Curbing pharma warehouse storage expansion with ASRS

Aug. 5, 2024
Traditional storage methods are becoming unsustainable for handling increased volume without compromising operational efficiency, but automated storage and retrieval systems can help

As we approach 2025, the pharma industry is facing record level requests for warehouse storage expansion, triggering the need to prioritize warehouse management innovations. To meet growing global health demands and patient needs, many pharma companies are expanding their research and manufacturing arms, leading to an increase in the physical footprint of their warehouses — challenging them to manage space more efficiently.  

Traditional storage methods are becoming unsustainable for handling increased volume without compromising operational efficiency, but automated storage and retrieval systems (ASRS) are helping pharma companies to meet this moving target. 

Also known as dynamic storage systems, high density storage and retrieval systems, and goods-to-person picking technologies, ASRS is a dynamic technological solution that maximizes the existing footprint of warehouses by utilizing vertical space and organizing products compactly. In turn, this maximization reduces the need for warehouse expansion and cuts down on overhead costs associated with space rentals and personnel to manage those new spaces.   

How can ASRS support pharma warehouses? 

When it comes to pharmaceuticals, ASRS combines integrated software systems with precise mechanical handling to ensure efficient, secure and accurate handling of drugs and medical equipment. These systems range from standalone vertical lift modules to entire robotic warehouses, tailored to meet the company’s specific needs. 

Given the stringent regulations of pharmaceutical warehousing — ensuring that products are produced and controlled according to the highest quality standards — ASRS supports pharma companies with:  

  • Inventory control: ASRS technologies streamline inventory management processes, enhancing throughput with quicker retrieval and storage capabilities and improving inventory tracking and security with integrated software programs 
  • Regulatory compliance: ASRS offers enhanced tracking and management capabilities to ensure rigorous adherence to pharmaceutical regulations and minimize associated human error 
  • Storage zone monitoring: With ASRS, pharma companies can precisely monitor and control various storage zones, ensuring products are kept under ideal conditions with minimal manual intervention 
  • Hygiene and safety: The technology minimizes human contact with sensitive products, significantly reducing contamination risks; Additionally, automating repetitive tasks increases security by limiting physical access to high-value drugs 
  • Environmental and climate control: Essential for products that require specific storage temperatures, ASRS integrates seamlessly with climate-controlled systems to maintain optimal conditions consistently — this factor is of the utmost importance 

Maintaining optimal warehouse temperatures is crucial to ensure the integrity and efficacy of medications. Various factors influence the interior climate of a warehouse, including the size of the facility and its fill level, which can affect air circulation and temperature distribution. The placement of products within the warehouse and the time of year also play significant roles, as seasonal temperature fluctuations require adaptive climate control strategies.  

Additionally, the interior environment is shaped by architectural elements such as fittings, gates, doors and windows, which can influence both natural and artificial light exposure. Robust air conditioning systems and proper insulation are essential to mitigate these variables, ensuring a stable environment that meets strict regulatory standards for pharmaceutical storage.  

ASRS in a pharma manufacturing environment 

In a pharma environment, an ASRS would be capable of filling many different roles throughout the manufacturing process.  

Receiving and storing incoming inventory
Upon arrival at the pharma manufacturing facility, inventory is first received and verified before being stored in the ASRS. Each item is scanned and allocated to a specific storage location based on the item's characteristics, such as size, weight and required storage conditions based on a sophisticated inventory management system. This enables a high level of inventory visibility and security, providing the manufacturer with real-time updates on inventory levels and peace of mind that all inventory is accounted for 24/7. 

Production staging and retrieval 
When production is scheduled to begin, the necessary raw materials and components would be automatically retrieved from the automated storage solution and delivered to an operator (or other automated system). The ASRS works in tandem with a WMS or ERP to ensure that the correct item and quantity are picked and delivered to the production line. The system uses pick-to-light technology, guiding operators to the precise location of each item, which is then transported to the production area. This minimizes manual handling and reduces the risk of errors. 

In-process inventory management 
Components and semi-finished products that need temporary storage between different production stages can be stored and tracked in an ASRS. The production process becomes more streamlined and efficient as ASRS decrease the time required to store and retrieve items. Furthermore, the inventory control capabilities of ASRS software allow manufacturers to accurately track material flow through the various production stages.    

