VietPOS Rack: 3 successful automated warehouse projects at manufacturing plants in Vietnam

The AS/RS (Automated Storage & Retrieval System) is an automated storage and retrieval technology designed to optimize warehouse space, increase picking speed, and reduce errors. In Vietnam, this technology is being widely deployed in manufacturing plants to improve operational efficiency and control costs. VietPOS Rack, the warehouse technology member of Việt Đức Trí Group, has just completed 3 large-scale automated warehouse projects at Vietnamese manufacturing plants, delivering results that exceeded expectations.

Project 1: Tân Phát Electronics Factory (HCMC) — 8,000m² 3-Tier AS/RS Warehouse

Tân Phát Factory is an electronic component supplier for leading technology corporations in Southeast Asia. Before deploying the automated warehouse system, they managed an 8,000m² warehouse using manual methods, which caused many challenges regarding performance and labor safety.

Customer: Tân Phát Factory | Industry: Electronic component manufacturing | Scale: 500+ workers | Location: District 9 Industrial Park, HCMC

Customer Problems

• Slow Picking: Average time to find and pick components from the warehouse was 18-25 minutes/order, causing bottlenecks in the production line.
• High Error Rate: Picking error rate reached 8-12%/week, leading to a 35% annual increase in quality inspection costs.
• Inefficient Space: The warehouse used only 42% of actual capacity due to suboptimal layout and manual inventory management.
• High Labor Costs: Required 28 warehouse staff per daily shift, with total salary + benefits of 450 million VND/year.

Solution Deployed by VietPOS Rack

1. 3-Tier AS/RS System Design: VietPOS Rack consulted and designed a 3-tier automated system 12m high, using 1,200 pallet positions, optimizing 95% of warehouse capacity. The system was integrated with smart Warehouse Management Software (WMS) for real-time inventory tracking.
2. Installation of Automated Picking Robots: Deployed 3 automatic Shuttle robots running on rails, capable of parallel picking from 3 tiers, reducing time from 20 minutes to 4-6 minutes/order.
3. Integration of Centralized Control System: Installed PLC (Programmable Logic Controller) and HMI (Human Machine Interface) to control the entire process, from inbound → storage → retrieval → outbound automatically.
4. Employee Training and Operational Support: VietPOS Rack provided 40 hours of training for 15 warehouse staff, and 24/7 operational support for the first 6 months.

Results Achieved at Tân Phát

• 75% increase in picking speed: Picking time reduced from 20 minutes to 4-6 minutes per order, allowing 3-4 times more orders to be processed daily.
• Error rate reduced to 1.2%: Thanks to the automated system, the picking error rate dropped from 10% to 1.2% per week, saving 320 million VND/year in inspection costs.
• 120% increase in warehouse capacity: Within the same 8,000m² area, the 3-tier AS/RS system increased capacity from 3,360 pallets to 7,200 pallets.
• 62% reduction in labor costs: From 28 employees down to 8-10 employees (supervisory only), saving 280 million VND/year. ROI achieved within 22 months.

“Before implementing the automated warehouse, we were concerned about complexity and the risk of production disruption. But the VietPOS Rack team planned very thoroughly, implementing it in stages without affecting daily operations. After 18 months, the system had paid for itself, and now our warehouse operates almost 100% automatically.”

— Mr. Tran Minh Hung, Warehouse Director, Tan Phat Factory

Project 2: Doi Cat Mechanical Factory (Binh Duong) — 6,500m² Automated Warehouse with Conveyor System

Doi Cat Factory specializes in manufacturing precision mechanical components for the automotive industry. Their warehouse stores tens of thousands of small parts, classified by item code, requiring extremely strict inventory management. Previously, they used conventional pallet racks and managed inventory with Excel spreadsheets, causing many errors and sudden stock shortages.

Customer: Doi Cat Factory | Industry: Mechanical component manufacturing | Scale: 350+ workers | Location: Amata Industrial Park, Binh Duong

Customer Problems Encountered

• Inaccurate inventory management: Using Excel for management led to inventory discrepancies of 15-20% each quarter, causing stockouts or excessive inventory.
• Long search times for goods: Small parts were stored haphazardly, taking an average of 30-40 minutes to find a specific item code.
• Insufficient space for expansion: The warehouse was nearly full, but the company still needed to increase output by 25% in the next 2 years, with no room for additional racks.
• High operating costs: Required 18 warehouse staff, with a labor injury rate of 12 cases/year due to manual handling.

