Organization of Material Management:
To facilitate planning direction control and co ordination of various activities related to material in an enterprise thee should be a separate department of materials management. The organizational structure of a materials management depends upon the size and nature of organization. Generally the function of materials management is organized in the followings two ways.
Materials Management as Prime corporate Function: In the enterprises where materials management holds a key role in the management of the organization and is considered as a prime or top level corporate activity, it is placed in charge of the materials manager. The materials manager directly reports to the chief Executive. Materials management is treated as an important area of management like production marketing finance and personnel. For example in enterprises where the cost of materials constitutes a major part of cost of production instead of considering materials manager sub ordinate to the work manager he is put par with him.