An Easy Guide to Automated Material Handling

Key takeaways:

• Learn what automated material handling is‍
• Learn how automated material handling systems boost efficiency by streamlining logistics and reducing manual labor‍
• Explore why automated material handling increases safety and precision through integration of robotics and software‍
• Find an example of how the AutoStore automated material handling system reduces operational costs‍
• Understand how advanced software technologies and internet of things (IoT) enable adaptation
• Learn how solutions like robotics-as-a-service (RaaS) ensure automated material handling (AMH) evolves with your business needs

What is automated material handling?

Automated material handling (AMH) refers to the use of automated systems and equipment to transport, sort, organize, and store materials within manufacturing facilities, warehouses, and distribution centers. At its core, automated material handling is designed to streamline complex logistic workflows, drastically reduce manual labor, and significantly enhance operational efficiency and productivity. By automating routine tasks, businesses can focus on strategic growth initiatives while minimizing the risks of human error and workplace injuries.

The advent and integration of sophisticated technologies such as robotics, AI, and IoT have propelled automated material handling systems into a new era. Robotics technology provides the muscle power, performing tasks ranging from lifting heavy loads to precision picking and placing, all with unwavering consistency. Software and AI, on the other hand, bring intelligence to these operations, enabling systems to make data-driven decisions, predict maintenance needs, and optimize workflows in real-time. Meanwhile, IoT connectivity ensures seamless communication between machines and management systems, offering unprecedented visibility into every aspect of the material handling process.

Together, these technological advancements enable automated material handling systems to adapt dynamically to changing operational demands, significantly improving throughput, accuracy, and reliability. As businesses strive to meet the growing expectations of rapid delivery and customized production, automated material handling stands as a cornerstone technology, redefining what's possible in the modern supply chain landscape.

Advantages of automated material handling systems

The deployment of automated material handling systems brings a myriad of benefits that collectively drive operational excellence and competitive advantage. Below, are some of the key advantages:

Increased efficiency

Automated material handling systems streamline warehouse and manufacturing operations, allowing for faster processing times and higher throughput. By automating tasks such as sorting, picking, and transporting materials, businesses can achieve a continuous flow of operations, minimizing downtime and bottlenecks. American manufacturer SMC more than doubled their daily throughput to 12,000 order lines per day after adopting AutoStore, allowing rapid same-day processing without requiring operator overtime. Approximately 93% of their volume is now same-day orders.

Improved worker safety

One of the most significant benefits of automated material handling systems is the enhancement of workplace safety. By taking over repetitive, physically demanding tasks, these systems reduce the risk of injuries related to manual handling, fatigue, and working at elevation on lifts.

Reduced operational costs

While the initial investment in automated material handling technology may be significant, the long-term savings on labor, inventory, and maintenance costs are substantial. Automated systems require fewer manual interventions, lowering the dependency on labor and associated costs. Additionally, the precision and accuracy of AMH systems reduce waste and damage to materials, further cutting down expenses.

Manufacturers can experience massive reductions in operational costs within the first year of adopting an automated storage and retrieval system, highlighting the cost-saving potential of AMH. Davcor, an Australian company that designs, manufactures, and wholesales locks and access control systems, reduced their monthly electricity bill from $9,000 to $1,200 by adopting AutoStore.

Enhanced accuracy and reliability

Automated material handling systems are designed to perform tasks with high accuracy and consistency, minimizing errors in order fulfillment and inventory management. The use of sophisticated sensors, scanners, and software ensures that materials are accurately tracked and handled, leading to improved inventory accuracy and customer satisfaction. A study on the implementation of automated systems in a distribution center showed a 99.5% accuracy rate in order picking, a significant improvement from the manual process.

PUMA uses its AutoStore in Indianapolis to fulfill more than 100,000 wholesale and e-commerce orders within the same day in the United States, covering all their 80,000+ SKUs with 99.8% accuracy.

