Materials handling is the movement, protection, storage and control of materials throughout the slaughter, distribution, and use and disposal process. Effective material movement is key to any supply chain as accidents impact production output, inventory control and ultimately supply chain performance.
The Role of Materials Handling in the Supply Chain
In any supply chain the transportation of raw materials, intermediate goods and finished goods is a core activity that has to be done in an organized way. Materials handling is important to ensure that these items are moved, stored and retrieved quickly and without congestion or damage. An optimally implemented materials handling system can yield shorter lead times, lower inventory costs and higher customer satisfaction by delivering items faster. Especially in large supply chains with complex networks where multiple suppliers and customers are involved, the role of materials handling plays a bigger part.
Integration of Materials Handling Systems
In any supply chain the level of integration is key to reducing inefficiencies and improving operations. Connecting materials handling systems with the rest of the supply chain (e.g. procurement, production and supply, inventory control and logistics) gives companies a coherent end to end process. Through a common data platform companies can track materials and inventory in real time and reduce inventory errors.
One of the key components of integration is the use of Enterprise Resource Planning (ERP) systems which allows the sharing of data across departments. This gives an integrated system where the entire supply chain can use real time information e.g. inventory levels, order status, delivery time. Integration also means communication between suppliers, manufacturers and logistics houses so that materials get to the right place at the right time.
Materials Handling Strategies
Materials handling is key to cost savings, service levels and competitive advantage. Companies do many things to further improve how they handle materials.
Firstly, process standardization plays a big role in optimization. By creating standard operating procedures (SOPs) for materials handling, companies can reduce variation, reduce mistakes and get consistent results. Standardised work practices means practices are the same for all employees, not just for efficiency but also reduces the risk of injury and damage to equipment.
Secondly, warehouse and distribution centre layout optimization is also one of the key. Ordered layout helps the flow of materials throughout the supply chain, reduces time spent by workers in transit and congestion.
Thirdly, implementing real time tracking systems and automation can deliver significant improvements in materials handling. Real time tracking systems, including RFID barcode scanning, allows you to track the movement of goods in the supply chain, gives operational expertise on availability, position and condition.
Technology and Innovation in Materials Handling
Technology and innovation are the drivers of evolution in materials handling, giving companies the tools to redesign their supply chains. The adoption of new technologies such as robotics, artificial intelligence (AI), machine learning and Internet of Things (IoT) is changing the material handling paradigm in supply chains.
Sustainable Materials Handling
With growing environmental awareness, sustainability is a factor to be considered in materials handling. Sustainable materials handling practices reduces energy consumption, minimises waste and optimises resource use. Not only that reduces a company’s carbon footprint but also result to long term cost savings and increasing environmental regulations.
Risk Management and Safety in Materials Handling
Materials handling is associated with many risks such as worker injuries, equipment breakdown and supply chain disruption. Good risk management is key to successful material handling operations. Companies must prioritise their workers’ safety and ensure materials handling equipment is well maintained to reduce the likelihood of accidents.
