MATERIAL MANAGEMENT

MATERIALS can be defined as an equipment, apparatus or supplies procured, stocked and

utilized in an organization.

MANAGEMENT is the aspect of bringing together the available resources so as to achieve a

specific objective. It is the function of storing and controlling materials in an optimum manner
so as to provide a predefined service at minimum cost.

Material management Is concerned with the planning, organizing and controlling the flow of
materials from their initial purchase through internal operations to service point through
distribution. According to Thomas F Wallace and John R Dougherty, It is the scientific technique
concerned with planning, organizing and controlling of flow of materials from their initial
purchase to destination. It can also be defined as the integrated functioning of purchasing and
other related activities so as to achieve the maximum co-ordination and optimum expenditure
in the area of materials.

WHY MANAGE MATERIALS?

To get:
1. The right quality
2. The right quantity of supplies
3. At the right time
4. At the right place
5. For the right cost

WHAT ARE THE OBJECTIVES OF MATERIALS MANAGEMENT?

1. To reduce the cost of materials- Low procurement and storage cost
2. Effective and efficient handling at all stages and in all sections
3. Consistency in quality
4. Good supplier relationships
5. For forecasting purposes
6. Interdepartmental harmony
7. Product improvement standardization
8. Good decisions
9. Awareness of new materials and products
10. Favorable reciprocal relationships with all stakeholders

PRINCIPLES OF MATERIALS MANAGEMENT

1. Effective management and supervision depending on any of the following functions:

• Planning
• Organizing
• Staffing
• Directing
 • Controlling
• Budgeting
• Controlling
• Reporting
2. Effective purchasing system
3. Sound purchasing method
4. Simple inventory control
5. Skillful negotiations

WHAT DO MATERIAL MANAGERS DO?

1. Receive and inspect incoming items

2. Store and protect items
3. Issuing items for use
4. Ensure proper use of items
5. Identifications of needs
6. Establishing the standards and specifications in terms of quality
7. Selection of the right source
8. Determine the right price, availability and delivery schedules
9. In charge of purchase orders, receipts etc