Materials handling

What Is Materials handling?

Materials handling refers to the entire system and processes involved in the movement, protection, storage, and control of materials and products throughout the manufacturing, warehousing, distribution, and consumption cycle. As a critical component of supply chain management, effective materials handling aims to optimize flow, minimize damage, enhance efficiency, and reduce operational costs. It encompasses a wide array of activities, from the initial receipt of raw materials to the final delivery of finished goods to the customer.

Efficient materials handling is not merely about moving items; it's a strategic discipline within logistics that impacts productivity, safety, and profitability. It plays a significant role in determining how quickly goods can be processed and delivered, directly influencing customer satisfaction and a company's competitive advantage.

History and Origin

The concept of moving goods and materials efficiently is as old as organized labor itself, evolving from manual lifting and carrying to the use of simple mechanical aids. However, modern materials handling began to take shape with the Industrial Revolution, which introduced mass production and the need for more systematic movement of goods within factories. Key innovations included conveyor belts and rudimentary lifting devices.

A pivotal development in the history of materials handling was the invention and widespread adoption of the forklift. While early forms of industrial trucks existed in the early 20th century, the modern forklift, capable of lifting heavy loads on pallets, revolutionized warehouse and factory operations. Companies like Mitsubishi Heavy Industries (MHI), founded in 1884, played a significant role in developing and advancing material handling equipment, leveraging their engineering heritage to create robust and efficient machinery for various industries. Their extensive history includes developing internal combustion engines in 1921 and building the groundwork for forklift production in the mid-22th century, continually innovating in the field.⁷

The post-World War II economic boom further accelerated the evolution of materials handling, driven by increased consumer demand and the growth of global trade. This period saw the standardization of pallets and the development of more sophisticated equipment, leading to the integrated systems we see today.

Key Takeaways

• Materials handling involves the movement, protection, storage, and control of products throughout the supply chain.
• It is a vital aspect of supply chain management, directly influencing operational efficiency and cost reduction.
• Effective materials handling enhances productivity and contributes to workplace safety standards.
• Technological advancements, including automation and robotics, are continually transforming materials handling practices.
• It is crucial for maintaining product integrity and ensuring timely distribution.

Interpreting Materials handling

Interpreting the effectiveness of materials handling involves evaluating various metrics related to efficiency, cost, and safety. A well-executed materials handling strategy minimizes the time and effort required to move goods, reduces product damage, and optimizes storage space. Key indicators often include throughput rates, storage density, order picking accuracy, and equipment utilization. For example, a high throughput rate in a warehouse indicates efficient movement of goods from receiving to shipping, while low product damage rates reflect proper handling techniques and equipment. The goal is to achieve seamless flow with minimal bottlenecks, ensuring that materials are available precisely when and where they are needed, supporting overall operational excellence.

Hypothetical Example

Consider "Eco-Build Supplies," a company that distributes sustainable construction materials. Their materials handling process begins when a truck delivers bulk lumber, insulation, and recycled steel. Upon arrival, a forklift unloads these materials, which are then scanned and entered into their inventory management system.

The lumber is moved to a designated open yard, while insulation and steel are transported to specific sections within the climate-controlled warehouse. When a customer places an order for a new eco-friendly home, the materials handling team retrieves the required lumber using a heavy-duty forklift, insulation rolls with a narrower aisle truck, and steel beams via an overhead crane. Each item is picked, possibly bundled, and then staged in the loading dock area for pickup or delivery. The entire process, from receipt to dispatch, relies on coordinated materials handling to ensure accurate orders and timely fulfillment, avoiding delays or damage to the bulky and often fragile products.

Practical Applications

Materials handling is integral to virtually every industry that deals with physical goods, from manufacturing and retail to healthcare and e-commerce. In manufacturing, efficient materials handling ensures a continuous flow of components to assembly lines, preventing costly production delays. For example, in an automobile factory, robotic systems and conveyor belts manage the precise delivery of parts to different workstations, enhancing production efficiency.

