Integrated materials management

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Under integrated materials management refers to the comprehensive consideration of all material-related functions , which also deal with both the supply operation, the market, as the customers.

The main goal is to generate synergy effects .

General

The functions of materials management are

Depending on how far these functions are integrated into the materials management of a company, one can differentiate between 3 variants:

  • "integrated" materials management
  • "extends integrated" materials management and
  • "totally integrated" materials management.
Integration levels of materials management

Possible levels of integration

"integrated" materials management

In the simplest case, only the procurement , storage , transport and disposal functions are considered together. The procurement area ends with the handover of the materials to production or with the handover of the goods to the shipping department. This classic form is used in many companies.

"extends integrated" materials management

Here you go one step further by also integrating the production planning and control function . Production is therefore also included in this form, which can result in coordination options with the other functions of materials management. The expanded, integrated materials management is a prerequisite for production-synchronous delivery (JIT).

"totally integrated" materials management

In this broadest form of integration, distribution is also included. Due to the wide field of action, there are also the greatest possible coordination and possibilities to resolve the conflict of objectives between capacity utilization, inventory reduction and reduction in throughput time .

Which form is used depends on the action potential of materials management, i. H. the " power " of materials management within the company. With a low action potential there is only a low degree of integration, with a high action potential there is the possibility of a high degree of integration.

Organizational form of an integrated materials management

is characterized by

  • Holistic planning and control of the flow of materials and goods, which in the end enables clear responsibility and control
  • easier coordination between order flow and material supply, which leads to shorter waiting times, resp. Avoidance of unnecessary inventory can result
  • clear responsibility for tied up capital in stocks at all storage levels
  • clear responsibility for the readiness to deliver towards production and the sales market

Integration into the organization

The integrated materials management is a cross-sectional function, i. H. several areas of the company are affected. In terms of the type of integration, a distinction must be made between that in a functional organization and that in a divisional organization.

Functional organization

In a functionally structured company , integrated materials management can be carried out from a central point.

Divisional organization

For a divisional structured company it is advisable to set up a central office "materials management" has what policy competence with respect to the materials management positions in the divisions.

Application in practice

In the area of repeat production , due to the possibility of standardizing production, a higher form of integration is most likely to occur. In the case of individual production , it is very difficult to achieve an "extended integrated" materials management due to the changing production programs. Incidentally, empirical studies have shown that the variants with a high degree of integration are rarely used. However, companies as a whole are increasingly adopting an integrative approach.

aims

The integrated materials management should lead to a holistic management of the material flow from the supplier to, in the strongest form, the customer.

The consideration of factual and temporal interdependencies in the flow of goods should result in synergy effects . An example of such a synergy effect is when the "extended integrated" materials management can optimize the production program in such a way that the readiness for delivery remains high despite the reduction in stocks. This would lead to the resolution of the trade-off between low stock levels and a high level of readiness for delivery.

literature

  • Oskar Grün: Materials Management and Logistics . In Jürgen Hauschildt, Oskar Grün: Results of empirical business research , Verlag Schäffer-Poeschel, Stuttgart 1993, pp. 379-422, ISBN 3-7910-0678-9
  • Erwin Grochla: Basic organizational concepts for materials management . In: Lutz J. Heinrich, Klaus Lüder: Applied business administration and corporate management , Verlag Neue Wirtschafts-Briefe, Berlin 1985, pp. 171–186, ISBN 3-482-56731-X
  • Horst Hartmann: Materials Management ; Organization, planning, implementation, control, Deutsche Betriebswirte Verlag, 2002, ISBN 3-88640-094-8
  • Dieter Kluck: Materials Management and Logistics , Schäffer Poeschel Verlag, 2002, ISBN 3-7910-1953-8

See also