Automated Warehouse Racking System

What is an automated racking system?

An automated racking system is a type of automated storage and retrieval system designed to streamline the way goods are stored, moved, and retrieved within a warehouse. Unlike traditional racking systems that rely heavily on forklifts and manual labor, automated racking integrates robotics, advanced machinery, and smart software to significantly reduce human involvement while improving speed, safety, and storage density.

A typical automated racking system consists of four core components:

• Racks: These are structured storage units that hold goods securely while maximizing vertical and horizontal warehouse space. They are specially designed to accommodate automated equipment and optimize load capacity.
• Shuttles: These are robotic carts that travel along the racks to place or retrieve goods. Shuttle robots operate on tracks installed inside the racking system, allowing for deep-lane storage and minimal forklift traffic.
• Conveyors and Lifts: These machines help move goods throughout the warehouse, including between floors or zones. They connect various parts of the warehouse to ensure smooth and continuous flow of inventory.
• Software System (WMS/Control Software): This digital brain coordinates the entire operation. It manages shuttle movement, tracks inventory levels in real-time, optimizes storage locations, and integrates with other warehouse systems such as ERP or order processing platforms.

Automated racking systems are highly adaptable and can handle a wide variety of product types, from small bins and cartons to large palletized goods. They are ideal for industries with high throughput, limited space, or a need for precision and reliability in inventory handling.

Benefits of Automated Racking Systems

Maximize Storage Capacity

Automated racking systems are specifically engineered to make the most of every cubic meter in a warehouse. By eliminating the need for wide forklift aisles and leveraging vertical space, these systems significantly increase storage density. Businesses can store more products within the same footprint, reducing the need for costly warehouse expansions or off-site storage facilities.

Boost Operational Efficiency

Speed and accuracy are critical in high-volume warehouse operations. Automated systems streamline the movement of goods with high-speed shuttles and conveyors, reducing handling time and human delays. Robots operate with consistent precision, retrieving and placing items faster than manual labor, which shortens order processing times and enhances overall throughput.

Achieve Long-Term Cost Savings

While the upfront investment in automation may seem substantial, the long-term return on investment is highly favorable. Automation reduces dependency on manual labor, lowering staffing costs and minimizing risks related to workplace injuries. Additionally, modern robotic systems consume less energy and are designed for long operational life, which contributes to significant savings on utilities and maintenance over time.

Ensure Workplace Safety

Reducing human involvement in physically demanding tasks directly improves worker safety. Automated shuttles handle heavy loads and navigate narrow spaces without the risk of fatigue or error. This not only minimizes injuries but also supports compliance with safety regulations and helps businesses lower insurance costs.

Enable Flexible Scalability

One of the standout advantages of automated racking systems is their ability to scale with your business. Whether you're expanding storage capacity or adapting to seasonal demand, adding more shuttles or extending rack lanes can be done with minimal disruption. This modular approach allows for flexible growth without needing a full warehouse redesign.

Gain Real-Time Inventory Visibility

Manual inventory tracking is prone to human error and inefficiencies. Automated systems come equipped with sensors and smart software that track every pallet in real time. This data is automatically updated and accessible to warehouse managers, allowing for better forecasting, fewer stock discrepancies, and improved supply chain control. Accurate inventory insights help avoid overstocking, stockouts, and lost items.

How Automated Racking Systems Work

Automated racking systems combine smart software, robotics, and sensor technologies to efficiently manage the flow of goods inside a warehouse from inbound receiving to outbound fulfillment.

The process begins when goods arrive at the warehouse. Each item or pallet is scanned and registered into the Warehouse Management System (WMS). The system automatically evaluates key product attributes such as size, weight, expiration date, and turnover rate to determine the most efficient storage location.

Next, autonomous shuttle robots — typically 4-way shuttles — transport the products to their designated positions within the racking structure. These robots move smoothly along rails inside the racks, placing goods deep into storage lanes without the need for forklifts or human intervention.

When an item is required for picking or shipping, the WMS locates it instantly and sends a retrieval command to the appropriate shuttle. The shuttle collects the product and coordinates with lifts or conveyors to bring it to a pick-up or dispatch station.

Throughout this process, built-in sensors and control systems ensure precision, speed, and safety. By automating storage and retrieval, these systems minimize delays, reduce handling errors, and increase overall warehouse efficiency.

Industries That Benefit from Automated Racking Systems

Automated racking systems are transforming operations across a wide range of industries. From fast-paced e-commerce to temperature-sensitive cold storage, businesses are adopting automation to increase efficiency, reduce errors, and gain better control over inventory flow. Here are some of the key sectors leveraging these systems:

E-Commerce and Fulfillment Centers

E-commerce warehouses operate under intense pressure to process thousands of orders daily, often involving a wide variety of SKUs and ever-changing demand. Automated racking systems offer the flexibility and speed required to manage high order volumes while maintaining accuracy. These systems also adapt quickly to seasonal fluctuations by allowing for scalable storage and retrieval, making them an ideal solution for fast-growing online retailers.

