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Material Control

Material control is a systematic management function in manufacturing and production processes that involves planning, procuring, storing, handling, and utilizing inventory to ensure uninterrupted operations, minimize waste, and optimize costs.^[1] It encompasses the oversight of raw materials, components, and supplies from acquisition through consumption, aiming to maintain the right quantity and quality of materials at the lowest possible expense while preventing losses from theft, spoilage, or inefficiencies.^[2] The primary objectives of material control include guaranteeing a steady supply of high-quality materials to support continuous production, reducing capital tied up in excess inventory, and facilitating accurate cost accounting through perpetual records and reconciliations.^[2] By implementing internal checks, standardized purchasing procedures, and efficient storage systems, it helps organizations avoid production delays, lower handling costs, and enhance overall resource utilization in supply chain operations.^[3] In practice, material control integrates with broader inventory management strategies, such as just-in-time delivery and economic order quantity calculations, to balance supply demands in dynamic manufacturing environments.^[4] Key techniques in material control often involve categorization methods like ABC analysis to prioritize high-value items, perpetual inventory systems for real-time tracking, and regular audits to reconcile physical stock with records, ensuring compliance and adaptability to project-specific needs in construction or discrete manufacturing.^[2]^[5] These approaches not only mitigate risks associated with material shortages or overstocking but also contribute to sustainable practices by minimizing environmental impacts from excess waste.^[3]^[6]

Overview

Definition

Material control is the systematic planning, organizing, and supervising of the flow of raw materials, components, work-in-progress, and finished goods from procurement through usage, aimed at minimizing costs and waste while ensuring timely availability for production needs.^[2] This process integrates oversight mechanisms to regulate material inflows and outflows, preventing disruptions in manufacturing operations and supporting overall efficiency in resource allocation.^[7] The scope of material control encompasses coordination among key functions such as purchasing, production scheduling, and logistics to maintain optimal levels of materials throughout the supply chain.^[2] It focuses on establishing protocols for material receipt, storage, issuance, and usage tracking, ensuring that materials are handled in a manner that aligns with production demands without excess accumulation or shortages.^[7] Inventory management serves as a primary sub-component, providing the tools for monitoring stock levels and turnover.^[8] Material control represents a subset of the broader materials management discipline, with its emphasis placed specifically on regulatory and supervisory mechanisms rather than comprehensive acquisition or sourcing strategies.^[7] Its key objectives include achieving cost reductions through efficient procurement and usage practices, optimizing resource utilization to avoid idle assets, preventing stockouts or overstocking to sustain uninterrupted operations, and ensuring adherence to established quality standards for all materials involved.^[2]

Importance

Material control plays a pivotal role in enhancing business efficiency by delivering substantial economic benefits. Effective material control reduces holding costs, which can account for 20% to 30% of the annual inventory value, by optimizing stock levels and preventing excess accumulation.^[9] It also minimizes ordering expenses through streamlined procurement processes that align purchases with actual demand, avoiding over-ordering and associated administrative burdens.^[10] Furthermore, by tying up less capital in unnecessary stock, material control improves cash flow, allowing businesses to allocate resources more effectively toward growth initiatives.^[11] Operationally, material control ensures uninterrupted production by maintaining optimal material availability, thereby preventing downtime and supporting seamless manufacturing workflows.^[12] It underpins just-in-time (JIT) manufacturing, where materials arrive precisely when needed, reducing waste and enhancing overall productivity.^[13] Additionally, robust material control improves supply chain responsiveness, enabling quicker adaptations to market changes and customer demands through better forecasting and coordination.^[14] In terms of risk mitigation, material control prevents production delays caused by material shortages by implementing vigilant monitoring and replenishment strategies.^[12] It reduces waste from obsolescence by regularly assessing stock viability and rotating inventory to prioritize high-turnover items.^[15] Moreover, it aids regulatory compliance, such as adherence to ISO 9001 standards for quality management, which emphasize controlled material handling to ensure product integrity and traceability.^[16] Beyond these advantages, material control contributes to sustainability by minimizing excess inventory, which lowers the environmental footprint through reduced resource consumption and energy use in storage.^[17] It also curbs material spoilage, particularly in perishable goods sectors, promoting waste reduction and circular economy principles.^[18] In manufacturing and retail industries, poor material control has led to significant losses, as evidenced by the 2020s supply chain crises triggered by the COVID-19 pandemic, which amplified shortages and underscored the need for resilient control systems to avoid disruptions.^[19]^[20]

Historical Development

Origins in Early Manufacturing

Material control practices emerged during the late stages of the Industrial Revolution in the early 20th century, as manufacturing shifted toward mass production and required systematic management of raw materials to support expanding output. A pivotal development occurred in 1913 when Henry Ford introduced the moving assembly line at the Highland Park plant, which relied on standardized parts to enable interchangeable components across vehicles, thereby streamlining material flow and reducing variability in production. This innovation served as a precursor to just-in-time delivery by emphasizing precise timing of part availability at each assembly station to prevent delays, minimizing excess inventory while ensuring continuous operation.^[21] The principles of scientific management, pioneered by Frederick Winslow Taylor in the 1900s and 1910s, further shaped early material control by prioritizing efficiency in material handling and waste reduction to boost overall productivity. In his 1911 monograph The Principles of Scientific Management, Taylor advocated replacing rule-of-thumb methods with scientifically determined tasks, such as optimizing pig iron handling at Bethlehem Steel, where output per worker increased from 12.5 to 47.5 tons per day through time studies and worker training. These approaches highlighted the need for planned material movement and minimized idle resources, laying a foundation for controlled inventory in industrial settings.^[22] Following World War I, the 1920s and 1930s saw a focus on basic stock control amid the rise of mass production, with companies like General Motors implementing rudimentary tracking systems to manage raw materials effectively. In 1921, GM began collecting data on dealer inventories and deliveries to align production with demand, evolving by 1924 into a formalized system that monitored stocks, sales forecasts, and material requirements through monthly analyses. This enabled smoother inventory flow by accumulating stocks during low-demand periods and liquidating them in high-demand seasons, while addressing raw material shortages through improved tracking post the 1920-1921 downturn.^[23] A key milestone in quantitative material control came in 1913 with Ford Whitman Harris's introduction of the economic order quantity (EOQ) model, which provided a mathematical framework for determining optimal lot sizes to balance ordering and holding costs. Published in Factory, The Magazine of Management, the model assumed constant demand and derived a square-root formula for lot sizing, establishing early principles for cost-effective inventory decisions in manufacturing. This work influenced subsequent developments in systematic material management.^[24]

