Discovery Report

Research findings, User pain points and needs

Automated Storage and Retrieval Systems (AS/RS) have seen increasing adoption in
Manufacturing
Retail
Logistics
Warehousing

Why?
Rise in e-commerce
Need for efficient inventory management

How will AR/RS help?

Reduced labor cost
Improved accuracy, less human errors
Optimized use of storage space
 E-commerce growth AI/ML

Increased pressure on AI/ML optimizes storage

warehouses to fulfil and retrieval rules,
demand quickly and improve capacity
efficiently with increased forecasting, and enable
online shopping predictive maintenance.

Current trends

Real-time analytics Sustainability

Many companies are Companies are focused

adopting data-driven on reducing energy
approaches to detect consumption. Space
bottlenecks and optimize optimization by AR/RS will
operations in real time prove beneficial
 Lack of real-time optimization

Sub-optimal space utilization

Key pain points
Delayed deliveries

Lack of predictive capabilities

Complex and non-intuitive user experience

 Real-time, actionable insights

Better responsiveness for delivery delays

User needs
Scalabiltiy

Predictive analysis

User-friendly interface
 Solution Design Document
Proposed solution, feature-set, architecture and lo-fi user interface
Key features

Real time performance monitoring

The system will continuously capture data from the warehouse's AS/RS equipment, sensors, and other
integrated systems.
Real-time dashboards will display KPIs such as throughput, system utilization, order fulfillment rates, and
storage density.
Alerts will be triggered for potential bottlenecks or inefficiencies, allowing warehouse operators to act
swiftly.

AI/ML-Driven Optimization:
Storage and Retrieval Optimization: Using machine learning algorithms, the system will analyze
historical and real-time data to adjust storage and retrieval rules dynamically. The goal is to minimize
travel times and reduce idle time for equipment, leading to higher throughput.
Predictive Analytics: The system will forecast demand and usage patterns to optimize space utilization
and reduce stock outs or overstocking. This will also aid in predicting equipment maintenance needs,
reducing downtime.
Capacity Forecasting: Based on historical demand and operational conditions, the system will provide
forecasts for storage requirement
Delivery Order (DO) Responsiveness:
The system will prioritize and sequence Delivery Orders based on urgency, customer priority, and
available resources.
Real-time tracking of DO execution will be visible, along with suggestions on how to optimize order
processing times based on warehouse capacity and current workload.

Space Utilization Maximization:

The AI models will assess current storage layouts and suggest reorganizations or optimizations based on
the size, weight, and movement frequency of items.
Automated rules will adapt storage assignments dynamically, based on predicted demand or item
characteristics.

User-Friendly Interface:
A simplified, intuitive dashboard will present key insights in a visual, easy-to-understand manner.
Warehouse operators will be able to quickly access information on system performance, DO status, and
recommended actions.
Customizable widgets will allow users to tailor the dashboard to their specific role and needs.
A notification system will provide real-time alerts and recommendations via desktop or mobile
applications, enabling timely decision-making.
System architecture
Data layer
Data collected can be:
1. Warehouse operations Data collected from
information various sources:
UI layer 2. Retrieval operations AR/RS systems
3. System metrics Sensors
4. Demand metrics WMS data

{
5. Equipment and
inventory

Platform’s user interface

Cloud will interact with the
business logic layer to fetch
infrastructure
and send information

Two-way communication
between AI models and
The system will be hosted on a cloud-based
Business logic Business APIs to ensure AI/ML processing
infrastructure, ensuring that it can scale easily layer correct and relevant data is layer
as the warehouse grows. displayed in client side
Manage business Includes ML and
rules, for eg: rules for analytical models that
This also enables real-time processing and
storage and resource ingest from data layer
updates, as well as continuous integration and
utilization, etc and output predictions
deployment (CI/CD) for system improvements.
and recommendations
UI (Wireframes)

Dashboard
Figma link
UI (Wireframes)

Delivery orders
Figma link
UI (Wireframes)

Storage
Figma link
UI (Wireframes)

Notifications
Figma link
User Journey Map/Mockups
How does the solution address the need?
 Pricing models
Subscription-based / Usage-based / Tiered pricing
Assumptions

Assuming that the pricing is for the Indian market, there are some characteristics we need to keep in
mind
The Indian market is price sensitive and has a lot of competition
The scale of businesses varies a lot - therefore, the models should be flexible

In the Indian market, a more aggressive pricing strategy is required to appeal to businesses operating
on thinner margins. Therefore, the options on our plate are:

Subscription-Based Model: Tailored for small to mid-sized companies looking for cost-effective
solutions with predictable monthly fees.

