Manual picking and retrieval of items from storage locations can be time-consuming, leading to delays in order fulfillment. This can negatively impact customer satisfaction and the overall responsiveness of the supply chain. In addition, manual data entry and tracking systems are prone to human errors, resulting in discrepancies between recorded and actual inventory levels. This can lead to stockouts, overstocking, and difficulties in maintaining accurate inventory records. Therefore, a fully automated storage and retrieval system is proposed to tackle this problem. The overall system consists of infrared sensor as presence of item stored, LEDs indicator, warehouse model with compartments and stepper motors act as actuator to pick and place the item. This project aims to automate the storage and retrieval system with the assist of monitoring system for accurate tracking of inventory and space savings. The use of Programmable Logic Controller (PLC) in this project is a good representation of integrated automation technology in automated storage system design. Furthermore, monitoring system connected to a web-based system will be used to remotely monitor and operate the facility. Implementing an Automated Storage and Retrieval System (ASRS) in the warehouse can address these challenges by automating the storage, retrieval, and tracking of inventory.