Raw Material Management Feature on Labamu: For Inventory Management and Recipe Recording

Effective raw material management is essential for business operations, as it directly impacts production efficiency, cost control, and customer satisfaction.

You might be struggling to manage your inventory effectively. This can lead to over-ordering supplies and materials, forcing you to sell excess stock at discounted prices. On the other hand, having too little stock could mean you’re unable to fulfill customer orders.

That’s why using the Raw Material Management feature from Labamu can be a smart solution to help you manage the materials needed to run your business smoothly. Here’s the full explanation.

What Are Raw Materials?

Raw materials can be defined as unprocessed materials used to create a product. For example, the raw materials used to produce children's toys may include plastic, wood, paint, and glue. In other words, raw materials are input goods or inventory used by manufacturers to produce finished products.

In terms of production, there are two main types of raw material inventory, which are as follows:

1. Direct Materials

This refers to materials that are directly used in the production of a product or are part of the bill of materials for a finished good. For example, the direct raw materials used to make a chicken rice bowl include rice, chicken, spices, vegetables, and packaging.

2. Indirect Materials

Indirect materials refer to supplementary items required during the production process but not included in the final product itself or not listed in the product’s bill of materials.

For example, indirect raw materials for a chicken rice bowl include the stove, frying pan, other cooking utensils, disposable gloves, and cleaning supplies.

Benefits of Raw Material Inventory Management

Raw material inventory management plays a crucial role in the success and profitability of a business, especially if your business relies on a stable supply of materials to produce goods or deliver services.

With effective raw material inventory management, you ensure that the business has the necessary materials, minimizing the time spent waiting for restocks. It also helps you forecast how much material might be needed as the business grows.

Here are some key functions of effective raw material management.

1. Ensuring Uninterrupted Production

By maintaining an adequate stock of essential materials, your business can consistently meet customer demand and avoid disruptions in the production process. This allows you to fulfill orders quickly and maintain a competitive edge in the market.

2. Minimizing Stockouts and Early Orders

Both can negatively impact customer satisfaction and the overall reputation of the business by causing production stoppages. With effective raw material management, you can minimize stockouts by accurately forecasting demand and optimizing safety stock levels.

3. Reducing Risks and Uncertainties

Raw material deliveries are vulnerable to various risks and uncertainties, including natural disasters, political instability, and other unforeseen events. Using raw material inventory management can help mitigate these risks.

4. Managing Costs and Cash Flow

Raw material inventory represents a significant portion of a business's assets and capital investment. Therefore, with efficient inventory management, you can optimize costs and cash flow by minimizing storage costs, reducing excess inventory, and optimizing order quantities.

Use the Raw Material Management Feature on Labamu!

If you feel it's time to implement raw material inventory management, one of the best tools you can choose is the Labamu app, which features Raw Material Management.

With this feature, you can manage your raw material inventory, either manually or automatically, making synchronization more practical. Additionally, this feature helps you detail the raw materials needed for each product.

By using the Raw Material Management feature according to categories, you'll create a more organized storage structure. You can even record important recipes and consolidate raw material stock in one place, saving time.

Here are some of the advantages of the Raw Material Management feature on the Labamu app.

1. Management Efficiency. The raw material setup you have will become more structured, ensuring each material is used more optimally and avoiding waste.

2. Time Savings. With the interconnected system within the feature, you can save time in managing and monitoring inventory.

3. Consistency and Quality. You can create detailed recipe notes, including units and measurements within the feature. This ensures you consistently produce the best and highest-quality products for your loyal customers.

How to Manage Raw Materials

Here’s how to manage raw materials using the Raw Material Management feature on the Labamu app:

1. Go to the "Manage" menu, then select "Raw Material Management."

2. Click "+ Raw Material."

3. Enter the raw material details, such as name, photo, and price.

4. Set the category and unit for each raw material.

5. Click "Save Raw Material."

So, what are you waiting for? Start using the Raw Material Management feature from Labamu by downloading it on Google Play or the App Store, and experience the ease of managing all your raw material inventory.