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The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz, Austria

Thu, 16 Oct 2025 09:56:57 GMT

The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz, Austria

Graz: The Global Powerhouse of Intralogistics Innovation

When people think of global centers for automation technology, cities like San Francisco, Munich, Zurich, or Amsterdam often come to mind. Yet over the past decade, one city has quietly — but confidently — emerged as a world leader in intralogistics innovation: Graz, Austria .

As part of a research study for my report “The Dynamic Evolution of the Intralogistics and Warehouse Automation Industry in Graz”, I spoke with senior leaders across the industry — from Knapp, SSI Schäfer, Dematic, Exotec, HAI Robotics, Ferag, Rocket Solutions, and Beumer Group — to better understand how this transformation happened and what lies ahead. The result paints a fascinating picture of a city whose deep engineering roots, collaborative spirit, and innovative culture have turned it into a true global powerhouse.

From Engineering Roots to Automation Leadership

Graz’s rise didn’t happen overnight. It evolved naturally from decades of engineering excellence and mechatronic tradition across Styria. The region’s industrial DNA — from the early automotive days of Puchwerke to precision machinery and control engineering — laid the foundation for what would become a thriving automation ecosystem.

Companies like Knapp and SSI Schäfer were the catalysts. Knapp, in particular, played the role of pioneer and innovation leader, inspiring a generation of engineers and entrepreneurs. As one interviewee put it, “Knapp built the foundation and created the know-how pool that attracted many other companies.”

At the same time, SSI Schäfer’s investment in local talent, paired with Graz’s growing reputation for technical excellence, created a concentration of expertise that few other regions could match. Over time, these two anchor companies set the stage for an entire ecosystem — from suppliers to software startups — to flourish.

A Domino Effect of Talent and Transformation

Every innovation cluster has its inflection point. For Graz, many experts point to the organizational changes at SSI Schäfer in 2017 as a critical moment that unintentionally accelerated diversification.

When leadership shifts disrupted culture and continuity, highly skilled engineers began exploring new opportunities. This created what several interviewees called a “talent domino effect” — experienced professionals joining competitors, forming startups, and bringing fresh energy to the market.

One executive summarized it well: “The 2017 leadership changes didn’t create the cluster, but they accelerated circulation.” The result was a healthy exchange of ideas and talent that further strengthened Graz’s innovation landscape.

Meanwhile, Knapp continued to evolve, investing heavily in R&D and setting new benchmarks in automation technology. Together, these movements transformed Graz into a magnet for skilled professionals, new ventures, and international partners.

Universities, Apprenticeships, and a Talent Engine

Behind every strong industry cluster lies a strong education system. Graz’s success is deeply tied to TU Graz , FH Joanneum , and the region’s technical high schools (HTLs) .

Austria’s dual-education model — combining academic study with practical apprenticeship — has proven to be a key differentiator. Graduates enter the workforce with both theoretical understanding and hands-on experience. As one participant noted, “It’s quite unique to Austria — a system that lets people move from vocational training to higher education while working in companies.”

While some argued that real know-how is learned on the job, most agreed that the universities and HTLs have played a critical role in fueling the industry’s growth. TU Graz develops the algorithmic and robotics core, while FH Joanneum contributes applied mechatronics and software expertise. Together, they ensure a continuous flow of young, moldable talent — even if demand for senior engineers still outpaces supply.

The Talent Race and Changing Work Culture

As more companies established a presence in Graz, competition for talent intensified. The city’s once-steady employment market became dynamic, even aggressive. Companies had to evolve their recruitment strategies from “post a job and wait” to proactive sourcing, campus engagement, and relocation support .

But the competition isn’t just about money anymore. While salaries have risen significantly, employees today seek purpose, flexibility, and culture .
As Markus Bacher, Dematic, put it: “There’s high demand for technically savvy and seasoned solution consultants.” Yet salary alone doesn’t close candidates — it’s the chance to work on meaningful projects, maintain work-life balance, and be part of a company that values trust and development.

This shift toward holistic employment value is reshaping how companies attract and retain their people.

Why Graz Stands Out

So why Graz — and not Frankfurt, Amsterdam, or Paris? The answer lies in density, culture, and lifestyle .

Graz offers an unusually high concentration of intralogistics know-how per square kilometer. The ecosystem is compact — companies, suppliers, and universities are minutes apart — allowing for fast collaboration, agile prototyping, and personal relationships that drive innovation.

