The oil and gas industry employs an incredible range of equipment and tools across operating environments that range from upstream drilling infrastructure to large-scale refineries and chemical plants.
To keep this vast global industrial endeavor running, oil and gas equipment manufacturers and service providers face the challenge of managing thousands of SKUs, including high-value components and heavy tooling. Product configurations change from job to job, tooling requirements vary by application, and critical spares must always be available to keep manufacturing lines and downstream operations running without interruption.
In many cases, the storage systems used to manage this challenge were simply never designed for today’s production demands. As operational complexity grows, parts risk becoming difficult to locate, and tooling consumes more valuable floor space. Over time, these limitations of traditional shelving, floor racks, and other manual storage methods become harder to sustain.
In this article, we take a look at how oil and gas manufacturers are turning to automated storage and retrieval systems (ASRS) to solve this growing complexity.
By consolidating inventory in vertical space, delivering goods directly to the operator, and pairing storage hardware with intelligent software, ASRS helps bring order, safety, and accountability to demanding oil and gas production environments.
ASRS systems can benefit a range of industries, but they are particularly well-suited for oil and gas equipment because they align with some of the central operational pressures of the industry:
High-mix, high-value inventory: oil and gas OEMs and maintenance teams manage thousands of SKUs, including bespoke tools, specialized components, and critical spares that are costly to replace and difficult to track using manual systems.
Frequent engineering changes: Product designs and configurations evolve from job to job, requiring storage systems that can adapt quickly as part numbers, tooling, and workflows change
Limited square footage that puts a premium on physical footprint: Manufacturing space delivers the highest returns on limited space, creating strong incentives to reclaim space from storage.
Safe handling of heavy and awkward items: Large tooling, molds, and irregular components increase safety and ergonomic risks when handled manually or stored on traditional racking.
Across oil and gas manufacturing and service operations, automated storage systems can drive value across each phase of the production and operating lifecycle.
Oil and gas equipment manufacturers rely on a steady flow of components to keep production moving. These include O-rings, machined metal parts, electronic components, hoses, valves, pumps, pressure gauges, and fasteners. Individually small, these parts quickly add up to thousands of SKUs that must be available on demand.
The challenge at this stage is rooted in both volume and similarity. Many components look alike, are easy to misplace, and are costly or time-consuming to replace if lost. Automated storage helps ensure these parts are easy to locate, accurately picked, and protected from loss or damage, supporting consistent throughput on the manufacturing floor.
Manufacturing for oil and gas rarely follows a single, repeatable pattern. Facilities often support multiple product families, each requiring its own fixtures, molds, jigs, and specialized tooling. These tools are frequently heavy, irregularly shaped, and poorly suited to standard pallet racking or open shelving.
Automated storage provides a controlled way to store and retrieve tooling without dedicating larger areas of floor space. By organizing tools vertically and delivering them directly to the operator, facilities can support fast changeovers while reducing handling risks and congestion around production areas.
Beyond manufacturing, oil and gas operations depend on critical spares to keep refineries and chemical plants running. When a component fails, downtime costs escalate quickly, making rapid access to the correct replacement essential.
Storing critical spares in automated systems ensures they are secure, clearly located, and immediately accessible when needed. This level of organization supports faster response times, reduces the risk of missing or obsolete inventory, and helps protect uptime across downstream operations.
What does an automated storage system for oil and gas manufacturing actually look like in practice?
In most facilities, it starts with key systems designed to address two distinct challenges: leveraging vertical space to store heavy, awkward items efficiently, and precisely organizing thousands of smaller, high-value components.
As we explain below, vertical lift modules (VLMs), paired with flexible tray configurations and dedicated control software, are well-suited to this combination of requirements.
Vertical Lift Modules (VLMs) for Heavy, Mixed Inventory
Vertical lift modules store trays vertically inside an enclosed system and deliver them automatically to an access opening according to the goods-to-person principle. Instead of operators walking aisles or searching through racking, the system brings the required tray directly to the user. For oil and gas manufacturers, this approach works especially well for heavy parts, tooling, molds, and mixed inventories that don’t fit neatly into standard pallet racking.