Freemium Model: Offer a basic, limited-feature version for free, with the option to upgrade to paid
tiers.

Usage-Based Pricing: Charge based on usage, which allows companies to scale according to their
needs, especially during seasonal peaks.
Subscription-based model

Basic Plan Pro Plan Enterprise Plan

INR 25,000 per month INR 75,000 per month INR 2,00,000 per month

All pro features

Real-time performance All basic features
monitoring. Custom AI/ML models
AI/ML-driven and integration with
Basic analytics and optimization for existing systems.
reporting. storage and retrieval.
Unlimited connected
Up to 3 connected Up to 10 connected AS/RS systems.
AS/RS systems. AS/RS systems.
24x7 dedicated
support
 Affordable pricing for mid-sized Indian businesses,
allowing them to access premium features at a
reasonable cost.
Why subscribe?
Predictable, subscription-based revenue model for
Linecraft, which can help with scaling in India’s cost-
sensitive market.
Freemium model

Free Plan Paid Plan

INR 0 per month Usage based or subscription

After a company sees

Limited performance value in the system
monitoring and basic Conversion through basic usage,
KPI reporting. they can upgrade to
higher-tiered plans with
Maximum of 1 advanced features like
connected AS/RS AI-driven optimization,
system. real-time analytics, and
predictive maintenance.
No AI/ML optimization
 Attracts smaller warehouses and businesses that
are wary of large initial expenses.

Why freemium?
Provides a “try before you buy” experience, allowing
potential customers to see the value before
committing to a paid plan.
Usage-based model

Basic Usage-Based Plan:

₹5 per Delivery Order (DO) processed.

₹1 per optimization recommendation executed.

₹2,000 per additional connected AS/RS system (after the first system).
 Ideal for seasonal businesses, which can scale their
expenses based on actual usage. This is particularly
relevant in India’s retail, manufacturing, and e-
Why pay as you go? commerce sectors where demand fluctuates
significantly.

Reduces upfront commitment, which is a key barrier

for smaller companies in India.
 Freemium and Subscription-Based Models: Offer
the freemium plan to entice smaller Indian
businesses to try the solution without financial risk,
then drive conversion to subscription-based plans
Final recommendations as they see the benefits.

Usage-Based Model: This should be an attractive

option for businesses that experience fluctuating
demand (e.g., around festivals like Diwali or during
peak shopping seasons).
Competitor Comparison
Who are we facing against and where do we stand?
The Indian AS/RS market is still in the early stages compared to global markets, with many businesses
relying on traditional manual or semi-automated systems.

However, the growth in e-commerce, retail, and manufacturing sectors has driven demand for
automated solutions.

Key Competitors in the Indian Market

Godrej Consoveyo Logistics Automation Ltd
Daifuku India
SSI Schaefer India
GreyOrange
Competitor analysis

Feature Linecraft Godrej Consoveyo Daifuku India SSI Schaefer India GreyOrange

AI-driven Yes, basic Yes, AI-driven

Yes, real time No No
optimization optimization robotics

Yes, with
Real time Yes, limited Yes, AI-driven
predictive No No
analytics capabality insights
maintenance

Cost Affordable and High cost, focus on High cost, focus Mid cost, focus on Moderate cost, AI-
efficiency flexible large scale on enterprises SMBs based pricing

High with
High but High with limited AI Medium, focus on
Scalability High hardware
expensive integration large warehouses
dependency
Strengths

