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Material flow management aims to use materials efficiently in industry, reducing costs and creating a safer environment. It considers economic, environmental, and social effects, optimizing processes and reducing waste. Professionals use software and fleet management tools to track performance and reduce fuel consumption.
Material flow management refers to the practice of using materials efficiently in an industrial setting. For example, a materials flow manager in the manufacturing industry might consider factors such as how raw materials are transported to plants, the type of equipment used to deliver materials to individual departments, and the amount of labor required. The goal of most material flow management professionals is to reduce costs, use less fuel, and provide the safest possible environment for workers and the general public. Material flow management has three different concerns: economic effects, environmental effects and social effects.
A professional responsible for overseeing the flow of materials aims to optimize processes in order to reduce costs and increase profit margins. He or she could analyze the transportation routes that delivery people use to get to the facilities. They might also consider the prices offered by different vendors and the performance of the vendor. Suppliers who consistently deliver late or incorrect deliveries are likely causing a customer company to lose money. A material flow management professional might contact suppliers to express dissatisfaction with their performance or find new suppliers to work with.
When done effectively, material flow management can use energy more efficiently and create less waste. A common goal of material flow professionals is to only purchase materials that have real value. For this reason, the managers aim to reduce waste and use minimal amounts of energy. The health and safety of the general public are also considered important factors in material flow management. For these reasons, many sustainability advocates are also proponents of this management method.
Professionals who want to practice material flow management often rely on software that allows them to compare the performance of different departments, as well as the performance in different quarters. For example, to make sure inventory numbers are accurate, a manager might look at charts that allow him to observe trends and build a reasonable perspective. A manager can also use software to calculate quantities and costs for BOMs.
Fleet management can be an important aspect of material flow management. A manager may use a global positioning system (GPS), for example, which allows him to track the locations and routes of his drivers. Managers can also provide fleet drivers with mobile devices that allow them to access intelligence during deliveries. Effective fleet management also allows professionals to monitor and reduce fuel consumption.
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