Raw materials such as Thermal Spray Powders are essential resources for any production process. The lack of an item or the excess of material are two extremes that every industry must avoid, and this is only possible with good raw material management practices.
Managing materials like in tungco for example is undoubtedly a challenge in the day-to-day of managers, and when this is neglected, it affects not only the industry’s productivity but also the business’s profitability. But how to manage raw materials more efficiently? Below, we present 5 essential points for the success of this routine.
- Establish The Inflow And Outflow Of Materials
As previously mentioned, inventory control is also part of raw material management. Here, the entry process is monitored, that is when the raw material arrives at the company, and the output, when the material becomes available to be used in production. For these transactions, items are registered, and storage location, controls, and movement rules are defined, among other routine stock practices.
- Monitor And Understand The Production Line
A starting point is to know in depth all the stages of the production process. From this, it is possible to assess what each one needs to work efficiently, seek improvements and identify bottlenecks in the process. Monitoring also points out indicators of the quality and quantity of materials used. This information shows what will be available for sales and what has been lost and helps plan purchases.
- Plan Actions For Critical Moments
Every good management practice has contingency planning, and, in the case of raw material management, it is a way of anticipating supply problems or any issue that harms supply. An action plan for these situations is to have alternative suppliers and pricing and promotion strategies to leverage sales of other products whose replenishment has not been affected.
- Have Good Suppliers
Managing raw materials also means having good purchasing strategies, reliable suppliers, and a partnership with them. Without this, the company risks not having the necessary resources to go into production. Supplier management involves price, payment terms, and delivery time, but it is also linked to the quality of the items and a good relationship between price negotiation and urgent care.
- Adopt Technological Systems
Managing manually, with spreadsheets and notes, makes processes slower and more susceptible to failure. Instead of a continuous and productive flow, the company suffers from errors and reworks due to duplicate data or lack of information.
The use of software to control inventory, for example, contributes to the following:
- Better manage the purchase of raw materials, avoiding the excess of stored materials
- Correctly catalog the items for your identification
- Streamline the location of material within the stock