Material Master Data Standards

Header Detail

These details fundamentally define the material in the ERP and should provide enough information for end users to identify it as the correct material they require:

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Material Description

Each organisation will have a defined taxonomy, which is a standardised way of naming items. This is often a clear, noun‑firstdescription of the part, followed by measurement. Here is an example.  Some ERPs will have a long and a short description. When cataloguing materials, the site-specific general taxonomy should always be adhered to.

Taxonomy is important because it allows “End users” to easily search and locate the right part, it helps buyers know exactly what to order and it avoids material duplication.

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Part Number (PN)

Part numbers are a unique identification code specificto the material, ideally sourced from the manufacturer or OEM. Here are some examples. Part numbers are used to search and find the material in the system. By using the manufacturers part number, users are able to identify parts referenced byte OEM documentation and database and there is less room for error when the number is standard.  Be aware of site-specific rules, some site ERPs don’t allow special characters such as dashes or full stops in their material catalogue. If this is the case, cataloguing rules should be developed and implemented. Without these rules, there is a risk of creating ‘dirtydata’ in the ERP.

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Unit of Issue (UOI)

Unit of Issue (UOI) refers to the units relevant to the material type and how it will be issued to the end user. Examples include: each, litres, pair, metres. Using the Correct Unit of issue ensures stock levels and work order costs remain accurate.

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Material classification and criticality

Material Classification and criticality refers to Structured category codes which are typically predefined by inventory control, to help identify the materials. Each site and ERP will have their own definitions, some examples include:

• Material Group: a high-level grouping that indicates where or how the item is used: such as fixed plant parts, mobile plant parts, ground support.
• Material class: a grouping of like materials such as pipes, engines or gloves.
• Material criticality: a rating such as Production Critical, Production Related, or non-production or High, Medium or Low that indicates how important the stock is to the end user.  It is common to ensure critical materials are stored correctly and are stock taken more regularly than non-critical stock.  

Most ERPs and other Materials management software will have 2-3 mandatory fields that categorise materials. This information is critical for running reports, to provide insights that drive decision making in an organisation.

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Technical Specification

The Technical Specification section includes Helpful information such as: Dimensions,weight, material grade, et cetera.

Typically this information is not mandatory when cataloguing materials, but it providestransparency to all users, assisting with efficient dispatch, materials handling,storing, logistics, ordering and scoping of work.

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Link to Asset Data:

Most ERPs will have the ability to create a Relationship between thematerial and the asset it’s usedon.  Sometimes this can be achieved through the material master data by including Asset Type, or itmight be through a maintenance screen by creating a bill of materials or anapplication parts list.  It is bestpractice to create the relationship so that the organisation can better managetheir materials and avoid obsolete stock.

Here is acompleted example of what material header level information may typicallyinclude. Often in an ERP there will be a link, or section containing purchasingand warehousing information.

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Purchasing Information:

Purchasing information is attached or referenced in the header level details, but is its own table of master data. Usually accessed via a link or separate section on the material information page.

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Supplier Part Number

The Supplier Part Number is The number used to identify the material in the suppliers system. If The manufacturer or OEM is also the supplier, the numbers will match. If the supplier is a vendor external to the manufacturer, this number may be different as the supplier will create a unique identifier for the material in their own system. Keeping a record of the supplier number ensures the material can be identified using either number. The more supplier records captured, the more ways the material can be found in the system. The OEM number acts as the constant source of truth.

This ensures the correct part is being ordered and supplied. It’s important to understand this when creating and managing materials.

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Unit of Purchase (UOP)

This is the pack size that the supplier uses and supplies in, such as litres, each, metres, or box, sometimes accompanied by an amount. This can differ from the unit of issue as suppliers may require a minimum amount to be purchased, but the warehouse may want to distribute individual units. In this example, o-rings must be purchased in boxes of 100, but when ordered by an end user, they can be distributed individually.

Accurate unit of purchase is important To ensure the correct quantity is being purchased, with the correct pricing and freight detail.

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Purchase Price

Purchase Price is the latest approved price per unit of purchase. THis may aauto-fill during purchase order creation, it also helps Drive budgets, calculateaverage cost, and produce variance reports.

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Lead Time

Lead Time refers to the Calendar days it takes to supply the material.  Typically from the moment a purchase order is created to when it arrives at the warehouse. Accurate lead times enable visibility, provide realistic due dates on purchase orders and ensures that planners can build realistic maintenance schedules and avoid urgent freight costs.

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Supplier Information

Each vendor will have a supplier record in the ERP including their business number, Name, Address, Emails, phone numbers, and currency. This information is used to auto fill purchase orders to ensure efficient expediting and sourcing and avoid manual entry errors.

