Automated Storage and Retrieval System

An automated storage and retrieval system (AS/RS) is computer-controlled equipment that stores totes, bins, or pallets in dense racking and retrieves them automatically on demand.

Why it matters for ecommerce brands

An AS/RS stores more inventory and picks faster in the same footprint, which matters most where rent and labor are expensive, such as near large US cities where same-day and next-day promises need local stock. Systems bring totes or pallets to workers, cutting walking and errors. The trade-off is high upfront cost and less flexibility once installed. For example, a building that holds 30,000 bin locations on shelving might fit two to three times as many in a cube-style AS/RS. Compare payback against leasing more space or using an automated 3PL.

Origin

Automated storage and retrieval systems emerged in the 1960s, when computer-controlled stacker cranes serving tall racks were built to cut labor and floor space in pallet warehouses.

Common questions

Is an AS/RS worth it for a growing ecommerce brand?
It can be when a site has high, steady volume, expensive space, or labor shortages. For smaller or fast-changing operations, using a 3PL that already has automation is often lower risk than buying a system.
What are the main types of AS/RS?
Common types include unit-load systems for pallets, mini-load systems for totes and cases, shuttle systems, cube storage with robots on a grid, and vertical lift modules. Each fits different product sizes and throughput needs.
How long does an AS/RS take to pay back?
It varies widely. Payback depends on labor and space savings, how stable your volume is, and the length of your building lease or 3PL contract, so model several volume scenarios before buying.

Laws and regulations