Material management involves planning, directing, and coordinating activities related to materials and inventory. It aims to control material flow in relation to demand and price changes. The objectives of material management are to select materials with low operating costs and high quality, receive and control materials safely, issue materials with proper authorization, identify and reduce surplus stocks, minimize storage and control costs, purchase best quality items, and minimize waste during material handling.

2. Definition
Material management is the planning , directing ,
controlling and coordinating those activities which
are concerned with material and inventory.
It deals in material quality and quantity
Controls the flow of material in relation to changes in
variables like demand , price.

3. Objectives Of Material Mgmt.
Material Selection
Low operating cost (without affecting the quality)
Receiving and controlling the material safely and in
good condition
Issue material upon receipt of appropriate authority
Identification of surplus stocks and taking
appropriate measures to reduce it
To minimize storage and control costs
By minimizing waste while handling of material
To purchase items of best quality

4. Duties Of Material Manager
Purchasing of raw material
- Selection of suppliers
- Delivery of material on time
- To look for new products
• Production control
- Proper schedules for production
- Time control
• Inventory and stores control
- Record of inventory
• Traffic (shipment of RM & FG )
- Selection of carriers
- Developing technique to reduce transportation cost
• Physical distribution ( final goods to customers )

5. Factors responsible for providing
economy in Material Mgmt.
Volume of purchase
Plant near the source of material
Fluctuations in price of material
Design and engineering of the product ( design of the
product should be simple so that
Design of the equipment
Inspection of the material before placing the order

6. Importance of Material Mgmt.
Ensure regular supply of material
Minimizes waste
Transportation costs associated with material are
checked
Shortages can be eliminated
Better utilization of resources
Timely supply of raw material

7. Importance of Material Mgmt.
Ensure regular supply of material
Minimizes waste
Transportation costs associated with material are
checked
Shortages can be eliminated
Better utilization of resources
Timely supply of raw material