MATERIALS MANAGEMENT AND ITS EFFECT ON COST OF SUPPLIES

Background: In most organizations within the country (Ghana), materials management has been relegated to the background without any proper control. This means that companies are investing heavily in materials than is necessary. Problem: How can materials management minimize the cost of supplies in Cocoa Processing Company of Ghana? Purpose: The aim of this research is to illustrate how the application of materials management concept can minimize the cost of supplies in Cocoa Processing Company of Ghana. Methods: With regards to primary data, interviews (face-to-face, telephone) and questionnaire were used. Secondary data has been sourced through literature from the university library and internet sources, qualitative design method was chosen over others because of the nature of the research work. Conclusion: Financially, materials (inventories) are very important to manufacturing companies and on the balance sheet they usually represent from twenty to sixty percent of total assets. Therefore, if the application of the concept of materials management is accepted with well qualified personnel, it could lead to the minimization of cost. The function of a materials manager is to promote coordination and integration within the supply chain and the major benefits are assumed to be; reduction in interdepartmental conflicts, reduction of inventory levels, increased knowledge of total corporate operations and reduction of materials handling costs among others.