MATERIAL MANAGEMENT

 “Material management is the planning, directing, controlling and co-

ordination of all those activities concerned with material and inventory
requirements, from the point of their inception to their introduction into
manufacturing process.”

 N.K. Nair: “Material management is the integrated functioning of the

various sections of an organization dealing with the supply of materials and
allied activities in order to achieve maximum co-ordination.”

N.K. Nair has emphasized the co-ordination of all those activities which are
related to the efficient use of materials.
 IMPORTANCE OF MATERIAL MANAGEMENT

The supply of materials is prompt and late

delivery instances are only few.

 The investments on materials are kept under

control as under and over stocking is avoided.

 Congestion in the stores and at different stages

of manufacturing is avoided.
 OBJECTIVES OF MATERIAL MANAGEMENT:

 To buy at the lowest price, consistent with desired quality and service.

 To maintain a high inventory turnover, by reducing excess storage, carrying costs and
inventory losses occurring due to deteriorations , obsolescence and pilferage.

 To maintain continuity of supply, preventing interruption of the flow of materials and

services to users.

 To minimize the overall cost of acquisition by improving the efficiency of operations and
procedures.

 To hire, develop, motivate and train personnel and to provide a reservoir of talent.

 To achieve a high degree of cooperation and coordination with user departments.

 To participate in Make or Buy decisions.

 SCOPE OF MATERIAL MANAGEMENT:

 Materials planning and control: Based on the sales forecast and production plans, the
materials planning and control is done.
 Purchasing: This includes selection of sources of supply finalization in terms of
purchase, placement of purchase orders, follow-up, maintenance of smooth relations with
suppliers, approval of payments to suppliers, evaluating and rating suppliers.

 Stores management or management: This involves physical control of materials,

preservation of stores, minimization of obsolescence and damage through timely
disposal and efficient handling, maintenance of stores records, proper location and
stocking.

 Inventory control or management: Inventories represent those items, which are

either stocked for sale or they are in the process of manufacturing or they are in
the form of materials, which are yet to be utilized.