Picture this scenario: a bustling warehouse with workers scurrying around, moving materials to and fro. How do they keep track of it all? Many warehouses use warehouse management systems (WMS) to streamline and automate inventory management, order picking and shipping tasks. Let’s dive in and discover how this powerful tool can make warehouse material handling a breeze.
Compare Top Warehouse Management Software Leaders
What This Article Covers
- What Is Warehouse Material Handling?
- Significance
- Principles
- Benefits
- Types
- The Role of Warehouse Layout
- Best Practices
- Next Steps
What Is Warehouse Material Handling?
Warehouse material handling involves moving and storing materials within a warehouse or distribution center. It involves performing multiple tasks such as goods receiving, storing, picking, packing and shipping. These tasks require equipment like forklifts, conveyor systems, pallet jacks and automated storage and retrieval systems (AS/RS).
Some major warehouse material handling features include inventory management, order fulfillment and transportation management.
- Inventory management involves tracking and organizing inventory levels to ensure adequate stock and reduce overstocking or stockouts.
- Order fulfillment provides accurate order processing and picking and timely delivery.
- Transportation management focuses on planning, execution and goods movement optimization throughout the warehouse.
Businesses often implement a WMS to manage warehouse operations and optimize material handling. A WMS provides real-time visibility into inventory levels and automates tasks such as picking and packing.
It also seamlessly integrates with other systems, such as transportation management software (TMS) and enterprise resource planning systems (ERP), to track inventory status and streamline material handling.
Warehouse material handling equipment plays a crucial role in enabling such processes. For example, businesses use forklifts to move heavy items, while conveyor systems transport materials across long distances. They use pallet jacks to lift and move pallets, while AS/RS can quickly retrieve and store items with high precision.
Significance
Warehouse material handling plays an important role in supply chain management by using specialized equipment to move and store goods across warehouses. It helps optimize warehouse space and organize goods to maximize available space and minimize damage or loss.
Proper material handling equipment also reduces the time and effort required to move items. This process can lead to improved productivity and faster order fulfillment, improving customer satisfaction and increasing revenue.
With efficient material handling equipment, fewer workers can perform the same tasks, reducing labor costs. This productivity level is significant, especially in large warehouses where labor is a major expense. It also reduces inventory costs by providing accurate tracking, avoiding overstocking and waste, and avoiding stockouts.
The warehouse material handling equipment market is also witnessing significant growth due to increased automation adoption in the warehouse and logistics industry. As per a report by Research and Markets, the global material handling equipment market was $127.7 billion in 2022 and is expected to reach $193 billion by 2030, growing at a CAGR of 5.3% from 2022 to 2030.
Automated MHE systems like automated guided vehicles (AGVs), AS/RS and conveyor systems are popular in warehousing operations due to their ability to improve efficiency, reduce labor costs and minimize errors.
Compare Top Warehouse Management Software Leaders
Principles
Consider following these principles to ensure safe, efficient and cost-effective material handling. They’re based on factors like the material type and nature, distance covered, storage requirements and equipment availability.
- Planning: Assess the materials, equipment and labor required to handle operations. Effective planning reduces operational costs and increases efficiency. The planning phase also includes developing strategies to optimize resources and minimize waste.
- Standardization: Handle materials with consistent methods, procedures and equipment. This strategy simplifies the handling process, reduces errors and improves efficiency. It also reduces accidents and injuries caused by unfamiliar or inconsistent handling practices.
- Work: Design workstations and handling equipment to minimize worker injury or strain.
- Ergonomics: Ergonomics reduces fatigue, improves productivity and prevents work-related injuries.
- Unit Load: Forklifts and pallet jacks minimize handling time and labor costs. They consolidate products into a single unit load to reduce damage during handling and transportation.
- Space Utilization: Effective space utilization can reduce additional storage space, minimize handling time and improve material flow.
- System: Coordinate material movement and processes (receiving, storage, inspection, production, packaging, shipping and transportation) to form an integrated, cohesive system.
- Environmental Impact: Implement sustainable practices and use of environmentally-friendly materials and equipment to minimize the impact of material handling operations.
- Automation: Increase efficiency, reduce labor costs and improve safety by reducing the need for manual handling via automation.
