Automated Storage: The Honest Pros, Cons and Planning Steps for Australian Warehouses
Updated: Oct 31
Is automated storage worth it? The short answer
Automated storage is worth it when you handle lots of similar items, pay a lot for labour and floor space, and have clean stock data. It's not worth it when your range changes constantly, your products come in odd shapes, or you haven't yet fixed the basics of your layout.
Here's how to tell which side you're on.
What automated storage actually does
Automated storage uses machines and software to put stock away and bring it back without someone walking the aisle. That covers a wide range: a tall crane in a pallet rack, shuttles running through carton shelving, or a vertical lift module that looks like a tall cabinet and delivers a tray to an operator at waist height.
Three things tend to improve when it's done well.
Space. Machines don't need wide aisles, and they can reach height that forklifts and people can't. A vertical lift module turns a few square metres of floor into several storeys of storage.
Accuracy. The software knows where everything is, and the machine goes there every time. Fewer wrong picks, fewer lost pallets, cleaner stock counts.
Visibility. When storage is linked to your warehouse management system, you can see stock levels as they change, which makes replenishment and order planning less of a guessing game.
There's a safety gain too. Fewer people lifting heavy or awkward items, and fewer forklifts in busy aisles.
What are the disadvantages of ASRS?
This is the question buyers ask us most, so here's the straight version.
Upfront investment is high. It's capital equipment, and it's rarely a small project. For a smaller business, that can be the deciding factor on its own.
Maintenance needs specialists. You'll want a service agreement. When a machine stops, the part of the warehouse it serves can stop with it, so a fallback plan matters.
It works best on standard items. Uniform cartons, totes and pallets suit it. Irregular, fragile or oversized stock often doesn't, and you may end up running a manual area alongside.
You depend on the technology. Power cuts, software faults and cyber risks become operational risks. Redundancy and backups need to be part of the design.
People have to change too. Roles shift from walking and lifting to supervising and exception handling. That takes training and honest conversation with the team.
None of these are reasons to rule automation out. They're reasons to plan it properly.
How to plan an automated storage project
Start with the stock, not the technology.
Profile your inventory. Size, weight, container type and how fast each item moves. Fast movers in standard containers are the best candidates.
Check the building. Ceiling height, column spacing, floor loading and aisle widths all limit what's possible. If height is short, a rack-supported structure or a vertical lift module might fit better than a high-bay crane.
Check your data. Automation runs on accurate item and location data. If your WMS or stock records are messy, fix them first.
Think about growth. Will the range, container sizes or volumes change in the next few years? Modular systems cope with change better than fixed ones.
Compare the real trade-off. Weigh capital cost against labour savings, error reduction and the space you'd otherwise have to lease or build. Get the numbers from your own operation, not a brochure.
Start small if you can. A pilot zone lets you prove the performance before committing to the whole site.
Train early. The people who'll run and maintain it should be involved before installation, not after.
Where racking comes in
Every automated storage system sits on a steel structure, and that structure needs to match the machine. Automated systems need tighter tolerances than standard pallet racking, and the steel has to carry loads from the machines as well as the stock.
CH Racking & Displays works on that side of the project. We manufacture racking built to the specification an integrator provides, and we support integrators who design and deliver the full system, including the machines, conveyors, robotics and software. If you're an end user, we'd suggest talking to us early so the structure and the machine are designed together.
Not ready for full automation? A high-density manual system such as shuttle racking or a well-planned longspan layout can capture a good share of the space benefit with less risk.
Planning an automation project?
Bring us your drawings, load data and integrator specs, or just a rough idea. We'll talk through what the racking needs to do and whether automation or a simpler system fits better. The layout consultation is free and there's no obligation to proceed.
Call 03 8766 9072, email info@chracking.com.au, or use the contact page.
Related reading: AS/RS in Australia: How Automated Storage and Retrieval Systems Work | AS/RS racking
CH Racking & Displays, 10-16 Evolution Drive, Dandenong South VIC 3175. Supplying warehouses across Australia and New Zealand.