Materials management

What is materials management?

A company's materials management is responsible for the efficient planning, organisation and control of activities relating to the entire material flow. The scope varies depending on the industry and company and is essentially made up of the areas of procurement, warehousing, material distribution and disposal. Individual functions can also be assigned to company departments such as purchasing or controlling.

Overall, materials management plays a decisive role in a company's key value creation processes. It contributes significantly to the competitiveness and long-term stability of a company and coordinates and optimises all processes from warehousing and internal transport to the provision of materials for production. The overriding aim is to reduce costs. This includes purchasing and distribution costs. In addition, material objectives such as ensuring the fulfilment of requirements and material liquidity as well as social objectives such as environmental protection and recycling should be achieved.

Efficient management in materials management makes a decisive contribution to a company's competitiveness and long-term stability.

1. correct quality: guaranteeing the required quality standards.
2. correct location: delivery of the materials to the intended location.
3. the right quantity: obtaining the required quantity, neither too much nor too little.
4. right time: delivery at the optimum time to avoid production interruptions.
5. right source: selecting a reliable and qualified source of supply.
6. right price: achieving an economically justifiable price for the materials.

The scope of materials management is broad and the subordinate functions, also known as materials planning, include materials planning and control, purchasing, warehousing and inventory management. Efficient management in materials management makes a decisive contribution to a company's competitiveness and long-term stability.