Materials control is necessary for making efficient purchase, storing and consumption of materials. Every manufacturing company requires to maintain a materials control system that facilitates efficient purchase, storage and use of the materials. The needs for materials control system in the company arise due to the following reasons.
1. Economical Purchase
Every manufacturing company should purchase high quality materials at the most economical price. An efficient materials control system ensures how better quality materials can be bought at the economical price, which will finally help reduce the total cost of the production.
2. Minimum Investment
The over-stocking of materials is undesirable to the company, as it raises the cost of production. Therefore, an efficient materials control system helps to avoid over-stocking of materials and thus keeps the investment in materials to minimum.
3. Minimum Wastage
An efficient materials control system helps to carefully handle the materials to and from store houses and factory by trained and efficient store keepers and workers. With the help of an efficient materials control system, therefore , the wastage and losses of materials by fire, theft, leakage and so on can be kept at minimum.
4.Balance On Hand
An efficient materials control system is one which always provides the ready balance of materials on hand in terms of their quantity and value. The perpetual system of inventory control always shows the physical movement of stocks of materials and their current balance in terms of quantity and value.
5. Source Of Information
A proper system of recording materials is a great source of information of materials which helps in the preparation of materials purchasing and production plans.
1. Economical Purchase
Every manufacturing company should purchase high quality materials at the most economical price. An efficient materials control system ensures how better quality materials can be bought at the economical price, which will finally help reduce the total cost of the production.
2. Minimum Investment
The over-stocking of materials is undesirable to the company, as it raises the cost of production. Therefore, an efficient materials control system helps to avoid over-stocking of materials and thus keeps the investment in materials to minimum.
3. Minimum Wastage
An efficient materials control system helps to carefully handle the materials to and from store houses and factory by trained and efficient store keepers and workers. With the help of an efficient materials control system, therefore , the wastage and losses of materials by fire, theft, leakage and so on can be kept at minimum.
4.Balance On Hand
An efficient materials control system is one which always provides the ready balance of materials on hand in terms of their quantity and value. The perpetual system of inventory control always shows the physical movement of stocks of materials and their current balance in terms of quantity and value.
5. Source Of Information
A proper system of recording materials is a great source of information of materials which helps in the preparation of materials purchasing and production plans.