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What Value Can ERP Provide to Enterprises? - Material Substitution

Published on: 2019-05-31

When we shop in daily life, if a merchant cannot provide the product we like, the merchant often recommends a similar style of product, and the deal may be closed immediately. If not, the business opportunity may instantly slip away to another seller.


In home furnishing production, the following situations are even more common, and all of them can be solved with material substitution solutions.

1. The customer clearly specifies quality requirements or clearly specifies the brand, manufacturer, place of origin, and other details of the material;
2. Supply-related reason: the supplier cannot provide the originally planned material in time, so substitute materials need to be used.
3. Inventory clearance reason, or technical improvement reason: an older material is still usable, so the old material is used up before the new material is used, generally on the premise of not affecting product function, thereby phasing out one old material and replacing it with a new material;
4. Cost reason: the cost of substitute materials is inconsistent with the cost of the main material, so the choice of which material to use is determined according to market needs;
5. Quality reason: the quality of substitute materials is inconsistent with the quality of the main material, so the choice of which material to use is determined according to market needs;
6. Environmental protection reason: in different regions, regulatory requirements for certain materials are inconsistent, such as formaldehyde content, and so on.


Complete Material Substitution, One-Step Operation and Management

However, material substitution requires production material control. Otherwise, actual costs may get out of control and quality may not be guaranteed. It is also necessary to prevent production lines from stopping for lack of materials, or even causing customer orders to be canceled. So how can this difficult problem be effectively solved? The Soonfor Software ERP system can complete substitute material management in one step, allowing you to quickly match substitute materials and firmly grasp every order.

By setting up material substitution plans in the system, substitution relationships can be configured according to the attributes of the material itself, and more detailed substitution relationships can also be established in product BOM data, thereby forming the standard for substitute material management.


Quick Matching of Substitution Plans, Activation of Slow-Moving Inventory

During the production process, production managers only need to use the Soonfor ERP management system to comprehensively analyze the supply status of different incoming materials, the status of slow-moving materials, product process updates, and cost control requirements, and then quickly and accurately match material substitution plans. All details can be added, modified, deleted, disabled, and enabled at any time. Through multiple retrieval methods, target plan information for specific periods can be quickly obtained, making your material substitution management instantly convenient and efficient. A traditional material substitution process may require one or several days to complete statistics, review, and other procedures, but based on the Soonfor Furniture ERP system, there is no longer any need to repeatedly check inventory, ask procurement staff, or wait for technical review. One click can quickly generate a material substitution plan.

Through substitute material management in the Soonfor ERP management system, the most troublesome issue of slow-moving materials can be effectively revitalized. Many home furnishing factories, for various reasons, have some materials that have not been requisitioned for many years, but in fact many slow-moving materials can still be used as substitutes. If slow-moving materials are prioritized in substitution plans, inventory is revitalized invisibly and procurement costs are reduced.
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