Automated Storage Units for Singapore Businesses: What They Are and Why You Need One
Many Singapore businesses are running out of storage space — but not out of options.
Whether you operate a manufacturing shopfloor, a pharmaceutical dispensary, an e-commerce fulfilment operation, or a busy office, the instinct is often to rent more space. In Singapore, that comes at a significant cost.
Automated storage units offer a smarter alternative. By utilising vertical height rather than floor area, they allow businesses to dramatically increase storage capacity within the footprint they already have.
This guide explains what automated storage units are, the types available in Singapore, and how to choose the right solution for your business. For a broader overview of warehouse automation technologies, see Goshen’s warehouse automation systems guide.
What Are Automated Storage Units?
Automated storage units are compact, motorised systems that store and retrieve inventory automatically within a sealed enclosure.
Unlike traditional open racking or shelving, automated storage units bring items directly to the operator at an ergonomic access point — eliminating the need to walk aisles, climb ladders, or manually search through shelves.
They integrate storage hardware with inventory management software, providing real-time stock visibility and software-guided picking that reduces errors and improves retrieval speed.
Automated storage units are distinct from full-scale warehouse ASRS solutions in one important respect: they are designed to fit within an existing space — an office, a shopfloor, a storeroom, or a small warehouse — without structural modifications or facility expansion.
Types of Automated Storage Units Available in Singapore
Four main types of automated storage units are commonly deployed in Singapore business environments.
Vertical Carousel Storage Systems
A vertical carousel uses a continuous loop of carriers rotating on a vertical track, similar in principle to a Ferris wheel. When an item is needed, the carousel rotates to bring the correct carrier to the operator’s access point.
- Best for: offices, pharmacies, spare parts, light manufacturing
- Space saving: up to 80% of floor space compared to open shelving
- Retrieval time: 10 to 30 seconds
- Entry-level cost: lower than VLMs — a strong starting point for SMEs
Vertical Lift Modules (VLM)
A VLM uses an elevator-style extractor between two columns of trays to retrieve and present individual trays at an ergonomic access window. The system automatically measures tray height and adjusts spacing dynamically to maximise density.
- Best for: operations with wide variety in item sizes and weights
- Space saving: up to 85% of floor space
- Load capacity: up to 1,000 kg per tray on commercial-grade units
- Throughput: 125 to 350 items per hour
Mini-Load Automated Storage and Retrieval Systems
A mini-load ASRS uses a crane-mounted retrieval device running on rails within a dense rack structure to store and retrieve small totes, bins, or trays. It is part of the broader family of automated storage and retrieval systems and is suited to operations requiring high throughput across a large number of SKUs.
- Best for: e-commerce, pharmaceutical dispensing, high-SKU retail
- Space saving: high — eliminates wide aisle requirements
- Throughput: significantly higher than carousel or VLM solutions
- Investment level: higher — suited to growing SMEs and mid-market operations
Horizontal Carousel Systems
A horizontal carousel uses a rotating loop of shelving or carriers on a horizontal track. Less common in Singapore due to their larger floor footprint, they are best suited to operations storing flat, lightweight items such as garments or document files.
- Best for: flat item storage, garments, document management
- Consideration: requires more floor area than vertical alternatives
For most Singapore SMEs with space constraints, vertical carousel systems and VLMs offer the most practical and cost-effective starting point.
Automated Storage Unit Comparison
Do Automated Storage Units Make Sense for Singapore SMEs?
The short answer is yes — and more so now than ever.
Singapore’s industrial rental market remains one of the most expensive in the Asia-Pacific region. Businesses paying between S$3.50 and S$5.00 per square foot per month for industrial or commercial space have a strong financial incentive to maximise what they already occupy.
Automated storage units address the SME storage problem directly: you do not need a large warehouse, a major fit-out, or a long implementation timeline. A vertical carousel or VLM can be installed in an existing storeroom, office, or shopfloor in as little as one to three days.
SMEs most likely to benefit include:
- E-commerce businesses managing growing SKU counts in limited warehouse space
- Manufacturers storing components, spare parts, or work-in-progress materials
- Pharmacies and healthcare providers managing high-accuracy inventory requirements
- Offices with significant document, equipment, or consumable storage needs
- Retailers managing high-turnover stock in constrained back-of-house environments
How Much Floor Space Can You Recover?
The floor space recovery potential of automated storage units is substantial.
Vertical Carousel Storage Systems
By utilising ceiling height instead of floor area, vertical carousels can recover up to 80% of the floor space previously used by open shelving or racking. A unit occupying 2 square metres of floor space can replace 10 to 12 metres of traditional shelving.
Vertical Lift Modules
VLMs achieve up to 85% floor space savings through dynamic tray spacing — the system automatically stores trays as close as 2.5 cm apart, eliminating the fixed shelf gaps required in manual storage.