One executive described it best: “Short distances, fast access to decision-makers, and a culture of ‘build it, test it, iterate.’”

Add to that a high quality of life — safety, nature, culture, affordable living, and good education — and you get a city that doesn’t just attract talent but keeps it. For many professionals, Graz offers a rare balance between global opportunity and local livability.

The Road Ahead: Sustaining Growth Through Innovation

Can Graz maintain its momentum? Opinions vary. Some see signs of stabilization — that the explosive growth phase has peaked and will now level at a more sustainable pace. Others, like Ferag’s leadership , remain confident: “Graz continues to innovate and attract. It’s fertile ground for future trends.”

Challenges are real: rising living costs, infrastructure limitations (especially airport connections), and a saturated talent market. But opportunities are equally strong — particularly in AI-assisted optimization, robotic productization, digital twins, and green intralogistics .

To stay ahead, Graz must continue nurturing its collaborative spirit and keep pushing into new technology frontiers — from software-driven design to lifecycle services and sustainability.

Conclusion: A Culture of Innovation That Endures

Looking back, Graz’s success story is not about one company or one technology. It’s about a culture of collaboration, curiosity, and continuous innovation .

The city’s transformation from a regional engineering hub into a global leader in warehouse automation demonstrates what can happen when education, entrepreneurship, and industry share a common vision.

As I concluded my interviews, one recurring phrase stuck with me: “You always meet twice in intralogistics.”
In Graz, that couldn’t be truer — a place where ideas, people, and partnerships keep coming back, reinventing themselves, and driving the next wave of innovation.

Graz may not be Europe’s biggest city, but when it comes to intralogistics, its impact is enormous — and still growing.

Caja Robotics Logistics Workshop - Bochum, Germany, Nov. 12

info@iautomate.app — Thu, 21 Nov 2024 17:56:33 GMT

Warehouse Space & Workforce Efficiency Workshop

Overview:

On November 12th Caja Robotics, together with Versand Manufaktur GmbH, organized a supply chain conference in Bochum, Germany, co-hosted by Hoermann Logistics, Agilox, Packsize, and Logivest. In addition, Versand Manufaktur GmbH organized a tour of their warehouse and fulfillment center in Bochum, where they showcased various automated system technologies. This report intends to summarize the learnings and take-aways form that event.

Summary:

Caja Robotics

Caja Robotics is a warehouse automation technology company specializing in robotic solutions for small parts storage and order fulfillment. Their innovative and scalable system uses standard shelving and cardboard boxes for storage, paired with a fleet of robots operating on a goods-to-person workflow.

With a philosophy of “more software, fewer robots,” Caja Robotics prioritizes maximizing efficiency through advanced software and AI. This approach minimizes the number of robots needed while ensuring fast and accurate order fulfillment, making their solution both cost-effective and highly efficient.

At the core of their system is a sophisticated warehouse execution software (WES) platform, a black-box solution that handles all warehouse operations, from receiving to storage and fulfillment. The software optimizes robot tasks and processes, allowing for a smaller robotic fleet compared to other automated case-handling robot (ACR) systems.

Caja’s hardware components are designed to be cost-effective, utilizing standard industry materials like static shelving and cardboard boxes instead of expensive custom racks or totes. This simplicity significantly lowers hardware costs while maintaining high functionality.

The system employs two types of robots working together: taller “storage” robots retrieve cartons from shelves and transfer them to smaller “runner” robots, which deliver items to goods-to-person picking stations. This setup enables productivity rates of up to 350 order lines per hour and over 500 picks per hour per station. The robots have a vertical reach of 5.2 meters and can handle cartons weighing up to 30 kilograms.

Scalability is another key advantage of the Caja Robotics system. Additional robots can be integrated to boost performance, and storage capacity can be expanded by adding more shelving units. The straightforward design and use of standard components highlight the solution’s thoughtful engineering.

With an uptime exceeding 99%, the system is reliable and performs exceptionally well. Caja Robotics can implement a system with 14,000 storage locations and 60 robots in just eight weeks, offering a quick and minimally disruptive setup. This rapid deployment makes their solution particularly attractive for existing facilities, enabling fast operational benefits compared to traditional alternatives.

