Case Studies
Automated Storage / Retrieval System (AS/RS) Case Studies
| Company | Industry | Download |
| Cox Target Media | Printing |  |
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| Every year Cox Target Media mails over 500 million of the familiar blue, #10 Valpak envelopes containing more than 19 billion coupons. Faced with rising variable costs and looming capacity constraints, Cox managers could see a rapidly approaching day when the company’s growth would overtake its production capacity. To automate the material flow between the printing and envelope wrapping processes and the buffer storage areas, Cox called on the expertise of Daifuku America Corp.’s Factory and Distribution Automation division in Salt Lake City. |
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| Company | Industry | Download |
| Yili | Food & Beverage | |
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| With the spread of health-conscious attitudes over the past several years, milk consumption began to rapidly increase in China, especially in the metropolitan areas, and it is expected to grow even more in the future. In anticipation of future demand, Yili, a top dairy producer in China, built the largest and most advanced milk processing plant in Asia, along with a distribution center. Daifuku worked with Yili to implement many measures to make the factory and distribution center efficient and productive. Yili’s distribution center introduced the Unit Load AS/RS Rack-Supported Building System (RB) with a 21,024 pallet-storing capacity and a load handling area. In the factory, palletizing robots stack the cartons of milk on pallets, and the pallets are then stored temporarily in the AS/RS, delivered by a loop-type high-speed Sorting Transfer Vehicle (STV). |
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| Utah ABC | Food & Beverage | |
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| Utah is one of 18 states that controls alcoholic beverages sales at either the wholesale or retail level. The Department of Alcoholic Beverage Control (DABC) has been charged with meeting growing consumer demand for alcoholic beverages while protecting the public interest. This translates into keeping the individual customer happy by making sure the retail outlets are well stocked with lots of variety in an efficient and cost-effective manner. An increasing population and growing tourism following the 2002 Winter Olympics in Salt Lake City placed a burden on existing inventory. Utah DABC was quick to respond by expanding their facility to handle the overstock needed to fulfill orders during seasonal peaks. The new expansion increased capacity while virtually eliminating conditions such as overcrowding, product damage, lost inventory and aisle congestion. At the same time, it increased the quality of employee work life with a more ergonomic system. That's a pretty tall order by anyone's standards, but Utah DABC was up to the challenge. Unit Load AS/RS5 aisle of Unit Load AS/RS has 6160 pallet locations pallet storage and order picking area are connected by conveyors |
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| Company | Industry | Download |
| O.C. Tanner | Manufacturing | |
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| In the early 1990s the trend line for merchandise awards continued up for O.C. Tanner - but so did the requirement for storage space, requiring the leasing of off-site warehouses. Eventually, O.C. Tanner built a new, automated Award Distribution Center in Salt Lake City. The craftsmanship content of the merchandise awards process was not changed, but the manual material handling and the chasing back and forth to complete orders was automated. Previously, a worker walked as much as 5,100 feet to take an order through the manufacturing and shipping processes. With the new system, merchandise is conveyed to and from the workstations to minimize walking. Output increased dramatically from 1,800 awards per day to 3,000. Worker efficiency went from 3.5 awards per worker hour to 5.5 awards per hour with 45% fewer people. Cycle time from order entry to shipment was reduced by half to three to four weeks. |
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| Company | Industry | Download |
| Northwest Airlines | Manufacturing | |
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| Airlines know that Airplane on Ground (AOG) situations can be costly, both in lost productivity and unhappy customers. Northwest Airlines found the best way to minimize AOGs is to get the necessary parts to its mechanics as quickly as possible. A new automated parts warehouse was built to provide parts for line and heavy maintenance mechanics in Minneapolis, as well as for Northwest's two other major maintenance facilities and 51 line maintenance stations worldwide. In all, the warehouse averages 32,000 parts orders per month. Northwest has reduced cycle time for picking parts orders by 60%, cutting delivery time to mechanics by 21%. Although faster order picking -- especially for AOG orders -- was Northwest's first priority, the Daifuku America system has provided several other benefits. Productivity has nearly doubled, and stock clerks no longer have to stoop or stretch to reach parts since the mini load delivers them to the workstation at an ergonomic level. The end result of Northwest's investment is faster parts deliveries to the mechanics that maintain the airline's fleet of more than 400 aircraft. |
