The global warehousing market is on the rise. According to Beroe Inc, the global demand for a warehouse was significantly increased in , and the estimation is that the warehousing market will reach $285 billion in and $326.3 billion by .
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This means that staying competitive within the warehousing industry requires increased efficiency for logistics and operations. One of the main trends that started shaping the warehouse of the future is most certainly automation and usage of advanced technology on the warehouse floor.
Technology is helping that goods are packaged and transported efficiently and safely, and demand for technology driven material handling equipment is also increasing.
Though the warehouse industry was highly dependent (and still is) on human labor &#; according to Interact Analysis &#; material handling robots are going to penetrate the market and reduce the need for workers.
Also, by implementing material handling robots like automated guided vehicles (AGVs) or autonomous mobile robots, warehouse managers will be able to cut costs, increase safety and allow workers to focus on more essential tasks.
Consider these five ways in which material handling equipment can impact warehouse efficiency.
Warehouses can leverage automation to enhance efficiency in their operations leading to lower costs. These can be robots, smart machines, automated guided vehicles or lightweight material handling equipment.
A warehouse facility should identify the different types of material handling equipment and devise a plan to identify and use the right one to enhance their operations. A system that coordinates inputs and outputs is the most effective in cutting costs.
According to Inbound Logistics, labor costs make up about 65% of warehouse operational budgets. The suitable material handling equipment will reduce labor costs and, at the same time, enhance safety, reducing costs associated with workplace injuries.
The correct warehouse material handling equipment can reduce costs in the following ways:
It helps when a warehouse is organized to provide the best flow of materials. Ideally, the material should be accessible with few risks and errors in the shortest time possible. But how does someone achieve this when they are handling so much material?
Automation and material handling equipment allow people to streamline their warehouse in several ways:
Management of warehouse inventory consists of receiving, storing and tracking inventory. How materials are managed in a warehouse influences efficiency and costs. Here are a few tips to help enhance inventory management in a warehouse:
Material handling equipment allows warehouses to incorporate automated storage and retrieval systems (AS/RS) within their facilities. This system consists of various machine control systems that automatically store and retrieve items from set storage locations.
In AS/RS, inventory is stored on portable shelving, which can easily be retrieved from storage and transported to an employee access area by a fleet of autonomous mobile robots (AMRs).
After the employee picks the required items from the shelf, the AMRs return the others to storage. The AMRs are equipped with sensors, scanners and Internet of Things (IoT) devices to keep track of the items they distribute within the facility. The system works with speed, precision and accuracy, enabling enhanced inventory visibility.
Material handling equipment is essential in complex distribution environments. The equipment, along with customized warehouse management systems (WMS) that manage them, have enhanced the efficiency of warehousing and distribution. The integration between material handling equipment and Warehouse Execution Systems has enabled accurate and timely reports on inventory levels and forecasting, which are essential in inventory management and control.
Most of the material moved across a warehouse floor is bulky and heavy. Moving materials without the right equipment can cause injuries to employees or damage the materials.
According to the U.S. Bureau of Labor Statistics, the average number of injuries per 100 full-time workers in the warehousing industry was 4.8 in . Providing suitable material handling equipment can improve safety and significantly reduce accidents and injuries on the warehouse floor.
Heavy lifting can potentially cause lifelong injuries. Therefore, managers must help reduce the number of materials workers handle manually to reduce potential hand and back injuries.
Some materials, especially chemicals, could be light but potentially hazardous to humans. Warehousing facilities should provide suitable types of equipment that limit human contact with those materials. Automated conveyor belts that use integrated automation systems are ideal for handling hazardous materials.
Material handling equipment can also minimize damage to the facility floor, walls or other machines and equipment within the facility. Heavy and bulk material can easily damage the floor or walls during transportation if they are not handled correctly. Warehouses should provide the ideal equipment for handling materials.
It has been estimated that employers pay almost $1 billion per week for direct workers&#; compensation costs, including direct and indirect costs. Direct costs include workers&#; compensation payments, medical expenses and costs for legal services.
Examples of indirect costs include loss in productivity, employee morale, training new workers, accident investigation and implementation of enhanced safety policies.
