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Material Management ERP Software helps manufacturers control the complete lifecycle of materials — from material planning and purchase to inward, quality inspection, warehouse storage, production consumption, stock transfer and finished-goods production.
For a manufacturing company, effective material management means knowing:
What material do we need? What do we have? What has been ordered? What has arrived? What has passed QC? What has been consumed? What is still required?
A connected ERP can bring all of these activities into one system.
Demand / Production Plan
↓
Material Requirement
↓
Stock Availability Check
↓
Purchase Requisition
↓
Supplier Quotation
↓
Purchase Order
↓
Material Receipt
↓
GRN
↓
Quality Inspection
↓
Approved Material Stock
↓
Warehouse / Bin
↓
Material Issue to Production
↓
Consumption
↓
WIP
↓
Finished Goods
This creates a complete digital material trail.
Maintain a centralized master for every material.
Capture:
A properly structured material master becomes the foundation for purchasing, inventory and production.
ERP can calculate material requirements based on:
Sales Orders + Production Plan + BOM + Current Stock + Open Purchase Orders
Production requirement:
1,000 units
BOM requires:
2 KG Material A per unit
Total requirement:
2,000 KG
Available stock:
1,200 KG
Open PO:
300 KG
Additional requirement:
500 KG
This information can help the purchase team plan procurement.
Material management should be directly connected to procurement.
Material Requirement → Purchase Requisition → RFQ → Supplier Quotation → Comparison → PO → Approval
Track:
When material reaches the factory:
Purchase Order → Material Receipt → GRN
The ERP can capture:
Material received should not necessarily become immediately available for production.
A controlled workflow can be:
Material Received
↓
QC Pending
↓
QC Approved
↓
Available Stock
or:
QC Rejected → Hold / Return to Supplier
This creates better control over production materials.
Manage materials across:
For multi-location businesses:
Plant 1 → Warehouse A → Rack → Bin
Plant 2 → Warehouse B → Rack → Bin
This provides location-wise material visibility.
Where applicable, track:
This is especially useful for industries such as:
Management can see:
Material ready for use.
Material allocated to an order or production plan.
Material received but awaiting inspection.
Material that failed quality checks.
Material covered by an open purchase order.
This gives a more complete picture than simply looking at “stock quantity.”
When production starts:
Production Order → Material Requirement → Material Issue
The ERP can record:
BOM connects material management with production.
For example:
For an order of 1,000 units, ERP can calculate the required quantities automatically.
This reduces manual calculations.
Compare:
Material A – 5 KG per unit
Material A – 5.4 KG per unit
The ERP can identify:
0.4 KG excess consumption
Management can investigate whether the difference is due to:
Move material between:
Warehouse → Production Store
Plant A → Plant B
Warehouse A → Warehouse B
The ERP can maintain complete stock movement history.
Automatic alerts can be generated when:
For example:
🔴 Material RM-102 is below reorder level.
Management can analyse:
Material management can also be connected to costing.
Track:
Purchase Cost → Inventory Cost → Consumption Cost → Production Cost
This can help calculate:
Chemical manufacturers may need:
Raw Material → Batch → QC → Formula → Production → Yield → Finished Batch
Track:
Garment businesses can manage:
Workflow:
Purchase → Inward → QC → Store → Cutting → Production → Consumption
Food ERP can manage:
Ingredient → Recipe → Batch → Production → QC → Finished Goods
Track:
Engineering manufacturers can connect:
BOM → MRP → Purchase → Stores → Material Issue → Production
Manage:
AI can provide management insights from ERP data.
For example:
“Which materials will run short based on current production orders?”
“Which materials are slow-moving?”
“What should we purchase this week?”
“Which raw material has the highest price increase?”
“Which products are consuming more material than their BOM?”
“Show material wastage for the last three months.”
AI should operate with appropriate user authentication and permissions so confidential material and purchasing information is only visible to authorized users.
Material alerts can be sent through WhatsApp:
📦 Low Stock Alert
RM-205
Current Stock: 180 KG
Reorder Level: 250 KG
✅ PO approval
✅ Material received
✅ QC approval
✅ Material shortage
✅ Purchase delay
✅ Production material requirement
✅ Stock summary
✅ Daily material report
A management dashboard can show:
Raw Material | WIP | Finished Goods
Open PO | Pending Material | Supplier Delivery
QC Pending | Approved | Rejected
Planned | Actual | Variance
Low Stock | Excess | Slow Moving | Near Expiry
The real value comes from connecting material management with the complete ERP.
Requirement → PO → GRN
GRN → Stock → Transfer
BOM → Issue → Consumption
QC → Approval → Release
Consumption → Product Cost
Order → Production → Finished Goods → Dispatch
Digify Soft Solutions provides customized ERP solutions for manufacturing businesses.
The material management system can be integrated with:
✅ Purchase
✅ Vendor Management
✅ Inventory
✅ Warehouse
✅ BOM
✅ MRP
✅ Production
✅ WIP
✅ Quality
✅ Costing
✅ Sales
✅ Dispatch
✅ Accounting
✅ AI
✅ WhatsApp
✅ Dashboards
PLAN → PURCHASE → RECEIVE → INSPECT → STORE → ISSUE → CONSUME → PRODUCE
✅ Material Master
✅ MRP
✅ Purchase Requisition
✅ Supplier Management
✅ Purchase Orders
✅ GRN
✅ QC
✅ Batch/Lot Tracking
✅ Warehouse Management
✅ Stock Transfers
✅ Material Issue
✅ BOM
✅ Material Consumption
✅ Wastage & Variance
✅ Production Integration
✅ Costing
✅ Reports & Dashboards
✅ AI Automation
✅ WhatsApp Integration
Show us your material management process and see how it can be digitized and automated.
📞 +91 7425016636
📧 [email protected]
🌐 Digify Soft Solutions
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