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Warehousing information

Warehousing information is attached or referenced in the header level details, but is its own table of master data. Usually accessed via a link or separate section on the material information page.

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Warehouse data

Warehouse data refers to the name of the warehouse in which the item is stored.  This is referred to as a Storage location in some ERPs. Providing this information attached to the material ensures parts are sent and received in the correct warehouse. Minimising processing time and reducing double handling.

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Bin Location

Bin Location is The location the item is physically stored in.  This is often a code defined by site standardised naming conventions. It enables warehouse personnel to locate and store parts safely and efficiently.

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Min‑Max (Re‑orderParameters)

Minimum and maximum stock levels, also known as min max levels, are the parameters setup for material reordering. These parameters are driven by operational, maintenance and financial data, to ensure the system triggers purchase orders before the stock runs out (the minimum), and no cash is tied up in piles of surplus stock (the maximum).

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Average Moving Price

Average Moving Price is the price the end users pay for the material. Calculated by the average cost of all the stock on hand for that material. This fluctuates when the procurement team can source a better deal from a new supplier.

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Stock Management Class

Stock management class is sometimes defined at the material header level, depending on the ERP. This setting is used to determine how the stock is managed. This determines if it is an owned repairable, reman, consumable or critical spares item, et cetera. Think back to the different stock types in the mining industry. These stock types may have a different way of tracking costs. This helps all users be aware of how the stock should be managed in line with the sites inventory process. This setting enables managers to run reports and get an overview on the materials management health.

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Stock Types

It is best practice to have clearly defined types of stock with inventory rules to guide the organisation. Stock types include:

Owned Stock

These parts will typically be stored in an onsite warehouse and have an approved minimum and maximum stock level for each material. The purpose of the min max levels is to ensure there is enough stock to minimise operational downtime with the minimum whilst balancing the overspend, storage space issues and obsolescence. The purpose of owned stock is to ensure required materials are on-hand to support operations. Examples include:

• Spare parts for heavy equipment such as small motors or hydraulic components
• PPE (personal protective equipment)
• Drilling consumables
• Explosives (if applicable and licensed).

Order on-demand stock

Order on Demand Stock, are items that are not kept in regular inventory but are ordered when a specific need arises, usually in response to a job requirement, or internal work order.  It’s impossible to hold every part for every situation that might arise, therefore some parts need to be ordered as they are required. These materials are not held onsite and therefore do not increase the inventory value, it may make sense to catalogue them to speed up the procurement process and to create usage history in the ERP.  "Order on Demand stock" helps control costs and avoid excessive ordering of slow-moving or rarely used items. However, it requires careful planning and communication between maintenance, procurement, and operations to avoid lead-time or shipping delays.  Examples include:

• Slow moving parts for outdated or specialised equipment
• Noncritical custom-fabricated parts
• Tools or items needed for a one-off project or shutdown

Repairable stock

Repairable Stock refers to high-value items that can be refurbished or repaired after use, instead of discarded.  The purpose of repairable materials is to Reduce cost by cycling parts through repair and reuse processes. This is a great economical decision for maintaining major components. These may be managed through “rotable” or “re-man” processes, which are explained further in the repairable items section.  Examples include:

• Drifters
• Engine blocks
• Pumps
• Hydraulic cylinders
• Gearboxes and transmissions
• Electrical control modules

Critical spares, obsolete or slow-moving stock

Critical Spares are items with long lead times or of critical importance to operations.  If this type of part were to fail on equipment, it would result in total plant failure for an extended period.  Examples include:

• Major equipment parts such as shovel booms or truck frames
• Critical IT components
• Wire Ropes

Consignment or Vendor managed stock.

Consignment Stock or Vendor Managed stock is Stock held on-site but still owned by a vendor until used. At the point of purchase from the warehouse, the stock will be purchased by the site from the supplier. The purpose of consignment stock is to reduce capital investment while ensuring part availability.  For consignment stock to be managed effectively, there needs to be robust inventory and contract management systems in place.

Obsolete or Slow-Moving Stock is Stock that’s no longer in active use or is rarely needed. Supply and maintenance need to track, review and manage write-offs or redistribution for these items.  Examples include:

• Parts for decommissioned machines
• Old specialty items no longer supported
• Parts that have been damaged and are no longer functional

These common stock types reflect the different ways parts are managed, to balance availability, cost, and operational needs. All stakeholders need to come together to determine the right stock type, min max levels, demand forecast, procurement strategies, reporting requirements and auditing of master data.  By doing so, organisations can set themselves up for success and achieve the goal of having the right parts in the right place at the right time.

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