The Role of IoT in the Evolution of Automated Material Handling
The Internet of Things (IoT) has transformed several sectors, incorporating automated material handling. The IoT system helps in effectively carrying out logistics operations by linking physical devices to the internet such that data can be captured, analyzed, and controlled in real time. IoT’s major contributions to automated material handling systems include tracking assets, ensuring predictive maintenance, routing and scheduling, improving safety and security, and integration with other systems such as warehouse management systems, transportation management systems, and enterprise resource planning (ERP) among other systems.
Asset tracking entails using overhead IoT sensors that help follow the progress and status of equipment, or materials, and product availability across the entire supply chain. This reduces stock mismanagement and its attendant issues of understocking and overstocking. Predictive maintenance schedulers run maintenance on assets before assets break down hence assisting in reducing the costs and time lost due to downtime. Further, the other benefit is routing and scheduling which means that all the decisions will be based on the data that will be available and the best transportation routes instead of guessing and making assumptions as to which routes will be the least consuming in terms of time and fuel. Such IoT systems will also monitor the environment for dangers and ensure a paired response reduces accidents and even losses of valuable materials. Some of the IoT solutions utilized in automated material handling are AGVs, smart storage, and connected chain management solutions in healthcare, commerce, and manufacturing industries among many others. With the IoT incorporated into the operations of these industries, the effectiveness, efficiency, and safety of the supply chain processes can be enhanced.
Moreover, a growing number of warehouses are implementing automated material handling systems because this helps to reduce the chances of workers being injured due to performing certain operations such as lifting heavy loads or performing repetitive processes which would be strenuous and straining on human beings. Moreover, there is also a global increase in work-related incidents that are contributing to the adoption of automated material handling systems in warehousing companies, hence the expansion in its requirement in the coming future. For example, as per the data released by the U.S. Bureau of Labor Statistics, nonfatal occupational injuries, and illnesses increased to 2,804.2 thousand in 2022 from 2,607.9 thousand in 2021 in the United States. Of these, 2,343.6 thousand were work-related injuries recorded in 2022. Moreover, there is a greater influx of automated material handling companies into the market with new and advanced solutions for smart warehousing storage systems.
Such products developed are not just for logistics and handling but also for an efficient supply chain, which enables the distribution of the goods to the end consumers more effectively. For instance, in December 2022, Daifuku Co., Ltd. announced the plan for the construction of a new manufacturing facility in India at Hyderabad, specifically at its subsidiary Vega Conveyors and Automation Private Limited (Vega). The facility is anticipated to be ready by 2024 and will produce systems for automatic warehousing, conveyors, sorters, and rail-guided vehicles, among others. Due to the rapid economic growth in the Indian market, Vega is expected to increase its manufacturing capabilities by four times.
Moreover, the advancement of automated material handling capabilities is also attributed to the increased efficiency experienced because of real-time data tracking, predictive maintenance, and automation aspects of the processes due to the IoT. The extent of IoT capabilities concerning tracking and monitoring is that real-time tracking can extend to assets in storage, inventory, and operations, thereby increasing efficiency in the functioning order and minimizing order downtime. With IoT, efficiency is also enhanced because it is possible to keep maintenance schedules without interfering with the operations of the factory.
Additionally, the healthcare industry verticals not only involve hospitals, and clinics but also medical device manufacturers that utilize IoT in the storage and distribution of products pharmaceutical goods, and medical equipment. These underlined institutions make use of automated material handling systems for the provisioning and storage of medical consumables products, such as surgical instruments. The systems can be enhanced to promote better patient care and safety by lessening the risks of misplacing, mishandling, and improper storage of medical materials and supplies which presents a wider scope of automated material handling growth potential in the supervening years.
Figure 1: Increase in Global B2b E-commerce Gmv, in Us$ Billion, in 2024-2026
Source: International Trade Administration (ITA)
Moreover, e-commerce processes optimized through IoT technologies can ensure quicker delivery with more precision, which will result in higher levels of customer satisfaction. This technology can also help mitigate risks of inaccuracies and guarantee the correct filling of orders consequently raising the esteem of customers. E-commerce includes a wide range of business activities, including e-retailing, digital marketplaces, and e-commerce business-to-business interactions. E-retailing deals with goods sold from businesses to customers directly, while digital marketplaces are intermediaries that bring together sellers and buyers in a variety of sectors. E-commerce B2B consists of buying and selling products between companies through electronic and internet canyons like catalogs and marketplaces. In recent years, e-commerce order handling has been a necessity considering the growing scope of e-commerce activities. It is the increased acceptance of e-commerce retailing and its automation that translates to the application of automated material handling like automated vehicles and conveyors to enhance efficiency and accuracy. The B2B e-commerce sector recorded a significant rate of growth which was a market size of US$28.082 billion in 2022 and will reach US$36,163 billion by 2026, ITA reported.
Key Developments:
| Year | Development |
| July 2024 | In Japan, a cloud-based AI service for assessing the safety of forklifts was developed by Toyota Material Handling and Fujitsu. The AI Forklift Driving Analysis service integrates logistics processes using Fujitsu Data Intelligence PaaS and the Fujitsu Kozuchi AI service to evaluate safety in operating a forklift which is particularly infrastructure for the cloud. The service, which can be found in TMHJ FOLKLORE IoT subscription services, uses an AI that has learned from how forks are maneuvered and how operators conduct safety checks to smartly warn of unsafe operations and also prepare safety driving scorecards for the operators. This reduces the amount of time that would be used in watching video footage and increases the level of awareness in the safety of the operators. |
| May 2024 | KION North America partnered with Fox Robotics, where KION NA would manufacture and assemble autonomous trailer loaders/unloaders referred to as FoxBots in Summerville, South Carolina KION facilities. This is a non-strategic collaboration and the purpose of this collaboration is to increase the supply chain for FoxBots ATLs and create the network for services for autonomous forklifts across the USA. |
| May 2023 | Toyota Material Handling launched three additional electric lift truck models together with the Side Entry End Rider model, Center Rider Stacker model as well as Industrial Tow Tractor model. They incorporate functionality and adaptability of the operators making them competent in inter-warehouse movement as well as order assembly. Side Entry End Rider that comes in 6000 and 8000-pound variants comes with an automatic parking brake and power-assisted steering making it more energy efficient. |
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