Materials Management is simply the process by which an organization is supplied with the goods and services required to achieve its objectives of buying, storage and movement of materials. As per the International Federation of Purchasing and Materials Management Materials management is a total concept having its definite organization to plan and control all types of materials, its supply, and its flow from raw stage to finished stage so as to deliver the product to customer as per his requirements in time. This involves materials planning, purchasing, receiving, storing, inventory control, scheduling, production, physical distribution and marketing. It also controls the materials handling and its traffic. The materials manager has to manage all these functions with proper authority and responsibility in the material management department.
Material Management is an important management activity to streamline production activities. Even before the production begins it is necessary to ensure availability of all the types of materials needed for production and its supply at the various production centers. Hence market research and forecasting are carried out. Planning, purchasing and scheduling are the main functions of materials management that aims at improved productivity. Apart from management of material cost and its supply it helps in proper utilization, transportation, storage, handling and distribution of the material.
Activities such as materials handling, packaging, warehouse planning, accounting, scrap, surplus and obsolete materials disposal, finished goods safety and care are managed by the materials management department. The selection of personnel for marketing, purchasing, inventory control, stores management and materials handling and their training and placement is also the job of the materials management department. It also helps in the marketing, sales promotion and control of all the types of materials for its quantity, quality and cost.
