Topics for discussion

introduction Definition meaning Scope of material management Why material management is necessary Objectives of material management -primary objectives -secondary objectives Importance of material management Merits and demerits

Material management is an approach for planning, organizing, and controlling all those activities principally concerned with the flow of materials into an organization. The scope of materials management varies greatly from company to company and may include materials planning and control, production planning, purchasing, inventory control and stores, in-plant materials movement, and waste management.

Definition
Materials Management can be defined as that function of business that is responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an

optimum manner so as to provide service to the customer, at a predecided level at a minimum cost - web definition

Meaning
it is a business function for planning, purchasing, moving , storing material in a optimum way which help organization to minimize the various costs like inventory cost, material handling cost and distribution cost.

SCOPE OF MATERIAL MANAGEMENT

Emphasize the acquisition aspect; Inventory control and stores management, To materials logistics, movement control and handling aspects. Purchasing, supply, transportation, materials handling etc., Supply management or logistics management Covers all the interrelate activities concerned with materials.

 Three basic objectives are buying/purchasing storage movement

Buying / purchasing

buying
Pay low price for best value obtain Negotiation Vendor selection Right quality on right time

Storage

Storage
Minimizing transportation and material handling cost Adequate and proper storage and preservation Store as per requirement

Movement / Distribution

Movement / Distribution
distribution of finished good to

customer Disposal of raw material

 Low price High inventory turn over Low cost acquisition and possession Continuity of supply Consistency of quality Favorable supplier relation Good record

Secondary objectives of material management

New materials and products Economic make- or- buy Standardization Product improvement Interdepartmental harmony Forecasts

Importance of material management

Lower prices for material & equipment Fasten inventory turnover Continuity of supply Reduce transportation cost Reduce material obsolesce Better inter-departmental cooperation Better record keeping and information

Merits of material management

Helps to save cost Efficiency in work Best control over inventory Best utilization of resources Reduce fault and damages

demerits
Continuous observation is require It requires good infrastructure facility which may need huge investment Extra man power can require