For a Singapore business paying S$4.00 per square foot per month for industrial space, recovering 10 square metres of floor space translates to approximately S$4,300 per year in avoided rental costs — before accounting for labour savings and throughput improvements.
Cost of Automated Storage Units in Singapore
Investment levels vary significantly depending on the type of system, configuration, and software requirements.
Vertical Carousel Storage Systems
Generally the most affordable automated storage unit type, making them accessible for SMEs evaluating automation for the first time. Entry-level units for light industrial or office use represent a lower upfront commitment than VLMs or ASRS.
Vertical Lift Modules (VLMs)
A higher investment than vertical carousels, reflecting their greater storage density, payload capacity, and speed. Often justified by the higher value of the inventory stored and the faster throughput they enable.
Mini-Load ASRS
The most significant investment among the three unit types. Best evaluated through a full ROI analysis that accounts for labour savings, throughput improvements, and space recovery over a three to five year period.
All three system types may be eligible for Singapore government grant support, which can substantially reduce the net cost of implementation.
Singapore Government Grants for Automated Storage Units
Singapore businesses implementing automated storage units may be eligible for the following government support schemes.
| Grant | What It Covers | Support Level |
|---|---|---|
| Enterprise Development Grant (EDG) | Automation, technology adoption, and operational efficiency projects | Up to 50% of qualifying project costs |
| Productivity Solutions Grant (PSG) | Pre-approved automation and IT solutions | Up to 50% of solution cost |
| SkillsFuture Enterprise Credit (SFEC) | Workforce upskilling for automation transition | Up to S$10,000 in additional credits |
Grant eligibility and funding caps are subject to change. Businesses should confirm current terms with Enterprise Singapore or an accredited advisor before proceeding.
How to Choose the Right Automated Storage Unit for Your Business
Selecting the most suitable automated storage unit comes down to five key considerations.
1. Inventory Profile
Assess the size, weight, and variability of the items you need to store. Vertical carousels suit similar-sized, lightweight items. VLMs handle a wider range of sizes and weights. Mini-load ASRS is best for large numbers of small bins or totes.
2. Available Space
Measure your floor area and ceiling height carefully. Most vertical carousel and VLM units require a minimum ceiling clearance of 3 to 4 metres above the unit, plus additional clearance for installation and maintenance.
3. Throughput Requirements
Consider how many items you need to store and retrieve per hour. A vertical carousel is sufficient for lower-throughput environments. Higher-volume operations should evaluate VLMs or mini-load ASRS to ensure the system meets peak demand.
4. Software Integration
Determine whether the automated storage unit needs to integrate with an existing WMS, ERP, or inventory management system. Most units include standalone software, but seamless integration with existing platforms reduces manual data entry and improves accuracy.
5. Budget and Grant Eligibility
Establish a clear budget range and confirm which government grants apply to your project before engaging suppliers. Grant support can shift the cost-benefit calculation significantly, particularly for SMEs.
FAQ: Autonomous Mobile Robots in Singapore
What is the difference between an automated storage unit and an ASRS?
Automated storage units such as vertical carousels and VLMs are compact, standalone systems designed to fit within an existing space. A full-scale automated storage and retrieval system (ASRS) typically refers to larger warehouse-wide infrastructure such as unit-load cranes or shuttle systems. Automated storage units are the more accessible option for SMEs.
How much floor space can an automated storage unit save?
Depending on the system type, businesses can recover 75% to 85% of the floor space previously occupied by open shelving or racking — a significant saving in Singapore’s high-cost industrial property market.
Are automated storage units suitable for office environments?
Yes. Vertical carousels in particular are widely used in offices, pharmacies, and administrative environments to replace filing cabinets and open shelving for documents, supplies, and equipment.
How long does installation take?
Most vertical carousel and VLM installations can be completed in one to three days with minimal disruption to surrounding operations. Larger mini-load ASRS installations require more time for rack assembly and system integration.
What government grants are available for automated storage units in Singapore?
The Enterprise Development Grant (EDG) and Productivity Solutions Grant (PSG) may cover up to 50% of qualifying costs. The SkillsFuture Enterprise Credit (SFEC) can provide additional support for workforce upskilling. Confirm current eligibility with Enterprise Singapore.
Conclusion
Automated storage units offer Singapore businesses a practical, space-efficient, and cost-effective way to address growing inventory challenges without expanding their physical footprint.
Whether you are an SME managing a tight shopfloor, a healthcare provider requiring accurate inventory control, or a growing e-commerce operation needing faster order fulfilment, there is an automated storage unit suited to your requirements.
With government grant support available to offset up to 50% of implementation costs, the financial case for investing in automated storage has never been stronger for Singapore businesses.
To identify the right automated storage unit for your operation, explore Goshen’s robotics and automation services or contact the team for an obligation-free assessment.