From boosting efficiency and safety to reducing costs and enhancing accuracy, automated technology is a game-changer in the logistics and manufacturing sectors, driving innovation and excellence in the global supply chain. Let’s continue our exploration of the different types of automated material handling systems, since they all offer different applications and benefits.  

Types of automated material handling systems

Automated material handling systems come in various forms, each designed to optimize specific aspects of warehouse and manufacturing operations. Understanding the different types and their applications is key to selecting the right solution. Here’s an overview:

Conveyor systems

Description: Conveyor systems are widely used for transporting materials across a facility in a continuous flow. They can be customized with various belts, rollers, and chains to handle different product sizes and weights. Conveyors are typically integrated with sortation systems and automated storage and retrieval systems (AS/RS).

Applications: Ideal for assembly lines, packaging operations, and any environment requiring the consistent movement of goods from one point to another. Conveyors are a good choice where processes are consistent and predictable, as reconfiguring conveyors is a large expense. They can enable high system throughput with the proper selection of picking and sortation technology.

Automated guided vehicles (AGVs)

Description: AGVs are mobile robots that transport materials around a facility. They can navigate by wires, magnetic strips, or image-based/laser navigation, and are adaptable to changing layouts and operations.

Applications: Best suited for repetitive transport tasks between fixed points, such as moving raw materials to production areas or finished goods to storage. For low-to-moderate throughput operations, especially those that are anticipating layout changes, they may be better suited to moving your material than conveyors.

Robotic picking systems

Description: These systems use robotic arms equipped with vision systems and grippers to pick and place items. They can be programmed to handle a variety of tasks with precision and speed. While not yet widely deployed, they will become increasingly more utilized as their cost decreases and their capabilities increase.

Applications: Ideal for order fulfillment centers and warehouses with consistent product types, especially where picking accuracy and reducing manual labor are priorities. As vision systems become more capable of handling item segmentation and gripper technology improves, the range of products that can be handled by robots will expand.

Sortation systems

Description: Sortation systems rapidly and accurately sort a wide variety of items to specific destinations, using conveyors, diverters, trays, and belts. They are key in distribution centers and cross-docking operations to organize outgoing shipments.

Applications: Perfect for logistics centers and distribution hubs where speed and accuracy in sorting packages to different destinations are critical. Shoe sorters often consolidate larger items like cases, totes, and cartons to designated dock doors. Unit sorters like cross-belt, tilt-tray, bomb-bay, and pouch sorters are better suited to handling individual items for e-commerce applications.

Palletizing and de-palletizing robots

Description: Palletizing robots are designed to automatically stack goods on pallets in predefined patterns, optimizing space and improving stacking accuracy. They can handle a variety of products and pallet configurations. De-palletizers automate the breakdown and unitization of palleted items.

Applications: Ideal for manufacturing and distribution sectors where same-sized goods need to be palletized for shipping or storage, enhancing speed and reducing labor costs. Reliably palletizing items of various sizes into a “rainbow pallet” with multiple layers of various SKUs can be challenging with current vision technology and buffering requirements. For this reason, de-palletization is often more straightforward.

Automated storage and retrieval systems (AS/RSs)

Description: AS/RSs are high-density storage solutions that retrieve and store items using automated mechanisms and controls. They “range” from vertical lift modules (VLMs) to horizontal carousels and everywhere in between. AS/RSs are known for maximizing space utilization and increasing picking efficiency.

Applications: Best suited for warehouses and distribution centers with high-volume storage needs, limited space, and/or labor challenges. AS/RS are best for businesses aiming to improve inventory control and reduce retrieval times.

AutoStore system

Description: The AutoStore system, being a highly innovative automated storage and retrieval solution, is known for its unique design that maximizes space utilization by stacking Bins vertically in a Grid and using Robots to store and retrieve items. The Robots operate on the top of the Grid, navigating to the specific Bin locations needed for order fulfillment.

