Effective Material Management: Strategies for Optimal Results - Essay Sample

Material Management

Material management is the procedure that is used by organizations to control, plan, and organize the processes that they utilize to manage the physical components. The process of material management varies from one entity to another, but the main objectives of this activity is to acquire commodities of the right quality and quantity, at the appropriate item and source, and at a reasonable price. An appropriate management system can trigger a positive outcome in business considering that the procedure helps in controlling the ways activities are undertaken. It ensures that the resources are optimally utilized to make quality commodities that will sell handsomely in the market. The improvement in the business operations will ensure that there is a rise in the production levels and the earnings made triggering continued growth and expansion process.

Time

Time is critical to a company in the production process, and it plays a useful role in performance measurement. An appropriate procedure ensures that there is sufficient materials and stock when it is required ensuring that the production process continues all the time. Therefore, it becomes possible to meet the market demands, as well as, provide the buyers with goods when they need them. When cases of work stoppages are avoided, then it becomes easier to create a favorable working relationship with the staff members and the end-users in the market. A firm will avoid a situation where there are no commodities in the market trigger a massive movement of the customers to the rival products. Therefore, businesses avoid losing their customer base to competitors. Situations of idling workers are eliminated meaning that companies manage to get value for the production process since the employees are offering quality services for the compensation they are getting as salaries.

Cost

The other benefits realized by having an appropriate material management system is the minimization of operational costs. One of the significant issues ta-ta organization must consider in the production process is the expenses that will be incurred in the production process. The cost must be minimized for this will help in raising the revenue levels. For example, when making purchases, a firm should consider the inclusion of discounts and bulk orders. The move ensures that the entity will management to reducing the cost of ordering and buy a large quantity of commodities at reduced price levels. A business will manage to enjoy economies of scale, a widened customer base and more revenue in a market.

The opportunity to sell quality goods at lower prices in comparison to the rivals is a concept that many entities work toward realizing. However, when considering the concept of material cost, timing must be considered for it is necessary to ensure that the materials are ordered early or late, the right timing must be considered (Liao, Hu, & Ding, 2017). Ordering early means that an organization will have to find storage areas, and this will mean incurring additional costs. Additionally, when the materials are late, a business may not manage to offer quality goods and ta the right time when they are needed in a market.

Quality

Another positive impact is felt on the quality of goods that are manufactured by a business with an appropriate material management system. The issue of quality is subjective, and organizations must engage their clients to understand their needs and preferences for this will be the only way to know the commodities to offer and the standards that should be met. Availability of resources at the right time when a project is being undertaken is a critical element that should be followed for it plays an essential role in quality performance. The equipment utilized in the production process should be in the right conditions, and they should be adequate to the manufacturing of adequate goods. An appropriate material management may follow the structure given below.

Figure 1: Material Management Flow Diagram

Productivity

Another positive impact that is realized due to an appropriate material management system is the increase in productivity levels. The productivity units that is realized is usually measured based on the units accomplished and the related expenses that are determined in money terms and working hours. Productivity can be adversely affected by lack of material, and this is why it is essential to have an appropriate system that will ensure that a firm manages to get materials at the right time and in the required quantity.

An effective system helps in ensuring that there is no loss in labor productivity. The storage location should be near the processing plant to help reduce the time taken to have the raw materials delivered to the processing location (Palandeng, Kindangen, Timbel, & Massie, 2018). Additional, the costs of transporting the materials from the storage location is minimal, and this will help to reduce the operational expenses. The workers' energy is saved, and it is used in other areas enabling the company to raise its earnings.

The success of a business is determined by various factors that are connected to the materials management system. When an institution has invested in a system that is enabling it to realize value for its investment, there is a need to invest in quality workers. Therefore, the existence of an effective material management system is likely to lead to a business employing highly qualified workers that manage to join force and facilitate the production of adequate gods for the market.

An effective material management system supports the supply chain process that is essential in the transformation of inputs into outputs. The system helps in controlling the flow of materials from the place that they are purchased to the factory, and it helps in reducing the costs of transportation and lead time. Wastages are minimized when there is a supply chain personnel that is involved. High-quality goods are produced when quality materials are used in the production process. Therefore, an appropriate materials management system ensures that the elements used in the production process.

