Material flow is the basic object of research, management and optimization in logistics. It represents the movement of inventory values both within the enterprise and beyond.
Logistics of material flows is a way of organizing and controlling a process at any stage of production to ensure maximum profit.
Types of logistic 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 types of flow:
- input;
- output;
- interior;
- external.
The first is a stream 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.
The output material flow, on the contrary, enters the external environment from the enterprise. To determine its indicator, it is necessary to add the number of goods shipped at points of sale and to wholesale warehouses.
The internal flow is formed as a result of certain operations with shipment within the production organization or logistics system. External material flow is related to the activities of the organization, as well as to points of sale of products or subsidiaries.
Classification of material flow by nomenclature and assortment
This characteristic is important for enterprises with any product range. 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-assorted and multi-assorted. They differ among themselves in the amount of incoming or shipped products.
Classification of material flows by physico-chemical properties
Bulk cargoes are goods of mineral or mountain origin. These include sand, ore, coal, natural agglomerates and much more.
Bulk cargo - products that are transported without containers. This is grain and cereals, as well as other similar products.
Bulk cargoes are transported in tanks, bulk vessels. The process of shipment and transportation is impossible without special technical means.
Piece cargo - products have different physicochemical properties and parameters. It is transported in containers, bags, boxes, without containers.
Other material flow classifications
A variety of classifiers of the movement of inventory values helps to keep accounting records properly.
Material logistics flows are divided according to the following criteria:
- By quantitative basis. Mass - appears when a large batch of products is shipped. Small - shipment of small consignments with minimal vehicle load. Large - goods are shipped by several wagons or cars. Medium - goods that come from transportation by small cars or single cars.
- By specific gravity. Lightweight flows make it impossible to fully utilize the vehicle's carrying capacity. For heavy vehicles, the permissible vehicle carrying capacity is involved.
- By degree of compatibility. The compatibility and incompatibility of goods during transportation, handling and storage are taken into account.
The correct organization of material flows is based on the latest classification. We give an example. It is necessary to deliver dairy products from the warehouse to retail outlets. Confectionery will be shipped with it. The conditions and shelf life of such products are different. Therefore, they cannot be loaded into one vehicle.
The principles of organization of material flows
There are several factors that affect the proper planning of shipments of goods. Material flow of any type corresponds to informational.
The material flow management system is based on such basic principles: general logistical and specific. They, in turn, are classified as follows:
- Systematic approach - used when considering the elements of a logistics system. The goal is to optimize material flow and maximize profits.
- The principle of total costs is keeping records of material and information flows. The task is to identify the costs of managing the logistics system.
- The principle of global optimization is the optimization and management of material flows as a result of the coordination of local chains.
- The principle of the theory of compromises for the redistribution of costs is the correct organization of the logistic process between all elements of the system.
- The principle of complexity. Used to create and optimize logistics management.
- The principle of logistic coordination and integration. This is the achievement of normal functioning between all participants in the logistics system at the manufacturing enterprise.
- The principle of universal quality management. It provides the reliability and stability of each element of the logistics system.
- The modeling principle is used to create, analyze, organize logistics processes in various circuits of the system.
- The principle of stability and adaptability. The logistics system must be stable. Having studied the influence of negative factors, you can establish logistics at any enterprise.
- The principle of integrity is the provision of information cooperation between all parts of the system.
The material flow system is based on these ten principles. To ensure its normal operation, it is necessary to use other indicators and characteristics of the logistics system.
Material management
Stable work of a production enterprise is impossible without well-established logistics. There are two methods of managing material flows: pushing and current systems.
The first method assumes that production begins, is carried out and ends at the same stages of the production line, depending on the logistics system. Each 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 and others) are supplied to the site as necessary. There is no centralized management in this system. It contributes to a significant reduction in inventories, as the movement of material flows passes through only a few elements of the logistics system.
An example of a pushing system of logistic material flows
This is what the approximate traffic pattern looks like: production - packaging - shipping.
As a rule, at a manufacturing enterprise of significant proportions, the material flow process includes more than 10 elements:
- workshop for the harvesting of raw materials;
- workshop for its processing;
- production shops of various kinds;
- regulatory authority;
- management workshop;
- packaging link and so on.
It all depends on the type of manufactured products, as well as its characteristics.