At Siemens Rastatt, an automated small-parts warehouse that was over 30 years old remained in operation until it finally broke down. Spare parts became scarce, error rates rose, and the four different types of KLT containers that production had been using for decades could not be easily replaced. Today, a fully automated AutoStore warehouse system supplies the production line around the clock—without a single manual intervention between goods receipt and the production line. Operations did not come to a standstill for a single day during the implementation.

What Siemens has achieved is not an isolated case. More and more manufacturing companies are making the same decision: to take intralogistics seriously—and modernize before pressure forces them to do so. Sixty-three percent of manufacturing companies in Germany have not yet automated their intralogistics—or have done so only to a limited extent—while their production lines operate at the cutting edge. The gap between the two comes at a cost, often greater than meets the eye.

This article explains when AutoStore is the right choice as a production buffer, what such a project needs to succeed, and what the investment is truly worth in practice—so you can make an informed decision before pressure forces the decision for you.

 

When Production Is Running, But the Warehouse Can’t Keep Up

The pattern is the same in almost every plant: Investments in machinery and equipment have been consistently made. Between the final step on the production line and the first pick at the order-picking station, warehouse logistics operate just as they always have—with forklifts, temporary buffers made of Euro pallets, and staff who walk more kilometers each day than necessary. With growing volumes, an increasing variety of products, and fewer available staff, this approach no longer works.

The need for action becomes apparent before it becomes urgent: rising error rates during every capacity peak, shifts that can only be staffed with temporary workers, and external warehouses that began as pragmatic stopgap solutions but have become an expensive permanent arrangement. According to German Economic Institute, the German economy loses production capacity worth 49 billion euros annually due to unfilled positions.

For many companies, the shortage of skilled workers is no longer an abstract future risk—it is a concrete problem in daily shift planning. Companies that recognize these signs early on have a choice. They can design the system configuration, timeline, and budget rather than having to make decisions under pressure.

“Very few of our customers say, ‘We have a 5-year plan that includes logistics.’ Many come and say: ‘Here’s the RFP; the system needs to be up and running as soon as possible.’”
Tim Klühspies, Deputy Sales Manager at AutoStore, HÖRMANN Intralogistics

 

What a production buffer really needs to deliver

An automated storage system in production is not a picking warehouse. The difference is fundamental: In fulfillment, it’s no problem if an order ships five minutes later. In production, the right parts must be at the right station at the right time—timed to the second, with no room for improvisation. If the timing goes out of sync, production could come to a halt in the worst-case scenario.

What makes this precision possible is not a matter of hardware. The AutoStore system makes no distinction between a picking warehouse and a production buffer. That distinction is made by the software that controls it. At HÖRMANN Intralogistics, this role is fulfilled by HiLIS, the in-house developed Warehouse Control System. It is developed and maintained in-house—not purchased off-the-shelf, nor maintained by a third-party provider.

HiLIS adapts in real time, integrates interfaces seamlessly, and responds to changes in the production cycle—something a purchased off-the-shelf system cannot do. Interfaces to the customer’s ERP are defined early on and tested against a virtual model of the AutoStore warehouse before the physical system is in place. On the day of the go-live, there are no more open questions.

 

Fit Check: What Makes an AutoStore Project a Success in Production

☐ Plan for scalability from the start: Where can the grid expand? Has room for expansion been planned, or is the system positioned in such a way that it can never be moved due to structural constraints? Clarifying this early on ensures you build a facility that keeps pace with operations.

Define software and interfaces early on: The ERP interface, warehouse control system, and testing phase belong in the early planning phase—not during commissioning. Those who thoroughly test the software in advance and virtually validate interfaces will have no unanswered questions on go-live day.

Integrate existing structures, don’t replace them: Established container types, spatial conditions, and well-established processes—a good integrator adapts the system to the operation, not the other way around. This reduces the effort required for the transition and prevents operational disruptions during ongoing operations.

Plan the rollout during ongoing operations: The question of what will happen to production during the rollout must be answered before the first shovel hits the ground. Those who coordinate installation, software testing, and commissioning effectively can manage the transition without downtime.

The IntraBLOGistics article Automation in the Warehouse: 3 Typical Struggles. As a general contractor, HÖRMANN Intralogistics assumes overall responsibility: analysis, planning, integration, and operation—all from a single source—using software developed in-house and driven by the personal commitment of a family-owned business that stands behind its projects.

 

What the Investment Is Really Worth

According to AutoStore data, the typical payback period for an AutoStore production buffer is three to five years. What may seem like a long timeframe at first glance is quickly put into perspective when considering the cost factors that are often omitted from many ROI calculations.

Labor is the most obvious driver: fewer employees for the same or higher output, less temporary staff during peak periods, and fewer errors due to staff turnover. Added to this are external warehouse spaces that were rented because there wasn’t enough room—and which are no longer needed with the system. The effort required to coordinate between multiple locations is eliminated. Inventory staff, who are considered a fixed part of operations, become redundant.

AutoStore requires up to half as much floor space as a conventional racking system—a factor that is often underestimated in space cost calculations. What further sets AutoStore apart from many other investments is its scalability: A HÖRMANN customer expanded its system from 3,000 to 12,000 bins without any downtime. The prerequisite is that the expansion space is factored in from the very beginning. The article Newly Networked Warehouse Logistics.

 

Siemens Rastatt – What Fully Automated Production Supply Looks Like in Practice

Siemens Rastatt faced a challenge familiar to many companies: The automatic small-parts warehouse, which was over 30 years old, needed to be replaced without interrupting production. Four different types of KLT containers, which had been an integral part of the processes for decades, could neither be replaced nor transferred via time-consuming manual repackaging processes.

HÖRMANN Intralogistics developed its own robotic cell to serve as a bridge between the two worlds. A KUKA robot equipped with MechMind 3D vision technology handles the transfer: It identifies the delivered KLTs, automatically compensates for tolerances, and places the containers into the AutoStore bins with millimeter precision. Delivery is handled by AGILOX driverless transport vehicles.

In the same cell, the process runs in reverse: Containers are retrieved from storage, the correct parts are picked for production, and the empty KLTs return fully automatically. The result: a capacity of 23,000 containers, 55 KLT storages per hour, 24/7 operation without human intervention—and a guaranteed system availability of 98 percent, which, according to AutoStore monitoring, actually stands at 99.6 percent in practice.

“Our well-established system, featuring standard KLTs and AGV integration, had to be seamlessly integrated into the new AutoStore solution. HÖRMANN was the ideal partner, with the necessary expertise in robotics and software integration.”
Jonas Wilhelm, Logistics Project Manager, Siemens Rastatt

 

Conclusion: The question is not if, but when

Manufacturing companies that modernize their intralogistics often come to the same conclusion after the go-live: It worked without production stopping for a single day. Throughput increases, management gains planning certainty, and there’s enough space again.

Planning early gives you more flexibility: in system design, scheduling, and costs. The guide from HÖRMANN Intralogistics shows what an AutoStore warehouse system could look like in your facility—including a fit check, the four most common stumbling blocks, and the complete Siemens Rastatt case study.

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Autostore as a Production Buffer

White Paper: Autostore as a Production Buffer

This guide answers the questions that logistics planners and plant managers ask in real-world situations:

  • When is AutoStore suitable as a production buffer—and when is it not?
  • How does its operation differ from traditional small-parts applications?
  • What are the requirements for the control system (HiLIS WMS), interfaces, and cycle times?
  • What do completed projects demonstrate?
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