Sofgen Computer Consultants (P) Ltd. is an innovative ERP/IT Solutions and Services Organization working since 1989.
A Material Management module in an Enterprise Resource Planning (ERP) system is designed to efficiently manage all aspects of an organization’s materials, from procurement to storage to distribution.ERP’s Material Management module empowers clients with enhanced visibility, streamlined processes, efficient resource utilization, and data-driven insights, ultimately leading to improved operational efficiency, cost savings, and better decision-making.
There are numerous sub-modules that fall into material management module:
- Material in-transit entry
- Material gate entry
- Material receipt entry
- Material discrepancy note
- Item stock transfer
- Material request
- Material issue
- Material issue return
- Purchase
- Purchase goods debit/ credit note
- Purchase services debit/ credit note
- Gate inward material register/ material receipt register/ material rejection regist
- Stock ledger/ stock trial/ stock valuation (FIFO)
Material requirement is determined by the sales and purchase forecast, and thus it is important to have an accurate estimate of purchase and sales forecast, so that you as a client can quantify how much material is required and how that material will be used. Sofgen, with the incorporation of ERP, allows you to have a proper functioning of material management, which in turn allows your business to avoid unnecessary disruptions in the process.
Sofgen ensures a smooth flow and reliable management of the required materials by predicting the individual requirement of parts, by forecasting the required quantity of inventories, estimating the overall budget for materials, scheduling and prioritizing the orders, and monitoring sales and production performance.
Besides, you can get to know minimum stock levels, inventory valuation, negative stock restriction, auto stock adjustment, multiple stores, rejected or dead inventory, barcode tracking, and physical stock reconciliation. All of these features ensure the implementation of 7 Rs of material management which are as follows:
Right product
Sofgen, with its ERP, ensures that you as a business are purchasing high-quality material from your suppliers, and suppliers that have previously sent low-quality materials will be eliminated from the potential suppliers list.
In the right quantity
Sofgen, with its ERP, ensures that you as a business purchase the material in the right quantity, so that no wastage occurs, because the main goal of incorporation of ERP is to save cost and wastage.
In the right condition
Sofgen, with its ERP, ensures that you get the required materials in the right condition, so that you do not have to face issues related to quality of the material, because if the required materials are purchased in inappropriate condition, then it will also lead to losses.
At the right time
Sofgen ensures that the required materials are delivered at the right time with the incorporation of ERP, so that you as a business can use those materials at the right time.
To the right customer
Sofgen ensures that the required material is delivered to the right customer.
At the right price
Sofgen ensures that you as a client purchase materials only from those suppliers that offer the right price.
Furthermore, there are many other features of this material management module that benefits you as a client
Material in-transit
Sofgen ensures a reliable and fast material in-transit, so that you as a client can focus on other important tasks and activities. Conventional methods of material in-transit are slow and even inefficient at times, but that is not the case with ERP.
Material receipt management
Sofgen ensures a quick and efficient process of generating receipts for all the purchase orders that you as a client places, and this is the main reason that it is beneficial to you as a client to have such a quick and efficient process of receipt management.
Material movement with batch control
Material movement with batch control refers to the management and tracking of inventory items that are grouped into specific batches or lots. Each batch consists of a defined quantity of materials that share common characteristics, such as production date, supplier, quality attributes, and more. Batch control is particularly important in industries where traceability, quality assurance, and regulatory compliance are critical, such as pharmaceuticals, food and beverage, and chemicals. Here’s an overview of how material movement with batch control works.
Material issue based on production order
Material issue based on a production order is a critical aspect of material management, especially in manufacturing and production environments. This process involves the systematic and controlled release of materials from inventory to support the production of finished goods according to a specific production order or work order. Effective material issue based on production orders is crucial for maintaining accurate inventory levels, minimizing production disruptions, and ensuring timely completion of orders.
Material return
Material return in material management refers to the process of returning goods or materials to a supplier or the inventory from which they were originally sourced. This can occur for various reasons, such as defects, overstock, incorrect orders, quality issues, or changes in production requirements. Efficient management of material returns is essential to ensure accurate inventory records, supplier relationships, and cost control. Efficient material return management helps maintain accurate inventory records, control costs, and uphold good relationships with suppliers. It also contributes to effective quality control and contributes to overall process optimization in material management.
