Written by Symestic | Jun 15, 2024 4:24:12 PM
Material Management (MM) is a central business process for the efficient planning, control and management of materials and inventories within a company. MM includes procurement, inventory management, material planning and warehouse management.
- Procurement: Planning and implementation of material purchases.
- Inventory management: Monitoring and controlling stock levels to avoid overstocking and bottlenecks.
- Material planning: Determining material requirements based on production plans and sales forecasts.
- Warehouse management: Organizing warehousing and ensuring efficient material storage and movement.
Advantages:
- Increased efficiency: Optimization of material flow and reduction of storage costs.
- Cost reduction: Minimization of material costs through effective purchasing strategies.
- Quality assurance: Ensuring material quality through careful supplier selection.
Material management is crucial for production reliability and cost efficiency in manufacturing companies.