The transformation LK systems bring to enterprises: A win-win for efficiency and cost reduction

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Publish Time:

2025-09-25

 

In industry 4.0 With the wave of digital transformation, automated stereoscopic warehouses (shortened to Automated Storage and Retrieval System )Relying on Spatial intensification, operational automation, and intelligent management ”  Its core advantage lies in transforming from a traditional warehousing tool into the enterprise's key engine for cost reduction and efficiency enhancement. The automated warehouse system achieves this by integrating advanced automation equipment—such as stacker cranes, AGV , Shuttle car) and intelligent management system ( WMS WCS ), not only reshaping warehouse operations but also driving the optimization of the company's cost structure and enhancing its core competitiveness, ultimately achieving Efficiency Improvement ”  With Cost reduction ”  A two-way breakthrough.

 

I. Automated Warehouse Systems Drive a Quantum Leap in Warehouse Operation Efficiency

The core value of the automated warehouse system lies first in Efficiency Revolution “—— By replacing manual labor with automated equipment, expanding vertical space to reduce horizontal footprint, and leveraging data collaboration in place of manual scheduling, we achieve a several-fold increase in operational efficiency across the entire warehouse workflow, addressing the challenges of traditional warehousing. Low productivity per person, cramped space, and slow response. ”  The pain point.

1.1 Core operational processes see efficiency increase several times over

Traditional warehousing relies on manual sorting and forklift handling, which presents Low task efficiency, high error rate, and inability to perform continuous operations ”  The issue. The automated warehouse system achieves a quantum leap in efficiency for core processes through intelligent equipment and optimized algorithms:

  • Sorting efficiency : China Federation of Logistics & Purchasing CFLP )《 2024  The "China Automated Warehouse Industry Development Report" reveals that automated storage and retrieval systems can achieve sorting efficiencies of up to 1500–3000 Case Hours, compared to traditional manual sorting ( 200–300 Case Hours) Enhancement 5-10 Twice;
  • Access Speed : The storage and retrieval speed of the stacker crane, the core equipment of the automated warehouse, reaches 150–300 Rice Minutes, compared to manual forklifts ( 30-50 Rice Minutes) Boost 3-6 Twice, and also supports 24  Hour-long non-stop operation;
  • Case Evidence : JD Asia No.1 Wuxi Smart Industrial Park's automated warehouse system achieves a breakthrough in daily order-processing capacity for a single warehouse. 20 Ten thousand orders, compared to traditional warehouses of similar scale (daily processing (10,000 orders) Boost 倍, and the sorting error rate has decreased to 0.3% Drop to 0.01%

1.2 Warehousing space utilization achieves doubled optimization

Traditional warehouses are limited by the height of manual operations (mostly 5-8 Meters), resulting in extremely low space utilization; the automated warehouse system, through vertical space expansion and a dense storage design, maximizes warehouse space. Growing upward

  • High-Performance Breakthrough : The automated warehouse can reach heights of 20-40 Rice is the traditional warehouse's 3-5 Multiple; storage density per unit area reaches 80-120 Storage location / ㎡, compared to traditional flat warehouses ( 20-30 Storage location / ㎡)Enhance 3-4 Multiple (Data source: CFLP );
  • Case Data : After a certain electronics manufacturer introduced a four-way shuttle automated warehouse, its storage area decreased from 1.2 From tens of thousands of square meters reduced to 0.4  10,000㎡, reducing space occupancy 66.7% , while maintaining the original storage capacity, indirectly reducing factory rental costs.

The following table compares the efficiency and space utilization of traditional warehousing systems with automated storage and retrieval systems:

 

Comparison Metrics

Traditional manual warehousing

Automated Vertical Storage System

Improvement幅度

Average warehouse height (meters)

5-8

20-40

300%-400%

Storage spaces per unit area (units) / ㎡)

20-30

80-120

300%-400%

Sorting efficiency (items / Hours)

200–300

1500–3000

500%-1000%

Order Processing Cycle (Hours)

8-12

2-4

66.7%–83.3%

1.3 Order response and fulfillment speed have significantly improved.

The automated storage and retrieval system works through “WMS System + ERP/MES System ”  Seamless integration enables real-time synchronization of order data and intelligent planning of operational routes, significantly shortening the order response cycle.

  • Response Time : After a fast-moving consumer goods company introduced an automated warehouse, orders began to… Place an order Outbound shipment ”  The response time from The duration is shortened to 30  Minutes, fulfillment accuracy from 98.2% Elevate to 99.95%
  • Customer Experience : Tmall Supermarket's East China Automated Warehouse leverages its automated storage system, Next-day delivery ”  Order share from 35% Elevate to 78% , according to the China Chain Store & Franchise Association ( CCFA )Research shows that for every reduction in order fulfillment speed, Hours, customer repurchase rate can be improved 5%-8%

(Sorting is a component of the automated warehouse system.)

