## Material Control System
Material control is a systematic control over the procurement, storage and usage of material so that an even, uninterrupted flow of material is maintained.
### Objectives of a Material Control System
| Objective | Explanation |
|---|---|
| Minimising interruption in production | Keep all necessary materials available at all times so production never stalls |
| Optimisation of material cost | Reduce total material cost — purchase price + ordering cost + holding cost — without sacrificing quality or reliable delivery |
| Reduction in wastages | Avoid losses from poor storage, deterioration, and obsolescence (production-related losses are handled by the production department) |
| Adequate information | Maintain accurate records to detect losses/pilferage and aid production planning |
| Timely order completion | Fulfil orders on time, improving goodwill and customer satisfaction |
### Requirements of Material Control
For the system to work, the following must be in place:
1. Department coordination — between finance, purchasing, receiving, inspection, storage, accounting and payment functions.
2. Purchase procedure — a clear process to buy on the best terms after proper inquiry.
3. Standard forms usage — standardised forms for orders, receipts and issues.
4. Material budgets — for materials, supplies and equipment to ensure cost efficiency.
5. Internal check system — so every transaction is approved and verified.
6. Proper storage — designated areas with safeguards against damage/loss.
7. Perpetual inventory — continuous inventory with regular checks of quantity and value.
8. Stores control and issue — timely issue of correct quantities through a controlled store.
9. Controlling accounts & records — detailed and summary records from receipt to consumption.
10. Regular reports — on purchases, issues, balances, returns and defective units.
### Elements / Operations of Material Control
Material control breaks into three elements:
- Material procurement control
- Material storage control
- Material usage control
These are achieved through efficient functioning of: purchasing, receiving, inspection, storage, issuing materials, maintenance of inventory records, and stock audit.