Different VLM models can be deployed within the same facility based on tray load capacity. Kardex Shuttle Vertical Lift Modules, for example, store trays in a vertical stack and use an internal extractor to retrieve the required tray and present it at an ergonomic access opening, making them well-suited for heavy tooling, molds, and mixed inventories that need precise placement and controlled access.
Heavy-duty VLMs can be used to store extra-heavy or extra-long goods.
Vertical carousel systems such as the Kardex Megamat, by contrast, use a rotating carrier loop to continuously cycle stored shelves to the access point, which can be advantageous for bulky or heavier items where sequential access and high throughput are priorities.
To support safe handling, VLMs are often used in conjunction with overhead cranes and hoists. This allows heavy or awkward items to be loaded and unloaded ergonomically, reducing manual lifting and improving safety around the storage and retrieval process.
Custom Tray Layouts for High-Value Small Components
Small components play an outsized role in oil and gas manufacturing, and they require just as much structure as large tooling. VLM trays can be configured with dividers, bins, and custom inserts to keep O-rings, machined parts, electronic components, and fasteners organized and clearly separated.
This flexibility is critical in environments where SKUs change frequently. As product designs evolve or new variants are introduced, tray layouts can be reconfigured without replacing equipment or reworking the entire storage system.
ASRS Control Software for Location & Access Management
The physical storage system is only part of the equation. Dedicated ASRS control software provides the intelligence that makes automated storage practical for daily operations. The Kardex Power Pick System, for example, manages every storage location within the machine, guides operators to the correct tray and compartment, and records each transaction.
Automatic access logging and movement tracking means ASRS software can improve accountability and reduce the risk of lost or misplaced inventory.
Even in facilities that do not integrate storage directly with a host system, this software layer can play a key role in maintaining visibility and control inside the automated system.
Integrating with SAP and Other ERP Software for Streamlined Inventory Management
Many oil and gas manufacturers rely on SAP as their ERP or warehouse management platform. For these organizations, proven integration between ERP systems and ASRS software is an important consideration when evaluating storage solutions.
In a typical workflow, the ERP system generates a work order or pick request, which is passed to the ASRS software.
The storage system then sequences the required picks, delivers the correct trays to the access point, and confirms each transaction. That confirmation flows back to the ERP system, keeping inventory records aligned without manual reconciliation.
For oil and gas operations, a Vertical Lift Module can add a valuable layer of fire protection by keeping critical parts and consumables inside an enclosed, controlled storage environment instead of across open shelving and crowded aisles.
Depending on your site requirements, a VLM can be specified to support advanced fire safety measures such as integrated smoke or heat detection, automatic shutdown behaviors, and compatibility with in-cabinet suppression solutions or facility fire systems.
Beyond the hardware options, the real benefit is risk reduction: fewer exposed combustibles, less aisle congestion, and less forklift traffic around high-value inventory, all while maintaining secure, organized access to the parts you need to keep uptime high.
Fire protection needs vary by facility and compliance standards, so the right approach is to confirm requirements with your Kardex team and your local safety authority during design.
For oil and gas manufacturers and service providers, automated storage systems drive ROI through a combination of space recovery, safer handling, tighter inventory control, and the ability to adapt as product requirements change. Together, these benefits compound across manufacturing, tooling management, and plant support operations.
Automated storage systems dramatically reduce the footprint required for inventory by shifting storage vertically. In many facilities, this allows organizations to reclaim large areas of floor space previously consumed by shelving or racking.
That recovered space is often redeployed for manufacturing or value-added operations, which typically deliver a much higher return than storage. For plants under pressure to increase output without expanding their footprint, this space efficiency alone can justify the investment.
The goods-to-person principle eliminates much of the walking, bending, and reaching associated with manual storage. Operators stay at a fixed access point while trays are delivered automatically, reducing fatigue and improving productivity. When handling heavy tooling or awkward components, integrated overhead cranes and hoists further reduce risk by minimizing manual lifting. This combination supports safer workflows, fewer injuries, and more consistent handling of critical assets
High-value components and tooling represent a significant investment, and losses or misplacements can quickly erode margins. Automated storage enforces structured locations through defined trays, bins, and compartments, making inventory easier to find and harder to lose.