Key Takeaways from the workshop

- Automation is a great solution to adapt to the dynamic and changing environment of logistics, according to Caja Robotics

- The Caja Robotics solution is based on the principle of more software – less robots. For example, this is reflected in their Ai driven inbound and put-away process. This process focusses on optimizing the lowest cost per storage location based on a smart algorithm and predictive order fulfillment capabilities

- The software can also fulfill orders directly from new inbound product vs picking from existing stock, thereby removing the need for time consuming storage and retrieval movements

- Their intelligent fleet management software adds a 4th dimension to calculate the fastest, not always the shortest route for storage & retrieval and order fulfillment

- For storage mediums, the Caja Robotics solution doesn’t rely on plastic totes alone but can also store carboard and carton. This reduces storage cost

- The storage rack or shelving used has a very simple and fast set-up and costs significantly less than the racking of comparable ASRS goods-to-person solutions

- Upfront investment can be kept low as the number of robots is scalable over time and the storage rack can easily be expanded in future without disrupting the existing operation

Conclusion

Caja Robotics delivers a powerful yet cost-effective solution for companies seeking to modernize their warehouse operations. Their innovative approach leverages advanced software to minimize hardware requirements, setting a new standard in automation efficiency.

The system's scalability makes it ideal for both entry-level automation and high-performance operations, adapting seamlessly to the evolving needs of businesses. With independently operating robots, the solution ensures full redundancy and boasts impressive uptime reliability, making it a dependable choice for optimizing warehouse performance.

For more information visit www.cajarobotics.com

Author: Christoph Buchmann, November 19th 2024

Disclaimer: The views expressed in this white paper are solely the opinion of the writer and are not associated with any corporate entity. This is a personal blog. Any views or opinions presented are personal and belong solely to the author and do not represent those of people, institutions, or organizations that the owner may or may not be associated with in a professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any organization, company, or individual.

The underestimated value of semi-automated solutions

info@iautomate.app — Wed, 20 Dec 2023 01:25:30 GMT

Author: Christoph Buchmann, December 18 ^th 2023

Introduction:

The rise of warehouse automation has been nothing short of meteoric. Over the past decade, the sector has witnessed a growth of approximately 15% annually, driven largely by a global surge in e-commerce and the relentless quest for efficiency in supply chain operations. Yet, as we steer towards an era of seemingly boundless technological innovation, there remains a robust case for the integration of often overlooked semi-automated solutions in our warehousing strategies.

The Limitations of Full Automation

As tantalizing as the prospects of full automation may seem, it isn't always the golden ticket to operational excellence. Full automation demands immense capital, prolonged implementation periods, and oftentimes, a complete overhaul of existing infrastructure. Furthermore, certain tasks remain notoriously challenging for robots. Consider the intricacies of handling fragile ceramics or the unpredictability of packaging oddly shaped, bulky items. These are scenarios where the tactile sensitivity and adaptability of human hands, guided by purely human hand-eye coordination, can often outperform the most advanced robotic counterparts. It's an interplay between mechanized precision and human finesse.

Entry-Level Technology: Taking the First Step

For businesses that are cautious about diving headfirst into the world of automation, semi-automated systems present a prudent middle ground. These entry-level technologies, besides being more cost-effective, allow companies to dip their toes into automation without the commitment and complexities of a full-scale overhaul. Moreover, they significantly mitigate the risks associated with delays or teething problems that might arise during the integration of fully automated systems. Essentially, semi-automated solutions can act as a bridge, providing tangible benefits while also serving as a preparatory phase for potential future expansions.

A Dive into Select Technologies

Mobile Racks: These semi-automated storage solutions maximize space efficiency. While the racks move autonomously, the inventory selection and retrieval processes still necessitate human intervention, ensuring flexibility in handling a myriad of items.

AMRs (Autonomous Mobile Robots): AMRs, unlike their fully automated counterparts, work alongside human employees, facilitating tasks like the transportation of goods within a warehouse. They enhance productivity without eradicating the human touch from the equation.

Deep-Lane pallet radio shuttles: These are specialized storage solutions that autonomously navigate storage lanes. However, the loading and unloading processes are typically semi-automated, ensuring a seamless blend of speed and caution.

VLMs (Vertical Lift Modules): VLMs are storage solutions that automatically deliver items to an access point. While the retrieval is automated, the picking process remains human-led, ensuring accuracy and care.

A New Dawn for Small and Medium Enterprises

As the curtain falls on this discussion, it's pivotal to underscore the transformative potential of semi-automated solutions, especially for smaller businesses. These enterprises often operate under tighter budget constraints, making the prospect of full automation daunting. However, with the suite of semi-automated technologies available, these businesses can now embark on their automation journey, reaping a plethora of benefits ranging from improved efficiency to enhanced accuracy. The fusion of man and machine, in many ways, holds the promise of an optimized, resilient, and dynamic warehousing future.

