It’s 9:55 a.m. on a busy Monday. Receiving is backed up, a best-seller is slotted two aisles too far from pack-out, and your picker just spent three extra minutes weaving around a forklift queue. Multiply that by a few hundred orders, and those “small” handling choices start looking very expensive, don’t they?
That’s precisely why material handling—the industry term for the movement, storage, control, and protection of goods throughout the warehouse—matters so much to both the cost and the safety of warehouse operations. When those processes aren’t managed well, the impact shows up in delays, accidents, and rising expenses.
Consider order picking, for instance: it often accounts for nearly half of a warehouse’s operating costs. So every single mis-pick, when you include warehouse returns, reships, and dissatisfied customers, suddenly looks like a high-stakes issue.
In this article, we’ll break down what material handling really means, the different approaches warehouses use, and the benefits of getting it right.
We’ll also look at how modern solutions like Da Vinci WMS help streamline handling workflows, improve safety, and keep operations scalable as your business grows.
Key Takeaways
- Material handling touches every cost driver in a warehouse, from labor and safety to speed and space. Small inefficiencies add up fast.
- Choosing the right mix of manual, mechanized, and automated equipment ensures products move faster, safer, and with fewer errors.
- Best practices like training, proactive maintenance, and smart slotting reduce accidents, wasted motion, and costly rework.
- Tracking KPIs such as order accuracy, cycle time, and cost per order keeps handling workflows accountable and scalable.
- Use Da Vinci WMS to tie it all together—optimizing slotting, integrating automation, and giving managers real-time visibility. Book a demo to see how.
What Is Material Handling in a Warehouse?
Material handling refers to every movement, storage, and flow of goods inside a warehouse. It covers how items are unloaded from trucks, put away on racks, picked for orders, replenished, and shipped out.
In simple terms: if a product changes hands or location inside your facility, it’s part of material handling.
And it’s more than just moving boxes around. Effective handling connects people, equipment, and processes into a system that balances speed with safety. A well-designed material handling workflow reduces wasted motion, prevents product damage, and creates consistency across shifts.
But why does this matter so much?
Because handling touches nearly every cost driver in a warehouse. Labor, space utilization, safety, and service levels are all tied to how smoothly materials move.
According to industry studies, material handling can account for 20-25% of total manufacturing costs, and in some operations, it may be as much as 50% of overall operating expenses.
Modern warehouses are under pressure to deliver faster with fewer errors. That’s where warehouse material handling strategies, supported by tools like Da Vinci WMS, come in.
By standardizing processes and providing managers with real-time visibility into what’s happening on the floor, you can transform handling from a cost center into a competitive advantage.
How Warehouses Handle Materials
Every warehouse moves products, but how they do it often depends on size, order volume, and investment in technology.
At the most basic level, workers move goods manually using tools like hand trucks or pallet jacks. It’s inexpensive and flexible, but it can also be slow and physically demanding. As facilities grow, mechanized equipment such as forklifts and conveyors helps reduce travel time and speed up throughput.
Some warehouses take a middle ground, utilizing semi-automated systems such as pick-to-light or voice-directed picking. These tools guide workers, improve accuracy, and shorten training time without requiring a full automation overhaul.
And at the high end, automated material handling systems, including Automated Storage and Retrieval Systems (AS/RS), Automated Guided Vehicles (AGVs), and robotics, handle goods with minimal human input. These solutions can dramatically increase efficiency and safety, but they require upfront investment and strong integration with a warehouse management system.
No matter the stage, the goal is the same: move products faster, safer, and more accurately. The right WMS, like Da Vinci Unified, makes that possible by connecting people, equipment, and automated systems under one platform, so your warehouse can adapt and scale without missing a beat.
Benefits of Effective Material Handling in Warehouses
When material handling is done right, the difference shows up across the entire operation. Here are some of the biggest payoffs:
1. Improved safety
Warehousing has one of the highest injury rates in logistics, with material handling equipment like forklifts often involved in accidents. Streamlined handling processes and the right equipment reduce strain on workers, lower injury risk, and create a safer environment overall.
2. Faster order fulfillment
Every extra step or detour in a pick path slows down shipments. Optimized material handling helps products move seamlessly from receiving to packing, cutting cycle times and getting orders out the door faster.
3. Better inventory control
When goods are stored, picked, and replenished with precision, errors go down and visibility goes up. Fewer mis-picks mean more accurate stock levels and happier customers.
