Importance of Effective Materials Management:
Materials management addresses the increased integration of the materials management process.Materials management is a process that requires single point responsibility, early planning, and effective communication tools.
Effective materials management involves maximizing material productivity. This requires well coordinated approach towards various problems related to materials. With respect materials it helps in decision making. Effective material management solves many problems and some of important problems are as follow:
1. Inventory Problem - It helps in solving problems related to reducing inventories in the context of reducing uncertainties in demand and supply. It helps in projection of demand. The gap between demand and supply is very crucial for any business hence effective materials management is very important.
2. Pilferage – Issues of proper planning regarding avoidance of pilferage are also solved by effective materials management,
3. Improving Materials Productivity ‐ Problems regarding standardization and reduction methodologies for improving productivity are also solved by effective materials management,
4. Waste Management - Effective materials management also helps in developing policies and procedure for managing waste materials.
Issues of proper planing of store or warehouse are also important part of effective management and it involves store layout. Hence for solving above problems an integrated approach of material management must be applied properly.
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