In today’s business environment of rapidly changing customer demands, varying online order quantities, tight delivery schedules, and high customer service level requirements, it is becoming increasingly difficult for companies to achieve high performance standards using existing warehousing systems. The well-structured traditional warehouse system cannot meet the huge challenge of adapting requirements to today’s global market which requires greater flexibility and faster operation capability in managing inventory. Alternative warehouse methodologies should be appropriate for the value added chain concept of companies, have enough flexibility to adapt to market conditions, and be strongly agile to overcome the late or no delivery risk. At this point, the Cellular Transport System (CTS) has been developed as an alternative system by the Fraunhofer Institute for Material Flow and Logistics. In this study, the comparison of CTS with conventional systems by using cycle time calculation is provided.