Four strategies for successful material management
Material management is an essential aspect/process of every manufacturing firm. It entails to the procurement of the material, its transportation and effective management of the inventory, right from the manufacturer to the shelf. Material management has its own significance in enhancing the productivity of the firm. It is basically a labour-intensive process. It includes various operations such as regular monitoring of the purchased material, inventory management and distribution of the material.
The process of planning, organising, monitoring, implementing and controlling the flow of materials to and fro a firm is quite intimidating. Hence, the process needs to be handled smoothly and skilfully. That is why companies hire professionals for the task and pay them a handsome amount for the same. In such an opportunistic scenario, a material manager can easily find his position in almost every organisation that understands the significance of material management.
If you wish to make a successful career in this exciting field, then you should pursue MBA-equivalent Post Graduate Diploma in Management (PGDM) course in Material Management to hone your skills. The course will teach you these four effective strategies that facilitate successful material management:
1. Lookout for quality suppliers
A regular flow of supply can keep the company thriving. On the contrary, the companies may face adverse situations if there is an obstruction in the continuity of the supplies as the company will not be able to meet the demands of the customers. It will become impossible for a company to directly deliver the required quantity of products to the customers on time if they fail to obtain the quality suppliers within the stipulated period. This, in turn, may result in loss of the customers and immense monetary loss of the company. Thus, it is imperative for the material manager to foster a good relationship with the suppliers so that the company can easily rely on the suppliers to fulfill its supply needs.
2. Proper order process
The customers’ demands keep on fluctuating. However, a firm should always be well-equipped to meet the demands of the customers. They should always have sufficient inventory to handle even the turnover demand. For this, a firm must regularly keep a check on its stocks. This, in turn, facilitates proper calculations related to supplies so that the material manager has a better idea of the replenishment amount. Having a better idea of the replenishment amount facilitates in placing reorder for the required materials before its depletion.
3. Proper analysis
It is an essential step for the material manager to carry out different analysis. Proper analysis not only includes inventory management, but it also includes maintaining financial aspects. The companies must exploit an effective inventory system that keeps an account of the total purchase as well as the sale of every item for proper analysis. The common goal should be to ensure that the cost of purchasing a material is less than its sales. Apart from this, the accounts of inventory must be updated on a monthly basis. This facilitates the material manager to analyse the data and easily manage the cost of inventory.
4. Cost savings
Since most of the task related to material management require manpower, it is imperative for the material manager to ensure the best pricing. He should know how to get top-notch quality work done at minimal cost. He should also know the minimum cost that should be spent to purchase high-quality materials.
A few things that need to be kept in mind
- Include cost inventory.
- Regulate high turnover.
- Try to achieve a minimal cost of storage and procurement while keeping the quality intact.