- Material management is the planning , directing , controlling and coordinating those activities which are concerned with material and inventory.
- It deals in material quality and quantity
- Controls the flow of material in relation to changes in variables like demand , price.
Objectives Of Material Mgmt.
- Low operating cost (without affecting the quality)
- Receiving and controlling the material safely and in good condition
- Issue material upon receipt of appropriate authority
- Identification of surplus stocks and taking appropriate measures to reduce it
- To minimize storage and control costs
- By minimizing waste while handling of material
- To purchase items of best quality
Duties Of Material Manager
- Purchasing of raw material
- - Delivery of material on time
- - To look for new products
- - Proper schedules for production
- Inventory and stores control
- Traffic (shipment of RM & FG )
- - Developing technique to reduce transportation cost
- Physical distribution ( final goods to customers )
Factors responsible for providing economy in Material Mgmt.
- Plant near the source of material
- Fluctuations in price of material
- Design and engineering of the product ( design of the product should be simple so that
- Inspection of the material before placing the order
Importance of Material Mgmt.
- Ensure regular supply of material
- Transportation costs associated with material are checked
- Shortages can be eliminated
- Better utilization of resources
- Timely supply of raw material