May be some of us are still not aware of this material handling solution, however, in fact, AGVs have been introduced since 1950’s and have quickly become a catalyst paving the way to intralogistics 4.0. Due to the rapid progress of industry revolution, companies have started to invest in innovative technology in order to keep businesses stay competitive in today’s industry. Just a quick heads-up for you, AGV is basically a material handling system that transport goods or materials throughout the warehouse, distribution center or manufacturing facility without human intervention or guidance.

In today’s market, there are several types of AGVs and are categorized according to the load requirements and transport methods.

Reference:

1. Cruz, M. (2018, October 23). Quick Key Facts About Automatic Guided Vehicle Systems. MHI Blog.
2. Taglic, N. (2021, October 15). Automated Guided Vehicles (AGV) Meaning & Types. 6 River Systems.
3. Geekplus Technology Co., Ltd. (2021, October 6). 5 Questions to Ask when Choosing an AGV or AMR.
4. Manufacturing.net. (2022, March 29). Types of AGVs and How to Choose the Right Ones for Your Company.

Today, more and more businesses nearly every industry are turning standard forklift into AGV or AMR for material movement. There is no doubt that implementing AGVs would eventually bring benefits to the operations, however, as a business owner may weigh the pros and cons between standard forklift and AGVs in order to decide which is more beneficial to your business.

Cost

As compared to standard forklift, of course AGVs have a higher upfront cost. However, why people are still considering to implement AGVs into their business? This is because AGVs are cheaper in long run. Just imagine salaries paid to the operators are never ended, while AGVs are the one-time investment. AGVs only required minimal human interaction which significantly reduce the labor cost. Apart of that, AGVs are able to work continuously 24/7 (disregarding downtime for repairs and reprogramming), and this could eventually substitute 2 or 3 operators, causing significant savings in labor cost.

Task Required

Depending on your operation, whether it is a repetitive job or non-repetitive job, will also become a consideration to decide which options make more sense. For a non-repetitive job, standard forklifts will be a better option in order to carry out job more efficiently as AGVs would have to be specially mapped and programmed. Also, standard forklifts are more flexible in handling pallets and loads with variety sizes. In contrast, AGVs are more efficient in doing repetitive job since the program would tell them where to load and where to unload the goods.

Working Environment

AGVs do provide a unique benefit as compared to standard forklift which is able to work in an extreme environment. They are ideal to use in an extremely cold weather, hot climate and also handling hazardous substances that are uncomfortable or unsafe for humans.

Safety

AGVs are much safer if compared with human-operated equipment. Reason being is AGVs are equipped with safety devices such as cameras, object detection, laser, warning lights and etc., allow them to operate safely around personnel and building structures. Whereas, for human-operated equipment is ultimately rely on the operators, and as we all know human always has the potential to get distracted or fatigued. This would eventually be causing injuries or accidents in the workplace.

IT Infrastructure

As we all know, AGVs vary in complexity and navigation systems, thus, before implementing AGVs into business operation, you have to ask yourself, are you willing to invest in IT infrastructure? In order to enhance the operational efficiency, AGVs have to synchronized with the Warehouse Management System (WMS), Manufacturing Execution System (MES) or Enterprise Resource Planning (ERP) system. By integrating AGVs with the warehouse control system, it brings benefit to streamline processes like inventory tracking and material ordering. In this case, company able to save time by not having manual inventory tracking (stock take), at the same time eliminate human errors. If you required AGVs to communicate with cloud or a local control system, you have to invest in wireless connectivity as well in order to get better signal as WI-FI has wider range compared to other connectivity such as Bluetooth or GPS.

Reference:

1. Hinz, P. (2013, July 15). Forklifts vs. Automated Guided Vehicles. Adaptalift.
2. T. (2014, August 4). AGVs vs Forklifts: Benefits and Drawbacks. NFE.
3. A. (2014a, August 22). Forklifts vs. AGVs: A Full Comparison. Forklift Nation.
4. Fred Automation. (2020, July 7). 10 Core Questions to Guide You Toward the Right AGV.
5. J, R. (2022, January 17). Standard Forklifts Vs. Automated Guided Vehicles. ForkliftAccessories.Com Blog.

You could actually see the most fundamental difference is from the name itself. AGV is a guided vehicle, while AMR is operated autonomously. Over the past few decades, AGVs have dominated in the market. Nevertheless, they have come across a powerful competitor in the recent years which is AMR. Reason being is traditionally, AGVs are travelled along a predefined route, guided by sensors, magnetic strips or wires installed on or under the floor, which requires additional infrastructure cost. AGVs can detect obstacles in its path but cannot maneuver them. They will only continue to move until the obstacle is removed. In contrast, AMRs navigate by using sophisticated onboard sensors and maps which allow them to interpret their surroundings. This made AMRs are more flexible where they can sense the obstacles either moving or stationary and move around them to complete their designated task. 

