top of page
Search

Material Moves Without a Transaction? That’s a Red Flag.

  • Writer: Tracy Mathena
    Tracy Mathena
  • Jul 27
  • 2 min read

Let me paint a scenario that’s all too familiar:


You walk into a stockroom, warehouse, or staging area and notice material missing. You check the system—still shows it as in stock. Procurement has no record of it moving. Receiving says it came in. Operations says they took it weeks ago.


Now you’re in forensic mode, trying to reverse-engineer a trail that never existed.

Sound familiar?


In supply chain, we have a saying that’s becoming more and more critical:


“Nothing should move physically until it moves digitally.”


Why It Matters (More Than Ever)


Whether you’re managing stockroom materials or warehouse inventory, the moment material moves without a record, you’ve lost control of:


  • Traceability

  • Inventory accuracy

  • Accountability

  • Replenishment signals

  • Cost visibility


And what follows? Rush orders. Duplicate buys. Frustrated teams. Blame games.

The downstream impact of one undocumented material movement can ripple across schedules, budgets, and supplier relationships.


Break the “Grab-and-Go” Mentality


Here’s the problem: in a fast-moving manufacturing environment, it’s easy to fall into a “grab-and-go” culture—especially when teams are under pressure to hit deadlines.

The intentions are good: "We just needed to keep the job moving."


But over time, this undermines the very systems designed to help the business scale.

The truth is, material control isn't about slowing down the job—it's about protecting it.


What “Good” Looks Like: A Controlled Material Movement Process


In a best-in-class materials management process, every physical move is preceded by an electronic action. That could be:


  • A transfer in the ERP

  • An issue ticket logged through a mobile app

  • A barcode scan that triggers movement tracking

  • A delivery confirmation in your operations material tool


Whatever the method, the principle is the same: If it’s not in the system, it didn’t happen.

And this applies to:


  • Receiving

  • Put away

  • Kitting

  • Delivery

  • Returns

  • Scrap/removals


Putting Controls in Place (Without Creating Bottlenecks)


This isn’t about creating red tape. It’s about designing simple, user-friendly processes that match how the work is actually done.

Here’s what I’ve seen work well:


  1. Mobile-enabled transactions: Equip teams, receivers, and warehouse staff with tablets or apps to make transactions easy and immediate.

  2. Clear responsibility and access rights: Assign who can move what—and within which system boundaries. No more “anyone can pull anything” chaos.

  3. Material request and reservation systems: Let teams request material before they show up at the stockroom. That way, it’s pulled, recorded, and reserved in advance.

  4. Daily reconciliations and reporting: Catch small variances early before they become massive investigations.


Why This Is More Than Just a Process


Material mismanagement isn't just an operational issue—it’s a cost, risk, and trust issue:


  • Finance loses visibility into job costing

  • Procurement can’t negotiate based on real demand

  • Project managers don’t trust the inventory numbers

  • Suppliers get frustrated with last-minute changes


In the end, your data is only as good as your discipline.


And discipline starts with this golden rule: Don’t touch the material until you’ve touched the system.


What’s Your Experience?


If you’ve ever had to track down a missing part, trace a rogue unit, or reorder something you swore was on the shelf, I’d love to hear how you’re managing material controls today.

 
 
 

Comments


©2023 by Balthasar Consultants. All Rights Reserved.

bottom of page