What is the aim of material management?

Answer 1

GoalsThe goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for the customer base. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight budget, inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches.

In some companies materials management is also charged with the procurement of materials by establishing and managing a supply base. In other companies the procurement and management of the supply base is the responsibility of a separate purchasing department. The purchasing department is then responsible for the purchased price variances from the supply base.

In large companies with multitudes of customer changes to the final product over the course of a year, there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management

Answer 2

An important management tool is material management. The objectives of material management are to reduce material related cost, reduce cost of production and as a consequence it enables higher earnings and profitability.

To have an efficient material management a company must establish clear guidelines and strategies regarding purchasing of material, storage and minimization of inventories. Proper storage keeping will enable the material to be kept in its ideal environment and therefore it will cut any losses, if bad material has to be thrown away. Good accounting and recording keep will keep a close watch on any workers who might think that they can help themselves with the company's material.

Material management also focuses on finding new and cheaper supplies, maintaining standardization and quality control. It tries to reduce cost in transport and storage and find new routes that with cheaper charges. An efficient management team will have in mind the clear picture of demand and supply of the company's products and it will keep in touch with peripheral teams to make sure that unnecessary material purchasing or overstocking would be avoided.

A good material management leader manages resources efficiently and helps to increase the company's productivity and that the product is delivered on time. A good administration is needed to buy material at the best price and from recommendable suppliers, good bargaining techniques are need.

A good material management team will work hand in hand with other company departments and ensures that the company's objectives are reached. Higher earnings and customer service are of highly important and will enable the company's survival in a competitive market.

Answer 3

The objectives of materials management is to reduce material related cost, to build harmonious relationship ship with other departments, etc.