Deployed VietPOS Rack Solution

1. Design of a 4-tier mini AS/RS system with automatic conveyor: VietPOS Rack designed a mini AS/RS system (smaller in size than the Tan Phat project) with 4 tiers, 14m high, connected to an automatic conveyor system to transport parts from the warehouse to the production line.
2. Integration of WMS software + barcode scanning: Each mechanical part is labeled with a barcode, and the WMS system automatically updates storage locations in real-time. Employees only need to scan the code to know the exact location of the part in the warehouse.
3. Installation of 2 Shuttle robots and 1 pick-and-place robot: The system uses 2 Shuttles for pallet storage/retrieval and 1 pick-and-place robot to separate individual parts from the pallet and place them onto the conveyor.
4. Connection to enterprise ERP: VietPOS Rack integrates the WMS with the factory’s existing ERP system, enabling automatic demand forecasting and optimized production scheduling.

Results Achieved at Doi Cat

• Inventory accuracy increased to 99.8%: From a 15-20% discrepancy down to 0.2%, eliminating sudden stockouts and excess inventory.
• Part search time reduced by 85%: From 35 minutes down to 5 minutes thanks to the barcode and WMS system, increasing picking speed by 8 times.
• Warehouse capacity increased by 140% without expanding floor space: The 4-tier AS/RS system increased capacity from 2,800 pallets to 6,700 pallets, sufficient for a 25% production increase over the next 2 years.
• Operating costs reduced by 58% and workplace injuries to 0 incidents/year: From 18 employees down to 7-8 employees, saving 185 million VND/year. ROI achieved within 20 months.

“We were initially worried that the automated system would be too complex to operate. But VietPOS Rack not only provided the equipment but also comprehensive training and support. Now, even inexperienced employees can manage the warehouse effectively. Most importantly, we reduced workplace injuries from 12 incidents/year to 0, protecting our team’s health.”

— Mrs. Le Thi Phuong Linh, Head of Materials Management Department, Doi Cat Factory

Project 3: La Me Food Factory (Da Nang) — 5,200m² automated cold storage with temperature control

La Me Factory produces frozen food (fish, shrimp, meat) for the export market. Their cold storage operates at -18°C, requiring an automated system that can withstand harsh conditions. Previously, employees had to enter the cold storage for 8-10 hours/day, causing health issues, and picking efficiency was very low.

Customer: La Me Factory | Industry: Frozen food manufacturing | Scale: 280+ workers | Location: Lien Chieu Industrial Park, Da Nang

Problems customers encountered

• Employees endure harsh conditions: Warehouse staff must work in a -18°C environment for about 8-10 hours/day, causing respiratory diseases, arthritis, and a sick leave rate of up to 18%/year.
• Low picking efficiency: Due to the cold, employees move slowly, with picking time ranging from 25-30 minutes/order, failing to meet daily export demands.
• Unoptimized warehouse system: The cold storage uses standard pallet racks, with a capacity of only 45%, insufficient for the company’s 30% growth needs.
• High equipment maintenance costs: Warehouse equipment corrodes due to high humidity and low temperatures, with annual maintenance costs reaching 85 million.

Solutions implemented by VietPOS Rack

1. Design a specialized AS/RS system for cold storage: VietPOS Rack collaborated with a Japanese technology provider to design a 3-tier, 11m high AS/RS system, with components coated for corrosion resistance and capable of withstanding continuous -18°C temperatures.
2. Install 3 specialized Shuttle robots for cold storage: Use 3 Shuttle robots specially designed with cold-resistant motors, capable of operating 24/7 at -18°C without failure.
3. Integrate an automatic temperature and humidity monitoring system: Install IoT sensors to monitor the temperature of each warehouse area in real-time, automatically adjusting the cooling system to save 20-25% energy.
4. Build an automated workstation outside the cold storage: VietPOS Rack designed an air-conditioned workstation outside the cold storage, where employees can control the robots and pick items without entering the cold storage.

Results achieved at Lá Me

• Reduced employee time in cold storage from 8-10 hours to 1-2 hours/day: Thanks to the automated system, employees only need to monitor from the external workstation, protecting the team’s health.
• Increased picking efficiency by 65%: Picking time decreased from 28 minutes to 8-10 minutes/order, increasing order processing capacity from 12 orders to 32 orders/shift.
• Increased warehouse capacity by 115% while saving 22% energy: The 3-tier AS/RS system increased capacity from 2,340 pallets to 5,040 pallets. The IoT monitoring system reduced electricity costs by 185 million/year.
• Reduced maintenance costs by 68% and sick leave rate to 3%/year: From 85 million/year down to 27 million/year thanks to corrosion-resistant equipment. The sick leave rate dropped from 18% to 3%. ROI achieved within 24 months.

“The automated cold storage project by VietPOS Rack was a turning point for our company. Not only did it increase efficiency, but it also protected employee health — something we value more than profit. These positive changes helped our employee retention rate increase from 65% to 92%, and export productivity increased by 40% in the first year.”

