One of the most important stages of our consulting projects is analyzing customer data. The more organized and structured the data, the greater the range of possible analyzes to diagnose the company's real situation so that we can recommend the most appropriate solutions. A type of database that is very important to be updated and well structured is the material register, as it has information that connects with several other bases, such as stock, transport, production, sales, among others.
When the registration of materials is inadequate, in addition to making analysis difficult and damaging the connection with other bases, a series of negative impacts can befall the organization, affecting its processes, finances and reputation. However, adopting good practices to maintain a clean material register can bring a series of benefits and significantly improve the company's efficiency.
Let's talk about the negative impacts of inadequate material registration on a company's processes. Firstly, errors in material data can lead to ordering errors, resulting in incorrect products or erroneous quantities being shipped to customers. This, in turn, can negatively impact customer satisfaction and the company's reputation. From a supply point of view, an inadequate material record can generate incorrect purchase orders for suppliers. This also affects the company's reputation, making future negotiations with suppliers and customers difficult. As a consequence, registration errors can cause delays in fulfilling orders and making decisions, impacting the company's logistical efficiency.
Inventory management is also affected by inadequate material registration. Lack of accurate information can lead to out-of-stock or overstock issues, resulting in lost sales or unnecessary storage costs. Furthermore, determining competitive prices becomes challenging when product prices are not correctly registered.
Delivery logistics is another area that is impacted. With inaccurate information about products, the company may face difficulties in selecting carriers, sizing packaging and routing deliveries, leading to transport delays and higher logistics costs. This can result in customer returns and complaints, damaging logistical efficiency and the company's image.
To avoid these problems and guarantee a clean material register, it is essential to adopt good data management practices. This includes data standardization, logical categorization of items and regular maintenance of the register, with updates whenever there are changes. The use of unique identification codes for each item facilitates traceability, and the integration of material registration with other systems, such as ERP, improves operational efficiency.
Furthermore, it is crucial to invest in training and awareness of employees who work with material registration. Implementing access controls helps ensure data integrity, and regular audits identify and correct errors.
Here are some good practices for maintaining a clean material register:
- Data Standardization: Standardize the way data is entered into the registry, ensuring that names, descriptions, units of measurement and codes follow a consistent format.
- Use of Unique Codes: Use unique identification codes for each material. This facilitates traceability and avoids nomenclature conflicts.
- Logical Categorization: Categorize materials in a logical and hierarchical manner. This makes it easier to search and group similar materials.
- Clear Naming Standards: Define clear and meaningful naming standards for materials. This makes it easier for employees and systems to understand what each material represents. The use of prefixes and suffixes for families and material types is an example of this.
- Regular Update: Keep the material register always up to date. Every time a new item is added, a material is discontinued, or item information changes, update the record immediately.
- Data Validation: Implement validation checks to prevent incorrect or incomplete information from being entered. For example, check that required fields are filled out correctly.
- Version Control: Maintain a revision history in the material record to track changes over time. This is useful for tracking who made changes and when.
- Systems Integration: Integrate material registration with other management systems, such as ERP and supply chain automation systems. This helps ensure that all parts of the company have access to up-to-date information.
- Access Control: Implement access controls to ensure that only authorized people can make changes to the material record.
- Training and Awareness: Provide training to employees who work with material records to ensure they understand the importance of data accuracy and consistency.
- Regular Audit: Perform regular audits of the material record to identify and correct errors, duplicates or outdated information.
- Data Flow Mapping: Understand how data flows within the company, from the entry of new products to delivery to the customer, to ensure that material registration is aligned with operational processes.
- Exception Management: Develop procedures to deal with exceptions and problems that may arise in the material registration. This helps prevent errors from spreading throughout the supply chain.
In short, inadequate material registration can have substantial impacts on a company's operations, from order errors to delivery delays and quality problems. However, by adopting good practices to maintain a clean material register, the organization can improve its operational efficiency, reduce costs, increase customer satisfaction and protect its reputation in the market. Furthermore, it facilitates analysis and making more assertive conclusions by connecting with several other company databases.
