The purpose of this study was to understand the next generation of manufacturing in relation to material handling. The research did this by setting the question of how Smart Industry could improve existing material handling processes. Smart Industry is the term to describes what is expected to be the next generation of manufacturing. The thesis was conducted as an exploratory study which meant that it began with comprehensive literature review which was followed of an analysis of three processes within material handling at an automotive company. The observations and analysis were based on Lean philosophy.  Identified issues and challenges were then set in the context of Smart Industry to find solutions. As a result of the analysis excessive material handling and wasteful buffers was found. An example of this was physical transports of material only so the system could register its arrival. These issues were identified to affect the lead time in a negative way. Smart Industry was found to have solutions for general material handling issues such gaining higher visibility with sensors and Big Data. The major finding of this paper was the Smart Industry solutions for the identified issues within the examined processes. One of these solutions is autonomous vehicle which can reduce the transport time with 66%. The conclusion of the study was that the solutions within Smart Industry can not only be used to improve the examined processes but can be generalized over material handling. Furthermore, a growing digitalization will require that companies engage in the development of Smart Industry technology.