Material Handling Industry Adapts to Pandemic Embraces Microfulfillment

On the first day of ProMatDX, industry experts noted that the pandemic has accelerated the transformation of the material handling industry, with surging demand creating supply chain pressure. MRO service demand is rising, and micro-fulfillment is emerging as a new growth area. Robotics technology is evolving from individual products to comprehensive solutions, with mobile solutions like AMRs potentially replacing traditional conveyors. Experts will also lead a discussion on micro-fulfillment.
Material Handling Industry Adapts to Pandemic Embraces Microfulfillment

While most consumers never think about material handling, this critical industry forms the backbone of modern commerce, ensuring products move efficiently from manufacturers to warehouses and ultimately to our doorsteps. Recent developments at the ProMatDX virtual trade show reveal how technological innovations are transforming this traditionally low-profile sector.

More Than Just Moving Boxes

Material handling encompasses the movement, storage, control and protection of goods throughout manufacturing, warehousing, distribution and consumption. Far from simple manual labor, modern material handling involves sophisticated systems including:

  • Automated Storage and Retrieval Systems (AS/RS): Robotic systems that automatically place and retrieve items from high-density storage
  • Autonomous Mobile Robots (AMRs): Self-navigating vehicles that transport materials without human guidance
  • Conveyor Systems: Networks of moving belts, rollers or chains that transport items between locations
  • Warehouse Management Software: Intelligent systems that optimize inventory placement and retrieval paths

Industry Trends Emerging From ProMatDX

Three major system integrators - Dematic, MHS and Swisslog - revealed several key trends reshaping material handling during the virtual event:

1. The Pandemic's Double-Edged Sword

"The industry is growing rapidly," noted Dave Trice, Senior Director at MHS. While e-commerce expansion created unprecedented demand, supply chain disruptions caused by semiconductor shortages and logistics bottlenecks have extended delivery timelines for new systems.

2. The Rise of Maintenance Services

As companies adopt more complex automated systems, demand for Maintenance, Repair and Operations (MRO) services has surged. "We're seeing increased need for resident technicians and outsourced maintenance," explained Michael Larsson, Dematic's new Americas Executive Vice President.

3. Micro-Fulfillment Takes Center Stage

Compact automated systems designed for small urban fulfillment centers (25,000 sq ft or less) are revolutionizing last-mile delivery. "Online grocery currently represents about 4% of sales but is projected to reach 20% - a $200 billion market," Larsson noted. Swisslog Americas President Markus Schmidt added that specialized software solutions are required to handle unique grocery requirements like weighted produce.

4. Robotics Evolve From Products to Solutions

Rather than standalone machines, robots are increasingly integrated into comprehensive material handling systems. Swisslog demonstrated solutions combining AutoStore systems with robotic picking stations and Tompkins Robotics' t-Sort technology. Dematic's Larsson predicted autonomous mobile robots may eventually replace traditional conveyor systems due to their flexibility.

The Future: Automation Meets Sustainability

Industry experts anticipate three key developments will dominate material handling's future:

  • Advanced Automation: Wider adoption of robotics, AI and machine learning to optimize operations
  • Intelligent Systems: IoT-enabled equipment providing real-time performance data and predictive analytics
  • Sustainable Solutions: Energy-efficient equipment, recyclable packaging and optimized transportation reducing environmental impact

As e-commerce continues its rapid growth and consumer expectations for faster delivery increase, innovations in material handling will play an increasingly vital role in global commerce - even if most consumers remain unaware of the complex systems working behind the scenes to deliver their purchases.