However, as time passed, AGVs technology has been improved incrementally. The new generation of AGVs leave the physical path away and follow more flexible technology just like AMR. Therefore, to differentiate between AGVs and AMRs, it is actually depended on the application. AGVs are more robust in load handling capabilities. AGVs can move both horizontally and vertically just like a forklift. So, AGVs will be the better option if your operation required to retrieve heavy pallets from warehouse racking. Even though some of AMRs can also do horizontally and vertically task, they have much less-weight load handling capacities, range from 100kg to 1500kg.

Reference:

1. Allen, S. (2016, October 27). Self-Driving Robot Navigation Methodology Explained. Aethon.
2. Walker, J. (2020, July 20). AMR vs AGV: A Clear Choice for Flexible Material Handling. Waypoint Robotics.
3. Andres, M. (2020, August 20). AGV vs. AMR: Which Robot Suits Your Warehouse Operations Best? Toyota Material Handling Northern California.
4. L. (2021, September 25). AGV vs AMR: What are the differences and which one do you need in your facility. Robotics & Automation News.
5. Lin, D. (2022, March 1). AMRs vs. AGVs: What are the differences? Fetch Robotics.
6. Hilke, A. (2022, May 18). AMRs vs. AGVs: The Differences Explained. Conger Industries Inc.

The answer is Automated Storage and Retrieval System (ASRS), a combination of equipment and computer-controlled system that handle, store and retrieve goods or materials as needed with precision, accuracy and speed. There are several types of ASRS technologies in the market today to accommodate varying throughput demands.

Type of ASRS	Description
Unit Load ASRS	Unit load ASRS are used to handle large and heavy loads such as full pallets or cases of items that weighs for few thousand pounds. To function, unit load ASRS requires cranes and racking system. There are two types of cranes: fixed-aisle crane and moveable aisle crane. For fixed-aisle crane, it is fixed and only moves horizontally and vertically along single aisle, in other words, if there are multiple aisles, you need to have a fixed-aisle crane in each one. While, for moveable aisle crane, it can move from one aisle to another aisle, thus only one moveable aisle crane is needed for multiple aisles.
Mini Load ASRS	Mini load ASRS are designed to handle lightweight loads such as totes or trays that weighs for hundred pounds. Mini load ASRS usually use crane or shuttles to do goods storage and retrieval. For crane type, it is similar to the fixed crane in unit load ASRS but with much smaller version. Whereas, for shuttle, a small flatbed truck, moves along the track to perform the tasks.
Carousel ASRS	There are two types of carousel-based ASRS: horizontal carousel and vertical carousel. A horizontal carousel is like a merry-go-round concept, which comprised of bins that rotate horizontally around a track. Whereas, a vertical carousel is like a Ferris wheel, where the totes or bins are rotated vertically, providing high density storage.
Vertical Lift Modules (VLM)	VLM serves the same purpose as vertical carousel which is utilizing the vertical space in warehouses, but differ in working mechanism. VLM is a storage system that comprised of two parallel columns, used inserter or extractor in between column of trays to retrieve and store items instead of having the rotating bins.
Cube-based Storage	For cube-based storage, all items are stored inside bins and bins are stacked in a cubical storage grid. Robots travel on the top of the cube grid to shuffle, sort and retrieve the inventory bins and deliver them to a workstation.

Reference:

1. Andres, M. (2021, July 26). Automated Warehouse Systems: What is ASRS and How Can It Help? Toyota Material Handling Northern California.
2. Allen, W. (2021, December 4). AS/RS Systems: What is an Automated Storage and Retrieval System? 6 River Systems.
3. Kardex Systems UK Ltd. (n.d.). ASRS 101: Intro to Automated Storage and Retrieval Systems.
4. Hilke, A. (2022, May 18). ASRS Warehouse Systems: Everything You Need to Know. Conger Industries Inc.
5. SJF Material Handling Inc. (n.d.). Vertical Carousel Tutorial [SJF.com]

If you are thinking whether to employ ASRS to automate your warehouse or order fulfillment operation, ask yourself a few questions:

• Do you run out of storage space?
• Do you need better inventory control?
• Is the throughput too slow and difficult to improve?
• Do picking errors always happened?
• Are you having shortage in manpower?
• Do your workers need to work in extreme temperature?
• Do you have existing WMS or ERP system?

If you having all “yes” for the questions, then ASRS will definitely be the smart move for your operation. Let’s explore why should you need ASRS technology.

Increased Storage Space

Space is a cost for business. How ASRS can help in increasing storage space? ASRS help to save up to 85% of floor space by making better use of space availability in a facility. ASRS requires narrower aisle as compared to human-operated forklifts, and able to expand storage upwards by utilizing the vertical space, providing high dense storage.

Improved Inventory Management

ASRS is usually integrated with warehouse management system (WMS) or enterprise resources planning system (ERP). Thus, it is able to provide more accurate insight into the inventory level where you can always know what you have and where it is. Also, by having ASRS, you can eventually know the fast-moving and slow-moving items, which help pretty much in stock replenishment.

