Why materials management?

Abstract

A particular form of organization is not chosen because it is fashionable. It is chosen for a number of very good reasons that argue for the choice of that particular form. The primary reason is the volume of work (code numbers, storehouse transactions, parts lists, etc.) and the complexity of materials problems — which can be handled more efficiently and cheaply when coordinated under materials management. The reasons for drawing this conclusion are:

• - complexity calls for coordination;

• - materials costs must be decreased across the entire materials flow;

• - coordination and balancing of all factors related to the materials flow requires an integrated approach;

• - solving the problems requires good management, and good management means that responsibility for all interrelated problems must be with one managerial authority.