Material handling is the movement, storage, control, and protection of materials throughout a facility. It includes how raw materials, parts, tools, components, finished goods, and inventory are received, stored, picked, moved, tracked, and delivered to the next step in a process.
In a warehouse, distribution center, manufacturing plant, or maintenance operation, material handling affects nearly every part of the workflow. When materials are stored logically and move efficiently, teams can reduce search time, improve picking accuracy, protect inventory, and make better use of available floor space.
Strong material handling is not just about moving items from one place to another. It is about creating a safer, faster, and more controlled flow of materials from receiving to storage, production, picking, packing, shipping, or service.
What Is Material Handling?
Material handling refers to the systems, equipment, software, and processes used to move, store, organize, protect, and control materials inside a facility.
This can include:
- Receiving and putaway
- Storage and retrieval
- Picking and replenishment
- Kitting and staging
- Packing and shipping
- Inventory tracking
- Movement between production areas
- Movement between storage and order fulfillment
- Protection of high-value or controlled inventory
Material handling can be manual, semi-automated, or fully automated depending on the operation. Some facilities rely on shelving, carts, forklifts, pallet racks, and conveyors. Others use automated storage systems, vertical lift modules, carousel storage systems, barcode scanning, pick-to-light, or warehouse software to improve speed and control.
Why Material Handling Matters
Material handling has a direct impact on productivity, inventory accuracy, safety, and space utilization. If materials are difficult to find, stored too far from the point of use, or moved too many times, the entire operation slows down.
A strong material handling process can help teams:
- Reduce walking and search time
- Improve picking and replenishment accuracy
- Make better use of floor space
- Protect parts, tools, and inventory from damage
- Improve inventory visibility and control
- Support faster order fulfillment
- Reduce unnecessary manual handling
- Improve ergonomics and operator safety
- Keep production, maintenance, and fulfillment workflows moving
For many facilities, material handling problems show up as everyday frustrations: crowded shelves, missing parts, slow picking, inaccurate inventory counts, or employees spending too much time looking for what they need.
Common Types of Material Handling
Material handling includes many different processes and equipment types. The right approach depends on the size, weight, value, movement, and storage requirements of the materials being handled.
Manual Material Handling
Manual material handling includes the physical movement of materials by people. This may involve lifting, carrying, pushing, pulling, reaching, bending, or walking to retrieve items.
Manual handling is common in smaller facilities or slower-moving storage areas, but it can become inefficient as inventory grows. Excessive walking, reaching, and searching can slow down picking and increase the risk of strain or injury.
Storage and Retrieval
Storage and retrieval refers to how inventory is stored, accessed, and returned to storage after use. This can include shelving, pallet racks, bins, drawers, cabinets, mezzanines, vertical lift modules, vertical carousels, horizontal carousels, and automated storage and retrieval systems.
Storage is one of the most important parts of material handling because it determines how quickly people can find and access inventory.
Conveying and Transport
Conveyors, carts, pallet jacks, forklifts, cranes, AGVs, and other transport systems help move materials between receiving, storage, production, packing, and shipping areas.
These systems are often used when materials need to move consistently between fixed points or when manual movement would be too slow, heavy, or repetitive.
Automated Material Handling
Automated material handling uses equipment and software to move, store, retrieve, pick, or track materials with less manual effort. Examples include automated storage systems, vertical lift modules, carousel storage systems, conveyors, robotic systems, barcode scanning, pick-to-light, and warehouse software.
Automation can be especially useful when facilities need to improve storage density, picking speed, inventory accuracy, or workflow consistency without expanding the building footprint.
Material Handling Equipment Examples
Material handling equipment can include simple manual tools, large machinery, and automated systems. Common examples include:
- Forklifts
- Pallet jacks
- Carts and tuggers
- Conveyors
- Cranes and hoists
- Pallet racks
- Shelving
- Bins, drawers, and cabinets
- Flow racks
- Mezzanines
- Vertical lift modules
- Vertical carousels
- Horizontal carousels
- Automated storage and retrieval systems
- Barcode scanners
- Pick-to-light or light-directed picking systems
- Warehouse management software
The best equipment depends on the operation. A facility storing pallets of bulk goods will have different needs than a manufacturer managing thousands of small parts, tools, or MRO supplies.
Material Handling Storage Systems
Storage systems are a critical part of material handling because they determine how inventory is organized, protected, accessed, and controlled.
When materials are spread across shelving, bins, cages, tool rooms, or warehouse aisles, employees often spend unnecessary time walking, searching, counting, or waiting for parts. Poor storage can also lead to misplaced items, inaccurate inventory records, excess handling, and wasted floor space.