As mentioned, implementing the right material handling equipment on the plant or warehouse floor will help workers to perform their tasks faster and more efficiently, which can lead to increased employee morale.
Moreover, by investing in material handling equipment like AGVs, there can be less employees but more skilled workers &#; employers can offer more competitive salaries and therefore, a much more attractive workplace. Employers should offer a workplace that is safe, where workers are properly trained to work with the latest technology.
In the long run, investing in this way is becoming more and more profitable because one of the greatest challenges plant or warehouse managers face is solved and that is a labor shortage. The warehouse and transportation industry had a record 490,000 fewer workers than needed in in the U.S. and according to Forbes, this gap will only widen.
Having the right technology, safe and smart workplace and competitive wages is a way to tackle this challenge and be ready for the what future brings.
According to Fortune Business Insights, the global market for material handling equipment is expected to reach 300.21 billion U.S. dollars by at a compound annual growth rate of 5.5%.
The technology continues to improve the performance, design and functionality of material handling equipment, which also impacts warehouse efficiency.
Warehouses will have technologies that allow people to maintain a real-time and accurate digital inventory. The future will have smart warehouses, where automation is seamlessly integrated into all warehousing processes.
While warehouses are known to be busy work environments with constant movement, they don&#;t have to be chaotic or labor-intensive, as long as the proper systems are in place.
With an organized material handling system and specialized equipment, warehouse operators can increase productivity and efficiency while keeping employees safe from potential accidents and streamlining the movement of goods from one stage to the next.
But what is material handling exactly, and what does it entail?
We&#;re about to find out. In this article, we&#;ll cover all you need to know about material handling, including how it&#;s implemented into the supply chain, the types of equipment used and the benefits of integrating it into your warehouse.
Plus, we&#;ll share how our automated solutions fit into the material handling puzzle to help streamline your warehouse operations.
Material handling is the movement of materials and goods from one location to another. It includes protecting, storing, and controlling the materials, from manufacturing to distribution.
Material handling can be used across industries, but is typically utilized in warehousing, where goods need to be securely stored, retrieved, and shipped.
Material handling equipment utilizes manual, semi-automated, and automated equipment to assist the movement and storage of materials within the warehouse.
Material handling equipment is grouped into four main categories: storage and handling, bulk material, industrial trucks and engineered systems. Let&#;s take a look at each one.
Storage and handling equipment secures your goods while they aren&#;t being used or waiting for the next stage in the supply chain process.
Storage and handling equipment can keep materials for short or long periods of time, depending on your warehouse&#;s needs.
Storage and handling equipment includes:
Bulk handling material equipment stores, controls and transports loose form materials in large quantities.
Loose form materials can include liquid, food and minerals, such as stones and rocks, and metal items, such as bolts and nails.
Bulk handling equipment includes:
Industrial trucks are vehicles that transport goods and materials within your warehouse and are also utilized to load or unload heavy objects.
There are several different types of industrial trucks. Some have forks or a flat surface to lift products, while others need additional equipment for lifting. Industrial trucks can range from small, hand-operated machines to large, drivable equipment.
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Industrial trucks include:
Engineered or automated systems are solutions that incorporate technology supported by computers and robots to store and transport goods
An automated system is generally made out of several units, controlled by a management software application.
Engineered systems include:
This is where Modula comes in. At Modula, we provide the most advanced automated storage and retrieval systems to increase productivity and accuracy throughout your warehouse.
Our Vertical Lift Modules, Horizontal Carousels and Order Picking Solutions are designed to optimize space, reduce errors and speed up operations to create a seamless material handling process, from start to finish &#; more on this below!
GF MACHINING SOLUTIONS: Vertical Storage Units Fully Integrated with ERP and Modula WMS.
An effective material handling system allows your company to have the necessary stock in smaller spaces where possible, reduce time spent on internal operations (such us transport and picking), control inventory in real-time, reduce operational costs and optimize the overall flow of goods in your facility.
From preventing workplace accidents to saving you money, here are four reasons why material handling is key to implement in your warehouse.
