Optimizing a Specialty Retail DC with Scalable Automation Solutions

Drew Ruether | 8 January 2025

As retail e-commerce continues to evolve, the pressure to adapt and scale efficiently has never been greater. Companies must meet increasing consumer demand while grappling with real estate constraints, workforce shortages, and fluctuating order volumes. Flexibility is critical in an industry where fast, efficient delivery can make or break customer loyalty.

For one leading specialty retailer, keeping up with this dynamic environment required a quick fix and a long-term growth strategy. Since 2014, their partnership with Bastian Solutions has helped them stay ahead of these challenges. From optimizing their distribution center (DC) to managing the complexities of fulfillment and seasonal demand, Bastian provided the right mix of expertise and technology to help them scale without unnecessary overhead.

The Challenge: Expanding Without a Building Expansion

In 2014, this U.S.-based specialty retailer was at a crossroads. Their order volumes were surging, but their facility space was capped. Plans to expand their distribution center to provide space for more static racking were postponed, leaving them to manage growing SKU counts and order volumes within the same footprint. To stay competitive, they needed to streamline operations and increase throughput—but without the cost and time of a physical expansion.

That’s when Bastian Solutions proposed an automation strategy built around AutoStore, a flexible, space-efficient system designed to maximize existing real estate. This solution would address the retailer’s immediate needs and prepare them for the future.

Maximizing Space and Efficiency with Scalable Automation

AutoStore is an innovative, space-efficient goods-to-person automated storage and retrieval system (ASRS) that maximizes warehouse space by stacking bins vertically in a dense grid. Robots travel on the top layer, retrieving bins as needed. The system offers significant advantages, including up to 60% space savings, quick scalability, and reduced operational downtime. AutoStore’s high performance and flexibility are ideal for businesses facing fluctuating order volumes. It provides a highly configurable solution that can easily integrate with other picking and conveying technologies for optimized fulfillment.

The Solution: AutoStore Goods to Person System

In the spring of 2015, Bastian implemented the AutoStore system, integrating 90,000 bins, 70 R5 robots, 10 carousel picking ports to optimize the retailer’s storage, picking, and replenishment processes. With this solution, the distributor was able to maintain the size of their facility by increasing storage density and reducing the required number of employees to perform picking and replenishment tasks by 30 percent. What made this system invaluable was its ability to scale effortlessly—since installation, the DC has undergone six expansions while maintaining efficient operations. Beyond this, Bastian incorporated custom conveyor systems, exception handling, and Exacta WES software to enhance productivity. AutoStore’s modular design allowed for easy expansion, accommodating the retailer’s growing SKU count and order volume.

The Expansion: Building for the Future Without Overhead

Fast forward eight years, and the retailer is still growing. Their building expansion is now complete, with the capacity to sustain an additional ten years of forecasted growth. The ability to scale their operations quickly without adding significant overhead has been critical. AutoStore has the ability to grow large enough to support up to 450,000 bins, with space to add more ports, robots to match the anticipated surge in order volume.

This future-proofing was possible because of the flexibility inherent in Bastian’s automation solution. Rather than investing in unnecessary square footage or staffing increases, the retailer maximized their current space, improving efficiency while keeping overhead low.

The Results: Operational Success and Future Expansion

Since implementing AutoStore and expanding its distribution capabilities, this retailer now handles:

• Up to 75,000 units per day during peak seasons, with plans to scale up to 100,000 units per day in the near future.
• 15,000-19,000 lines and 8,000-11,000 orders daily, depending on seasonal demand.

Their ability to continue growing while maintaining operational efficiency has kept them competitive in a crowded market. As they prepare for future expansions, Bastian remains a trusted partner who helps them navigate the complexities of automation and scalability.

What Sets Bastian Solutions Apart

As a material handling automation integrator, Bastian Solutions isn’t tied to a single brand or manufacturer. This flexibility allows them to design customized solutions for their customers' needs.

Bastian’s customer-first approach means they take the time to understand the intricacies of each operation, offering solutions that work today and scale for tomorrow. Their expertise in integrating various automation technologies makes them the ideal partner for businesses looking to stay agile in a rapidly changing market.

Tailoring technology to your specific needs can make all the difference in boosting efficiency and scaling your business. Reach out to a Bastian Solutions engineer today to discover how custom automation can transform your facility and keep you ahead of the competition.

Author: Drew Ruether