Project Background: Driving Warehouse Transformation Through Smart Manufacturing
As manufacturing continues to move toward digitalization and intelligent production, warehouse logistics is becoming more than a storage function. It is increasingly serving as a critical connection point between production, material supply, inventory management and final delivery.
To meet growing demand in the domestic market, a leading global transmission and control solutions manufacturer invested more than RMB 1 billion in an intelligent assembly center in Tianjin. The facility was designed as an important manufacturing and logistics hub in the Asia-Pacific region and as a model for intelligent manufacturing in China.
Within the Tianjin intelligent assembly center, China JSSL Company participated in the planning, design and system integration of a large-scale automated warehouse project covering more than 36,000 square meters. The solution combines high-density storage, automated material handling, intelligent scheduling and digital warehouse management to create a smart logistics hub connecting multiple production processes.
The project demonstrates how warehouse automation and system integration can support the digital transformation of discrete manufacturing.
(Manufacturing Warehouse Automation)
Warehouse Challenges: From Traditional Storage to Intelligent Logistics
Before the upgrade, the traditional floor-storage model faced several operational limitations.
Warehouse space utilization was below 35%, while material handling, sorting and inventory management relied heavily on manual operations. Low storage density limited the available capacity, while manual processes increased the risk of picking errors, incorrect shipments and inventory discrepancies.
At the same time, warehouse information was not sufficiently connected with production and enterprise management systems. Delayed inventory updates made it difficult to match production planning with real-time material availability.
These challenges created a clear need for a more integrated automated warehouse system capable of connecting storage, production and distribution.
Project Overview: A Smart Logistics Hub Inside the Factory
The Tianjin intelligent assembly center covers nearly 60,000 square meters, with a total building area of approximately 75,000 square meters. The smart warehouse system occupies more than 36,000 square meters.
The automated storage system is divided into two major areas:
Semi-Finished Goods Automated Warehouse: 24,680 storage positions
Finished Goods Automated Warehouse: 4,510 storage positions
Both warehouse areas adopt multi-level layouts to make full use of vertical space and connect different production floors.
The system integrates:
Stacker cranes
Pallet conveyor systems
RGV systems
AGVs
EMS transportation
WMS
WCS
MES
SAP
AGV scheduling systems
Energy management solutions
Through deep integration between hardware and software, the warehouse synchronizes material flow and information flow across receiving, storage, picking, replenishment, production and delivery.
(High-Density Storage System)
Semi-Finished Goods Warehouse: Directly Connected to Production
The semi-finished goods automated warehouse is positioned between production areas on the first and second floors.
It consists of an eight-aisle storage zone and a two-aisle storage zone, with a combined capacity of 24,680 storage positions. Different rack heights and storage levels are used to accommodate different semi-finished product specifications.
The first floor includes receiving, inspection, repacking, storage, inbound and outbound operations, as well as production replenishment and picking areas.
Depending on the material and process requirements, the system uses combinations such as:
Pallet Conveyor + EMS + AGV
or
Pallet Conveyor + Forklift
This flexible structure allows automated logistics while maintaining appropriate manual intervention points when required.
The second floor focuses on semi-finished goods inbound and outbound operations and empty pallet or container management. Its logistics architecture combines pallet conveyors, RGVs and AGVs.
A dedicated tooling-board transportation system was also introduced. The double-layer design supports multiple picking positions, mixed-SKU picking from the same pallet and tooling-board position tracking, enabling more flexible material preparation for production.
(Automated Pallet Storage)
Finished Goods Automated Warehouse: Connecting Production With Delivery
The finished goods warehouse is designed around the principle of short material routes and efficient production-to-delivery connections.
The system uses five storage aisles equipped with five stacker cranes and provides 4,510 storage positions, including high positions, low positions and cantilever storage positions for different product sizes.
The second floor connects directly with the coating production area. Finished products are transferred through overhead transportation equipment to designated unloading points, where pallets are prepared and identified through RFID before entering the automated storage process.
On the first floor, the finished goods warehouse connects with packaging operations through stacker cranes, pallet conveyors and RGV systems.
Two shuttle vehicles serve five packaging lines. Under normal operation, they work in designated zones. If one shuttle becomes unavailable, the other can take over the entire line system, providing redundancy and improving warehouse system availability.
Intelligent Material Handling: Building a Multi-Level Logistics Network
One of the project's key characteristics is its integration of multiple transportation technologies.
