What is meant by materials management?

Materials management encompasses all business activities for the planning, execution, and control of:

• Procurement
• Storage
• Distribution
• Disposal of materials

It plays an active role in ensuring that required materials are available at the right time, quantity, and cost, contributing to inventory efficiency and cost reduction.

Materials include:

• Raw materials
• Auxiliary and operating materials
• Semi-finished and finished products
• Spare parts and tools

Types of materials management:

• Basic (integrated): Storage, demand/consumption monitoring
• Extended: Includes production planning
• Comprehensive: Also includes distribution