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

Material flow is the basic object of research, management and optimization in logistics. It is a movement of commodity-material values both inside 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 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 the flow that entered the logistic system from the external environment. It is determined by this formula: the sum of the quantities of material flows divided by the 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 quantity of goods shipped to points of sale and to wholesale warehouses.

The internal flow is formed as a result of certain operations with the shipment within the production organization or the logistics system. External material flow is related to the activities of the organization, as well as to the 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. The material flow can be single-product and multi-product. The first type refers to the production of one type, the second - to a large variety of goods.

On the assortment, the streams are classified as single-range and multi-assorted. They differ among themselves the quantity of incoming or shipped products.

Classification of material flows by physical and chemical properties

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

Bulk goods are products that are transported without packaging. This is grain and cereals, as well as other similar products.

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

Tarno-piece goods - products have different physical and chemical properties and parameters. It is transported in containers, sacks, boxes, without tare.

Other classifications of material flows

A variety of classifiers of the movement of commodity-material values helps to keep the accounting correctly.

Material logistic flows are divided according to the following criteria:

• On a quantitative basis. Mass - appears when shipping a large batch of products. Small - shipping small lots of goods with a minimum load of the vehicle. Large - goods are shipped by several cars or cars. Medium - cargo that comes from transportation by small cars or single wagons.
• By specific gravity. Lightweight flows do not allow full use of the vehicle's carrying capacity. When heavy in transport, the permissible carrying capacity of the vehicle is involved.
• By the degree of compatibility. 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. Let us give an example. It is necessary to deliver dairy products from the warehouse to the outlets. Together with it, confectionery products will be shipped. The conditions and shelf life of such products are different. Hence, they can not be loaded into one vehicle.

Principles of organization of material flows

There are several factors that influence the proper planning of shipments of goods. Material flow of any type corresponds to the information flow.

The material flow management system is built on such basic principles: general and specific. They, in turn, are classified as follows:

1. The system approach is used when considering elements of the logistics system. The goal is to optimize the material flow and get the maximum profit.
2. The principle of total costs is the recording 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 logistical process between all elements of the system.
5. The principle of complexity. They are used to create and optimize logistics management.
6. The principle of logistic coordination and integration. This is the achievement of normal functioning between all participants of the logistics system at the manufacturing enterprise.
7. The principle of universal 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 circuits of the system.
9. Principle of sustainability and adaptability. The logistics system should function stably. Having studied the influence of negative factors, it is possible to establish logistics at any enterprise.
10. The principle of integrity is the provision of information cooperation between all parts of the system.

The system of material flows is based on these ten principles. To ensure its normal operation, it is necessary to use other indicators and characteristics of the logistics system.

Materials Management

Stable operation of the production plant is impossible without well-established logistics. There are two methods for managing material flows: the pushing and the current system.

The first way 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 agreed. The transfer of goods occurs on a command from a particular control center. The site has a certain plan and production indicators. All elements of the system function separately, but are interrelated.

The current system is characterized by the fact that all the funds (raw materials, materials, finished products, etc.) come to the site as needed. There is no centralized management in this system. It contributes to a significant reduction in production reserves, since 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 the approximate scheme of motion: production - packaging - shipping.

As a rule, at a manufacturing enterprise of considerable scale, the process of material flow includes more than 10 elements:

• Shop for raw materials;
• Workshop for its processing;
• Production workshops of various types;
• Controlling body;
• Management shop;
• A packing link and so on.

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