Monitoring raw materials consumption with ERP software

Raw materials are a vital part of your manufacturing operations. Monitoring the consumption, including goods are coming in, what’s currently being used in production and the final finished product. When starting business things such as warehouse management can be efficiently done with just a book or a whiteboard. After all, getting products to customers is the way to build a brand name that customers will trust.

However, as you grow, and as operations become more complex, monitoring the production by hand can be a full-time job. And often there is a switch where you’re more focused on the consumption of raw materials and warehouse efficiency.

This is when ERP software should be utilised. And it is ERP software that can take your business to the next level.

Why warehouse management should be computerised

There are several reasons why organisations should monitor raw material use with ERP software. First of all, it allows you to benefit from high levels of warehouse efficiency. Also, it can help with reducing waste which can lower production costs.

This also frees up the time of warehouse managers and supervisors. Allowing them to complete tasks that are going to offer more value to your business.

What are the benefits of ERP software for warehouse management? 

When you want to know what raw materials are currently being stored or used within your organisation, you want a quick overview. Looking at data for a long time to find a simple figure can be time-consuming.

ERP software allows you to capture the use of materials and semi-finished goods throughout the production process. All materials related to the finished product can be traced using an ERP system. It can help you find problems when there is a high level of rejects or faults within a production line. If you can determine whether the fault is because of a machine or materials, you can save money in the future.

Another improvement is the level of accuracy you can get of raw material stock levels that are stored or are currently assigned to work in process. The ERP system can automatically trace their whereabouts, so you know when you’re low in stock or when there are bottlenecks within your production processes that are preventing business efficiency.

Reducing waste within your production lines

Another huge benefit is being able to see when excessive materials are being used within the process. The system can highlight inefficiencies in materials usage or help consolidate processes so that similar jobs are done together.

Managers will also be able to validate consumed inventory against Bill of Materials (BOM), ensuring raw materials are being used by their end-dates and that FIFO rules are being met. If there is a problem with any of these, then there could be waste that is going to cost your business profit.

Run your business like a supermarket

Manufacturing businesses similar to a supermarket need to have a high inventory turnover ratio so nothing goes to waste. This allows your business to keep moving with limited bottlenecks.

An effective and comprehensive ERP system that manages the flow of raw products throughout your manufacturing process can provide all these benefits.