[原创]The Concept of Materials Management and Its Implications

According to the APICS Dictionary, Materials management means “the grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product”. The core of this concept is “materials flow”. This material flow has three phases: upstream physical supply from the purchase, internal flow planning and controlling work in process, and downstream flow, the distribution of the finished product. Put together the three phases of material flow plus the supplier, the manufacturer and the customer, we may establish the supply production and distribution system, which is actually the basic supply chain.

 

No wonder that Tony and Stephen claim that materials management is a coordinating function. This may help us touch something behind the concept of materials management: it is introduced in an attempt to resolve the conflicting objectives among marketing, production and finance by closely coordinating the supply, production and distribution so as to minimize the total costs involved and maximize customer service consistent with the goals of the organization. To put it simply, one department should be responsible for supply, production and distribution instead of allowing those three functions to spread among marketing, production and distribution. This integrated approach may help eliminate or mitigate the awkward position faced by the materials department in some manufacturing companies as discussed in my previous blog.

 

As for how to successfully manage the complete cycle of materials flow, a study of those CPIM materials has definitely prompted me to stop to critically review what actually occurred in manufacturing companies. Many afterthoughts (such as materials management is a science as well as an art) have been written down and I’m going to share some of them with you later.

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