Implementing AS/RS can significantly benefit SMEs in terms of efficiency, accuracy, and cost savings, says Darshana Thakkar.

With the increase in the global supply chain and competition, the need for inventory management has increased warehouse demand across the globe. Further, inventory management is becoming increasingly important in manufacturing facilities to survive in a dynamic market of global competition.

Material storage and retrieval, as and when required, are complex jobs and require colossal labour. Further, manual material handling is costly, inefficient, and time-consuming. It also leads to material loss due to inadequate handling.

Major problems in manual storage and retrievalDiscover how implementing Automated Storage and Retrieval Systems (AS/RS) can revolutionize warehouse operations for SMEs, bringing efficiency, accuracy, and cost savings. Darshana Thakkar, an MSME Transformation specialist, sheds light on the transformative potential of AS/RS in streamlining inventory management and enhancing competitiveness in today's dynamic market.

• Waste of time insearching lost or damaged products

• Inaccurate records

• Orders management consumes too much time, causing delays in customer deliveries

• Waste much space

• Excess inventory, and

• Workers exposed to dangers.

In the modern technological era, Automated Storage and Retrieval System (AS/RS) for materials has been proven very effective. According to Research And Markets, the AS/RS market is projected to grow from US$ 8.7 billion in 2023 to US$ 12.7 billion by 2028.

An AS/RS is a computer-controlled system that automates storing and retrieving items from storage locations. It typically involves a combination of machinery, software, and controls to handle, store, and retrieve materials with precision and speed.

Supporting technologies of AS/AR

• Conveyors
• AGVs
• Control system
• RFID chips
• Tracking technologies
• Sensors, and
• Grippers.

While large corporates and warehouses have already implemented this system, it is still outside the purview of SMEs and MSMEs in India. As an MSME growth expert, I would love to share insightful information about this technology with the SMEs.

Implementing AS/RS can significantly benefit SMEs in terms of efficiency, accuracy, and cost savings.

Benefits of AS/RS to SMEs/MSMEs:

1. Increased Efficiency: AS/RS can significantly improve efficiency by automating storage and retrieval. They can handle large volumes of goods quickly and accurately, reducing the need for manual labour and minimising errors. Further, automated systems can operate 24/7, ensuring continuous operation and minimising downtime.

2. Space Optimisation: Space is the biggest constraint for SMEs. AS/RS systems use vertical space better, allowing warehouses to store more goods in a smaller footprint. It can lead to significant cost savings by reducing the need for more extensive facilities.

3. Inventory Accuracy: Automated systems are less prone to errors than manual processes, leading to improved inventory accuracy. It can help reduce stockouts, overstock situations, and associated costs.

4. Safety: By reducing the need for manual lifting and handling of goods, AS/RS systems can improve workplace safety by minimising the risk of injuries and accidents.

5. Scalability: AS/RS can be easily scaled up or down to accommodate growing or changing inventory needs without significant disruptions to operations

6. Real-time Tracking and Control: Many AS/RS systems come with integrated software that provides real-time tracking and control of inventory, allowing businesses to monitor stock levels, track shipments, and make informed decisions quickly.

7. Cost Savings: While the initial investment in an AS/RS can be significant, the long-term cost savings in labour, space, and inventory management can outweigh the upfront costs. Additionally, automation can lead to faster order processing and fulfillment, reducing lead times and improving customer satisfaction.

8. Reduced Labour Costs: By automating repetitive tasks such as picking and storing, AS/RS systems can reduce the need for manual labour, leading to cost savings in labour expenses.

Tailoring AS/RS for SMEs to optimise initial cost

1. Modular design: Opt for modular AS/RS systems that can be easily expanded or modified per the business growth.

2. Integration with existing systems: The AS/RS can be integrated with existing inventory management, ERP, or WMS systems for a seamless operation that helps reduce initial investment.

3. User-friendly interface: Select AS/RS solutions with intuitive user interfaces that are easy for SME employees to operate and manage.

4. Affordable options: Look for cost-effective AS/RS solutions designed specifically for SMEs, which may offer simplified features or leasing options to reduce upfront costs.

5. Maintenance and support: Consider the availability of local support and maintenance services to ensure the smooth operation of your AS/RS.

Steps to implement AS/RS

1. Assessment and planning: Conduct a thorough evaluation of the current storage and retrieval processes, inventory levels, and future growth projections to determine the best ASRS solution for your needs.

2. Vendor selection: Research and select a reputable AS/RS vendor specialising in solutions for SMEs and has a proven track record of successful implementations.

3. System design and configuration: Work with the vendor to design and configure the AS/RS to meet your specific requirements, including storage capacity, throughput rates, and integration needs.

4. Installation and testing: Coordinate the installation of the AS/RS with the vendor and conduct thorough testing to ensure all components function correctly and meet performance expectations.

5. Training and deployment: Provide comprehensive training to your employees on effectively operating and managing the AS/RS. Once training is complete, deploy the system and monitor its performance closely to identify any issues or areas for improvement.

Types of automation in storage and retrieval systems

1. Automated Storage and Retrieval Systems (AS/RS):

• Unit Load AS/RS: Designed to handle large loads, such as pallets or containers. They use cranes or shuttles to move the loads to and from storage locations.

• Mini Load AS/RS: Used for smaller items and can handle high-speed picking operations. They typically use robotic arms or shuttles to retrieve items from bins or trays.

2. Robotic systems:

• Deploy Robots for tasks like picking, packing, and sorting. These robots are equipped with sensors and vision systems to identify and handle items accurately

3. Conveyor systems:

• Automated conveyor systems transport items between different warehouses or distribution center areas. They can be integrated with sorting and scanning systems for efficient material flow.

4. Automated guided vehicles (AGVs) and robots:

• AGVs and robots are used to transport items within the warehouse or between different facilities. They can operate autonomously or be guided by a central control system.

5. Warehouse management systems (WMS):

• WMS software is crucial in automating and optimising storage and retrieval operations. It manages inventory levels, tracks items in realtime, and optimises picking routes to minimise travel time and labour costs.

Summary

As businesses strive to meet customer expectations for faster delivery times and lower costs, investing in AS/RS systems can provide a competitive advantage.

By carefully planning, selecting, and implementing an AS/RS tailored to the unique needs and constraints, SMEs can realise significant efficiency, accuracy, and cost-effectiveness improvements, ultimately leading to enhanced competitiveness and growth opportunities.

Darshana Thakkar is an MSME Transformation specialist and Founder of Transformation-The Strategy HUB. She is a pioneer in transforming MSME companies with an Electrical engineering and MBA in operations background and 28 years of hardcore industrial experience. She helps MSMEs define growth paths, derive marketing strategies, improve business operations, adopt digital Transformation, and increase profitability. She is a winner of several regional and national awards and recognition as an MSME activist and women's business leader. The Transformation was listed among the most trusted consulting companies in 2022 and the Top 50 consulting companies for MSMEs in 2023. She holds a few honorary positions among the Industry Associations

https://www.linkedin.com/in/darshanamthakkar/

[email protected]

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