Material and stock analysis
Material and stock analysis and reporting are essential components of effective material management. These activities involve assessing and monitoring inventory levels, usage patterns, procurement strategies, and overall inventory performance. Generating accurate and timely reports helps organizations make informed decisions, optimize inventory levels, and improve operational efficiency. Material and Stock Analysis includes Inventory Turnover Rate, Stockout Analysis, Excess and Obsolete Inventory, Demand Variability, Lead Time Analysis, Supplier Performance, Material Usage Trends, Stock Ageing Analysis.
Valuation
Valuation in material management refers to the process of assigning a monetary value to the inventory and materials owned by an organization. Accurate valuation is essential for financial reporting, cost accounting, and decision-making. Different valuation methods are used to determine the value of inventory based on factors such as cost, market value, and usage. Here are some key concepts and methods related to valuation in material management:
Cost of Goods Sold (COGS),Inventory Valuation Methods such as FIFO (First-In, First-Out),LIFO(Last In-First Out),Material Ledger,Etc. valuation in material management has a direct impact on an organization’s financial statements, profitability, and decision-making. The chosen valuation method should align with the organization’s business model, industry practices, and accounting standards to ensure accurate representation of inventory value.
Subcontracting outward
Subcontracting Outward in Material Management refers to the process of outsourcing certain aspects of production or manufacturing to external subcontractors. This can involve sending raw materials, components, or semi-finished products to a third-party supplier for further processing, assembly, or value-added activities. Subcontracting outward can be a strategic decision to optimize production, reduce costs, or leverage specialized expertise. Subcontracting outward can offer various benefits, including cost savings, increased production flexibility, access to specialized skills, and the ability to focus on core competencies. However, it also comes with potential challenges, such as quality control issues, communication hurdles, and the need for effective contract management. Therefore, careful planning, due diligence, and ongoing monitoring are crucial for successful subcontracting outward in material management.
Inventory control
inventory control is a critical aspect of Material Management within an ERP system. It refers to the strategies, processes, and techniques used to manage and optimize an organization’s inventory levels to ensure that the right amount of materials is available at the right time while minimizing carrying costs and stockout. Some key components and considerations related to inventory control in Material Management like Demand Forecasting,Reorder Point (ROP) and Safety Stock,Economic Order Quantity (EOQ),Lead Time Management,Just-In-Time (JIT) Inventory,Reporting and Analytics.
Effective inventory control in Material Management results in reduced carrying costs, minimized stockouts, improved production efficiency, and better overall resource utilization. It plays a vital role in achieving operational excellence and meeting customer demands while maintaining a competitive edge in the market.
Bar-code Integration
Barcode integration in material management is a valuable feature that can significantly enhance the efficiency and accuracy of your inventory and supply chain processes. It involves the use of barcode technology to uniquely identify and track individual items, allowing for streamlined data entry, inventory tracking, and management.bar-code integration can benefit your material management system:Improved Data Accuracy,Faster Data Entry,Efficient Inventory Management,Quick Search and Retrieval,Batch and Lot Tracking,Enhanced Traceability,Simplified Auditing.
Incorporating barcode integration into your material management module can revolutionize your inventory management processes, helping you streamline operations, reduce errors, and make more informed decisions. It’s important to choose a solution that aligns with your business requirements and integrates seamlessly with your existing systems.
Reports
- Material Receipt
- Job Work(Goods Sent)
- Rejections
- Control Reports
- Stock
- Purchase Register
- Bill of Material Reports
- IssueChallan/Debit Note
- Consumption Vs Production Report
- Itemwise Partywise Supply Rate Register
- Itemwise Partywise Price Movement Register
- NonMovement Item Analysis
- List of Expiry Items
- Material Availablity Report
- Purchase Journal
- Purchase Reconcilation
- Deduction Memo
- Purchase Vs Issue Summary
- Issue Vs Purchase Summary
- 57F4 Register(For Rework Goods/Warranty Claims)
- Issue Register
- Issue Request Register
- Issue Request Register (Product Wise)
- Issue Summary With Value
- Itemwise Issue Summary
- DeptWise/Itemwise Issue Summary
- Production Target Vs Issue Summary
- Billwise Itemwise Freight Payment Register
Thus, with Sofgen, you can have an enhanced and advanced process of material management which will smoothen the flow of your business and give you the upper hand over your competitors. Apart from all the features and benefits that are offered to you, there is also a remarkable benefit that involves a range of reports that you can use to evaluate the performance of your business in terms of material management, and those reports include material receipt, rejections, control reports, purchase register, bill of material reports, list of expiry items, deduction memo, purchase journal, purchase reconciliation, issue request register, issue summary with value, item-wise issue summary, and many more.