Supply Chain and it’s impact on profit and growth in today’s business

What is Supply Chain Management? Supply Chain Management (SCM) is an important part of every organization, whether small or large. SCM is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. SCM also deals with the movement and storing of materials needed to create a product, as well as inventory management, and keeping track of finished goods from where they were created to who they go to.  Modern supply change management encompasses the strategic alignment of end-to-end business processes to realize market and econom...
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Store Management and Its Importance

What is Store? Store is an important component of material management.  Store keeps the materials such that the materials are well accounted for, are maintained safe, and are available at the time of requirement. Storage is an essential and vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function. The main processes of store are: to receive the incoming materials (receiving), to keep the materials as long as they are required for use (keeping in custody...
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How Material Management Evolved

History of Materials Management Material management as a discipline was rather slow to evolve as compared to production and marketing function. The growth of Material Management as a field of study and one of great relevance of business performance is of recent origin and have its root in the US economy. Over the years from the simple mechanism of exchange of goods and services it has transformed into a complex system of industrial production and commercial system. The supplies for manufacturing organization got disrupted during WW1, the shortage during the war and heavy inventories build up...
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Reports to give insights of Material Management

Reports to give insights of Material Management
Several reports that could be used for making your Material Management efficient and optimize your inventory are:- ABC Analysis ABC analysis is an inventory categorization method in which 10-20% materials having 70-80% annual consumption value comes under A while 50% materials that have less than 5% annual consumption value comes under C. B consist 30% materials of the total inventory and their annual consumption value is 15-25%. The aim of this analysis is to draw managers’ attention on the critical few items (A-items) and the trivial many (C-items). The inventory can be made more eff...
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Material Requirement Planning

Most of the SMEs today are facing problems in inventory control, delayed production, delayed in delivery and many such problems, this causes excess or shortage of materials in inventory, departments not getting materials in stipulated time and unhappiness of employees as well as customers But why are such problems so common in SMEs? These problems arise as a result of improper planning and management of materials. If proper planning is done, industries will know how much inventory to keep, causes of delay and estimate the correct time of delivery. This will help in preventing production de...
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Standard Material Management Process for growing SMEs

Why do you need Standard Material Management Process Efficiency in operations is necessary for every organization and hence you need to manage your materials as efficiently as possible. Adopting Standard Material Management process can be a good option for you. A Standard Material Management Process results in customer satisfaction and the overall success of the company. In many ways, it is the backbone of the manufacturing process as well. Various activities involved in Standard Material Management Process are Codifying Materials and Services This deals with uniquely identifying each ...
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Formats for Material Management Operations in SMEs

Why do you need Standard Material Management Formats Standard Material Management formats will help in collecting relevant data of your operations. This will eventually help you bringing more visibility and control over your organization, hence helping it in becoming more efficient. List of all the major operations involved in Material Management is given below with their formats so as to make your data collection easy:- Various templates of Material Management Formats Indent - When an internal department is in need of some materials for their processes they submit an indent to the Purchas...
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Material Requirement Planning

What is Material Requirement Planning (MRP)? Material Requirement Planning (MRP) is a system used for planning, production & inventory control. It integrates data of production schedules with inventory and BOM to calculate purchasing and shipping schedules for the materials that are required to build the final product. The three basic steps of MRP are:- Determine Quantity Requirements: Determine what quantity is on hand, in an open purchase order, planned for manufacturing, already committed to existing orders, and forecasted. These requirements are specific to each company and each...
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Importance of e-Procurement

Traditional procurement methods vs IT procurement process Procurement methods involve the process of finding, agreeing to terms & acquiring goods or services. Though this sounds pretty simple and straightforward but only the experienced know how difficult it can get with a multi-layered process that involves tedious steps. A traditional procurement methods starts with the identification of needs followed by an extensive process of exploration of supplier options to finally arrive at finalization of the supplier by fixing the price and all other terms including payment options, delivery...
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How Material Management influence Project Performance

Importance of Material Management: Material management is directly associated with the operational efficiency of an organization. A good material management system ensures the availability right materials in the production process with minimum wastage so as to cut losses. Here are the few ways which show the importance of material management and how it influences your project performance: - Time Time is widely recognized as a primary criterion for performance measurement. Poor material management can have a negative effect on project time, like the insufficient stock of materials, lead ...
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