Material Management

Material Management is an important process in Supply Chain Management which is essential to transform inputs into outputs. It is the process of planning, organizing, staffing, directing and controlling the flow of materials from their initial purchase to destination. For a manufacturing business to function smoothly, it requires an uninterrupted flow of materials, or the physical items such as raw materials, components, parts, etc. required for producing goods. In today’s business scenario, where demand often exceeds supply, the significance of materials to efficient manufacturing operations is increasing more than ever. Every business needs raw materials in abundance, and thus looks to purchase, and store enough stocks of materials for immediate as well as long-term requirements.

Importance of Material Management

Manufacturing businesses face a lot of challenges pertaining to the effective management of materials. The biggest of them all is the prospect of not being able to honor the agreement with the customer to supply the product at the agreed time. A failure in doing so can have disastrous effects on the business, as the disgruntled client may switch to a new supplier entirely or ask for heavy discounts in the future.

Another major concern is the wastage of money invested in excessive or unused material stock as well as incurred on the warehouse rent for the same. These are nothing but dead funds, and can be recovered only when the final product is being sold, something which is uncertain. The repercussions of such a situation can be felt when there is a sudden demand/trend change, and stock no longer holds any value.

How POSORBIS Material Management will help to take correct decision in MRP

• Multiple planning cycles and netting options

• Multiple item netting policies control the timing and quantities of supplies.

• Planned orders

• Forecast Orders

• Overstock analysis