If you’re constantly battling for space inside your warehouse, here’s a thought…
What if you moved your storage outside?
No, we’re not talking about racking pallets in the parking lot. We’re talking about installing your Vertical Lift Module (VLM) in an exterior enclosure.
It’s possible to build a fully enclosed, climate-controlled VLM unit that exists just outside your facility’s current walls.
This setup has been gaining traction across a number of industries and applications. It’s smart. It’s flexible. And it could be less expensive than you think. Especially if you can utilize your saved storage space for revenue-generating activities.
Relocating your vertical storage outside the physical warehouse footprint unlocks a world of opportunities to enhance space utilization, safety, and efficiency.
In this article, we’ll cover what outdoor VLMs are, how they work, what their benefits are, and more.
Ready?
Let’s head outside and see what’s in storage.
A Vertical Lift Module (VLM) is a type of automated storage system that uses a vertical design to store items in trays between two columns. Think of the VLM like a giant industrial vending machine, delivering goods directly to an access window with the push of a button or scan of a barcode.
There are so many benefits to using a VLM in your warehouse, including space savings, improved organization, inventory control and visibility, and boosted picking efficiency.
But here’s where it gets interesting: you don’t HAVE to install a VLM inside your warehouse.
Instead, the VLM can be housed in a weatherproof, climate-controlled exterior enclosure. It’s easy to do with a secure structure attached to the outside of your facility.
Your team still accesses products from inside the building, through one or more access windows. These windows can be installed on a single floor, or multiple floors, depending on your layout and needs.
But why store outdoors?
Here are a few of the benefits:
We know we don’t need to tell you how valuable the square footage inside your facility. When we speak with warehouse managers, maximizing that real estate is their top priority. And while having a VLM indoors can save you up to 85% of your floor space, moving a VLM to an exterior enclosure lets you reclaim 100% (yes, we really mean 100%) of that floor space. With the right exterior enclosure, you can repurpose all (or most) of your interior storage space for production, packing, staging, or any other purpose that drives your operation forward.
Growth is always a good thing. But if that growth has you looking at additional warehouse space, you’re going to have to deal with a host of other cost factors. If adding additional square footage to your existing facility isn’t in the cards (or long-term budget), and you’re struggling to fit your inventory in your existing space, then an exterior enclosure VLM may be right for you.
Outdoor VLMs can expand your storage capabilities without the cost or disruption of a major remodel or expansion.
So, not only can you repurpose your existing warehouse layout, but you also save big on rent by not needing to add new facilities for critical storage.
Image: Shows outdoor VLMs before enclosure is built
If your picking staff has started tuning out the beeping of forklifts, it might be time for a change. Separating your parts storage area from your central workflow areas can significantly reduce congestion on the floor. And while VLMs can be a powerful part of an integrated warehouse workflow, if you have a busy floor, exterior storage can make a huge difference for your team, your workflows, and your safety standards.
Forklifts, pickers, and production teams can move more freely without competing for space with your storage areas.
With an exterior VLM setup, access windows can be strategically placed where needed, such as on the production floor, in the packing area, or even across multiple floors. So you still get fast, ergonomic access to your inventory while improving overall warehouse safety and flow.
Storing high-value inventory or sensitive materials? An exterior VLM enclosure adds an extra layer of security.
Because access to the VLM is limited to the interior access window(s), it’s easier to control who can retrieve what and when. You can also equip the VLM with badge readers or login credentials to track user activity and maintain tighter inventory control.
For industries like electronics, aerospace, and pharmaceuticals, that kind of oversight is a game-changer.
Need more storage next year? No problem.
Changing your warehouse layout is unavoidable as you expand. But multiple iterations can lead to confusion, safety concerns, and the inevitable accident or two.
Exterior enclosures make it simple to scale up your storage vertically or add additional units side-by-side. Their modular flexibility means that your operation can grow without needing to constantly reconfigure your internal warehouse layout.
Vertical storage, inside or outside, is ideal for businesses with growing SKU counts and seasonal demand spikes.
Of course, building an exterior enclosure silo comes with added cost. Not to mention, there are local zoning considerations to keep in mind. But working with an experienced team can make the process smooth and easy. But still, many folks will wonder, is building an exterior enclosure worth the additional cost?
Reclaiming vast amounts of floor space can help you prevent expansion, saving you enormous amounts on new site development, new rent, new staffing, and more.
Here's the real kicker. Installing your vertical lift module storage system outdoors is not disruptive to your current operations. The VLM is built outside, so there's no need to reroute your floor for the installation. For example, installation and parts loading can be easily scheduled during downtime (perhaps on a weekend) so your system is up and running when your team returns to work on Monday. So you get all of the benefits of automated on-site storage with none of the disruptions.
But most importantly, reclaiming your interior floor space allows you to refocus that square footage on revenue-generating activities. So you can start getting ROI from your investment right away.
In a survey of 100+ Kardex customers, 80% said they saw measurable ROI within the first year. And 33% said they saw it within the first 3 months.
