The main essentials of materials control are as follows.
* There should be a proper co-operation and co-ordination among the departments dealing with material purchasing, receiving, testing, storing, production planning and accounting.
* There should be a centralized purchasing department.
* There should be a proper perpetual inventory system, which reflects physical movement of stocks and their current balance.
* There should be a good method of classification and codification of materials.
* There should be a standard forms for requisitions, order, issue, return and transfer of materials.
* There should be carefully planned materials storage facilities to avoid losses from damage, evaporation, pilferage, theft and deterioration.
* Materials and supply should be properly stored.
* Stock of different levels should be fixed to ensure that there is no under and over-stocking of materials.
* The quantity of each type of materials to be ordered should be fixed to reduce the ordering and carrying costs.
* There should be an effective system of internal check to ensure that all transactions relating to materials are automatically checked.
* Receiving and inspecting procedures must be fixed in advance.
* There should be a proper co-operation and co-ordination among the departments dealing with material purchasing, receiving, testing, storing, production planning and accounting.
* There should be a centralized purchasing department.
* There should be a proper perpetual inventory system, which reflects physical movement of stocks and their current balance.
* There should be a good method of classification and codification of materials.
* There should be a standard forms for requisitions, order, issue, return and transfer of materials.
* There should be carefully planned materials storage facilities to avoid losses from damage, evaporation, pilferage, theft and deterioration.
* Materials and supply should be properly stored.
* Stock of different levels should be fixed to ensure that there is no under and over-stocking of materials.
* The quantity of each type of materials to be ordered should be fixed to reduce the ordering and carrying costs.
* There should be an effective system of internal check to ensure that all transactions relating to materials are automatically checked.
* Receiving and inspecting procedures must be fixed in advance.