Making Space: Using Warehouse Space More Efficiently to Fuel Growth

Predictions of a global recession leave economists divided: 45% believe it’s likely, another 45% believe it’s not; the 3% who see it as extremely likely are counterbalanced by the 3% who see it as extremely unlikely^[1] - uncertainty is perhaps the only remaining certainty we have.

Whatever’s coming, growth remains the boardroom imperative. The challenge here is that the cost per square foot of warehouse space has increased by 25% in the last five years.^[2] Increased costs erode profitability and unpredictable demand cloud forecasting, meaning expanding facilities has become a bigger risk. But growth doesn’t have to rely on physical expansion. At AutoStore, we help make existing space more efficient and, in turn, profitable. Utilizing every bit of space is crucial.

Become more profitable per square foot

Every extra square foot comes with a price. 92% of the warehouse market agrees space utilization is “very” to “extremely important”^[3] to increasing a business’ bottom line. That’s why we help our customers re-imagine warehouse layouts and the systems used, to minimize travel distances and maximize storage capacity.

Cube Storage Automation offers the highest level of efficiency, utilizing vertical space with high-density racking systems to save significant space and real estate costs. At AutoStore, we offer the world’s densest fulfillment system. It increases storage density by four times in the same footprint as manual storage. It integrates with existing infrastructure and can be molded to fit into any warehouse layout. Low ceilings? Small square footage? Large pillars? Not an issue.

Additionally, our workstations, or Ports, help customers make better use of space. For example, our FusionPort Staging unit combines picking with storing inventory and pre-picked orders, allowing you to pick, batch, and stage consolidated orders inside the AutoStore system using a single port. It was fantastic to help Norwegian retailer XXL set a new throughput record using FusionPort. Now they have 80 Robots servicing 158,000 Bins in an 8,000 m², (86,111 ft²) Grid. Our customers are realizing more value per cubic foot to balance the increasing costs of each square foot.

Scale up and down in your existing space

Many businesses are naturally cautious about big CAPEX investments for future growth at a time when markets are so unpredictable. Customers are high on expectations and low on loyalty. But with new technology in your existing space, you can manage spikes in demand without adding an extra square foot. eGrocery provider, Knuspr, tripled its picking productivity while reducing its CAPEX investment using our solutions.

Operations need to be equipped for SKU growth both over the long term and to handle short-term seasonal surges in demands. Our market leading cubic AS/RS system allows for 1 million+ SKUs meaning it’s infinitely adaptable to your business’ needs.

Reduce your emissions

An additional benefit of using AutoStore is that we also reduce your energy consumption by as much as 75%. Reducing your emissions helps you achieve your sustainability goals and become a favorable choice for other businesses looking for a more sustainable partner.

Making space for Yusen Logistics

Working with AutoStore, Yusen Logistics installed an automatic storage and retrieval system to help manage rising business costs and remain competitive in a market driven by customers who expect fast and efficient delivery.

The AutoStore system operates 22 Robots over 40,600 Bins and 11 Ports. And the results are emphatic:

• Warehouse storage volume increased from 2,000 cubic meters to 3,500 cubic meters
• Reduced order fulfillment lead time — cut-off time for same-day delivery moved from 11 am to 1 pm
• 18 x increase in throughput for receiving, sorting, and put-away

Read the full case study here.

Same space, big impact

In a market defined by uncertainty, the need for sustainable growth can be met by maximizing every square inch. At AutoStore, efficiency sits at the heart of our solutions. We can fit any warehouse or fulfillment center.

Maximizing and optimizing space has been identified as one of the 5 main challenges for global fulfillment in the next 5 years. To learn more, download our full report today: 5 Challenges for Global Fulfillment in the Next 5 Years.
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^{[1] https://www.weforum.org/agenda/2023/05/global-economy-2023-chief-economists-report/}

^{[2] https://stockarea.io/blogs/going-up-logistics-leaders-solve-warehouse-space-constraints/eGroceryprovider, Knuspr, tripled its picking productivity while reducing its CAPEX investment using our solutions.}

^{[3] https://www.autostoresystem.com/news/autostore-releases-new-research-report-five-challenges-in-2023}