This study investigates the influence of material management on the profitability of the manufacturing company, 7up. The location of the study was a bottling industry in Kaduna, and a total of 100 employees were sampled. A self-constructed questionnaire was utilized to collect data, and the outcome was analyzed using the simple percentage approach; chi square was also used to test the hypothesis. The instrument’s validity and dependability were determined. The result of the study indicates that material management has a positive effect on the profitability of the organization because material management affects product output, which in turn affects profitability. Manufacturing firms in Nigeria are encouraged to increase their resource commitment to staff training in Materials Management in order to develop skills, update knowledge, enhance new product development, and create indigenous labor.
1.0 Introductory Remark
Clearly, every business maintains records, which constitute a crucial element of the organization. Any company that is established to produce goods or services, or both, must use materials in all of their operations, and these resources must be handled effectively in order to fulfill their goals.
Materials management is one of an organization’s most technologically advanced decisions. Thus, it is necessary to determine when, how, and by whom materials will be handled. It includes the processes of packing, transferring, and storing items. Note that there was no unique approach in use in the past.
However, several technologies are utilized now, including the Automated Guided Vehicle (AGV) and the Automated Storage and Retrieval System (ASRS).
1.1 Background of the Research
Material management dominates organizational operations and hence strives to modify management processes.
In all types of companies, it is evident that management effort is frequently devoted to the effective and efficient administration of materials. In addition, management practices have realized that a practical and comprehensive commitment to materials management is the only way to assure success in the current environment.
Materials management is not merely a technique, but a philosophy based on the belief that 7Up Plc, Kaduna Plant’s long-term success depends on a uniform commitment to materials management, which can be achieved through the interaction of the analytical and holistic abilities of the personalities involved.
1.2 Description of the Problem
As we all know, materials management is considered the “lifeblood” of every organization. Unfortunately, the majority of businesses have outsourced their materials management tasks to substandard personnel.
Therefore, the primary issue of the study is the unethical practices at the 7Up Plc Kaduna facility, which include the placement of unqualified individuals on functional positions for which they lack professional competence, overbilling, and the inaccessibility of local raw materials. In addition, there is a concern with material waste and theft at the 7Up Plc, Kaduna factory.
1.3 Objectives of the Research
Determine the impact of material management on a manufacturing company’s product output.
Analyze the impact of material management on a manufacturing company’s profitability.
3. investigate the issues of material management in manufacturing firms
1.4 Investigative Question
What impact does material management have on a manufacturing company’s product output?
Does material management have any effect on the profitability of a manufacturing company?
What obstacles do manufacturing businesses face in managing materials?
1.5 Importance of the Research
This study would contribute to the body of knowledge on the topic of “materials management” and assist managers at the 7Up Plc Kaduna facility in addressing the implications of stock taking, stock checking, and stock recording in the organization, as one of materials management’s most important components.
It would help managers to increase productivity and reduce or eliminate material-related issues for students and firms beginning materials management operations.
In general, it will aid management in decreasing material waste and theft, as well as improving material use.
1.6 Scope of the Research
This study focuses on materials management as a productive tool at the Seven Up (7-Up) Nigeria Plc Kaduna facility. The study would examine the operational procedures of the Seven Up (7Up) Nigeria Plc Kaduna plant from 2008 to 2012 (from the identification of new orders to the distribution of ordered products to the user department).
1.7 Limitations of the Research
In every study endeavor, the researcher will inevitably encounter obstacles. Lack of cooperation from subjects or objects, resulting in the use of smaller-than-anticipated sample sizes, a low return rate on questionnaires, and an inability to use the correct data collection instruments due to ignorance of their availability are among the difficulties anticipated during this research study. Another drawback was the staff’s attitude during organization visits. Despite all the obstacles, I was able to conduct the research successfully in the end.
1.8 Explanation of Terms
Stocks are raw materials of varying qualities that are kept in a warehouse.
This is a building or structure designed for the safe storage of materials.
Logistics is the process of averaging the movement and storage of products and materials from their point of origin to their final location of consumption.
These are materials that are produced in predetermined amounts by authorized departments.
These are stock goods that have grown obsolete and are no longer useful to the company.
Distribution Requirement Planning (DRP): This is a demand placed by customers at their sites of consumption or demand.
A stockyard is an open-air location where commodities can be stored for a fair period of time without significant deterioration.
Work in Progress (WIP) refers to inventories of partially completed or partially assembled materials.
Scrap consists of wastes, discarded or leftover materials or parts resulting from manufacturing or other processes.