Modern Evolution

Following World War II, material control underwent significant advancements in the 1950s and 1960s with the introduction of Material Requirements Planning (MRP), pioneered by Joseph Orlicky while working at J.I. Case, which leveraged early computers to enable time-phased, demand-based scheduling of materials for production.^[25] This shift from manual inventory methods to computerized systems addressed the growing complexity of manufacturing demands, allowing for more precise calculation of material needs based on production schedules and lead times.^[26] In the 1970s and 1980s, MRP evolved into Manufacturing Resource Planning (MRP II), expanding its scope to integrate production planning with financial and operational functions, thereby providing a closed-loop system for resource management across enterprises.^[27] Concurrently, the Just-In-Time (JIT) approach, originating from the Toyota Production System, which built on concepts proposed by Kiichiro Toyoda in the 1930s and was developed by Taiichi Ohno in the post-war period, gained widespread adoption in the 1980s as a lean method to minimize inventory holding costs by synchronizing material deliveries with immediate production needs.^[28]^[29] The 1990s marked a period of globalization in material control, driven by the proliferation of Enterprise Resource Planning (ERP) systems, such as SAP founded in 1972, which became widely adopted for enabling real-time tracking and coordination of materials across global operations.^[30] This era responded to post-Cold War supply chain complexities, including increased cross-border production and trade liberalization, which necessitated integrated systems to manage dispersed suppliers and logistics efficiently.^[31] From the 2000s to the 2020s, material control advanced through the integration of artificial intelligence (AI) and Internet of Things (IoT) technologies for predictive analytics, enabling proactive inventory adjustments and demand forecasting to optimize material flows.^[32] Events like the 2008 financial crisis, which exposed vulnerabilities in demand forecasting and supplier reliability, and the COVID-19 pandemic in 2020, which caused widespread disruptions in global sourcing, underscored the need for resilient material control strategies focused on diversification and risk mitigation.^[33]^[34] By 2025, blockchain technology has emerged as a key tool for enhancing traceability in material control, providing immutable records of supply chain transactions to combat counterfeiting and ensure compliance.^[35]

Key Components

Procurement

Procurement serves as the initial phase of material control, encompassing the strategic sourcing and acquisition of raw materials, components, and supplies essential for production. This process begins with identifying needs based on production forecasts and ends with the receipt and verification of goods, ensuring alignment with organizational objectives while minimizing risks and costs. Vendor selection and negotiation form the cornerstone of effective procurement, where organizations evaluate potential suppliers using multifaceted criteria to secure optimal terms. Key factors include total cost, which encompasses not just the unit price but also delivery and maintenance expenses; quality, assessed through product samples and capability audits to ensure consistency with specifications; and reliability, evaluated via financial stability checks and service responsiveness to guarantee timely supply. Strategies such as competitive bidding, often facilitated by requests for proposals (RFPs), allow procurement teams to solicit bids from multiple vendors and compare offerings systematically. Long-term contracts, negotiated with top performers, foster stability by locking in favorable pricing and terms while incorporating performance metrics for ongoing evaluation.^[36]^[37] Purchase order management operationalizes these selections through structured processes that link procurement to broader production planning. It starts with the creation of a purchase requisition, where departments submit formal requests detailing quantities, specifications, and justifications tied to production forecasts to prevent over- or under-ordering. This is followed by an approval workflow, involving budget holders and managers to verify compliance with policies, budgets, and timelines, ensuring fiscal responsibility. Upon approval, the procurement team generates and dispatches the purchase order to the selected vendor, specifying exact terms like pricing, delivery schedules, and payment conditions to align inflows with manufacturing needs. Digital tools often automate these steps to reduce errors and expedite processing, with a 2022 study finding that 61% of organizations experience operational inefficiencies due to manual purchase order processes.^[38]^[39] Inbound logistics handles the physical arrival of materials, focusing on receiving, inspection, and verification to maintain quality at the entry point. Upon shipment arrival, receiving teams unload and count goods, scanning identifiers to match against the purchase order for quantity accuracy. Inspection follows, where staff examine the condition and specifications of materials—such as dimensions, materials composition, and compliance with standards—to identify defects or discrepancies immediately. Verification ensures all items meet predefined criteria, documenting any variances for supplier resolution or rejection, thereby preventing substandard materials from entering the production cycle. This phase is critical for early detection, as unchecked issues can cascade into production delays or rework costs.^[40]^[41] Cost control in procurement integrates budgeting, tariff management, and transportation optimization to sustain financial efficiency throughout the acquisition process. Budgeting involves techniques like zero-based budgeting, where every expense is justified anew each period to eliminate waste, alongside quarterly cost analyses benchmarking against industry standards to curb overspending. Tariffs and duties, such as import taxes adding 8% to a $10,000 base cost, are factored into total landed costs through customs expertise or broker partnerships to avoid surprises. Transportation costs are mitigated by consolidating orders, negotiating carrier rates via reverse auctions, and building long-term logistics alliances. Poor procurement practices exacerbate downstream issues; for instance, selecting unreliable vendors can lead to delivery delays, necessitating costly expedited shipping and causing production halts, while subpar quality choices result in defects triggering recalls, reputational damage, and financial losses exceeding millions in rework and liability.^[42]^[43]

Inventory Management

Inventory management in material control involves the systematic oversight of stock levels to ensure availability of materials for production and operations while minimizing costs associated with overstocking or shortages. This process begins with inputs from procurement, where acquired materials enter the inventory system for ongoing monitoring. Effective inventory management balances holding costs against the risks of stockouts, relying on established principles to maintain operational efficiency. Stock level determination is a core aspect, focusing on establishing reorder points and minimum/maximum inventory thresholds to align with operational needs. Reorder points are calculated as the expected demand during lead time plus a safety buffer to account for variability in supply or demand. Minimum levels represent the lowest acceptable stock to avoid disruptions, while maximum levels cap holdings to prevent excess capital tie-up. These parameters are adjusted based on lead time duration—the period from order placement to receipt—and demand variability, which can stem from market fluctuations or production changes. For instance, longer lead times necessitate higher reorder points to cover extended gaps.^[44]^[45] Tracking systems ensure accurate visibility into inventory status through methods like perpetual and periodic counts. Perpetual inventory systems provide real-time updates by recording every transaction, such as receipts and issuances, allowing continuous monitoring without full physical audits. In contrast, periodic systems involve scheduled full counts at fixed intervals, like monthly or annually, to reconcile records with actual stock. To enhance accuracy in perpetual setups, cycle counting is employed, where subsets of inventory are audited regularly—often prioritizing high-value items—reducing errors from theft, damage, or miscounts over time. This approach maintains record precision, with discrepancies addressed promptly to uphold system reliability.^[46] Integration of demand forecasting refines inventory levels by leveraging historical data and sales projections to anticipate needs and avoid surplus. Historical sales patterns, combined with trend analysis, inform adjustments to stock targets, ensuring replenishment aligns with projected usage rather than reactive ordering. For example, seasonal sales spikes can trigger preemptive increases in minimum levels, while steady-state projections help set conservative maximums. This data-driven method minimizes excess inventory by syncing stock with forecasted demand, reducing holding costs and improving cash flow.^[47]^[48] Waste minimization targets inefficient stock use, particularly slow-moving items that tie up resources without contributing to operations. Identifying these through tracking data—such as items with low turnover rates—enables strategies like disposal of obsolete materials or repurposing for alternative uses within the organization. Liquidation via sales or donations can recover value, freeing capital for active inventory. For instance, repackaging slow-movers for secondary markets or recycling components prevents total loss, aligning with broader efficiency goals.^[49]^[50]

