What is storage?

Goods are stored in a warehouse if they are required at a later point in time. Storage is thus defined as "bridging time".

High-bay warehosue with storage and retrieval machine Exyz

What is storage in logistics?

Storage refers to parking goods for a limited period of time. It is one of the three main processes in logistics, along with conveying and handling. During warehousing, goods are kept in stock for a longer period, thus enabling improved utilization of operating resources.

Based on the number of storage units (SKUs), product types, unit sizes, temperature requirements, throughput needs, and economical feasibility, this criterion may dictate what types of storage work best for your storage facility. There are essentially different solutions for storage that work best within manual, semi-, or fully automated systems.

Storage Solutions

SSI SCHAEFER offers you exactly the right solution, regardless of whether you store Euro containers, large load carriers or pallets. We are your one-stop source for...

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Case Study KNV

Warehouse Automation

By automating the entire warehouse system or part of the warehouse, customers can lay the foundation for more efficient in-house material flows and enhance their productivity.

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Storage and Retrieval Machine Exyz

Warehouse Modernization

Warehouse modernization or “retrofitting” enables the successive renewal or expansion of facilities while also adapting them to the current conditions and market requirements.

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What are the types of good inventory?

 There are various inventory methods, which are used depending on the chosen storage solution. A distinction is made between:

  • Chaotic storage

  • Last In First Out (LIFO)

  • First In First Out (FIFO)

  • First Expired First Out (FEFO)

  • Highest In First Out (HIFO)

  • Lowest In First Out (LOFO)

What is the difference between Last In First Out (LIFO) and First In First Out (FIFO)?

With the First In First Out (FIFO) method, the finished products that have been stored first are retrieved first. The FIFO method is also often referred to as the consumption sequence method. The advantage is that the oldest products are removed from storage first. The FIFO method is mainly used for perishable goods, which cannot be stored indefinitely due to the best-before date.

In the Last In First Out (LIFO) method, products leave the warehouse first, which have been stored last. The LIFO method is mainly used in retail and is particularly suitable for non-perishable products without an expiration date.

Both the FIFO method and the LIFO method can be used for inventory valuation, as they are permitted under tax law.

An extension of the FIFO method is the First Expired First Out (FEFO) method, which also takes the expiration date of the products into account. Here, the products that have the shortest best-before date are removed from stock first. This method is mainly used in the food industry.

Legbordstellingen R 3000

Manual Storage

Pallet Racking

Semi-Automated Storage

Pallet Racking

Automated Storage

Automated Storage and Retrieval (ASRS)

Shuttles are a part of an ASRS (automated storage and retrieval system). A shuttle delivers stored inventory to users for either manufacturing or order fulfillment. All storage shuttles work in combination with a racking system that enables high-density storage. Warehouse management software directs the shuttle to which storage location and the shuttle retrieves the inventory stored either in a container, tote, carton, tray, or pallet and delivers it to a goods to person (G2P) system for packing or assembly.

What is an automated storage and retrieval system (ASRS)?

Automated storage and retrieval systems (ASRS) consists of a large number of computer and robot-controlled systems for the automatic placement and retrieval of articles at defined storage locations. The system usually consists of predefined locations where machines can follow set routes to obtain items. In an automated storage and retrieval system (ASRS), there are various ways to provide the storage and retrieval of goods. These applications are typically used in businesses that need to move product quickly either for just-in-time manufacturing or order fulfillment. Most automated systems utilize various options for depending on the item(s) that are being stored. The benefits of implementing an ASRS solution allows for much faster throughput, but also accurate order fulfillment, which is crucial for e-commerce or critical healthcare applications. Furthermore, ASRS system allows organizations to optimize storage space and reduce warehouse labor, which is difficult to find in certain areas. And since there is less handling of products, ASRS solutions are much more secure and have less product damage due to fewer touches.

Various Shuttles and Specific Applications

Since there are various equipment options for an ASRS solution, an SSI SCHAEFER expert can help you navigate which solution may be right for your application. For example, a large volume of smaller units that are being shipped individually have a completely different need than a smaller volume of cases being stored separately or combined and shipped on a pallet.  Depending on one’s need, SSI SCHAEFER has an array of both storage and retrieval options for individual units, cases, or pallet storage. There may be other criteria to take into consideration as well depending on the specific application such as:

  • Omnichannel fulfillment

  • High value goods

  • Prescription medicine or narcotics

  • Freezer or Cold storage

  • Kitting

  • JIT Manufacturing

  • Food retail

Most ASRS warehouse solutions utilize storage shuttles. These robotic retrieval systems work by retrieving items within the storage unit itself. Storage shuttles can be single level, multi-level, or roaming. There are also other options such as vertical lift modules, carousels, and heavy unit load solutions that utilize pallet solutions. 

Which storage method considers the purchase price?

There are two methods that take the purchase price into account: Highest In First Out (HIFO) and Lowest In First Out (LOFO). With the HIFO method, the products with the highest purchase price are moved out first. This method is relatively complex, as many inventory movements are required to remove the most expensive products from stock. The method is used by companies that use or store expensive raw materials. 


With the LOFO method, the products with the lowest purchase price are taken out of stock first. Like the HIFO method, this method is very time-consuming and ties up a lot of capital, as the expensive products remain in the warehouse. The advantage is that the consumption costs of the finished goods are relatively low in relation to the stored products.

What is storage technology?

Warehouse technology is an essential component of internal company logistics. It is the ideal storage and transport of goods in a company to optimize the supply chain as well as processes, reduce costs, increase productivity, and make optimal use of space. A structured, well thought-out storage system facilitates the day-to-day operations of all warehouse employees and is necessary to work efficiently in terms of economy and costs.

In addition to the economic advantages, one of the main focuses of warehouse technology is the safe and environmentally compatible storage of hazardous materials. Special components such as fire protection containers and drum filling stations are used to store in compliance with regulations relating to environmental protection and occupational safety.

Several different storage options are available, depending on the product and requirements. This depends on how large and heavy the goods are, whether they need to be stored in containers, what the temperature should be and how and how often they are accessed. For the smooth running of the business, it is worth investing time in the design of the storage system to optimize the productivity and success of the company in the long term.

What are the tasks of the material handling software in the storage of goods?

Which goods are in which storage location and zone and how they get there depend on the selected allocation and movement strategy. And regardless of whether the warehouse is manual, semi-automated, or fully automated, it is important to use warehouse software to optimize the use of resources, i.e. to achieve maximum efficiency in the storage, transfer, and retrieval processes.

With the data recorded in the software solution of a Warehouse Management System (WMS), one keeps track of clients, stocks, batches, and storage locations. All information is available at the push of a button. The WMS is the central control, monitoring, and optimization instance in complex warehouse and distribution systems. This also includes the control of system statuses in the warehouse and the provision of comprehensive reporting and KPIs.

To fully exploit the advantages of an automated solution in the warehouse - for example, in terms of speed, dynamics, and safety - automated warehouse and conveyor technology equipment is also mapped in the software. The so-called material flow system (MFS) synchronizes and harmonizes the flow of information and goods, considering your warehouse strategy.

What is receiving?

Overview of store order picking area with conveyor
Country Road Group fashion Omni Fulfilment Centre - Melbourne, Australia

What is conveying?

High-bay warehosue with storage and retrieval machine Exyz

What is storage?

Manual order picking of barcodes with RFID scanner

What is picking?

Shipping buffer

What is shipping?

SSI Carrier, Logistics software WAMAS, IT, RF Picking, Radio Frequency Picking,

What is a return?

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