---
title: Material flow
description: Material flow describes the route that raw materials, components or finished products take along a supply chain from the point of entry to the end customer.
---

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## Terms & explanations relating to logistics, supply chain management and e-commerce

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# Material flow

The term material flow describes the path that raw materials, components, or finished products take within a company or along a supply chain from their point of entry to their point of use or the end customer. This process includes all physical movements of materials, such as transport, storage, processing, assembly, packaging, and shipping.

An efficient material flow is crucial for the smooth operation of a company as well as for reducing costs and waste. By optimizing material flow, companies can shorten production times, lower inventory levels, and reduce delivery times. Factors such as flow direction, quantities, transportation methods, storage, and automation play an essential role in this process.

The analysis and optimization of material flow are therefore key tasks in the fields of logistics and supply chain management, aiming to improve the efficiency, productivity, and competitiveness of companies.

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- [Glossary](https://bitergo.com/en/glossary)

 

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