If you’re here, you probably already know that small and medium-sized warehouses are the backbone of supply chain operations in North America.
And their numbers are growing fast.
According to a report by Speed Commerce, the United States warehouse and storage industry includes more than 22,000 facilities in 2023, and it’s safe to say a large share of those are small to mid-sized operations that serve local and regional customers.
Local warehouses run with lean teams. Many with just a couple dozen people. Yet these warehouses are expected to meet the same speed and accuracy standards as the large-scale distribution centers.
Findings from the 2025 Kardex Impact Survey reveal just how efficient these operations have become.
Among more than 100+ warehouse leaders already using warehouse automation, 56% said they run their warehouses with just 24 employees or fewer. Around one in four said they manage their entire operation with just 10 people are less.
As labor markets tighten, order volumes grow, and available warehouse space remains limited (and expensive), smaller facilities are looking for smarter ways to scale.
There’s where Vertical Lift Modules (VLMs) come in.
In this article, we explore what VLMs are, how they are helping small warehouses revolutionize their storage and retrieval processes, and why sustainable growth isn’t just reserved for the big players anymore.
You can think of a Vertical Lift Module as an automated storage cabinet that manages storage and retrieval for you. Inside the unit, trays of inventory are stacked vertically (as tall as your warehouse ceiling). VLMs can completely replace your traditional shelving units.
When your team needs something from storage, they simply click a button in the integrated inventory management software, and the tray is delivered at an ergonomic height right to your worker in just a few seconds.
Now, instead of walking aisles, climbing ladders, and searching for SKUs, your team simply enters a command and the machine brings it directly to them.
Every VLM consists of two columns of trays – one in the front, and one in the back.
In the middle of the trays, a robotic central extractor moves up and down to retrieve and return the stored trays. Sensors inside measure the heigh of each tray as it’s returned, ensuring that every inch of available space is used efficiently.
If you want to learn more about how a VLM works, check out this short overview video:
Resources are tight. Space is limited. Your staff is lean. But you’re facing constant pressure from your customers to move faster.
And that’s where VLMs really shine.
They help smaller operations just like yours achieve the same level of efficiency as the big guys, but without the major up-front investment of more real-estate or more manpower, and without the complicated setup.
Here’s why small warehouses love VLMs:
Space is a premium, and expanding isn’t always an option. A VLM can save up to 85% of your available floor space by using ceiling height instead of floor area. Take a walk down your rows of inventory shelves. Now look up. If there’s dead air above your shelves, a VLM is for you.
VLMs allow warehouses (of any size) to store more SKUs, create room for additional workstations, or even postpone a costly move or expansion by taking all of that shelving and storing it vertically.
But how tall is too tall? We can pretty much guarantee your ceiling isn’t too tall for a VLM. That’s because VLMs are totally modular and customizable. Which means you can have a VLM that’s 8 feet tall or up to 98 feet tall.
For small spaces, that can make a big difference. Did you know that 60 sections of traditional shelving can fit into a 23 foot tall VLM?
Calculation result: 60 Sections of shelving fit into one 23 ft tall VLM
>>> Learn more about maximizing your storage space in this ungated, comprehensive PDF guide
Imagine what you could do with the space you save by consolidating all those shelves. You have room for more inventory. Room for more manufacturing processes. Room for growth.
You probably don’t have a ton of qualified staff on standby. VLMs help lean teams keep up by reducing walking, searching, and manual handling.
That means, your existing team can do way more in the same shift.
How?
With a VLM, your operators stay in one area while the system automatically delivers the next tray. Your team can keep picking consistently and efficiently, even during busy periods or with a smaller crew.
Unlike large-scale automation projects, VLMs are modular and flexible.
If you think your operation is too small to benefit from automation, you’re probably thinking too big.
Many facilities start with a single unit to solve a specific problem (like parts storage or order picking) and add more units later as their operations grow.
Installation is quick, downtime is minimal, and expansion doesn’t require reconfiguring your entire warehouse.
And if large-scale growth is on your mind, VLMs represent a really easy foothold into larger automation projects. That’s because they can easily integrate with pick-and-place robots, cranes, conveyors, and every WMS system on the market. Knowing the capability is there is nice, even if you don’t need it right away.
Did You Know: Kardex Shuttle Vertical Lift Modules are proudly American made and can ship in as little as 4-6 weeks with our QuickShip program.
Tired of your inventory going ‘missing’? Does your team frequently pick the wrong items while they’re multitasking? Are picking orders taking a ton of time and effort?
Manual systems are ripe for inefficiency and errors.
VLMs give you better control over your inventory and take the human-error out of picking.
With guided picking features such as light pointers and software validation through the Kardex Power Pick System, operators always retrieve the correct part or SKU. This not only reduces errors but also improves your inventory visibility and traceability.
Dealing with high-value inventory?
No problem.
VLMs make it easy for you to restrict access to specific trays via employee credentialing. And you get an easy record of what part was accessed, and when, and by whom.
But for small operations, sometimes just knowing exactly how much you have in stock, and where exactly it’s located is enough to close the deal on a shiny new VLM!
For smaller teams, every operator is essential.
If your team spends their lunch hour rubbing their lower back, it could be time for a change.
The VLM’s ergonomic access opening eliminates bending, stretching, and climbing, reducing fatigue and injury risk.
By keeping your workers on the ground and minimizing repetitive strain, VLMs can help you create a safer, more comfortable workspace. (A big win in the competitive marketplace. Especially when trying to recruit younger workers.)
Smaller operations can’t dedicate staff to maintain complex automation processes. So if you’re nervous to give up your static shelves, don’t be.
VLMs are designed for reliability and low upkeep, with intuitive software and minimal maintenance requirements.