Author: Christoph Buchmann December 18 ^th 2023

Disclaimer: The views expressed in this paper are solely the opinion of the writer and are not associated with any corporate entity. This is a personal blog. Any views or opinions presented are personal and belong solely to the author and do not represent those of people, institutions, or organizations that the owner may or may not be associated with in a professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any organization, company, or individual.

The Evolution of Cube Storage Systems: From Pioneers to Modern Innovators

info@iautomate.app — Tue, 22 Aug 2023 17:14:58 GMT

Cube storage systems, with their promise of dense storage and efficient space utilization, have rapidly evolved since their inception. This unique storage paradigm has witnessed various changes and improvements, driven by the constant endeavour to achieve better scalability, versatility, and speed. Let's dive deep into the evolution of these systems, tracing their journey from the early pioneers to today's cutting-edge solutions.

The Dawn of a New Era: AutoStore

The late 1990s marked the beginning of a revolution in cube storage with the introduction of AutoStore. Founded in 1996 in Norway, AutoStore pioneered the idea of using a grid system combined with robots on top. These robots, equipped with a mechanism to dive into the grid and retrieve bins, changed the landscape of warehousing. It optimized space like never before, with a promise of up to 60% increase in storage capacity compared to manual shelving.

AutoStore's success lay in its revolutionary design that allowed it to make efficient use of both horizontal and vertical space, eliminating the need for aisles and making the most out of every square inch of a facility.

Ocado's Leap Forward

While AutoStore was making waves in Europe, on the other side of the North Sea, Ocado was beginning to make its mark. Established in 2000, the British online supermarket quickly recognized the potential of automated warehousing. Although initially it relied on traditional automation methods, by the mid-2010s, in collaboration with Tharsus, it had developed its own cube storage solution.

The result was the Ocado Smart Platform, which showcased a three-dimensional grid system, with robots operating on top. These robots, capable of collaborative operation and making real-time decisions based on the system's needs, offered a fresh perspective on what cube storage could achieve. Their subsequent evolution to Intellistore further enhanced the cube storage philosophy, providing a more intelligent, dynamic, and flexible system.

Intellistore

This solution provided the much-needed improvement that AutoStore and Ocado didn’t have – instant access to totes. By removing the need to dig for totes, Intellistore offered a cube-based system with much higher performance. As SKU sets and profiles constantly change, it is important to have SKU selectivity, or in other words instant access to the product. Gone were the days of digging.

Gebhardt's Entry and the StoreBiter 500

Gebhardt entered the arena with its StoreBiter 500 in the late 2010s. While the basic premise of a grid with robots on top remained consistent, Gebhardt introduced multi-level shuttles. These shuttles were capable of vertical movement within the grid, enhancing the system's speed and efficiency. With their patented technology, Gebhardt promised reduced processing times and better energy efficiency.

The Attabotics Take

Attabotics, a relatively newer entrant founded in 2015, took the cube storage system concept and gave it a unique spin. Instead of the conventional grid, Attabotics envisioned a system that mimicked the structure of an ant colony. Robots in this system could move both horizontally and vertically, ensuring faster retrieval times. Their compact system was not only space-efficient but also optimized for e-commerce operations, where speed and accuracy were paramount.

Gridstore’s Vision

Gridstore further expanded on the cube storage idea by emphasizing modularity. Their systems were designed to be scalable, catering to both small enterprises and large corporations. Gridstore's unique selling proposition was its ability to adapt and grow with a company's needs without significant overhauls.

Benefits and the Evolutionary Drive

So, what fueled this evolution in cube storage systems? The reasons are manifold:

Space Optimization: Traditional warehousing methods, with their vast aisles and sprawling footprints, were inefficient. Cube storage systems, with their dense storage philosophy, revolutionized space utilization, a critical factor given the rising real estate costs.

Scalability: Companies grew and so did their warehousing needs. Cube storage systems, with their modularity, allowed businesses to scale their operations without the need for massive infrastructural changes.

Speed and Efficiency: The e-commerce boom demanded faster processing times. Cube storage systems, with their robotic retrievals, promised (and delivered) faster turnaround times, ensuring that orders could be processed in record times.