Storage and Distribution

Warehouse organization is essential for maintaining efficient access to materials while ensuring safety and preserving product integrity. Layout designs typically prioritize logical zoning, such as placing high-turnover items near receiving and shipping areas to minimize travel time, with dedicated zones for unit-load, carton-pick, and piece-pick operations.^[51] For perishable goods, first-in-first-out (FIFO) systems are implemented using drive-through or flow racks to rotate stock and prevent spoilage, often combined with first-expired-first-out (FEFO) for items with varying shelf lives.^[51] Safety protocols include maintaining clear aisles (e.g., 12-15 feet for forklifts), ergonomic slotting like the "golden zone" at waist height for frequent picks, and structural safeguards such as pallet racks to avoid unstable stacking.^[51] Environmental controls, particularly in controlled-atmosphere warehouses, involve temperature zoning—such as ambient, chilled (around 2°C), and frozen (-18°C) areas—for perishables, alongside humidity management to mitigate seasonal impacts like condensation on stacked goods.^[51] Material handling equipment facilitates the safe and cost-effective movement of goods within the warehouse. Forklifts, including counterbalance models for standard pallet handling and reach trucks for narrower aisles, enable vertical storage up to 30-45 feet while reducing manual labor through dual-cycle operations that combine picking and depositing.^[51] Conveyors support continuous flow for cartons and freight, integrating with sortation systems to streamline distribution and lower damage risks from manual transfers.^[51] Basic automation, such as automated storage and retrieval systems (AS/RS) with stacker cranes, boosts throughput to 150-500 picks per hour and cuts labor costs by optimizing dense storage, though it requires balanced loading to prevent equipment tipping or product harm.^[51] Issuance and distribution processes ensure controlled release of materials to production lines, relying on authorized requisitions to maintain accountability. A materials requisition form, approved by a designated supervisor, documents the request and withdrawal, specifying quantities, descriptions, and destinations to authorize transfers only for verified needs.^[52] Tracking occurs via perpetual inventory records that log issuances in real-time, reconciled against physical counts to identify variances and prevent pilferage through limited access and segregation of duties—where custodians handle movement but not record-keeping.^[52] Bills of lading or issue tickets further secure distribution by verifying receipt at production sites, closing the loop on material flow. Reverse logistics completes the material control cycle by managing the return of defective items, scraps, and recyclables back to the warehouse for value recovery. This involves collecting returns—with rates of 20-40% in high-return sectors like apparel e-commerce—through dedicated channels for inspection, refurbishment, or recycling to minimize waste and costs totaling $890 billion in 2024 in the U.S.^[53]^[54] Scrap materials are sorted for resale, remanufacturing, or disposal, while recyclables like packaging are processed under regulations such as state-level mandates to extract reusable components.^[55] Disposition decisions prioritize economic options like refurbishing for resale or recycling to feed forward supply chains, supported by warehouse zoning for reverse flows to avoid contaminating primary inventory.^[55]

Techniques and Methods

Classification Systems

Classification systems in material control provide qualitative frameworks for segmenting inventory items based on criteria such as value, criticality, and movement patterns, enabling targeted prioritization without relying on complex numerical computations. These methods help organizations allocate resources efficiently by focusing intensive management efforts on the most impactful subsets of materials, thereby reducing waste and enhancing operational responsiveness.^[5] ABC analysis, a foundational classification technique, divides inventory into three categories—A, B, and C—according to the annual consumption value of items. Category A encompasses high-value items, typically comprising 10-20% of the total inventory but accounting for 70-80% of the overall value, which necessitates tight controls such as frequent monitoring and secure storage to minimize risks of loss or stockouts. Category B includes medium-value items, representing about 30% of inventory and 15-25% of value, requiring moderate controls like periodic reviews. Category C covers low-value, high-volume items, often 50-60% of inventory contributing just 5-10% of value, allowing for loose controls to avoid overburdening administrative resources. To implement ABC analysis, organizations first compile a list of all inventory items, calculate the annual usage value for each by multiplying unit cost by annual demand, rank them in descending order, and assign categories based on cumulative value percentages, often using the 80/20 Pareto principle as a guide. This approach benefits resource allocation by directing 80% of management efforts toward the vital A items, optimizing costs and improving inventory turnover.^[56]^[5]^[57] VED analysis classifies materials based on their operational criticality, particularly useful in sectors like healthcare and maintenance where item availability directly affects functionality. Items are grouped as Vital (V), those essential for core operations whose absence could halt production or endanger safety; Essential (E), necessary items that support efficiency but whose shortage causes moderate disruptions; and Desirable (D), non-urgent items that enhance performance without immediate consequences if unavailable. In healthcare settings, for instance, vital drugs or spare parts for life-support equipment fall into the V category, demanding high stock levels and rapid replenishment, while desirable administrative supplies are managed more flexibly. This classification ensures that critical materials receive priority in procurement and storage, safeguarding against operational failures in resource-constrained environments.^[58]^[59] FSN analysis categorizes inventory by movement speed to address obsolescence and capital tie-up risks, identifying Fast-moving (F) items with high turnover that require streamlined replenishment; Slow-moving (S) items with moderate demand that may need promotional strategies or reduced ordering frequencies; and Non-moving (N) items that remain unsold or unused for extended periods, signaling potential obsolescence and prompting disposal or write-off actions. Proportions vary by inventory, but often F represents 10-20% of items with rapid consumption, S 20-35% with slower rates, and N 60-70% with negligible movement, allowing managers to adjust storage space and review cycles accordingly. By highlighting non-moving stock early, FSN analysis prevents accumulation of dead inventory, freeing up capital for more productive uses.^[57]^[60] In manufacturing applications, these classification systems guide auditing frequency and storage priorities by tailoring controls to item profiles; for example, A or Vital items from ABC and VED analyses undergo monthly audits and placement in secure, climate-controlled zones, while C or Desirable items receive annual checks and bulk storage in less accessible areas, and FSN's Non-moving items trigger immediate reviews to mitigate obsolescence. Such segmentation enhances overall efficiency, as seen in pharmaceutical production where combined ABC-VED-FSN matrices prioritize high-value vital fast-movers for just-in-time delivery, helping to reduce holding costs in targeted inventories. These qualitative methods can integrate briefly with quantitative models for hybrid prioritization, though their standalone value lies in simplicity and adaptability.^[61]^[57]