Key benefits:

• Faster picking and packing
• Optimized SKU organization
• Scalability for peak seasons

Retail Distribution Centers

Retail operations often handle a broad mix of inventory, including bulky items and perishable goods. Automated racking enables better inventory rotation, which is critical for managing product shelf life and reducing waste. With the ability to retrieve items quickly and accurately, retailers can streamline restocking, avoid out-of-stock situations, and respond faster to store-level demand.

Key benefits:

• Accurate stock control
• Faster replenishment cycles
• Reduced spoilage and shrinkage

Cold Storage and Temperature-Controlled Warehousing

Facilities storing frozen or refrigerated goods, such as food, pharmaceuticals, and medical supplies, face strict requirements for safety and efficiency. Automated racking systems reduce the need for manual labor in cold environments, protecting worker health while preserving product integrity. Shuttles are designed to handle temperature-sensitive items gently, minimizing damage and ensuring compliance with industry regulations.

Key benefits:

• Increased storage density in cold zones
• Reduced human exposure to low temperatures
• Regulatory compliance through precise inventory control

Manufacturing and Industrial Facilities

In manufacturing, time is critical. Automated racking supports just-in-time (JIT) production by storing raw materials and delivering them exactly when needed. This reduces production delays, minimizes material waste, and supports continuous workflows. Whether handling small components or large parts, automated systems help manufacturers keep their lines running smoothly.

Key benefits:

• Timely delivery of materials to production lines
• Reduced downtime
• Improved supply chain coordination

Logistics and 3PL Providers

Third-party logistics (3PL) providers and large distribution centers must serve multiple clients across various industries. Automated racking gives them the flexibility to manage diverse inventories and meet high service-level expectations. Integration with WMS and ERP systems ensures seamless order processing and real-time visibility for end clients.

Key benefits:

• Multi-client inventory management
• Faster turnover and shorter lead times
• Integration with warehouse software

The Trend of Installing Automated Racking Systems for Warehouses

In the context of continuous technological advancements and automation, installing automated racking systems helps businesses optimize storage and warehouse operations. The application of IoT and AI technologies for effective warehouse management has become an inevitable trend.

According to a report by MarketsandMarkets, the demand for automated racking systems is forecasted to reach $10.7 billion by 2027, with an estimated compound annual growth rate (CAGR) of 8.1% from 2022 to 2027. E-commerce has been booming since 2021 and is expected to grow by 14% annually by 2025. This drives the need for warehouses to process thousands of orders daily to keep up with the continuous growth.

Statistics and data from global automated racking manufacturers show that automated systems can increase storage density by up to 80% compared to traditional systems. This is an ideal solution for maximizing floor area and warehouse height to store large quantities of goods.

According to Eurorack Mechanical JSC, automation reduces order processing time by 30%, saves up to 70% in labor costs, and increases productivity by up to 30%.

Applications Across Industries

• Food, Chemicals, and Pharmaceuticals: Automated warehouses help maintain optimal temperature and storage conditions while ensuring precise inventory management.
• Logistics: Large distribution centers use automated racking systems to ensure deliveries within 1-2 days.
• E-commerce: Major global platforms like Alibaba and Amazon rely on these systems to handle their massive storage needs.

Eurorack – The Professional Automated Racking Manufacturer

Eurorack's automated storage solutions effectively address economic challenges for businesses, especially in warehouse management. With over 14 years of experience, Eurorack confidently meets customer demands across markets in the US, Australia, Canada, Europe, and more.

Here are the reasons why customers always prioritize Eurorack's automated systems:

• High-quality materials: Stainless steel sourced to meet ASTM standards.
• Superior certifications: Products meet quality standards such as ISO 9001:2015.
• Global production standards: Manufacturing adheres to American and Australian standards, with European and Japanese imported production lines.
• Competitive pricing: Optimized production costs with modern technology.
• Professional customer service: Consultation, design tailored to client needs, and regular maintenance services.
• Experienced engineering team: Committed to delivering optimal solutions for every client.
• Diverse product portfolio: In addition to providing automation systems, Eurorack flexibly integrates various pallet racking solutions to ensure optimal use of storage space

Common Questions About Automated Racking Systems

1. Which racking systems are suitable for automated warehouses?

Depending on storage needs and warehouse space, systems such as Pallet Shuttle, Mobile Racking, or ASRS are typically prioritized.

2. What is the cost of installing an automated racking system?

Costs vary depending on warehouse scale, racking types, and auxiliary equipment. Contact Eurorack for a detailed quote.

3. How do automated systems operate?

Automated systems are controlled by WMS (Warehouse Management System) software, integrated with robots and precision equipment for smooth operations.

4. Which robots are used in automated storage systems?

Commonly used robots include AGVs (Automated Guided Vehicles) or AMRs (Autonomous Mobile Robots) for transporting goods within warehouses. Two-way and four-way shuttle robots are also widely employed for seamless goods movement.