Comparative Study of Conventional Material Management with Advanced SAP Technique

Abstract

Material management is simply the process by which an organization is supplied with the goods and services that it needs to achieve its objectives of buying, storage, and movement of material, Efficient material management is very essential. The construction materials may constitute more than 60% of the total cost for a typical construction project so that effective and proper material management can be proved very cost effective.The materials requirements planning, purchasing, inventory planning, storage, inventory control, materials supply, transportation and materials handling are the activities of material management. Material management is made problematic by material shortage, delays in supply, wastage and lack of storing place. Proper material management can improve the productivity and cost efficiency of a project and help to ensure its timely completion. The material management system attempts to insure that the right quality and quantity of materials are appropriately selected, purchased, delivered and handled on site in a timely manner and at a reasonable cost. This paper contains the different methods used by the construction companies and also describes the main results of survey carried out in Pune in different construction companies for their current material management process.