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This section provides an overview for materials management systems as well as their applications and principles. Also, please take a look at the list of 19 materials management system manufacturers and their company rankings. Here are the top-ranked materials management system companies as of December, 2024: 1.SAP, 2.Plex, by Rockwell Automation, 3.Rootstock Software.
Table of Contents
A materials management system, also known as BOM (bill of material) system, is a system that not only manages parts but also manages the bill of materials used to manufacture and manage products, and provides appropriate information related to the parts to various departments.
Depending on the management method, there are two main types of materials management system: integrated materials management system and application-specific materials management system. An integrated materials management system has the advantage that it is less likely to cause discrepancies between departments, since the bill of materials is managed centrally across departments.
However, the disadvantage is that the usage of the bill of materials generally differs from one department to another, making it difficult for certain departments to utilize the system in some cases. On the other hand, materials management system by application have the advantage that the system can be easily utilized in each department because the BOM is created and managed specifically for a particular department. However, since the system does not use a unified bill of materials among departments, there is a risk of inconsistency among departments.
The main use of materials management system is to manage a bill of materials, inventory status of parts, warehousing history, and ordering status in real time. By centralizing information previously managed on paper or in other systems, materials management system enables efficient management of parts.
BOM is an important document used in various departments, such as design, production, and purchasing. Although the same bill of materials should normally be used across departments, in practice, different departments often use different bills of materials for their own management, resulting in issues such as design changes in one department not being reflected in another department's bill of materials.
In recent years, manufacturing processes have become more complex, and the use of BOMs across multiple departments has increased, so efficient management of parts and BOMs is required. In many cases, parts and bills of materials are managed electronically in Excel and other formats. However, general electronic management has left problems, such as input errors (e.g., double entry) and design changes that are not reflected.
With the introduction of materials management system, changes to the BOM can be made in real time and can be easily shared by other departments.
Typical functions of a materials management system are as follows:
A materials management system can manage BOMs, which has the advantage of clarifying the location and contents of BOMs, and preventing inconsistencies between BOMs when multiple BOMs are used. In addition, existing BOMs can be easily referenced when creating new BOMs.
When design changes are made, the BOM can be automatically updated based on the details of the changes. This facilitates information sharing among departments and unification of BOM content, especially when changes are managed across multiple departments or when the changes affect multiple BOMs.
An actual materials management system can be used to manage actual parts. By linking parts to processes, it is possible to estimate in advance which process each part will be used in, whether parts are in surplus or shortage, and the construction period until completion.
Products can also be managed. By linking products to their respective bills of materials and drawings, it is possible to check parts and drawings by product name.
The functions required will vary depending on how the BOM is managed. Selecting a materials management system after clarifying in advance which functions are important to you will make it easier to implement the system.
Since the way to manage the bill of materials varies from company to company, it is necessary to confirm in advance whether the materials management system has the necessary functions before selecting a system. For example, there are functions such as automatic ordering, inventory control, and warehouse management, etc. It is important to review from the business process point of view which system will be used for the business and which functions will be linked with other systems.
Materials management systems are often handled not only by personnel familiar with the business but also by temporary workers and young employees in some companies. Therefore, we check whether the system has a simple user interface that can be operated smoothly and whether it is accompanied by intuitive operability.
*Including some distributors, etc.
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Plex, by Rockwell Automation was launched in 2021 in Troy, Michigan, and is a manufacturer of software for industries such as precision metal forming, industrial manufacturing, and food & beverage. The company offers manufacturing execution systems (MES), enterprise resource planning (ERP), and quality management system (QMS) solutions. The products help brands to connect, track, and automate tedious manufacturing processes. Its client list includes Wisconsin Metal Tech, J.J Fredericks AERO LLC, and Olde Thompson.
Rootstock Software, established in 2008 and based in San Ramon, California, United States, is a manufacturer and supplier of cloud-based enterprise resource planning (ERP) solutions. The company's product range includes CRM & ERP, engineering, financials, inventory, and production. These products assist in business operations, order management, manufacturing operations, supply chain management, and financial management. The company serves industries such as discrete manufacturing, high-tech and electronics, and medical device manufacturers. Its key services include planning and production, SaaS deployment, supply chain applications, and integration with the Salesforce platform.
SolidWorks Corporation, headquartered in the United States, is a software supplier company specializing in 3D computer-aided design (CAD) solutions since 1993. The company has become a major provider of cutting-edge design and engineering software for various industries, including manufacturing, automotive, and aerospace. Their flagship product, SolidWorks CAD software, empowers engineers and designers to bring their ideas to life with precision and efficiency. Their solution portfolio unites the customer's entire ecosystem, allowing them to connect the people, applications, and real-time data from every aspect of their business for improved productivity, increased collaboration, and accelerated innovation.