Improved Accuracy, Efficiency and Throughput

For human operators, they need to spend time to travel to the picking destination and visually search for the correct items. Also, in a manual operation, they will need to use a handheld scanner or keying data into the system. As we all know, human make mistakes sometimes. They might pick the incorrect items or key in wrong item numbers, which apparently will affect the whole operation process. Whereas, for ASRS, it knows exactly what to pick, where to pick and how much to pick, achieving 99.9% of accuracy, yet eliminating the operators’ travel and search time. Other than that, ASRS helps to improve throughput by reducing the reliance on human operator for order picking and replenishment. Unlike human, ASRS uses robotics, which doesn’t need a break, and this enables continuous operation, as a result, achieving a huge gain in throughput.

Reduced Labor Cost

Labor is becoming scarcer every year. When the labor supply is constraint, the labor cost will become expensive indirectly. Therefore, ASRS will be a great choice in order to transform the manual warehousing tasks, including redundant and repetitive task into machine-driven ones. With ASRS, it helps to reduce 2/3 of the labor, as a result, you can see the labor cost is reduced significantly in long run.

Reference:

1. Roberts, J. (2022, January 4). How Can Automated Storage Retrieval Systems Be Efficient? | Industrial Solutions from Randex. Randex Ltd.
2. Stone, S. (2021, December 7). Pain Points: When to Consider ASRS Systems | Cisco-Eagle. Warehousing Insights | Material Handling Systems.
3. Dube, C. (2022, February 22). ASRS Frequently Asked Questions. Kardex Systems UK Ltd.
4. Tarr, C. (n.d.). ASRS 101: Intro to Automated Storage and Retrieval Systems. Kardex Systems UK Ltd.
5. Hilke, A. (2022b, May 18). ASRS Warehouse Systems: Everything You Need to Know. Conger Industries
6. Romaine, E. (2020, September 15). Pros & Cons of AS/RS for Warehouse Automation. Conveyco.

In a facility, normally there will be an external power generator prepared as a back-up power. In this case, ASRS operation can be guaranteed even in a power outage.

 Reference:

1. Specter, S. (2019, December 19). Four Myths About ASRS — Busted. Warehouse Automation.
2. Dube, C. (2022a, February 22). ASRS Frequently Asked Questions. Kardex Systems UK Ltd.

Due to the level of automation and robotics, building a full-fledged ASRS warehouse will definitely take longer than a traditional warehouse, which requires at least six months. In order to install ASRS warehouse, there are few stages to go through:

Planning Stage

Since ASRS is a custom-made system based on the customer requirements (including the warehouse layout, spacing optimization, throughput requirement), site visits and technical discussions need to be carried out before implementation.

Designing Stage

After site survey, ASRS manufacturer will need to design a suitable ASRS technology in order to meet customer inquiry or requirements, including system size, facility environment, machine controls, stored products and required throughput. Apart from that, ASRS experts have to consider the supporting technologies as well such as conveyor system, robotic picking, palletizing system, bar code or QR reading system and etc. Also, they have to consider how the small parts are organized within ASRS, which in most cases, ASRS solution requires bins or totes to efficiently make use of the space. All these system design drawing and technical components have to be discussed and decided with customers at this phase. With a clear and well-thought-out plan would eventually fasten the project timeline.

Manufacturing Stage

When all the design and components are confirmed, here’s start the manufacturing phase. All the selected components are manufactured according to the configured modes and blueprints.

Installation Stage

At this stage, all the ASRS components will be deliver to the customer site for assembly and installation. Once the ASRS racking is being completely installed, the interfaces such as input/output aisle conveyors, software and controls are added. In most cases, the contractor will attach a fire safety sprinkler system in order to comply with local building requirement. The next step will be the electrical control system part. The professional installation team will need to inspect all the wiring connections and make sure they are functioning in proper way before turning on the power supply. Besides, the integration of ASRS and supporting technologies (if any) with warehouse management system (WMS) as well as customer’s host system is carried out.

Commissioning, Testing and Customer Acceptance Stage

Once all the installation is completed, the power supply is turned on for commissioning and testing. Any faced up issues will be identified and solved by the professional team during commissioning. The final step is customer acceptance. Items or goods will be loaded into system and all the controls, software and equipment are properly interfaced in order to get the desired outcome. The acceptance testing helps to verify that the system meets the customer requirement as outlined in the design stage. Once customers satisfy with the testing results, this system will be fully handling over to customer for their operation.

Reference:

1. Inc.com. (2020, February 6). Automated Storage and Retrieval Systems (AS/RS).
2. Jiangsu Kingmore Storage Equipment Manufacturing Co.,Ltd. (n.d.). Automated Storage Retrieval System OEM.
3. SSI Schaefer Systems Int. Ltd. (2021, May 6). Intro to ASRS: Understanding the Automated Storage and Retrieval System | SSI SCHAEFER.
4. Payne, W. (2021, June 30). Automated Storage and Retrieval Systems: Advantages and Considerations for ASRS Warehouses. Stellar Food for Thought.
5. Dube, C. (2021, November 22). The Cost of Automated Storage & Retrieval Systems: ASRS Prices & Contributing Factors. Kardex Systems UK Ltd.
6. Hilke, A. (2022, May 18). ASRS Warehouse Systems: Everything You Need to Know. Conger Industries Inc.
7. Hilke, A. (2022a, May 18). 11 Warehouse Automation Trends in 2021. Conger Industries Inc.