Material and information flow is formed in the process of transporting, warehousing and other operations with finished products, semi-finished products, raw materials. It is formed throughout the life cycle of products - from the primary source of materials to receipt to the final consumer. Let us further consider what constitute material and information flows.
General information
Material flow - these are objects that are in a state of motion. These include, in particular, finished and unfinished products. Operations relating to their movement in space are applied to these objects: unloading, loading, transportation, packing, consolidation, sorting, disaggregation, and so on. Information flows are messages in documentary (electronic and paper), speech and other forms that accompany service or material movements.
Basic concepts
The flow of material resources is represented by raw materials, auxiliary and basic materials, fuel, components, spare parts, packaging, containers, waste. Finished products are products that have completely passed the technological cycle and control at the enterprise, are equipped, delivered to the warehouse or shipped to the customer (intermediary). Work in progress is an object that requires refinement in accordance with the applicable technology.
Key features
The main parameters that characterize the material flow are:
- quality, assortment and product range;
- overall parameters (linear dimensions, area, volume);
- weight characteristics (gross / net, total weight);
- physiochemical properties;
- packaging specifications;
- terms of the contract of supply, sale, transfer;
- cost characteristics.
When conducting operations, other signs may be taken into account.
Types of material flows
There are various criteria by which classification is carried out. Material flow in logistics systems can be internal or external. In the first case, it does not go beyond the scope of operations, in the second - it is outside of them. Depending on the nomenclature, single and multi-product objects are distinguished. According to the assortment, the flows are divided into single and multi-assorted. In addition, there are output and input objects. Separation of the assortment is necessary because it has a significant impact on the work with the products. In particular, the logistic management of material flows in the food wholesale market, where meat, vegetables, fish, and fruits are sold, is significantly different from operations carried out in a potato storage, where there is one name of the goods. Depending on the movement in time, there are:
- Continuous movement. In particular, they include material flows in closed-loop production, gas and oil products, the movement of which is ensured through pipeline transport.
- Discrete movements.
Other categories
Specialists also distinguish:
- Heavy material flow. This is the movement of objects, through which the full use of the carrying capacity of transport is ensured. At the same time, products do not require large storage areas for storage. A heavy material flow is cargoes, the weight of one place of which is more than 1 ton when moving through water and 0.5 tons when transported by rail. Transport metals are an example.
- Lightweight stream. It is represented by a load that does not allow the vehicle to use the full load capacity. A ton of such flow occupies a volume of more than 2 cubic meters. Light cargo is, for example, tobacco products.
- Bulk products. They are transported without packaging (containers). Their main property is flowability. Transportation of such flows is carried out in open or bunker cars, in containers, on platforms. An example is grain.
- Bulk cargo. These include sand, ore, salt, coal and more. As a rule, these goods are of mineral origin. They are transported without containers. These objects, like the previous category, have flowability. Some goods may agglomerate, cake, freeze.
- Commodity objects. They have a variety of physico-chemical characteristics, volume, specific gravity. Such goods can be transported in bags, crates, containers, without containers. They can be dimensional and lengthy.
- Bulk cargo. As a rule, they are transported in tanks. Operations with such objects are carried out using special tools.
Information flows
Messages accompanying the movement of goods may occur under external influence on the appropriate environment. The main parameters that determine information flows include:
- Direction of movement or destination.
- Source of occurrence.
- Transmission speed. It is determined by the number of messages per unit of time.
- Overall volume.
Classification
Information flows can be:
- Leading in the same direction.
- Synchronous oncoming.
- Ahead with a different direction.
- Lagging oncoming.
- Synchronized with different directions.
- Ahead of oncoming.
- Lagging in different directions, etc.
Integration
It can be carried out in horizontal or vertical direction. Integration is based on flow control. The horizontal direction provides the necessary data for all objects and operations: from the receipt of materials, raw materials and components to finished products. As a result, all impacts and the consequences arising from them are linked to the overall strategy and goals of the production and implementation system. Vertical integration allows you to cover all levels of the technological cycle direct and feedback. This ensures the timely receipt of relevant data on the supply of raw materials, manufacturing processes, assembly, control tests, product delivery to end users.
Management
The complex of logistics operations is determined in accordance with the product life cycle. In turn, it includes:
- Stage of development. This stage has a long duration and is associated with investing in experimental design, research activities.
- Stage of product implementation. This is also a long stage. It is characterized by significant costs and an almost complete lack of income.
- Stage of growth. It is determined by increased demand for products. At this stage, managers have certain difficulties. In particular, they are associated with forecasting demand, identifying key points and places in which consumers will concentrate material flow. Inaccuracy of this or that information can provoke big expenses.
- Stage of "maturity". At this stage, the production growth rate, income level reach maximum rates. By the end of the stage, a decrease in sales volume may be noted. It is due to the activity of competitors and the launch of new products on the market. At this stage, the tasks of logistics management include the distribution of products over the distribution network and control of sales.
- Stage of decline. This stage is characterized by a decrease in sales and a decrease in revenue. This situation is determined by the saturation of the market, the appearance of new products, competitors, the development of scientific and technical base. Logistic management at this stage is focused on reducing the number of outlets, reducing costs and inventory.
Cycle
It consists of a complex of the following operations:
- Ordering and stockpiling.
- Processing customer applications, procurement.
- Delivery, product release.
- Collection of applications and preparation of documentation.
- Analysis of operations, reporting.
Additionally
The functioning of the logistics system will only be effective when it uses databases. Any management process includes the implementation of the functions of collecting, processing, transmitting, analyzing information and making decisions. Information refers to a set of data on environmental conditions that contribute to reducing the existing degree of uncertainty, lack of knowledge. This information is reproduced orally, in writing or in other ways. Logistics is focused on ensuring that all stages of production, transportation, and sales are considered as a continuous and unified process of transformation and movement of the product and the information and data associated with it. Up-to-date information allows enterprises to:
- Identify operational, tactical, and strategic objectives and goals.
- To control the current state of affairs at the enterprise, in its units, the state of processes that are carried out in the organization.
- Make timely and motivated administrative and administrative decisions.
- Coordinate the work of units to implement the tasks and achieve goals.
Conclusion
Information and material flows act as integral elements of commodity circulation. The occurrence and transmission of data are characterized by the object and source of this information. The latter is a component that can create or generate a message that is part of the logistics system. The data object is the links of the management structure: transport, employees, divisions, premises, inventories and so on. A competent analysis of the available information allows you to orient the material flow, direct it to the right user. In the work of the manager, it is necessary to take into account various external and internal factors. To ensure the effectiveness of material and information flows, advanced scientific and technical means and achievements are currently used. They allow not only to have the most relevant data on the state of the market, supply and demand, activity of competitors, but also to make forecasts for the medium and long term.