Materials management

Materials management is one of the most important functions in the supply chain, and it encompasses both the ability to plan and execute supply chain operations. To be more specific, the skill that companies utilise to plan their complete material needs is called materials management. The functions of procurement and any other functions that are involved in sourcing the material are informed of the needs. Materials management is also responsible for establishing material replenishment plans, determining inventory levels to hold for each type of inventory (raw material, work-in-progress, and finished goods), and communicating information regarding material needs throughout the extended supply chain. These responsibilities fall under the umbrella of "determining the amount of material to be deployed at each stocking location across the supply chain" and "determining the inventory levels to hold for each type of inventory."

The terms "Materials Manager," "Inventory Control Manager," "Inventory Analyst," "Material Planner," and "Expediter" are all examples of typical jobs in Materials Management. There are also developing hybrid roles, such as "buyer planner."

The fundamental commercial purpose of materials management is to guarantee a supply of material, maintain optimal inventory levels, and achieve the least amount of variance possible between what was anticipated and what really occurred.