Precision in Motion: How Mitsubishi Transformed their Electronics Supply Chain with Automated Storage

The Client: Mitsubishi Electronics

Mitsubishi Electronics is a premier supplier of electronic components to Silicon Valley’s technology industry. Their business depends on delivering high accuracy and just-in-time (JIT) service to some of the world’s most demanding customers. In this environment, reliability and precision are not just goals—they are the foundation of Mitsubishi’s reputation and competitive advantage.

The Challenge

Meeting Silicon Valley’s Demanding Expectations

• Inventory Accuracy Pressures: Even minor discrepancies could result in shipment errors or delays, potentially disrupting high-stakes production lines.
• Tight Delivery Windows: Customers expected components delivered exactly when needed—not too early, never late.
• Component Diversity: Managing over 1,500 different part numbers, each with unique handling and storage requirements.
• Picking Efficiency: Manual picking was too slow and error-prone to meet JIT demands.
• Space Utilization: The high cost of Silicon Valley real estate meant every square foot had to be optimized for both storage and operational efficiency.

Mitsubishi realized that their manual processes could not scale to meet growing demand without risking their quality promise. They needed a solution that would increase speed, accuracy, and reliability—all at once.

The Solution

Reimagining Inventory Management

• Smart Storage Architecture: An advanced Automated Storage and Retrieval System (ASRS) provided capacity for thousands of totes, each dedicated to a single part number for maximum inventory integrity.
• Dynamic Space Utilization: The ASRS maximized vertical space, stacking inventory in ways manual methods could never achieve.
• Real-Time Inventory Visibility: The system maintained perpetual inventory counts, eliminating discrepancies and providing confidence in stock levels at all times.

Think of the ASRS as a giant automated library: instead of a librarian climbing ladders and searching shelves, a computer-controlled mechanism retrieves exactly the right item in seconds—without errors or fatigue.

Creating an Intelligent Workflow

• Integrated Receiving Process: Products were scanned via barcode and automatically routed to the correct storage location.
• Priority-Based Order Processing: Operators could prioritize orders, allowing the system to optimize retrieval sequences for speed and efficiency.
• Synchronized Picking: The ASRS retrieved all components for an order at once, eliminating the “hunting and gathering” of traditional picking.
• Built-In Verification: Operators verified each pick with barcode scanners, maintaining speed and near-perfect accuracy.
• Continuous Inventory Validation: Operators validated tote quantities during picking, maintaining perpetual inventory without separate counting processes.
• Seamless Downstream Flow: Completed orders were automatically conveyed to shipping stations for final processing.

Maximizing System Flexibility

• Dynamic Task Switching: During idle picking periods, operators could put away received goods without batching, maximizing productivity.
• Scalable Infrastructure: The system was designed to handle growing volumes without proportional increases in labor.
• Exception Handling: Special procedures were integrated for unusual situations, ensuring the system never became a bottleneck.

The Integrator Advantage

• Holistic System Design: FloStor designed a complete solution, ensuring all elements worked in harmony.
• Workflow Optimization: The implementation included not just technology, but also optimized processes to maximize the value of automation.
• Custom Integration: The solution was precisely tailored to Mitsubishi’s unique needs and challenges.
• Single-Source Responsibility: FloStor took ownership of the entire project, eliminating the headaches of coordinating multiple vendors.

The Results

• 15-20% Reduction in Order Cycle Time: Orders moved through the facility faster, enabling Mitsubishi to meet ever-tighter deadlines.
• 99.9% Inventory Accuracy: Near-perfect records eliminated the delays and errors associated with inventory discrepancies.
• Ship-to-WIP Capability: The system’s precision allowed Mitsubishi to ship directly to customers’ work-in-progress operations—a premium service requiring exceptional dependability.
• Increased Operational Flexibility: The system’s dynamic capabilities allowed more responsive operations.
• Enhanced Labor Productivity: Staff focused on value-added activities, not searching for parts or counting inventory.

Beyond the Metrics: Strategic Impact

The ASRS implementation wasn’t just an operational improvement—it repositioned Mitsubishi as the premier JIT supplier to Silicon Valley’s tech leaders. By transforming their material handling capabilities, Mitsubishi created a sustainable competitive advantage in a market where reliability and precision are paramount.

For business owners facing their own operational challenges, this case illustrates how the right approach to automation—guided by an experienced system integrator—can deliver not just incremental improvements but transformative results that strengthen your market position and create new strategic opportunities.