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| Company | Industry | Download |
| NGK Spark Plug Co. | Manufacturing | |
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| NGK Spark Plugs Co. holds 70% of Japanese market and is the world’s top manufacturer of spark plugs. NGK built its Nagoya Distribution Center in 1999 in an effort to centralize the delivery operation of three factories and four offices/warehouses in Japan. Its Unit Load Automated Storage/Retrieval System (AS/RS) enables pallet storage of 2,912 pallets and eliminated mixed load storage and other resulting errors. Its Mini Load AS/RS stores 2,496 totes and special small-lot items. Its RF Handy Terminal has greatly increased work efficiency and decreased the labor force by 10%. | ||
| Company | Industry | Download |
| Netto | Food & Beverage | |
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| In August 2000, eleven major material handling companies in Europe bid on the automation work for Netto’s new distribution center in Koge, near Copenhagen, Denmark. Daifuku was selected, and formed a close alliance with ABB, an affiliate, and other dominate material handling makers in Denmark to successfully complete the largest project for the European market on time. The Koge distribution center utilizes Daifuku’s Unit Load Automated Storage/Retrieval System (AS/RS), 40 high speed Storage Transfer Vehicles (STVs), and Warehouse Management System (WMS by ABB). Netto regards its new distribution center as the first step toward modernizing supply chains across the company. Netto won the 2004 Denmark Logistics award as a result of its consistent efforts in logistics activities and achieving cost reduction and increased work efficiency at its new distribution center. |
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| Company | Industry | Download |
| Nakagawa Precision Parts Co. | Manufacturing | |
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| Nakagawa Precision Parts Co. exclusively processes car press parts for the Japanese automotive industry. From anti-lock brake systems (ABS) to steeling wheel locks, Nakagawa Precision Parts produces a variety of car parts. Eighty percent of the items that require storage at the factory are metallic molds. To manage the storage of pallet loads and its parts molds, Nakagawa implemented Daifuku’s Automated Storage and Retrieval System (AS/RS). The AS/RS contains two Storage and Retrieval (S/R) machines. According to Nakagawa’s factory manager, the AS/RS system has benefited the company in four key ways: 1) saves space, 2) creates an orderly storage area, 3) enables easy control of molds, and 4) allows automatic staging for the next processes. |
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| Company | Industry | Download |
| Logistics Network Inc. | Food & Beverage | |
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| After acquiring 20 distribution centers, Logistics Network opened for business in 2004. The company now operates 10 distribution centers and 15 transfer centers throughout Japan. In 2005, the company built its Sugito Distribution Center in Sugito, Saitama, the first distribution center of its kind in Japan. The distribution center offers a controlled environment with three temperature zones (refrigerator, freezer, and room). The company handles a variety of food, ingredients and drink products as well as containers and packing materials required at restaurants, catering establishments, grocery stores, etc. Daifuku responded to the Logistic Network’s needs by coordinating nationwide transportation and regional delivery. To accommodate the Sugito Distribution Center, the Logistics Network worked with Daifuku to install a large-capacity freezer AS/RS and add high performance sorters and picking devices. Both of these solutions provide fast and accurate responses to customers’ |
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| Company | Industry | Download |
| Kasai Works | Manufacturing | |
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| Kasai Works, a manufacturer of car parts, knew that its system for storing its 400 molds on sliding shelves took up a lot of space, and manually removing a mold each time it was needed was a slow process. Kasai found that its inventory count was very inaccurate. Daifuku was able to free up a significant amount of space in Kansai’s facility, which allowed the company to install additional pressing machines. Daifuku also introduced inventory control software, which greatly enhanced location management at the plant. By installing the AS/RS system, Kasai saw the time required to locate and transport a mold to the pressing machine reduces to one-tenth the amount of time required with the old system. | ||
