Introduction about Materials Management

Definition

The process that organization use to plan, organize and control the steps use to manage tangible components within its business process. Materials management is affected by operating environment which are government, economy, competition, customer and quality. The raw materials flow into a manufacturing company from a physical supply system, they are processed by manufacturing and finally finished goods are distributed to end consumers through a physical distribution system.

The Objective of Materials Management:

• Maximize the use of the firms resources
• Provide the required level of customer service.