Best ERP Software for Material Management

Efficient material management is essential for the maintenance of fluid operations and the guarantee of seamless production processes in the modern industrial landscape. This efficiency is dependent on material management software, which provides a comprehensive array of tools that are specifically designed to manage a wide range of tasks, including real-time stock valuation and inventory requisitions. This article explores the fundamental modules and capabilities of comprehensive material management software, demonstrating its potential to revolutionize your business operations.

Material management is the strategic coordination of resources, encompassing the entire process from acquisition to disposal. Its importance has increased in the current volatile business environment, which is characterized by supply chain disruptions and increasing costs. Statistics underscore this significance: the Institute of Supply Management estimates that inventory holding costs can consume 20–35% of inventory value annually, and supply chain disruptions, such as the COVID-19 pandemic (Gartner, 2020), have led to substantial financial losses. Effective material management is not merely about cost reduction; it is about promoting sustainability, enhancing efficiency, and nurturing resilience. Organizations can achieve substantial savings and obtain a competitive advantage by optimizing inventory, procurement, and overall resource utilization.

What is Material Management Software?

An organization uses Material Management Software, a digital solution, to manage the procurement, storage, and distribution of materials. It evolved from traditional manual methods to sophisticated systems that integrate with other enterprise solutions. Initially, businesses relied on spreadsheets and manual record-keeping, which were prone to errors and inefficiencies. The advent of computerized systems marked a significant shift, enabling real-time data access and improved accuracy.

The Core Modules of Material Management Software

Inventory Requisition

Inventory requisition is a critical module in inventory management systems that enables efficient tracking and handling of inventory requests. This functionality ensures that materials and supplies are available when needed, facilitating smooth operations without the risks of overstocking or understocking. By streamlining the request process, inventory requisition helps maintain optimal inventory levels, reducing waste and ensuring that resources are utilized effectively.

Material Issue

Material issue management plays a vital role in recording and overseeing the distribution of materials to various departments or work orders. This module tracks the flow of materials from the warehouse to their designated locations, ensuring accurate usage data. It helps prevent discrepancies by maintaining a detailed record of issued materials, which supports accountability and transparency. This process is essential for operational efficiency, as it ensures that the right materials are available for the right tasks at the right time.

Gate Pass

A gate pass module is indispensable for managing the movement of materials in and out of a facility. This feature ensures that all materials are properly documented and authorized before they leave or enter the premises, enhancing security and reducing the risk of theft or loss. The gate pass system provides a comprehensive log of material movements, which is crucial for auditing and compliance purposes. It also helps in maintaining an organized flow of materials, which is essential for operational integrity and safety.

Stock Valuation

Stock valuation is a key module that offers a real-time assessment of inventory value. By employing methods such as FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average, this module calculates the cost of goods sold and the ending inventory values. Accurate stock valuation is crucial for financial reporting, budgeting, and decision-making processes. It helps businesses understand the true value of their inventory, ensuring better financial management and strategic planning.

Loan Management

Loan management is a crucial aspect of inventory systems that deals with the lending and borrowing of materials between different departments within an organization or with external entities. This module meticulously tracks all loaned materials, maintaining clear records of borrowing and return dates. Maintaining inventory balance, preventing material loss, and ensuring timely return of borrowed items minimizes operational disruptions through proper loan management.

Inventory Re-Order Level

Setting reorder levels is essential for avoiding both stockouts and overstocking. This module automates the re-order process by triggering purchase orders when inventory levels fall below a predetermined threshold. By maintaining inventory levels within optimal ranges, it supports uninterrupted operations and reduces the need for emergency procurement. This proactive approach to inventory management helps reduce costs and improves overall supply chain efficiency.

