The most detailed material management process at the construction site

Managing materials at construction sites is an issue that construction businesses are very concerned about, because if not managed well, it will lead to excess and loss of materials, causing huge losses. In this article, 1C Vietnam will introduce the most detailed materials management processes at construction sites.

1. What is the material management process at the construction site?

The material management process at the construction site is the process of purchasing, allocating and monitoring the use of materials compared to pre-determined norms. This process includes many different activities but all aim at the common goal of using materials reasonably and effectively, avoiding excess and loss of materials.

2. Process of purchasing materials for the construction site

2.1. Material purchasing process

• When units need to use materials in construction, they need to make specific plans, calculate norms based on the project, then make a purchase request to send to the materials department or purchasing department.
• After receiving the request, the purchasing department selects and compares suppliers based on criteria such as quality, type, price, etc.
• The purchasing department then sends the evaluation and comparison of 2 to 3 different suppliers to the Material Manager and Chief Accountant for consideration.
• Purchases can be made in the form of bank transfer and cash. For orders over 20 million VND, a sales contract, order confirmation, payment request or advance payment request is required in accordance with the company's procedures.
• When goods are transferred to the company's warehouse, the warehouse keeper is responsible for checking the quality of materials, quantity, and procedures for warehousing and ex-warehousing for transportation to the construction site.

2.2 Purpose of the material purchasing process

• Buy quality guaranteed goods at the most suitable prices
• Ensure availability and continuity of goods, avoid unavailability of goods causing disruption to the construction process
• Maintain minimum project inventory levels
• Expand the quantity and quality of suppliers, thereby saving costs for the company and enhancing the quality of materials

3. Material management process at construction site warehouse

3.1. Material process at the warehouse

• The warehouse keeper is responsible for preparing necessary conditions such as warehouse conditions, warehouse cards, etc. to receive incoming orders.
• When the materials are transferred to the warehouse, the warehouse supervisor will notify the relevant departments to check and accept whether the quality of the goods is in accordance with the contract, then proceed with warehousing.
• The warehouse keeper or person in charge of the warehouse shall receive materials of sufficient quality and classify materials that do not meet the requirements.
• Then, arrange the goods in the right place (according to the warehouse diagram/ location in the warehouse/ material rack) to ensure science, convenience of use, and update data into the management system.
• Based on the construction plan, the warehouse supervisor issues the quantity of raw materials to each construction team according to the required quantity daily.
• Warehouse supervisors check warehouse quantities by day, week or month and update inventory reports
• Warehouse supervisors need to base on the minimum inventory quantity of each type of material to make a monthly, quarterly, and annual purchase plan and submit it to the Material Director for approval.

3.2. The purpose of the warehouse materials management process

• Cost savings: warehouse management ensures that businesses purchase enough raw materials to serve the construction process, minimizing the cost of storing and handling unnecessary materials.
• Increase productivity: properly managing material warehouses helps the construction process run smoothly, ensuring materials are always available, thereby avoiding wasting construction time.
• Accurate purchasing planning: good construction material warehouse management helps businesses plan accurately to avoid excess materials that disrupt the construction process.

4. Excess materials management process 

4.1. Excess materials management process

Scrap is always generated during construction. Construction teams are responsible for minimizing the amount of scrap generated and ensuring the quantity is within the company's regulations.

• The construction team will notify the materials department to collect scrap, then make a record signed by relevant parties and proceed with warehousing and management.
• The warehouse keeper is responsible for updating and monitoring the quantity of scrap
• Based on the amount of scrap inventory in the warehouse, the materials department issues the scrap inventory for the unit to the purchasing unit
• Depending on regulations, the materials warehouse keeper is responsible for preparing reports on import and export of scrap and send them to the materials director.

4.2 Purpose of the excess materials management process

This management process helps businesses collect, sell or recycle unused materials, thereby saving costs and warehouse space.

5. Using 1C:Company Management software helps optimize the material management process at the construction site

1C:Company Management general business management software, suitable for small and medium enterprises. The solution is developed on a modern technology platform, with flexible and highly customizable features to bring the most convenience to users. In particular, 1C:Company Management helps businesses automate business processes, connect departments and improve operational efficiency.

1C:Company Management software is a professional material warehouse management solution, providing full necessary and effective features:

• Automatically calculate the cost of materials: The software will automatically calculate the cost of materials based on input information, helping businesses manage budget resources and avoid losses.
• Create maximum and minimum inventory limits: Businesses can set maximum and minimum inventory levels of materials, ensuring goods are always available in warehouse, avoiding shortages.
• Monitoring the situation of export and import of warehouse: The system will regularly monitor the situation of export and import of warehouse, helping to control the number of unit prices, number of shipments and construction site locations, avoiding surplus or shortage.
• Prepare inventory reports: The report will fully record changes in the quantity of raw materials and scrap to help businesses conduct periodic inventory inventory.
• Storing supplier information: The software will fully store previous supplier information, helping businesses easily track and analyze prices and then choose the right supplier.

Above, 1C Vietnam has provided information about the material warehouse management process at the construction site, as well as introduced 1C:Company Management software to help manage warehouses effectively. Hopefully the above useful information will help the company build a construction site materials management process for their business. If your company is interested in 1C:Company Management general business management software, contact 1C Vietnam immediately for advice.