Material Flow Planning
Panta Rhei
The ancient Greeks may already have suspected it: minimizing material flow effort is still the most important optimization goal in factory planning today. However, thanks to the “robotization” of intralogistics, transport distances and labor costs will play a much smaller role in the future.
With his maxim “panta rhei” (“everything flows”), the philosopher Heraclitus created a brilliant metaphor for the process-oriented nature of the world. Nothing describes our society and economy, nature and medicine, science and technology better: “Everything moves, and nothing remains.”
► Circulatory system of a lean operation: goals of material flow planning
- Anyone designing a modern, lean industrial operation today may not look to the ancient Greeks, but often follows the principles of lean management or value stream design. Idle material or waiting resources create waste and unnecessary loss of time.
- Similar to the human circulatory system, which pumps the entire blood volume (about 5–6 liters) through the body every 60 seconds, material flow within a company should never come to a standstill. Material flow is a key indicator of a company’s health and fitness.
- The goal of material flow planning is the profitability of internal material movements. Key objectives range from optimal use of space and reduced order throughput and delivery times to low process costs and reduced capital commitment.
► Systematic material movement: definition of material flow
Material flow refers to the systematic movement of materials within a facility. Specific material flows occur as the transport of goods and containers
- within production areas or workshops (production logistics)
- within warehouses and logistics centers (warehouse logistics)
- across the factory site (site or plant logistics).
In contrast, cross-site goods movements are assigned to transport logistics or traffic logistics.
The world of material flow planning is as individual as choosing a medical diagnostic or treatment method. In Germany, VDI guidelines 2498 and 2689 have provided a standardized framework for terminology and methodology in material flow planning since the late 1970s.
► Planning in 5 steps. Our services:
Material flow planning, which consists of five stages, begins at LogistikPlan with a material flow analysis. This serves to determine the quantitative and qualitative requirements for the design and dimensioning of intralogistics.
■ Step 1 – Material flow analysis (data and process analysis):
- Recording all required material movements with quantities or frequencies per relation and time (e.g. schematically as a Sankey material flow diagram or as a data-based material flow matrix)
- Process analysis including examination and documentation of logistics workflows for selected order types, main logistics processes, secondary processes and special processes
- Analysis of accompanying information flows and organizational conditions
■ Step 2 – Functional definition (functional concept):
- Definition of logistics subsystems with regard to structure and basic logistics functions (e.g. conveying, storage, buffering, picking)
- Selection of suitable flow principles and interlinking methods between subsystems
- Specifications for intralogistics control and logistics organization (e.g. pull production, Kanban supply)
- Specifications for interfaces with upstream and downstream production and logistics functions (e.g. transfer buffers, forklift control, container management, returns management, identification and labeling concepts)
■ Step 3 – Dimensioning (equipment concept):
- Selection of suitable logistics equipment within each sub-function (e.g. industrial trucks, conveyors, load handling devices, storage systems)
- Evaluation of material flow automation options (e.g. AGVs)
- Evaluation of transport task bundling options (e.g. tugger trains) and derivation of requirements for transport carts, low-lift vehicles, lifting devices, and storage aids
- Dimensioning of logistics equipment in terms of type, quantity and capacity (e.g. pallets, wire mesh containers, small load carriers)
- Dimensioning of logistics areas (transport routes, buffer and staging areas)
- Dimensioning of personnel requirements (e.g. transport, handling, packaging, booking)
■ Step 4 – Structuring (layout and routing concept):
- Spatial and temporal linking of production and logistics functions
- Verification of system performance (if required, using simulation)
- Fine-tuning of dimensioning results
■ Step 5 – Design (detailed layout planning):
- Integration of material flow equipment into the layout
- Identification and definition of necessary adaptations to standard equipment
- Functional and ergonomic design of logistics workstations (e.g. picking zones, goods receipt, goods issue)
► From material to flow: planning results
The result of material flow planning is the complete design of intralogistics – from process organization and equipment to the material flow layout. Planning is closely coordinated with the (often parallel) results of our layout planning and warehouse planning.
- Material flow diagram (process schematic) and material flow matrix (actual and target data)
- Equipment concept for conveyors, containers and buffers
- Material flow layout showing transport routes and routing
- Detailed layout showing all logistics equipment, workstations and functional areas
- Control concept including requirements for logistics IT systems and process interfaces


