Bitergo's Logistics and Warehouse Management Glossary

Material flow system

Written by Bitergo | Jun 25, 2024 8:58:32 AM

A material flow system is an integrated structure within a company or along a supply chain that has been developed to control and optimize the transport, storage and processing of raw materials, components or finished products. Material flow systems include various components and technologies such as conveyor belts, warehouse management systems, automated transport systems and software for monitoring and controlling material flows. This makes material movements more efficient and smoother, resulting in improved operational efficiency, reduced costs and waste, and shorter production and delivery times.

Implementing a material flow system requires detailed planning and analysis of all logistical processes in order to effectively coordinate the flow direction of materials, required quantities, transport methods and warehousing. A well-designed material flow system contributes significantly to a company's competitiveness as it increases efficiency and productivity and increases flexibility to respond to changing market conditions and customer requirements.