Understanding Material Flow in Automated Handling and Fulfillment

Landon Mumbower | 3 April 2024

You’re walking into a bustling warehouse, where the air buzzes with the orchestrated hum of voices, footfalls and equipment. In one corner, various SKUs are received and swiftly stored, each item finding its place. Across the floor, synchronized activity surrounds order fulfillment: items are picked, packed and ready for their journey to customers or stores. This is material flow and it plays a vital role in distribution operations.

Mastering Material Flow: Efficiency and Customer Satisfaction

Material flow is the backbone of diverse industrial landscapes, from a factory handling raw materials to create products to a fulfillment center ensuring that online purchases arrive promptly. It's not just transporting items; it's strategic movement, precise timing and resource optimization. When material flow is efficient, operations can run like clockwork, waste is minimized and customers remain blissfully unaware of the intricate logistics that fulfill their demands. On the flip side, a disruption in material flow can lead to delays, inflated costs and customer dissatisfaction.

Navigating the complexities of material flow, from handling individual SKUs to the final delivery of products, is essential for efficiency. We'll examine how these processes contribute to operational success. Additionally, we'll highlight the transformative impact of expert consulting and material flow analysis to effectively address logistical challenges and elevate business performance.

Material Flow in Order Fulfillment: From Order to Delivery

In order fulfillment – both e-commerce and omnichannel operations – material flow is an evolving process. It begins with the meticulous sorting, staging and storing of items to ensure accurate inventory and that products are available to fulfill an order. Following this, orders are picked and sorted with, a stage where precision is paramount to ensure each customer received exactly what they ordered. Next, items are carefully packaged and labeled. The process culminates in shipping and distribution, where efficiency is key to meeting delivery commitments.

As e-commerce expands, the fulfillment landscape is constantly in flux, driving the need for more efficient, innovative and cost-effective strategies. This requires a flexible approach, adapting to the ever-changing demands of customers and the market to maintain a seamless and effective material flow.

Navigating the Challenges: Common Bottlenecks in Material Flow for Fulfillment

In fast-paced order fulfillment, navigating material flow is like running an obstacle course. While we strive for efficiency and precision, certain bottlenecks are almost inevitable. Recognizing and addressing these challenges will help maintain the rhythm of your operations.

• Inventory Mismanagement: An inaccurate inventory can lead to delayed order processing to increased customer wait times. Implementing robust  automation solutions and warehouse management software can help keep inventory levels accurate and responsive.
• Inefficient Order Picking Processes: One of the most significant bottlenecks occurs during order picking. Inefficient picking strategies can lead to wasted time and errors. Solutions like optimized picking routes, advanced picking technologies, and effective workforce training can significantly streamline this process.
• Packaging Delays: Packaging can become a bottleneck when dealing with a diverse range of products, requiring different packaging materials and techniques. Automated packaging solutions and well-organized packing stations can mitigate these delays.
• Labor Challenges: Inadequate staffing or lack of skilled workers can slow the fulfillment process. Investing in employee training and automation can alleviate pressure on human resources.
• Technology Integration Issues: As we increasingly rely on technology for various stages of fulfillment, integration issues can become a bottleneck. Ensuring seamless integration of all systems, from order management to material transportation, is crucial for a smooth operation.

Consulting Services in Material Flow Optimization

Bastian Solutions' consultants are experts in incorporating material flow principals into selecting and integrating technology to enhance operational efficiency and reduce costs. This expertise is particularly effective in evaluating the flow from various pick engines like grid systems, cranes and shuttles. Understanding material flow can help determine sizing and improving efficiency in these systems.

Material flow is one component of Bastian’s Operations Master Plan. The Master Plan ensures the optimal configuration of material handling equipment, processes and staffing, aligning perfectly with your company's future vision. This comprehensive plan is crucial for any scenario, whether it's the development of a new facility, or enhancing existing operations. This approach ensures that solutions are effectively scaled and intricately tailored to streamline material flow within your operations.

Bastian Solutions' Approach: The 4 Key Phases of an Operations Master Plan

The Master Plan encompasses four key phases to optimize material handling and operations:

1. Current State Review and Assessment: This phase involves a thorough understanding and assessment of the current state through on-site walkthrough. It focuses on defining specific future design requirements.
2. Alternative Analysis and Qualification: Potential concepts are identified in this phase, and alternatives are evaluated. This leads to the prioritization of other options and recommendations.
3. Solution Development: This phase is dedicated to developing a conceptual design incorporating lean operations and material flow principles, along with equipment engineering, finalizing, configuring and designing the solution.
4. Business Case and Timeline: The final phase includes determining equipment, software and installation costs. The result is a comprehensive business case and implementation plan that is presented to the customer.

Tackling Material Flow for Fulfillment Operations Success

Understanding and optimizing material flow in distribution and fulfillment is crucial for operational efficiency and success. Partnering with experienced consultants like Bastian Solutions can bring invaluable insights and improvements, helping you align with your strategic objectives.

Author: Landon Mumbower