Compiled by Eamonn Ryan
When it comes to selecting racking systems for refrigerated warehouses, the primary concern is space utilisation.
Racking and shelving is a competitive market in South Africa. Local companies are known for manufacturing their range of mobile racking systems. There is also a host of imported systems from German companies that supply mobile racking solutions in South Africa, and other distributors on behalf of Norwegian companies among others. The reliance on imports can affect the pricing and availability of racking systems in the region.
Innovations in racking systems for refrigerated warehouses
Shawn Gray, senior sales executive at Acrow notes that mobile racking systems are increasingly favoured due to their ability to maximise the footprint of available space, providing high-density storage solutions. These systems allow facilities to store more products without compromising safety or accessibility.
While the principles of effective racking are largely similar across industries, Gray acknowledges that specific considerations arise in refrigerated environments: “Factors such as temperature control, airflow, and the types of goods stored necessitate tailored solutions. Understanding the nuances of refrigeration can inform better racking decisions, ultimately leading to improved efficiency and safety in cold storage operations.”
Efficient racking systems are crucial for maximising space and ensuring safety. Gray highlights the importance of mobile racking, pallet shuttle racking, and pallet racking, as well as the unique landscape of automation in South Africa.
According to Gray, mobile racking is the most prevalent type of racking used in cold stores in South Africa today. “This system allows for the full utilisation of available space, which is vital given the high costs associated with constructing cold storage facilities. Alongside mobile racking, pallet shuttle racking has gained popularity, especially in environments where temperature control is critical, such as ripening rooms in the fruit industry. These innovations not only enhance storage capacity but also improve overall operational efficiency.”
One of the standout features of Acrow is its in-house installation teams. Gray emphasises that Acrow employs 12 full-time installation teams, all trained internally and equipped with the necessary safety certifications. This hands-on approach ensures that installations are carried out with a high level of expertise and compliance with safety standards.
Automation is a topic of growing interest in the industry. Gray notes that while fully automated systems are becoming standard in Europe and the US, South Africa’s reliance on cost-effective labour means that manual systems continue to dominate domestically.
He outlines three categories of racking systems as being static, semi-automated, and fully automated.
Semi-automated systems, such as mobile racking, still require human involvement, particularly in driving forklifts and managing pallet movements within the cold room. In contrast, fully automated systems, often referred to as ‘dark warehouses’, utilise cranes and minimise human involvement, except for the final loading of products.
He points out that mobile racking systems can significantly enhance storage efficiency in various industries, especially fast-moving consumer goods (FMCG) which require manual interventions. “In such settings, companies often opt for traditional pallet racking or picking systems that incorporate conveyor systems to streamline operations. By converting static racking to mobile, businesses can adapt to changing inventory needs without the extensive costs associated with expanding their warehouse footprint.”
Gray stresses the importance of planning for future expansion when initially designing warehouse layouts. As the demand for efficient storage solutions continues to grow, businesses must remain agile to adapt to changing market needs.
While he acknowledges that there are emerging fully automated solutions in South Africa, such as at one clothing facility, he notes that the cold chain industry still heavily relies on manual labour. “South Africa’s relatively low labour costs make it less urgent for companies to transition to fully automated systems. Many South African warehouses still employ large teams—sometimes 80 to 90 people—highlighting a preference for static and semi-automated systems that remain economically viable.”
The importance of maintenance in racking systems
Gray mentions the critical role of maintenance in ensuring safety within cold storage environments. “Acrow emphasises the necessity of service level agreements with clients to facilitate regular inspections and maintenance. According to regulations, racking systems must be inspected at least once or twice a year, with compliance certificates issued afterward.”
Acrow has an in-house maintenance team that conducts these inspections and addresses any identified issues. Gray explains that regular assessments are vital because forklift damage is common in warehouses. “The goal is to prevent accidents and ensure that any damage is promptly addressed, either through repairs or immediate replacements when necessary,” he adds.
Designing for future expansion
Addressing concerns about high warehouse ceilings’ impact on racking stability, Gray explains that rack-supported mezzanines are often used to maximise vertical space. These structures can support shelving at various levels, making it easier to utilise taller warehouses effectively.
When constructing new facilities, Gray emphasises the importance of planning for future growth. He provides the example of a project for a clothing retailer, where the design included a rack-supported mezzanine intended to accommodate additional tiers in the future. “This foresight allows companies to expand their operations without needing to relocate or undergo major renovations, which can be costly and disruptive.”
On the other hand, Gray notes that many companies lease their facilities for a limited time, typically five to ten years. This short-term approach discourages businesses from planning for scalability, or ensuring their racking solutions can adapt to anticipated growth. Gray acknowledges the challenges in convincing clients to adopt a long-term perspective on their racking systems. “Many companies operate under budget constraints, focusing on immediate capital expenditure rather than considering the full lifecycle cost of their investments. However, larger companies with deeper resources are more receptive to discussions about automation and advanced solutions. International companies entering the South African market in particular tend to recognise the long-term value of robust racking systems, and are often willing to invest more for a sustainable solution.”
