Material Management Workflow
Definition of Material Management
Material management is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. In other words, material management is also defined as a scientific technique, concerned with Planning, Organizing & Control of flow of materials, from their initial purchase to destination. Here is a general workflow diagram showing the main processes of material management.
An Automated Workflow Tool
Edraw is an easy workflow tool with auto generation function. Even novice users can draw workflow diagrams easily and quickly aided by Edraw. It includes smart shapes with floating action buttons, enabling auto connection. All templates and examples are available for free download, which can be transferred into various formats. See its user-friendly interface in the following illustration.
Aim of Material Management
Simply speaking, material management is aimed to get: 1. The Right quality, 2. Right quantity of supplies 3. at the Right time 4. at the Right place 5. for the Right cost. To be more specific, organizations expect to gain economy in purchasing while maintaining high turnover; satisfy the material demand for replenishment during a certain period of time; carry reserve stock to avoid stock out; stabilize fluctuation in consumption; and provide reasonable level of customer service.
Basic Needs of Material Management
There are four basic requirements to make it effective.
1.To have adequate materials on hand when needed. 2.To pay the lowest possible prices, consistent with quality and value requirement for purchases materials. 3.To minimize the inventory investment. 4.To operate efficiently.