Accuracy: Human errors in order picking or storage could have costly ramifications. Automated systems significantly reduced these errors, ensuring accurate order fulfillment.

In conclusion, the evolution of cube storage systems showcases the warehousing industry's constant quest for better, faster, and more efficient solutions. From the pioneering efforts of AutoStore to the modern innovations of companies like Intellistore and Gridstore, the journey has been marked by innovation and a relentless drive to improve. For market insiders and observers, the cube storage system's story is a testament to the power of innovation and the promise of a more efficient future.

Why Selectivity Matters for Robotic Goods-to-Person Systems

info@iautomate.app — Tue, 01 Aug 2023 15:46:15 GMT

Why Selectivity Matters for Robotic Goods-to-Person Systems

Debunking the myth that Cubic Storage systems don’t have to “dig” for bins as they rely on a natural ABC slotting algorithm

Author: Christoph Buchmann, June 2 ^nd 2023

Introduction:

Selectivity matters!

Instant access to product (bins) is critical for the operational performance of any Goods-to-Person storage & order fulfillment system. Any multi deep storage configuration naturally leads to reshuffling the bins in front (or above, in case of vertical storage), taking up precious time and valuable performance capacity.

In the past there have been claims that cubic storage systems, such as Ocado® or Autostore® do not have to “dig” frequently for bins, as the system relies on a self-generating natural ABC slotting algorithm.

However, the math doesn’t support this statement!

This white paper is intended to objectively illustrate why cubic storage systems inevitably have to dig for bins in any multi deep storage configuration, how that negatively impacts performance and explain why product (bin) selectivity in a Goods-to-Person system matters and directly influences operational throughput and system performance.

It is important to understand that there is no such thing as a “one-size-fits-all” Goods-to-Person system. Just like with cars, there is a wide variety of options built for many different applications. Many of the available Goods-to-Person technologies have their sweet-spot, depending on whether the operation is performance driven or storage driven, depending on ABC profiles, depending on the amount of replenishment storage and other operational factors that must be considered.

So, the questions you have to ask yourself are, what are my operational needs and which system is the right one for me? The devil is in the details, but in this post, by using simple mathematical examples, we will help shine some light on the topic of “bin digging” and debunk the myth of “natural ABC slotting”.

To dig or not to dig…?

Statement:

- Selectivity matters – Instant access to product is critical for performance. Why pay for extra robot performance if it doesn’t benefit your throughput and order fulfillment rate?

- Debunking the myth – Claiming that cubic storage systems like Autostore® have a natural ABC slotting algorithm. The math doesn’t support it!

Fact check 1.) “Eliminating the need to dig for bins”

Cubic storage systems, like Autostore®, claim that the 80/20 ABC pareto curve naturally slots their bins in the right sequence, thus almost eliminating the need to dig for bins. Let’s fact check this:

- Let us look at the math of digging out 10 required bins for picking in a 16 deep grid example based on a perfect 80/20 pareto curve:

- 10 bins required for picking = 40 bins moved

- To access the 10 bins required for picking the robots must move 40 bins in total. Ouch!

- That’s 3 bins moved to access every 1 required bin on average:

o Translated in performance, this means the system needs the additional robot performance to move 3 bins for every 1 bin it needs to pick from

o This is unproductive and a waste of money for additional robots not contributing to active picks (now add to your OPEX budget the annual fees you’ll be charged per robot!)

- Automatic storage systems with direct access to product only require 10 moves for 10 required bins

- In case of double deep storage this amounts to 12 moves for 10 required bin retrievals

The fact is, with cubic storage systems where bins are stacked vertically, you need many more robots simply to handle the:

1.) excessive digging

2.) put-away of not required bins

3.) reorganization of bins to maintain healthy ABC slotting

On 16 deep bin stacks you’re touching 4x more bins than you actually need to retrieve for picking

That’s why selectivity matters.

Fact check 2.) Cubic storage system like Autostore® have a natural ABC slotting”

It is inevitable that slow moving SKUs will be required for order fulfillment, which consequently means the system is constantly disrupting any effort to maintain a healthy ABC balance within the stacks of bins. So, the often-presented image below of a “natural ABC slotting” doesn’t occur in reality. It’s a theoretical best-case scenario that in a live operation is not sustainable nor achievable.

It is important to understand that every time a slower moving bin (lower sitting bin) is requested, the entire “natural ABC slotting” is disrupted. And this will occur at least 2 times for every 10 Bin requested, so in other words, it’s constantly happening.

