MATERIALS

MANAGEMENT
TABLE OF CONTENTS
01 What is material 02 Types of Material
management? Management

03 Objectives of Material 04 Importance of

Management Material Management

05 What does a Material 06 Challenges for

Manager do? Material Management
WHAT IS MATERIAL MANAGEMENT
Material Management is a system that effectively controls and manages materials
and supplies used in an organization.

Material management plays a vital part in an organization's performance by

making sure that the correct materials are available when needed.
It helps to improve customer satisfaction by ensuring that orders are delivered
on time and with the correct items.
Material planning involves forecasting demand, determining the materials
needed, and developing a plan to acquire those materials.
Inventory control involves managing the flow of materials into and out of the
organization and monitoring inventory levels to ensure they remain within
acceptable limits.
TYPES OF MATERIAL MANAGEMENT
Inventory Management Material Requirements Planning (MRP)

It involves the maintenance of a company's It is a computer-based inventory

stock of materials, semi-finished goods, and
finished products.
It aims to strike a balance between the costs
of holding too much inventory and the costs
of running out of stock.
Purchasing Management
Transportation Management
Involves procuring materials, supplies, and
services required for production.
The objective of purchasing management is
to buy the required materials at the best
possible price and quality while ensuring
timely delivery.
Warehouse Management
management system used to plan production
schedules and manage the procurement of
materials.
MRP considers the lead time for ordering
materials, the time required for production,
and the inventory levels of materials.
Involves the physical movement of materials
from one location to another.
It includes the selection of carriers,
negotiation of freight rates, preparation of
shipping documents, and management of
delivery schedules.

Involves the storage and handling of

materials, as well as the management of the
physical movement of goods within a
warehouse.
The goal of warehouse management is to
optimize the use of space and minimize the
cost of storing and handling materials.
 OBJECTIVES OF MATERIAL MANAGEMENT
Right Material
50
The first objective of material management is to
ensure that suitable materials are available for
production.

40
Right Time
The second objective of material management
is to ensure that the right materials are available
at the right time.

30
Right Amount
The third objective of material management is
to ensure that the right amount of materials is
available for production.
20

Right Price
The fourth objective of material management is
10 to ensure that materials are purchased at the
right price.

Right Sources
0 The fifth objective of material management is to
ensure that materials are sourced from the right
sources.
IMPORTANCE OF MATERIAL MANAGEMENT
Cost Reduction Inventory Optimization
One of the primary objectives of material Another objective of material management is to optimize
management is to reduce the cost of materials. inventory levels. This includes determining the optimal
inventory level to maintain and implementing processes to
70% manage the movement of materials within the warehouse.
50%
30%

Improved Quality
Another objective of material management is to
improve the quality of materials and products.

50% 85%
Efficient Supply Chain
A final objective of material management is to ensure the
efficiency of the supply chain. This includes reducing lead
times, improving the efficiency of delivery processes, and
optimizing the movement of materials within the warehouse.

Timely Delivery
A third objective of material management is to
ensure the timely delivery of materials and
products.
WHAT DOES A MATERIAL MANAGER DO?
Facility Management
They are responsible for managing the facilities used
for storing and handling materials.

This includes ensuring that storage areas are secure,

accessible, and compliant with safety regulations.

Inventory Management
They are responsible for managing the movement
and storage of materials within the warehouse.

This involves determining the optimal level of

inventory to be maintained, monitoring stock levels,
and ensuring that materials are stored safely and
efficiently.

Operations Management
They ensure that operations are running smoothly
and efficiently.

This involves coordinating with production and

logistics teams, monitoring performance metrics,
and ensuring that materials are delivered to
production on time and in the correct condition.
WHAT DOES A MATERIAL MANAGER DO?

Production Planning
A material manager is also responsible for supporting
production planning by ensuring materials are
available when needed.

This involves managing inventory levels, monitoring

lead times, and ensuring that materials are
delivered to production in the proper condition.

Cost Management
A material manager is responsible for managing the
cost of materials, including reducing the cost of
purchasing materials and reducing the cost of
storage and handling.

This involves negotiating prices with suppliers,

reducing lead times, and improving the efficiency of
delivery processes.
CHALLENGES IN MATERIAL MANAGEMENT
Supply Chain Management
One of the biggest challenges in materials management is managing the
complex supply chain.

Cost Control
Cost control is another major challenge in materials management.

Quality Control
Ensuring materials meet the required quality standards is another key
challenge in materials management.

Data Management
Managing data is another major challenge in materials management.
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PRESENTED BY: ALFARO AND RUDIO