There are several ways you can build your exterior silo. While going vertical usually means building up, that’s not always the case.
One way to get more space is to build down. In some applications, it may be more sensible to construct a pit for your enclosure. According to Abel Womack, a trusted Kardex partner, building a pit for your VLM is a straightforward consideration if you’re already involved in construction or working on a new building. But it may not be the right fit for every application. Another way to go vertical is to build through the ceiling with a “top hat.” Your VLM would remain inside the building, but the ceiling is cut through, and the enclosure is built over the roof.
There are a few benefits to these types of installations. Namely, that you’re not expanding your existing footprint and that you can utilize your existing HVAC system.
Feeling lost? Finding the right fit for your warehouse doesn’t have to be a mystery. Our team is here to help.
Exterior VLM installations are becoming THE go-to solution for operations where every square foot counts. And for operations where safety, cleanliness, or specialized workflows demand a, well, more innovative approach to storage.
Let’s take a look at how a few industries are putting exterior enclosures to work:
Is your production floor space already maxed out with equipment, conveyors, and workstations? Installing a VLM inside the building may not be practical - or even possible.
Exterior enclosures enable manufacturers to expand storage capacity without disrupting their layout (or interfering with existing workflows).
Moving the VLM outside helps keep the production floor lean, organized, and safer for your personnel. Just imagine if all of your current storage space was being used for revenue-generating activities. With exterior storage, it’s possible!
Does your hospital need more beds? You’re not alone. Storage rooms, supply closets, and back hallways often double as makeshift inventory areas, crowding staff and reducing available space for patient care.
That’s why so many hospitals turn to vertical lift module storage solutions for critical supplies.
By relocating hospital supplies (think: linens, PPE, consumables, or maintenance materials) to a VLM housed in an exterior enclosure, hospitals can reclaim that valuable interior space. Without your bulky supplies taking up real estate, you can repurpose those spaces to add patient beds, expanded treatment areas, or support services that directly impact patient outcomes.
Your hospital already makes great use of outdoor storage for gas, power, and more.
Why not take some of that storage outdoors as well?
In dense urban areas, warehouse space is expensive. And all trends point to those square footage costs continuing to increase. For scaling companies, growing your footprint is rarely an option. Exterior VLMs offer a clever workaround, leveraging your unused exterior wall space to add vertical storage without touching the building’s internal square footage.
This setup can be the perfect solution for last-mile logistics, e-commerce hubs, or micro-fulfillment centers that are trying to pack more capability into their limited real estate.
Sacrificing a few parking spaces for 85% more interior storage? It’s a no-brainer.
In industries like pharmaceuticals, medical devices, and electronics manufacturing, cleanroom space is some of the most valuable (and limited) real estate in the facility.
That’s why these industries are turning to exterior VLMs as an innovative, compliant way to expand storage without compromising their cleanroom protocols.
VLMs are ideal for the clean room environment.
Recently, we've seen a growing demand for vertical storage units to serve dual purposes. 1) Buffer storage during manufacturing, and 2) automated pass-throughs between ambient and cleanroom environments
With the right airflow design and environmental controls, a VLM located outside the cleanroom can effectively function as an extension of the clean space. So you can:
By using a VLM as a pass-through, materials can easily move between clean and non-clean environments without human handoffs, reducing touchpoints and maintaining process integrity. And since the VLM can be serviced from the exterior, technicians avoid entering controlled zones, supporting both uptime and compliance.
Read more about our clean room compliant storage solutions here.
Don’t let short ceilings stop you from going vertical. Exterior VLM enclosures enable you to take full advantage of your property’s air space without needing to add square footage to your existing building. Simply take that height outside! Exterior enclosures are an economical, easy, and fast way to get the most value from your existing square footage. The “top hat” we covered earlier might also be a great fit for low-ceiling warehouses.
Worried about the weather? We understand. If you’re moving your valuable inventory outside, you want to make sure the solution is up to quality and safety standards.
Kardex Shuttle Vertical Lift Modules are TÜV-certified for safe, stable operation, even up to 41 meters high. These systems are built to withstand the elements while aligning with Industry 4.0 standards. It’s a future-ready solution that supports your move toward digitalization and smart factory automation.
And when it comes to seismic stability, we’ve got that covered, too.
Our VLMs are engineered with seismic-resistant frames, reinforced components, and robust anchoring systems designed to withstand earthquakes and extreme conditions. Built-in energy absorption technology helps dissipate seismic forces, protecting both your people and your inventory. So you can keep your operations running even when the unexpected strikes.
Whether you're dealing with harsh weather or high seismic risk, Kardex systems are designed to perform reliably, year after year.
Making the choice to take your storage outdoors is a huge decision. There’s so much to consider. That’s why we have a team of warehouse optimization experts at the ready. If you’re considering ASRS (inside or outside) get in touch with us today to schedule your free, no-commitment site visit. An automation expert will tour your facility, listen to your unique goals, and help you determine the best-fit technology for your application.
What are you waiting for?
Schedule your free on-site visit today.