| Company | Industry | Download |
| Hargrove | Manufacturing | |
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| Hargrove Manufacturing Corp. manufactures gas fire cement logs for fireplace specialty dealers and distributors in the United States and Canada. To reduce production time, make more efficient use of available floor space, and reduce workers' compensation claims, the company decided to make the leap from a manual, labor-intensive production process to an automated material handling system. A relatively small company with $5 million in annual sales, Hargrove purchased a unit load Automated Storage and Retrieval System (AS/RS). The AS/RS frees up 80% of the floor space used in the company's old process and keeps the production pipeline flowing smoothly, with virtually no downtime. Since the AS/RS system was installed, log production at the Sand Springs, OK plant has increased by 100% with no increase in manpower. Product quality has significantly improved, and the company has achieved a 40% reduction in order-filling cycle time. Hargrove also expects a dramatic decrease in workers' compensation claims, due to reduced lifting and manual handling. |
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| Company | Industry | Download |
| Fidelity Investments | Office & Computer Equipment | |
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| Distributing more than 120 million pieces of mail to individual clients worldwide each year would be a tough assignment for any company. But for Fidelity Investments, one of the world's largest managers of mutual funds, handling the distribution of financial product literature from two centers across the country made the assignment even trickier. Adding to the challenge, both centers were running out of capacity due to Fidelity's rapid growth. The company solved the problem by consolidating its two printing and distribution centers into one facility, located near Cincinnati. Daifuku America's fully integrated system gives Fidelity unprecedented speed in order picking, continuous inventory tracking, significantly more throughput in less space, near perfect order fulfillment, and the virtual elimination of inventory-related paperwork. And the system does it all in far less space. |
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| Company | Industry | Download |
| Delphi/ARD Logistics | Automotive | |
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| Delphi and ARD Logistics formed partnership to provide vehicle wiring harnesses on a Just-In-Time/Just-In-Sequence basis to two Mercedes assembly plants. However, there was a 1,200 mile gap between the Delphi harness production plant in Juarez, Mexico and the ARD Logistics assembly lines in Alabama. Daifuku provided the Delphi/ARD partnership with exactly what it needed: an Automated Storage/Retrieval System (AS/RS) that could hold three days worth of production, support two plants, provide error-proof receiving, capture a small floor space footprint, and deliver perfect orders 100% of the time. An automated storage system like this was the only way that Delphi/ARD could support both the manufacturing and assembly facilities equally. | ||
| Company | Industry | Download |
| Canon Europa | Electronic Components | |
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| Canon Europa, the European sales subsidiary of Canon Inc., operates two parts plants outside of Amsterdam. Canon Europa is responsible for distributing all Canon products to a wide-ranging sales area, which includes the Middle East and African regions. In order to accommodate the increasing number of orders in a timely manner, Canon Europa selected Daifuku to update its Unit Load and Mini Load Automated Storage/Retrieval Systems (AS/RS). The retrofits of both systems took place without impacting the operations of the plants. As part of the retrofit, Canon Europa worked to increase the speed of the cranes and peripheral equipment. Also involved in the retrofit of the old systems was the replacement of five cranes and upgrading the old pallet system to five STVs. After the retrofit, storage space increased by 20% and the processing capacity per hour improved by 75%. |
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| Company | Industry | Download |
| Mercian Wine | Food & Beverage | |
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| Because of an increase in health-conscious attitudes over the past years, wine consumption is three times higher than it was 10 years ago. Tokyo-based Mercian Corporation, a leading domestic wine maker in Japan, cut inventory and lead-time in half while doubling shipping capacity. This was accomplished by centralizing all inventory from warehouse locations, and introducing an AS/RS system and innovative picking robots. Daifuku’s solution for Mercian’s Fujisawa Factory included, among other things, 28 high-speed transport vehicle STVs (Sorting Transfer Vehicles) that offer key transfer operation between storing, picking and retrieving; Unit Load AS/RS with 22 S/R machines and a 9,636 storage capacity; and six high-capacity picking robot that increased picking capacity by nearly 300%. |
