The functions of material management are as follows:
- Material Planning and Programming: - this consists of determining the total material requirement for any project by considering all factors. It also consists of laying down standards for the materials, substitutes, sources of supply etc.
- Material Purpose: - this consists of locating and developing sources of supply, market research for purchasing, calling of tenders, selection of suppliers, negotiations, contracting and issuing of purchase orders.
- Store Keeping: - This involves receiving and custody of purchased materials. The materials should be stored in such a way that handling and damage caused is minimum.
- Inventory Control: - This is a system of locating, storing and recording of goods so that they can be made available to the actual site at minimum total expenditure.
- Quality Control and Inspection: - Quality control is the control of quality during manufacturing. Inspection consists of comparing the actual products against previously laid down standards and specifications.
- Material Handling: - From the receipt of goods, inspection in the storage and issue for use, materials should be handled in such a way so as to cause minimum damage.
- Disposal of Surplus, Obsolete and Scrap stock: - if surplus, obsolete and scrap stock is held in possession, this involves inventory carrying, storage and security costs. Hence, this should be disposed of as soon as possible.