Stacker cranes provide high-density vertical storage and retrieval. RGVs handle horizontal pallet transportation between different areas. AGVs provide flexible material transportation between warehouse and production zones, while EMS systems support efficient transportation across production floors.
This combination creates a three-dimensional material handling network rather than an isolated automated warehouse.
The logistics system can therefore support different workflows, including:
Inbound → Storage → Production Replenishment → Picking → Packaging → Finished Goods Storage → Outbound
The result is a closed-loop logistics process connecting warehouse operations with manufacturing.
WMS and WCS Integration: Synchronizing Data and Material Flow
At the software level, the project uses WMS and WCS as core warehouse management and control platforms.
The systems are integrated with MES, SAP, AGV scheduling and other enterprise systems, allowing inventory information, production requirements and transportation tasks to be synchronized.
WMS manages warehouse inventory and task allocation, while WCS coordinates equipment such as stacker cranes, AGVs, RGVs, EMS and conveyors.
The integrated architecture enables:
Real-time inventory visibility
FIFO inventory management
Automated storage and retrieval
Intelligent replenishment
Production-oriented material scheduling
Equipment coordination
Full-process traceability
Exception management
Production and warehouse data synchronization
This approach transforms the warehouse from an independent storage area into an intelligent material supply center for the factory.
(AGV Material Handling)
Customized Storage Design for Different Products
A major innovation of the project is its customized storage-position configuration.
Instead of relying on a single standardized rack configuration, the system combines high storage positions, low storage positions and cantilever positions according to different product dimensions.
This configuration makes it possible to accommodate semi-finished products, finished transmission equipment and irregular components within the same overall warehouse architecture.
Compared with traditional floor storage, vertical high-density storage significantly improves space utilization while increasing storage capacity within the existing factory footprint.
Green Warehouse Automation and Energy Management
Energy efficiency is another important part of the system design.
The project uses energy-efficient drive technologies and energy management solutions across automated equipment. Stacker cranes incorporate energy recovery and contactless power technologies, while hybrid AGVs combine contactless power supply with supercapacitor technology.
These technologies support continuous material transportation while reducing unnecessary charging interruptions and equipment energy consumption.
The project therefore combines warehouse automation, intelligent material handling and green manufacturing rather than treating energy efficiency as a separate function.
Flexible Operations and Exception Handling
Industrial warehouses need to remain operational even when abnormal conditions occur.
The system therefore includes dedicated exception-handling processes for issues such as pallet dimension deviations, barcode problems, product mismatches and quality inspection failures.
Visual indicators help operators quickly identify abnormal conditions, while designated processing stations allow materials to be corrected and returned to the normal logistics flow.
Redundant shuttle configuration also provides additional operational resilience. When one shuttle is unavailable, another can temporarily handle the required transportation tasks, reducing the impact of equipment failures on production.
(Electric Monorail System)
Project Results: From Storage Optimization to Factory-Wide Coordination
Since the intelligent assembly center began operation in 2024, the smart warehouse project has achieved the intended operational goals.
The main improvements include:
Higher warehouse space utilization
Increased storage density
More efficient inbound and outbound operations
Reduced manual material handling
Improved inventory accuracy
Lower labor requirements
Reduced equipment energy consumption
Better coordination between production and warehouse operations
Improved order fulfillment and delivery reliability
The project reportedly increased space utilization from below 35% to a significantly higher level and reduced labor costs by approximately 30%.
More importantly, the warehouse is no longer an isolated storage facility. Through WMS, WCS, MES, SAP, AGV scheduling and automated material handling equipment, it has become an integrated logistics platform supporting the complete manufacturing process.
Conclusion: A Replicable Model for Discrete Manufacturing Automation
The Tianjin smart warehouse project demonstrates how China warehouse automation solutions can combine high-density storage, intelligent material handling, software integration and green technologies within a complex manufacturing environment.
By integrating stacker cranes, RGVs, AGVs, EMS, conveyors, WMS and WCS with production and enterprise systems, China JSSL Company provides system integration capabilities that connect warehouse operations with manufacturing processes.
For discrete manufacturing companies facing limited warehouse space, growing production volumes and increasingly complex material flows, an integrated automated warehouse system can provide more than higher storage density. It can become a digital logistics infrastructure that coordinates inventory, equipment, production and delivery.
This project provides a practical reference for manufacturers seeking to upgrade traditional warehouses into intelligent, connected and more sustainable logistics systems.
