Warehouse Automation Depends on the Right Racking

Edward Hutchison, Managing Director of BITO Storage Systems UK, explains why successful automated warehouse solutions require careful consideration when choosing the racking.

The UK’s world leading e-commerce retail sector swells demand and raises expectations for rapid delivery but the sector is also in the midst of dealing with rising labour costs combined with a shallower pool of available skills for its warehouses. This is driving growing interest in automation among many more managers responsible for fitting out these facilities, particularly as the technology continues to become more flexible, bringing it further within reach of many more companies. In fact the UK will, by 2025, be Europe’s largest warehouse automation market at over £3bn, according to market research company Interact Analysis. That will be £0.71bn larger than in Germany, which has traditionally been far more automation friendly when it comes to warehouses. Another market researcher, IMARC Group, which put the UK warehouse automation market at USD 2 Billion in 2023, expects it to reach £4.6 Billion by 2032. That’s a growth rate of over 10% during 2024-2032.

Automation’s modularity, sophisticated control systems, and performance developments can create a more practical and flexible solution for a greater variety of applications – from fulfilling omnichannel retail to supplying line-side manufacturing. Stacker crane based automated storage and retrieval systems, for example, will provide high density storage on a given footprint within a warehouse to offer an efficient and safe goods to picker solution.

However, smooth operation of this software-driven warehouse technology will rely on the racking. Given it plays such a vital role in maintaining the flow for highly accurate and rapid order picking within a warehouse, racking should be carefully considered because the right design will help an automated system to realise its performance benefits. Reliable racking will also minimise maintenance and the subsequent costly downtime for an automated system, helping to improve its productivity and hasten the return on the investment.

Assessing the quality of racking starts with the basic components: the uprights and beams. Fine tolerances in the racking’s manufacture and installation are needed for the stacker crane to run smoothly, with trouble-free operation and maximum safety. Bolted frame components will allow a fast exchange of damaged components. Uprights need to be available in a range of widths and different material thicknesses to allow an ideal upright geometry for frame heights of over 20 metres and bay loads as heavy as 40 tonnes.

Suppliers using state-of-the-art machinery to manufacture racking components will produce all the elements at the exact required size and of a consistent quality and tolerance. This ensures long-term integrity of the racking system.

Ed Hutchison

The quality of the materials used in the racking will determine how an installation will stand up to the rigours of everyday operations. For example, galvanising and epoxy coating ensures high corrosion resistance and guarantees a long service life for all components. Safety is high on any list of considerations and starts with the integrity of the installed system, which is enhanced by stable floor anchoring, while pallet support bars add additional strength.

A supplier that can provide the bins and containers in addition to racking and shelving will offer the advantage of compatibility between these two elements. This will avoid numerous issues that can disrupt smooth material flow, such as bins not rolling properly down carton live flow lanes. It also makes it easier to achieve the maximum density of stock because multiple containers designed to fit precisely with a bay racking or shelving without leaving unnecessary gaps can generate considerable space savings throughout a warehouse storage area.

They will be able to supply specially designed bins and trays that have been adapted to automated racking and stacker crane conditions and meet the requirements of the system. For example, BITO XL series stacker containers, KLT small parts containers, and trays made from steel sheet or polypropylene, all meet the requirements of automated bin storage and are suited for any application.

Racking projects for automation will draw on a supplier’s experience and its ability to work with systems integrators and automation companies in addition to suppliers of other equipment and solutions, such as mezzanine floor and forklift truck companies. Reference site visits are a great way to assess the standard of a product in a working scenario. It is also useful to have a close look at the equipment in a showroom environment wherever possible.

Ultimately, when it comes to storage and order picking solutions, companies are seeking high quality – not just of the physical products, but also of the installation team and service support. As a customer about to make a large investment in automation, you really will need to take a careful look at racking.

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Olive Young Deploys Robots to Capitalize on K-Beauty Boom

South Korea-based heath and beauty retail chain Olive Young has recently deployed Libiao Robotics’ T-Sort handling technology in its new 33,000 sq m national distribution centre in Gyeonggi Province, bringing the retailer unprecedented levels of efficiency, speed and order accuracy.

Established in 1999 and now considered a market leader in the booming K-beauty* sector, Olive Young operates more than 1,300 stores and is growing its online marketplace for its products at a considerable rate. It has seen a rapid growth in business post-Covid thanks to its wide product range allied with an ethical approach to business. In order to fulfil greater volumes of online orders at a faster throughput, it chose to equip its new-build DC with a cutting-edge robotic system devised and installed by automated warehouse storage pioneer Libiao Robotics.

Efficient Inventory Management

The integrated logistics centre, which became operational in September 2024, has been built to service Olive Young’s numerous stores in the Seoul metropolitan area as well as handle its national and export online sales. Its single-layer structure enables efficient inventory operation and management, and integrates logistics functions across multiple Olive Young brands – including its private labels such as Bio Heal boH and WAKEMAKE – that were previously fulfilled at three separate sites. The location of the warehouse and the sophistication of the technology within it mean that Olive Young can offer customers in the Seoul metropolitan area a same-day delivery option.

At the heart of the facility lies Libiao’s flexible T-Sort sorting solution, a fast and efficient order-to-person solution in which 320 of Libiao’s “mini yellow” autonomous robots collect ordered items from one of four induction stations and feeds them to one of 32 work stations where they are collated prior to dispatch. In this case, Libiao custom produced the autonomous robots in bright green, at Olive Young’s behest, in order to match its brand colour requirements.

