MATERIAL MANAGEMENT FOR A MEDIUM

SIZED ORGANIZATION
Amandeep Singh, RB1703A11

Abstract: Companies of different sizes has different approaches for their Enterprise
Resource Planning (ERP) over a range of issues and they are also different for their
benefits. Larger companies may report improvements in their financial measures whereas
smaller companies report better performance in their manufacturing and logistics. This
paper briefly introduces network technology and database technology which the
management system for materials make use of.

INTRODUCTION
Materials management is the branch of logistics that deals with the tangible components
of s supply chain and if we talk about it specifically then it covers the acquisition of spare
parts and replacements, quality control of purchasing and ordering such parts with the
standards involved in ordering, shipping and warehousing of these parts.

The need to coordinate and share information across the organizations and functional
groups has resulted in the development of higher level positions designed to oversee
various supply chain activities and these activities fall under the supply chain umbrella.
Materials management was a consolidation of functions required to purchase, manage
inbound transportation for, receive, store, inventory and schedule materials flows.
Physical distribution then tool the finished products to market either directly or through
warehouses and this greatest growth of the materials management concept occurred
during the mid-1960s to late 1970s.

Advances in software and systems have enables visibility across the supply chain that
allow multiple participants to coordinate and schedule more efficient material
information and processes and ideally, there is increased access to demand forecasts,
production requirements and inventory levels at any point within the supply chain. The
result of this integration will be lower inventories, shorter cycle times and an improved
ability to plan and lower costs.

Management Information System (MIS) is introduced to the medium sized organization

to make material management system of the organizations more scientific, material
management more standard and material business process more rational. This system is
finished on the basis of the .NET platform at most of cases, according to the long-tem
work experience of materials management by material department of the company and
instructed by the theory of management information system. Cost control is the main line
and data organization as the core for material management system. It embodies the
integration of the cash flow information and logistics.
The system is composed of a number of information subsystems to implement the result
of transaction processing, management control and auxiliary decision-making and it also
achieves the effect of reducing the intensity of work, highly sharing of information
through authorized network, uniform standard of work, facility of operations and
reducing the resources and management costs, greatly accelerating the process of
comprehensive information of the company.

Size definitions
The legal definition of "small" varies by country and by industry. In
the United States the Small Business Administration establishes
small business size standards on an industry-by-industry basis, but
generally specifies a small business as having fewer than 500
employees for manufacturing businesses and less than $7 million
in annual receipts for most nonmanufacturing businesses.[1] The
definition can vary by circumstance – for example, a small
business having fewer than 25 full-time equivalent employees with
average annual wages below $50,000 qualifies for a tax credit
under the healthcare reform bill Patient Protection and Affordable
Care Act.[2]
In the European Union, a small business generally has under 50
employees. However, in Australia, a small business is defined by
the Fair Work Act 2009 as one with fewer than 15 employees. By
comparison, a medium sized business or mid-sized
business has under 500 employees in the US, 250 in the
European Union and fewer than 200 in Australia.
In addition to number of employees, other methods used to classify
small companies include annual sales (turnover), value
of assets and net profit (balance sheet), alone or in a mixed
definition. These criteria are followed by the European Union, for
instance (headcount, turnover and balance sheet totals). Small
businesses are usually not dominant in their field of operation.
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