Quantitative Models

Quantitative models in material control provide mathematical frameworks for optimizing inventory decisions, particularly in determining ideal order quantities and replenishment timings to minimize costs while meeting demand. The Economic Order Quantity (EOQ) model, first introduced by Ford W. Harris in 1913, calculates the optimal order size that balances ordering costs against holding costs. The model derives from the total inventory cost function, where total cost TC = \frac{DS}{Q} + \frac{QH}{2}, with D as annual demand, S as ordering cost per order, Q as order quantity, and H as holding cost per unit per year; minimizing this via calculus yields the EOQ formula:

EOQ = \sqrt{\frac{2DS}{H}}

This derivation assumes constant and known demand, instantaneous replenishment, no quantity discounts, constant costs, and no stockouts allowed, which limits its applicability in dynamic environments with variable demand or lead times.^[62] The Reorder Point (ROP) model complements EOQ by specifying when to place an order, calculated as the demand during lead time plus safety stock: ROP = d \times L + SS, where d is average daily demand and L is lead time in days.^[63] Without safety stock, the basic ROP is ROP = d \times L, ensuring inventory arrives just as stock depletes under deterministic conditions. Adjustments for safety stock account for uncertainties, preventing shortages during lead time variability. Safety stock serves as a buffer against demand and supply fluctuations, with the basic formula SS = Z \times \sigma \times \sqrt{L}, where Z is the service level factor (e.g., 1.65 for 95% service level from standard normal distribution), \sigma is the standard deviation of daily demand, and \sqrt{L} scales for lead time duration.^[44] This model assumes normally distributed demand variability and constant lead time, aiming to achieve a target fill rate while controlling excess inventory costs. The purpose is to mitigate stockout risks, typically targeting 95-99% service levels in practice. In retail applications, such as managing seasonal goods like wireless earbuds, these models demonstrate tangible benefits; for instance, with annual demand of 12,000 units, ordering cost of $150 per order, and holding cost of $4 per unit, the EOQ approximates 949 units, reducing orders from 26 to 13 annually and yielding $1,050 in cost savings (a 21.4% reduction in total ordering and holding costs).^[64] For seasonal demand, EOQ and ROP with adjusted safety stock help prioritize bulk ordering before peaks, though parameters like D and \sigma require periodic recalibration to capture variability. These quantitative approaches can be applied alongside ABC classification to focus efforts on high-value items.^[65]

Technological Tools

Enterprise Resource Planning (ERP) systems serve as foundational technological tools in material control, integrating processes from procurement to distribution for seamless tracking. Systems like SAP and Oracle provide modular functionalities that unify materials management with other business operations, enabling real-time data entry and standardized workflows across the supply chain.^[66] For instance, SAP ERP facilitates end-to-end visibility in sales, distribution, and production modules, allowing organizations to monitor material flows and adjust inventories dynamically. Similarly, Oracle ERP integrates procurement and logistics transactions, offering dashboards that display stock levels and predict potential shortages through consolidated reporting.^[67] These features reduce inventory discrepancies and enhance decision-making by providing an enterprise-wide view of material status.^[68] Inventory management software complements ERP by focusing on operational precision in tracking and automation. Tools such as Fishbowl and NetSuite support barcode scanning for rapid data capture during receiving and shipping, minimizing errors in stock records.^[69] RFID integration in these platforms enables automated counting and location tracking, allowing for hands-free inventory audits that update records in real time without manual intervention.^[70] Additionally, AI-driven predictive analytics within NetSuite and Fishbowl analyze historical data to forecast stock needs, optimizing reorder quantities and reducing overstock risks.^[71] These capabilities ensure accurate material allocation and support multi-location visibility, particularly in dynamic environments like manufacturing and retail.^[72] Cloud-based supply chain platforms have seen accelerated adoption since 2020, driven by the need for resilient, remote-accessible systems amid global disruptions. These platforms offer supplier portals that facilitate collaborative planning and order fulfillment, enabling real-time communication and document sharing across partners. Blockchain technology integrated into such platforms enhances traceability by creating immutable records of material movements, from origin to delivery, which verifies authenticity and compliance.^[73] Post-2020, adoption spiked due to applications in crisis response, such as tracking essential goods, with the blockchain supply chain traceability market having grown at approximately 48% CAGR from 2020 to 2025.^[74]^[75] This technology fosters trust in global networks by preventing fraud and enabling quick audits.^[76] Emerging technologies further advance material control through proactive monitoring and intelligence. IoT sensors deployed in storage facilities provide continuous environmental oversight, such as temperature alerts that notify managers of deviations to prevent spoilage in sensitive materials like pharmaceuticals or perishables.^[77] These wireless devices transmit data to central systems for automated responses, ensuring compliance with storage standards and reducing waste.^[78] By 2025, machine learning algorithms embedded in inventory tools refine demand prediction by processing vast datasets on sales patterns and external factors, achieving up to 50% reductions in forecast errors compared to traditional methods.^[79] Such integrations briefly apply quantitative models for scenario simulations, enhancing overall material flow efficiency without altering core mathematical frameworks.^[80]

Implementation and Best Practices

Steps for Implementation

Implementing material control in an organization follows a structured sequential process to ensure efficient regulation of materials from procurement to usage. This process typically encompasses four key phases: assessment, planning, execution, and monitoring, each building on the previous to minimize costs, prevent stockouts, and optimize resource utilization.^[81]^[82] The assessment phase begins with a comprehensive audit of existing systems to evaluate procurement and inventory processes. This involves reviewing historical data, sales trends, and physical stock counts to identify gaps, such as discrepancies between recorded and actual inventory levels or inefficiencies in material flow. Data analysis techniques, including demand forecasting based on past consumption patterns and market conditions, help pinpoint areas for improvement, ensuring the foundation for effective control is data-driven.^[82]^[83] In the planning phase, clear objectives aligned with organizational goals are established, such as reducing holding costs or improving material availability. Key performance indicators (KPIs) are defined to measure success, for example, achieving an inventory turnover ratio in line with industry benchmarks (typically 5 to 10 for manufacturing) to indicate efficient stock utilization without excess accumulation. Cross-functional teams, comprising members from procurement, production, and logistics departments, are formed to collaborate on strategy development and ensure buy-in across units.^[82]^[84]^[81] The execution phase focuses on rolling out operational policies tailored to the organization's needs. Policies for material classification, such as ABC analysis to prioritize high-value items, are implemented alongside standardized ordering procedures using reorder points and real-time tracking mechanisms to monitor stock levels. Staff training on these procedures is essential to foster adherence and minimize errors in handling materials. Technological tools may be briefly referenced here to automate tracking during rollout, enhancing accuracy without disrupting workflows.^[82]^[5] Finally, the monitoring phase establishes ongoing audit cycles and performance reviews to verify adherence and effectiveness. Regular cycle counts and physical inventories are conducted to reconcile records with actual stock, while KPI tracking through dashboards allows for timely adjustments. Performance reviews, held periodically by cross-functional teams, ensure continuous alignment with objectives and sustained improvements in material control.^[82]^[81]

