Vertical Storage Solutions: How They Work, Benefits & FAQs

The VLM market is gaining serious momentum, with projections showing it will climb from $1.56 billion in 2023 to $2.78 billion by 2030.

This growth reflects a broader shift in how warehouses manage space and efficiency.

Vertical storage solutions are becoming a go-to strategy for warehouses looking to save space, speed up order fulfillment, and prepare for automation, all without expanding their footprint.

In this guide, we will:

  • Explain what vertical storage is and how it works
  • Share how automated vertical storage solutions operate
  • Cover the advantages of vertical storage systems
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Understanding Vertical Storage

Vertical storage is a smart, space-saving solution that maximizes overhead room in a warehouse, minimizing the need to expand across the floor.

By implementing high-density systems such as vertical lift modules (VLMs), facilities can reclaim up to 90% of their floor area.

This approach improves picking efficiency and worker safety, while also significantly increasing storage capacity without needing more floor space.

How Vertical Storage Works

Vertical storage systems can help facilities make better use of space by storing items upward instead of spreading them out across the floor.

By taking advantage of overhead space, solutions like vertical lift modules and vertical carousels can boost storage capacity by up to 90%.

These systems keep inventory tightly organized in stacked layers, improving access, safety, and visibility at the same time.

Not sure if VLMs are the best fit for your business? Here’s how vertical lift modules compare to order pickers.

How Automated Vertical Storage Solutions Operate

Curious how automated vertical storage systems actually work? Here’s a quick look at how they move, store, and deliver items.

Vertical Lift Modules (VLMs)

VLMs are enclosed systems with a central extractor that moves between two columns of trays.

When an item is needed, the system automatically retrieves the right tray and delivers it to a user at a comfortable working height.

At Modula, we built our vertical lift modules with your team’s safety and comfort in mind.

Instead of having workers walk across the warehouse to find parts, our systems follow the “parts-to-picker” principle, bringing items directly to the operator at a fixed workstation.

In other words, your team isn’t wasting time crisscrossing the warehouse, and they’re a lot less tired at the end of the day.

Vertical Carousels

Similar to a Ferris wheel, vertical storage carousels rotate shelving units along a track, bringing the right item to the operator. This design speeds up picking and cuts down on travel time.

Reclaim your floor space with vertical storage.
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How Vertical Storage Solutions Benefit Warehouse Operations

If you’re running out of space or your team is wasting time walking the warehouse floor, vertical storage could be exactly what you need.

These systems, like vertical lift modules and carousels, aren’t just high-tech shelves. They’re game changers for efficiency, accuracy, and space management.

Free Up Floor Space

Instead of spreading inventory across endless rows of shelving, vertical storage stacks it upward, using your building’s height.

You can store the same amount of inventory in up to 90% less floor space. Perfect for tight warehouses, urban facilities, or warehouse managers trying to do more with less.

Get Orders Out Faster

No more walking back and forth through aisles. These systems bring the items right to your team, fast.

With tools like laser pointers, LED indicators, and partitions and dividers, pick times shrink dramatically. Some companies have cut picking time by more than half.

Less Opportunities for Mispicks

It’s easy to grab the wrong item when you’re rushing through shelves.

With vertical storage, software and light guidance show exactly what to pick. Many businesses see picking accuracy hit 99.9%, which means fewer returns, fewer headaches, and happier customers.

Protect Workers and Improve Ergonomics

Goods are always presented at waist height, reducing strain from lifting, bending, or reaching.

This lowers injury risk and helps employers comply with OSHA safety standards, especially important in sectors with repetitive handling, like pharma or electronics.

Know What You Have and Where It Is

Integrate your vertical storage with a warehouse management system (WMS), and you’ll know your inventory status in real time. No more second-guessing stock levels or wasting time on manual counts.

Scale and Automate With Minimal Disruption

Vertical storage systems are modular and can grow with your operation.

They can also be integrated with conveyors, robotic pickers, or ERP systems, making them a flexible solution for companies planning to scale or automate further.

An infographic highlighting the benefits of vertical storage solutions
Explore how vertical storage solutions can help your warehouse operations

Vertical Storage Solutions vs. Traditional Racking Systems: Which One Works Better?

Wondering whether to stick with traditional warehouse storage racks or switch to vertical storage?

Here’s a quick breakdown of how the two compare and which one could give your warehouse the edge.

FeatureVertical Storage SystemsTraditional Racking Systems
Space UseMakes the most of your building’s heightSpreads out inventory, often wasting valuable overhead space
Picking SpeedFollows the goods-to-person principleWorkers walk, search, and climb to get what they need
Inventory TrackingWorks with WMS for real-time updates and better controlOften managed manually, which can lead to errors or delays
Safety & ComfortDelivers goods at a safe, comfortable height, with no ladders or heavy liftingInvolves more physical strain and safety risks like climbing and bending
Automation FriendlyBuilt for automation; easily connects to warehouse robots, conveyors, and smart techLess compatible with automated systems
Easy to ScaleAdd more units without expanding your footprintScaling usually means adding more shelving and needing more space
FlexibilityAdjustable tray heights for changing inventory mixFixed shelf heights (hard to change)
Picking AccuracyHigh accuracy with guided software and smart item placementGreater chance of mistakes due to manual handling
Cost Over TimeHigher upfront cost, but it pays off in the long run with big savings on space and laborIt’s more affordable at first, but costs can add up as your operation grows

Store more, waste less floor space.

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Modula Vertical Storage Use Cases by Industry

From manufacturing to retail, Modula’s vertical storage systems are transforming how different industries store, pick, and manage inventory.

