Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Robotics and automation may be all the rage in warehousing circles these days, but the building blocks of the modern warehouse haven’t strayed far from their roots. Storage racks—the traditional, nonautomated kind—are a prime example and an often overlooked aspect of today’s fast-moving, high-tech facilities. These warehouse staples can help maximize storage space, speed throughput, and create a safer work environment in facilities of all shapes and sizes—provided you have the right system in place to meet your needs.
Wondering how to choose the right storage racking for your warehouse—or determine if your current system is the right one? These three steps can help guide the way.
STEP 1: UNDERSTAND RACK FUNDAMENTALS
In warehousing and logistics, industrial storage racks typically hold pallets, cases, and large individual items that will be picked, packaged, and shipped. Some of the most common types of racks include:
Selective racking.This type of rack is used to store pallets in either single- or double-deep modes. Single-deep racks allow full pallets to be stored side by side, so that all pallets are accessible from the warehouse aisle. Double-deep options increase storage density by allowing two pallets to be stored back to back.
These are some of the simplest racks available and are often used in warehouses that store a high number of different stock-keeping units (SKUs), but a low volume of each SKU, according to Diane Domingues, vice president of marketing and customer service for rack manufacturerFrazier Industrial Co. She describes selective rack as “a great solution for any industry, especially those with changing needs.”
Case- or carton-flow racking. This type of racking consists of shelves equipped with rollers or wheels that allow cases or cartons of product to flow forward as they are picked. Domingues explains that it is “used to store SKUs fulfilled in case- or each-based increments. It’s commonly seen in food, beverage, and retail applications, [but] it can be a solution for any industry with slow-moving SKUs stored in case- or each-based increments as part of its product mix.”
Pallet-flow racking.These racks allow for higher-density storage, and they work much like case-flow racking does. Pallets are loaded from the rear of the system and move forward along a pitched track of wheels. When a pallet is removed, the remaining loads roll forward. Such systems are commonly used in first-in/first-out (FIFO) storage applications, including in the food industry, according to Domingues.
Drive-in racks. These are free-standing self-supporting racks that allow drive-in access to forklifts. Pallets are loaded and unloaded on horizontal rails that run along the inside of the racks, perpendicular to the warehouse aisles. Used to create high-density storage, these are best for high-volume, low-SKU applications, such as manufacturing, beverage, and food processing.
Drive-in rack systems are versatile and cost-effective, allowing products to be stored multiple-positions deep, which can “cut down on aisle space compared to other systems,” according to Eric Andres, national sales manager for rack manufacturerHannibal Industries.
Push-back racking. This high-density storage option is similar to drive-in racking and allows customers to store pallets up to five deep. It uses a series of carts on pitched tracks for loading and unloading. The first pallet to be stored in the system is loaded onto the top cart; the next pallet is used to push the first load back, exposing the next cart for loading. The process repeats until the last pallet is deposited into the system. When a pallet is unloaded, gravity moves the subsequent carts forward until all pallets have been picked. “Unlike drive-in, every push-back bay can store a different SKU, and all pallet access is done without entering the rack,” according to Domingues. The system is commonly used in food and cold storage applications.
Cantilever rack.This type of system is used to store long products, such as pipes or lumber. A series of columns with arms are used to hold the products, which are often bundled together. Products are stored across the arms, allowing a forklift to pick up the load from the center. The racks can also be fitted with wire decking to allow storage of other types of products.
These systems are typically used in manufacturing and construction, and also by some specialty retailers such as hardware stores.
STEP 2: DETERMINE YOUR NEEDS
Because warehouses often store different types of products, with differing volume throughputs, the ideal storage solution often includes more than one type of racking. The first step to determining what you need is to review “unit, method, and area,” according to Domingues. Unit refers to the product load or loads being stored; method is the type of equipment being used to handle the products; and area refers to the space available in your warehouse for racking.
“Your answer to each question will dictate what types of racking are most [suitable] for your specific needs,” Domingues explains. “If you’re unsure what type of rack is best, a racking supplier can help you determine the ideal solution.”
Andres agrees, adding that it’s also important to work with a supplier who understands the rules and regulations for constructing racking systems. Such requirements are often guided by local building codes and can include seismic considerations, which vary by region, as well as safety measures that can help guard against system damage and worker injury.
“We think it starts with finding a trusted partner,” Andres says. “You need to look for someone who understands the requirements for the building space and how those needs may change over time. It’s also critically important that they understand local, state, and federal requirements for the building or warehouse space.”
STEP 3: DESIGN FOR THE LONG TERM
Customers used to select racking systems based on the here and now, but not anymore, Domingues and Andres agree.
“Once upon a time, buyers were selecting rack systems based on their immediate needs. When those needs changed, they bought new racking,” Domingues says. “Now, they are buying systems that take both their immediate needs and projected future needs into account. The modern warehouse can’t wait the time it takes to remove an old rack … and replace it with a new one, so buyers are thinking longer term, with resiliency in mind.”
Lately, that means designing systems that maximize storage capacity, largely in response to a tight warehousing market, according to Andres. Accelerating e-commerce activity, inflation, and a variety of other factors have combined toincrease both demand for and the cost of warehouse space, so companies are looking to get the most out of new and existing facilities. Andres advises designing systems that optimize storage in a smaller warehouse footprint and free up space for picking and other value-added activities, for example.
He says seismic considerations are animportant aspect of long-term designas well. Rack installers can reinforce their designs based on local building code requirements, and there are also specific rack products designed with seismic protections in mind. Hannibal Industries’ patented TubeRack system was designed specifically to withstand the dangers of earthquakes, for example.
“It’s really about designing a safer system,” Andres says.
Domingues agrees that safety is taking on a greater role in rack design today, especially when it comes to ergonomics and worker protection. Storage systems that provide easier access to items, for example, can help reduce injuries and increase productivity—two factors that also address the industry’s labor crunch by keeping workers on the job and maintaining the flow of products through the warehouse.
“Racks have grown to keep up with the needs and demands of the modern warehouse. They’ve become a lot more agile, adaptable, and flexible in their design to accommodate the ever-evolving warehouse environment,” Domingues says, emphasizing the need to focus on the safety aspect in particular. “There is a greater premium on worker, equipment, and product safety than ever before. And today’s racking solutions are designed with a greater emphasis on all of those [considerations].”
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."