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| Company | Industry | Download |
| ARUP Clinical Laboratories | Health Care | |
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| ARUP is among nearly 800 laboratories worldwide with automation systems. However, ARUP’s is unique because it had to adapt its system to its esoteric, testing environment. ARUP’s accomplishments in automation are widely regarded in the industry. Founded in 1984, ARUP’s annual specimen growth rate continues to increase each year, with the lab leading the way in automation among U.S. reference labs. The specimen growth rate and the demand for a functional, efficient automation system are expected to increase even more over the next two decades. Daifuku’s Automated Storage and Retrieval System (AS/RS) Unit l=Load provides the lab with capabilities to robotically store more than 2.3 million tubes in 5,220 trays and to retrieve up to 210 specimen trays per hour. In this unique environment, Daifuku was able to tackle the unique challenges offered by ARUP’s business model and develop a system that would give them a return on investment in only four years. ARUP has achieved highly significant improvements in TAT, quality, and efficiency from the application of automation. |
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| Company | Industry | Download |
| Cox Target Media | Printing | |
Mini Load |
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| Every year Cox Target Media mails over 500 million of the familiar blue, #10 Valpak envelopes containing more than 19 billion coupons. Faced with rising variable costs and looming capacity constraints, Cox managers could see a rapidly approaching day when the company’s growth would overtake its production capacity. To automate the material flow between the printing and envelope wrapping processes and the buffer storage areas, Cox called on the expertise of Daifuku America Corp.’s Factory and Distribution Automation division in Salt Lake City. |
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| Company | Industry | Download |
| Utah State University | Libraries | |
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| Utah State University (USU), located in Logan, Utah, brought Daifuku America Corporation on board to help it with some issues the university library was facing as it moved to a new facility. The university needed an innovative solution to accommodate growth through the year 2027. To meet USU’s needs, Daifuku provided the expertise and equipment to get the new facility up and running. USU implemented a Mini Load Automated Storage/Retrieval System (AS/RS). USU’s Merrill-Cazier Library system is the only library in the world to use an automated retrieval system with materials in call number order. The system allows patrons the opportunity to pull up a chair and browse approximately 200 to 250 volumes at a time once the shelf they need is automatically brought to them. |
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| Company | Industry | Download |
| Ryoshoku Limited | Food & Beverage | |
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| When Ryoshoku, a major food wholesaler with its headquarters in Tokyo, built its new Aikawa Specialized Distribution Center in November 2002, it wanted to implement a more advanced material handling system to satisfy a higher level of service. With the new distribution center, the level of delivery service increased dramatically. With Daifuku’s Mini Load Automated Storage/Retrieval System (AS/RS), Ryoshoku was able to increase the order accuracy and decrease the missed sales opportunities. Ryoshoku uses both the Mini Load and Unit Load AS/RS in addition to the Digital Pack System (DPS). Aikawa’s results are described as “unprecedented AS/RS for case picking.” With automation, Ryoshoku’s Aikawa’s distribution center was able to achieve a reduction in operation costs and meet customers’ high demands. |
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| Company | Industry | Download |
| Okamoto Corp. | Apparel | |
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| Okamoto Corp recognized the need to improve its automation system to meet the needs of its customers and six distribution centers throughout Japan, China and Thailand. Okamoto is a leading manufacturer and distributor of leg wear products like socks and pantyhose. In February 1992, Daifuku installed a case storage Mini Load Automated Storage/Retrieval System (AS/RS) at Okamoto’s Kasugai Logistics Center. Handling volumes and item variety increased, and a high-speed Ski Sorter was added in 1997 to handle small items. The Mini Load AS/RS stores and retrieves 300 cases per hour while the Ski Sorter sorts 5,000 pieces per hour at a speed of 328 feet per minute. Expertise gained by Okamoto Corp. at this center has been used in the development and operation of newer logistics centers in five locations throughout Japan. |
