Materials management is a core function of supply chain management that involves planning and executing supply chains to meet material requirements. It is the process of planning and controlling material flows, including planning and procuring materials, supplier evaluation and selection, purchasing, expenditure, shipping, receipt processes for materials (including quality control), warehousing and inventory, and materials distribution. The goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for customers.
Materials management is vital to ensure that manufacturers have all the raw materials they need to make goods, and it also focuses on ensuring that no components are wasted and optimizing inventory maintenance and management. It crosses the line between purchasing, logistics, and inventory management, making it vital for processes reliant on raw materials, machinery, and maintenance, among others. Materials management uses inventories and production requirements for planning and control to ensure materials are available as required to meet production schedules.
Typical roles in materials management include inventory analysts, inventory control managers, materials managers, material planners, and expediters, as well as hybrid roles like buyer/planners. Materials management systems embrace all of the activities related to materials and are a basic business function that adds value to a finished product.
In summary, materials management is the process of planning and controlling material flows to ensure that manufacturers have all the raw materials they need to make goods, and it involves planning and procuring materials, supplier evaluation and selection, purchasing, expenditure, shipping, receipt processes for materials, warehousing and inventory, and materials distribution. It is a vital function of supply chain management that adds value to a finished product and requires understanding what materials are needed and where to source them, as well as inventory management and storage.
