# Material Flow Optimization as a Tool for Improving Logistics Processes in the Company
## 7 Conclusions  
Based on the analysis of the current state of material flow in the selected company, the objective was to propose measures aimed at optimizing the material flow and to evaluate their effectiveness. The analysis was conducted at the manufacturing company in Veseli nad Luznici in the Czech Republic. An integral part of material flow is the information flow, whose characteristics and functions were described. The layout provided an overview of the spatial arrangement and the functions of various sections and workplaces within the facility. The final part of the current state analysis covered storage and material handling, including inventory management methods such as FIFO and FEFO. The material flow analysis was divided into the quantification of handling costs, including personnel expenses, transportation costs, costs of handling equipment, and warehouse rental for the aging process. After summing these costs, the total expenses amounted to EUR 1,024,670.84. The second part of the material flow analysis focused on calculating the actual material flows. Based on these calculations, it was determined that the planned annual volume of finished goods production is 45,802 tons, while the cumulative material flow through various workplaces reached 4,433,875 tons per year. The relationships between individual workplaces were transferred into a checkerboard table, and key material flow indicators were calculated, including total material volume (tons per year), annual frequency of material movements, and yearly transport performance. The analysis revealed that products must travel a long distance before being packed into the final product, and this distance is further extended by the transport of FG from the manufacturing company to distribution warehouses. Identified deficiencies included the long transport distances and high costs associated with FG transport, which amounted to EUR 262,952.18 per year. Additionally, significant costs were associated with transporting finished goods to distribution centers in Ceske Budejovice and Tabor. Based on the identified deficiencies, two optimization scenarios for material flow were proposed Variant 1--Replacement of external transport for SF with in-house transport and Variant 2--Replacement of external transport for FG with in-house transport. Variant 1 focused on replacing external transport for SF with in-house transport. If the company adopts this variant, the investment costs amount to EUR 95,935.87, while the annual savings reach EUR 166,974.63. The ROI is 74%, and the investment is expected to pay off within 208 days. Variant 2 focuses on replacing external transport with FG with in-house transport. If the company chooses this option, the investment costs amount to EUR 201,710.96, with annual savings of EUR 17,548.60. The investment would take 11.5 years to pay off, making this variant unfeasible and leading to its rejection. Based on the conducted analysis and proposed solutions, it is evident that material flow optimization is a crucial tool for increasing efficiency, reducing costs, and enhancing business competitiveness. Furthermore, systematic monitoring and evaluation of material flow contribute not only to operational efficiency but also to economic sustainability. This study provides a framework and practical recommendations that can be valuable not only for academia but also for industry professionals. Conceptualization, [PERSON] and J.G. ; methodology, [PERSON] and J.C.; validation, [PERSON] and Z.B. ; formal analysis, [PERSON]; investigation, [PERSON] and J.C.; resources, [PERSON]; data curation, [PERSON] and J.C.; writing--original draft preparation, [PERSON] and J.C.; writing--review and editing, [PERSON] and [PERSON]; visualization, [PERSON]; supervision, [PERSON] and J.C.; project administration, [PERSON]; funding acquisition, [PERSON] and Z.B. All authors have read and agreed to the published version of the manuscript. This research received no external funding. Not applicable.