According to a recent survey, overexertion is the most disabling United States workplace accident in , with falls and being struck by an object ranking second and third, respectively.
With materials handling systems and the proper equipment, employees aren&#;t required to lift heavy items and reach high storage areas.
Job discomfort causes frustration, low morale and loss of motivation in employees.
By utilizing materials handling systems, employees are released from labor-intensive (for example, lifting heavy items) and monotonous tasks that will help them reduce stress levels and achieve overall satisfaction with work.
Want your employees to focus on more pressing tasks such as quality control assurance?
Material handling equipment can help your employees transport, locate, and pick inventory, allowing them to be more competent and productive with other tasks.
According to a report, the worldwide expenditure of warehousing companies is tallied at a whopping &#;300 billion each year.
To prevent spending more on equipment damage, invest in quality solutions and educate your employees on the proper equipment maintenance.
From manufacturing to distribution, material handling is key to ensure your materials and goods are safely transported from one stage of the supply chain to the next.
Here&#;s how material handling is implemented in the supply chain:
Researchers and professionals at the Material Handling Institute created a document containing the 10 principles of material handling to create a safer and more productive materials handling system.
From reducing unnecessary manual work to maximizing available space and tracking inventory in real-tine, Modula&#;s automated solutions are designed to help you adhere to these principles to streamline your warehouse operations.
1. Planning: Establish a clear plan for your material handling system. Your plan should identify which materials will be transported, which equipment will be used and where your materials will be stored.
2. Standardization: Standardize your process and equipment to achieve predictable results while considering flexibility. For example, if you have boxes of the same size, your team should anticipate future changes regarding box sizes, so you can choose equipment that can efficiently transport smaller or larger boxes in the future.
3. Work: Reduce unnecessary work by using equipment that will minimize or eliminate repetitive tasks.
4. Ergonomics: Acknowledge your employees&#; restrictions and capabilities by investing in ergonomic equipment to ensure safety in the workplace.
5. Unit load: Utilize unit loads such as containers and pellets to reduce effort and walking time in the warehouse.
6. Space Utilization: Organize your warehouse to maximize your available warehouse space. You can ensure your warehouse is organized by clearing warehouse aisles from clutter, stacking inventory to utilize vertical height and grouping products in the same category.
7. System: Integrate tracking tools so you can quickly identify materials and products at every stage of the system.
8. Environment: Use equipment that will reduce energy consumption and prevent greenhouse gas emissions. For example, using an electric forklift is more sustainable than using a liquid-propane powered truck.
9. Automation: Implement automation in warehouse processes such as picking and retrieval to lower costs and boost employee productivity.
10. Life Cycle Cost: Utilize a comprehensive analysis of life cycle costs on material handling equipment to ensure durability and sustainability. Consider different criteria, including programming, installation, setup, operation, repair and maintenance, reuse value and disposal.
At Modula, we take material handling to the next level using the most advanced automated storage and retrieval systems. Our automated solutions boost accuracy and productivity, improve employee safety and reduce storage space requirements.
Modula Vertical Lift Modules
Modernize your warehouse operations by going vertical with three options:
Our Vertical Lift Modules allow you to:
Modula Horizontal Carousels
Modula Horizontal Carousels turbocharge your warehouse operations when ceiling height is limited.
Our Horizontal Carousels allow you to:
Modula Warehouse Management Solutions
Pair your automated storage systems with our warehouse management solutions to boost productivity, accuracy and efficiency.
Warehouse management solutions offer better control over inventory tracking, materials handling, process analysis and preventive maintenance guidance.
Our smart solutions allow you to operate in multi-order and batch modes to increase productivity without compromising your order fulfillment process for larger than usual orders.
Modula Cloud is a support and remote warehouse management platform that collects data from your AS/RS wherever they are in your warehouse.
With Modula Cloud, you can:
More than just the movement of goods and products, material handling is a crucial element in your warehouse operation because it provides a standardized process of handling and transportation from manufacturing to distribution.
At Modula, our automated solutions are designed to integrate into each stage of the supply chain and help you follow the key principles of material handling to ensure a seamless operation.
Take your material handling to the next level with the most advanced storage and retrieval systems from Modula.