of this lesson are to know
Materials management and control are critical for businesses because the costs of goods, materials and storage are highly significant cost factors. These costs amount up to 80 % in trading enterprises, up to 40-60% of the sales turnover in manufacturing companies.
It’s easier to increase profit by reducing procurement costs than by increasing sales.
The main function of materials management is to provide the necessary goods and services to a company in the following way: the goods and services have to be available
The following activities have t be performed:
To optimise the flow of material many decisions have to be coordinated.
In large firms materials management functions are usually carried out by different departments (procurement, inventory etc.). It’s vital to coordinate and fine-tune those departments.