In the retail and e-commerce sectors, sophisticated materials handling systems are crucial for rapid order fulfillment and distribution. Large fulfillment centers utilize advanced automation and robotics to sort, pick, pack, and ship millions of items daily, directly impacting delivery speeds and customer satisfaction. Amazon, for instance, has significantly invested in robotic systems, like its "Sequoia" technology, to enhance inventory management and accelerate deliveries within its vast network of warehouses.⁶ These systems combine mobile robots and robotic arms to identify and store inventory faster, thereby reducing order processing times.⁵

Furthermore, materials handling has significant implications for environmental sustainability. The U.S. Environmental Protection Agency (EPA) promotes programs like SmartWay, which is an innovative partnership between the EPA and the freight industry, to reduce greenhouse gases, decrease non-renewable resource consumption, and lower transportation costs.⁴ By optimizing routing, vehicle efficiency, and warehouse operations, companies can reduce their carbon footprint, demonstrating a commitment to greener supply chains.

Limitations and Criticisms

While essential, materials handling systems face challenges and criticisms. One significant limitation is the substantial capital expenditure required for specialized equipment, infrastructure, and advanced automation technologies. Implementing new systems can be costly and disruptive, with a long payback period that may not suit all businesses, especially smaller enterprises.

Another area of concern is workplace safety standards. Despite advancements in equipment design and workforce training, materials handling operations, particularly those involving heavy machinery like forklifts, can pose significant risks to workers. Accidents involving powered industrial trucks, such as forklifts, are a concern, making adherence to rigorous safety protocols and regulations, such as those established by the Occupational Safety and Health Administration (OSHA), critical.³ OSHA Standard 1910.178, for instance, establishes specific safety standards for the use of powered industrial trucks to prevent injuries and fatalities.²

The increasing integration of automation and robotics in materials handling also raises questions about its impact on human employment. While proponents argue that robots handle repetitive and hazardous tasks, freeing humans for more complex roles, critics express concerns about job displacement and the need for extensive workforce training to adapt to new technologies. However, companies like Amazon report training hundreds of thousands of warehouse workers in robotics operation, suggesting a shift towards hybrid human-AI roles rather than outright replacement.¹

Materials handling vs. Logistics

While often used interchangeably, materials handling and logistics refer to distinct, though interconnected, concepts within supply chain management. Materials handling specifically focuses on the physical movement, storage, and control of goods within a localized area, such as a factory floor, warehouse, or distribution center. It encompasses the equipment, systems, and procedures used for these internal processes.

Logistics, on the other hand, is a broader discipline that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements. This includes external transportation, freight management, route optimization, customs compliance, and overall coordination of the supply chain network. In essence, materials handling is a specialized function within the larger scope of logistics, focusing on the internal micro-movements that enable the macro-flow managed by logistics.

FAQs

What is the primary goal of materials handling?

The primary goal of materials handling is to optimize the movement, storage, and control of goods to minimize costs, improve efficiency, enhance productivity, ensure safety standards, and prevent product damage throughout the supply chain.

What types of equipment are used in materials handling?

Materials handling utilizes a wide range of equipment, including forklifts, pallet jacks, conveyor systems, cranes, automated guided vehicles (AGVs), robotics, racking systems, and automated storage and retrieval systems (AS/RS). The specific equipment chosen depends on the type of material, the volume of movement, and the design of the warehouse or facility.

How does materials handling impact a company's profitability?

Effective materials handling directly impacts profitability by reducing operational costs associated with labor, damaged goods, and inefficient storage. It also improves operational efficiency and throughput, enabling faster fulfillment and higher customer satisfaction, which can lead to increased sales and market share. Poor materials handling, conversely, can lead to higher cost reduction opportunities, safety incidents, and customer dissatisfaction.

Is materials handling only for large companies?

No, materials handling principles are applicable to businesses of all sizes, from small retail stores managing incoming inventory to multinational corporations with complex distribution networks. While the scale and sophistication of equipment may vary, the core objective of efficient and safe material movement remains universal. Implementing proper materials handling practices can provide significant benefits, regardless of company size.