Top 5 Challenges in Material Handling and How to Overcome Them

Efficient material handling is the backbone of smooth operations in industries like manufacturing, warehousing, logistics, construction, and distribution. However, it comes with its own set of challenges—from inefficiencies in equipment use to safety hazards and space constraints.

If you’re struggling to streamline your material handling processes, you’re not alone. In this blog, we explore the top 5 common challenges in material handling—and more importantly, how you can overcome them with strategic solutions.

1. Inefficient Workflow & Poor Layout Design

🔍 The Challenge:

A poorly designed warehouse or shop floor layout can cause delays, bottlenecks, and extra steps in the handling process. This leads to:

• Increased travel time for operators

• Higher energy and labor costs

• Equipment wear and tear

✅ The Solution:

Invest in workflow optimization and layout redesign:

• Use warehouse management software (WMS) or simulation tools to analyze movement patterns.

• Apply the 5S Methodology (Sort, Set in Order, Shine, Standardize, Sustain) to declutter and organize.

• Consider zoning areas by task type—receiving, storage, picking, packing, and shipping.

Pro Tip: Involve frontline workers in redesign discussions—they often have the most practical layout improvement ideas.

2. Inadequate or Outdated Equipment

🔍 The Challenge:

Using outdated, manual, or poorly maintained material handling equipment (MHE) can result in:

• Equipment failure and downtime

• Unsafe working conditions

• Inefficient loading/unloading

✅ The Solution:

Modernize your MHE inventory:

• Upgrade to automated or semi-automated solutions, such as conveyor belts, Automated Guided Vehicles (AGVs), or robotic arms.

• Perform scheduled preventive maintenance to avoid breakdowns.

• Train operators on safe and efficient usage.

Smart Add-on: Leverage IoT-connected equipment that monitors wear and performance in real time, reducing unexpected downtime.

3. Lack of Skilled Labor and Training

🔍 The Challenge:

Even the best material handling system fails without properly trained staff. Common issues include:

• Improper lifting and storage techniques

• Mishandling of sensitive or hazardous materials

• Slow onboarding of new employees

✅ The Solution:

Prioritize comprehensive training and upskilling:

• Implement mandatory onboarding programs with simulated material handling exercises.

• Offer certifications for forklift driving, packaging, or warehouse IT systems.

• Encourage a culture of safety and accountability.

Bonus Tip: Use augmented reality (AR) for training modules to give employees immersive hands-on practice without risk.

4. Inventory Inaccuracy and Poor Tracking

🔍 The Challenge:

Inaccurate inventory leads to overstocking, stockouts, and missed order deadlines. Root causes often include:

• Manual record-keeping

• Misplaced goods during transit

• Lack of real-time visibility

✅ The Solution:

Integrate technology for real-time tracking:

• Adopt a Warehouse Management System (WMS) with barcode/RFID scanners.

• Use mobile apps or tablets to log and track movement instantly.

• Consider blockchain-based supply chain systems for higher transparency.

Pro Tip: Conduct cycle counts regularly instead of waiting for year-end physical inventory.

5. Safety Hazards and Regulatory Non-Compliance

🔍 The Challenge:

Material handling involves risk—especially when heavy loads, forklifts, narrow aisles, or hazardous substances are involved. Challenges include:

• Workplace accidents

• OSHA (or local) regulation violations

• Legal liability and downtime

✅ The Solution:

Make safety a non-negotiable priority:

• Conduct regular safety audits and hazard identification.

• Install clear signage, proper lighting, and protective barriers in high-traffic areas.

• Provide PPE (Personal Protective Equipment) and ensure compliance.

• Update policies as per local safety standards (e.g., OSHA, ISO).

Smart Move: Install smart sensors and alert systems that warn operators of blind spot collisions or overload conditions.

Bonus Tip: Embrace Automation and AI

While not a challenge per se, failure to adopt automation is quickly becoming a bottleneck. Emerging technologies like Artificial Intelligence (AI), Machine Learning (ML), and Robotics are now used to:

• Predict demand and optimize stock levels

• Manage labor schedules more efficiently

• Automatically assign routes or storage locations

By adopting smart automation, companies can reduce human error, increase throughput, and enhance decision-making.

Final Thoughts

Material handling challenges aren’t going away—but with a proactive, tech-driven, and safety-first approach, you can turn your operation into a streamlined, efficient powerhouse.

Here’s a quick recap:

If your warehouse, shop floor, or supply chain still struggles with these hurdles, now’s the time to rethink and modernize. After all, your materials may be heavy—but your process doesn’t have to be.

Need help designing a smarter material handling system?
📞 Contact our experts today for a free workflow audit or consultation!