Applications: Particularly well-suited for retail, e-commerce, and parts distribution sectors that require dense storage and rapid retrieval to handle a high volume of orders. Its scalability and flexibility make it an excellent choice for businesses looking to increase storage capacity and improve picking efficiency within their existing footprint.

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Shuttle systems

Description: Shuttle systems use autonomous vehicles that move along tracks to store and retrieve items in a racking system. They offer high-density storage and are faster than traditional AS/RS. They offer high-density storage in tall buildings and are faster than traditional AS/RSs like cranes and VLMs.

Applications: Ideal for environments requiring high throughput and ability to handle a variety of load types and sizes, such as e-commerce fulfillment centers and cold storage warehouses.

Voice- and light-directed picking

Description: Voice picking systems and pick-to-light systems guide warehouse operators through picking processes using voice commands or light signals, reducing errors and improving picking speed. Typically employed within pick modules or at pick-wall/put-wall locations, these systems were once state-of-the-art. As pick modules and pick-walls/put-walls are selected less often, these systems may not receive further R&D investment.

Applications: Suitable for warehouses and distribution centers looking to optimize their picking processes and improve worker productivity without significant infrastructure changes.

Carousel and vertical lift module systems

Description: Carousel systems, both horizontal and vertical, rotate items to the operator, reducing travel time and improving ergonomics. They efficiently use vertical space and can be automated for increased speed.

Applications: Effective in distribution centers, manufacturing plants, and any operation where space optimization and quick access to parts or materials are essential. As items can’t be shared between carousels, they are best deployed in smaller-scale operations where not many systems are required.

Choosing the right automated material handling system depends on your operation's specific needs, such as the type of goods handled, the volume of materials processed, and the complexity of the tasks. Assessing these factors will guide you in selecting the most suitable AMH solution to enhance efficiency, accuracy, and productivity in your operations.

Implementing automated material handling systems: A step-by-step guide

When implementing an automated system, a structured approach is essential to ensure success. Here’s a step-by-step guide to help you navigate the process:

1. Assessment of needs

Identify operational challenges: Begin by pinpointing areas in your operations that could benefit from automation, such as bottlenecks, high labor costs, or accuracy issues.

Define objectives: Clearly articulate what you aim to achieve with an AMH system, whether it's improving throughput, enhancing accuracy, or reducing operational costs.

Evaluate current infrastructure: Assess your existing setup to understand how an automated system could integrate with your current operations.

2. Selection of technology

Research options: Explore the different types of automated material handling systems available and assess their suitability for your specific needs.

Consult with experts: Engage with vendors or consultants to gain insights into the latest technologies and best practices.

Consider scalability and flexibility: Choose a solution that not only meets your current needs but also has the capacity to grow and adapt as your business evolves.

3. Integration with existing systems

Plan for integration: Ensure that the chosen system can seamlessly integrate with your existing warehouse management system (WMS) and other critical software.

Data synchronization: Establish protocols for data exchange and synchronization between systems to maintain accurate and consistent information across your operations.

4. Staff training and change management

Develop a training program: Create comprehensive training programs for staff to ensure they are proficient in operating the new AMH system.

Emphasize change management: Address any resistance to change by communicating the benefits of the new system and involving staff in the transition process.

5. Testing and implementation

Pilot testing: Conduct a pilot test of the system in a controlled area of your operations to identify any issues and make necessary adjustments.

Rollout: Gradually implement the system across your operations, monitoring performance and making improvements as needed.

6. Continuous evaluation and optimization

Monitor performance: Regularly assess the system's performance against your objectives, identifying areas for improvement.

Stay updated on advances: Keep abreast of technological advancements in AMH to ensure your system remains effective and competitive.

During implementation, challenges may arise. It is crucial to flag those and understand how to overcome them with proper planning, preparation, and execution.

