10 Facts About Materials management

Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities.

Specifically, materials management is the capability firms use to plan total material requirements.

Materials management is responsible for determining the amount of material to be deployed at each stocking location across the supply chain, establishing material replenishment plans, determining inventory levels to hold for each type of inventory, and communicating information regarding material needs throughout the extended supply chain.

Primary business objective of Materials Management is assured supply of material, optimum inventory levels and minimum deviation between planned and actual results.

Goal of materials management is to provide an unbroken chain of components for production to manufacture goods on time for customers.

In some companies materials management is charged with the procurement of materials by establishing and managing a supply base.

Materials management managers have striven to determine how to manage these issues in the business sectors of manufacturing since the beginning of the industrial revolution.

Materials management often get's overlooked, even though successful projects are a result of a successful blend of labour, materials and equipment management.

Materials management is the process of planning and controlling material flows.

Materials management requirement planning systems and procurement systems are well-liked in the industry.