By SmartlogitecX Editorial | Published March 2026
There is a question that surfaces in almost every warehouse planning meeting held across Australia’s eastern seaboard this year.
It is not a new question. It is simply more urgent than it has ever been.
How do we fit more product into the same building, move it faster through the operation, and do it all with a workforce that is smaller and harder to retain than it was three years ago?
The pressure behind that question is real. Industrial real estate vacancy across greater Sydney, Melbourne, and Brisbane has compressed to levels that make expansion prohibitively expensive for most mid-market operators. Prime logistics rents have risen sharply since 2022, and the trajectory shows no sign of reversing.
At the same time, Australia’s warehousing and storage market — valued at approximately USD 7.4 billion in 2025 and projected to reach USD 8.78 billion by 2030 — is being reshaped by forces that favour density, speed, and precision over brute-force square metreage.
Automated storage systems sit at the centre of that reshaping.
They are not a futuristic concept. They are proven, commercially available technologies deployed in thousands of facilities worldwide — and they are increasingly the infrastructure that separates operationally competitive Australian warehouses from those that are quietly falling behind.
This article is a practitioner’s guide to the technology: what it is, what it is not, how each system type works, and how to determine which configuration fits a given operation. It draws on direct experience with installations across manufacturing, metals distribution, cold-chain logistics, and third-party fulfilment in the APAC region.
The Core Principle: Goods-to-Person
Every automated storage system, regardless of its size or mechanism, operates on a single foundational concept — goods-to-person retrieval.
In a conventional warehouse, the operator travels to the inventory. They walk aisles, climb ladders, drive forklifts, and physically search for items.
In an automated storage and retrieval system — commonly abbreviated to ASRS or AS/RS — the inventory travels to the operator. A fixed picking station receives goods delivered by a motorised carrier, extractor, shuttle, or crane. The operator picks, packs, or replenishes without leaving that station.
The implications are substantial and measurable:
50–70% of a manual picker’s shift is typically spent walking — automated systems eliminate that entirely.
Picking accuracy rises from ~99% in manual operations to above 99.9% in automated configurations.
Warehouse throughput per labour hour increases because the bottleneck shifts from human travel speed to machine cycle time — which is consistent, predictable, and unaffected by fatigue or Monday-morning absenteeism.
And perhaps most critically for the current market: automated storage systems recover floor space. A conventional selective-racking layout dedicates 60 to 70 per cent of its footprint to aisles, turning circles, and buffer zones. Automated systems eliminate most or all of that non-productive space.
Vertical lift modules achieve floor-space reductions of up to 90 per cent compared with traditional racking. Mobile racking compresses the same pallet count into 40 per cent less floor area.
In a market where every additional square metre of warehouse space carries a rising cost, that density is not a convenience. It is a financial imperative.
Six Systems. Six Distinct Applications.
The term “automated storage” encompasses a broad family of technologies. A common and costly mistake is to treat them as interchangeable.
Each system type is engineered for a specific combination of load profile, building envelope, and throughput requirement. Selecting the wrong type does not merely reduce efficiency — it can render the investment unworkable.
Here is how the six principal categories compare.
SILO² — The Multi-Column Vertical Lift Module
Best for: Small and medium-sized items | High ceilings | Maximum density
The vertical lift module (VLM) is the most widely deployed automated storage technology for small and medium items globally. Its adoption has accelerated significantly over the past five years.
The operating principle is straightforward. Inventory sits on trays stored in two facing columns inside a vertical enclosure. When an operator requests an item, a motorised extractor shuttle retrieves the designated tray and delivers it to an ergonomic picking window. Sensors measure the actual height of goods on each tray before storage, ensuring trays are slotted with minimal vertical clearance above the tallest item.
This dynamic height optimisation is what gives VLMs their extraordinary density — the system never wastes vertical space on partially filled positions.
SILO² at a glance:
- 2 to 7 storage columns per system
- 120 tray configurations | Up to 400 kg per tray | Up to 1,000 kg/m²
- Side-by-side, multi-level, or opposite picking stations
- Indoor and outdoor installation
For facilities with generous clear heights — many modern buildings in western Sydney, Truganina, and Brisbane’s trade coast offer 12 to 14 metres — a multi-column VLM extracts storage capacity from vertical space that conventional shelving simply cannot reach.
