In a manufacturing unit, a material planner could typically face one of these situations at some point of time - insufficient raw materials which can affect production, abundance of raw materials which adds to maintenance expenses and deciding on the optimal inventory which could be difficult as manual projections are not always accurate. That complicates things a bit, doesn’t it?
In truth, these are very common issues for any material planner, whose main job is to plan and procure raw materials required for production. This holds true especially in small and medium businesses where there is a lack of data integrity. Inaccurate counting procedures, lack of reporting on wastage, box damage, delivery errors, lack of bar code scanners and unique identification are other factors impacting data integrity.
Such problems can be tackled effectively by having an integrated system for maintaining data consistency and accuracy. For instance, Ramco OnDemand ERP can provide the material planner accurate information about inventory, raw material requirements, planning and budgeting, well in advance. It helps maintain data in a consistent manner for various departments to share as required. With this the material planner will be able to estimate the number of units that can be produced for a specific time period and provide a clear insight to the senior management team about the supply chain. This helps the senior management to work out the master-planning schedule and analyze the material requirements for the entire production.
RODE also helps the material planner to create proposals for procurements automatically. Since it is well integrated with other functions, information can be shared seamlessly such that, status of purchase, production, sales and shipping information can be obtained tirelessly. Unlike the past, where production forecast is done based on past experiences, using RODE, the material planner can forecast the material requirements based on the demand. By ensuring that required raw materials are procured and adequate units are produced, demands can be met and cost overruns can be minimized.