Olive Young specified that its new system should be able to fulfil 2,190 customer orders per hour, and handle the most fragile of beauty products, which the T-Sort system comfortably achieves.
As well as offering high levels of accuracy and a rate of throughput never before experienced by the retailer, the entire automated system occupies a footprint of just 460 sq m, allowing spare warehouse space to be converted to other added-value operations. Furthermore, the system operates smoothly and quietly (≥72dB), providing a comfortable working environment for Olive Young’s warehouse team, an important consideration for a company that places ethics high on its list of priorities, and which runs a number of high-profile CSR campaigns.

The T-Sort automated warehouse storage system, which was implemented in conjunction with Libiao’s local partner CJ Logistics, can deliver a reliable service even during large-scale sales such as Black Friday and Cyber Monday, when overseas orders soar up to five times compared to normal times, thanks to its scaleable design that allows Libiao’s “mini yellows” – or “mini greens”! – to be added or taken away amid fluctuating volumes without the need for any infrastructural adjustments.

Significant Landmark

“This Libiao T-Sort installation at Olive Young represents a significant landmark in Libiao’s history, as it is the largest installation so far in South Korea,” said Ronan Shen, Libiao Robotics’ Global Head of Business. “When Olive Young saw a chance to grow its business along with the increased global interest in K-beauty products, it was careful to choose a robotics partner that matches its vision, has rock-solid tried-and-tested systems, and enables future expansion without the associated infrastructural costs that come with rival systems. Our collaboration with Olive Young is one we are particularly proud of, and we are ready to stand next to them all the way and support the brand as Olive Young grows its export business.”

The new facility – the second-largest DC in the Seoul metropolitan area – is central to Olive Young’s ambitions to grow its export markets. The market for Korean H&B products is growing at an exponential rate, and Olive Young is now ideally placed to capitalise on this K-beauty boom. The building has been designed to house customised facilities for individual shipping companies such as DHL and EMS, providing optimised delivery services for each country.

A spokesperson for Olive Young added: “The Anseong Logistics Centre will serve as the first gateway for small and medium-sized K-beauty brands in Olive Young to advance overseas. We plan to expand our global logistics network by continuously strengthening competitiveness.”

* K-beauty is an umbrella term for skincare products derived from South Korea that focus on health, hydration, and an emphasis on brightening effects.

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Guide Published to Decoding Global Supply Chain

International law firm Reed Smith has published ‘From A2B: Decoding the Global Supply Chain’, an in-depth exploration of the rapidly evolving supply chain landscape. The report examines the worldwide forces shaping global logistics today and into the future, offering businesses strategic insights to navigate the challenges and opportunities arising in this increasingly complex field.

Spearheaded by Reed Smith’s global Transportation Industry Group and drawing from the perspectives of the firm’s global network of 30+ offices, the report addresses critical themes that include climate change, regulatory shifts and technological advancements. The guide serves as a roadmap for businesses to stay agile and resilient in the face of global disruptions.

Regulatory and compliance challenges

Businesses are navigating a complex web of compliance issues, including the U.S. semiconductor ban, sanctions, antitrust risks, and the EU’s AI Act. National security screenings and money laundering threats further heighten the need for robust risk mitigation strategies.

Technological innovations and future trends

From 3D printing and autonomous ships to augmented reality and digital product passports, cutting-edge technologies are reshaping supply chains. Reed Smith emphasizes balancing innovation with legal and operational considerations.

Environment and sustainability

Sustainability is now central to supply chains, with a focus on green methanol, LNG transitions and deep-sea mining. EU laws and global plastics treaty negotiations are driving ESG integration while green innovation offers new investment avenues.

Financial and investment considerations

Financing innovations, insurance solutions and evolving investment opportunities in shipping and freight are key to managing supply-chain disruptions effectively.

Operational and logistical challenges

From negotiating logistics agreements to addressing HR impacts and managing international employee mobility, businesses must tackle operational hurdles to ensure efficiency.

Jurisdiction-specific supply-chain challenges

Regional nuances, from U.S. state laws and China’s export controls to Middle Eastern drone opportunities and UK trade policies, reflect the global nature of supply chain challenges.

Transportation Industry Group Global Chair Richard Hakes reflects on the unique challenges of this fast-changing field: “The pace of change in the supply chain is relentless. Helping clients through the legal side of it requires a strong understanding of law, but you also need to keep up with all the latest trends, industry developments, technologies and regulations. Logistics is going through a massive transformation right now. New technologies are coming in, and customer expectations are changing just as fast. ‘From A2B’ digs into these shifts and gives our clients tools to stay flexible and thrive amid constant change,” Hakes says.

Remarking on how the global supply chain impacts everyday life, Hakes says, “The supply chain isn’t some far-off, industrial concept anymore – it’s something that’s touching us all, right where we live. Every day, the things we buy and use make their way to us through a massive network that spans the globe. It’s something that matters to everyone, whether you’re a consumer, a worker or a business – it’s just part of how we live now.”

As a global law firm, Reed Smith provides strategic advice to transportation and logistics clients in complex regulatory matters, high-stakes litigation and major transactions. By addressing critical topics such as sustainability, digital transformation and compliance, From A2B: Decoding the Global Supply Chain reflects Reed Smith’s commitment to helping clients thrive in an increasingly interconnected and dynamic world.

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