Integration with Enterprise Systems

Material control systems integrate seamlessly with enterprise resource planning (ERP) platforms to ensure cohesive operations across organizational functions. In ERP environments, material management modules map directly to finance components for precise cost tracking, including purchase, storage, and handling expenses, while enabling real-time updates for budgeting and forecasting.^[85] Similarly, these modules connect with production scheduling tools by capturing sales and demand data to align procurement with manufacturing timelines, fostering data synchronization that prevents information silos and supports accurate inventory planning.^[85] Synergy with supply chain management (SCM) software further enhances material control by linking internal systems to external supplier networks, automating reordering processes through low-code workflows and AI-driven agents that trigger purchases based on predefined thresholds.^[86] This integration provides end-to-end visibility across the supply chain, from raw material sourcing to delivery, allowing organizations to monitor material flows in real time and respond to disruptions efficiently.^[86] Customization of material control systems is essential for industry-specific demands, particularly in sectors like automotive manufacturing where just-in-time (JIT) principles minimize inventory holding costs by synchronizing deliveries with production schedules. For instance, automakers adapt ERP and SCM tools to incorporate precise demand forecasting and real-time tracking technologies, ensuring parts arrive exactly when needed to reduce waste and improve responsiveness to market shifts.^[87] A prominent case is Toyota's integration of ERP with its Kanban system within the Toyota Production System (TPS), where customized ERP modules enhance JIT by providing real-time data visibility and control, blending lean principles to cut delivery times and inventory levels while handling global supply chain complexities.^[88] Integrated enterprise systems also facilitate automated dashboards for monitoring key performance indicators (KPIs) in material control, offering real-time insights into operational efficiency. Critical metrics include fill rates, which measure the percentage of orders fulfilled completely and on time—targeting around 90%—and variance analysis, assessing discrepancies between forecasted and actual demand to optimize stock levels and minimize overstock or shortages.^[89] These dashboards, embedded in ERP and SCM platforms, enable proactive variance resolution and performance tracking without manual intervention.^[89]

Challenges and Solutions

Common Challenges

Supply chain disruptions represent a significant challenge in material control, particularly as exemplified by the 2020-2022 COVID-19 pandemic, which led to widespread delays, shortages, and heightened logistical risks across global networks.^[90] These events amplified lead time variability, with studies showing that increased variability directly contributes to higher inventory costs, more frequent stockouts, and prolonged product delivery delays.^[91] In manufacturing contexts, such disruptions have extended lead times and induced labor shortages, further complicating the synchronization of material flows.^[92] Forecasting inaccuracies pose another prevalent issue, stemming from volatile demand fluctuations that hinder precise prediction of material needs. In retail sectors like fashion, these inaccuracies result in overstock, where unsold merchandise comprises 17-20% of total inventory, tying up capital and increasing holding costs.^[93] Conversely, under-forecasting leads to stockouts, which erode sales and customer loyalty, with average revenue losses reaching 4% of annual sales and inventory distortions costing retailers up to 7.2% of total sales globally.^[94]^[95] Data silos and inaccuracies in tracking exacerbate material control difficulties, often arising from manual processes that introduce errors and create inconsistencies between physical stock and recorded data. Common causes include data entry mistakes and inconsistent measurement units, leading to discrepancies that undermine inventory visibility and decision-making.^[96] Such silos fragment information across departments, resulting in unreliable physical counts that mismatch system records and amplify broader operational risks.^[97] Cost pressures from rising raw material prices, fueled by inflation throughout the 2020s, further strain material control budgets without yielding proportional efficiency gains. Material costs have surged, remaining approximately 39% higher than February 2020 levels, which elevates procurement expenses and squeezes margins in supply-dependent industries.^[98] These inflationary dynamics, compounded by supply constraints, intensify budgetary challenges in maintaining adequate material availability.^[99] These issues are often intensified by poor integration with enterprise systems, limiting real-time data sharing.

Mitigation Strategies

To enhance resilience against disruptions in material control, organizations increasingly adopt multi-sourcing strategies, distributing procurement across multiple suppliers from diverse geographic regions to avoid over-reliance on single sources. This approach, exemplified by the post-COVID "China +1" model where companies secure at least one non-Chinese supplier, mitigates risks from geopolitical tensions and supply interruptions while fostering competition that can lower costs.^[100] Building buffer stocks of critical materials further bolsters this resilience by providing a safety net during shortages, as seen in dual-sourcing initiatives that distribute demand across contract manufacturers for uninterrupted supply.^[101] Contingency planning complements these measures through scenario-based simulations and backup supplier agreements, enabling rapid response to events like pandemics or trade disruptions.^[19] Advanced forecasting techniques leverage artificial intelligence (AI) to analyze vast datasets from suppliers, logistics, and market signals, significantly improving prediction accuracy in material demand. AI-driven models can reduce forecasting errors by 20-50%, allowing for more precise inventory adjustments and minimizing overstock or shortages.^[102] Collaborative planning with supply chain partners enhances this by integrating shared data into AI systems, such as early-warning tools that monitor external factors like weather or social media trends for proactive adjustments.^[103] Process standardization mitigates data inaccuracies in material control through regular audits that verify inventory records against physical counts, ensuring alignment and compliance. Automation tools, including RFID and barcode systems, eliminate manual entry errors by enabling real-time tracking and automated reconciliation, which can improve overall accuracy.^[104] Comprehensive training programs for staff reinforce these standards by providing hands-on instruction in process documentation and tool usage, fostering consistent adherence and reducing variability in operations.^[105] Cost optimization in material control involves periodic supplier reviews to evaluate performance and negotiate better terms, often yielding targeted reductions through collaborative improvements. Waste reduction initiatives rooted in lean practices, such as minimizing scrap and excess inventory, typically achieve 5-15% savings in material costs while enhancing delivery efficiency.^[106]

