Risk management is key enabler in materials management (A study on significance of risk management in materials management)

Abstract

Materials are basic core organs of any product it occupies around 40 to 60% of total cost of production. The science of materials management has its own specialised dominie in the business management. Materials management will attempt resolve the issues viz., materials shortages, delays in supply, price fluctuations, damage and wastage, and lack of storage space. Managing productivity and cost effectiveness of material is very essential. Inventory management system involves procurement, storage, identification, retrieval, transport and supply to production in effective and efficient methods. Risk is inevitable and inherent in any concern. Risk management plays very crucial role in modern business arena as a protecting and safeguarding the business. The life of any production entities depends on effectiveness of materials management. Therefore, Risk management must be synchronized with material management. The modern risk management tools and techniques we will reap the prospective results with safety and security of business operations. This paper makes an attempt to emphasise the importance of risk management in materials management.