RIGO — The Horizontal Lift Module
Best for: Lightweight, small items | Low-ceiling facilities | Urban micro-fulfilment
Not every facility has the vertical luxury a VLM demands. Mezzanine floors, retail back-of-house areas, and older industrial buildings frequently present ceiling heights below five metres — sometimes as low as 2.5 metres.
RIGO was engineered specifically for this constraint. It applies the same goods-to-person principle as a VLM but orients its storage columns horizontally, operating in ceiling heights starting from just 2.2 metres.
RIGO at a glance:
- 2 to 20 storage columns | 2.2 m to 4.5 m in height
- 1 to 6 picking stations per system
- Trays up to 105 kg | Widths of 800 or 1,000 mm
RIGO suits small-footprint 3PL operations, in-store fulfilment hubs, and laboratory environments where parts access must be controlled, secured, and traceable. For the growing number of businesses establishing micro-fulfilment centres in urban locations, RIGO is frequently the only automated storage platform that physically fits.
MAXI L — Automated Vertical Storage for Long Materials
Best for: Bars, profiles, extrusions, tubes | Heavy industrial environments
Storing long materials is one of the most persistently dangerous and space-inefficient activities in industrial warehousing. The default approach in many fabrication shops — floor stacking or cantilever racking served by overhead cranes — leads to material damage, time-consuming searching, and genuine safety hazards.
MAXI L addresses both problems directly.
MAXI L at a glance:
- Drawers up to 7,100 mm in length
- Load-bearing capacities of 1,000 or 3,000 kg per drawer
- Height-expandable in 500 mm incremental modules
- Configurable access on all four sides, including multiple levels
- Fixed stations or motorised shuttles with automatic load ejectors
The operational impact is immediate. Retrieval times drop from minutes to seconds. Every item is individually accessible without moving other inventory. Material damage is virtually eliminated. A single MAXI L tower replaces multiple rows of cantilever racking and the wide aisles between them.
For steel service centres, aluminium distributors, and engineering workshops, this is not a marginal improvement — it is a fundamental change in how the raw-material supply chain operates.
MAXI T — Tower Storage for Flat and Bulky Materials
Best for: Sheet metal, panels, plates, pallets | Heavy loads up to 3,000 kg
Flat and bulky materials — sheet metal, composite panels, timber boards, glass plates — are heavy, difficult to handle, and almost universally stored in floor stacks that are slow to access, prone to damage, and hazardous to disassemble.
MAXI T eliminates floor stacking entirely.
MAXI T at a glance:
- Drawers up to 3,000 kg load-bearing capacity
- Usable dimensions up to 4,100 mm wide × 2,100 mm deep
- Single or double-tower configurations
- Height-expandable in 500 mm incremental modules
- Dedicated support frame for forklifts, overhead cranes, or lifting devices
Every sheet, panel, or plate is individually retrievable without disturbing adjacent inventory. For sheet-metal processors running laser-cutting or punching operations, this means the next sheet is ready at the machine before the current job finishes — eliminating the production delays that floor-stacked material inevitably causes.
MAXI STC — The Stacker Crane for High-Volume Operations
Best for: 400+ SKUs of long materials | High-throughput industrial environments
When long-material inventories grow beyond the capacity of drawer-based systems — specifically, when active SKUs exceed 400 — the economics shift in favour of a full stacker-crane-based ASRS.
MAXI STC at a glance:
- Storage structures up to 15 metres in height
- Dual-load handling — two load units per cycle
- High-volume storage for 400+ SKUs
- Fully enclosed, protected handling area
MAXI STC installations are typically found in large-scale steel distribution centres and aluminium extrusion plants — operations where production continuity depends on uninterrupted, high-speed material delivery. The capital investment exceeds a standalone tower system, but throughput, SKU capacity, and height utilisation justify the expenditure at scale.
Compatta — Mobile Racking for Pallets and Cold Chain
Best for: Pallet-intensive operations | Cold storage down to −30 °C | Retrofit projects
For warehouses where the dominant storage unit is the standard pallet, mobile racking offers the most direct and cost-effective density improvement available.
Compatta mounts pallet racking or cantilever structures onto powered mobile bases that slide along floor-mounted rails. Only one working aisle opens at a time; the remaining bays compact together.
The result: +80% pallet capacity in the same floor area — or the same pallet count in 40% less space.
What makes Compatta different in the market:
- Retrofit-compatible — mounts onto existing racking without scrapping current infrastructure
- Cold-rated to −30 °C — with remote radio control so forklift operators manage aisles without leaving the cab
- Incrementally expandable — add mobile bases as volumes grow, no single large capital outlay
For food and beverage distributors, pharmaceutical cold-chain operators, and any pallet-intensive warehouse facing occupancy cost pressure, Compatta delivers measurable return on investment precisely because it maximises the utility of the building the business already occupies.
