Semi-automated vs fully automated warehouses: which is right for you?

Warehouse automation can help businesses increase storage capacity, improve the movement of goods and reduce manual handling. But how do you decide whether semi-automated or fully automated storage is right for your operation?

The answer depends on what you store, how quickly it moves, your available space and the expected return on investment. Pallet automation systems range from shuttle storage supported by forklifts to fully automated equipment connected with production, goods-in and dispatch.

What is the difference between semi-automated and fully automated storage?

Semi-automated storage combines automated equipment with manual handling. A 2-way pallet shuttle system, for example, uses a powered shuttle to move pallets forwards and backwards within deep storage lanes. A forklift places pallets at the lane entrance and transfers the shuttle between lanes.

This approach to pallet shuttle automation removes the need for forklifts to enter the storage lanes while retaining forklift handling at the entrance.

Fully automated storage combines shuttles, lifts, associated handling equipment and control software to move loads between storage locations and designated transfer points. It can remove routine forklift handling within the automated storage area.

You do not have to automate every warehouse process. Businesses can introduce automation in one part of an operation and consider further stages as their needs develop.

When is semi-automated pallet storage the right fit?

Semi-automated storage can suit businesses seeking compact, high-density storage while retaining some existing handling methods. It is particularly suitable for operations holding multiple pallets of the same SKU, with lane allocation planned around stock access and rotation requirements.

Investment is typically lower than for a fully automated installation, making it an accessible starting point for pallet warehouse automation where the aim is to address a specific storage or handling constraint.

A semi-automated system may be suitable where:

Multiple pallets of the same product are held in storage.
Stock can be organised into deep lanes with planned retrieval sequences.
Forklifts will continue to handle pallets at lane entrances.
The investment needs to match a targeted operational improvement.

Capacity or handling performance can be expanded through additional lanes and shuttles, subject to the system design. Considering future requirements at the outset helps establish the right arrangement.

When should you consider fully automated storage?

Fully automated storage can suit businesses seeking to automate repetitive pallet movements and support a consistent flow of goods.

One option combines 2-way shuttles with automated movers and lifts. The shuttle handles movement within each storage lane, the mover transfers loads or shuttles between lanes, and the lift connects storage levels.

Another option is a 4-way shuttle system. These shuttles move in two horizontal directions across the racking, with lifts providing transfers between levels. This flexibility offers more routing options and can support a broader SKU mix and demanding throughput requirements.

Fully automated pallet handling automation may be suitable where:

Routine forklift handling needs to be removed from the storage area.
Storage needs to connect with production, goods-in or dispatch.
Repetitive pallet movements are creating an operational bottleneck.
Growing stock volumes require more complex pallet flows.

Performance depends on the combination of shuttles, lifts, conveyors and storage layout. Each element must be designed around the required capacity and throughput.

Pallet conveyors automation systems: connecting storage and handling

In a fully automated configuration, integrated conveyor lines carry pallets into and out of the storage system. Alongside shuttles, movers and lifts, they help connect storage with surrounding warehouse processes.

This supports pallet logistics automation by coordinating movements between storage and transfer points. Warehouse control software manages automated equipment and storage movements, helping the components work together as a system.

The right arrangement depends on your workflows and integration requirements. Existing warehouse management systems should be reviewed to establish what needs to connect and which processes can remain manual.

How do you compare the business case?

The decision between semi-automated and fully automated storage should consider both operational requirements and commercial return.

Start with your inventory profile, stock rotation, handling volumes and peak requirements. These establish the storage arrangement and retrieval performance your business needs.

Next, assess the building. Clear height, column positions, fire routes and surrounding processes influence what can be installed. Warehouse pallet automation can be designed around an existing facility, so a new building is not always necessary.

Then compare the investment with the expected savings. A strong business case may arise where automation reduces offsite storage and transport costs or avoids the need for additional third-party logistics capacity as the business grows.

Extra capacity may also support more efficient purchasing and logistics, provided the savings outweigh additional stockholding and system costs. The assessment should include capital expenditure, ongoing operating costs and maintenance over the system’s expected life.

Expert insight

Eton Clarke | Head of Business Development | Oakway

“When discovering whether a two-way or four-way shuttle system is more suitable for our clients’ operations, the first points we analyse are the inbound and outbound despatch speeds, the number of pallet storage locations required and their stock profile.
Forklift-served 2-way systems typically suit smaller operations with slower stock rotation and throughput speeds, whilst in our experience, 4-way brings value to operations typically storing 3,000+ pallets and having faster throughput speeds. 2-way systems can also be fully automated with movers and lifts to support higher throughput.
Stock profile also contributes to deciding between systems, as 2-way systems typically suit relatively fixed SKU profiles, consistently handled in a regular way, for example received in batches and distributed in batches, whereas 4-way systems can handle a greater variance in SKUs and fewer pallets of each SKU.
Both systems can bring a significant ROI through the increase in storage capacity they provide over standard racking systems; this increase can reach between 60% and 80%, depending on the layout and comparison. 4-way systems bring another level of savings through routine forklift handling being eliminated within the automated storage area, reducing truck contract and operator costs.
From our 19 years’ experience in automation, we would anticipate a payback period of sub-5 years and potentially 3 years, depending on the project’s costs and savings.”

For businesses considering automation or facing storage optimisation challenges, Oakway offers free consultancy and discovery sessions. Eton recommends these sessions as the safest way to take the first steps into automation, helping businesses identify the system best suited to their operations.

Can you introduce pallet automation in stages?

Yes. Businesses can begin by automating a specific bottleneck and assess further stages once the first improvement is established.

This can be relevant to small and medium-sized businesses, where investment needs to match operational requirements and expected savings. The starting point is identifying which part of the operation would benefit most and specifying a system around that need.

Choosing the right automation for your warehouse

Oakway designs and manufactures 2-way and 4-way shuttle systems, bringing equipment, design expertise and StoreLogiq warehouse control software together in-house.

We assess your stock profiles, handling volumes, building constraints and growth plans to develop suitable options. Feasibility studies, capital cost estimates and projected returns help you evaluate the investment, while 2D layouts, 3D models and animations show how the proposed system would fit within your facility.

Whether you need semi-automated pallet storage or a fully automated system, the right solution starts with understanding your operation.

Talk to an Oakway specialist about the right level of automation for your warehouse.

By Eton Clarke | Head of Business Development | Oakway