Software-driven access control and transaction logging add another layer of accountability by recording who accessed what, and when. This visibility reduces shrinkage, supports internal controls, and simplifies inventory reconciliation.
Oil and gas manufacturing environments rarely stand still. As product lines evolve and engineering changes are introduced, storage systems must adapt without becoming a bottleneck.
Automated storage supports this flexibility by allowing tray layouts, storage assignments, and workflows to be reconfigured without re-racking or redesigning the warehouse. This adaptability helps protect the long-term value of the system as production requirements shift over time.
Frank Mohn, a manufacturer of submersible pumping systems for the oil and gas industry, operates a multi-floor production facility in Frekhaug, Norway, where parts ranging from small components to bulky, heavy assemblies must move efficiently between machining, welding, and assembly areas.
Before automation, pallet shelving and manual transport were used to stage semi-finished and finished goods, consuming valuable floor space and slowing internal movement between production steps.
To improve access times and make better use of its existing footprint, Frank Mohn partnered with Kardex to design a customized automated storage solution.
The resulting system leveraged vertical space by employing an 18-meter-high TowerMat pallet storage system that consolidated 165 Euro pallets into just 49.5 square meters of floor space, enabling optimal use of hall height while freeing up room for production activities. Combined with additional automated storage systems for smaller and medium-sized parts, the solution streamlined internal transport and supported just-in-time delivery of components to assembly.
Learn more about how Frank Mohn used automated storage to reclaim space, improve material flow, and support oil and gas manufacturing operations in the full case study.
TTE is a global distributor and manufacturer of precision cutting tools serving oil and gas, watchmaking, and automotive markets. From its logistics hub in Valmadrera, Italy, the company manages a product portfolio of more than 42,000 items and processes thousands of order lines per day, with significant variability in order size and composition.
As order volumes and service expectations grew, TTE needed a storage and picking system that could keep pace while remaining flexible enough to handle daily fluctuations. They selected Kardex to develop a solution that could improve storage density, picking speed, and operator efficiency without sacrificing accuracy.
The solution integrated multiple automated storage technologies, including vertical lift modules, vertical carousels, and Miniload systems, enhanced with pick-to-light and laser guidance. Custom workflows, including cross-docking for urgent orders, allowed TTE to route products directly to shipping when required and manage multiple orders simultaneously.
Discover how TTE increased warehouse efficiency and supported fast, flexible order fulfillment in the full case study.
In oil and gas manufacturing and service operations, an ASRS is a combination of automated storage equipment and software used to organize, secure, and retrieve parts, tooling, and critical spares. These systems are typically deployed in manufacturing plants, service hubs, and maintenance facilities to improve space utilization, safety, and inventory control.
Yes. Vertical lift modules and similar ASRS technologies are commonly used to store heavy parts, molds, fixtures, and tooling. Systems can be selected and configured based on required load capacities and are often paired with overhead cranes or hoists to support safe loading and unloading.
Many oil and gas manufacturers run SAP as their ERP or warehouse management system. ASRS platforms can integrate with ERP systems to receive orders, sequence picks, and confirm transactions back to the host system. Even without full integration, ASRS software manages internal locations and inventory movements within the automated system.
Automated storage is not limited to traditional warehouses. Many systems are installed directly on the plant floor or adjacent to production areas, allowing parts, tooling, and spares to be stored closer to the point of use and delivered to operators as needed.
Implementation timelines vary based on system size, configuration, software integration requirements, and facility conditions. In most cases, deployment is handled as a phased project that includes upfront assessment, system configuration, installation, and commissioning to minimize disruption to ongoing operations.
Automated storage systems give oil and gas manufacturers and service providers a practical way to regain control over space, inventory, and material handling, all while unlocking safer workflows and greater adaptability to changing production requirements.
Whether the goal is to free up floor space for manufacturing, improve access to critical tooling and spares, or bring greater structure to high-value inventory, ASRS can play a meaningful role across the operation.
If you’re ready to see how automated storage could support your facility, reach out to our team. A Kardex specialist can assess your inventory, space constraints, and workflows, and help determine the right configuration for your operation.