There are many material handling challenges that arise on a daily basis. But what if you could transform these obstacles into opportunities for growth and efficiency?

In this blog, we will identify the most pressing challenges within the industry and explore effective strategies to address and overcome each, paving the way for enhanced operational success.

Supply Chain Disruptions
Supply chain disruptions, such as delays, product shortages, and transportation issues, significantly affect the material handling industry. These disruptions can lead to inventory shortages or inefficiencies in delivery.

Businesses should focus on collaborating with multiple suppliers and diversify sources for key materials and products to reduce the risk of relying too heavily on one single source. Improved forecasting and inventory management are also crucial, as utilizing advanced forecasting tools helps predict demand more accurately, ensuring optimized stock levels, preventing both shortages and excess inventory. Furthermore, building agility into operations ensures businesses can swiftly adapt to any disruptions to keep the supply chain running smoothly.

Labor Shortages and Workforce
The shortage of skilled workers is becoming increasingly evident. As experienced employees retire, they carry with them a wealth of knowledge and expertise, which further expands the gap in the workforce. Younger generations are increasingly steering away from traditional, physically demanding roles, opting instead for careers that align with the digital age. This shift has left industries scrambling to fill crucial positions. Adding to the challenge is the high employee turnover rate, disrupting operations and increasing recruitment costs. Companies must continuously innovate and adapt to effectively attract and retain the talent they need, which is essential for their growth.

To address this challenge, businesses can invest in automated material handling systems (i.e., robotic arms, conveyors, and automated guided vehicles (AGVs)) to reduce reliance on manual labor and enhance efficiency. Additionally, providing continuous training programs for employees to improve their skills in operating advanced equipment and adapting to innovative technologies can help reduce turnover while offering opportunities for career advancement. Creating an attractive work environment by offering competitive wages, flexible work hours, and ensuring a safe, ergonomic workspace further contributes to higher job satisfaction and employee retention.

Costly Inefficiencies
Inefficient material handling processes can lead to increased operational costs, including labor, equipment maintenance, and energy usage. Poorly optimized workflows can slow down the movement of goods, leading to delays and added expenses. Streamlining processes are essential for eliminating waste and optimizing operations. This includes restructuring workflows, reducing unnecessary product handling, and improving inventory turnover. Investing in advanced technologies software like warehouse management systems (WMS) can enhance overall efficiency by providing real-time data, improving decisions and reducing errors. Implementing automated material handling systems, such as automated storage and retrieval systems (AS/RS), conveyors, and sortation systems, can further reduce human error, increase speed, and lower labor costs. While the initial investment is high, long-term savings and efficiency gains outweigh the costs.

Safety and Compliance
Material handling environments present significant hazards, including the potential for accidents involving equipment-related injuries, falling objects, or improper material handling. Moreover, businesses must comply with ever-evolving health and safety regulations.

It is important to prioritize regular safety training by continuously educating workers on proper handling techniques, equipment usage, and emergency procedures, with a specific focus on any high-risk areas (i.e., forklift operation or managing hazardous materials). Implementing safety technologies, such as sensors and cameras, can help monitor both equipment and workers in real-time, reducing AGV and forklift accidents with collision detection systems. And, investing in compliance management systems also ensures that safety regulations, audit requirements, and changes in any local, national, or international standards are effectively tracked to maintain full compliance.

By addressing these challenges with careful and strategic planning, technology enhancements, and simplified operational procedures, companies can reduce risk and improve efficiency in their material handling operations. Moreover, adopting these forward-thinking strategies not only outpaces competitors in the industry, but also achieves exceptional outcomes and boosts productivity.

Author: Heather Connors, Director of Marketing, CHC