: What Are the Benefits of Material Flow Optimization?

In order to be able to optimize material flow, it is first necessary to understand all the weak points and untapped potential in the process.

It is based on data from transportation and storage processes, which are determined by a material flow analysis. Conventional material flow analysis typically divides the process into five phases:

1. Inventory: First, current processes, transport routes and material quantities are recorded to ensure transparency. Workflows, cycle times, shift schedules, bill of materials and production data are also documented.
2. Spatial planning and layout analysis: Layout analysis examines the spatial aspects of material flow. This involves measuring and documenting the transport routes between workstations. In addition, storage and production areas are evaluated for capacity and accessibility. The purpose of spatial planning is to optimize the arrangement of machines and storage areas. Short transport routes reduce the time and energy required. Ergonomics are taken into account  to improve working conditions and increase process efficiency.
3. Process modeling: Process modeling depicts individual process procedures in their temporal and spatial sequence. Special attention is paid to the interfaces between the different areas. In order to specifically analyze critical process steps in a targeted manner, disruptions, special cases or bottlenecks are visualized in the model.
4. Resource analysis: Resource analysis involves a systematic analysis of available capacities and their utilization: Personnel, means of transportation, and technical equipment are evaluated.
5. Cost calculation: The final step is to calculate and record the costs incurred. By allocating transportation, personnel and energy costs to individual process steps, the respective costs can be accurately determined. Cost-intensive areas are identified and potential savings analyzed using profitability calculations.

As data volumes increase, planning and optimizing material flow becomes more complex. Reliable and powerful software, such as a warehouse management system (WMS), offers a way to make daily warehouse and logistics processes transparent. A WMS is a useful tool for all phases of material flow analysis. PSIwms, for example, offers a function to take stock of the article master and warehouse inventory and to transfer booking functions via the interface to the ERP system.

A WMS is an important tool for spatial planning and layout analysis. It links the warehouse locations of different units, such as storage areas, movement areas, work centers, etc., and manages transportation orders. It takes into account different transportation systems, route planning, and space capacities.

Using process modeling, a WMS allows companies to achieve a variety of solutions using simple or complex sets of rules without requiring any programming changes. Even in live operations, modeling can easily be used to flexibly reconfigure or expand warehouses. Extension modules for resource analysis are used to plan the use of resources in a logistics operation. It takes into account the tasks to be performed and the processes, times and resources required to accomplish them.

Material flow optimization ensures that all resources, whether goods or information, flow smoothly through the system and arrive at their destination on time. A detailed material flow analysis enables companies to identify bottlenecks and eliminate them in a targeted manner. Whether it is incoming goods, storage, stock transfer, retrieval or dispatch - a WMS maps the entire internal material flow in real time. Material flow optimization automates the collection of data and the calculation of key metrics for greater efficiency.