The Assessment of Materials Management practice in Private Business Firm: Case Study in Medhin Commercial PLC

Abstract

One of the problems facing integrated business making company is the growing trend towards the higher cost of materials and services and a down ward rocketing of business profit due to Material Mismanagement problem that leads toward total bankruptcy. The main objective of the study was to assess Material Mismanagement practice in Medhin Commercial PLC which has been running integrated business operations (Manufacturing, Merchandising and Rental business operation) under one umbrella of family business management system and the empirical study of the paper focused on this business firm. The researcher implemented triangulation research method based on Secondary data and primary data collection methods in this study. The target population of the study was 130 employees of Medhin Commercial PLC. A sample of 96 respondents were selected from this population using the purposive sampling technique out of three groups (6 managers. 20 store workers and 70 other employees) that directly or indirectly deal with materials management practice. Data was collected through a structured questionnaire, consisting mainly of closed ended and open-ended questions and analyzed through descriptive statistics such as frequency table and percentage. The study showed that the materials management practice in the company was poorly organized and led by unskilled manpower who made the company to incur unnecessary additional cost in its operations. The study recommended that Medhin Commercial PLC should adopt effective material management practice led by professionals to be sustainable and competitive in business.