Efficiency in the operational process is critical for any business to realize success and growth and having a heath material management structure leads to customer satisfaction and provides the backbones for the production process (Khorram, & Nonino, 2017). An efficient system makes a unique identification of the various items that are involved in the inventory process with the categorization as raw materials, work-in-progress and final commodities enabling the management to have a detailed follow up on the activities happening in a company.

An appropriate material management structure ensures that there is no duplication of material when they are purchased from the source areas and reduces redundancy among the workforce. When there is a strict management system, an organization will have an accurate idea of their production capacity and the right number of staffs that will be needed. Therefore, the entity will not have to pay the lay-off fees that may reduce the retained earnings in a business. Additionally, cases of lawsuits resulting from laying off the employees will be avoided.

The effective management system will earn a company a positive reputation, and it will manage to attract the different players in the market. The positive reputation will attract customers to the business's commodities. An organization will manage to cut on the advertising cost, and this will give it an upper hand in the market against the competitors. Additionally, the positive reputation will drive the highly qualified workers to a company, and this means that a firm will have an opportunity to integrate a team of efficient workers. Therefore, it is essential to have quality material management systems for the benefits that will be realized will be significant.

The existence of appropriate material management systems allow an entity to access new markets and conquering them. Entering new markets is not an easy task considering that there exist threats that face any business that tries to sell its commodities to a new set of clients. For one, an organization may face difficulties of convincing clients that its goods will offer them value for money and that they will satisfy their needs (Tramarico, Salomon, & Marins, 2017). However, with an efficient management tool, management will introduce a platform that will ensure that despite these challenges, it will enter the market slowly and win a significant number of clients. The move will offer it a springboard to control the market, and the overall outcome is an increase in the volume of earnings made.

Having a conducive working environment is realized when the conditions are favorable to the staff members at the work station. Creating a happy workforce that is coherent and happy with each other takes a lot of effort. However, the management can play a crucial role in ensuring that its employees are happy, and this is through the provision of a system that is efficient. An appropriate and effective material management system will make it easier to carry out activities in a business, and the employees will be willing and ready to undertake the duties assigned to them. The easiness of activity flow and coordination of operations in a company makes the employee create a conducive working environment.

Conclusion

In conclusion, companies around the world need to ensure that they have an appropriate material management system for many benefits are realized when such a system is used in managing the various organizational activities. The right materials in the required quality and quantity is bought and processed when it is needed. The consumers in the market manage to get the commodities when they need them, ensuring that a business does not lose its customer base. Additionally, a strong workforce is built when the various systems in a business are coordinated in the right way, and there is no cohesion among the staff members.

The ability to enter new markets is realized when an entity has an efficient tool to produce high-quality commodities. The selection of the right tool will give an entity a competitive advantage in the market for its commodities will become favorable to the end-user. The reduction in the operational costs will be made possible through the utilization of the right tool will enable a business to expand its activities and offer quality goods. Therefore, it is essential to have an efficient tool to manage and control the materials that a business is getting from its sources for processing.

References

Khorram Niaki, M., & Nonino, F. (2017). Additive manufacturing management: a review and future research agenda. International Journal of Production Research, 55(5), 1419-1439. DOI: 10.1080/00207543.2016.1229064

Liao, S. H., Hu, D. C., & Ding, L. W. (2017). Assessing the influence of supply chain collaboration value innovation, supply chain capability and competitive advantage in Taiwan's networking communication industry. International Journal of Production Economics, 191, 143-153. doi.org/10.1016/j.ijpe.2017.06.001

Palandeng, I. D., Kindangen, P., Timbel, A., & Massie, J. (2018). Influence analysis of supply chain management and supply chain flexibility to competitive advantage and impact on company performance of fish processing in Bitung city. Journal of Research in Business, Economics and Management, 10(1), 1783-1802. Retrieved from https://pdfs.semanticscholar.org/a14a/d96d7146311746b50037f25dcbfefdc46f98.pdf

Tramarico, C. L., Salomon, V. A. P., & Marins, F. A. S. (2017). Multi-criteria...