Materials Management is a very important function for the efficient production plan in an organization. The objectives of materials management cannot be treated in isolation. They are meant for furthering objectives of the enterprise as a whole. Materials management aims at reducing the cost of production and distribution so as to help the whole of the enterprise. Materials Management help in achieving its objectives helping organization in :
1. Its growth,
2. maximization of service to customers by supplying them standard quality goods in required quantity at the right time at a reasonable competitive price,
3. providing goods working conditions to its employees and offering scope for their advancement, and
4. its very survival.
Objectives of Materials Management
The main objective of materials management is, therefore, to help the enterprise to attain its total objectives. It may do so by :
1. Maintaining the continuity of production by
(a) purchasing goods of right quality, in right quantity at right time, from a right source, on right terms and conditions and at a comparatively low cost, and
(b) ensuring uniform flow of materials;
2. Efficiently controlling the inventories:
3. Economizing on the use of imported goods and stimulating import substitution so as to conserve the rare foreign exchange.
4. Establishing good buyer-seller relation;
5. Making arrangement for working capital and using it for production purposes;
6. Coordinating the efforts of own personnel along with those of the whole enterprise;
7. Helping the organization to grow and advance in technical skill; and
8. Maintaining ethical standards.