Established player in the Indian market

Deep integration with existing infrastructure
Huge market presence

Weaknesses

No significant AI/ML-driven optimization or real-time

analytics
Higher costs, making it less accessible to SMBs

Linecraft advantage

AI-driven insights and predictions

Better pricing model and cost efficiency
Strengths

Global player with strong expertise in

warehouse automation solutions
Focus on real-time analytics

Weaknesses

Solutions positioned for enterprises, making them

unaffordable for SMBs
Limited AI capabilities

Linecraft advantage

Accessbility to SMBs
Customizable AI models
Superior AI capabilities
Strengths

Solid presence in the mid-market space

Affordable for medium-sized businesses

Weaknesses

Offerings more hardware-centric

Lack of actionable insights

Linecraft advantage

AI-driven insights and predictions

Freemium model
Strengths

AI and robotics are their strong suit

Global presence and technically strong

Weaknesses

Suited for larger warehouses

Focus heavily on robotics, no software-driven
optimizations

Linecraft advantage

Cost-effective AI solution
Smaller market focus
Faster rollout of updates since we are software-driven
Assessment & Recommendation
Should we, or shouldn’t we? That is the question
Based on the findings from the market analysis, competitor comparison, and understanding of industry trends,
there is a clear opportunity for Linecraft AI to venture into the AS/RS Intelligence market.

The AS/RS market is growing rapidly due to the demand for more efficient, automated warehousing solutions,
driven by industries like e-commerce, logistics, manufacturing, and retail.

Key points supporting the opportunity:

1. Market growth
2. Technology trends
3. Un-addressed user needs

4. Competitive differentiation
5. Scalability and flexibility
Market growth

Global AR/RS market expected to grow at a 8.5% CAGR

Rise of e-commerce
Need for quicker and more efficient order delivery

Technology trends

Integration of AI/ML in AR/RS still in early stages

Competitors mostly hardware focused
Predictive analysis, decision making and real-time insights provide significant technological edge

Un-addressed user needs

Pain points in delayed DOs, inefficient usage of storage space and lack of real-time
suggestions/insights
User-friendly and intuitive interface
Competitive differentiation

Linecraft’s product stands out with its AI-driven optimization, real-time actionable insights, and
predictive maintenance
Competitors lack sophisticated AI/ML driven features

Scalability and flexibility

Linecraft AI’s modular, cloud-based infrastructure ensures that its solution can easily scale as
businesses grow, supporting multiple AS/RS systems, and allowing integration with Warehouse
Management Systems (WMS) or ERP software.
Risks and challenges

Market penetration

Established players like Godrej, GreyOrange and Daifuku have a strong foothold in the market.
Linecraft AI would need to compete with their extensive client base and brand recognition.
Breaking into larger enterprise customers might require strategic partnerships or collaborations,
as these customers often have existing relationships with major AS/RS providers.

Technical complexity

While the AI/ML-driven approach is an advantage, it also introduces complexity in development

and implementation.
Continuous updates and improvements in AI algorithms will be necessary to maintain competitive
differentiation and deliver value to customers over time.
Risks and challenges

Implementation costs

The initial costs of developing and deploying the AI/ML infrastructure, as well as integrating it into
different AS/RS systems, may be significant. Careful planning around R&D investment, pricing,
and rollout strategy will be essential

Technical complexity

Large-scale enterprises might require extensive customization, which could slow down
onboarding and increase implementation complexity. This challenge can be mitigated by
developing a flexible but standardized core solution with optional custom modules.
Strategic recommendations

Develop
Focus on mid-sized Leverage AI/ML as partnerships with
enterprises key differentiator existing hardware
providers

Iterative approach
Adopt flexible User-centric
for launch and
pricing plans interface
growth
 Given the growing demand for AS/RS solutions, the shift
toward AI-driven warehouse optimization, and the gaps
in the market, I recommend that Linecraft AI should
proceed with venturing into the AS/RS Intelligence
space.

Final recommendations
The potential rewards outweigh the risks, particularly
with a targeted approach that focuses on mid-sized
enterprises and emphasizes Linecraft’s AI/ML strengths.

With a well-executed product strategy and a focus on

scalability, Linecraft AI is well-positioned to become a
leading player in the AS/RS Intelligence market.
That’s all, folks!
A Case Study by Swarup Hegde