Many warehouses and distribution centers today have reached a tipping point in their operations.
Customer expectations continue to rise, labor markets remain tight, and space costs keep climbing. For operations still relying on traditional static shelving, these pressures are exposing limitations that no amount of process optimization can overcome.
If this sounds familiar, it might be time to invest in a Vertical Lift Module (VLM).
VLMs offer an accessible, space-saving solution that doesn't require a full warehouse overhaul. It can transform storage operations without years of planning or massive capital investment.
In fact, most Kardex customers reach ROI in under a year.
In this post, we’ll explore what makes an organization a good candidate for VLM adoption and the signs that it’s time to optimize your operations.
10 Signs It’s Time to Invest in a VLM
1. You’re Constantly Replenishing Shelves
When fast-moving inventory is stored in static shelving, pickers spend valuable time waiting for stock to be refilled. Someone has to walk to the reserve area, retrieve more items, and restock the pick face, all while orders pile up. The Kardex Shuttle can serve multiple functions at once.
With dual access openings available on multi-level facilities, one opening handles replenishment while the other supports continuous picking. This eliminates bottlenecks and keeps your operation moving.
2. Your Team Spends More Time Walking Than Picking
In manual operations, pickers often spend 60-65% of their shift just walking between locations. That's miles of unnecessary travel every single day, time that could be spent fulfilling orders. VLMs bring the goods to the person, not the person to the goods.
By stationing a single operator at a pod of Kardex Shuttles, you can dramatically reduce travel time and increase picking speed by 200-300%. Your team picks more, walks less, and gets home less exhausted.
3. Finding the Right Item Takes Too Long
When a picker reaches the location of the item they’re fulfilling, they will spend time visually scanning shelves, matching part numbers, and confirming they've grabbed the correct item?
In a facility with thousands of SKUs, this search time adds up fast. Kardex Shuttle VLMs offer integrated pick-to-light technology that eliminates search time completely. An LED light pointer pinpoints the exact location of the item on the tray, while a display shows the part number, description, and quantity needed. No searching. No guessing. Just pick and confirm for the right part every time.
4. Picking Errors Are Costing You Time and Money
Manual picking processes create multiple opportunities for error: wrong item, wrong quantity, misread label. Every mistake means a return, a reshipped order, and a frustrated customer. Over time, these errors damage your bottom line and your reputation.
Kardex VLMs offer software-driven picking combined with visual guidance systems to help you reach accuracy rates of 99.9% or higher. The Kardex Power Pick System guides operators step-by-step through each pick, reducing errors and improving customer satisfaction.
5. Throughput Has Plateaued
You've already optimized workflows, cross-trained staff, and streamlined processes, but you still can't overcome your throughput ceiling. When you’re limited by manual storage and fulfillment, no amount of process improvement will solve it.
Kardex Shuttle VLMs support batch picking and wave picking strategies that allow operators to fill multiple orders simultaneously. Items with common SKUs are picked together in a single cycle, then sorted at a nearby workstation. This approach can increase throughput from 50 lines per hour to 600 lines per hour, a 12x improvement.
6. Inventory Is Getting Damaged or Dirty
Items stored on open shelves are exposed to dust, dirt, moisture, and physical damage. This is especially problematic for precision parts, electronics, pharmaceuticals, or anything with a shelf life. Damaged inventory means write-offs and lost revenue.
The fully-enclosed Kardex Shuttle VLM protects inventory from environmental contaminants while supporting intelligent inventory rotation. Integrated software can manage FIFO (first in, first out) or LIFO (last in, first out) picking strategies automatically, ensuring products are used before they expire or degrade.
7. You Can’t Find What You’re Looking For
In large facilities with open shelving spanning thousands of square feet, items get lost. Mislabeled locations, mis-picks, and simple human error mean you're never quite sure what you have or where it is. Cycle counts help, but they're time-consuming and often outdated by the time they're complete.
The Kardex Power Pick System provides real-time inventory visibility and automatic tracking. Every transaction is logged with user credentials, timestamps, and quantities. The system integrates seamlessly with your WMS and ERP platforms, giving you accurate, up-to-the-minute inventory data, and potentially eliminating physical cycle counts altogether.
8. Security and Shrinkage Are a Problem
Open shelving is inherently insecure. Anyone walking by can take items, whether intentionally or by mistake. Over time, shrinkage from theft or misplacement adds up to significant losses.
Access to the Kardex Shuttle is controlled through user authentication. Only authorized personnel can retrieve items. Every transaction is logged and traceable to an individual operator, creating accountability and drastically reducing inventory shrinkage.
9. You’re Out of Space (But Not Out of Options)
Your facility is at capacity. Aisles are narrowing, vertical space is wasted, and leadership is talking about expansion or relocation. Both are expensive and disruptive options you'd rather avoid. The Kardex Shuttle makes the most of your existing footprint by utilizing vertical space efficiently.
A single VLM can store the same inventory as 120 bays of static shelving, saving up to 85% of your floor space. Instead of expanding your facility, you can reclaim square footage for revenue-generating activities. Dynamic space allocation also maximizes storage density. The VLM automatically measures each tray's contents and positions trays within one inch of each other, fitting more inventory into the same unit.
10. Safety and Ergonomics Are Becoming an Issue
Manual storage forces workers to bend, stretch, climb ladders, and lift heavy items repeatedly throughout their shifts. These movements increase the risk of musculoskeletal injuries, which are among the costliest workplace injuries in warehouse environments. According to injury data, overexertion from handling objects accounts for billions in workers' compensation costs annually.
The Kardex Shuttle delivers items directly to the "golden zone," the ergonomic sweet spot between a worker's shoulders and knees. This eliminates bending, reaching, and climbing, dramatically reducing physical strain. Fewer injuries mean lower workers' compensation costs, reduced absenteeism, and a healthier, more productive workforce.
For operations handling particularly heavy items, Kardex Shuttle VLMs can be equipped with integrated cranes or full tray extraction features.
These options allow workers to handle loads over 20 kg safely and comfortably, as demonstrated in the Viemme case study, where ergonomic improvements led to a 400% increase in operational performance.
The ROI of Smarter Storage
These 10 signs aren't just operational annoyances; they're also drains on your profitability. Solving them doesn't have to take years. Customer surveys show 80% of Kardex customers see ROI in under 12 months. Here’s how you can realize measurable improvements across six key categories:
- Space Savings: Reduce your storage footprint by up to 85%.
- Labor Efficiency: Cut picking time and redeploy workers to higher-value tasks.
- Accuracy Improvements: Eliminate costly picking errors.
- Ergonomic Benefits: Reduce injury rates and workers' comp claims.
- Productivity Gains: Increase throughput without adding headcount.
- Revenue Growth: Fulfill more orders faster, improving customer satisfaction.
Want to see what these improvements could mean for your specific operation? The Kardex Cost Justification Calculator provides a personalized ROI analysis based on your facility's metrics. In just a few minutes, you can see potential savings across all six categories and build a business case for smarter storage.
Calculate Your ROI with the Kardex Cost Justification Calculator
Don’t Wait for Inefficiency to Catch Up
If you recognize your operation in any of these 10 signs, you're already paying the hidden costs of manual storage: lost productivity, wasted space, safety risks, and missed growth opportunities. The question isn't whether automation can help. It's whether you can afford to wait.
Kardex VLMs offer a practical, proven path forward. They don't require a complete facility redesign; they integrate with your existing systems, and they deliver results fast, often within the first year. Ready to take the first step?
Calculate your potential ROI or speak with a Kardex automation specialist to explore how a VLM could transform your operation.