For facilities comparing different warehouse storage solutions, the goal is to choose a system that supports the way inventory is actually received, stored, picked, and replenished.
Material handling storage systems help organize inventory so it can be stored, retrieved, and tracked more efficiently.
Common storage systems include:
- Static shelving
- Pallet racking
- Bins, drawers, and cabinets
- Mezzanines
- Flow racks
- Vertical lift modules
- Vertical carousels
- Horizontal carousels
- Automated storage and retrieval systems
- Warehouse software and inventory control systems
The right storage system depends on the size, weight, value, and movement of the inventory. Small parts, tools, MRO supplies, production components, and high-SKU inventory often benefit from compact, organized storage that brings items closer to the operator.
How Automated Storage Improves Material Handling
Automated storage systems improve material handling by reducing the time and space required to store, retrieve, and control inventory.
Automated storage and retrieval systems, or AS/RS, are one way facilities can automate storage, retrieval, and goods-to-person access for parts, tools, and inventory.
Instead of requiring operators to walk aisles, search shelves, or manually track inventory, automated storage systems bring materials directly to an ergonomic access point. This goods-to-person approach can help improve picking speed, reduce unnecessary travel, and support more accurate inventory control.
Automated storage can also help facilities consolidate inventory into a smaller footprint by using vertical space that would otherwise go unused. For operations dealing with crowded shelves, limited floor space, or high-SKU inventory, this can create more room for production, staging, packing, or future growth.
Vertical Lift Modules
Vertical Lift Modules, or VLMs, store inventory in trays and use an internal elevator to deliver the requested tray to the operator. VLMs are commonly used for parts, tools, MRO supplies, production components, and high-SKU inventory where space savings, security, and inventory control are important.
VLMs can help improve material handling by reducing walking and search time, storing more inventory in less floor space, and supporting guided picking through software, barcode scanning, and inventory tracking.
Vertical Carousels
Vertical carousels rotate carriers vertically to bring stored items to an access point. They are often used for parts, supplies, pharmacy inventory, and other items that need organized, compact storage with fast access.
Vertical carousels can be a strong fit for facilities that need to improve access to small or medium-sized items while reducing the space required for traditional shelving or cabinets.
Horizontal Carousels
Horizontal carousels rotate bins around a horizontal track and are commonly used for order picking, parts storage, kitting, and fulfillment operations. They can help reduce walking and support high-volume picking workflows.
Horizontal carousels are often used in pods so operators can pick from multiple machines while software directs the sequence. This helps keep inventory moving to the operator and can support faster, more accurate picking.
Warehouse Software and Inventory Control
Software connects storage equipment to the broader material handling process. With barcode scanning, user permissions, pick lists, replenishment workflows, and ERP or WMS integration, teams can improve visibility and reduce manual inventory errors.
For operations managing critical parts, tools, or controlled inventory, software can help track what was picked, who picked it, where it came from, and when it moved.
Signs Your Material Handling Process Needs Improvement
Material handling problems often show up as everyday operational issues. Your process may need improvement if your team is dealing with:
- Employees spending too much time searching for parts or inventory
- Crowded aisles, shelves, or storage rooms
- Inventory stored in too many separate locations
- Frequent stockouts or inaccurate counts
- Too much walking between storage and work areas
- Slow picking, kitting, or replenishment
- High-value parts with limited access control
- Difficulty tracking who picked or moved inventory
- Damaged materials from excess handling
- Limited floor space for production, staging, or growth
When these problems become routine, improving the storage and retrieval process can have a major impact on the overall material handling workflow.
Material Handling in Warehouses
In a warehouse, material handling includes the movement and control of goods from receiving through storage, picking, packing, and shipping.
A strong warehouse material handling process helps ensure that inventory is stored in the right location, picked accurately, replenished efficiently, and shipped on time. Storage layout, picking paths, equipment, software, and inventory visibility all affect how well the warehouse performs.
Automated storage systems can support warehouse material handling by reducing walking, improving inventory organization, and bringing goods directly to the operator for picking or replenishment.
Material Handling in Manufacturing
In manufacturing, material handling supports the movement of raw materials, production parts, tools, work-in-process inventory, and finished goods throughout the facility.
If parts or tools are hard to find, production can slow down. If materials are stored too far from the point of use, employees spend more time walking and waiting. Better storage and retrieval systems can help keep critical materials close to production while improving control over inventory.