Key Features of Material Management Software

• Material Inventory System According to Work Order: Aligning inventory with work orders ensures that materials are allocated efficiently and reduces waste. This feature links inventory management directly with production schedules.
• Internal Requisition Controlling and Items Track: Internal requisition control tracks all requests within the organization, ensuring that each request is authorized and materials are used appropriately.
• Item Control: Item control helps maintain accurate records of all inventory items. This includes tracking quantities, locations, and usage history, ensuring precise inventory management.
• Define Item Categories and Item Locations: Categorizing items and defining their locations streamlines inventory management. It makes it easier to find items and manage stock efficiently.
• Real-Time Access to the Material Stock: Real-time stock access provides up-to-date information on inventory levels. This feature is crucial for making informed decisions and avoiding stockouts or overstocking.
• Set Re-Order Levels for Inventory Items: Automatic re-order levels ensure that inventory is replenished promptly, avoiding disruptions in production and operations.
• Automatic Calculation of Average Material Cost (Per Unit): This feature calculates the average cost of materials, helping in accurate cost management and pricing strategies.
• Auto Voucher from Transaction Posting: Auto voucher creation streamlines accounting processes by automatically generating vouchers from inventory transactions, ensuring accurate financial records.
• Integrated with Accounts: Integration with accounting systems ensures seamless financial management and reduces manual data entry, minimizing errors.
• Barcode Enabled Gate Pass or Challan Management: Barcode integration enhances the accuracy and efficiency of gate pass management, ensuring secure and precise tracking of materials.
• Demand & Supply Forecast: Forecasting demand and supply helps in planning inventory needs, optimizing stock levels, reducing costs and improving service levels.
• Real-Time Stock Valuation: Real-time valuation provides up-to-date financial information, aiding in better financial planning and reporting.
• Stock Reconciliation: Stock reconciliation ensures that physical inventory matches system records, identifying and correcting discrepancies.
• Material Loan Management: Effective management of material loans ensures proper tracking of borrowed items, reducing losses and maintaining inventory integrity.
• Inter-Company Material Transfer: This feature facilitates the transfer of materials between different branches or companies, ensuring smooth operations and optimal resource utilization.

Best ERP Software for Material Management – PrideERP

A manufacturing company’s primary objective is to guarantee the implementation of a suitable Supply Chain Management Model and to adhere to each phase of the process. The business will incur substantial losses as a result of excessive lead time and material waste if supply chain management is not effective and executed in accordance with the original plan. Pridesys IT Limited offers the most effective Enterprise Resource Planning (ERP) software in Bangladesh to guarantee the uninterrupted flow of materials and minimize waste. PrideERP, our Enterprise Resource Planning (ERP) software, offers a comprehensive solution to all your issues.

Our PrideERP Material Management software eradicates the mismatch of inventories and thus reduces the cost for the business to a large extent. Here’s how our PrideERP MMS system helps you:

• Material Valuation: Whether you use Last-In-First-Out (LIFO) or First-In-First-Out (FIFO), our material valuation helps determine the price of the material to be recorded and at what price they are sent for production.
• Multi-Location Inventory: If your business has multiple warehouses to store your raw materials, there is no need to conduct stock valuation every week or month. PrideERP Material Management software records your material from numerous warehouses at once and provides you with summarized and detailed reports of your inventory.
• Lot and Serial Traceability: PrideERP Material Management software can record your inventory in lots or serials so that you can keep proper track of your material usage.
• Scheduling and Resourcing: Our PrideERP Material Management software monitors your inventory level from time to time and helps you plan your resources effectively by streamlining all the work order scheduling and activity planning.

Material Management Software vs Traditional Methods

MMS provides various advantages over traditional approaches, including enhanced accuracy, efficiency, and scalability. Traditional approaches rely on manual processes, which are prone to errors and inefficiencies. MMS automates these processes, giving real-time data while lowering the possibility of human error. The traditional methods often involve labor-intensive tasks like manual data entry, physical stock counts, and paper-based record-keeping, which can lead to significant inaccuracies and time delays. MMS, on the other hand, utilizes technology to optimize operations, guaranteeing precise tracking of inventory levels, prompt processing of orders, and effective management of materials throughout the supply chain. Additionally, MMS allows for better scalability as businesses grow, providing the flexibility to handle increasing volumes of data and transactions without a proportional increase in labor costs. Overall, MMS transforms material management from a cumbersome and error-prone activity into a streamlined, efficient, and reliable process that supports business growth and operational excellence.