These, together with purchasing and raw materials handling, are generally grouped under the materials management function. Sometimes the objectives set by the management for these functions clash and cause a drop in the level of the customer service and/or a rise in physical distribution costs as a whole. Production is the focal point of all this activity, because production levels determine the needs for raw materials, parts, etc., and also the amount and types of finished products, which in turn influence the delivery times and modes for the distribution function.
Materials management is the ‘single manager’ organization concept embracing the planning, organizing, motivating and controlling of all activities and personnel principally concerned with the flow of materials in an organization. If the physical distribution concept is adopted by a business, it is usual to combine all activities concerned with raw materials under a single manager, who is sometimes also responsible for production scheduling. These activities are similar to those concerned in physical distribution of finished products, the difference being in the materials handled and their recipients.
