Best Raw Material Inventory Management Techniques

Jonny Parker
January 12, 2024

Businesses often focus on sourcing the cheapest raw materials and lowering operational expenses as much as possible—two aspects that require foresight into supply chain behavior. 

Raw material inventory management is at the heart of effective operations, as efficient raw materials handling is essential for maintaining profitability. It also serves as a basis for evaluating just how efficient your inventory management system is.  

Managing your raw materials inventory

Raw materials inventory consists of the total cost of goods held in inventory that have yet to be utilized in manufacturing or producing finished goods. Conversely, goods that are currently in stock and ready to use are called your pre-production inventory.  

Supply chain managers face various challenges when managing raw materials inventory, such as underbuying and overstocking. Using an inventory management software for manufacturing can help them avoid these, as well as excessive expenses.</