Appraisal Of Material Management Concept As A Strategy For Achieving Organizational Productivity

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The need for the production function is to make up with the growing complexity of industrial needs has brought about the concept of material management.

Modern management has expanded the traditional scope of purchasing and procuring to cover the entire material management process. Thus Lee and Dubler (1983) define material management as a confederacy of traditional material activities bound by a common idea, and of intergraded management approach to planning. Acquisition, conversion, flow and distribution of production material from the raw material state to the finished product state.

The concept also provide for delegation of responsibility and authority with regards to procurement and supply of material. The concept also recognizes the importance of the principle of accountability by providing a management approach which is responsible for all decisions.

Through material management, there is relatively recent concept much through has been given to it particularly since World War II, when industries all over the world were awoken to the fact that tremendous economies could be achieved by sufficient material management. The concept is today relevant to business organization because they will have a centralize body responsibility for buying with the overall advantage of procuring standard material at possible bulk. Disco unit and obtaining special vender relation. It means that spending valuable money is in the heart of people who are trained and competent for this job.

Frequently, it is found that material are expensive and in order to reduce overall costs, it require the close cooperation and co-ordination of material and other user department to ensure that material ordered are made to arrive only when they are needed, the benefit of this approach is that of cost reduction and maximization of the company profit.

Thus, the growing need for efficient operation of material management is increased in recent time.

As earlier indicated, the significance of material management has been recognized by most industries in Nigeria, now a days, in most companies in Nigeria, attempts have been made towards operating on intergraded approach to their material problems thus, one often finds in such companies such position. As supplier materials manager, material controller etc yet often is critical analysis of this system of operation. One often discovers that the actual practice of material management is not ready carried out. More often than this material management functions are handled by any individual without acquiring the necessary skills, giving the impression that even accountants administrators, engineers and lawyers etc have the knowledge to perform the material management function. This is wrong as they do not have at their disposal all the knowledge and expertise they acquired to fulfill there duties effectively. There is also ignorance on the past of most top management of the maximum benefit that will be derived from applying the concept into an organization to maximize the company profit.
Improper planning is another area of problem which entails effective and efficient requisition handling instruction of the finished products.

The motivating factor that led the researcher to choose the research topic is that, apart from the project been one of the prerequisites for the award of higher diploma in production and operations management, the researcher has always seen the essence of material management in an organization.

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