II. The automated warehouse system achieves deep optimization of the enterprise's cost structure.

While improving efficiency, the automated warehouse system achieves this through Reduce manpower, control inventory, and save energy consumption , restructuring the enterprise's cost structure, starting from Passive Cost Expenditure ”  Shift to Proactive Cost Management , with significant long-term benefits.

2.1 Labor costs have been significantly reduced, minimizing management inefficiencies.

Traditional warehousing is a labor-intensive process, with labor costs accounting for a significant portion of the total warehousing expenses. 40%-60% ; The automated storage and retrieval system directly reduces labor requirements and associated management costs by replacing manual processes.

  • Staff streamlining : "China's Manufacturing Industry Warehousing Cost White Paper" 2024 》Data shows that in traditional warehousing, each employee manages approximately 500-800 Yes, the automated warehouse system achieves an average of per capita management of storage locations. 5000–8000 One, reduced demand for manpower 80%-85%
  • Case Cost Before the automated warehouse of a certain automotive parts company was put into operation, the warehousing team 56 People, average annual labor costs 320  Ten thousand yuan; after being put into use, the team was reduced to People, with an average annual labor cost of only 60  Ten thousand yuan, annual savings 260  Ten thousand yuan;
  • Reduced implicit costs : Automated equipment eliminates the risks associated with manual handling. Data from a certain logistics company shows that after implementing automated storage systems, the rate of warehousing safety incidents dropped from 0.8% Drop to 0.03% , Annual safety claim costs reduced 96%

2.2 Precise inventory cost management reduces capital tied up in stock.

Traditional warehousing relies on manual inventory checks, which are prone to errors. Inventory buildup, stockouts and supply disruptions, inventory counting errors ”  这些问题导致资金占用高、损耗大; the automated warehouse system, through intelligent inventory management, achieves Reduce inventory, minimize waste

  • Accelerating inventory turnover : After a certain machinery manufacturing enterprise introduced an automated warehouse system, its inventory turnover rate increased from annually 4 This upgrade to Next, inventory capital utilization decreases. 45% (About 2800  Ten thousand yuan), based on the loan interest rate 4.35% Calculation shows annual savings in funding costs exceed 121  Ten thousand yuan;
  • Loss reduction : The error rate for manual inventory checks is typically 0.5% , the automated storage and retrieval system by RFID Scan the code Real-time data monitoring reduces the error rate to 0.02% , a certain food enterprise leveraged this year to reduce inventory loss costs from 150  Reduced by 10,000 yuan to 30  Ten thousand yuan.
  • Benchmark Case Haier COSMOPlat The industrial internet platform's automated warehouse system, through Zero inventory ”  Management model that reduces the days of inventory turnover for components to 35  The day is shortened to 12  Heaven, annual cost savings exceed 1.2  Hundreds of millions of yuan.

2.3 Energy consumption and maintenance costs are controllable, delivering significant long-term benefits.

Some companies are concerned about automated warehouses. High initial investment, expensive energy consumption in the later stages However, through energy-saving equipment and intelligent management, the automated warehouse demonstrates a clear long-term cost advantage:

  • Energy Consumption Optimization : Energy-efficient variable-frequency stacker, LED The application of smart lighting and other devices has reduced energy consumption per storage unit in automated warehouses compared to traditional warehousing. 0.8 kWh / Heaven descends 0.3 kWh / Heaven, an e-commerce automated warehouse saves about 68  Ten thousand yuan;
  • Maintenance costs : Through IoT Technical implementation of preventive maintenance for equipment (real-time monitoring of parameters such as temperature and vibration), resulting in a reduction of failure rates for automated warehouse equipment. 8% Drop to 1.5% , a certain manufacturing enterprise's annual maintenance cost has decreased from 40  Reduced by 10,000 yuan to 18  Ten thousand yuan.

