Warehouse Space Crunch? VLMs Help a Fittings Manufacturer Store 90% of Materials in 45㎡ and Double Efficiency

Location:

Hangzhou, China

Sector:

Electronic

Background

Founded in 1997, Hangzhou Fuyang Zhonghe Electronics Co., Ltd. is a national high-tech enterprise integrating production, R&D, and scientific research, specializing in the manufacturing of water purifier fittings, PE pipe fittings, and waterway boards. The company’s independently developed “ITiGER” brand quick-connect fittings have successfully filled the market gap for high-quality domestic fittings in China, achieving localization of previously imported products. Zhonghe Electronics is the first and currently the only Chinese company to obtain NSF (National Sanitation Foundation) certification for its products.

Pain Points

With the rapid business growth and continuously rising order volumes, Zhonghe Electronics needed to increase its inventory of materials to support production and better serve its customers. However, the existing warehouse faced a severe shortage of storage space. The traditional floor-level shelving system could no longer meet the growing material storage demands. The key challenge was how to maximize storage capacity within the limited warehouse footprint while achieving efficient material management.

Solution

In September 2022, Zhonghe Electronics introduced four Modula vertical lift modules (VLMs) to store semi-finished and finished fittings and related materials.

Significant Space Utilization Improvement
Occupying just 45㎡ of floor space, the four VLMs provide an effective storage area of 872㎡, greatly relieving warehouse space constraints.

“Goods-to-Person” Picking Model
The VLMs transformed the operation from “person-to-goods” to “goods-to-person.” Operators no longer need to walk through the warehouse to locate items; the required materials are automatically delivered to the picking bay, significantly reducing walking time and distance while greatly improving operational efficiency.

Seamless ERP System Integration
Zhonghe Electronics seamlessly integrated its in-house ERP management system with the Modula VLMs. All material retrieval orders are automatically transmitted from the ERP system to the VLMs. Upon order receipt and operator confirmation, the VLMs automatically execute picking commands and deliver the required materials. Execution results are fed back to the ERP system in real time, automatically updating inventory data and ensuring full alignment between system records and physical inventory.

Laser Pointing System for Picking Assistance
Zhonghe Electronics also equipped the VLMs with a bin laser pointing system, which helps operators quickly and accurately identify the exact location of items to be picked. This further improves picking efficiency and accuracy, enabling more lean and precise inventory management.