Material Management

Using material management systems to stay on track with raw materials and parts for production

Patients at a hospital check in and check out. Factories pump 24/7, assembling cars, dish washers, electronics. Construction sites start up at the crack of dawn, and a floor is added by dark.

What these bustling businesses have in common is a huge demand for material management systems and material management software. Someone is in charge of making the syringes, the car parts, the cement show up on time and be available to working hands. Materials management software is a help, but it's also a lot of brain power to keep material management in business on track and in budget.

Covered in this guide:

1. Best practices and resources for material management
2. Materials management software for big operations
3. Supply chain and material management software
4. The importance of specializing material management systems
and material management software

 

Get a handle on the practice and art of material management

No need to reinvent the wheel. The material management industry is wide and full of excellent, generally free best practices white papers and research.
Try: Take a look at CAPS Research, a joint operation of the Institute for Supply Management and Arizona State University W.P. Carey School of Business. The International Federation of Purchasing and Supply Management has publications as well. Learn more about materials management systems through materials management associations and organizations at Business.com.

Finding materials management software products

Materials resource planning (MRP) software is beginning to become common, but it's still sometimes lumped in as a module of more popular ERP (enterprise resource planning) software.
Try: While ERP is more robust, it's also expensive. If managing materials is your main concern, look at MRP softtware from QA Software, Frederick Group, and Power Purchase. Catch up on supply-chain management at Business.com.

Major league material management software

The bigger picture on material management systems is overall supply chain management. Software now track the part or crate of material from a factory in Shanghai through your shop and on to the customer.
Try: Some makers of supply chain software for materials management include da Vinci, Manhattan Associates and Ross Systems. See additional resources for materials resource planning software at Business.com.

Specialized material management systems according to need

While general materials management software can go a long way, some industries require specialized help in managing materials, like healthcare.
Try: Trade publication Modern Materials Handling magazine has a very good site with detailed case studies and links to nearly every materials association. See more on just-in-time materials management at Business.com.

 

• There's a lot of confusion in the industry between inventory, supply chain and materials management. Material management in business relates specifically to feeding a production process -- raw materials or supplies -- while inventory and supply chain could be actual products for manufacture or sale.
• Before you put out a request for quotes on materials management software, it may be money better spent to have a consultant come in and overhaul your entire process first.
• Managing materials is a cornerstone of profitability in some industries. Too much materials inventory eats capital, not enough slows production. Do your own return on investment review. Money spent improving material management or buying material management software could be recaptured pretty quickly.

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