Why Materials Management is Important

Opinion / Supply Chain and Quality

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Why Materials Management is Important

Materials Management - The Secret to release the blocked cash.

For a company to be successful it is necessary to have a good flow of Cash, Materials and Information.
Material Management is very important for any successful organization as lots of money, space and other resources get blocked into it. For any firm it is necessary to mae the cash flow right by releasing any kind of inventory.
This might include Raw Materials, Work in Progress, and Finished Goods.

There are many techniques which are applied by successful and leading companies setting benchmark for us. Dell which stays an ideal for all the managers in material management have successfully managed its materials in such a way that it hardly has a inventory of 2 days and have implemented concepts like JIT.
Materials Management has been the key of Supply Chain for this companies making them different from others giving them the competitive edge. As a material management person you should always try to keep the material in rolling making sure that you have maximum inventory turnover ratio

I personally believe that the company's work culture is reflected by the way it is handling materials as the ideal companies will have things at right place with no stocks lying around while a normal company will have huge Warehouses and materials lying on shop floor showing their ineffiency not only in handling materials but also in production planning.

Its a time when no longer the companies would fight on product, the fight would be between their Supply Chains and Materials Management of the competitors. The need of the hour to make sure that we sustain in this fight finding new and modern techniques.

I would like you all to suggest new methods and ideas for doing so and contribute in the forum for the betterment.

Anuj Shrivastava

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Other Views by this Author: Business Comes in Totality | Motivation and Human Nature


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