No crane, no gain – Understanding the evolving role of material handling in the global economy

Material handling may not be the first thing many think of when considering global supply, but every product we purchase or use – be it your car, your TV, or the food in your kitchen – has at some point been through a material handling process.

Juha Pankakoski, EVP, Port Solutions at Konecranes, points out that material handling is an ancient form of work that has given rise to many of humanity’s most incredible innovations.

“From the beginning of human history,” he says, “people found ways of moving things that were too heavy to carry by hand. The necessity of doing so led us to create things like wheels and pulleys, and early kinds of infrastructure.”

Today, material handling continues to be the linchpin of commerce and trade, especially on the global scale, and expectations are that the industry will grow in the coming years, driven by expanding global economies and the need for efficient and cost-effective solutions to match. As the world changes, so does the industry to keep pace, and those changes are happening across three main fronts: Technology, security, and sustainability.

Technological advancements

Technological innovation plays an increasingly important role in material handling – we are seeing more connected and intelligent equipment for tracking, monitoring, and optimizing operations, while robotics and artificial intelligence (AI) are being used more and more to optimize tasks like palletizing, depalletizing, and order picking, improving speed and accuracy. Improved analytics, meanwhile, are providing new insights for secure coordination, demand forecasting, and data-driven decision-making.

Overall, digitalization is driving unprecedented efficiency, and Konecranes leverages this into the full automation of certain industrial processes and even complete container yards. According to Pankakoski, however, there are many tasks at which humans are still faster and better than their automated counterparts — especially workers with plenty of experience. However, technology helps make up for the fact that peak human performance can’t be sustained around the clock, and due to talent shortages, too few experienced workers are available. The resulting approach to tech adoption taken by Konecranes is to embrace full automation in some areas while looking for ways to assist employees and equipment operators in others.

“There are still challenges to incorporating automation across the board,” he says. “The level we’re at now is using emerging technology to make jobs more efficient.”

Additionally, he mentions the need to maintain a “safety first” mindset: “Embracing new technologies is a major part of our business, but it must take safety into account. This means that to some extent, we have to maintain a traditional, safety-first view, and finding the balance between these approaches is crucial.”

Cathy Morrow Roberson, Founder and President of Logistics Trends and Insights, points out that safety is not only a priority in the physical sense for equipment and the workforce, but also in terms of data and privacy.

“As technology makes logistics more connected and complex,” she says, “clarity around the specific roles of employees, suppliers, and other partners is a must.”

The overall increase in digitalization — as well as the increasing use of AI specifically — also provides material handling companies with the opportunity to collect more high-quality data from customers’ operations. That data can enable more effective maintenance, ongoing optimization of services and training, and continuous insights into product development, all of which are helping to shape the future of the industry.

Heightened security concerns

Along with the increasing use of technology, the growing overall complexity and scale of global trade make supply chains — and the material handling industry they rely on — more vulnerable to disruption, from system outages and software malfunctions to data corruption and cyberattacks. Even small-scale disruptions, like a warehouse management system experiencing server downtime, can cause significant delays and financial losses.

Choosing, developing, and deploying solutions that monitor threats and ensure data security for networked systems is an increasingly important role for responsible material handling companies.

“Isolating customers from risk as much as possible is the goal,” says Pankakoski. “There are no systems that are totally secure, so having the capability to assess, recognize, and mitigate risks is extremely important. To do this, you have to consider security as a critical design factor.”

Too many organizations, he says, realize the risks only after having implemented a new technology or practice.

“Whenever we look at incorporating a new tool, we ask not only how it can be used, but how it might be misused, because there are countless risks involved — from the safety of people, equipment, and the immediate operational area, to the security of data that can have massive implications for commercial companies and whole economies.”

With the COVID-19 pandemic, ongoing conflicts, and other world events putting the spotlight on supply chain security, a robust approach to security is no longer an option, it is a necessity. As Pankakoski says, “No shortcuts allowed.”

Morrow Roberson echoes Pankakoski and adds that a proactive approach to security also requires ongoing communication between the public and private sectors.

“The public sector already plays a role in alerting companies and relevant government bodies of potential overseas threats, as well as in tracing those responsible for cyberattacks. But with supply chains growing in size, complexity, and digital connectedness — against a backdrop of widespread geopolitical tensions — the need for awareness and communication is only increasing,” she says.

Sustainability imperatives

As in most industries, embracing more sustainable practices has become a necessity in material handling to align with the evolving standards and expectations of regulators, customers, and other stakeholders, as well as with the aspirations of companies themselves. In many cases, this means a deepened approach to managing risks and opportunities, which intersects closely with both technology and security.

The regulatory landscape is morphing to support and to indeed drive this transition according to Morrow Roberson. “Overall, good progress is being made in logistics and related industries,” she explains, “but regulatory measures stand to have a significant impact on the transition to more sustainable practices, especially in the US and other regions that currently have fewer reporting requirements than the EU, for example,” she says.

With companies such as Konecranes putting sustainability at the heart of their operations, a ripple effect can then start to be felt across the industry.

“Helping customers find ways to reduce their greenhouse gas emissions is the main way that manufacturers like Konecranes can contribute to a more sustainable industry,” Pankakoski says, “and technology gives us new opportunities to do that.”

As an example, he mentions that equipment monitoring systems designed to help with predictive maintenance also provide the company with data about operational efficiency — for instance, unproductive idle times, where equipment is consuming energy and generating emissions, but not performing a useful action.

“The more information we can gather and give to our customers, the more support they have in their own sustainable transition.”

Another important area where great strides are being made is in the electrification of material handling machinery - which together with technological advances in automation are also driving greater efficiencies and precision in addition to cutting emissions.

Moving what matters - now and in the future

The role of material handling in the global economy is vital, but that role is also evolving to keep pace with technological advancements, security needs, and sustainability goals. Dynamic legislative environments, where new laws, regulations, and directives aim to increase security and promote sustainable practices, continue to be a major driver of this evolution alongside market forces. In many cases, this means adopting new ways of working and doing business.

To stay ahead of the curve, Morrow Roberson sums up three take-home focus points: “Increased awareness and education for employees, deeper partnerships both within industries and across sectors, and more unified standards for security and sustainability.”

This future-proofing approach will not only help protect and strengthen global supply chains, it will also be a means to be a force for good - while continuing to move what matters.