Why Materials Management?
- Materials is one of the five M’s(Men, Material, Money, Machine and Methods) of an industrial organization.
- Materials offer considerable scope for improving profit.
- Materials form an important form of current assets in any organization.
- Value addition is the margin between the raw material value and finished goods value.
- Suppliers and materials management account for more than 50 percent of total value.
- Quality of the finished product depends on quality of materials used.
- Conservation of materials and their availability for posterity is one of the planks of social responsibility of business.
- Exploring new sources of supply is a challenge for material management executives.
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