TMA Systems, founded in 1988 and headquartered in Tulsa, Oklahoma, United States, is a supplier of software solutions for maintaining and managing facilities. The company's software solutions are designed for organizations that want to manage their assets and optimize their maintenance operations. Its core product, WebTMA, is popular among facility professionals worldwide and meets the needs of organizations in industries such as healthcare, education, telecommunications, manufacturing, and retail. The company also offers implementation, training, consulting, and technical support services.
Hexagon AB was established in 1992 in Stockholm, Sweden as a manufacturer, designer, and marketer of digital reality solutions and autonomous technologies. The company offers various products, such as, digital quality inspection, Jovix, LuciadCPillar, REcreate, among others. The solutions offered by the company enhance productivity, efficiency, quality, and safety in various sectors, including manufacturing, infrastructure, industrial, public sector, and mobility applications. It also offers geographic information system (GIS) software for creating 3D models and maps, as well as sensors for satellite location and data collection from the air and ground.
Dassault Systemes, a technology company established in 1981 in France, is a supplier of the 3DEXPERIENCE (3DX) business and innovation platform and virtual software solutions. The company’s SaaS provides individuals, commercial, industrial, and research organizations with a real-time visualization of their business activity and ecosystem. Dassault Systems' core business is the provision of 3D design software, 3D digital mockups, and product lifecycle management. The 3DX cloud-based platform is available with options that include computer-aided design, project management solutions, and three-dimensional rendering. Dassault Systemes' software is used in the architecture, consumer products, lifestyle, and industrial equipment markets, among many others.
FineTek Co., Ltd, established in 1979 and headquartered in New Taipei City, is an ATEX & IECEX and TAF/ilac-MRA certified manufacturer and supplier of process automation and flow measurement solutions. The company's product portfolio includes Level Transmitters, Flow Measurement devices, Pressure instruments, and Temperature sensors. These products are utilized for monitoring and controlling process conditions, ensuring safety in industrial environments, and optimizing resource allocation. They are adopted by industries such as Water Treatment, Maritime, Steel, Power, and Construction. Additionally, the company offers services in wireless technology integration, pneumatic, and product solutions.
Material Management Software, established in 1986 and based in Austin, Texas, United States, is a manufacturer and supplier of software solutions for procurement and management. The company's product range includes PONGS, receiving buddy, stock pile, power order, and power purchase. These products simplify manual procurement processes, especially in the construction industry. It serves sectors like construction, electrical, energy, and technology. The company also offers services such as software development, consultancy, support, and management.
Finale Inventory, established in 2009, is a US-based business services supplier specializing in cloud-based inventory management solutions. The company offers a diverse range of inventory management software including warehouse management, order management, eCommerce tools, and more. These tools cater to businesses of all sizes, helping them in the management of inventory, streamlining operations, and creating efficient workflows. Customized solutions are also available to meet specific client requirements. Finale Inventory serves clients across industries such as automotive, manufacturing, electronics, and more.
SAP, founded in 1972 and headquartered in Newtown Square, Pennsylvania, is a software solutions supplier specializing in SAP, an enterprise resource planning (ERP) software. The company's product portfolio includes cloud ERPs, business technology platforms, artificial intelligence, supply chain management, and CRM and customer experience. These products are applicable in various industries, including automotive, banking, consumer products, retail, and the gas and energy industry. The company also provides customer services, including SAP Enterprise Support, Foundational Support, and customized solutions. The company has employees from over 157 countries, global partner companies, and development locations globally.
Ranking as of December 2024
Derivation Method| Rank | Company | Click Share |
|---|---|---|
| 1 | SAP |
28.6%
|
| 2 | Plex, by Rockwell Automation |
25.0%
|
| 3 | Rootstock Software |
7.1%
|
| 4 | Aegis Software |
7.1%
|
| 5 | KOJO TECHNOLOGIES, INC. |
7.1%
|
| 6 | MODS |
7.1%
|
| 7 | Material Management Software. |
3.6%
|
| 8 | ToolWatch Corporation |
3.6%
|
| 9 | FineTek Co., Ltd |
3.6%
|
| 10 | Dassault Systèmes |
3.6%
|
Derivation Method
The ranking is calculated based on the click share within the materials management system page as of December 2024. Click share is defined as the total number of clicks for all companies during the period divided by the number of clicks for each company.Number of Employees
Newly Established Company
Company with a History
*Including some distributors, etc.
*Including some distributors, etc.
| Country | Number of Companies | Share (%) |
|---|---|---|
|
United States of America
|
7 | 70.0% |
|
Sweden
|
1 | 10.0% |
Switzerland
|
1 | 10.0% |
India
|
1 | 10.0% |
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