- How does bin preparation maximize throughput by Jon Schechter, VP North American Business Development

- https://www.autostoresystem.com/insights/how-does-bin-preparation-maximize-throughput

Let’s back this up with an example. In this example let’s assume Bin #12 (12 ^th deep) was required for a pick:

- The system must touch 11 bins to access the 1 required bin #12. Bin 1-11 are put away at the next best available location, meaning on top of other stacks. They are not always put back into the original stack of bins in perfect sequence. That would be time consuming and a performance killer. While Autostore® has sophisticated software that allows for this, in reality putting bins away to the next best location is prioritized over putting bins away in the correct reverse storage sequence back into the stack they came from.

- Once bin #12 has been picked from, it will be placed back on top of a random stack of bins. Bin #12 will only “naturally” sink down to position #12 after 11 other bins have been requested again for picking. And the whole flow of excessive bin movement and natural ABC slotting disruption repeats over and over again.

- For bin #12 to sink back into its natural ABC position it will need to be touched another 11 times by robots without being required for a pick

o Note: During off-shift hours or nighttime the robots are able to reorganize bins to create a better ABC sequence for the next day operation. However, this is an unnecessary process that systems with selectivity don’t require. And a luxury that can only be used if you do not operate the night

- It is important to point out that Autostore® has sophisticated software to improve the put-away sequence of bins, but its effects are not that significant

The consequence of slow-moving bins flushing out other bins and spilling over into prime locations (top access) can been seen in this image:

*side view of grid after 100 picks using 80/20 pareto

In this example many faster moving products (bins) are now buried underneath slow-moving products and sink down to less favorable locations. That results in even more digging, since these faster moving products will be required frequently with high probability. And the disruption of the natural ABC slotting continues.

Now let’s look into the consequences or negative side effects of digging out slower moving products (bins):

- Bins that are being “flushed out” but not required for a pick temporarily block access to other bin stacks

o Some bin stacks required for new order picks are now temporarily not available as these stacks are blocked by bins being dug up and because this area is temporarily being occupied by robots putting away bins

o Putting away these non-required bins also ties up additional robot performance

- Bins are not put back in perfect order

o Usually bins that are touched or dug up but not required for picking are preferably put away in the next best location, which means on top of a new stack in close proximity

o This process speeds up the “digging” process, since the desired bin can be accessed in a reasonably short time. However, this disrupts the ABC slotting of the next stack the bin is put away at and now a slow-moving bin sits on top of a fast moving bin, and the digging begins again

- Bins can be put back in perfect sequence:

o Yes, this is a correct statement, however it drastically slows down the process since all bins need to be put back in perfect order. And the returning slow moving bin will still be put on top of another stack, adding one more digging movement once bins from that stack are required. This simply requires additional robots (maintaining any sequence is a performance killer, which is why random put-away is the preferred methodology)

So in reality, after digging out Bin #16, this is what the top of a grid looks like vs the theoretical state of a perfect 80/20:

- Not required bins are put-away to the next best location

- Rarely are they returned in perfect order to the same stack at the right depth

This process of constantly disrupting the ABC slotting sequence is amplified the more SKUs a system has. With increasing SKU count (i.e. > 10,000 SKUs) the probability that a slow moving bin (= a lower stored bin) will be requested increases, as the absolute number of SKUs that need to be accessed at the lower levels increases. That in return inevitably creates more digging and further disrupts the ABC slotting sequence.

Operations with a high SKU count are less likely to have a favorable 80/20 pareto curve. This further contributes to the problem of excessive digging.

è Fact check 2.) There is no such thing as a “natural slotting” in cubic storage systems. The fact that the system needs to dig for bins means it’s constantly disrupting any efforts to maintain a healthy ABC slotting sequence by design

The only way to overcome this in a system like Autostore® is through constant “bin preparation” and reorganization of bins. A throughput and energy (cost) consuming process not required when you have a system that offers selectivity (instant access to product).

Inventory isn’t static, it’s highly dynamic and constantly growing and changing. Therefore selectivity matters!

Fact check 3.) “It only takes seconds to dig out a bin”

Let’s take a look at another intriguing yet practically misleading claim:

“It only takes 33 seconds to dig a bin out that sits 4 deep and less than 4 minutes to dig out the bottom bin”

Yes, while true, this is the mechanical rate to dig out a bin, in a perfect environment, if only one single bin is required. This is far from the reality of a live operation with a large number of open and fluid tasks with different urgencies and priorities.

