1. The Supply Chain Management Guide
5. Material Handling

2. 5.1. Key Concepts 5.1.1. Material Handling (1)
moving of goods between incoming transport, storage, processes and outgoing transport
the set of activities that move production inputs and other goods within plants, warehouses and transportation terminals.

3. 5.1. Key Concepts 5.1.1. Material Handling (2)
Providing the right amount of material:
in the right condition
at the right place
at the right time
in the right position
in the right sequence
for the right cost
by using the right methods.

4. 5.2. Principal Issues 5.2.1. Materials Handling Manager (1)
The task for the materials handling manager is to find the methods, the routes, the layouts and the right components to minimize handling.

5. 5.2. Principal Issues 5.2.1. Materials Handling Manager (2)
Six main responsibilities of the materials handling manager:
packaging - unitizing
internal transport
storage
retrieval
identification
communication.

6. 5.2. Principal Issues 5.2.2. Material Handling System Design
The design of a material handling system depends upon the the type and the characteristics of the materials to be handled.

7. 5.2. Principal Issues 5.2.3. Material Handling System Components (1)
Material handling equipment:
unitizing equipment
material transport equipment
storage and retrieval equipment
automatic identification and communication equipment.

8. 5.2. Principal Issues 5.2.3. Material Handling System Components (2)
Unitizing equipment:
containers, such as cartons, boxes, and bags
carriers or support, such as pallets, skids, and plywood
stretch wrap
shrink wrap.

9. 5.2. Principal Issues 5.2.3. Material Handling System Components (3)
Material transport equipment:
conveyors (belts and rollers)
industrial vehicles, such as pallet trucks, lift trucks, and automated guided vehicles (AGV)
monorails
hoists
cranes.

10. 5.2. Principal Issues 5.2.3. Material Handling System Components (4)
Storage and retrieval equipment:
unit load storage equipment
unit load retrieval equipment
small load storage and retrieval equipment.

11. 5.2. Principal Issues 5.2.3. Material Handling System Components (5)
Automatic identification and communication equipment:
bar coding
radio frequency tag
magnetic stripe
smart cards
voice headsets
machine vision.

12. 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (1)
5. Material
Handling
5.2. Principal Issues Cost-effective Means of Transport (1)
Key factors to consider in selecting means of transport:
physical characteristics of loads
the number of loads to be moved
the distance to be moved
the required speed of movement.

13. 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (2)
5. Material
Handling
5.2. Principal Issues Cost-effective Means of Transport (2)
Movement distance (m)
Units
moved/
hour
Conveyors
Motorized trolleys
Forklift trucks
Manual trolley
Manual

14. 5.2. Principal Issues 5.2.4. Cost-effective Means of Transport (3)
5. Material
Handling
5.2. Principal Issues Cost-effective Means of Transport (3)
Other factors which influence the means of transport:
cost of building/dismantling loads
packaging costs
space requirements
interface with other storage, transport and handling systems
housekeeping issues.

15. 5.2. Principal Issues 5.2.5. Warehousing (1)
5. Material
Handling
5.2. Principal Issues Warehousing (1)
The warehouse must be:
located in the right place
the right size
organized
to allow:
efficient delivery and placing
cost-effective use of its space
adequate access to stored materials
security from theft and weather
flexibility to deal with the various items.

16. 5.2. Principal Issues 5.2.5. Warehousing (2)
5. Material
Handling
5.2. Principal Issues Warehousing (2)
The mission (or goal) of a warehouse is set by demand. The warehouse location is a means to achieving the mission.
Mission
Location
Demand
Balance and buffer
Near the manufacturer
Monthly/quarterly replenishments
of stocks
Accumulate and consolidate
Central to production locations
Weekly/monthly orders
Rapid response
Close to customer
Daily

17. 5.2. Principal Issues 5.2.5. Warehousing (3)
5. Material
Handling
5.2. Principal Issues Warehousing (3)
Within the warehouse, stock must be:
put into known places and
in known order
so that it can be:
retrieved quickly and in the right quantity
rotated properly (ex. first-in, first-out).

18. 5.2. Principal Issues 5.2.5. Warehousing (4)
5. Material
Handling
5.2. Principal Issues Warehousing (4)
Warehousing activities:
receiving goods
identifying goods
sorting goods
dispatching goods to storage
holding goods
picking goods
preparing shipments
dispatching shipments.

19. Suggestions for materials handling:
use identification systems, such as bar coding to handle the right material:
give a part identification number
give a location identification number
handle similar materials, packaging and size of loads at the same time
implement improvements in material handling systems which will increase the efficiency of the overall system.