Meaning / nature of material management - material management is the combination of all organisational functions responsible for the planning , collecting, stocking , manufacturing, control and all distribution activities of materials used in fulfillment of demand.
Importance / functions of material management -
1. For purchasing good quality material at min cost ..
2. Exercising control over materials .
3. For maintaining the continuity of production and sales by regular supply of material .
4. To maintain good standard of quality .
5. To establish good relationship with supplier ..
6 . maintaining the efficiency of material department ..
Scope of material management ..
A. Purchasing of material
1. Good quality of materials
2 . Purchasing at proper time
3. purchasing at right place .
4. purchasing from right source of supply
B. Storage
1. Weight and quality are inspected
2. Classification as raw material, semi finished goods, finished goods etc .
3. proper storage and quality is maintain , proper safeguard
C. Inventory control
1. For maintaining this cycle of production and sale
2. Controlling stock out cost
D. Clearing and forwarding
1. Import and export is a lengthy and complicated procedure must be done expert forwarding agents.
2. Transport facility .
Objectives of material management
1. Low prices
2. low inventory rate
3. reduction of real cost
4. regular supply
5. Procurement of good quality
material
material
6. efficient handling of material
7. enhancement of firm,s goodwill
8. locating and developing future executives
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