— Mr. Nguyen Van Son, General Director, Lá Me Factory

Comparison of 3 Projects: Scale, Investment, and ROI

Lessons Learned and How to Apply for Other Businesses

From 3 real-world projects, VietPOS Rack draws important lessons for Vietnamese manufacturing businesses considering the implementation of automated warehouses. First, the AS/RS system is not “one size fits all” — each factory needs a custom design based on warehouse scale, type of goods, and operational goals. Second, investing in automated warehouses is not only to save labor costs, but also to increase product quality, protect employee health, and create conditions for expanding output. Third, choosing a reliable implementation partner — with experience, long-term operational support, and the ability to integrate with the business’s current system — is a decisive factor for success.

VietPOS Rack’s Automated Warehouse Deployment Process: 5 Steps

1. Consultation and Site Survey (2-3 weeks): VietPOS Rack’s engineering team surveys the current warehouse, analyzes operational processes, and creates a detailed plan for the AS/RS system.
2. 3D Design and Simulation (3-4 weeks): Provides detailed 3D drawings, simulates system operation, and calculates the expected ROI for customer approval.
3. Manufacturing and Installation (8-14 months): VietPOS Rack manufactures components at the Tay Ninh factory, installs them on-site, and tests the entire system before handover.
4. Training and Trial Operation (4-6 weeks): Provides 40-60 hours of training for customer staff, runs trials for 2-4 weeks with gradually increasing output to ensure stability.
5. Long-term Operational Support (6 months - 2 years): Provides 24/7 support, periodic maintenance, and system optimization based on actual operational data.

FAQ: Frequently Asked Questions about VietPOS Rack Automated Warehouses

Below are common questions from Vietnamese manufacturing enterprises when considering the deployment of automated warehouse systems. We provide detailed answers based on experience from the 3 real-world projects mentioned above.

What types of goods are suitable for AS/RS automated warehouses?

The AS/RS system is most suitable for goods with standard packaging (pallets, cartons, standard boxes) that have uniform size and weight. Typical examples include electronic components, mechanical parts, frozen food, chemicals, and pharmaceuticals. For goods with irregular sizes (clothing, textiles), a custom design or a mini AS/RS system with small trays is required. VietPOS Rack has successfully deployed systems for all 3 types of goods mentioned above.

What is the ROI period? Is it really cost-effective?

Based on 3 projects, the average ROI period is 20-24 months, depending on warehouse scale, employee salaries, and current operating costs. Annual savings mainly come from: (1) Reducing labor costs by 35-62%; (2) Reducing errors and quality inspection costs by 25-40%; (3) Increasing warehouse capacity without expanding floor space; (4) Saving energy if an IoT monitoring system is in place. Tan Phat factory saves 850 million VND/year, Doi Cat saves 720 million VND/year, and La Me saves 680 million VND/year (including energy savings).

What if the system breaks down? Does VietPOS Rack provide maintenance support?

VietPOS Rack provides a comprehensive maintenance package for the first 24 months (included in the contract), and an extended maintenance contract can be signed thereafter. VietPOS Rack’s technical team provides 24/7 support via phone, email, or on-site visits if needed. The average response time is <2 hours, and most issues can be resolved within 24 hours. The system is designed for high reliability (uptime >99%), and commonly failing parts are stocked at VietPOS Rack’s warehouse.

Does implementing an automated warehouse disrupt current production?

VietPOS Rack plans implementation in phases to minimize disruption. Typically, the system is built in a separate warehouse area, without affecting the production line. The transition from the old warehouse to the new one usually takes 2-4 weeks, during which the old warehouse continues to operate normally until the new warehouse is 100% stable. At Tan Phat Factory, there was no production disruption throughout the 12-month implementation process.

If my company is small (under 100 employees), with a warehouse under 2,000m², should we implement an automated warehouse?

For small warehouses under 2,000m², a full AS/RS system may not be economical. However, VietPOS Rack offers alternative solutions: (1) Semi-automated racks with WMS management system; (2) Automated conveyor system combined with conventional racks; (3) Standalone pick-and-place robots. These solutions have lower investment (3-8 billion VND instead of 14-18 billion VND), faster ROI (12-18 months), and still increase efficiency by 30-50%. Contact VietPOS Rack for consultation on a solution suitable for your company’s scale.

If you are a Vietnamese manufacturing enterprise looking for an automated warehouse solution, contact VietPOS Rack — a warehousing technology member of Viet Duc Tri Group. We will provide free consultation, site survey, and a detailed plan for a system tailored to your business. Hotline: 0935 295 337 (24/7 support) or email [email protected].