Acrow’s racking systems are designed with longevity in mind, offering guarantees of up to 25 years, which can appeal to clients looking for reliability and value over time.
Pros and cons of warehouse automation in the refrigerated sector
At the 2024 Cold Chain Refrigeration, Logistics, and Technology Summit, Fred Albrecht, CEO of Logistics Systems Engineering (LSE), addressed the complex landscape of warehouse automation in the refrigerated sector. His presentation, titled ‘Pros and cons of warehouse automation in the refrigerated sector’, shed light on the necessity of strategic planning and phased implementation to control costs effectively.
Albrecht underscores the dual-edged nature of automation, pointing out both its potential rewards and pitfalls. “The real challenge is mastering the effective use of automation,” he explains, identifying it as a vital catalyst for operational efficiency. He urged attendees to regard automation as a strategic priority rather than just a technological enhancement.
Emphasising the need to align automation initiatives with broader business goals, Albrecht states, “It’s essential to pinpoint what matters most for your organisation.” He also discusses the specific hurdles faced in cold chain logistics, particularly the crucial need for temperature control to ensure the integrity of perishable goods. “Relying on manual processes in the traditional cold chain often leads to inefficiencies and inflated costs.” Albrecht advocates for the comprehensive integration of automated systems in every aspect of the cold chain, from storage to control mechanisms, as a solution to these ongoing challenges.
Highlighting the impact of cutting-edge technologies, he remarks: “Innovations such as IoT sensors and blockchain are revolutionising operational efficiency and reliability, providing essential tools for real-time monitoring, predictive maintenance, and enhanced warehouse performance.”
“Automation isn’t just about efficiency; it’s about driving value throughout the supply chain. I urge businesses to adopt a forward-thinking approach and leverage technological advancements to stay competitive in an evolving market landscape.
“Automation streamlines processes, reduces errors, and enhances throughput, thereby improving overall efficiency in warehouse management. Moreover, it helps in optimising space utilisation, which is crucial in large-scale warehouse environments, and ensures safety for both products and personnel—a crucial factor in warehouse operations. Efficiency and reduced labour costs are therefore the obvious benefits.
“IoT-enabled devices can enhance real-time monitoring and data analytics in warehouse management, thereby enabling more informed decision-making and proactive maintenance strategies,” he suggests.
Albrecht highlights efficient maintenance as a significant advantage of automated systems. “This capability minimises downtime and ensures continuous operation, critical for meeting customer demands without interruption. Maintenance complexity is another challenge, particularly concerning the specialised maintenance required for automated systems. Despite advancements, ensuring these systems operate at peak efficiency demands significant attention and resources.”
However, alongside these benefits come certain challenges. Albrecht points out that automation requires significant upfront investment and a robust technological infrastructure. “The initial costs can be substantial, and there’s a critical need for ongoing maintenance and upgrades. Finding and retaining skilled workers remains a persistent challenge, so it is important to invest in education and training to equip the workforce with the necessary skills to operate and maintain automated systems effectively.”
Albrecht identifies concerns of job displacement as a significant issue. “While automation can create efficiencies, it also displaces jobs. Consequently, it is imperative to implement proactive measures to educate and upskill the workforce, aligning with the evolving demands of automated warehouse environments.
“Such investment in education and training can empower the workforce to adapt to technological advancements. By nurturing skilled talent, businesses can bridge the skills gap and drive sustainable growth in automated industries. Furthermore, there is real difficulty in finding skilled workers willing to work in demanding warehouse environments. Retaining skilled staff is therefore as challenging as finding them, given shifting preferences among newer generations entering the workforce.”
Embracing knowledge and innovation
Albrecht describes the potential impact of automated systems on space utilisation, saying he has seen companies go into business rescue due to storage space shortages. “Automating warehouse processes can optimise space utilisation efficiently, converting previously underutilised areas into productive storage zones.”
Discussing cost implications, Albrecht emphasises the financial benefits of reduced labour costs associated with automation. “By replacing manual tasks with automated processes, businesses can streamline operations and allocate resources more efficiently.”
Efficiency stems from accuracy in automated systems in contrast to potential errors in manual operations. “Even well-trained staff can make mistakes due to fatigue or environmental factors. Automation mitigates these risks, enhancing accuracy and minimising errors in product handling and order fulfillment.”
Regarding scalability and design flexibility, Albrecht cites recent project successes where modular automation solutions were implemented. “Modular systems allow for phased implementation and scalability. Businesses can adapt these systems incrementally, aligning investments with operational growth and evolving customer demands.”