4. Lower costs
Labor is undeniably the largest slice of the cost pie in warehouses, accounting for roughly 50-70% of operating expenses, depending on how fulfillment is structured. And poor handling is one of the biggest drivers of wasted effort. Efficient material handling reduces excess travel, minimizes rework, and keeps operating costs in check.
5. Scalability
Growth brings more SKUs, higher order volumes, and tighter service expectations. Effective handling practices, especially when paired with warehouse automation and WMS support, give warehouses the flexibility to scale without chaos.
And this is where Da Vinci WMS adds real value. By optimizing slotting, guiding pickers with task interleaving, and integrating with automated systems, Da Vinci helps warehouses cut costs, protect workers, and boost throughput all at once.
Equipment and Systems for Warehouse Material Handling
The tools you choose for material handling can make or break efficiency. The right mix of equipment and systems determines how quickly goods move, how safe the floor is, and how scalable your operation becomes.
Broadly, warehouse material handling equipment can be grouped into four categories:
1. Storage and Handling Equipment
These systems hold goods between movements, whether for a few hours or several months. They maximize vertical space, improve organization, and protect items from damage.
- Pallet racks: Steel-framed structures for storing pallets in vertical stacks.
- Shelves, bins, and drawers: Ideal for small parts, slow movers, or items requiring careful separation.
- Mezzanines: Raised platforms that add a second (or third) level of storage without expanding the footprint.
- Stacking frames: Temporary frames that allow pallets to be stacked safely and flexibly.
2. Bulk Material Handling Equipment
Warehouses dealing with loose, heavy, or irregular materials use specialized bulk systems to store and move large volumes.
- Conveyor belts: Continuous movement systems for transporting bulk goods or packaged items.
- Stackers and reclaimers: Machines that build or draw down stockpiles of bulk materials like grain or minerals.
- Bucket elevators: Vertical conveyors for lifting bulk materials efficiently.
- Hoppers: Funnel-shaped containers that dispense bulk goods into bins, containers, or machines.
3. Industrial Trucks
These are the vehicles, both manual and powered, that move products around the warehouse. They vary widely in size, capacity, and purpose.
- Forklifts: Versatile trucks for lifting and stacking pallets.
- Hand trucks (dollies): Two-wheeled carts for small, short-distance moves.
- Pallet jacks (manual or powered): Essential for moving palletized goods across the floor.
- Sideloaders: Designed for long or bulky items that don’t fit standard forklifts.
- Order pickers: Machines that raise the operator to retrieve items from higher storage levels.
4. Engineered (Automated) Systems
These systems bring together machines, robotics, and software to create integrated handling workflows. They’re designed for speed, accuracy, and scalability.
- Automated Storage and Retrieval Systems (AS/RS): High-density racking paired with computer-controlled cranes.
- Automated Guided Vehicles (AGVs): Robotic vehicles that follow fixed paths to move pallets or carts.
- Autonomous Mobile Robots (AMRs): Robots that navigate freely using sensors and AI, ideal for flexible picking and replenishment.
- Robotic picking systems: Vision-enabled robots that can identify, pick, and sort items at speed.
Why Choosing the Right Equipment Matters
Not every warehouse needs a fleet of robots. The right setup depends on your products, order volume, and growth plans.
For example, pallet jacks may be enough for a small facility, while a high-volume 3PL might justify AS/RS and AMRs to scale profitably.
And this is where Da Vinci WMS comes in. By integrating with both traditional equipment and advanced warehouse automation, it ensures your tools work in sync rather than in silos. From forklift tasks to robotic picking, Da Vinci provides real-time visibility and control over every movement.
10 Best Practices for Warehouse Material Handling
Even the best equipment won’t deliver results without the right practices behind it. The way you design processes, train staff, and maintain systems makes the difference between a smooth-running operation and a warehouse full of bottlenecks. Here are 10 proven best practices:
1. Train and re-train staff
Material handling safety starts with people. Workers should be trained not just once during onboarding, but continuously, especially as new equipment, layouts, or technologies are introduced.
Refresher courses on forklift operation, lifting techniques, and hazard awareness help reduce accidents and keep productivity steady.
2. Optimize your warehouse layout
A poorly designed floor is a hidden cost driver. Place high-demand SKUs near shipping areas, group similar products together, and keep heavy or bulky items in easily accessible locations.
A well-thought-out warehouse layout cuts travel time, eliminates bottlenecks, and speeds up order fulfillment.
3. Use slotting strategies
Warehouse slotting ensures the right products are in the right place at the right time. Fast-moving items should be positioned close to pack-out, while slower SKUs can be stored higher or farther away.
