Assessment of Materials Management and Profitability of An Organization
Many business organizations in Nigeria fail to appreciate the role of materials management in enhancing their profitability. In most cases, the function seems to be a formality in the system, while in other cases the functions are actually applied strictly. Some organizations are of the belief that material management is just a routine function of the purchasing department thereby reducing it to the background. Arising from this backdrop, this study aims at finding out how an organization can tackle the problems identified and how effective material management can increase the profitability of an organization. The study revealed that material management used by the organization contributes to the profitability of the company, adequate storage facilities prevents interruption on production process among other things. As a result of the above, it was recommended that there should be good record system of materials for the operations of the organization as it affects production and the training of staff to acquire new skills and knowledge needed for the work for the benefit of the organization.