. The e-commerce segment is projected to grow to $1.01 billion in 2021.