How our Material Management Service can help to grow your Business?
Materials management is part of business logistics and refers to overseeing the location and movement of physical items or products. There are three main elements associated with such management: spare parts, quality control, inventory and Asset management. Materials management is important in large manufacturing and distribution environments, such as warehouses, where there are multiple parts, locations, and significant money invested in these items.
The Covid-19 pandemic has perfectly illustrated the difficulties of supply chain management, materials management, logistics, and inventory management/inventory control in Cameroon, Africa and the world. Yet, no matter how complex material management may be, securing these materials is vital for businesses to continue delivering quality services to their customers.
Additionally, materials management and supply chain management are critical for current business operations and supporting a future scale-up.
What exactly is materials management? Fundamentally, materials management is concerned with procuring raw materials, intermediate components, and ensuring that a finished product reaches the end-users.
Due to the scope of materials management, it encompasses other activities such as supply chain management, logistics, inventory control, and even securing spare parts for their business! We will discuss the scope of material management in more detail below!
For a company to see significant cost savings, an improvement in their planning process, and the services they offer to their customers, they should consult a material management service company.
What are our Material Management Services?
Simple put, material management services help companies with devising and updating their material management strategies. Should a company consult with a material management service, the first thing they can expect is a complete and holistic breakdown of their business operations.
Therefore, should your company opt to consult with material management services, you can be sure that your entire material management strategy will be revamped. This will result in your company increasing sales, seeing significant cost savings, reduced waste, and happier customers eager to use your services again!
Objectives of Material Management
Material management focuses on the entire product life cycle.
This means that material management begins when raw materials needed for production are purchased until customers receive their final product. Any processes between these two points falls under the financial department functional responsibility and the Production department direct accountability
As materials management is concerned with purchasing and the procurement of materials, material managers must ensure that their supply chain is secure to ensure the constant availability of materials. If the supply chain linking businesses and suppliers is not operational, business operations will struggle to continue.
Materials management is also concerned with inventory control and inventory management. Once the purchasing of raw material is complete, material management team move to the next stage of planning: inspecting the material quality and preparing the inventory for distribution and storage.
Material distribution and storage are essential processes closely related to the amount of stock ordered. Essentially, the amount of stock distributed and held in storage must reflect the organization’s current material or production requirements.
Should businesses order too much inventory, they will pay unnecessary storage costs. Additionally, ordering excess stock will harm a company’s bottom line. For this reason, material management must use data from previous sales to support the company when they purchase new materials.
Finally, materials management must also ensure that customers and clients are satisfied with your services. Should clients receive quality products quickly, they will be eager to use your services in the future!
Types of Material Management Services
Whether you are consulting with material management services or devising your strategy for inventory management, here are some benefits of having a robust system to manage materials. Of course, your company must support this strategy with Enterprise Resource Planning (ERP) software solutions for maximum benefit.
- Evaluation of Materials
With the assistance of software, purchasing decisions become much more straightforward! Material management software can calculate the overall costs of acquiring the material for sale. These costs include direct material costs, freight costs, and import duties.
With this data at your disposal, your business can make prudent and better-purchasing decisions!
- Efficient Bin Management
Among the most important reasons you need software to support business operations is efficiently managing your inventory bins. Businesses can store incoming inventory in the preferred bins in the rack system. Then, when the order fulfilment process begins, inventory and stock can be easily located from the bins. Efficiently managing your bin is important for two other reasons.
- First, for inventory control and management, an organized inventory bin will reduce storage costs as businesses know the amount of current stock.
- Secondly, managing your inventory bin efficiently results in a faster order-execution process. This benefits your customers and clients immensely as they will receive their products faster. As a result, customers and clients have an excellent reason to use your services again.
- Lot/Serial No. Traceability
ERP software can help track inventory, spare parts, and even machinery needed for production. Each unit will have a lot or serial number, meaning businesses can trace these units as they move from purchase to the final location.
Additionally, a secure record of each transaction can be saved and retrieved for sales and returns. This transaction history is also vital for locating the source of problems with inventory or stock.
- Product Life Cycle Management
As mentioned earlier, purchasing new stock is vital for business operations. However, purchasing new stock without analyzing whether the products will sell can negatively affect your bottom line. Essentially, material managers should examine which products are in demand and which customers based on seasons no longer desire. ERP software can assist with demand forecasting using sales records from previous seasons.
- Inventory Management
Inventory management is closely related to product life cycle management, which focuses on the procurement and replenishment of new stock. With ERP software, you can set differentiated re-order points for individual products. ERP software also provides a range of replenishment planning strategies – such as economic order quantity – that further streamline production and procurement processes.
- Effortless Scheduling
With the aid of ERP software, planning the procurement of materials and subsequent production schedules has never been easier! In addition, as the entire ERP system is integrated, and because all accountable employees have access based on job responsibility, controlling the production schedule and updating employees of significant changes is a simple process!
- Multi-Location Inventory
As your business or company expands, so will your office and warehouse locations. When office, manufacturing, and warehousing units are in different locations or sites, coordination between employees can become a bit tricky. With the aid of ERP software, however, these coordination problems melt away.
ERP enables you to track progress in manufacturing units from your office; additionally, as inventory is being moved between different locations, inventory levels and details will be updated in real-time to reflect these changes.
Why Do You Need a Material Management Service For Your Business?
Earlier, we discussed why consulting with material management services is vital for your company. With their assistance, not only can they help interpret relevant data, but they completely revolutionize how you conduct material management.
One way that your company’s materials management system can be revolutionized with the help of material management services is by introducing ERP software.
Wrapping Up!
One consulting group that your company should consider speaking to is TRASEF Trucking and MM.
We have a rich history in the oil & gas, logistics, and manufacturing industries. We have assisted clients with introducing ERP software solutions, from which they have benefitted immensely.
If you want these results and more for your company, contact TRASEF Trucking and MM today!
Materials Management in Project Planning-Procurement
Different varieties of quality materials have to be procured in adequate quantities at the right price, stored safely in a proper place, used judiciously during the execution of the project and the waste if any have to be disposed efficiently.
Here are some right parameters about the material required for the project:
Right source, price, legal contract and lead time
Right technology, quality and quantity;
Right engineering parameters
Right ethical standard, handling methods and packaging
Right transportation, insurance and place of delivery
Project procurement Management is a process of acquiring goods and services from a firm external to the performing organization.