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| Company | Industry | Download |
| NGK Spark Plugs | Manufacturing | |
Mini Load |
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| NGK Spark Plugs Co. holds 70% of Japanese market and is the world’s top manufacturer of spark plugs. NGK built its Nagoya Distribution Center in 1999 in an effort to centralize the delivery operation of three factories and four offices/warehouses in Japan. Its Unit Load Automated Storage/Retrieval System (AS/RS) enables pallet storage of 2,912 pallets and eliminated mixed load storage and other resulting errors. Its Mini Load AS/RS stores 2,496 totes and special small-lot items. Its RF Handy Terminal has greatly increased work efficiency and decreased the labor force by 10%. | ||
| Company | Industry | Download |
| O.C. Tanner | Manufacturing | |
Mini Load |
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| In the early 1990s the trend line for merchandise awards continued up for O.C. Tanner - but so did the requirement for storage space, requiring the leasing of off-site warehouses. Eventually, O.C. Tanner built a new, automated Award Distribution Center in Salt Lake City. The craftsmanship content of the merchandise awards process was not changed, but the manual material handling and the chasing back and forth to complete orders was automated. Previously, a worker walked as much as 5,100 feet to take an order through the manufacturing and shipping processes. With the new system, merchandise is conveyed to and from the workstations to minimize walking. Output increased dramatically from 1,800 awards per day to 3,000. Worker efficiency went from 3.5 awards per worker hour to 5.5 awards per hour with 45% fewer people. Cycle time from order entry to shipment was reduced by half to three to four weeks. |
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| Company | Industry | Download |
| Nagai | Apparel | |
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| In January 2003, one of Japan’s top manufacturers of medical apparel and medical goods, Nagai Leben, built the new Nishi-Nippon Distribution Center to better serve customers in Japan’s western region. Nagai Leben and its distribution centers ensure the accurate picking of more than 4,200 medical goods and 450 types of clothing articles. The picking, sorting, and storing operations that were done manually at other factories prior to the Nishi-Nippon Distribution Center were replaced with a Mini Load Automated Storage/Retrieval System (AS/RS). The Nishi-Nippon Distribution Center also employs other Daifuku products including the Warehouse Management System (WMS) WareNavi, automated replenishing system Space Carrier (SPC) and Picking Cart System (PCS) to greatly enhance physical distribution capabilities. |
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| Company | Industry | Download |
| Dell Inc. | Electronic Components | |
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| Many technology companies are following the outsourcing trend for manufacturing, but Dell Inc. is expanding its own manufacturing facilities worldwide to realize the benefits of its supply chain management system and “Dell Direct Model” sales strategy. Each of Dell’s seven factories around the world operate with less than four days inventory, which enables Dell to produce each computer system at a competitive price with specifications that meet each customer’s individual needs. To accomplish its manufacturing and customer goals, Daifuku helped Dell by installing a Mini Load Automated Storage/Retrieval System (AS/RS) and a 15 chute Parcel Sorter. With these in place, Dell’s material handling system achieves quick shipping after production. Dell has plans to expand its material handling system to increase the variety of products it handles as well as to increase its production capability. |
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| Company | Industry | Download |
| Canon Europa | Electronic Components | |
Mini Load |
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| Canon Europa, the European sales subsidiary of Canon Inc., operates two parts plants outside of Amsterdam. Canon Europa is responsible for distributing all Canon products to a wide-ranging sales area, which includes the Middle East and African regions. In order to accommodate the increasing number of orders in a timely manner, Canon Europa selected Daifuku to update its Unit Load and Mini Load Automated Storage/Retrieval Systems (AS/RS). The retrofits of both systems took place without impacting the operations of the plants. As part of the retrofit, Canon Europa worked to increase the speed of the cranes and peripheral equipment. Also involved in the retrofit of the old systems was the replacement of five cranes and upgrading the old pallet system to five STVs. After the retrofit, storage space increased by 20% and the processing capacity per hour improved by 75%. |
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