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Materials

Stock does not disappear; it leaves unrecorded

Material drains quietly in three ways: it moves from one shelf to another without being recorded, it is drawn for a job without being deducted, or it breaks and nobody writes it down. All three are legitimate movements — the problem is not the movement but the missing record. The variance that surfaces months later at count time is the sum of what leaked through these three channels; but the count shows it as one line on one day, and the cause stays invisible.

Three movements, three outcomes

Internal transfer

Material moves and the system still thinks it is on the old shelf. The picker cannot find it and grabs a lookalike.

The transfer is a transaction; where the material sits is on record at all times.

Consumption

Material drawn for production or maintenance is never deducted, so the true cost of the job cannot be calculated.

Material is deducted the moment it is drawn, together with which job it went to.

Waste

Broken, spoiled, or expired goods vanish invisibly. The waste rate is unknown, so it cannot be reduced.

Waste is recorded with its reason, showing which product and which area it concentrates in.

Consumption and waste are not the same thing

Both reduce stock, but they happen for different reasons, and collapsing them into one line makes both unmanageable. Consumption is a planned draw; the question to ask is "which job did it go to". Waste is an unplanned loss; the question is "why did it happen". Recorded separately, one becomes costing data and the other becomes improvement data.

Where this matters most

  • Food and beverage

    If expired product is not recorded as waste, neither the stock nor the disposal record adds up.

  • Chemicals and hazmat

    The quantity of hazardous material consumed and the job it went to must be traceable by regulation.

  • Furniture

    Cutting and painting waste is high; unless you know where it concentrates, you cannot reduce it.

See it with your own movements

In the demo, let's set up your own material flow and walk through how transfer, consumption, and waste are recorded on the floor.

Request a Demo

Read our article on where count variance comes from