Various
functions served by materials management include the
material planning, purchasing, receiving, stores,
inventory control, scrap and surplus disposal. All
these functions can have separate working norms
including the one for performance.
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For example , while inventory manager would like to
have minimum level of inventory to show of his
performance , Purchasing manager would like to place
bulk orders in order to lessen his work load and show
discounts as reductions. Both of these acts may be
little contradictory from the organisational point of
view. That is if some of the functions were to be
handled separately, a conflict of interests may occur.
Therefore, the conflicting objectives need to be
balanced and intertwined from a total organisational
viewpoint so as to achieve optimum results for the
organisation as a whole. |
In an integrated set up, one materials manager
(usually the chief) is responsible for all such inter
related functions and he is in a position to exercise
control and coordinate all the activities with a view
to ensure proper balance of the conflicting objectives
of the individual functions.
Integration also attains the synergetic advantage in
terms of eliminating water tight compartments that set
in in a disjointed environment of working. The
resulting benefits can be seen in terms of rapid
transfer of data, through effective and informal
communication channels. This is crucial as the
materials management function involves handling
vast amount of data. Therefore, integrating the
various functions identify themselves
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to a common materials management department
which in turn results in greater coordination
and better control.
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Now a days , in many tradition bound
companies too, even the spare part
planning which hitherto was done by the
operation people has been brought under
the umbrella of an Integrated materials
Management.
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Better accountability ,better coordination,
better
performance, better adaptability to EDP are some of the
tangible advantages of the Integrated Materials Management besides a perceptible team
spirit , morale and cooperation are the intangible
gains. Training and development of staff and executive
through rotation of people is another great advantage
because of a bigger canvas produced by integration of Materials function. |
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