Safety remains a key priority: “Automated systems improve workplace safety by reducing accidents and injuries. This enhancement not only protects personnel but also safeguards assets and equipment within the warehouse environment.”
Racking and shelving solutions for refrigerated warehouses
James Cunningham, managing director of Barpro Storage SA, emphasises that the type of racking selected hinges on the warehouse environment—whether it’s a freezer, chiller, or ambient space. Freezers and chillers involve significant construction costs and specific operational needs. “Considerations like fire regulations and the feasibility of in-rack sprinklers are vital,” he notes. The characteristics of the products being stored also play a crucial role. Questions such as the number of stock keeping units (SKUs), the necessity for strict stock rotation, whether products are palletised, and the need for case picking before dispatch must all be addressed. Cunningham recalls his experiences as a cold store manager, where he had to organise containers of frozen fish in reverse order of manufacture—oldest stock nearest to the doors—an arduous task without specialised racking like mobile systems.
In ambient warehouses, fixed selective racking, or APR, is typically preferred, while freezers often necessitate more complex solutions, combining mobile systems with mezzanine picking floors to maximise space and maintain product temperatures.
Cunningham warns that decisions regarding racking should not be an afterthought during warehouse construction. He has witnessed scenarios where a mere increase in ceiling height by 500mm could enhance storage capacity by 20%. “Storage capacity and related requirements should dictate warehouse design,” he advises.
Retrofitting racking systems
Some racking systems are more amenable to retrofitting than others. Cunningham notes that while mobile racking can be retrofitted successfully, it usually requires replacing the existing floor or installing rails. Depending on the scale, retrofitting can take as little as five weeks.
He typically advises clients to keep spare parts on-site to mitigate long lead times, which can arise due to low volume orders. While Barpro assists with maintenance and spare parts, Cunningham cautions against clients attempting repairs themselves. “Many clients underestimate the importance of maintenance. There is a general lack of education regarding racking safety among warehouse staff,” he states. To address this, Barpro conducts training courses to raise awareness of racking safety.
Damage to racking, especially in freezers, can go unnoticed for extended periods, potentially leading to severe accidents. “Currently, the understanding of racking maintenance is inadequate. Barpro is committed to promoting safety inspections,” he explains. A SEMA-approved racking inspector is available to assist customers with racking assessments.
“In South Africa, it’s estimated that 80 to 90% of warehouses neglect regular inspections and lack the knowledge to identify problems,” he say
As storage demands increase, the heights of cold storage facilities have risen, making rack safety even more critical. Cunningham highlights the risks associated with pallet construction, noting that flimsy designs can pose significant dangers, especially when stored at greater heights. The trend toward smaller pallets to optimise container space can compromise safety, as they may not fit securely in traditional racking systems.
Automated storage systems, initially popularised in labour-scarce regions like Japan, have since spread to various parts of the world, although their high costs and specialised maintenance requirements can be barriers. “In South Africa, the trend towards full automation has slowed, but semi-automated solutions like mobile racking provide a balance,” he explains.\
Selecting the appropriate racking system depends largely on the scale of operations. A warehouse with a modest height may not benefit from mobile racking, while taller facilities with greater storage needs might find it invaluable. Cunningham recounts instances where mobile systems have effectively doubled storage capacity.
Reflecting on advancements in the industry, he recalls how initial racking installations significantly boosted productivity in the past. Today, replacing fixed racking with mobile systems can similarly enhance capacity. The financial return on investment for mobile racking varies based on specific circumstances; for instance, a poultry company discovered they could achieve the same storage increase with a retrofit rather than constructing a new facility.
Cunningham advises clients planning cold storage facilities to incorporate mobile rails during initial construction, even if static racking is installed initially. Retrofitting rails later poses considerable challenges as storage needs evolve.
Vertical lifting installation
The first South African Gonvarri Tornado 9th generation Vertical Lifting Module (VLM) was recently designed and installed at ACDC Dynamics’ (ACDC) Edenvale, Gauteng, warehouse from Logistics Systems Engineering (LSE). It is an ultra-fast, virtually noiseless, computer-controlled storage and transfer lift. Using minimal floor space, this innovative storage system automatically optimises loaded goods on trays, substantially increasing picking rates while offering security on high-risk items.
“Only once it was installed and operational did we realise the machine’s speed and versatility, a definitive advantage compared to conventional VLMs, enabling us to serve our customers better. The capacity from LSE’s VLM allows us to increase productivity in storing and picking,” says ACDC CEO, Mario Maio. The Tornado VLM, which is 12.1m high, carries the same quantity as four competitor VLMs currently in our warehouse – and is close to three times faster. The technology and features incorporated into the Gonvarri Tornado VLM are beyond any other solution we have experienced or reviewed,” he adds.