Planning and Managing the Material Inventory

Planning and managing the material inventory is one critical aspect of construction management and major emphasis has to be laid on this key issue. There are umpteen kinds of materials which are used during the process of building and construction and hence timely procurement of all the desired things has to be ensured, as this is critical for the final outcome of the project. The organization has to have business friendly relationships with the suppliers so that the supply chain does not get affected at any point. The communication between the managers and the suppliers is one crucial aspect as it has been observed that in most of the cases the difference in specifications and standards regarding material is present, this as a result affects the overall performance of the firm. Links must be established with more than one supplier so that the suppliers cannot grow on the bargaining power. The managers and the suppliers must meet in person on weekly basis so as to eliminate any sort of confusion, this is one thing which will help in harmonizing the viewpoints of both the parties and will ensure that the materials supplied and produced are up to the specified requirements.

Direct material cost is a chief cost item and thus wastage of material inventory is one thing which has to be minimized as much as possible, because eliminating this phenomenon is not possible. Wastage of material increases the cost of manufacturing and on the other side the time is more consumed, which as a result affects the final outcome, profit account and the firm’s reputation in the market. Supervision is of key importance in this regard, it has been observed that in most of the cases where the material abnormal loss is more the reason is either the lack of supervision or the distortion in the communication channels. It must be started clearly to the supervisors that material losses will not be tolerated; in addition to this the firm must announce incentives for the supervisors who restrain the normal and the abnormal loss of the materials by their teams and manage the inventory well. This move will surely motivate the entire workforce and the on field supervisors.  

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