Materials Control

Materials Control ‘’Materials control may be defined as the systematic control over the procurement, storage and usage of materials so as to maintain an even flow of materials and at the same time avoiding excessive investment in inventories.’’ 
Material control is a systematic control over the purchasing, storing and using the material to minimizing the possible cost. In every manufacturing concern materials constitute an important factor of production. It is an important element of cost and covering 60-70 percent of the total cost of production. Material cost may be defined  as the level of material maintenance so as to ensure uninterrupted production and minimizing the investment of funds.
For any process, we need to go step-by-step and initiate from planning and set controlling. So under material control, first step will be material planning, second will be material purchasing, then its sub function will be storing and under storing we need to receive the material and inspect it. After that we need to issue that, so next function will be issuing. Afterwards comes accounting and the last one will be control.
For a material control, what we need to plan in an organization is that will the purchasing be centralized or decentralized, will the stores be centralized or decentralized, what techniques will be used to ascertain the level of material that is fixing of material level’s using techniques like reorder level EOQ, ABC analysis and the methods used to control the material movements that is perpetual inventory taking, continuous inventory taking.
Centralized purchasing is where we need to purchase all the demand of the organization at one place. It avoids duplication, overlapping, the advantage is that we can get bulk discounts and we can ensure that supply is of adequate quality as required. The disadvantage is that under centralized purchasing, we need to incur heavy cost, so initial investment is quite substantial and another disadvantage would be that we would not be able to use the localized discounts and other benefits from the suppliers. Under decentralized purchasing system, all departments can fulfill their needs by doing the localized purchasing.

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