What is Manufacturing Logistics and How Can Optimize it.

Traditionell, Manufacturing logistics has been a predictable, linear sector. Manufacturers have been the link between suppliers and distributors of raw materials for years. However, the current financial environment has stopped this trend and forced companies to adopt personalized manufacturing processes using a variety of materials.

These are some of the business trends that you should be aware of Just-in-Time Manufacturing Market.

globalization and customer demands for fast deliveries are drivingThe transformation of manufacturing logistics. This post will discuss the key characteristics of the new manufacturing logistics environment and the best strategies for making the most of them.

What is manufacturing logistics?

Logistics for manufacturing (or industrial)It includes the optimization and management of storage processes as well as the movement or materials in installations that are connected to a production centre. It encompasses all logistics processes, from purchasing raw materials to creating the product.

Snapshot of the production process

Let’s take a look at two key points to better understand the manufacturing logistics process. Most common production systems They play a vital role in the lives of others:

Make to Stock, or the Push System

When there is no other option, this happens.There is a lot of demand for the product, and standard features are not available that allow you to personalize it.. Production centers make the products in advance. These goods are directly Ship to the warehouse. The sales department sells only the stock in the warehouse (as opposed the pull system which we’ll discuss below).

The pull system or make to order

The pull system works in the opposite direction: Once the orders are received from customers, the production center produces the goods. These items are assigned a delivery date. This allows the company to keep an inventory of semi finished goods even though they are not stocked. This reduces delivery times after the customer has placed their order.

Although some sectors may prefer one manufacturing system to another, the truth of the matter is that there are many.Both can be used. In the automotive industry, for example, standard cars (push system) are produced, while other vehicles are available on demand with custom features (pullsystem).

Relationship between logistics and production in the industry

The task of manufacturing logistics is to reduce production lead times. This is the time between the creation of a work order and the final product.

Many industrial companies are actually turning to automation to reduce manufacturing time. Local suppliers of components and materials. This trend has partly reversed the trend of offshoring companies. Industry Week Reports indicate that the number of production companies relocating to the US grew by 38% in 2018.

Another important factor in industrial logistic is stock management this is essential for faster production. The warehouse must be capable of managing the two types demand that affect manufacturing logistics. The first isend-customer demand this can be based on sales forecasts, or orders placed at the production center (this demand does not depend on the manufacturing process). Second, you would request the raw materials for a finished product from the warehouse. This demand is dependent on the production process.

The manufacturing company can calculate the exact amount of raw materials that each product requires using the concept called factory demand. The BOM (bill-of-materials) is an important concept. MRP (material requirement planning) systems. A BOM lists all of the components needed to make a product. The MRP system, on the other hand, is the IT software that determines the materials and quantities needed to produce the item.

Coordination of production and logistics areas requires, therefore, control of these two types demand (dependent and independent from production process).Organization of industrial warehouses Based on each type. It is possible to store each type in production-linked storage facilities. What happens to the end product? Parts or raw materials they supply the manufacturing process, or provideAfter-sales service components and spare parts.

Maximizing industrial logistics warehouses

Applying for a Lean logistics Lean manufacturing philosophy is the basis of efficient manufacturing logistics.Reduce operations that do not add value to the productThis is a. Within this category are internal transportation, wait times or lines between processes, as well as work in progress stock.

The ultimate goal is to provide. Improved service and lower costs. How can you accomplish this?

Automated manufacturing processes

Stock receiving installations must be able to handle large quantities of goods (usually pallets) and be movable. The Automation of material transportation when it comes toHeavy loads and repetitive tasksIt is. It maximizes space and increases warehouse productivity by dramatically reducing the number of goods handling incidents.

There are, however, Installations for spare parts and components Manufacturing logistics is a branch of manufacturing logistics that focuses on the preparation and delivery of orders to the production lines.

These warehouses often have very diverse inventories and small unit loads. One of the most popular strategies is to zoning the warehouse in accordance with the ABC analysis of inventory classification Automatingmaterial movements with roller conveyors to connect the various areas.

Software to manage industrial logistics processes

Priority logistics for manufacturing add functionalities specially designed to enhance production to the core features of warehouse management systems. These programs work in some ways like MRP systems and control and coordinate customer demand and the manufacturing process.

Warehouse management systems have proven to be an essential tool for providing an overall view of inventory linked to production tasks. Priority logistics specializing in manufacturing facilitates:

• Classification by stock type these can be raw materials, stock in progress, semi-finished goods or finished products in manufacturing logistics.
• Real-time stock visualization software allows you to see the exact condition and amount of your goods at any time.
• Production according to the “just-in-time” methodThis method is impossible without automated warehouse management.

Integration is key in manufacturing logistics

The industry is now facing a dynamic and diverse manufacturing landscape that allows it to be more flexible.

To provide customer service that is efficient and so all of the manufacturing logistics gears must fit perfectly together. This paradigm demonstrates that automation and the use of Priority logistics for production are key strategies to optimize  industrial logistics. Learn more how to simplify manufacturing logistics in your warehouse? Don’t be afraid to contact us Get in touch. Our experts will review your warehouse operations and make suggestions for improvements.