Introduction And Meaning Of Material Control
Material control is a process of purchasing, receiving, inspecting, storing, issuing, and maintaining the records of materials such as raw materials, work in progress and finished goods in the business firm. It is a managerial function that aims to minimize wastage, avoid over and understocking of materials. Effective material control helps to reduce the cost of production which leads to increase the earning of the firm.
Objectives Of Material Control
The main objectives of good material control system can be pointed out as follows:
1. To Avoid Over And Under Stocking Of Materials
Material control facilitates the management to purchase, store and issue optimum quantity of materials which helps to avoid understocking and overstocking problem.
2. To Supply Right Quantity Of Materials
It helps to supply the right quantity of materials to the production center at the right time which ensures smooth production without delay and stoppage.
3. Wastage Minimization
Another notable objective of material control is that it helps to minimize the wastage of materials by discouraging carelessness and applying proper supervision and handling mechanism.
4. To Increase Profitability
Because of smooth production without any interruption, and wastage minimization, it helps to increase the volume of production and reduce the cost of production. It leads to increase in the profitability of the company.
5. Procuring Better Quality Of Materials
Good material control system helps to procure better quality materials or supplies at lower cost which reduces the capital investment of the firm.
Also Read:
Importance Of Inventory Management
Meaning And Objectives Of Store Keeping
6. Protection Of Materials
It ensures proper storage of materials and provides protection against loss and damage. It also prevents the misuse of inventory.
7. To Provide Data And Information
It provides correct information and data about materials such as requirement of materials, their availability, costs, and stock level etc.
