Modern third-party logistics providers, or 3PLs, are in a space-time bind. They face rising order volumes, SKU complexity, and service-level agreement variability. At the same time, 3PLs must also tackle static square footage, mounting labor costs, and constant onboarding/offboarding cycles. Traditional expansion isn’t a viable or sustainable solution, according to Rapyuta Robotics Inc.
The answer lies in rethinking infrastructure from horizontal sprawl to vertical intelligence, according to the Tokyo-based company.
This is where next-generation automated storage and retrieval systems (ASRS) come in. In particular, Rapyuta designs systems specifically for multi-client warehouse automation.
ASRS adoption has historically been slow in North America because of concerns around upfront costs and uncertain return on investment (ROI) timelines under short-term client contracts. However, that trend is changing. With labor shortages, longer contracts, and more modular automation now available, 3PLs are turning to ASRS to stay competitive and scale efficiently.
Why traditional 3PL operations struggle to scale
Why can’t 3PLs simply add more racks or people to meet growing demand? Rapyuta said this is because physical space and human labor don’t scale linearly with complexity. As 3PLs face increasing SKU diversity, tighter service-level agreements (SLAs), and seasonal volatility, the margin for inefficiency vanishes, it added.
The company cited key challenges, including:
- Space constraints in urban or brownfield distribution centers
- High labor costs and chronic labor shortages
- Inflexible physical zoning for clients
- Manual picking inefficiencies
- SKU variability and storage mismatches
- Client-specific rules for picking, packaging, and inventory visibility
- CapEx sensitivity due to thin margins and short-term client contracts
- Structural restrictions in leased warehouses—such as limits on floor anchoring, electrical upgrades, or modifying mezzanines
- Downtime during reconfiguration, even with modular systems
- These challenges compound as more clients and SKUs are added. Additionally, the risk of downtime becomes a critical concern.
While modern automated storage systems can achieve 97% to 99% uptime with proper maintenance, Rapyuta noted, 3PLs must invest in contingency planning, skilled technicians, and robust system support to avoid operational disruptions.
ASRS is a strategic solution for 3PL scale, says Rapyuta
A well-architected ASRS for 3PLs doesn’t just store and retrieve faster—it reorganizes warehouse logic around agility, density, and intelligence.
Rapyuta listed strategic benefits of ASRS for 3PLs:
- High-density, vertical storage that optimizes cubic space
- Dynamic bin-level logic for multi-client inventory
- Goods-to-person (G2P) workflows that eliminate walking
- Built-in support for FIFO (first in, first out), batch, and client-specific rules
- Real-time visibility for clients via dashboards and application programming interfaces (APIs)
- Phased, modular deployment to grow alongside client needs
- Flexibility to operate in leased and structurally limited spaces, thanks to anchorless, bolt-free designs
- Ability to conform around pillars, mezzanines, and fire shutters—making use of previously wasted space
Importantly, newer ASRSs support modularity and scalability—making it easier for 3PLs to adapt quickly to new client requirements, onboarding cycles, and seasonal surges. Some systems even allow for the temporary rental of robots during peak volumes, giving operators control without long-term overhead.
Not all ASRS platforms are designed for 3PL flexibility. Rapyuta asserted that its ASRS stands apart for its ability to address each of these challenges. The company did this using a combination of modular hardware, advanced AI, and logistics-centric software logic designed for dynamic, multi-client environments.
10 ways Rapyuta offers optimization through its ASRS
Rapyuta higlighted 10 strategies it uses to ensure its ASRS is designed for flexibility.
1. Maximize throughput without expanding space
- Vertical scalability up to seven or nine storage levels, utilizing full ceiling height of the warehouse
- Supports stacking up to 13 tiers (~38 ft.) to maximize cubic usage
- 80 mm (3.1 in.) thin robots to maximize aisle efficiency
- “N-deep” bin stacking enabled by robot group control to minimize aisle space
- Flexible bin configurations (tray, short, tall) to optimize slotting based on SKU size
- 2.5x greater storage efficiency compared to conventional shelving systems
For many 3PLs, maximizing cubic volume is essential for handling SKU growth while staying within the same facility footprint. ASRS makes it possible to store more SKUs in less space—without building out.
1A. Eliminate ‘dig time’ bottlenecks with direct bin access
Challenge: Dig time in traditional ASRS
In conventional cube-based systems, retrieving a specific bin often requires:
- Robots to move multiple bins out of the way because bins are stacked above one another
- Vertical and horizontal shuffling just to access a target bin
Result: High latency per pick, wasted robot cycles, and reduced throughput during peak load.
