Advantages in Integrated Materials Management Approach

Organisations which have gone in a big way for the integrated materials management usually enjoy the following advantages : 

Better Accountability 

Through centralization of authority and responsibility for all aspects of materials function, a clear cut accountability is established. Various user departments can direct their problems with regard to materials to one central point so that the action can be taken immediately. This helps in evaluating the performance of materials management in an objective manner. 

Better Coordination 

When a central materials manager is responsible for all functions, the departments under the materials manager create an identity which is common. This results in better support and cooperation in the accomplishment of the materials function. The user departments also find that they have to approach one department for discussing and solving their materials problems. This creates an atmosphere of trust and generally, better relations between the user departments and the materials management department. 

Better Performance 

As all the inter-related functions are integrated organizationally, greater speed and accuracy results in communication. Need for materials is promptly brought to the notice by materials planning. Purchase department is fed with stock levels and order status by stores and inventory control departments. All this calls for judicious decisions leading to lower costs, better inventory turnover, reduced stock-outs, reduced lead times and a general reduction in paper work. 

Adaptability to EDP 

The centralization of the materials function has made it possible to design data processing systems. All information with regard to materials function is centralized under the integrated materials management function. This has facilitated the collection, collation and analysis of data, leading to better decisions. Advanced and efficient electronic data processing (EDP) systems can be economically introduced under an integrated set up. 

Miscellaneous Advantages 

Under a central materials manager, a team spirit is inculcated. This results in better morale and cooperation. The opportunities for growth and development are better in an integrated set up. An individual under such a set up is not confined to any one function alone, and he gets, over a period, exposed to broader aspects of the materials function.