Finished goods handling 
Once the pharmaceutical products are completed and packaged, they can once again be stored using ASRS. The finished goods are stored in high density and low footprint storage where they await quality control testing and eventual distribution. The ASRS further ensures that finished items are stored and available in an optimized manner, making it easy to retrieve specific batches for testing or shipping. 

Types of ASRS  

The pharma industry benefits from various ASRS configurations, each suited to different operational requirements. These include: 

Vertical carousel modules (VCMs) 
VCMs consist of carriers that move bi-directionally in a continuous vertical loop. At the command of an operator, these carousels efficiently transport stored items to a conveniently located work counter for easy access. In pharma warehousing, VCMs are ideal for handling sensitive materials that require controlled access and storage conditions, ensuring that items are protected yet quickly retrievable for processing and distribution. 

Vertical lift modules (VLMs) 
VLMs are enclosed automated storage and retrieval systems that feature a dual-column tray setup. A central inserter/extractor mechanism presents trays filled with items to an operator when needed. This system is especially beneficial in pharma settings where cleanliness and space utilization are critical. VLMs minimize the footprint of storage areas while protecting contents from contamination, which is vital for maintaining product integrity. 

Vertical buffer modules (VBMs) 
VBMs are an economical tote storage solution that involves an enclosed shelving system with a central movable mast. It efficiently retrieves and stores totes, which are then presented at an ergonomic picking station or directed onto an outbound conveyor. In the pharma industry, VBMs support the handling of various packaging sizes and types, from bulk ingredients to finished products, ensuring streamlined operations and reduced handling errors. 

Plus, as companies evolve and their inventory demands change, ASRS can be efficiently scaled or adapted to meet these new requirements. This flexibility ensures that pharmaceutical operations can expand or adjust their storage capacities with minimal downtime or disruption.   

Meeting compliance requirements 

Pharmaceutical logistics are increasingly relying on the integration of ASRS as essential for meeting the stringent global standards and regulations that govern the industry. However, these systems must be in compliance with Good Manufacturing Practices (GMP), Good Distribution Practices (GDP) and the GAMP 5 guidelines, which set strict guidelines for the validation of computer-supported systems in pharma environments. These regulations include criteria for hygiene, climate control and temperature management, which are critical for ensuring the integrity of drug products. 

Choosing the right ASRS provider involves a meticulous evaluation of their hardware and software capabilities to ensure they align with these rigorous standards. The right ASRS solution not only meets technical requirements but also enhances operational efficiency, ensuring that pharma companies can maintain the highest levels of quality assurance.  

Given the high stakes of consumer health in the pharmal industry, maintaining end-to-end compliance with these standards throughout the production and distribution chain is crucial. ASRS systems play a key role in achieving this compliance, minimizing human error, and maximizing precision in every aspect of warehouse management. 

The future of storage technologies 

As we look toward the future of pharmaceutical warehousing, the strategic adoption of ASRS is becoming increasingly essential. With the pharma industry poised for continued growth and transformation, the integration of advanced technologies like artificial intelligence and internet of things into ASRS will further optimize inventory management and predictive maintenance, making a stronger case for implementation in day-to-day operations.  

This evolution will drive efficiency while also significantly reducing operational waste, ensuring that pharma companies can maintain compliance and remain competitive in a fast changing world.  

About the Author

Christina Dube | Director of Marketing, Material Handling & Supply Chain, Kardex

Christina Dube is the Director of Marketing for North America at Kardex, where she has leveraged over two decades of material handling experience to drive strategic growth. With a deep understanding of warehouse processes and inventory management, Christina excels in enhancing these areas through automated storage and retrieval solutions.

In her current role, Christina is responsible for overseeing a wide range of marketing activities, including demand generation, campaign strategy, industry-specific initiatives, thought leadership, brand management, and budgeting. She skillfully manages and coordinates marketing staff, focusing on digital ad spend, marketing communications, content creation, event execution, and distributor relations.

Her passion for material handling and her commitment to innovative solutions have made her a pivotal force in elevating Kardex's marketing efforts and expanding its presence in the North American market.