Abstract: The design and implementation of a material management system for power grid enterprises, based on an initiative distribution mechanism has been the prime focus on our group. As the extant system cannot automatically remind the warehouse managers when shortage occurs, we firstly re-code the materials by merging the same kinds of materials which have different codes. Then, we design initiative distribution processes for first-level warehouses, second-level warehouses and emergency deposits respectively. According to the proposed processes, we design an initiative distribution management system with four functions which are material combination, material application, inventory management and allocating auxiliary. The application of the designed system demonstrates that it can improve inventory turnover rate, reduce the loss resulting from stockout, and release warehouse keepers' labor.