Challenges and solutions in automated material handling

The adoption of automated material handling systems, while beneficial, comes with its set of challenges. Understanding these obstacles and knowing how to navigate them can significantly enhance the implementation process and system efficiency. Here are common challenges and their solutions:

High initial investment

Challenge: The cost of acquiring and installing AMH can be substantial, deterring some businesses from making the investment.

Solution: Focus on the long-term ROI rather than just the upfront costs. Utilize financial planning tools and consider financing options or leasing to spread out expenses. Additionally, phased implementation can help manage costs by prioritizing high-impact areas first. One option is the robotics as a service (RaaS) business model that allows companies to rent robotic equipment on a temporary or ongoing basis, rather than investing capital.

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Integration complexities

Challenge: Integrating new systems with existing warehouse management systems and workflows can be complex and time-consuming.

Solution: Choose solutions known for their compatibility and flexibility. Engage with vendors who offer comprehensive integration support and work closely with your IT team to ensure smooth integration. Consider starting with a pilot program to identify and address integration challenges on a smaller scale.

Technological adaptation

Challenge: The workforce may be resistant to adopting new technologies, and there can be a learning curve associated with operating advanced systems.

Solution: Implement a robust change management strategy that includes clear communication of the benefits, comprehensive training programs, and ongoing support. Highlighting success stories and involving employees in the transition process can also foster a more positive attitude toward change.

Maintenance and upkeep

Challenge: Advanced automated material handling systems require regular maintenance and updates to operate efficiently, which can add to the operational costs.

Solution: Develop a maintenance schedule and train in-house staff on basic upkeep procedures. Consider service agreements with vendors for more complex maintenance tasks and system updates to ensure optimal performance.

Scalability concerns

Challenge: Some businesses worry that the system they implement today might not meet their future growth needs.

Solution: Select scalable automated material handling solutions that can grow with your business. This includes modular systems that can be expanded or reconfigured as your operational needs evolve. Regularly review your automated material handling system’s performance and scalability options with your vendor to stay ahead of growth challenges.

By anticipating these challenges and implementing the outlined solutions, businesses can maximize the benefits of automated material handling systems. Drawing on industry insights and success stories can also provide valuable lessons and best practices, ensuring a smoother transition to automated operations.

Conclusion

In conclusion, automated material handling systems represent a transformative technology for logistics, manufacturing, and distribution sectors, offering a range of benefits that significantly enhance operational efficiency, safety, and cost-effectiveness. By leveraging advanced technologies such as robotics, AI, and IoT, AMH systems streamline complex logistic workflows, minimize manual labor, and enable dynamic adaptation to changing operational demands. These systems not only boost productivity and reduce operational costs through increased accuracy and lower labor needs but also ensure workplace safety and precision in operations.  

The scalability of AMH solutions allows businesses to evolve in alignment with their growth needs, making them a crucial component in the modern supply chain landscape. With the right approach to implementation, including thorough needs assessment, careful selection of technology, and effective integration and staff training, businesses can overcome potential challenges and fully leverage the advantages of automated material handling to achieve competitive excellence and innovation in their operations.

FAQ

What is automated material handling?

Automated material handling (AMH) refers to the use of technology and machinery to automate the tasks of moving, protecting, storing, and controlling materials within a manufacturing or distribution facility, enhancing efficiency and reducing manual labor.

What is the automation principle in material handling?

The automation principle in material handling emphasizes the use of automated systems and equipment to improve process efficiency, operational reliability, and worker safety while minimizing manual intervention and associated errors in material handling processes.

What are the three types of material handling?

The three types of material handling include manual handling, where workers physically move materials; semi-automated handling, which combines human labor with some level of mechanization; and fully automated handling, which relies entirely on automated machinery and systems without direct human intervention.

What is material automation?

Material automation, often used interchangeably with automated material handling, involves implementing automated systems and technologies to control the movement, storage, and management of materials in a facility, aiming to streamline operations and reduce costs.