In today’s dynamic market, industries are constantly looking for ways, to establish a competitive edge over competitors. For long-term profitable sustainability, they are showing more inclination towards production excellence. Quality of goods purchased, plays a pivotal role, to materialize the same.
To streamline the process of acquiring raw materials, there arises a need for managing a huge volume of business critical data, which can help in providing essential inputs, for better business insights. However, managing such bulk data can be a cumbersome process, where a small error can cost a fortune, for the company. The need of the hour, is an efficient system that can help to provide the best analytics & reports, with respect to management of the materials purchased.
Materials management is the 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 all aspects of material costs, supply and utilization. The functional areas involved in material management usually include purchasing, production control, shipping, receiving & stores.
To get the most value out of our resources, we must design production processes that make products most efficiently. Once the processes exist, we need to manage their operation so they produce goods most economically. Managing the operation means planning for & controlling the resources used in the process: labor, capital, & material. Even though all are important, but the major way in which management plans and controls is through the flow of materials. The flow of materials controls the performance of the process. If the right materials, in the right quantities are not available at the right time, the process cannot produce what it should. Labor & machinery will be poorly utilized. The profitability, & even the existence, of the company will be threatened.
Here comes, the importance of a robust ERP system that has the ability to deliver an integrated suite of business applications. ERP tools share a common process and data model, covering broad & deep operational end-to-end processes. ERP applications automate & support a range of administrative & operational business processes across multiple industries. It is the backbone for operational efficiency in any organisation.
For the materials function to be effective, the objective must be to maximize materials productivity. An integrated approach to materials management i.e. materials planning & control must look in to the problem areas, in a co- coordinated manner in order to maximize the effectiveness of materials management.
In a simple way, it can provide best forecasts, about the status of purchased materials. It is one of the most important phases of manufacturing supply-chain, 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.
An integrated materials management can result in better accountability for materials & material concerned costs. Improved co-ordination within the materials functions and also other functional areas of business. This results in better performance & effectiveness.
Let’s take a quick look, at some areas where an ERP can help with-
- Procurement management: It is a method by which the items purchased from external suppliers are managed. In other words, it is an effective way to handle procurement of the goods & services.
- Budget and control for procurement: This offers visibility of budgets while procuring materials. It also ensures, better forecasting of estimated procurements & its comparisons with allocated budgets. Moreover, this facilitates variance report comparisons of allocated budgets & the actual procurement.
- Internal/warehouse stock transfer: This method provides inputs for planning & managing inter-warehouse movements of the goods, with receipts/issues.
- Multiple units of measurements: Manufacturing & distribution organizations can define a product-specific unit of measure conversions. On a product-by-product basis, default units of measure can be defined for various types of transactions. This allows manufacturers & distributors to sell, purchase, manufacture, receive, store, & ship in any unit of measure required.
- Supplier management: This offers a central repository, to manage all the supplier related information. It also manages multiple geographical existences for a supplier, with ease.
- Purchase register: It displays the information on the periodic purchases of an organization. It also provides inventory information on the landed costs & various statutory costs involved in procurement.
- Purchase returns: Purchase return document tracks the goods returned with relevant taxations.
- Price Drop/Rate Difference: Manage the rate differences/ variances of the procurement rate & the production/sales rates.
- Barcode/Label Printing: Print barcode labels by item name, purchase order, goods receipt, issue & finished goods reporting transactions. Barcode printing on SKU (Stock Keeping Unit) allows you to track & manage the inventory.
- Material in transit: Enables users to track the movement of goods from source of dispatch to the destination.
EPPS ERP Solutions offers features that can help you gain a competitive edge. It is equipped to handle the different aspects, related to material management on the go with an easy to use mobile ERP solution.
Make best decisions, with an easily scalable, flexible & cutting-edge ERP Solution from EPPS Infotech Pvt. Ltd. Now, enhance your business productivity while strategizing & monitoring available inventories in your warehouse. Click here to know more.