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Inventory Management Techniques And Their Benefits
Oct 23, 2024 · Recent data shows that businesses using effective inventory management systems can reduce inventory costs by up to 30%. This highlights the ...Missing: 20-30% | Show results with:20-30%
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7 Strategies to Reduce Inventory Without Stockouts - Arda Cards
Inventory reduction can free up massive capital: Companies typically have 20-30% of working capital tied up in inventory, with carrying costs reaching up to 30% ...Missing: control | Show results with:control
[9]
The Top 10 Supply Chain Risks of 2025 and How to Mitigate Them
Sep 3, 2025 · Mitigating supply chain risks requires diversifying suppliers, refining inventory management strategies, using scenario planning, and ...
[10]
Just-in-Time (JIT): Definition, Example, Pros, and Cons - Investopedia
JIT production systems cut inventory costs because manufacturers receive materials and parts as needed for production and do not have to pay storage costs.
[11]
Achieving a just–in–time supply chain - ScienceDirect.com
A JIT supply chain brings a myriad of advantages to firms including reduced costs, lowered inventory, improved product quality, shortened lead time, increased ...
[12]
6 Best Practices for Obsolescence Management
Obsolescence management is about mitigating the risks associated with end-of-life and discontinued products, parts, or technologies. The concept is relevant ...Missing: control preventing
[13]
Risk Management in ISO Standards: More Than Compliance, It's a ...
Apr 2, 2025 · ISO certification isn't just about compliance—it's a strategic investment that helps businesses manage risks, improve efficiency, and stay ahead ...
[14]
Environmental Benefits of Lean Methods | US EPA
Aug 1, 2025 · less in-process and post-process inventory needed; avoids potential waste from damaged, spoiled, or deteriorated products; frequent inventory ...
[15]
How to Reduce Manufacturing Waste: 24 Strategies - NetSuite
Oct 31, 2024 · ... materials (when discarded as off-specification), production (scraps on the factory floor), inventory (expired and spoiled), packaging (too much ...
[16]
How COVID-19 impacted supply chains and what comes next - EY
The pandemic posed major challenges for global supply chains, halting the flow of materials and exposing vulnerabilities such as staff shortages. Read more
[17]
Global Supply Chains in a Post-Pandemic World
Temporary trade restrictions and shortages of pharmaceuticals, critical medical supplies, and other products highlighted their weaknesses. Those developments, ...
[18]
Assembly Line Revolution | Articles - Ford Motor Company
Sep 3, 2020 · Discover the 1913 breakthrough: Ford's assembly line reduces costs, increases wages and puts cars in reach of the masses.
[19]
[PDF] Frederick Winslow Taylor, The Principles of Scientific Management
That our experiments indicated the existence of the following law: that a first-class laborer, suited to such work as handling pig iron, could be under load ...Missing: material 1900s-
[20]
[PDF] Production and Inventory Control at the General Motors Corporation ...
This paper studies the development and implementation of production control methods at the General Motors Corporation (GM) during the 1920s and. 1930s.1 ...
[21]
Ford Whitman Harris and the Economic Order Quantity Model
Ford Whitman Harris first presented the familiar economic order quantity (EOQ) model in a paper published in 1913. Even though Harris's original paper was ...Missing: quantitative | Show results with:quantitative
[22]
The early road to material requirements planning - Mabert - 2007
May 24, 2006 · Dr. Joe Orlicky while at J.I. Case in the early 1960s is generally credited as being the “father” of time-phased replenishment planning and ...
[23]
Material requirements planning; the new way of life in production ...
Apr 29, 2010 · Material requirements planning; the new way of life in production and inventory management. by: Orlicky, Joseph. Publication date: 1975. Topics ...
[24]
[PDF] The evolution of manufacturing planning and control systems
In the mid-1970s manufacturing resource planning gradually began to replace MRP as the primary manu- facturing control system of choice. MRP-II systems built on ...
[25]
Toyota Production System | Vision & Philosophy | Company
TPS has evolved through many years of trial and error to improve efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder of ...
[26]
Part1 Chapter2 Section4 | Item 5. The Origins of Just-in-Time
Kiichiro Toyoda proposed Just-in-Time production when operations began at the Koromo Plant. This was the beginning of Just-in-Time used in the current Toyota ...
[27]
SAP History | About SAP
In 1972, five entrepreneurs had a vision for the business potential of technology. SAP established the global standard for enterprise resource planning ...Sap: A 50-Year History Of... · Overview Of Our History · The Early Years
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Managing Supply and Value Chains in a New Era of Global Trade
Apr 30, 2025 · In the post-Cold War era, geopolitically, traditional great power rivalries took a backseat. Instead, the defining event of this period was ...
[29]
[PDF] Leveraging AI, IoT, and Automation for Real-Time Inventory Manage
Apr 22, 2025 · AI, IoT, and automation improve inventory count accuracy, efficiency, real-time tracking, and reduce manual adjustments, minimizing costs and ...Missing: 2000s 2020s
[30]
COVID-19: The Impact on Supply Chains | Lehigh University News
Apr 27, 2020 · Other Black Swan events include 9/11 (reduced demand), the 2008 financial crisis (reduced demand) and the 2011 Japanese Tsunami (reduced supply) ...
[31]
Resilience versus robustness in global value chains: Some policy ...
Jun 18, 2020 · No current evidence that complex supply chains are more impacted by COVID-19. Numerous statements have been made about complex value chains ...
[32]
Blockchain technology in supply chain management: Innovations ...
Blockchain enhances security, transparency, and efficiency in supply chains, improving traceability, and addressing issues like counterfeiting and supplier ...
[33]
Supplier Selection Criteria — The Ultimate Guide
1. Price and Cost · 2. Capabilities · 3. Services and Financial Stability · 4. Convenience · 5. Ethical and Social Responsibility · 6. Risks.
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Vendor & Supplier Selection Process: Criteria & Best Practices
Sep 12, 2023 · Supplier selection involves evaluating aspects such as Price, Supplier quality management, reliability, and service will influence your decision.
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Purchase Orders Explained: Types, Process, & Technology - Ivalua
Aug 14, 2025 · 1) Purchase Requisition (PR) · 2) Purchase Order Creation (Req to PO) · 3) Approval · 4) Dispatch PO to Supplier · 5) Receipt & Inspection · 6) ...What Are The Different Steps... · Benefits of a Digital Purchase...
[36]
The Complete Guide to Purchase Order Process (2024) - Kissflow
Rating 4.3 (532) The purchase order process consists of several compliance checkpoints and approval/input tasks to ensure timely PO processing.
[37]
Guide to Inbound and Outbound Logistics: Processes, Differences ...
Sep 7, 2023 · Inbound logistics includes steps like purchasing and sourcing, recording and receipts, notification, load arrival, receiving, and reverse ...