- Life Cycle Cost: Analyze equipment life cycle costs by considering factors such as upfront, maintenance, repair and replacement costs.
Compare Top Warehouse Management Software Leaders
Primary Benefits
From preventing workplace injuries to saving money, effective material handling systems can provide numerous benefits:
Minimize Costs
Streamline material handling to reduce manual touches on equipment. Use optimal storage space to avoid the need for additional storage facilities and associated costs. It organizes materials efficiently to store more goods in the same amount of space while reducing overall storage costs.
It cuts down on transportation costs by optimizing the material flow required to transport materials.
Increase Productivity
Efficient material handling systems optimize inventory management and reduce the inventory required for storage. They also reduce the time and labor required for each production cycle to improve efficiency. Regular maintenance and inspections allow businesses to identify risks and avoid equipment breakdowns.
They automate certain processes to minimize injuries and reduce the labor needed to remove materials.
Maximize Space
Mezzanines, pallet racks and tall storage facilities help maximize vertical storage space. Plan proper storage areas by identifying the best locations for materials and optimizing storage layout.
It analyzes material flow, identifies high-traffic areas and designs storage systems accordingly.
Reduce Accidents
Automated material handling systems such as conveyor belts and robotic systems reduce the need for manual labor to move heavy loads. Proper material storage and organization reduce accidents caused by tripping, slipping or falling objects. It also minimizes the risk of musculoskeletal injuries and physical strain.
Identify improvement areas by reviewing and analyzing material handling procedures regularly.
Decrease Product Damage
Protective wrapping, pallets and containers can prevent damage during handling, stacking and transport. Train workers to use appropriate lifting techniques to avoid product dropping or mishandling. Use appropriate equipment, such as forklifts, conveyors and hoists, to reduce extensive product damage.
Automated systems such as robots and conveyors can minimize manual handling.
Compare Top Warehouse Management Software Leaders
Types
Selecting an ideal material handling system is essential to optimize warehouse performance. Let’s look at some different material handling techniques, benefits and drawbacks.
1. Bulk Handling
With bulk handling, businesses can transport large quantities of loose materials such as grains, minerals, chemicals or powders in large containers or vessels without packaging. Industries that require the bulk transportation of raw materials, like mining, agriculture or chemical manufacturing, generally use this technique.
- Reclaimers: Manage large volumes of materials in mining, steel and cement industries. One common type is the bridge reclaimer that spans the stockpile and a bucket wheel to travel along the bridge for extracting materials.
- Conveyor Belts: Transport bulk materials from one point to another within the same facility, such as warehouses or manufacturing plants. Add features like cleats, scrapers and impact beds to suit specific needs.
- Hoppers: Hoppers have a wide opening at the top, allowing easy material flow and a smaller opening at the bottom for discharge.
- Bucket and Grain Elevators: They can lift and transport bulk materials vertically. They’re commonly used in agriculture, mining and manufacturing industries where you need to move materials between different levels in a facility.
2. Storage and Handling
Store raw materials, finished products, and work-in-progress items and move them between various production stages.
- Mezzanines: Utilize raised platforms to increase the available floor space within a facility. Since they’re constructed above existing floor areas, they provide storage areas without additional floor space.
- Stacking Frames: Provide effective storage and handling techniques since they’re versatile and easily stackable. They increase storage capacity without the need for additional shelving or racks.
- Racks: Organize item storage and maximize space utilization.
3. Engineered Systems
This tactic involves using automated or semi-automated equipment to move materials across warehouses. Seamless integration with other material handling equipment like robots improves efficiency and productivity. They provide high efficiency and are customizable to meet specific application needs.
- Automated Storage and Retrieval Systems (AS/RS): Consists of shelves or racks accessible via an automated crane or shuttle system. It directs the movement of the crane or shuttle to retrieve or store materials as needed.
- Automated Guided Vehicles (AGVs): Automate material movement using sensors or other guidance systems that support autonomous navigation while performing material handling tasks.
- Conveyor Systems: Transport materials from one location to another, either horizontally or vertically, using moving components such as belts, rollers or chains.
