{"id":10601,"date":"2020-02-11T11:52:35","date_gmt":"2020-02-11T16:52:35","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/winner-autostore-shaping-the-future-of-warehousing-and-retail\/"},"modified":"2020-02-11T11:52:35","modified_gmt":"2020-02-11T16:52:35","slug":"winner-autostore-shaping-the-future-of-warehousing","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/winner-autostore-shaping-the-future-of-warehousing\/","title":{"rendered":"Winner \u2013 AutoStore: Shaping the Future of Warehousing"},"content":{"rendered":"

\u201cWe are storing far more air, than products. Why store things like dominos, when we could store them like a Rubik\u2019s cube?\u201d<\/em><\/strong><\/p>\n

– Ingvar Hognaland, Inventor of AutoStore.<\/p>\n

In order to meet market needs of increased order accuracy, speed and operational efficiency, warehouse digitization has become a must in the manufacturing ecosystem. Founded in 1996, AutoStore is a world-leading robot technology company that has revolutionized e-commerce fulfillment with its cube-based AS\/RS (automated storage and retrieval systems).<\/p>\n

A High-Density Robotic Solution<\/strong><\/p>\n

An AutoStore system is composed of a structural grid, delivery robots, storage bins, and an operator port. Products are stored on stacked bins within the structural grid and are retrieved by robots that operate autonomously on top of the grid. The system\u2019s control system sends pick-up, delivery and re-fill orders to the robots. If a robot receives an order to retrieve a bin that is located under other bins, the robot will place the other bins on top of the grid. It will then deliver the target bin to the operator via the port, while other robots move the extra bins back into the grid. While this might seem inefficient, as robots keep receiving orders, bins with high demand goods will quickly move closer to the top of the grid, while slower SKUs will move to the bottom.<\/p>\n

The stacked or \u201ccubed\u201d structure removes walking lanes and empty shelves, increasing customers\u2019 storage capacity up to four times compared to traditional automated warehouse systems. With no standard installations, AutoStore can be installed relatively quickly in any space, maximizing the full potential of any warehouse.<\/p>\n

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The Perfect Fit for Puma North America<\/strong><\/p>\n

In 2016, Puma was struggling to keep pace with its retail success and growing online presence. After evaluating automation alternatives, AutoStore was chosen as the best solution for Puma\u2019s distribution center in Torrance, California.<\/p>\n

\u201cThis project marked a major push into next level e-commerce fulfillment for PUMA\u201d<\/em> – Helmut Leibbrandt, Sr. Vice President Supply Chain Management and Logistics, PUMA North America.<\/p>\n

The AutoStore system has allowed the Torrance distribution center to increase its productivity by two to three times the prior rate before AutoStore was installed. This translated to an order fulfilment rate of 175 e-commerce units per operator hour.<\/p>\n

\u201cHaving updated our fulfillment system, we are now able to provide our customers with a better service, from a wider range of online products to faster order delivery. AutoStore has not only allowed us to achieve this but has also provided us with the opportunity to easily expand our e-commerce line as needed\u201d<\/em> Helmut Leibbrandt, Sr. Vice President Supply Chain Management and Logistics, PUMA North America.<\/p>\n

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Moving to Micro-Fulfilment at the Store Level<\/strong><\/p>\n

With same-day delivery and rapid in-store pick-up becoming the new normal, retailers are having to rely on regional distribution centers to fill their orders. AutoStore believes that this practice lengthens the time it takes products to reach consumers. In December 2019, the robotics company announced that they had design an automated micro-fulfilment system that would accommodate and manage an increasingly higher number of SKUs.<\/p>\n

AutoStore\u2019s new retail storage system can store up to 15,000 SKUs within 600 square-meters and can be configured to fit different spaces (heights, obstacles) including back-of-house areas for grocery retailers and in-store retail spaces for consumer companies.<\/p>\n

\u201cAutoStore\u2019s technology and extensive use-case experience is now being leveraged for micro-fulfillment in e-commerce, where once again it is on the forefront providing automated solutions for retailers across a variety of sectors\u201d<\/em> Karl Johan Lier, CEO and President of AutoStore.