Regularly revisiting slotting decisions, based on seasonal trends or SKU velocity, can shave minutes off every pick.
4. Standardize processes with SOPs
Every warehouse should have clear standard operating procedures (SOPs) for warehouse putaway, picking, replenishment, and safety protocols.
SOPs remove guesswork, create consistency across shifts, and make it easier to onboard new staff. And when everyone follows the same playbook, mistakes and downtime drop.
5. Leverage automation where it fits
Not every warehouse needs robots, but most can benefit from some level of warehouse automation.
Pick-to-light systems, barcode scanners, or conveyor belts can dramatically cut errors and wasted motion. And for high-volume facilities, advanced automation like AS/RS or AGVs, paired with a WMS, offers scalability without ballooning labor costs.
6. Maintain equipment proactively
A forklift breakdown or conveyor stoppage can grind operations to a halt.
Preventive maintenance, daily safety checks, scheduled servicing, and proactive part replacements reduce downtime and extend equipment life. A maintenance log ensures nothing slips through the cracks.
7. Reduce manual handling
The more products workers move by hand, the higher the risk of errors and injuries. Use carts, pallet jacks, and conveyors to minimize strain. For heavy or fragile items, mechanized or automated solutions reduce both risk and handling time.
8. Align handling methods with SKU profiles
Not every item should be handled the same way. Fragile products need protective handling and storage, while high-turnover SKUs benefit from fast-access zones.
Matching equipment and workflows to SKU characteristics improves accuracy, prevents damage, and optimizes throughput.
9. Monitor and track KPIs
You can’t improve what you don’t measure.
Tracking metrics like order accuracy, pick rates, equipment utilization, and safety incidents highlights where processes are breaking down. Reviewing KPIs regularly allows managers to adjust before small issues snowball into larger inefficiencies.
10. Promote a culture of continuous improvement
Material handling isn’t “set and forget.” Encourage staff to provide feedback on workflows and review processes regularly for waste and inefficiency.
Warehouses that adapt, by tweaking layouts, investing in smarter systems, or tightening safety rules, stay competitive even as order volumes and customer expectations rise.
When combined, these practices create safer conditions, faster order processing, and lower costs. And with Da Vinci WMS tying everything together, warehouses can move from reactive firefighting to proactive, data-driven handling.
Key Metrics to Track in Warehouse Material Handling
You can’t improve material handling if you’re not measuring it. The right metrics help managers spot bottlenecks, control costs, and improve both speed and accuracy.
Here are the most important ones to track:
- Order accuracy rate. This measures how often orders are picked, packed, and shipped without errors. A low accuracy rate signals problems in picking methods, training, or equipment use. Improving it reduces costly returns and keeps customers happy.
- Fulfillment cycle time. Cycle time tracks how long it takes from receiving an order to shipping it out. Long cycle times often point to layout inefficiencies, poor slotting, or underutilized automation. Faster cycles mean more throughput without adding headcount.
- Equipment utilization rates. Whether it’s forklifts, conveyors, or robotics, equipment that sits idle represents wasted investment. Utilization metrics reveal whether assets are being overworked, underused, or unevenly deployed, helping you balance workloads and plan maintenance.
- Labor productivity. Usually measured in picks per hour, this KPI shows how effectively staff are working within current processes and systems. Low productivity may highlight poor slotting, excessive manual handling, or training gaps.
- Safety incident frequency. Tracking near-misses and recordable incidents is critical. A high frequency of safety issues often indicates gaps in training, equipment misuse, or unsafe layouts. Addressing these early prevents costly downtime and keeps staff protected.
- Inventory accuracy. Accurate inventory is the foundation of material handling. If what’s in the system doesn’t match what’s on the shelves, picking delays and customer disappointments follow. Regular cycle counts and WMS tracking keep accuracy high.
- Cost per order handled. This metric rolls labor, equipment, and overhead into a single number that shows how much it costs to move an order through your facility. Lowering this without sacrificing service is the ultimate efficiency test.
Use Da Vinci WMS to monitor these KPIs in real time, track performance across orders, equipment, and labor, and pinpoint where handling processes need improvement.
Common Material Handling Mistakes to Avoid
Even with the right equipment and staff, warehouses often fall into patterns that quietly drain efficiency and raise costs. Here are some of the most common mistakes to watch for:
1. Overloading equipment
Forklifts, pallet jacks, and conveyors all have capacity limits. Ignoring them not only causes equipment damage but also puts workers at serious risk.
