Material management is a subfield of operational purchasing and logistics management that deals with the procurement, administration, and control of materials and goods in a company. Its goal is to ensure the required materials are available in the right quantity, quality, and time at the best possible cost.
Typical functions of software in the field of material management could include:
Inventory Management: The software allows for managing the inventory of materials and goods, including monitoring inventory levels, inputs and outputs, and inventory valuations.
Procurement Management: It supports procurement of materials through automated ordering processes, supplier management, and price comparisons.
Warehouse Management: The software assists in organizing and managing warehouse locations for materials and goods as well as optimizing inventory levels and space.
Inventory Planning and Optimization: It enables planning and optimizing material stocks to avoid shortages and minimize storage costs.
Supplier Management: The software helps in managing suppliers, including assessing supplier performance, contract management, and ensuring delivery reliability.
Order Processing: It enables managing the entire order process, from ordering to delivery and invoice processing.
Quality Control: The software supports monitoring and ensuring the quality of materials through inspections, tests, and certifications.