Materials Management Short Note
Materials Management Short Note
Materials Management Short Note
Many industries buy the materials and do the following activities with them in a step by step
manner:
Materials management does the following activities for the materials requirements:
Planning
Inventory planning
Purchasing
Storage
Inventory control
Supply of materials
Transportation of materials
Handling of materials
Important functions of materials management are planning, purchasing and controlling. The
enhanced productivity is its aim and is used to perform the following:
This complete process involves the functions right from planning to marketing and
material management is responsible for all these activities.
Objectives of Materials Management:
The objectives of materials management are of two types and those are as follows:
2. Secondary objectives: there are many secondary objectives and few of them are as
below:
To make decisions
Scheduling of efficient production
Make specifications of materials
Make standardization of materials
Assisting in design of product
Assisting in development of product
Quality control on purchased materials
Handling of materials
Availing value analysis
Availing value engineering
Advancing skills of workers in materials management
Easy flow of materials in organization
Easy flow of materials out of organization
11 Components of Material Management Technical Competencies
1. Strategic Sourcing and Purchasing :-Strategic sourcing and purchasing is the calculated
decision making process in choosing the right materials of the right quantity, at the right time for
the right time, this includes procurement decisions which involves the selection of vendors, and
materials.
5. Process Planning :-Process planning is the usage of technology to assist in the
manufacturing of products and in the arrangements in meeting the demands set by the
organization.
7. Sales and Operations Planning :-Sales and Operations Planning is the synchronization of
the entire manufacturing processes to enable effective supply chain management.
8. Risk Management :-Risk management is the strategic management of processes in the
manufacturing line through control of static and dynamic materials to ensure that an organization
is able to maintain profitability rather than conduct activities that would increase cost of
production and inventory holding.
9. Supply Chain Continuity :-Supply chain continuity is the elimination of risks that would
otherwise cause unpredictable breakage in the production line, which would affect the company
performance.
10. Physical Distribution Management :-Physical Distribution Management is the
streamlining of all processes after the manufacturing of end processes, which includes
transportation, packaging, customer service and inventory control.
11. Supply Chain Resilience:-Supply chain resilience is the ability of the supply chain to cope
with major shock and its capability to maintain output and customer service.