- Robotic Delivery Systems: Their flexibility allows uninterrupted material movement between workstations and storage areas. They can operate 24/7 at a consistent pace to reduce bottlenecks.
4. Industrial Trucks
Move heavy loads quickly and efficiently from one place to another, horizontally or vertically. They can transport materials faster than manual methods.
- Pallet Trucks: Move pallets and other heavy loads over short distances. They are highly maneuverable and can move materials in tight spaces or narrow aisles.
- Hand Trucks: Transport heavy objects and are commonly used in warehouses, retail stores and other industrial settings. They are simple to operate and require minimal training
- Platform Trucks: Carry heavy or bulky loads and reduce the number of trips workers need to make to move materials. They’re relatively inexpensive compared to other industrial trucks, making them an affordable option.
- Order Pickers: Allow workers to pick orders from shelves and racks in warehouses or distribution centers. They’re commonly used in large-scale operations where picking efficiency is crucial.
Compare Top Warehouse Management Software Leaders
The Role of Warehouse Layout
Warehouse layout plays a critical role in material handling operations. By designing an efficient warehouse layout, businesses can significantly improve their material handling operations and remain competitive in the current market.
By utilizing the available space effectively, warehouses can store more materials and reduce the need for additional storage facilities. This approach can save money and improve overall warehouse efficiency.
A well-planned warehouse layout promotes smooth and efficient material flow by minimizing travel distances, reducing bottlenecks and improving accessibility to materials. It minimizes material location and retrieval time and allows workers to focus more on value-added activities such as picking, packing and shipping.
Warehouse layouts should be flexible enough to accommodate changes in business requirements. A modular layout provides the flexibility to adapt to changing inventory requirements and business needs, ensuring optimal space usage and resources. Such changes provide opportunities to improve material handling operations.
Best Practices
Making the most of your material handling equipment involves implementing efficient and safe practices that maximize productivity, reduce downtime and extend equipment lifespans. Here are some best practices to consider:
Invest in Automated Systems
They can operate faster and more consistently than manual systems, increasing efficiency and productivity. This process results in faster throughput times, reduced labor costs and increased output. It also reduces workplace accidents and injuries by eliminating the need for workers to perform manual material handling tasks.
Implement a WMS
Implementing a WMS help businesses make the best of their material-handling equipment in various ways. It tracks inventory and provides real-time stock level visibility. It also reduces stockouts, overstocking and spoilage risks while improving inventory accuracy and customer satisfaction. A WMS can generate data for analysis to identify improvement areas, optimize processes, reduce costs and accordingly make business decisions.
Organize Your Warehouse Space
A well-organized warehouse reduces accidents and injuries by providing clear pathways for material handling equipment and minimizing clutter. It lowers operational costs and minimizes additional storage space. However, organizing a warehouse isn’t easy. Consider following these tips to get started:
- Analyze Inventory
- Create a Floor Plan
- Designate Specific Areas
- Use Vertical Space
- Implement a Labeling System
- Maintain a Clean and Organized Workspace
Incorporate RFID Tags and Scanners
Track inventory more effectively by providing real-time inventory data, location, movements and more. They provide faster and more efficient inventory tracking by reading multiple tags simultaneously. While RFID technology is less prone to errors compared to manual data entry, they’re likely to reduce multiple mistakes.
Improve Putaway
Implement standardized processes and automation (barcodes and RFIDs) to minimize errors during the putaway. Consider assigning specific item locations based on size, weight and usage frequency. Group similar items together to reduce the time it takes to retrieve them. Place frequently used items in accessible locations using forklifts, pallet jacks and conveyors.
Compare Top Warehouse Management Software Leaders
Next Steps
Warehouse material handling is a critical aspect of warehouse management, and efficient equipment utilization can improve the productivity and profitability of warehouse operations. With the right equipment and a well-organized warehouse layout, businesses can streamline their material handling processes, reduce errors and maximize space utilization.
However, warehouse management software integration is necessary to achieve optimal efficiency, in today’s digital age. It can help automate and optimize warehouse operations, provide real-time inventory tracking and streamline order fulfillment processes.
Our free requirements template makes it easy to outline your specific needs and compare leading vendors.
How has warehouse material handling helped your business? Tell us in the comments!