Materials Handling

Materials handling refers to managing the physical movement of materials into, through, and out of the firm. The primary objective of materials management is to move materials to the required location in a timely and cost-effective way without affecting the primary objective of the other two materials management functions. Some factors that influence the materials handling function are - the type of plant layout, the type of production process used, the nature of the materials and the material handling equipment used. The responsibilities of a manager who looks after the materials handling function include the effective utilization of the firm's material handling equipment and convenience facilities like conveyors, and the manpower that maintain these types of equipment and facilities.

Material handling equipment is of two types - fixed path equipment and variable path equipment. Fixed path equipment moves in a fixed path. For example, conveyors, monorail devices, and pulley-drive equipment come under the category of fixed path equipment. Overhead cranes also belong to this category with a slight provision for variation. Though its movement is restricted, it can move materials in any manner within a restricted area by virtue of its design. Variable path equipment does not have any restriction in the direction of movement of materials, though the size of the equipment affects its movement. Trucks, forklifts, mobile cranes and industrial tractors are examples of variable-path materials-handling equipment.

The selection of the type of equipment requires careful consideration of factors like investment, labor, anticipated service hours per hour, and loading and unloading characteristics. Other considerations include the source of power, conditions under which the equipment operates and other technical aspects.

A materials handling manager selects the equipment required carefully, and uses them for the physical transfer of materials from the receiving department of the firm to its warehouses.

The departments that are included in the materials handling function are:

• Purchasing department

• Receiving department

• Raw materials inventory department

• Production department

• Finished goods inventory department

• Shipping

• Distribution centers, and

• Warehouses

The materials management function can also be referred to as a combination of three sub-functions; traffic, physical distribution and logistics. The sub-function 'traffic' deals with arranging the most economic transportation method for both the incoming and outgoing materials. The sub-function 'physical distribution' is associated with the movement of the finished products and the other materials. Finally, the sub-function 'logistics' deals with obtaining, producing and distributing materials and products at/to the desired place, at the right time.               

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