Question

Briefly explain the top 5 challenges faced by material handling companies

Answer 1

Top 5 challenges faced by material handling companies:

1. Labour Costs: In general, tons of materials are shifted from one department to another department in material handling companies so they requiring a large amount of manpower. This material is very costly so the companies required skilled labour to perform the manual material handling and for that, they have to pay high wages to the labour. So this is the main challenge which is faced by material handling companies.
2. Material Management: If companies don’t have the visibility of their stored inventory, they have the problem of running out of stock inventory or carrying too much stock at the wrong time. So, in this case, the companies decreasing their cash flow and increasing expenses to manage too much stock. To overcome this situation companies have to use the inventory management software which is easily available in the market.
3. Downtime: If the material runs out of stock then there is downtime due to non-availability of material. Downtime increases the cost of the companies such as variable cost, overtime cost, hidden cost, loss of revenue. Downtime also affects customer relations because if downtime occurs companies are not able to provide the product to the customer before or on deadline.
4. Safety: Safety of labour is the main challenge for material handling companies. Companies have to implement safety programs and effective training to prevent accidents.
5. Technology: Material handling companies have to utilize the latest technology to increase the productivity, reducing costs, improving efficiency.