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Supply Chain Materials Management Areas of Concentration: Goals

The goals of materials management are to provide an unbroken chain of components for production and deliver goods to customers on time. The materials department releases materials to suppliers and ensures timely delivery to the company using proper shipping. Materials performance is measured by on-time delivery to customers and suppliers, meeting freight and inventory budgets, minimizing shrinkage and ensuring accuracy. The department also manages new product launches. In some companies, materials management handles procurement while others have a separate purchasing department responsible for supply base price variances. Large companies with many product changes may have a dedicated logistics department that procures materials for launches and handles customer changes.

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73 views1 page

Supply Chain Materials Management Areas of Concentration: Goals

The goals of materials management are to provide an unbroken chain of components for production and deliver goods to customers on time. The materials department releases materials to suppliers and ensures timely delivery to the company using proper shipping. Materials performance is measured by on-time delivery to customers and suppliers, meeting freight and inventory budgets, minimizing shrinkage and ensuring accuracy. The department also manages new product launches. In some companies, materials management handles procurement while others have a separate purchasing department responsible for supply base price variances. Large companies with many product changes may have a dedicated logistics department that procures materials for launches and handles customer changes.

Uploaded by

sekelamedia
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We take content rights seriously. If you suspect this is your content, claim it here.
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Supply chain materials management areas of

concentration[edit]
Goals[edit]
The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for customers. The materials
department is charged with releasing materials to a supply base, ensuring that the materials are delivered on time to the company using the correct carrier.
Materials is generally measured by accomplishing on time delivery to the customer, on time delivery from the supply base, attaining a freight, budget,
inventory shrink management, and inventory accuracy. The materials department is also charged with the responsibility of managing new launches.

In some companies materials management is also charged with the procurement of materials by establishing and managing a supply base. In other
companies the procurement and management of the supply base is the responsibility of a separate purchasing department. The purchasing department is
then responsible for the purchased price variances from the supply base.

In large companies with multitudes of customer changes to the final product there may be a separate logistics department that is responsible for all new
acquisition launches and customer changes. This logistics department ensures that the launch materials are procured for production and then transfers the
responsibility to the plant materials management

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