How Modular Carts Support Automated Material Handling Systems

Automation is a longstanding trend in material handling, but 2026 brings a new emphasis: phased adoption of automated material handling systems. That’s according to the Material Handling Equipment Distributors Association (MHEDA), which issued a list of material handling business trends for the year.

“Customers are increasingly requesting phased automation strategies that offer measurable returns at each stage,” says the MHEDA report. This step-by-step approach to automated systems is “driving demand for flexible, modular solutions that can adapt or scale over time,” MHEDA says.  

Gradually introducing automated material handling systems allows operations to get immediate benefits, while limiting cost and complexity. But the phased approach depends on automation equipment that can easily scale as you approach the eventual goal of end-to-end warehouse automation. 

That equipment includes modular industrial carts. Here’s how the right warehouse carts can support every stage of a phased automation strategy.  

The Role of Industrial Carts in Warehouse Automation

As MHEDA suggests, modular material handling equipment is the solution to the automation challenge. It allows you to automate one system at a time, while leaving room to expand without replacing anything from the ground up. 

But what sort of automation equipment should you start with? Automated guided vehicles (AGVs) or autonomous mobile robots (AMRs) are great places to begin your phased approach to material handling automation.

Understanding the Difference Between AGVs and AMRs

Both of these automated material handling solutions transport materials across the floor. The difference is that AGVs require external guidance mechanisms (markings, magnetic strips, lasers, etc) while AMRs travel via their own navigation systems. 

Both AGVs and AMRs are ideal for automating material flows, but they don’t carry much on their own. Instead, they act as autonomous tugs for a material handling train. That’s where carts come into play. 
Carts for Automated Material Handling Trains

Tugger Carts and Industrial Trailers expand the capacity of your AGV-based material handling system. Specialized models like Mother-Daughter Carts support specific use cases, from line feeding to order picking and more. Best of all from the perspective of phased automation, tugger trains are inherently modular: They allow you to swap out cart models to suit the changing needs of your facility. 

For the most flexibility, however, choose warehouse carts that are also modular. Modularity at every level ensures you’ll always have the perfect solution for situations that change with every step you take toward greater automation.

Modular Tugger Carts for Automated Material Handling Systems

Modular Tugger Carts from BHS, Inc. feature bolt-together components that allow you to make adjustments as needed. (As an added bonus, this design also ensures extremely short lead times on every order.) 

Add or remove shelves, lip restraints, corner brackets, rubber bumpers, and more. Upgrade casters, swap out hitches and tow bars, or support manual operation with handles and push bars. All modular components are available as factory options or for bolt-on, bolt-off field replacement. 

Don’t see the features you need? We can also develop full custom Tugger Carts to meet any specification. Choose your own dimensions, capacities, shelving designs, or special material handling systems like rollers, ball transfer tabletops, or tilt systems. 

Modular Tugger Carts from BHS, Inc. are available with three steering configurations:

• Quad Steer: This design features a pair of axles that turn as a single unit. This provides great tracking, and is popular in picking trains and milk-run intralogistics.
• Center Steer: These carts include four casters at unit corners with two rigid wheels in the center of the base. That allows carts to turn on a dime. This design is ideal for complex routes with tighter turns.
• Dual Steer: Two fixed casters provide stable tracking, while two swivel casters support strong maneuverability.

Planning to automate parts of your picking or replenishment systems? Consider modular Mother-Daughter Carts from BHS, Inc. Let your AGV or AMR tug the Mother Cart along material handling routes. Then a nested Daughter Cart provides efficient access at the point of use.   

Phasing in automated material handling systems can be a challenge. Modular carts from BHS, Inc. make the process much easier. Contact our sales team at 1.800.BHS.9500 to learn more about Tugger Carts, Mother-Daughter Carts, and more material handling solutions for every industry.