How to Choose the Right System
The practical question remains: how does an operations manager determine which system fits their situation?
The answer rests on four interdependent variables, assessed together.
- Inventory profile. Dimensions, weight, shape, fragility, and temperature sensitivity immediately narrow the field. A VLM handles thousands of small SKUs but cannot accommodate a six-metre extrusion. Mobile racking manages pallets efficiently but is not designed for piece-level picking.
- Building envelope. Ceiling height, floor load capacity, column spacing, and environmental conditions constrain what is physically installable. A 15-metre stacker crane is irrelevant in a facility with 8 metres of clear height. A horizontal lift module needing only 2.2 metres may be the sole viable option on a mezzanine.
- Throughput demand. A system that stores well but cannot cycle fast enough to feed picking creates a bottleneck rather than solving one. Cycle times and picks per hour must be modelled against actual demand — not theoretical maximums.
- Existing infrastructure. The most capital-efficient projects build upon what is already in place. Compatta retrofits onto existing racking. VLMs integrate with established WMS platforms. Tower systems install in phases. Any credible supplier evaluates your current infrastructure as part of the recommendation.
Why the Timing Matters for Australian Warehouses
The business case for automated storage is shaped by three market realities that are unlikely to reverse.
Rising real estate costs. Vacancy rates in prime logistics corridors remain tight. Systems that double or triple effective density within an existing facility offset occupancy costs directly — and in many cases, defer or eliminate the need for costly relocation.
Persistent labour shortages. Warehousing roles consistently appear on skills-shortage lists. Automated storage transforms the physical nature of the work — operators stand at ergonomic stations rather than walking kilometres per shift. Heavy lifting is eliminated. The work becomes safer, more predictable, and more sustainable over the course of a career.
Narrowing customer tolerance. Whether servicing e-commerce, just-in-time manufacturing, or retail replenishment, the tolerance for picking errors and delayed shipments has tightened. Automated storage enforces consistency — every pick follows the same process, every transaction is recorded, every item is traceable.
Where to Start
The most productive first step is not a technology selection. It is an honest assessment of the current operation.
Measure clear ceiling heights. Map storage utilisation — active storage versus aisle and buffer space. Quantify pick rates, error rates, and labour hours per order line. Understand the inventory profile: SKU count, dimensions, weight distribution, and growth trajectory.
With that data in hand, the conversation becomes specific and productive.
We conduct site assessments at no cost because the data shapes the recommendation — and a well-matched recommendation is the foundation of a project that delivers return on investment rather than regret.
The technology exists, is proven, and is available for deployment in your facility. The question is not whether automated storage works. It is which configuration works for you.
Frequently Asked Questions
What is an automated storage and retrieval system (ASRS)?
An ASRS is a warehouse technology that uses computer-controlled mechanisms — vertical lift modules, stacker cranes, shuttle carriers, or mobile racking bases — to place goods into defined storage positions and retrieve them on demand without manual forklift or operator travel. The core principle is goods-to-person delivery: the system brings the inventory to the operator at a fixed picking station, rather than requiring the operator to walk to the inventory. This approach improves picking speed, accuracy, and storage density while reducing labour requirements, workplace injury risk, and the physical footprint needed to store a given volume of goods.
How much warehouse floor space can automated storage systems save?
Space savings vary by system type and the inventory being stored. Vertical lift modules like SILO² can reduce floor-space consumption by up to 90 per cent compared with traditional selective racking, because they eliminate aisles entirely and exploit the full available ceiling height. Mobile racking systems such as Compatta increase pallet capacity by approximately 80 per cent within the same footprint by eliminating fixed aisles. Tower storage systems for flat and long materials replace rows of cantilever racking and their associated access corridors with a single compact structure. In all cases, the savings come from reclaiming the aisle, buffer, and staging space that conventional layouts waste — space that typically accounts for 60 to 70 per cent of a standard warehouse floor.
What types of goods can be stored in automated storage systems?
