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Read further to have a better understanding on the need of efficient materials management enabling effective materials planning.
Several Indian SME's are trying to get their business processes streamlined to gain a competitive edge. For manufacturing industries, standardization of processes becomes crucial, as these industries are involved in the production of finished goods. To produce good quality product, the quality of raw materials plays an important role. Materials management involves planning, directing, controlling & co-ordination of all the activities concerned with material & inventory requirements, from the point of their inception to their introduction into manufacturing process. It covers different aspects, related to material costs, supply and utilization.
For the materials management function to be effective, the goal must be to maximize materials productivity. It can provide accurate forecasts, about the status of purchased materials. This is one of the most important phases which can help in efficient supervision/management for procurement; stock transfer, materials valuation, maintaining a register for purchase & purchase returns, logistics for materials transfer, warehouse management etc.
For proper planning of the materials management at his small manufacturing enterprise, let's see how Ajay helped streamline the operational efficiency of his enterprise. He started his business initially by supplying construction equipments like steel bars. Purchasing the materials from the manufacturers and selling it to the construction companies. Initially, he used to maintain a separate register for recording transactions in every department. As his reach expanded, maintaining the register became difficult and it started resulting in manual errors. As a result, the procurement, budget control, stock transfer, every process was showing incorrect analytics & providing misleading business insights. He then realized the need, of an efficient system to help provide accurate forecasts & reports, with respect to purchase and management of the materials.
According to a latest survey by Statista, enterprise software market in India is expected to increase to nearly 5.8 billion U.S. dollars of annual revenue, by 2018.
While there are plenty of options available in the market, an affordable, scalable, mobile and easy to use ERP, is an ideal option for SME's like Ajay's. So, are you wondering, which ERP solution did Ajay go for? He made a smart move and opted for EPPS ERP Solutions, which not only helped him to enhance his materials management process but also helped him, streamline the other associated verticals like production, quality, sales and distribution etc. With regular, quick real time updates, no down-time in productivity, EPPS helped Ajay to streamline his processes.
Let's see how, the EPPS ERP Materials Management offering, is helping Ajay-
- Reverse charge mechanism: As, few of Ajay's vendors were still in the process of registering for GST, managing the taxes for them was difficult. A feature in EPPS ERP, Reverse Charge Mechanism (RCM) facilitated in easy analytics of such cases. If the vendor is not GST registered then RCM is applicable, where the system auto calculates the taxes.
- Exempted/Nil rated category: If under any exceptional case, the GST needs to be exempted for any item, in Ajay's business that could be done easily with EPPS ERP. The latest feature titled, "Exemption Flag" helps manage the goods under the GST exempted/"Nil Rated" category. .
- Upload opening data: As Ajay's business grew, the inflow of customers and suppliers data also increased. His team could easily upload bulk data by using "Upload Opening Data" feature in EPPS ERP.
- Interest rates: In case there is an overdue amount for any vendors or customers, interest rate feature allows easy calculation of the interests, for the particular cases. This feature has been very helpful for Ajay's business, to record & manage the interest values for the vendors and customers, who have pending payment history.
- Inventory reconciliation: Now comparing the inventory details, is easy with EPPS ERP. Inventory reconciliation feature, helps to compare the warehouse stock data with the system stock data. Any discrepancy, can be easily adjusted manually or via system. Using the same, Ajay could now know about the precise stock count in his warehouse that helped him to in effective production planning.
- Production costing: Ajay was able to derive, the production monthly cost, based on runtime per hour/ units produced, using production costing feature. These analytics helped him in planning his production budget for future.
- Production cost report: The production cost report feature, allowed Ajay to mention the cost percent load, while creating BOM & production planning. This report gave him accurate insights for future production.
- Customized report: Purchase report details can be customized in EPPS ERP, which allows the inclusion of important fields, for any item. With this, Ajay can customize his purchase reports as per the demands, of any particular transaction.
- Label printing: Label printing can be done, while doing procurement/ production. Barcode with small data/larger data can be mentioned in the same. These barcodes can be scanned for proper mapping at every check point, during dispatch. Ajay uses this feature, to make sure that correct items are out for delivery, thus avoiding any errors.
- Store and process reusable items: It helps Ajay's company, to store items, which can be reused in future. Now, Ajay can make the optimum utilization of the materials with minimum wastage of his inventories.
- Global trade number: Ajay wanted to uniquely identify trade items, product, and services that are priced, ordered and invoiced at any point in the system. This could easily be done with the "Global Trade Number" feature. This feature helped identify, the unique transactions made in the past.
- Consumption tracking: Ajay can see department wise and employee wise requisition and issue transaction details of the materials. A simple report "Consumption Tracking Export to Excel" displays all the requisition and issue related to corresponding employee. He can now track the requisition and issue transactions, made by his staff.
- Import tax calculation (free items): This feature helps in calculating the taxes on the free items that were received from the vendors by Ajay's company. Now, he doesn't have to rely on the manual calculations. Ajay's company has been able to calculate, the import taxes, with perfection. This facility is available under the "Goods Receipt Note" transaction.
- Multiple storage location for price drop: As his business expanded, Ajay frequently had to check the price drop activity at multiple locations, in the single operation. This gave him a comparative analysis of the variation in material's cost. The "Purchase Rate Difference Document" transaction in EPPS ERP helps to derive the same.
- Transaction history: With the need to constantly view the transaction history of any desired item, Ajay can view the history from the past to the present transaction.
- Pending requisitions tracking: This feature, can help in tracking the pending requisitions and indent transactions, which helped, in eliminating the delay in response for the operations.
- Storage location to storage location transfer report: It helps to show the transfer of materials from one location to the other. Now by obtaining storage location to storage location (S2S) transfer report, Ajay can track the shifting of materials from one location to the other.
There are many other features in EPPS ERP, which like Ajay, can assist you in better materials management.
EPPS can help you, in your business growth and provide you a competitive edge. Switch to EPPS ERP for cost-effective, user-friendly, and scalable solutions that help you to operate even while on the move, with the mobile app functionality. At EPPS, we are continuously evolving & updating our solutions, to help address the needs of our customers.
Now, streamline your materials planning, by efficient materials management. A flexible and robust ERP solution like EPPS, can help you to achieve the same. Make the best business decisions, and boost your business productivity with an innovative ERP solution.
Click here for an exclusive demo of innovative and scalable EPPS ERP solutions.