Workshop on Effective Materials Management

Program Overview

Materials management is a branch of Supply Chain Management that is concerned with the input phase of the business. It has two big functions under it also that is Procurement/Purchasing and Stores. Procurement is the act of obtaining or buying goods and services observing the rights which used to be 5R’s and now 8R’s. The process includes preparation and processing of a demand as well as the end receipt and approval of payment.

Specification and standardization of materials is very crucial to the success of purchasing function. Procurement cannot achieve much if other functions are not supportive so, there is need to work together as a team to satisfy and delight their customers.

Stores are to receive, store it and issue out when materials are needed. Materials Planning and handling are also critical functions of it.

For Whom:

Materials Managers, Procurement Managers, Inventory/Stores/Warehouse Managers, Officers, Supervisors, Operations, Production Managers etc.

Learning Objectives

At the end of this workshop the participants will be able to:

• develop understanding of procurement and its functions;
• examine the purchasing cycle, and manage it for deliver effective and efficient service services to their customers;
• run procurement function as a profit center through their operations and customer service;
• develop understanding of general stores activities; and
• run warehouse/store as a profit Centre.

Course Outline:

Day 1: Introduction to Procurement

• Definition
• Purchasing Rights (5R’s, 8R’s 25R’s)
• Purchasing cycle and its documentations
• It’s contribution to business success
• Developing an SOP for procurement
• Relationship with other functions

Day 2: Procurement Operations

• Materials planning to meet operational needs
• Planning Inventory to meet
• Market/customer demand
• Negotiation with market research
• Forecasting and scheduling
• Inventory management

Day 3: Purchasing and Customer Service

• Supplier Development and Relationship Management
  • Internal customer satisfaction
  • External customer satisfaction
  • Handling of complaints from customers

• Stores/Warehouse Activities:
  • Stock identification and Coding System
  • Store/warehouse area – design, partitioning, (receiving and issuing bay)
  • Materials/People movement in store areas

Day 4: Warehouse and Stores Management

• Goods receiving procedures
• Issuing Methodology – FIFO, LIFO etc.
• Dispatch/Distribution procedures
• Materials handling Techniques
• Procedures for Handling of shortages,

returns/reverse, damages etc.

• Materials Costing: cost, standard, marginal

and average pricing

• Stock Taking – periodic, continuous,

and spot checking

• Effective documentation of every activity

Day 5: Inventory Management –      

• Types of inventory or Classes of Inventory
• Inventory Planning and Control –
• Stock Replenishment

      – provisioning, Stock Levels, Two Bin System etc.

• Stock Control Models

– MRP 1, MRP 11, ABC, JIT/JIC, etc.

Warehousing and Stores Safety and Security

• Good House Keeping procedures

       – cleanliness, fumigation, environmental issues

• Health and Safety Act and its observations

– safety practices etc.

• Stock/Materials segregation:

flammable and non-flammable

• Stores markings with signs:

no smoking, no sleeping under materials

• Security of materials, building, employees and

 visitors, fire prevention, access to stores etc.

Training Methodology

Lectures, discussions, exercises, case studies, audio-visual aids will be used to reinforce these teaching/learning methods.