Explaining the five solutions, benefits, drawbacks, and case studies that should be introduced to achieve warehouse automation

Even within automated warehouses, there are various types of systems. By integrating them with other logistics facilities, further automation in logistics can be achieved. Therefore, it is necessary to choose a solution that fits the company's operational challenges. This article introduces the background and benefits of automated warehouses, and then provides detailed explanations of other automation solutions that should be integrated.

What is an Automated Warehouse?

An automated warehouse is an automation system that centrally manages and automates processes such as receiving, storage, and retrieval of delivered goods using computer systems.

The components of an automated warehouse include stacker racks (shelves), stacker cranes for handling goods, control devices to manage these hardware components, inventory management systems, as well as coordination with production instruction systems and in/out systems to issue instructions for storage and retrieval. This allows for a broad range of automation.

Such automated warehouses are widely adopted by many companies, and there is increasing demand for their multifunctionality and high functionality, driven by expanding utilization purposes and desired effects.

Reasons for the Demand for Warehouse Automation

Expansion of the E-commerce Market

In recent years, the logistics industry has been undergoing significant changes due to the explosive popularity of online shopping. The e-commerce (EC) market, in particular, has expanded to approximately ¥20.7 trillion in total and ¥13.3 trillion in the merchandise category in 2021.

Correspondingly, the volume of handled parcels for home delivery has increased by approximately 700 million (16.5%) over the five-year period from 2017 to 2021





The warehouse and logistics industries are keenly responsive to market changes, especially driven by the rapid increase in freight volume, which has led to a growing demand for logistics facilities. Against this backdrop, major e-commerce companies, as well as players from other industries, are establishing and expanding massive logistics hubs. According to surveys by the Ministry of Land, Infrastructure, Transport and Tourism, the number of warehouses constructed domestically and their total floor area have been steadily increasing since 2011. Particularly, the total floor area of newly constructed warehouses reached 13,025 thousand square meters in 2021, marking a 14.8% increase from the previous year.

Graph: Trends in the Number of Warehouse Constructions and Their Floor Area



In addition to the above, warehouse operations also face the issue of labor shortages. For more detailed information on this matter, please refer to the following article:

The Five Solutions that Comprise an Automated Warehouse

Automated Warehouse

Automated warehouses, which are being increasingly adopted across various industries such as logistics warehouses and factory internal logistics, are broadly divided into four types depending on their intended use.

・Pallet-Type Automated Warehouse
In a pallet-type automated warehouse, goods or products are placed on pallets, which are then automatically transported and stored in high-rise racks within the warehouse. By utilizing the vertical space effectively, it is possible to increase storage efficiency. This type of warehouse is suitable for storing large-sized items, and retrieval after storage can be done simply with a forklift.

・Bucket-type automated warehouse
In a bucket-type automated warehouse, items are stored in standard-sized buckets or containers, allowing for the storage of irregularly shaped goods and products. These buckets are placed on shelves within the warehouse. This type of warehouse is suitable for storing irregularly shaped items, and since storage and retrieval are managed on a bucket-by-bucket basis, it offers flexibility for storing small items as well. In the case of a vertical stacking configuration, items can be automatically stored and retrieved, making the operation simple and easy to manage.

・Free-size type automated warehouse
In a free-size type automated warehouse, a system is used to store various shapes and sizes of items in racks. It allows for the storage of products of different sizes and types without being constrained by shape or weight. Therefore, it is suitable for companies that handle a relatively wide variety of products.

・Moving-shelf type automated warehouse
In a moving-shelf type automated warehouse, items are stored in shelves that are moved by shelf-conveying robots. The shelves, once stored, can be easily moved using a control system or with a single touch. This allows for space saving and efficiency by ensuring forklift aisles are maintained and shelves are rearranged for storage and production efficiency.

Automated Guided Vehicles (AGVs)

Automated Guided Vehicles (AGVs) are robots that automatically transport goods or pull carts in place of humans. They follow predetermined routes using methods such as magnetic tape or 2D codes and operate at scheduled times. By integrating AGVs with automated warehouse systems, storage and inter-process transportation can be automated, contributing to labor reduction and increased productivity.

AGVs can be used not only in automated warehouses but also for various inter-process transportation tasks. For more information on AGVs, please refer to the following article.

Digital Picking System

Digital picking" is a system of work support where a display unit automatically provides information on the types and quantities of items to be picked. By scanning the picking list with a handheld device, the display unit shows details such as item number, name, and quantity. Workers then pick according to the displayed picking list and illuminated location indicators, simplifying and standardizing the process. While picking is prone to human error, implementing a digital picking system can address these challenges, improve operational efficiency, and alleviate labor shortages. Moreover, it is well-suited for handling a wide variety of items in small quantities.