They also reduce energy waste by storing items efficiently and minimizing unnecessary movement.
Did You Know: Kardex Remstar is known worldwide for our service reliability and availability. If something does go wrong with your VLM, you aren’t on your own. Our nation-wide team is ready to get you back up and running in no time at all.
As our Kardex Impact Survey showed, 56% of warehouse leaders using automation run their operation with 24 employees or fewer, and nearly one in four operate with teams of 10 or less.
VLMs allow these smaller teams to handle large workloads efficiently, ensuring every employee’s time is spent on productive, value-adding tasks, not walking aisles or searching shelves.
And that’s not all.
In that same survey, 80% of Kardex Remstar customers achieved full ROI in the first 12 months. 33% saw ROI in the first quarter.
For smaller e-commerce operations, floor space disappears fast. A VLM allows businesses to store and pick hundreds ( or even thousands) of SKUs vertically, freeing up floor space for packing, shipping, and returns. Paired with guided picking software, operators can complete orders faster and more accurately, even during seasonal surges.
Your business isn’t too small to benefit from batch picking. And a VLM is a great way to get started.
In production environments, downtime is costly. Many small manufacturers use VLMs to store their tools, parts, and components close to the line, ensuring everything is easy to access when needed.
With trays customized for size and weight, operators can quickly retrieve the right parts without interrupting production flow.
Thousands of parts. Hundreds of models. If your storeroom looks like a warzone, a VLM can help.
From automotive service centers to local maintenance shops, VLMs help manage all of your spare parts and consumables. Simply walk up to the VLM and enter the part your need. And in just a few seconds, it’s right in front of your worker.
With faster retrieval and more organized storage, your technicians spend less time searching for parts and more time turning wrenches.
When handling small, high-value components, organization and ESD protection are key. VLMs provide enclosed, dust-free storage and can integrate with tracking software for complete traceability, ensuring each part is accounted for and handled safely.
Medical distributors and clinics need fast access to supplies while maintaining compliance and cleanliness. VLMs keep inventory enclosed and organized, improving hygiene while helping teams quickly locate the correct items.
In industries with strict traceability and documentation requirements, small suppliers use VLMs to securely store serialized items, tools, and documentation. Integrated inventory management software (like Kardex Power Pick System) makes your audits faster and easier while keeping your sensitive materials protected.
Parts rooms are often cramped and hard to navigate. VLMs help dealerships and aftermarket distributors store diverse parts efficiently. And we mean ALL of your parts. From bolts to bumpers. If stockouts have you up at night, a VLM can help.
Smaller hospitals and labs use VLMs to store medical devices, instruments, and supplies within compact footprints, often placing them near critical departments for immediate access. The system’s enclosed design keeps materials secure and sterile, while automated delivery saves time for busy staff.
Need to keep pathology samples on hand? No problem. Vertical storage can help.
Government agencies, utilities, and universities often face budget and space constraints. VLMs allow these institutions to securely store records, supplies, or maintenance materials in compact, locked systems that make the most of limited facility space.
Learn more about the benefits of VLMs by industry in our complete guide.
When considering automation, it’s natural for smaller operations to wonder if a Vertical Lift Module is too complex or costly for their scale. The truth is, VLMs were designed to be flexible, making them just as effective in a 10,000-square-foot warehouse as in a large distribution center.
Here are some of the most common questions we hear from small and mid-sized warehouse teams:
Not at all. Many small facilities start with a single VLM to solve a specific challenge, like storing spare parts, managing slow-moving SKUs, or consolidating overflow inventory. Because a VLM can replace multiple rows of shelving and boost productivity, the return on investment often comes quickly. The system pays for itself through saved floor space, reduced labor time, and improved accuracy.
Head on over to our guide to learn more about how much a VLM costs. Or pop into our chat to learn how you can get a fast custom quote.
Absolutely. The 2025 Kardex Impact Survey found that 56% of warehouse leaders using automation benefit with 24 people or fewer, and nearly one in four operate with teams of 10 or less. VLMs are intuitive to use, with touchscreen controls and simple workflows that require minimal training. They are perfect for lean teams where everyone wears multiple hats.
VLMs are designed for fast, flexible implementation. Installation usually takes days, not weeks, and integration with existing ERP or WMS platforms is straightforward. The Kardex Shuttle VLM can also operate as a standalone system using its onboard control interface and Kardex Power Pick System software.
VLMs are modular and built to fit your space. Even warehouses with ceiling heights under 10 feet can benefit. For facilities with more vertical clearance, the system scales up easily, making it ideal for businesses that might move or expand in the future.
You can also move your VLM outdoors if your space is particularly small.
Not at all. VLMs are low-maintenance systems designed for reliability and long service life. Kardex offers scheduled service options, but day-to-day upkeep is minimal. The enclosed design also protects parts and components from dust, extending your equipment longevity.
While it depends on your workflow, customers typically see picking productivity increase by 200–300% compared to manual shelving systems. By eliminating walking, searching, and bending, operators complete more orders in less time, with fewer errors.
Yes, of course. And that’s one of the biggest advantages of a VLM. You can add more units or increase the height of existing ones as your business scales. It’s a future-ready solution that grows with you, not against you.
For many small and medium warehouses, VLMs aren’t a big leap into automation. They’re a smart, practical next step. They deliver measurable impact without overwhelming your operation, helping you get more done with the resources you already have.
At its core, the value of a VLM is simple: it helps you do more with the space and people you already have. For small warehouse teams who balance high expectations with tight resources, that’s not just an upgrade — it’s a game changer.
Explore how the Kardex Shuttle VLM can help you reclaim space, boost productivity, and build efficiency into every square foot of your warehouse.