International Trade

Running Head : International Trade

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Question 2 : Efficient Material Management Function

Every department in an organization requires proper management for the effective functioning of the whole organization . If the material management function is efficient , an international business can effectively compete in the global market . Material management incorporates inventory control , production , purchasing , store management and waste management among others (Smith , 2001

Efficient material management ensures that the right amounts of resources are used for any

particular undertaking through production planning . This means that wastage is reduced since there is optimal use As a result , expenses on materials will be reduced hence maximize on profits (Smith , 2001 . Production planning will also ensure that all the requirements needed by the various departments are established in advance so that cases of shortage leading to delays in production are avoided

The purchasing function is bestowed with the duty of ensuring that the best quality materials are bought so that production is gives best quality products . The quality of products is the one that determines the competitive edge of the company 's products (Smith , 2001 . At the same time , the material manager must ensure that there is a budget prepared at the beginning of every year so that the allocation of funds is effectively done . A budget helps the company to plan ahead and allocate all departments with the rightful materials so that production runs smoothly

Store management enables the company to keep control of...