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THE IMPACT OF MATERIAL MANAGEMENT ON PURCHASING

 

 

ABSTRACT

There is significance in investigating the problems that surrounded the distribution of material management in marketing organization. Therefore, this extended essay attempts to examine the raw materials and scare, production has become complex and the number of goods strategies for improving the alternative sources are required and new product needed in distributing channels are being managed. We all know that goods/materials, cannot reach the ultimate consumer/industrial users without a checking of the problem of distribution management. Based on the research made on the extended essay recommendation were made. To minimize irregularities in the allocation of their products, the company should be out to visit their various channels when the company has different product line by each distributor will have the exact of his allocation. Sales representatives should be out to visit their various retailers and acquire information about their product and the problem they face before getting the product. In order to solve channel conflict the organization should be established personal relationship between representatives of channels members.

 

CHAPTER ONE

1. Introduction

 

Material Management was first discovered as very important function during the Second World War. After industrial revolution industries are sprining up in hundred everyday activities, raw materials and scare, production has become complex and the number of goods, components and raw materials have increased to thousand account head to be prepared and customer need to be attended to writing a short period of time. Alternative sources are required and new product need improvements and development with these problems in minds materials management in modern industries intends to have stated an attack these problem in a scientific manner to achieve optimum sources hence professionalism.

 

With the introduction of materials management into modern industries, the following advantages have accrued.

1. High sales
2. Good records
3. Low cost of requisition and processing
4. Constituency of qualities
5. Favourable supplier relations
6. Good storage facilities

 

Thus, the importance of materials management lies in the fact that any significant contribution made by materials management in reducing material cost will go long way in improving profitability and the rate of returns on investments. Today, material are the live hoods of any industries. No industrial concern can operate without them. They must be made available at the proper place, right source, right quality and at the proper price.