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.