The following table is 1 With a warehouse scale of 10,000㎡, here's a comparison of the average annual costs between traditional warehousing and automated storage systems:

 

Cost Type

Traditional Manual Warehousing (in 10,000 yuan)

Automated Vertical Storage System (in 10,000 yuan)

Cost Savings (in 10,000 yuan)

Savings rate

Labor costs

320

60

260

81.25%

Inventory Loss Costs

150

30

120

80.00%

Energy Consumption Costs

80

35

45

56.25%

Equipment maintenance costs

40

18

22

55.00%

Total Cost

590

143

447

75.76%

 

III. Efficiency and Cost Synergy: Automated Storage and Retrieval Systems Reshape Enterprises' Core Competitiveness

The value of the automated storage and retrieval system does not lie Efficiency Improvement ”  With Cost reduction ”  Not a simple superposition, but rather a synergistic combination of the two. “1 + 1 > 2” Effect —— Efficiency improvements drive revenue growth, while cost reductions directly boost profitability, ultimately propelling a comprehensive upgrade in the company’s supply chain resilience, digital capabilities, and profit margins.

3.1 Supply chain resilience is strengthened, enhancing the ability to cope with market fluctuations.

Under conditions of demand fluctuations (such as major e-commerce promotions or seasonal peaks) or risks of supply chain disruptions, the automated warehouse system Efficient Response Low-cost adjustments ”  Capability Becomes a Company's Moat:

  • Peak Response 2024 Year “618” During the big promotion, Suning.com's Nanjing automated warehouse boosted its daily order-processing capacity by dynamically adjusting its operational procedures. 35  Ten thousand orders, exceeding the peak capacity of traditional warehouses ( 12  (10,000 orders) Boost Twice as much, without incurring additional labor costs;
  • Risk Mitigation : A survey by the China Federation of Logistics & Purchasing shows that enterprises deploying automated storage and retrieval systems (AS/RS) can respond to sudden demand in their supply chains more swiftly than those without such systems. 2-3 Multiple, customer churn rate reduced 15%-20%

(Automated Vertical Storage System)

3.2 Boost enterprise digital transformation and establish a seamless data loop.

The automated warehouse system is the cornerstone of enterprises' digital transformation. Key Node “—— Through WMS/WCS System and ERP (Enterprise Resource Planning), MES (Manufacturing Execution System), SCM (Integrated Supply Chain Management) systems, enabling Procurement Warehousing Production Sales ”  End-to-end data connectivity:

  • Production Collaboration : Midea Group's Wuhan Intelligent Manufacturing Base Automated Warehouse System, along with MES The system enables real-time interaction, facilitating production materials. “JIT (Just-in-Time) ”  Supply and production downtime due to material shortages have increased to daily levels. 1.5  The duration is shortened to 0.2  Hours, increased productivity 86.7%
  • Decision Support : Warehouse data is fed back to ERP The system improves the accuracy of the beauty procurement plan from 75% Elevate to 92% , avoid Over-purchasing ”  Or Supply Shortage and Disruption

3.3 Expanding profit margins to achieve sustainable development

The synergy between efficiency and cost ultimately translates into enhanced profitability and sustainable growth for the enterprise.

  • Financial data : According to the annual report of a publicly listed logistics company, 2023 After the automated warehouse system was put into operation this year, revenue from warehousing services increased year-on-year. 38% (Stemming from enhanced fulfillment capabilities), gross profit margin has decreased from 22% Elevate to 35% (Owing to declining costs);
  • Investment return : Total investment in the automated warehouse project for a certain food manufacturing enterprise 2900 Ten thousand yuan, with annual net profit increasing 650  Ten thousand yuan, return on investment ( ROI )Da 18% , the investment payback period is merely 4.5  Year.

The following table shows the key performance indicators before and after the company implemented the automated storage and retrieval system (AS/RS). KPI ) Changes:

 

KPI Metrics

Before Implementation

After implementation

Magnitude of change

Order Fulfillment Rate

96.5%

99.9%

+3.4 Percentage point

Inventory Turnover Ratio (times) / Year)

4.2

8.5

+4.3 Next time

Gross Profit Margin for Warehousing Business

18.2%

32.5%

+14.3 Percentage point

Customer Satisfaction

82 Score (on a 100-point scale)

95 Score (on a 100-point scale)

+13 Points

Return on Investment ( ROI

-

18%

-

Conclusion of this article:

The transformative value of automated warehouse systems has long surpassed Warehouse Tool Upgrade ”  Within the category —— It is how enterprises achieve Winning both efficiency and cost ”  The core approach is also the strategic pivot that drives supply chain digitalization and strengthens market competitiveness. As for AI Algorithms, IoT The deep integration of IoT technology with automated warehouse systems will enable future warehouses to move toward Flexibility, unmanned operation, and sustainability ”  Upgrade to empower businesses in the industrial sector 4.0  Sustainable development in this era provides a stronger driving force. For those currently facing Cost-reduction pressure ”  With Efficiency Bottleneck ”  For enterprises, deploying automated warehouse systems is no longer Multiple-choice question , but rather adapting to digital transformation Mandatory question

 

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