The Hidden Warehouse Space You’re Not Using And How Automation Unlocks It

Companies typically target warehouse space utilization rates between 80% and 90%, leaving 10% to 20% available for operational flexibility. Although these benchmarks vary depending on product mix, inventory variety, and market conditions, many warehouse managers fall short of these goals often to the detriment of overall performance.

While maintaining some open space is essential for safe movement of people and equipment, seasonal fluctuations, and shifting product lines, excess unused space is frequently a symptom of poor management practices. Common culprits include inefficient warehouse layouts, overstocking, and an unbalanced product assortment. In many cases, managers assume that increasing inventory capacity requires expanding the warehouse itself. Thanks to modern automation, that’s no longer the only option.

Automated Storage and Retrieval Systems (AS/RS) are transforming warehouse operations by maximizing vertical storage and reclaiming aisle space that would otherwise go unused. These systems convert previously inaccessible areas into highly efficient storage zones, offering a compelling alternative to physical expansion or new facility investments. With AS/RS, businesses can dramatically increase storage density and SKU capacity while simultaneously improving overall warehouse performance.

Read on to discover how AS/RS technology is reshaping warehouse efficiency—or contact Daifuku today to learn more.

AS/RS: What You Need to Know

As the name suggests, Automated Storage and Retrieval Systems (AS/RS) automatically store and retrieve products within a warehouse. Guided by an advanced Warehouse Control System (WCS), these solutions use a combination of robots, cranes, and shuttles to move pallets, totes, and cases into high density storage racks. While the concept sounds simple, AS/RS solutions rely on sophisticated software and precision-engineered mechanical systems to optimize inventory management, maximize space, and streamline fulfillment within the existing facility footprint.

How AS/RS Typically Operate

1. Receiving: Goods arrive and are placed onto conveyors or Sorter Transfer Vehicles that feed them directly into the AS/RS depending upon the type and configuration of the ASRS.

2. Storage: Using cranes, shuttles, carousels, or vertical lift modules, loads are automatically transported and stored in high density rack systems—significantly increasing usable space, particularly vertically.

3. Retrieval: When an order is placed, the WCS pinpoints the item’s exact location, instructs the AS/RS to retrieve it, and delivers it to a pick-up location, Goods-to-Person picking station, or palletizing cell for further processing.

AS/RS technology is specifically designed to boost productivity by dramatically reducing the time employees spend walking, searching, and manually handling inventory. By automating storage and retrieval, businesses can scale more effectively, build greater operational resilience, and improve profitability—without taking on the costs typically associated with expanding a facility or increasing labor.

Daifuku introduced the world’s first modern AS/RS in the 1960s and has since completed tens of thousands of successful installations. We continue to lead the industry in warehouse innovation, advancing the capabilities of AS/RS to ensure they remain a powerful competitive advantage. For example, in the early 1970s, Daifuku launched the first freezer capable AS/RS, engineered to function in environments as cold as –40°C. We have also developed large scale refrigerated systems, enabling reliable automated storage in virtually any temperature-controlled warehouse environment.

Types of AS/RS Solutions

At Daifuku, we offer a comprehensive range of Automated Storage and Retrieval System (AS/RS) solutions, each designed to meet the specific needs of any facility. Our portfolio includes:

• Unit Load AS/RS – Ideal for handling pallets and heavy loads, these systems can transport items up to 40 meters high and integrate seamlessly into existing facility layouts.

• Mini Load AS/RS – Powered by stacker cranes, these solutions are engineered for the efficient storage and retrieval of smaller items such as totes, cases, and trays.

• Shuttle Rack AS/RS – A vehicle based tote or case handling system designed for high speed sequencing, sorting, and storage of totes, cartons, trays, and other small goods.

Daifuku’s AS/RS solutions are built to support a wide range of industries and operate reliably in all types of environments—from cold storage and refrigerated facilities to general warehouse and distribution centers.

Maximizing Vertical Storage Space (and Other Benefits)

Other key benefits of AS/RS solutions include:

One of the greatest advantages of AS/RS technology is its ability to maximize vertical storage space within a warehouse or distribution center. Much like densely populated cities that build upward instead of outward, AS/RS solutions enable facilities to expand their storage capacity vertically—without increasing their physical footprint. By utilizing the full height of the building and minimizing aisle space, these systems create high density storage environments that significantly increase capacity while reducing the overall floor space required.

Streamlined efficiency and increased throughput:

AS/RS solutions automate the retrieval of items, enabling significantly faster order processing and delivery. This speed is especially critical for high volume e commerce operations, where customers increasingly expect rapid fulfillment. Beyond speed, automated storage and retrieval also dramatically improves accuracy. With near perfect picking precision, AS/RS ensures not only that orders are shipped quickly, but that the correct items are picked, packed, and delivered—ultimately boosting customer satisfaction and reducing costly fulfillment errors.

Cost efficiency:

Time is money, and any opportunity to save time during storage and retrieval directly strengthens a company’s bottom line. Beyond the efficiency gains that come from automation, AS/RS solutions also help reduce labor costs by taking over repetitive manual tasks and allowing employees to focus on higher value work.

These systems also help alleviate the ongoing labor shortages affecting the warehousing and distribution sectors, especially during peak seasons. AS/RS operate continuously, 24/7, and while they require periodic maintenance, they don’t need breaks, shift changes, or additional staffing to keep up with demand. This consistent, reliable performance ensures that facilities can maintain throughput even when labor availability is limited.

Safety:

Safety should be a top priority in every warehouse or distribution center. AS/RS technology enhances safety by removing workers from tasks that involve heavy lifting, repetitive motions, and navigating tight or elevated spaces. By automating storage and retrieval activities, AS/RS significantly reduces the physical strain placed on employees and helps lower the risk of workplace accidents. A safer work environment doesn’t just prevent injuries—studies consistently show that it also contributes to higher employee satisfaction, engagement, and productivity.

Improved inventory control:

AS/RS solutions integrate seamlessly with Warehouse Management Systems (WMS), giving warehouse leaders real time visibility into inventory levels. This level of accuracy enables better overall inventory control and helps prevent both stockouts and overstocking. With more reliable data, facilities can manage inventory costs more effectively and maintain high service levels—even during peak seasons when demand fluctuations make inventory management especially challenging.

Other benefits:

• Sustainability: AS/RS solutions offer meaningful sustainability benefits. By maximizing storage density, they help facilities avoid costly physical expansions and reduce their overall environmental footprint. AS/RS also minimize waste through more accurate inventory control and improve energy efficiency by replacing conventional material handling vehicles—such as gas  or diesel powered forklifts—with electric shuttles. In fact, automating storage and retrieval processes can reduce a facility’s energy consumption by up to 25%.

• Flexibility: AS/RS systems are engineered to perform reliably in a wide variety of environments, including cleanrooms, dry-rooms, cold storage facilities, and standard warehouse settings. They can also operate effectively in conditions that involve dust, moisture, or oil, providing a durable and versatile solution for nearly any industry or application.

Contact Daifuku Today

We introduced the first modern AS/RS several decades ago and have continued to enhance and refine the technology to meet the evolving needs of warehouses across every industry. With tens of thousands of installations worldwide, Daifuku has the experience and expertise to support you throughout your automation journey.

During your next site walk, take a moment to assess your facility’s footprint—especially the vertical space that may be sitting unused. AS/RS unlocks this wasted potential, enabling you to increase capacity without expanding your building.

For more information on AS/RS solutions, how they maximize vertical space, and the many other benefits they deliver, contact Daifuku today.

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