How Rapyuta ASRS eliminates dig time:
- Every bin is directly accessible: Rapyuta uses a racking system, not stacked bins. Each bin has a dedicated pick face, allowing direct retrieval without displacing others.
- Multi-robot, parallel retrieval: Robots fetch bins simultaneously from different zones—no waiting, no queuing.
- High-throughput with smart task allocation: Bin locations are optimized based on SKU velocity, with fast movers placed for quickest access. The system self-learns and reorganizes layouts.
- No congestion, no idle time: Multiple robots and ports ensure continuous, non-blocking flow, unlike bottleneck-prone cube systems.
This architecture ensures high throughput, especially critical during peak demand periods, Rapyuta said.
2. Deliver SLA-critical orders without manual reprioritization
- SLA-driven, rule-based prioritization for each client
- Dynamic task scheduling by a centralized software called rapyuta.io
- Real-time order orchestration ensuring time-critical picks without manual intervention
Tight SLAs are common in 3PL contracts, said the company. Automating prioritization helps meet those standards consistently, even in high-pressure environments.
3. Seamless client onboarding and offboarding
- Virtual zoning without needing physical layout changes
- Modular fiber-reinforced plastic (FRP) structure enables rapid expansion or reconfiguration
- Software interface allows client addition/removal in minutes
With increasing client turnover and short-term contracts, quick configuration changes are vital to minimizing downtime and maintaining profitability.
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4. Eliminate client space conflicts with virtual segmentation
- Shared storage grids logically segmented by client
- Dynamic bin allocation based on demand
- Full inventory isolation with pooled resource efficiency
This allows operators to handle multi-client inventory without dedicating hard infrastructure to each client.
5. Handle SKU size diversity with smart bin allocation
- Supports trays (110mm/4.3 in.), short bins (280mm/11 in.), and tall bins (460mm/18.1 in.)
- Real-time automated bin assignment based on SKU size/weight
- Dense, flexible storage for micro-SKUs to bulky items
ASRS systems must accommodate varied inventory. Hybrid designs that allow for both tote-based and pallet-based storage are increasingly necessary.
6. Execute error free picking
- Supports FIFO and batch-based picking rules
- Display navigation, motion capture monitoring, and finish button validation ensure accuracy
These features eliminate human error in picking and improve compliance—especially important for regulated industries or clients with strict audit trials.
7. Reduce labor dependency while improving accuracy
- Goods-to-person flow eliminates walking
- Light-guided picking sequences improve speed and accuracy
- Battery automation ensures continuous robot operation
Labor savings are among the most compelling arguments for ASRS. In many warehouses, automation reduces labor needs by up to two-thirds, enabling remaining workers to focus on higher-value tasks like exception handling or quality control.
8. Provide clients with real-time visibility and control
- Real-time inventory tracking with bin ID and QR code mapping
- Automated inbound, outbound, and inventory workflows
- Robot coordination using digital maps
- Centralized interface to monitor lifters, robots, and system health
Tight integration with warehouse management system (WMS) ensures that both operators and clients get real-time visibility—critical for modern SLAs, inventory accuracy, and responsive fulfillment.
9. Enable custom picking at the workstation level
- Client-specific picking prompts
- Visual and text-based guidance ensuring correct execution
- Accurate fulfillment even in multi-client, high-volume environments
This customization is essential when 3PLs serve a wide range of industries, each with unique handling requirements.
10. Prove ROI with built-in operational intelligence
- Dashboards track picks/hour, bin turnover, and error rates
- Data-backed ROI to validate system performance
- Phased deployment to manage CapEx and scale operations gradually
With labor cost savings, improved accuracy, and better space usage, ROI is increasingly achievable within just a few years. This helps 3PLs justify investments even with shorter client contracts or thinner margins.
Rapyuta takeaway: Rethink growth—not just layout
True 3PL scalability isn’t about expanding your floor plan—it’s about redefining how every cubic meter of your facility works, Rapyuta said.
Rapyuta ASRS delivers a platform that grows with your client base, SKU portfolio, and throughput, the company said. The ASRS can boost storage efficiency by 2.5 times without compromising agility or capital, it claimed.
If your warehouse strategy still relies on fixed layouts, static bins, or labor-heavy processes, it’s time to evolve. Because in today’s market, growth favors the vertically intelligent, not just the physically larger.