More importantly, this is not the time required from dropping an order for a bin request to actually receiving it at the pick station for picking. It’s a misleading statement as it’s not the right metric to measure order fulfillment speed or performance. But let’s take a deeper look:

- Claim of only needing 33 seconds to dig a bin 4 levels deep (or 3+ minutes for 16 deep)

o This is a purely mechanical rate and almost irrelevant in a live operation as it’s not the time from requesting a bin to being able to pick from it at the pick station

- The right metric to measure order fulfillment performance is:

o What is the time between the WMS dropping the order on the WES to when the operator at the pick station is being presented with the required bin? Surely not 33 seconds…in reality closer to 30 minutes, at best

- Understanding statistics:

o Claiming that “in most cases 37% picks come from top level” is an extremely rare order and SKU profile which quite frankly, does not reflect most warehouse fulfillment operations

o In reality most supply chain operators would be happy to see a 70/30 ABC pareto curve. This means 70% of requested bins will come from levels 1-5 and only 6% of bins requested actually sit on the top level (6% vs 37%!!!)

è The mechanical rate to dig out a bin is an irrelevant performance metric. It does not reflect the time it takes from bin requested to bin being presented at pick station

Fact check 4.) “Cubic storage system performance is easily scalable by adding robots”

The last myth we want to look at is the claim that cubic storage systems are easily scalable in performance. Yes, but actually no…:

- Yes, you can add robots to the 2-dimensional grid of a cubic storage system

- However, you’ll quickly run into robot congestion. Robot congestion describes the situation when there is not enough space for too many robots to maneuver simultaneously

- Since the robots can only move in 2 dimensions and each robot optimally requires +/- 30 bin fields to maneuver, you will quickly reach the maximum number of robots you can deploy on the existing grid. So what now?

o Well, there you have it. Your performance is not easily scalable. In fact, it is quite limited

o You can expand the grid, which will:

§ Cost you money and downtime

§ Resulting in additional storage capacity you might not need, but you’ll be forced to accept since you need the 2-dimensional space on the top of the grid for performance reasons

è Performance is not easily scalable by adding robots, since the robot operating space is 2-deminsional and therefore quickly limited

Conclusion:

Cubic systems with their highly compact bin arrangement are great solutions for high storage capacity and low throughput. Their financial sweet-spot is almost unbeatable in this scenario.

The downside is you’ll end up paying for an excess amount of robots and unproductive performance consuming tasks that are required to compensate for the high ratio of bins touched vs bins requested. In other words, you’re paying for robots whose performance isn’t contributing to active picks and order fulfillment tasks.

The inevitable digging of bins and the continuous disruption of the “natural” ABC slotting sequence make these systems a less favorable choice for medium to high performance systems, or using data anything higher than 1,000 lines/h picked, in my opinion.

If throughput is required, you’re better off looking at the many Goods-to-Person system alternatives that offer product selectivity. That’s the key ingredient and the main purpose of this white paper.

Based on our research, cubic storage systems have their financial sweet-spot where the bins/h requested ratio vs bins stored is < 5%.

For example:

- A system with 10,000 bins and only 100 bins/h is a formidable fit for a cubic storage system (ratio of 1%)

- A system with 20,000 bins and 2,000 bins/h is not (ratio of 10%)

If you need performance, there are better solutions that offer selectivity and have a more attractive financial sweet-spot. Here are some examples that provide product selectivity and that also solve the “digging” problem cubic storage systems such as Autostore® have, but that still offer very dense and compact storage:

- Intellistore

o Bins are stacked on top of each other, but the entire stack is pushed up for another robot to access precisely the bin needed. That’s a brilliant combination of storage density and product selectivity for high performance

- e.Scala from stow Robotics:

o 66% of all bins are always instantly accessible and the other 33% only require 1 shuffle movement, thus allowing for very high performance and throughput rates

o The rack storage structure is optimized for high storage density, so you’re getting the best of both worlds

- Exotec:

o 100% selectivity as every bin is always accessible. This results into great performance

o The trade-off is the single-deep storage, impacting storage density. However, this can be off-set by the fact that the rack can be built up to 12m

- Captive shuttle systems: examples: Knapp OSR, Dematic MultiShuttle, SSI Schaefer Cuby

o These systems offer the highest performance, as they have a robot per every storage level

o They also offer good storage density as bins can be stored double and triple-deep

- NanoFulfillment, Inc. (NanoFC):

o Great solution for hyperlocal order fulfillment with fast access to products

o Redeployable, small footprint, high throughput and high storage density

So back to the original statement: Why does product selectivity matter?

