Materials management: what it is, how it works and how to improve it in your factory

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Materials management: what it is, how it works and how to improve it in your factory

Post by etikhatun986 » Wed Aug 30, 2023 2:52 am

Materials management is the planning and control of the purchase, maintenance and use of materials used by the company. The objective is to guarantee a continuous flow of stock, without excessive expenses and maintaining the desired quality.

The organization of company materials is especially important for an industry, as this sector uses much more materials than other sectors, such as services.

Here on the blog we have already talked about the list of materials and in this article we will see in a more general way how it works and how to improve the management of materials throughout the company.

The goal is to understand:

What is Materials Management?
What are the benefits of material management
How to manage materials well
How an ERP system can help
With this, your company can:

reduce losses
reduce inventories
Reduce costs
Take actions to increase productivity
Increase profit margin
Improve the overall organization of the company
I recommend that you read the content until the end to find out how to put the tips in the text into practice. Let's go!

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What is materials management?
As we have seen, materials management is the planning, organization and use of factory materials.

This process is carried out in a few steps:

Identification of materials
Organization and distribution of materials
Optimization of the use of materials
Its main objective is to organize and control: purchases, warehouse , stock and finally the use of materials in production.

Good material management allows the company to correctly understand how much it spends on materials and how these materials are used. This is essential for the manager to identify areas for improvement and reduce costs .

What are the benefits of materials management?
Good material management provides several benefits for the company that puts it into practice.

The most direct benefits are:

No shortage of materials for production
Reduce the loss of materials in inventory and warehouse
Reduce the time spent ordering and delivering materials
Reduce excess inventory
This organization ends up generating other more global benefits, such as:

cost reduction
Increased profit margin
increase in productivity
Increased customer satisfaction (who will not have their orders delayed due to lack of materials)
If you stop to think about it, many Email Marketing Database companies have enormous capital in the form of inventory and materials. Therefore, good management of materials can be considered good management of the company's money.

See also: NPS (Net Promoter Score): what it means, how to calculate it and how to apply it

How to manage materials well?
Now let's see some practical tips to improve the management of materials in an industry.

The objective is to guide superficially what are the main steps to improve this sector.


Identify all materials used in your industry
To start organizing, you need to really know your industry. It is necessary to list all the materials used by the company.

One way to do this is to study the company's activities so that it is possible to list all the materials needed for each task.

The manager must assemble a detailed list, with dates and amounts, of all the materials necessary for the proper functioning of the company. If the focus is only on production, list all items necessary to keep production running at the desired quality.

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