Vertical lift modules, carousels, and automated parts storage systems are often used in manufacturing environments to organize spare parts, tools, components, kitting materials, and MRO inventory.
Material Handling for MRO and Spare Parts
Maintenance, repair, and operations teams depend on fast access to the right parts and tools. When spare parts are stored across multiple rooms, shelves, cages, or bins, it can be difficult to know what is available and where it is located.
Better material handling for MRO inventory can help teams:
- Find parts faster
- Control access to high-value tools or components
- Reduce duplicate inventory
- Improve spare parts availability
- Track usage and transaction history
- Support preventive maintenance and repair workflows
Automated storage systems can help centralize MRO parts, tools, and maintenance supplies in a smaller, more controlled footprint.
Industries That Depend on Material Handling
Material handling is important across many industries, but the specific requirements vary by operation.
Manufacturing
Manufacturers use material handling systems to move raw materials, components, tools, work-in-process inventory, and finished goods through production. Better storage and retrieval can help reduce downtime and keep parts close to the point of use.
Warehousing and Distribution
Warehouses and distribution centers rely on material handling to receive, store, pick, pack, and ship orders efficiently. Storage layout, picking methods, and inventory visibility all affect fulfillment speed and accuracy.
Retail and E-Commerce
Retail and e-commerce operations need efficient material handling to manage fast-moving SKUs, returns, replenishment, and order fulfillment. Automated storage and picking systems can help support higher order volumes in limited space.
Automotive, Aerospace, and Defense
These industries often manage high-value parts, tools, and components that require accuracy, traceability, and controlled access. Organized storage and inventory control are critical for production and maintenance workflows.
Healthcare and Pharmacy
Healthcare and pharmacy operations depend on accurate, secure storage for supplies, medications, and controlled inventory. Material handling systems can help improve access, organization, and space utilization.
Food and Beverage
Food and beverage facilities use material handling systems to move ingredients, packaging, finished goods, and supplies while maintaining safety, cleanliness, and efficient flow.
How to Improve Material Handling
Improving material handling usually starts with understanding where time, space, and accuracy are being lost.
Key questions to ask include:
- Where do employees spend the most time walking or searching?
- Which materials are picked most often?
- Which parts are hardest to find?
- Where are inventory counts least reliable?
- Which storage areas are overcrowded?
- Which items require controlled access?
- Where does material movement slow down production or fulfillment?
- Could inventory be stored closer to the point of use?
- Could vertical space be used more effectively?
- Would barcode scanning or software improve tracking?
Once these issues are clear, teams can evaluate whether better shelving, layout changes, automated storage, barcode scanning, pick-to-light, or warehouse software could improve the process.
If you are evaluating whether automated storage makes financial sense, an ROI calculator can help estimate potential space savings, productivity gains, and payback.
Material Handling FAQ
What is material handling?
Material handling is the movement, storage, control, and protection of materials throughout a facility. It includes how inventory is received, stored, picked, moved, tracked, and delivered to the next step in a warehouse, manufacturing, or distribution process.
What are examples of material handling equipment?
Examples include forklifts, carts, conveyors, pallet racks, shelving, bins, cranes, vertical lift modules, vertical carousels, horizontal carousels, automated storage systems, barcode scanners, pick-to-light systems, and warehouse software.
What is material handling in a warehouse?
In a warehouse, material handling includes receiving goods, storing inventory, picking orders, replenishing stock, moving materials, packing shipments, and tracking inventory locations.
What is material handling in manufacturing?
In manufacturing, material handling includes the movement, storage, and control of raw materials, components, tools, work-in-process inventory, and finished goods throughout the production process.
How does automated storage improve material handling?
Automated storage improves material handling by reducing walking and search time, storing inventory in a smaller footprint, delivering items to an ergonomic access point, and supporting more accurate inventory tracking.
What is the difference between material handling and warehouse automation?
Material handling is the broader process of moving, storing, and controlling materials. Warehouse automation uses equipment, software, and systems to automate parts of that process, such as storage, retrieval, picking, conveying, or inventory tracking.
What is a material handling storage system?
A material handling storage system is equipment or software used to organize, store, retrieve, and track materials inside a facility. Examples include shelving, pallet racking, vertical lift modules, vertical carousels, horizontal carousels, AS/RS systems, and warehouse inventory software.
Improve Material Handling with Automated Storage
If your team is dealing with crowded shelves, slow picking, lost inventory, limited floor space, or poor inventory visibility, White Systems can help evaluate whether a vertical lift module, vertical carousel, horizontal carousel, or automated storage solution is the right fit for your operation.