Client Background
Client: Horizon Home Retail Group
Industry: Mid-to-high-end furniture retail with integrated e-commerce fulfillment
Location: Cape Town, South Africa
Existing Warehouse Size: 1,800 m²
Current Warehouse Challenges
- Large SKU range with complex inventory structure (sofas, panel furniture, mattresses, and other bulky items)
- Clear height limited to 6.8 m, resulting in low storage utilization with traditional racking
- Low operational efficiency due to manual forklift handling
- High rates of stockouts and picking mistakes
- Heavy manual picking workload and strong dependence on labor
- Rapidly increasing e-commerce orders exceeding current fulfillment capacity
The Group plans to upgrade to an automated warehouse with a phased and cost-controlled investment approach, while ensuring system stability under South Africa’s frequent power fluctuations.
Selected Solution
Four-way Shuttle Storage System + Vertical Lifts + Integrated WCS/WMS Platform
Project Configuration
| Configuration Item | Specification |
|---|---|
| Total Warehouse Area | 1,800 m² |
| Racking Height | 6.5 m |
| Four-way Shuttles | 6 units |
| Vertical Lift Systems | 2 sets |
| Total Storage Locations | 2,400 bins (approx. 70% increase) |
| Max Load Capacity | 1.5 tons per pallet |
| Software | WMS, WCS, and task scheduling system with full API integration |
| Installation & Commissioning | 45 days |
| Training | 5 days (English & Chinese) |
Transformation Results
1) Warehouse Capacity Increased by 68%
Storage locations expanded from 1,420 to 2,400.
Four-way shuttles enable flexible horizontal and vertical movement, allowing narrow-aisle, high-density storage within the limited warehouse height.
2) Operational Efficiency Improved by 2.3×
| KPI | Before Upgrade | After Upgrade |
|---|---|---|
| Daily Inbound Volume | 380 pallets | 850 pallets |
| Daily Outbound Volume | 410 pallets | 960 pallets |
| Labor Requirement | 18 staff | 7 staff (11 saved) |
| Avg. Pallet Handling Time | 3.2 min | 1.1 min |
3) Operating Costs Reduced by 33%
Key contributors:
- Low-energy electric shuttle system
- Significant reduction in labor
- Intelligent scheduling minimizes waiting time and empty forklift travel
- Lower product damage rate (critical for scratch-sensitive furniture items)
4) Picking/Shipping Error Rate Reduced to 0.06
Powered by a fully digital workflow via WMS:
- Real-time inventory tracking
- Automated task generation
- Dynamic equipment dispatching
- End-to-end traceability of goods movement
The operation shifts from experience-based manual work to data-driven process control.
5) System Designed for Real South African Operating Condition
To address Eskom load shedding and grid instability:
- All shuttles return safely to docking points under UPS backup mode
- Software supports full fault-tolerant resume after power recovery
- Vertical lifts include mechanical buffers to prevent jamming during sudden outages
These measures ensure stable and reliable performance in local conditions.
Investment Return
- Total Investment: approx. USD 920,000
- Annual Labor Cost Savings: approx. USD 138,000
- Annual Reduction in Product Damage: approx. USD 32,000
- Additional Revenue Capacity: approx. 30% more outbound volume per year
Estimated Payback Period: 2.1 years
ROI: ~48%
