Material flow in logistics: overview, characteristics, types and schemes

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Material flow is the basic object of research, management and optimization in logistics. It represents the movement of inventory items both within the enterprise and outside it.

Logistics of material flows is a way of organizing and managing the process at any stage of production in order to maximize profits.

Types of logistics material flows

There are several classifications of such a turnover of valuable goods. The first is characterized by the attitude to the logistics system. It includes three kinds of flow:

• input;
• day off;
• internal;
• external.

The first is the flow that entered the logistics system from the external environment. It is determined by the following formula: the sum of the values of material flows divided by unloading operations.

Output material flow, on the contrary, enters the external environment from the enterprise. To determine its indicator, it is necessary to add up the number of goods shipped to sales outlets and wholesale warehouses.

Internal flow is formed as a result of performing certain operationswith shipment within a manufacturing organization or logistics system. External material flow is related to the activities of the organization, as well as points of sale of products or subsidiaries.

Classification of material flow by nomenclature and assortment

This characteristic is important for businesses with any product range. The material flow can be single-product and multi-product. The first type refers to products of one type, the second - to a wide variety of goods.

According to the assortment, the flows are classified as single-assortment and multi-assortment. They differ in the amount of incoming or outgoing products.

Classification of material flows by physical and chemical properties

Bulk cargoes are cargoes of mineral or mountain origin. These include sand, ore, coal, natural agglomerates and much more.

Bulk cargo - products that are transported without containers. These are grains and cereals, as well as other similar products.

Liquid cargoes are transported in tanks, tankers. The process of shipment and transportation is impossible without special technical means.

Packed goods - products have different physical and chemical properties and parameters. It is transported in containers, bags, boxes, without containers.

Other material flow classifications

Variety of inventory movement classifiershelps to keep accounting records correctly.

Material logistics flows are divided according to the following criteria:

• On a quantitative basis. Bulk - appears when a large batch of products is shipped. Small - shipment of small consignments of goods with a minimum vehicle load. Large - shipment of goods is carried out by several wagons or cars. Medium - goods that come from transportation by small cars or single wagons.
• By specific gravity. Lightweight flows do not make it possible to fully use the carrying capacity of the vehicle. For heavy vehicles, the permissible carrying capacity of the vehicle is used.
• According to the degree of compatibility. Compatibility and incompatibility of goods during transportation, processing and storage are taken into account.

The correct organization of material flows is based on the latest classification. Let's take an example. It is necessary to deliver dairy products from the warehouse to retail outlets. Along with it, confectionery products will be shipped. The conditions and shelf life of such products are different. This means they cannot be loaded into one vehicle.

Principles of organizing material flows

There are several factors that affect the correct planning of shipments of goods. The material flow of any type corresponds to the information flow.

The material flow management system is based on the following basic principles: general logistics and specific ones. They, in theirturn are classified as follows:

1. System approach - used when considering the elements of the logistics system. The goal is to optimize material flow and maximize profits.
2. Principle of common costs - keeping records of material and information flows. The task is to identify the costs of managing the logistics system.
3. The principle of global optimization is the optimization and management of material flows as a result of the coordination of local chains.
4. The principle of the theory of trade-offs for the redistribution of costs is the correct organization of the logistics process between all elements of the system.
5. The principle of complexity. Used to create and optimize logistics management.
6. The principle of logistics coordination and integration. This is the achievement of normal functioning between all participants in the logistics system at a manufacturing enterprise.
7. The principle of total quality management. It ensures the reliability and stability of each element of the logistics system.
8. The principle of modeling is used to create, analyze, organize logistics processes in various chains of the system.
9. The principle of sustainability and adaptability. The logistics system must function stably. Having studied the influence of negative factors, it is possible to establish logistics at any enterprise.
10. The principle of integrity is to ensure information cooperation between all parts of the system.

Material flow systembased on these ten principles. To ensure its normal operation, it is necessary to use other indicators and characteristics of the logistics system.

Material flow management

Stable operation of a manufacturing enterprise is impossible without well-established logistics. There are two methods of material flow management: push and flow systems.

The first method assumes that the production of products begins, is carried out and ends at the same stages of the production line, depending on the logistics system. Every action is coordinated. The transfer of goods occurs on command from a specific control center. The site has a specific plan and production indicators. All elements of the system function separately, but are interconnected.

The current system is characterized by the fact that all funds (raw materials, materials, finished products, etc.) come to the site as needed. There is no centralized control in this system. It contributes to a significant reduction in inventories, since the movement of material flows through only a few elements of the logistics system.

Example of push system of logistics material flow

This is the approximate flow pattern: production - packaging - shipping.

As a rule, in a large-scale manufacturing enterprise, the material flow process includes more than 10 elements:

• workshop for the procurement of raw materials;
• workshop for its processing;
• production shops of various kinds;
• supervisory body;
• management shop;
• packing link and so on.

It all depends on the type of product being manufactured, as well as its characteristics.