The range is extremely broad, which is why multiple system types exist. Vertical lift modules handle small to medium items — spare parts, electronic components, fasteners, tools, pharmaceutical products, and dense items like bearings and machined fittings weighing up to 400 kilograms per tray. Horizontal lift modules manage lightweight, small items in low-ceiling environments. Tower systems store flat materials such as sheet metal, composite panels, and glass plates in drawers bearing up to 3,000 kilograms. Long-material systems accommodate steel bars, aluminium profiles, tubes, and extrusions up to 7,100 millimetres in length. Mobile racking handles standard pallets, bins, and long loads, including temperature-sensitive goods in cold stores down to minus 30 degrees Celsius.
What ceiling height is required to install an automated storage system?
This depends entirely on the system type, which is one reason the technology landscape includes both vertical and horizontal solutions. The RIGO horizontal lift module operates in facilities with ceilings as low as 2.2 metres — suitable for mezzanines, retail back-of-house, and older industrial buildings. Vertical lift modules like SILO² adapt to whatever ceiling height is available; taller ceilings simply accommodate more storage trays, making them particularly effective in modern logistics buildings with 10 to 14 metres of clear height. Stacker crane systems such as MAXI STC utilise structures up to 15 metres. During a site assessment, we measure usable clear height and recommend the configuration that extracts maximum density from the specific building envelope.
Can automated storage systems operate in cold-storage and freezer environments?
Yes. The Compatta mobile racking system is specifically rated for operation in cold rooms and freezer environments down to minus 30 degrees Celsius. Its powered mobile bases, motors, and control electronics are engineered to perform reliably under continuous extreme-cold conditions. Remote radio control allows forklift operators to open and close aisles without leaving the heated cab, reducing operator exposure to freezing temperatures. This makes Compatta a proven solution for food and beverage warehouses, pharmaceutical cold chains, and frozen-goods distribution centres across Australia that need to maximise pallet density while maintaining strict temperature compliance.
Do automated storage systems integrate with existing warehouse management software?
Yes. All systems in our portfolio communicate via standard industrial protocols and are designed to interface with leading warehouse management systems (WMS) and enterprise resource planning (ERP) platforms. Integration provides real-time inventory visibility, automated replenishment triggers, pick-list synchronisation, and full lot or serial-number traceability. Our engineering team works with your IT department or systems integrator to configure the data exchange, ensuring the ASRS operates as a connected component within your broader warehouse technology stack rather than as a standalone island.
What return on investment can warehouses expect from automated storage?
Payback periods typically fall within two to five years, depending on labour costs, storage-density gains, error-rate reductions, and the scale of the installation. The largest savings come from four areas: reduced labour (fewer pickers and forklift operators required for the same throughput), recovered floor space (deferring or avoiding facility expansion or relocation), lower pick-error and material-damage costs, and increased throughput capacity that supports revenue growth without proportional headcount increases. We provide a detailed, facility-specific ROI analysis as part of every warehouse assessment, modelled against your actual operating data rather than industry averages.
How long does installation take, and will it disrupt current operations?
Timelines range from a few weeks for a standalone vertical lift module to several months for a large-scale stacker crane or multi-aisle mobile racking project. Modular systems — including SILO², RIGO, MAXI L, and MAXI T — are delivered as pre-assembled modules that are erected and commissioned on-site relatively quickly. Compatta mobile racking can be installed progressively, aisle by aisle, allowing the warehouse to continue operating in unaffected zones during the rollout. We develop a phased project schedule during the proposal stage that accounts for site preparation, electrical and data infrastructure, WMS integration, and operator training — all designed to minimise operational disruption.
Is automated storage only suitable for large warehouses?
No. That is one of the most persistent misconceptions in the market. A single vertical lift module occupying just a few square metres of floor space can store the equivalent of an entire room of shelving — making it ideal for small and medium operations, maintenance storerooms, retail back-of-house areas, and workshop environments. The RIGO horizontal lift module fits facilities with ceiling heights as low as 2.2 metres. Compatta mobile racking can be applied to a section of an existing warehouse without converting the entire facility. The scalability and modularity of modern automated storage systems mean the technology is as relevant to a 500-square-metre parts store as it is to a 50,000-square-metre distribution centre.
Do you provide ongoing maintenance and support across Australia?
Yes. We provide preventive maintenance programs, remote diagnostics, and on-site technical support for all automated storage systems we supply. Regular maintenance is essential to sustain system uptime, extend component life, and preserve manufacturer warranty coverage. Our APAC-based service team responds to critical issues promptly, and remote diagnostic capability allows many issues to be identified and resolved without an on-site visit. We also provide operator training at commissioning and refresher training as needed, ensuring your team operates the system safely and at full productivity.
