Many companies consider logistics as the transfer of goods from production to consumption. While supply chains deal with the flow of goods and services, there are multifaceted concepts that determine the network. For instance, intralogistics is a branch of internal logistics managing the outflow and inflow of materials within a company.
It’s the precursor of supply chains, monitoring the internal processes before the transfer of goods outside. In this blog, we’ll delve into the complex structure of the intralogistics industry.
Let’s get started!
Intralogistics Network – The Complete Overview
Most supply chain pressures begin at a tipping point. As a result, companies are examining their internal mechanisms to find solutions. Businesses are looking to maximise operational efficiency, from arrival at the dock door to when the product is picked and packed.
Internal logistics manages the flow of information and materials inside a company. It specifically handles warehouse and fulfilment operations, including fleet management, engineering, packaging and product designs.
Let’s move to the types of intralogistics processes.
Types of Internal Logistic Systems
The manufacturing plant is a vital cog in the logistics wheel where workers streamline multiple operations under a single roof. Here’s a sneak peek into the main categories.
1. Internal Goods Management
This refers to the movement and storage of products across multiple company facilities. The primary objective is the receiving, storage, and inspection of goods. Key activities include:
- Inspection – Monitoring the quality of goods
- Documentation – Verifying paperwork like invoices, bills, receipts, and registers.
- Labeling – Tagging labels for seamless identification and product retrieval.
The material flow occurs within a single warehouse or from one plant to another.
2. Storage and Inventory Management
Intralogistics also covers automation and supply software systems. Whether using an advanced inventory 4.0 system or tracking equipment inventory, the internal warehousing team fulfils all operations in a single flow. This involves:
- Putaway – Moving goods to their designated storage locations. This can be mechanised or automated solutions.
- Stock Calculation – Tracking stock levels with fast WMS(warehouse management systems) throughout the supply chain.
- Space Utilisation – Effectively utilising warehouse space to track and maximise storage capacity to prevent over and underutilisation of resources.
3. Order Picking
This is the process of choosing items to fulfil customer orders. The broad methods include:
- Case picking – Lifting full cases or boxes.
- Piece picking – Picking individual items
- Pallet picking – Picking goods in mechanised pallet racks.
- Automation – Intralogistics automation includes using robots and Automated Guided Vehicles to manage inventory.
4. Sorting, Retrieving and Consolidating
Inventory optimisation is a complex industry fraught with manual/technical errors at each step. To minimise order inaccuracy, sorting ensures all items are grouped based on size, volume, weight, colour, and order of urgency. The core activities include:
- Manual Sorting – Workers assemble to sort items manually in designated locations.
- Automated Sorting – Conveyor belts and robotic arms work with human assistance to minimise risks and enhance accuracy.
5. Intralogistics Packaging
Smart packaging solutions are deployed to fast-track order fulfilment. The core activities include:
- Labeling – Applying industrial labels to display necessary information. Labelling is also an effective anti-counterfeit solution.
- Packaging – Choosing proper packaging materials.
- Verification – Checking order accuracy before sealing the package.
Next, let’s focus on the advantages of internal logistics operations.
Intralogistics – Benefits
The management of material flow within a facility works best to streamline warehouse functions, creating a balance between various departments. Here are the top benefits.
1) Enhanced Operational Efficiency
Intralogistics systems streamline the internal movement of goods, ensuring that materials flow seamlessly from receiving to storage, and from order picking to shipping. By automating processes such as sorting, picking, and packing, companies can significantly reduce the time and effort required to handle goods.
Automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) can transport items quickly and accurately, reducing human error and increasing throughput. This leads to faster order fulfilment and improved customer satisfaction.
2) Cost Reduction
Effective intralogistics systems help reduce operational costs in several ways. Automation reduces the need for manual labour, lowering labour costs and minimising the risk of workplace injuries. Optimised storage solutions and inventory management reduce the amount of space required to store goods, cutting down on real estate costs.
Additionally, efficient material handling systems minimise the risk of product damage, reducing waste and the associated costs. By improving inventory accuracy, companies can also reduce the costs associated with overstocking and stockouts.
3) Improved Inventory Management
Intralogistics systems provide real-time visibility into inventory levels and locations. This enhanced visibility enables better demand forecasting and inventory planning, ensuring that the right products are available at the right time.
Advanced warehouse management systems (WMS) can track inventory movements, monitor stock levels, and generate accurate reports, facilitating more informed decision-making. Improved inventory management helps prevent stockouts, reduces excess inventory, and enhances overall supply chain efficiency.
4) Scalability and Flexibility
Modern intralogistics solutions are designed to be scalable and flexible, allowing businesses to adapt to changing demands and market conditions. Automated systems can be easily expanded or reconfigured to accommodate new products, increased volumes, or changes in warehouse layout.
This scalability ensures that businesses can grow without being constrained by their internal logistics capabilities. Flexible intralogistics systems can also quickly adapt to seasonal fluctuations and other variations in demand, maintaining high levels of efficiency and responsiveness.
5) Enhanced Data Analytics
Intralogistics systems generate a wealth of data that can be analysed to gain valuable insights into operational performance. By leveraging advanced analytics tools, companies can identify trends, uncover inefficiencies, and optimise their processes.
Data-driven insights can lead to continuous improvement in areas such as order accuracy, picking speed, and resource utilisation. Predictive analytics can also help anticipate future demands and adjust inventory levels accordingly, further enhancing efficiency and customer satisfaction.
6) Sustainable Operations
Implementing efficient intralogistics systems contributes to more sustainable operations. Automation and optimised material handling reduce energy consumption and lower carbon emissions. Additionally, improved inventory management helps minimise waste by ensuring that products are used before they become obsolete.
Sustainable intralogistics practices not only reduce environmental impact but also enhance a company’s reputation and appeal to environmentally conscious consumers.
Finally, let’s move to the FAQs section of the blog.
FAQs – Intralogistics
What are intralogistics robotics?
They are fully autonomous or semi-autonomous robots automating repetitive tasks within warehouses, distribution centres, and manufacturing units.
What are the key components of internal logistics?
The critical components are already mentioned in the blog. It includes storage, material handling, inventory management, order picking, packaging, and labelling, loading and unloading systems.
What is IMS in supply chain?
An inventory management system(IMS) manages the quantity and stock location across multiple warehouses and distribution centres. Additional functionalities and software integration are added for real-time monitoring and inventory updates.
Conclusion
Intralogistics is the starting point of a streamlined supply chain where thousands of products move efficiently. From storage to packaging and material handling, every activity occurs in a precise manner creating better order fulfillment rates. While internal logistics is just a small piece of the puzzle, a supply chain is a complicated maze so you require the help of an expert to manage the logistics operations. Fuel your inventory system with Qodenext, a reliable logistics partner today.