For more details on digital picking systems, please refer to the following article:

The introduction of material handling equipment.

Material handling (MatHand) refers to equipment and facilities that perform tasks such as shipping, receiving, storage, and picking in logistics, replacing human labor. By achieving efficiency and labor savings in logistics processes, it contributes to alleviating labor shortages. Therefore, when introducing an automated warehouse system, it is advisable to consider the automation of inspection and shipping processes through the introduction of MatHand equipment.

For details on the processes and implementation of MatHand equipment, please refer to the following article.

Integration with WMS (Warehouse Management System) and WCS (Warehouse Control System)

The implementation and integration of systems known as WMS (Warehouse Management System) and WCS (Warehouse Control System) are also considerations to be taken into account. WMS is a system for managing location, inventory, and warehouse operations, enabling digital management of warehouse management tasks and tracking progress in each stage of operations such as inbound, outbound, and storage. WCS, on the other hand, coordinates with material handling equipment, controlling and monitoring these devices within the system. Introducing these systems allows for visibility in location management and warehouse operations, centralized equipment management, and contributes to operational efficiency and cost reduction.

For more information on the functions and differences between WMS and WCS, you can refer to the following article.

The three benefits of implementing an automated warehouse

Introducing an automated warehouse offers the following three advantages.

The Advantage of Automated Warehouses ①: Increased Productivity and Operational Efficiency

By automating a series of tasks such as storage, picking, and retrieval from entry to exit in automated warehouses, significant improvements in productivity can be expected compared to manual labor. While human labor is subject to time constraints and breaks, systems and robots can operate continuously without rest. Additionally, depending on the design, it is possible to avoid humans performing hazardous tasks.

The Benefit of Automated Warehouses ②: Space and Manpower Efficiency

Utilizing a pallet-type automated warehouse enables efficient use of vertical space with high-rise racks, while employing a moving shelf-type automated warehouse allows for space savings by compactly arranging racks for storage.

On the other hand, through automation of operations, significant reduction in personnel becomes feasible, leading to labor savings in logistics operations and the ability to allocate limited staff to appropriate tasks.

The Benefit of Automated Warehouses ③: Stabilization of Operational and Product Quality

Even with stringent checking processes in place, human error cannot always be avoided in manual labor. Additionally, considering factors such as labor shortages and aging workforce, issues like work mistakes induced by fatigue are also conceivable. In contrast, automated warehouses can maintain work quality even with increased workload, stabilizing operational quality.

Moreover, automating warehouses reduces human presence in work areas, thereby preventing quality issues such as temperature fluctuations and contamination from foreign objects like insects.

Three drawbacks (considerations) when introducing automated warehouses

There are also drawbacks and considerations to consider when introducing automated warehouses, despite their benefits.

The initial cost is high and the cost-effectiveness may not be realized

The initial cost is essential, hence the need for cost-effectiveness verification. Automated warehouses themselves often involve significant investments, and without solidifying the workflow and processes to be automated beforehand, their full functionality may not be realized. There are often cases where despite aiming for automation, significant effort is required for control.

Response to system malfunctions

Due to the risk of business interruption caused by system malfunctions, it is necessary to develop a BCP (Business Continuity Plan). Since the storage methods are restricted depending on the chosen system for the automated warehouse, it is important to verify whether it will interfere with current operations.

Training and manuals for operators are required.

When introducing new equipment or systems, new workflow may emerge, necessitating the establishment of manuals and rules. Training for operators to learn how to use the equipment or system is also anticipated. It is crucial to develop manuals and rules concurrently with the introduction of equipment or systems.

To address these drawbacks and considerations, consultation with experts in logistics automation is necessary, starting from requirements definition. This applies not only to automated warehouses but also to the introduction of other logistics facilities.

Please refer to the following WP:

Case Studies of Warehouse Automation

Here is an example of warehouse automation using shelf-carrying AGVs. In a customer's warehouse, over 300 types of parts were handled, and workers were manually picking while referring to slips. This led to variations in speed among workers and occasional errors.

So, by introducing AGVs, shelves compatible with AGVs, and a small-scale WMS, automatic part retrieval and shelf transport were achieved. With no need for workers to search or move parts, the task that previously required 9 workers could now be accomplished by 4, leading to further reduction in inventory management workload.

The details of this case are presented in the following article:

LOGITO provides comprehensive support for the introduction of automated warehouses.

At LOGITO, specialized staff conduct pre-assessments to minimize such risks and hedge against them as much as possible through the creation of simulation videos. We provide layout concepts and equipment selections that are easy to operate for our clients.

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