Goods handling is a function of intralogistics and takes place between the external flow of goods and the internal flow of materials. The load of a means of transport is transferred to an internal means of transport or vice versa, i.e. from the internal means of transport to a means of transport. Handling logistics therefore takes place between the interfaces to the procurement market and those to the sales market.

The ratio between the consumption of units per unit of time and the average inventory level is indicated by the inventory turnover rate. It is calculated by dividing the inventory withdrawals by the average inventory level. This shows how often a warehouse is filled or emptied in a given period of time. If the value is low, this indicates that the material is being stored for longer or that high safety stocks are in place. A low value has a negative impact on capital commitment.

Example of turnover logistics

a) 50 stock removals with an average stock level of 500? Stock turnover rate = 0.1

b) 100 stock removals with an average inventory of 500? Inventory turnover = 0.2

The downside is that the handling of inventory may cause delays in the material flow chain. However, this disadvantage can be counteracted with good material flow planning. Automated handling equipment also helps to increase the handling speed.

The aim of handling logistics

The aim of handling logistics is generally to plan, control, monitor, and optimize the material flow with the associated information flow and administrative and planning functions, such as increasing handling performance. The downtimes of the means of transport should be reduced, costs minimized and thus the entire performance process improved.

Well-planned loading and unloading strategies, shipping strategies or even buffer strategies can help to achieve these goals, among other things.

For more information, please visit Buffer storage.

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