The Role of Material Management on Organizational Performance: A Case Study in Commercial Bank of Ethiopia

Abstract

Recently, the Ethiopian financial sector experienced higher growth, which coincides with the Persistent profit trend and data obtained from the respective banks shows that the largest share of expense are attached with material cost. Owing to this fact the main aim of this thesis is to identify the role of material management on organizational performance in particular of commercial bank of Ethiopia; the study, with the owe of the above Fact, will employs qualitative and quantitative research design utilizing both descriptive & inferential statistics  using of census sampling method.The thesis result reveals the study established that there is practice of planning and using it, but federal proclamation is not well obeyed. This concluded that the bank’s endeavor to material procurement is not backed by proper practice based on law. In addition, inventory control system is employed only averagely that it lacks consistency and profundity. However, annual inventory practice is carried out in the bank implying linger of a year to get information on materials procured and used.

Keywords: Material management, Procurement, material handling, Purchasing, material inspection, inventory control.