2. Skipping regular maintenance
When equipment breaks down unexpectedly, productivity stalls. Preventive maintenance is cheaper and safer than emergency repairs.
3. Poor warehouse layout
Inefficient placement of SKUs or narrow aisles can force workers into long detours and traffic jams. Over time, these design flaws add hours of wasted labor every week.
4. Relying too heavily on manual processes
Manual picking and tracking may work at a small scale, but they don’t hold up under growth. Without some automation or WMS support, errors multiply and cycle times balloon.
5. Ignoring safety protocols
Rushed or inconsistent training leads to accidents, damaged goods, and downtime. Safety shortcuts may seem to save time in the moment, but they always cost more in the long run.
6. Failing to align equipment with SKU needs
Using the wrong tools for fragile, bulky, or high-turnover products increases damage and slows picking. Equipment must match product characteristics, not just budget constraints.
Challenges in Warehouse Material Handling (and How to Overcome Them)
Even well-run warehouses face obstacles in material handling. The key is to recognize these challenges early and address them with the right strategies.
1. Labor shortages
Finding and keeping skilled workers is tougher than ever. High turnover and rising wages put pressure on fulfillment costs.
Solution: Invest in automation to reduce dependency on manual labor, and use WMS-driven training and task guidance to make new hires productive faster.
2. Space constraints
As SKU counts grow, floor space gets crowded and picking routes stretch longer.
Solution: Use vertical storage, dynamic slotting, and racking systems to maximize space. A WMS like Da Vinci can recommend smarter slotting based on product velocity.
3. Rising costs
From labor to utilities, operating expenses continue to climb.
Solution: Track metrics like cost per order and equipment utilization to spot inefficiencies. Optimizing workflows and using automation where it makes sense helps keep costs under control.
Additional Reading: Learn about 11 Strategic Ways to Reduce Warehouse Labor Costs.
4. Safety risks
Busy floors and heavy equipment create constant hazards.
Solution: Enforce strict safety standards, schedule preventive maintenance, and use technology like Da Vinci WMS to monitor task loads and reduce unnecessary risks.
5. Increasing customer expectations
Faster shipping and error-free orders are now the norm.
Solution: Leverage real-time visibility through WMS integrations with picking systems, conveyors, or robotics. This ensures orders are accurate, traceable, and on time.
You can use cloud-based WMS like Da Vinci to overcome these challenges with automation, real-time insights, and configurable workflows.
Building Smarter Material Handling Workflows
Material handling may happen behind the scenes, but it sets the pace for everything a warehouse does. From reducing accidents to cutting fulfillment times, the way products are moved, stored, and picked determines whether your operation struggles or scales.
The key is combining smart practices with the right mix of equipment, automation, and data-driven oversight. And that’s where technology makes the difference.
Use Da Vinci WMS to bring it all together, slotting optimization, task assignments, equipment integration, and real-time visibility, so material handling becomes safer, faster, and more cost-efficient. With the right system in place, warehouses can stop fighting fires on the floor and start building workflows that grow with their business.
Ready to streamline your warehouse material handling? See how Da Vinci WMS helps you cut costs, improve safety, and scale with confidence. Book a demo with our qualified sales staff today.
Warehouse Material Handling FAQs
What are the four main types of material handling equipment?
Material handling equipment falls into four categories: storage and handling equipment (like racks and bins), bulk material equipment (like conveyors and hoppers), industrial trucks (like forklifts and pallet jacks), and engineered systems (like AS/RS and robotics).
How does automation improve material handling in warehouses?
Automation reduces human error, speeds up repetitive tasks, and cuts down travel time. Systems like AS/RS, AGVs, and robotic picking can move goods more efficiently while Da Vinci WMS orchestrates workflows to ensure humans and machines work in sync.
What safety practices should warehouses follow in material handling?
Key practices include regular employee training, clear signage, maintaining equipment, avoiding overloading, and enforcing PPE use. A well-structured WMS also helps by guiding workers and reducing unnecessary manual steps.
What role does a WMS play in material handling?
A warehouse management system connects people, equipment, and data. It optimizes slotting, tracks real-time inventory, assigns tasks efficiently, and integrates with automation to improve both safety and throughput.
How do I choose the right material handling equipment for my warehouse?
Start by evaluating product profiles (size, weight, fragility, velocity) and order volumes. Smaller warehouses may rely on pallet jacks and forklifts, while high-volume operations benefit from conveyors, AS/RS, or robotics. With Da Vinci WMS, you can scale equipment choices gradually while keeping visibility and control under one system.