[38]
Understanding Inbound Logistics: A Complete Overview - ControlHub
Dec 31, 2024 · Receiving and inspection. Once the goods have arrived at your door, you'll need to perform a detailed inspection to verify that the shipment ...
[39]
Strategies to Control and Reduce Procurement Costs - INSIA
Oct 8, 2024 · Explore strategies to control procurement costs, including automation, evaluating transportation, and leveraging advanced analytical tools.
[40]
Top 10: Procurement Risks
Apr 17, 2024 · Poor quality products or services can lead to defects, rework, customer dissatisfaction, and even product recalls, damaging brand reputation and ...
[41]
[PDF] Understanding safety stock and mastering its equations - MIT
Stockouts stem from factors such as fluctuating customer demand, forecast inaccuracy, and variability in lead times for raw materials or manufacturing. Some ...
[42]
Module 5 Notes: Inventory Management
Reorder Point = Mean Lead Time Demand + Safety Stock Reorder Point = 64 + (Z Score times Std DevLead Time Demand). From Table 5.1.2, we can compute the ...
[43]
[PDF] Best Practices in Achieving Consistent, Accurate Physical Counts of ...
A perpetual inventory system maintains current item balances by recording receipts and shipments. In contrast, a periodic inventory system tracks receipts and ...
[44]
Supply Chain Demand Forecasting | www.dau.edu
Trend projection - Trend projection demand forecasts use historical data, including growth patterns, to create a sales forecast.
[45]
[PDF] Forecast-Driven Inventory Management for the Fast-Moving ...
This thesis investigates applying actual historical demand data and machine learning techniques to design a forecasting-based inventory control strategy. The ...Missing: projections | Show results with:projections
[46]
The Monthly Metric: EBITDA - ISM
Sep 24, 2024 · However, right-sizing may incur direct costs from addressing slow-moving or obsolete inventory, such as disposal, discounting, repackaging or ...
[47]
Desperate for profits, retailers reinvent inventory strategies
Mar 6, 2018 · Some retailers may boast entering 2018 with a lower inventory count, but often this is a result of liquidating slow-selling inventory, closing ...
[48]
[PDF] Warehouse & Distribution Science
The topic of this book is the science of warehouse layout and operations. We say “sci- ence” because we develop mathematical and computer models.
[49]
[PDF] Effective inventory management for small manufacturing clients
When inventory is counted, in either a complete physical or cycle count, the quantities on hand should be promptly reconciled to the perpetual records.<|control11|><|separator|>
[50]
[PDF] Reverse Logistics Strategies and Their Implementations
Reverse logistics is a complicated process that requires detailed planning in terms of continual audit of returns, determining the best disposition of products ...Missing: repurposing | Show results with:repurposing
[51]
ABC Inventory Analysis & Management | NetSuite
Sep 5, 2023 · ABC analysis is an inventory management technique that determines the value of inventory items based on their importance to the business.
[52]
ABC Analysis: Definition, Importance, and Implementation
Mar 6, 2025 · ABC analysis is a strategic approach within inventory management that sorts inventory items into three distinct categories based on their value and sales ...
[53]
(PDF) An Inventory Control using ABC Analysis and FSN Analysis
Oct 2, 2020 · It shows the level of importance of the items and the control level placed on the SKUs, where the level of importance is measured through ...
[54]
ABC and VED Analysis in Medical Stores Inventory Control - PMC
The basic principle of inventory control is ABC based on cost criteria and VED on criticality. Based on ABC-VED matrix, economic analysis of drug ...
[55]
ABC and VED Analysis in Medical Stores Inventory Control
VED analysis is based on the criticality of an item. “V” is for vital items without which a hospital cannot function, “E” for essential items without which an ...
[56]
What is Fast, Slow, Non-Moving (FSN) Inventory Analysis? - ShipBob
Jul 28, 2025 · FSN analysis refers to an inventory management technique which divides goods into three categories – fast-moving, slow-moving, and non-moving.Missing: obsolescence | Show results with:obsolescence
[57]
How is Information from ABC–VED–FNS Matrix Analysis Used to ...
Jun 24, 2021 · The ABC–VED–FNS matrix analysis can help organization implement inventory control policies and techniques, narrow down a group of items that require more ...
[58]
[PDF] Ford Whitman Harris's Economical Lot Size Model
Sep 1, 2014 · Here we celebrate the centennial of Ford Whitman Harris's model for determining economical lot sizes, which was published in the A. W. Shaw.Missing: quantitative | Show results with:quantitative
[59]
[PDF] Inventory Management and Reorder Point (ROP) Strategy Using ...
To control inventory there is two production system related to this i.e make to stock and make to order. The research conducted by Jan Olhager and Daniel I.
[60]
Understanding Economic Order Quantity (EOQ) in Inventory ...
Result: The company saves $1,050 annually (21.4% reduction in costs) by implementing EOQ. ... EOQ can lead to substantial cost savings and operational ...
[61]
[PDF] Analysis of an Economic Order Quantity and Reorder Point Inventory ...
The focus of this article was to apply the EOQ model to small business in order to calculate the order quantity in dollar amount for each vendor. William Bassin ...Missing: paper | Show results with:paper
[62]
[PDF] ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM SELECTION
ERP systems group business processes into modules such as accounting and finance, sales and distribution, human resources, production and materials management.
[63]
Difference Comparison of SAP, Oracle, and Microsoft Solutions ...
This thesis contains a comparison of different ERP cloud systems. This paper is a technical survey, which will give an overview of three main Cloud-ERP service ...
[64]
[PDF] ERP Overview
ERP is an integrated system providing an enterprise-wide view of information, enabling data entry only once, and standardizing business processes.Missing: features | Show results with:features
[65]
#1 Inventory Management Software for QuickBooks and Xero
Fishbowl's inventory management and manufacturing systems that automate your business and scale operations with QuickBooks and Xero integration.
[66]
Top 5 RFID Inventory Management Systems in 2025 - ConnectPOS
Jul 22, 2024 · A comprehensive RFID system helps with inventory tracking, order management, and reporting. Top 5 RFID systems: ConnectPOS, Zoho, Inciflo, ...
[67]
17 Best AI Inventory Management Software, Ranked for 2025
Oct 14, 2025 · Barcode scanning simplifies data entry and increases accuracy. The software also offers predictive analytics to anticipate inventory needs.
[68]
Best Enterprise Inventory Management Software in 2025 | Rippling
Sep 9, 2025 · NetSuite provides real-time inventory visibility across all locations and sales channels through its cloud-based ERP platform. The system ...Key Features Of Enterprise... · Best Enterprise Inventory... · 10. Cin7 OmniMissing: predictive | Show results with:predictive<|separator|>
[69]
Using blockchain to drive supply chain transparency - Deloitte