- Because it directly impacts or enables system throughput, meaning a higher and faster order fulfillment performance. And that is what supply chain operations will pay for to reduce the cost per picked line

- There is an unpredictable element of forecasting which SKUs are required for the next wave of orders. That is why instant access to product matters, since it speeds up the process

- Also, the risk of product inaccessibility or system downtime is higher where products cannot be instantly accessed. A scenario no warehouse operation wants to experience

To end this white paper, and to keep it objective, let me restate that there are great advantages to cubic storage systems, such as Autostore® . They are simple, reliable, usually have a low entry price level and can be expanded over time.

The more important question is whether your operation needs performance and flexibility or high storage density, or both?

Author: Christoph Buchmann, June 2 ^nd 2023

Disclaimer: The views expressed in this white paper are solely the opinion of the writer and are not associated with any corporate entity. This is a personal blog. Any views or opinions are presented are personal and belong solely to the author and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any organization, company, or individual.

Why iAutomate?

Wed, 03 Aug 2022 16:46:05 GMT

iAutomate was born out of the need to simplify access to general warehouse automation information and facilitate the initial approach of understanding and qualifying the business case for warehouse automation.

How did we identify this need? How did we come to this conclusion? Isn’t warehouse automation information readily available and aren’t solution providers interested in giving this information to the public? The answer is quite simple – No!

With many years of having worked in the field of intralogistics, specifically warehouse automation system solutions, it occurred to us that the most pressing initial questions and needs of our customers were categorically ignored or left unanswered:

- What does warehouse automation cost?

- Is there an ROI?

- Should I consider automation for my supply chain operations? And if so, which solutions?

- How can I educate myself about what I need and what solutions and technologies are available in the market?

- How much time do I really need to invest to answer my initial questions and determine next steps?

To better describe this need, let us use the analogy of buying a new car. At some point the thought of or even the need for a new car happens to manifest itself. In this situation however, the individual has only developed that basic initial approach – a new car, possibly? But now the individual is confronted with several questions:

- What type of car?

- What will it cost?

- Does it serve my needs and what benefits can I expect?

- What cars are available and how do I educate myself on the options available to me?

- How much time and energy must I invest to answer this simple and initial question?

It becomes apparent that the individual is in an early qualification and assessment stage, but far from buying a car short term, or possibly even mid to long term. Most car dealers (or automation system solution providers) will jump to sell the individual their car, completely ignoring the actual needs and requirements of that person or business. Before determining which car is the right one, the individual seeks to get a quick, non-binding and high-level assessment of the options available to satisfy his/her needs. We call this process the “need to quickly qualify the business case”.

It is important to understand that the individual doesn’t want to invest time and money at this stage of the process. A few simple key data points should suffice to help the individual move on to the next step, once it has been established, or disqualified, that there is even a need for a new car, and if so, which options are to be considered.

Now back to warehouse automation. In this field the approach is no different. There is an abundance of warehouse automation solutions, yet the solution providers expect the individuals to already come prepared and ready to invest. The actual task of the solution providers should be to help the customers qualify the business case for automation in a simple a quick fashion.

iAutomate focusses on doing just that – qualifying the business case for automation with a few mouse clicks, based on a do-it-yourself approach, empowering the customer to transition from this initial phase to being in a position to seriously consider automation for their business.

By providing a tool that answers these initial questions and based on a foundation of being user-friendly, insightful, having a do-it-yourself approach and providing reliable results, iAutomate was built to become the leading application for the rapid qualification of warehouse automation solutions and the resulting business case for supply chain businesses.

Built by seasoned and experience subject matter experts, the iAutomate configurator empowers the customer to qualify warehouse automation themselves, before engaging in lengthy, time and resource consuming and expensive consultation and dialogue with warehouse system solution providers.

Furthermore, it is an outcome neutral platform, meaning iAutomate is not tied to any specific solution provider nor does it benefit from the outcome of the qualification process. It simply serves to empower customers to consider the right solutions for their business by themselves.

With this vision and based on the principle of empowering the customer, iAutomate is your first step towards developing an automated system solution strategy for your warehouse and supply chain operations.