Of the 7 prime resources needed to run an organization, including management, materials, methods, manpower, machines, money and matrix (facilities), the materials are the major resource to be managed effectively. The organization of materials management is aimed at planning the materials requirements for the production of goods and services. The organization structure should be such that the materials can be managed efficiently and its flow, storage and use can be controlled effectively. Materials management organization ensures that the materials are used economically and wisely. The finished products should be manufactures using the existing materials purchased at economic costs and be brought under a single organizational section, with equal sharing of responsibilities of their flow, maintenance, storage, utility, quality and cost of materials. Materials management is not just limited to organizing materials, but also managing the inventory and purchase activity, assessing the value, conservation and protection of inventories in hand and in process.
The organization of materials management ensures efficient integration of activities related to materials and the regulation of their use as per the production requirements to maintain stability in the department. There should be harmonious structural growth and authority within the organization’s hierarchical system and integrative decision-making. This helps in achieving the goals of the organization by way of proper information supply system.
