Materials Management

Materials Management

The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for customers. The materials department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier. Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight, budget, inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches. In some companies materials management is also charged with the procurement of materials by establishing and managing a supply base. In other companies the procurement and management of the supply base is the responsibility of a separate purchasing department. The purchasing department is then responsible for the purchased price variances from the supply base. In large companies with multitudes of customer changes to the final product there may be a separate logistics department that is responsible for all new acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the responsibility to the plant materials management

material management is an important function of an organisation covering various aspects of input process, i.e., it deals with raw materials, procurement of machines and other equipment’s necessary for the production process and spare parts for the maintenance of the plant. Thus in a production process materials management can be considered as an preliminary to transformation process.

• How Do You Implement a Supply Chain Strategy?

• To implement a supply chain strategy once you have undertaken the analysis will require:

• Once you have an awareness of the corporate strategy you can then undertake SWOT and STEEPLED analysis to identify micro and macro factors that may impact supply chain activities.
• Micro factor is internal to your organisation, for example you may have a shortage of specialised skill in your labour force and there is limited availability to gap this skill set within the recruitment market.
• Macro factor is external to your organisation, such as a global disruption that may impact your raw material supply.
• Building business cases: to gain investment for the areas requiring development. I.e. new systems or increase in staff numbers.
• Stakeholder buy in - to gain support for the roll out of the strategy, by ensuring existing members of staff within the team understand their objective whilst taking them on a journey of change management, also engagement with senior or peer stakeholders who can influence the strategy , as your business proposals may in turn impact their operating areas.
• Setting KPI’s: You can’t measure what you don’t know, identify your start point and then review on a regular basis to ensure you remain on target for change progression.

In order to meet the challenges of today’s digital economy, where customers want both products and services quickly and tailored to their unique specifications, your organization needs to fundamentally reimagine its business processes across the digital supply chain

Why choose Tsoaela Industries?

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