Raw materials are one of the biggest costs for any manufacturer. Yet many plants still buy too much, run short at the worst time or lose material to scrap. Good raw material management fixes this. With the right ERP, you buy only what production needs, track every batch and keep your lines running. In this post, we explain how eresource helps manufacturers speed up production cycles and use less raw material. We also share simple steps you can start with today.
Why Raw Material Management Matters
Poor control of materials hurts a plant in three ways. Overstock ties up cash, and shortages stop production lines. Meanwhile, waste and scrap quietly eat into margins.
In each case, the root cause is the same. Nobody has a live, true picture of what you hold and what you need. eresource gives you that picture through real-time data access across the business. See why true real-time inventory must track costs as well as stock counts.
Raw Material Management Starts With Real Demand
The best way to cut stock is to buy against real demand. eresource includes advanced planning and scheduling (APS), which plans production around confirmed orders and capacity.
In turn, material requirements planning works out which materials you need, how much and when. The production module then turns these plans into daily work orders. If you run several sites, see how a multi-plant ERP balances demand across them.
Buy Smarter With Online Procurement
eresource also supports net-based procurement. Buyers raise purchase orders online, compare supplier quotes and track deliveries in one place.
As a result, materials arrive when production needs them, not weeks early. The purchase module keeps every supplier, price and agreement on record. Read how a B2B ERP links you with your suppliers.
Track Every Batch, Wherever It Sits
Materials do not always sit in your own store. Some stay at suppliers’ sites under vendor-managed inventory, while others wait at remote warehouses.
eresource tracks this off-site stock along with your own. The store module records every receipt, issue and transfer as it happens. So planners always know the true stock position before they order more.
Cut Scrap and Rework
Every defect wastes the materials that went into it. Therefore, catching problems early saves both time and raw material.
With total quality management, you can check materials on arrival and products at each stage. You can also trace each defect to its batch, machine and shift. Learn how plant data helps reduce product defects.
Shorter Production Cycles
When the right materials arrive on time, lines stop waiting. Production cycles get shorter, and output rises without extra shifts.
eresource also helps you plan, map and run key workflows across the business. Together, these changes speed up every order. See how ERP helps you reduce cycle time.
Better Decisions With Business Intelligence
Built-in business intelligence turns material data into clear insight. For example, you can compare actual usage with the standard for each product. You can also check supplier delivery records and spot items that move slowly.
With Dashboard Studio, each manager sees the figures that matter most. For more, read about ERP with business intelligence.
Easy to Change, Easy to Learn
Processes change as your products and suppliers change. eresource lets you reconfigure business processes quickly and simply.
In addition, its clear screens need very little training. So store and production staff can start using it with confidence. Read why it is an easy-to-use ERP.
5 Steps to Better Raw Material Management
Follow these steps to cut waste and keep lines running:
- Fix your bills of materials: Make sure each product lists the right materials and amounts.
- Set reorder levels: Define minimum and maximum stock for each key item.
- Link buying to the plan: Raise purchase orders from the production schedule.
- Record actual usage: Log materials used and scrap for every batch.
- Review each month: Compare usage, yield and supplier performance, then act on the gaps.
Improve Raw Material Management With eresource
As a next-generation ERP system, eresource runs fully on the web. Our 3X faster implementation method aims for go-live in under four weeks. For tips on a smooth rollout, read ERP implementation: when, why and how. To see it on your own materials, book a free ERP demo.
Also Read – ERP System for Construction Industry
FAQs About Raw Material Management
What is raw material management?
Raw material management means planning, buying, storing and using materials so production always has what it needs. Good management avoids overstock, shortages and waste.
How does ERP reduce raw material costs?
ERP plans purchases from real orders and production schedules, so you buy only what you need. It also tracks stock in real time and cuts scrap through quality checks.
How does ERP shorten production cycles?
When the right materials arrive on time, production lines stop waiting. ERP links planning, buying and the shop floor, so each order moves faster. Read more about how ERP helps reduce cycle time.
Can eresource track stock held at suppliers' sites?
Yes. eresource tracks vendor-managed inventory and stock at remote warehouses along with your own store. Learn more about the store module.
Do store and production staff need much training?
No. eresource has clear screens that need very little training. Staff can start using it with confidence after short hands-on sessions.
