One of the
raging controversies now a days going on is the
scope of materials management in the wake of rising
opportunities in and the popularity of supply chain
management.
Many believe that Materials Management is a
part of Supply Chain and that
without Materials Management one can not think of
Supply Chain for a manufacturing industry. Materials
Management is thus applicable for only
Manufacturing Industry. However, this too is
debatable as where ever there is need of materials ,
Materials Management can always be done , though in
a modified manner.
World over Manufacturing is shrinking and
outsourcing and contract manufacturing is being done
to reduce cost and make delivery possible in the
fastest and strategic way. So, Supply Chain
Management encompasses a pull mechanism for the
delivery of a Product, thus underlying the
importance of Materials Management.
Materials
Management continues to enjoy the importance and
significance , but the service levels for any
delivery i.e. purchase or sales is becoming important
, with the result Logistics & Supply patterns and
positioning are taking prime importance, hence
Supply Chain is seen to be taking a lead.
Materials Management , however, has not lost
its importance , rather its scope has widened and
has been coined as supply chain management, as some
experts believe.
Supply Chain Management is looking the business for
supply of product, service or information, from a
customer point of view with primary focus being on
delivery as required by the customer.
The service levels , delivery schedules are becoming
important in today's industry and business
environment.
On the other hand, Materials management is the
planning , scheduling and making the materials
available in the right quantity, in the right
quality at the right time in the right place and of
course at the right price , very popularly known as
5 R's.
Many experts say that materials management is
included in the supply chain management function and
an effective materials management only can drive an
efficient and cost effective supply chain solution
or process.
So, the scope for materials management and the
success of materials management is very much
relevant and important and is evergreen , and is
rather becoming very challenging in today's
situation.
Supply Chain simply is the Supplier to you (your
company) and to the end customer with a lot of
details in between, like logistics, quality etc. It
is a wide scope of activities. Materials Management
in Distribution / Manufacturing typically means
Purchasing-Production Control (or
Buyer/Planners)-Warehousing and Master Scheduling
(Forecasting/SIOP) / MRP output for the operation /
production facility itself.
Supply Chain is the process which encompasses many
facet of materials managements like forecasting,
planning , procuring and movement till end user.
Supply Chain is team activity assisted by
statistical / management tools. |