Why is accurate tracking of material usage important for GEMD?

Accurate tracking of material usage is crucial for GEMD primarily because it plays a significant role in maintaining effective inventory management and ensuring compliance with relevant regulations and standards. By closely monitoring material usage, GEMD can optimize inventory levels, preventing both shortages that could disrupt operations and excess inventory that could lead to increased costs and waste.

Additionally, tracking usage allows for adherence to compliance standards, which is essential in industries where regulatory requirements govern how materials should be managed, stored, and accounted for. Failure to maintain accurate records could lead to non-compliance penalties and operational inefficiencies. Thus, effective inventory management and compliance rooted in precise tracking of material usage is foundational to the smooth functioning of GEMD.