Productive from Day One. 20 Smart Reel Racks® — optimizing receiving, issuing, and stocktaking in one shot.
- How a Penang EMS factory cut warehouse space from 320㎡ to 63㎡ (−80%) and reduced staffing from 10 to 6 — without sacrificing speed or accuracy.

【Overview】
A Japanese EMS company operating globally introduced 20 units of Smart Reel Rack® and X-ray electronic components counter「iNsight-2000 Plus」 at its Penang, Malaysia factory — dramatically reducing warehouse space, labor, and stocktaking workload.


The Challenge: 3 Inefficiencies from Fixed-Location Storage
1. Over-reliance on experienced staff
Warehouse locations were memorized only by veteran workers. New employees had to perform multiple checks — visual inspection, part number confirmation, and QR scanning — making onboarding slow and error-prone.
2. Oversized warehouse (320㎡)
Fixed shelving couldn't accommodate varying reel sizes and quantities, leading to massive dead space across the 320㎡ warehouse.
3. Stocktaking meant searching, not counting
Inventory data only recorded "warehouse" as a location. Every time staff changed, workers had to physically search for parts — driving up labor hours with every transition.
The Results: Impact in 3 Numbers
|
Metric |
Before |
After |
Improvement |
|---|---|---|---|
|
Warehouse Space |
320㎡ |
63㎡ (4.5m × 14m) |
▲80% reduction |
|
Staff for Receiving/Issuing |
10 |
6 |
▲4 headcount |
|
Picking Operation |
Visual check + scan |
LED-guided only |
New hires productive from day one |
Smart Reel Rack® links rack number and slot data directly to inventory output — transforming stocktaking from searching into simply counting.
Why Smart Reel Rack®?

JFE Shoji Electronics evaluated three storage options — Standard Shelf, Tower-Type, and Smart Reel Rack® — and recommended the optimal configuration for this customer.
The deciding factors were the synergy between Smart Reel Rack® and the X-ray component counter, along with the following advantages uniquely suited to global EMS operations:
|
Criteria |
Standard Shelf |
Tower-Type |
Smart Reel Rack® |
|---|---|---|---|
|
Free-location storage |
× |
○ |
◎ |
|
maintenance |
△ Ongoing upkeep required — ESD grounding screws are prone to rust and falling out |
△ High labor burden due to frequent maintenance of sliding and moving parts |
◎ |
|
Multi-site rollout cost |
- |
Requires custom software development per site |
Near-zero additional development cost when core system is shared |
Key reasons for selection:
LED-guided picking — standardizes operations regardless of experience level
Free-location flexibility — reclaimed 257㎡ for production use
Maintenance-free design — far lower operational burden than alternatives
Scalable across sites — once integrated, rollout to other factories requires virtually no additional development cost
【Customer Feedback】
- "LED indicators make it immediately clear where to pick — new hires are productive from day one."
- "We freed up significant floor space and converted it to production use."
- "Even when stocktaking staff changes, there's zero time lost searching for parts."
- "Maintenance-free operation has made day-to-day management dramatically easier."
The Next Stage: Consolidating Stock Points
The factory is now planning to relocate Smart Reel Rack units from the warehouse to the SMT production line itself — reducing stock points from 2 to 1 and cutting material inventory further.
|
Current (As-Is) |
Future (To-Be) |
|
|---|---|---|
|
物流フロー |
Receiving → Warehouse(SRR)→ Production |
Receiving → Production(SRR) |
|
Stock Points |
2 |
1 |
|
Inventory |
Held at each location |
Consolidated & reduced |
Smart Reel Rack® is more than a storage solution — it's the foundation for reimagining how EMS operations manage logistics and inventory, end to end.
What is Smart Reel Rack®?

Smart Reel Rack® is a next-generation reel storage system that digitizes electronic component shelving — embedding location data directly into the rack to dramatically improve the efficiency of traditional reel management.
- Intuitive put-away and picking via LED guidance — anyone, without hesitation, fast
- Free-location storage for maximum density and zero wasted space
- Real-time inventory management and FIFO operation through ERP/core system integration
- Maintenance-free design — no moving parts, no ongoing ESD grounding upkeep
- Scalable across multiple sites and warehouses — one-time software development, minimal cost to roll out further
➤Learn more about Smart Reel Rack®
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