Using blockchain can improve both supply chain transparency and traceability as well as reduce administrative costs.
[70]
Blockchain for Supply Chain Traceability Market Size and Forecast ...
The global blockchain for supply chain traceability market size exceeded USD 3.55 billion in 2025 and is set to expand at a CAGR of over 31.6% from 2026 to ...
[71]
Blockchain in supply chain management: a comprehensive review ...
Sep 9, 2025 · For instance, blockchain has been successfully utilized in food supply chains to ensure traceability of products such as meat and fish, giving ...
[72]
Supply Chain Temperature Monitoring - SmartSense by Digi
SmartSense provides continuous monitoring, automated alerts, and secure, auditable records for every handoff in the cold chain. By tracking temperature, ...
[73]
https://www.deloitte.com/us/en/services/consulting/articles/blockchain-supply-chain-innovation.html
[74]
Machine Learning in Demand Planning: How to Boost Forecasting
Mar 25, 2025 · Learn how AI slashes forecast errors 50%, cuts stockouts 65% & boosts profits with machine learning in demand planning.
[75]
A Machine Learning Approach to Inventory Stockout Prediction
Jun 16, 2025 · Accurate demand forecasts enable retailers to optimise inventory levels and minimise the likelihood of stockouts (Kourentzes et. al., 2020).
[76]
4 steps to inventory management that creates value, unlocks profits
Jul 17, 2024 · Think of it as building a clear road map for your inventory journey, with each step – receiving, put away, picking, packing, staging, and ...4 Steps To Inventory... · 2. Track And Manage... · 3. Life Cycle Management
[77]
9 Inventory Management Strategies for Manufacturing | NetSuite
Dec 21, 2023 · Set minimum inventory levels. · Perform demand forecasting. · Regularly inspect inventory. · Champion cross-functional collaboration. · Establish a ...
[78]
7 Steps for Creating a Successful Inventory Action Plan - LeanDNA
Feb 28, 2025 · Analyze Current Inventory · Set Inventory Targets · Enhance Execution and Efficiency · Optimize Inventory · Enhance Supply Chain Collaboration.
[79]
What Is Material Management in ERP? How to Streamline ... - Godlan
Your materials module integrates with other modules in your ERP system to capture sales and production data and forecast future material needs. This helps your ...
[80]
Supply Chain Management (SCM) Software Solutions - SAP
Deliver customer-centric products faster with digital supply chain management (SCM) software from SAP.Supply chain planning · Logistics · SAP Business Network Supply... · Manufacturing
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https://www.cohnreznick.com/insights/4-steps-to-inventory-management-that-creates-value
[82]
Optimizing Efficiency: Toyota's Integration of ERP in JIT Production
Jan 21, 2024 · This case study carefully scrutinizes how Toyota Motor Corporation aligned its strategic plans with its renowned Just-In-Time (JIT) production methodology.
[83]
11 Most Important Inventory Management KPIs in 2025 | MRPeasy
Rating 4.6 (215) Jan 21, 2025 · Inventory management KPIs are key performance indicators specific to the storage, quantities, costs, or movements of a company's stock. Like all ...
[84]
Impacts of COVID-19 on Global Supply Chains - PMC - NIH
This article aims to investigate and analyze the impacts of the COVID-19 pandemic on GSCs and to provide insights and recommendations to develop resilience.Missing: variability | Show results with:variability
[85]
The Impact of Lead Time Variability on Supply Chain Management
Nov 19, 2024 · Findings: Findings indicate that higher lead time variability leads to increased inventory costs, stockouts, and delays in product deliveries.
[86]
A Manufacturing Industry Perspective on Pandemic-Induced Supply ...
The findings reveal that COVID-19 significantly increased risks, causing demand surges, logistical disruptions, extended lead times, and labour shortages due to ...
[87]
Assessing fast fashion overstock through time-to-peak-sales
Among fashion retailers, 44 % report excess stock,4 with unsold merchandise accounting for approximately 17–20 % of total inventory (Sarder & Lee, 2015).Missing: percentage | Show results with:percentage
[88]
Lost Sales from Stockouts: Calculating the True Cost of Running Out ...
Jun 18, 2025 · Average retail stockout rate: 8% of products · Best-in-class stockout rate: Under 3% · Average revenue loss due to stockouts: 4% of annual sales ...
[89]
Navigating Stockout Costs: A Guide for Ecommerce - Extensiv
May 31, 2024 · According to a recent report by IHL Group, inventory distortion cost retailers a staggering $1.77 trillion in 2023, equivalent to 7.2% of all ...
[90]
10 Causes of Inventory Discrepancies and How to Prevent Them
May 1, 2025 · This mismatch can be caused by a variety of reasons, including theft, spoilage, data entry errors, and even inconsistent measuring units.
[91]
The Ultimate Guide to Inventory Management (2025) - Logiwa
Inventory management is the systematic approach to sourcing, storing, and selling stock, and the operational backbone for fulfilling customer demands.
[92]
The Impact of Rising Material Costs on Construction Project Budgets
Mar 4, 2025 · Material prices -- a sizable portion of construction budgets -- remain 39 percent higher than where they were in February 2020. However, the ...
[93]
Supply Chain and Inflation: Issues and Impacts - Oracle
Dec 8, 2023 · Changes in production and transportation costs, materials availability, and consumers' buying power can exacerbate inflation in supply chains.
[94]
What strategies are ensuring supply chain resilience in a post ...
Feb 26, 2025 · Diversification of suppliers: Moving away from single-source dependencies, seeking multiple suppliers across different regions to mitigate ...
[95]
How to Mitigate and Manage Supply Chain Disruptions in Life ... - QAD
Apr 9, 2025 · This includes strategic dual sourcing and regionalization, implementing optimized inventory buffers, engaging in early supplier involvement, and ...<|separator|>
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AI-driven operations forecasting in data-light environments - McKinsey
Feb 15, 2022 · Applying AI-driven forecasting to supply chain management, for example, can reduce errors by between 20 and 50 percent—and translate into a ...
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McKinsey Global Supply Chain Leader Survey 2024
Oct 14, 2024 · They enable companies to plan more accurately, respond to disruptions more rapidly, and improve their resilience by evaluating multiple supply ...
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The Comprehensive Guide to Inventory Audits | NetSuite
Aug 31, 2022 · Inventory audits check to ensure that financial records match a company's inventory records and that those records align with a physical inventory count.History of Inventory Audits · Are Inventory Audits Required?
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Standardized Work in Lean Manufacturing. Everything to Know
Mar 27, 2024 · Implementing standardized work involves identifying processes for standardization, developing documentation, training employees, and ...
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Lean Manufacturing Costs: How to Slash Production Expenses
Jun 3, 2025 · Organizations typically achieve 5-15% material cost reductions through these efforts while improving delivery performance. Throughout ...