Material Handling Cost Reduction in Logistics Management

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The most important part with respect to material handling is arranging the material at the right time when there is a need for it. Through several methods, the cost associated with material handling can be reduced which is explained below. Through the control of material handling the productivity and profit can be increased for the company.

The most appropriate way to reduce the material handling cost is by reducing the number of times an employee is required to touch the material. It is ultimately the production which adds value to the product and not the material handling. The time spent to move sort and prepare or store materials is actually a waste as production doesn’t occur during such times. Bulk handling of the materials to meet the requirement at the production shop floor is the key element to reduce material handling cost.

While moving material from one part to another part on the shop floor the moving path should be as short as possible. The actual time spent on moving material from one point to another on the shop floor is equal to the time that is not spent on production. A travelling of material should be in straight line during the material handling phase.

Another cost consuming factor is the damage that is occurring to the product during material handling. Breakage of products need to be reduced to a minimum and external factors such as shelf life and environmental conditions need to be monitored to reduce the damage.

The storage space that is utilized for storing materials should be effectively utilized. The packing and storing of material in the inventory should be done properly so that there should not be any problems with regards to taking out when required.

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