Here’s how different brands are putting them to work.

Case Study #1: Elektramat Optimizes eCommerce Fulfillment With Modula

Challenge:

As online demand surged, Elektramat faced the challenge of offering fast, flexible delivery in a highly competitive, low-margin market.

But with traditional fulfillment methods falling behind, it became clear that a new approach was needed to keep up with rising eCommerce expectations.

Solution:

To scale efficiently, Elektramat installed 14 Modula vertical lift modules (VLMs) integrated with conveyors.

Each unit features laser pointers, LED guides, and dual-delivery trays to speed up picking and reduce errors. Retrieved items move through an automated line for labeling and packing.

The payoff? Faster order processing, greater accuracy, and the ability to keep up with customer demand across Europe, all while saving space and reducing labor.

Case Study #2: Conad Transforms Distribution Efficiency With Modula VLMs

Challenge:

Conad Nord Ovest, a regional cooperative of Italy’s leading supermarket chain, was facing space and efficiency constraints in its distribution center.

With inventory growing and a traditional shelving system in place, the team needed to boost capacity without expanding the facility.

Solution:

To address these challenges, Conad deployed 15 Modula Lift ML50D units, each over 36 feet tall.

The results were immediate: 35% of total inventory is now stored in just 5% of the available floor space, freeing up room for growth without a costly expansion.

The automated system supports daily shipments of 4,000 packages to 50 stores, with greater speed and near-zero picking errors.

Case Study #3: Muylle-Facon Improves Liquid Handling With Modula VLM

Challenge:

Muylle-Facon, founded in 1906, is a leading manufacturer of coatings, sealants, waterproofing products, and other building chemicals.

As demand grew, the company needed a safer, faster way to store and handle liquid products, specifically oils, within its distribution process.

Solution:

To solve this challenge, Muylle-Facon turned to a Modula Vertical Lift Module (VLM) to automate the storage and retrieval of liquid products.

Thanks to the VLM’s dual external tray system, the team now completes 350 order lines in just 1.5 hours on a single machine.

How To Choose the Right Vertical Storage Solution

Choosing the right vertical storage system isn’t just about stacking inventory higher; it’s about finding the solution that best fits your workflow, product types, and long-term goals.

Here’s how to make a smart, informed decision:

Know What You’re Storing

Start by looking closely at your inventory. Are you storing small parts, heavy equipment, fragile items, or a mix of everything?

  • Vertical Lift Modules (VLMs) are perfect for mixed or irregularly sized items.
  • Vertical Storage Carousels are better for small, consistent items like tools or medical supplies.
  • For small parts and high-speed picking, advanced vertical storage bins systems like the Modula Flexibox are superior to traditional carousels. They allow for individual bin retrieval without moving the whole system.

Assess Your Space

Take stock of both floor space and ceiling height. VLMs can reach over 40 feet, making them ideal for facilities with limited floor space and tall ceilings.

The more vertical space you have, the more storage capacity you’ll unlock.

Think Speed and Accuracy

If fast fulfillment and order accuracy are critical, look for systems with:

  • Dual tray delivery to cut wait times
  • LED indicators or laser pointers to reduce errors
  • WMS integration to streamline picking and inventory tracking

Prioritize Safety and Ergonomics

Choose a solution that keeps your team safe and comfortable. Systems that deliver items at waist height reduce the need for bending, lifting, or climbing, minimizing the risk of injury and fatigue.

Know What You Have and Where It Is

Make sure your new system can integrate seamlessly with your existing WMS, ERP, or automation setup. Compatibility is key to avoiding disruption and unlocking full operational efficiency.

Plan for What’s Next

Your storage needs today might not be the same six months from now. Utilize a modular system that can scale as your inventory grows, or your workflows evolve.

An infographic highlighting how to select the right vertical storage solution
Here’s a guide to help you choose the best vertical storage system based on your needs

Vertical Storage Solutions: Key Takeaways

  • By storing inventory vertically, vertical warehouse storage solutions like vertical lift modules and vertical carousels dramatically increase capacity without the need to expand your warehouse footprint.
  • Modula’s vertical warehouse storage systems leverage features like laser pointers, LED pick-to-light systems, and dual tray delivery to speed up picking and reduce errors
  • Modula’s vertical storage solutions integrate seamlessly with warehouse management systems (WMS), ERP, and automation tools

Vertical Storage Solutions: FAQs

A vertical carousel (VC), also known as a vertical storage carousel or vertical carousel storage system, is an automated system that stores inventory in a compact, upright structure.

These carriers rotate vertically, much like a Ferris wheel.

A vertical storage carousel system rotates carriers in a continuous loop, bringing stored items to the operator by moving all carriers until the correct one reaches the access point.

A vertical lift module, on the other hand, uses a central extractor to retrieve individual trays from dual columns, delivering only the needed item without rotating the entire system.

Both systems are designed to maximize vertical warehouse storage, but VLMs offer greater precision, faster retrieval, and more advanced inventory control.

What are Modula’s vertical storage solutions for warehouses?

Modula offers a range of vertical industry solutions, each designed to tackle different warehouse challenges:

  • Modula Lift is their go-to, all-purpose VLM; popular for a reason and great for most applications
  • Modula Slim is perfect if you’re tight on space but still need smart storage
  • Modula Next takes precision to the next level; ideal when every pick needs to be exact
  • Modula Pallet is built for safe and efficient pallet handling, without the hassle
  • Modula Flexibox is all about speed, handling up to 180 vertical storage bins per hour

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