Automated Material Handling: Optimizing Logistics with Robotics and Software

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 mitigate the risks of human error and workplace injuries while shifting their focus toward strategic growth initiatives.

The capabilities of AMH have been propelled into a new era by a "trinity" of sophisticated technologies that function as the muscle, brains, and nerves of the operation:

• Robotics (The Muscle): This technology provides the physical power, performing tasks that range from lifting heavy loads to precision picking and placing with unwavering consistency.
• Software & AI (The Intelligence): These bring smart decision-making to operations. They enable systems to utilize data to predict maintenance needs and optimize workflows in real-time.‍
• IoT (The Connectivity): Internet of Things connectivity ensures seamless communication between machines and management systems, offering unprecedented visibility into every aspect of the process.

Together, these advancements allow AMH systems to adapt dynamically to changing operational demands, improving throughput, accuracy, and reliability. As businesses strive to meet growing expectations for rapid delivery and customized production, automated material handling stands as a cornerstone technology that redefines what’s possible in the modern supply chain.

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.

Summary: AMH systems provide measurable ROI by doubling throughput, slashing error rates, improving safety, and significantly lowering long-term operating costs. 

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 equipment

Selecting the right technology is critical for optimizing your specific warehouse or manufacturing environment. The following table outlines common systems and their ideal applications.

Conveyor systems

How it works: Conveyor systems utilize belts, rollers, or chains to transport materials across a facility in a continuous flow. They are often integrated with sortation systems and storage solutions to create a cohesive workflow.

Best used for: Environments requiring the consistent movement of goods from point A to point B, such as assembly lines or packaging areas. Because reconfiguring this equipment is expensive, they are best for processes that are predictable and unlikely to change frequently.

Automated guided vehicles (AGVs)

How it works: This automated material handling equipment consists of mobile robots that transport materials around a facility using wires, magnets, or lasers for navigation. Unlike conveyors, AGVs can move freely across the floor.

Best used for: Repetitive transport tasks between fixed points, such as moving raw materials to production or finished goods to storage. They are ideal for low-to-moderate throughput operations where layout flexibility is required.

The AutoStore system (cube storage)

How It works: AutoStore represents the modern evolution of AS/RS, moving beyond legacy crane-based equipment to a solution known as Cube Storage. It maximizes space utilization by stacking Bins vertically in an ultra-dense Grid, eliminating the air and wasted aisle space common in legacy systems. Wireless Robots operate on top of the Grid, digging for and retrieving specific Bins for order fulfillment.

Best used for: Retail, e-commerce, and parts distribution sectors that require maximum storage density and rapid retrieval to handle high volumes of small-parts orders. Its scalability and flexibility make it an excellent choice for businesses looking to quadruple storage capacity within their existing footprint.

Automated storage and retrieval systems (AS/RSs)

How it works: Traditional AS/RS utilizes cranes to retrieve loads from racking aisles. These systems automate the placement and retrieval of loads from specific storage locations.

Best used for: Warehouses demanding high-density storage and reduced manual labor. While legacy AS/RS is suitable for pallet handling, newer technologies are often required for small-part handling.

Shuttle systems

How It works: Shuttle systems use autonomous vehicles that move along tracks within a racking structure to store and retrieve items.

Best used for: High-density storage in tall buildings where high throughput is required. They are faster than traditional crane-based AS/RS and are often found in e-commerce fulfillment centers and cold storage warehouses handling a variety of load types.

Robotic picking systems

How it works: These systems employ robotic arms equipped with advanced vision systems and grippers to identify, pick, and place individual items.

Best used for: Order fulfillment centers focused on reducing reliance on manual labor for repetitive picking tasks. As gripper technology advances, this equipment is becoming essential for handling a wider variety of SKUs.

Sortation systems

How it works: Sortation systems use diverters, trays, or cross-belt mechanisms to rapidly separate items based on their final destination.

Best used for: Logistics hubs and distribution centers where speed and accuracy in sorting packages for outbound shipping are critical.

Palletizing and de-palletizing robots

How it works: Palletizing equipment is designed to automatically stack goods on pallets in predefined patterns, while de-palletizers automate the breakdown of these items.

Best used for: Manufacturing and distribution sectors where same-sized goods need to be moved for shipping or storage. Note that reliably palletizing items of various sizes into a "rainbow pallet" remains a challenge for current vision technology; therefore, uniform de-palletization is often the more straightforward application.

Voice- and light-directed picking

How it works: These systems guide warehouse operators through picking processes using voice commands or light signals (pick-to-light) to indicate item locations and quantities.

Best used for: Facilities looking to optimize picking processes without significant heavy infrastructure changes. Note: As full automation becomes more accessible, these semi-automated systems are receiving less R&D investment compared to robotics.

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Carousel and vertical lift module systems

How it works: Carousel systems (horizontal or vertical) and VLMs rotate shelves or trays to deliver items directly to the operator, reducing travel time and improving ergonomics.

Best used for: Operations where space optimization and quick access to parts are essential. However, as items cannot be shared between carousels, they are best deployed in smaller-scale operations rather than massive fulfillment centers.

Summary: Choosing the right automated material handling system depends on your specific needs — such as the type of goods, volume, and task complexity. Assessing these factors will guide you toward the solution that best enhances efficiency and accuracy.

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.

Summary: Successful implementation requires a clear assessment of needs, selecting scalable technology, and ensuring tight software integration.

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.

Summary: While costs and integration are valid concerns, choosing modular, scalable, and proven solutions mitigates risk and ensures long-term profitability.

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.

Ready to transform your operation? Contact us at AutoStore today.

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.