Trends Driving the Material Handling Sector Forward

There’s been a lot of press surrounding the manufacturing resurgence and economic growth observed across North America. But behind the scenes, the material handling sector has been continuing to evolve as well. The retail landscape in particular has seen major shifts in how people are choosing to shop, creating greater need for “omni-channel fulfillment centers,” which can accommodate sales online and offline.

Consumers are leading the charge, demanding quick, seamless service in both brick-and-mortar stores and their online counterparts. If they’re at a physical store and can’t find what they need, they expect it delivered from another location. This streamlined process is convenient for buyers, but requires a high level of communication and organization among retail stores, distribution centers, and logistics companies.

In the past, it was standard for retailers to maintain three main distribution centers to accommodate brick-and-mortar stores, wholesale and reseller shipments, and small-scale e-commerce direct-to-consumer. Now, the approach is becoming outdated as merchants are tasked with creating one central omni-channel distribution center to handle all requests. The new fulfillment center landscape also requires greater investment in automated material handling systems, which can cut down on time and energy.

A recent study from ARC Advisory Group has found increasing adoption of Warehouse Management Systems (WMS), which manage all aspects of a warehouse to boost efficiency.  The market for these systems grew 6% in 2013, and is expected to continue a path of growth as increased accuracy and organization is required in fulfillment processes.

In addition to software solutions like WMS, automated material handling systems are also expected to grow in popularity. In particular, automated storage/retrieval systems (ASRS), automated case picking (ACP), conveying systems, sorters, and truck loaders will all boost productivity and reduce error when getting products from the warehouse to customers’ doorsteps.

As we see new processes develop to further streamline fulfillment and material handling operations, we’ll continue to report on these advances via our social channels. Be sure to stay in the loop by following us on Twitter and LinkedIn. And if there are other material handling breakthroughs you’d like to report on, feel free to reach out to us via those channels. We look forward to hearing from you!