Materials Management - Explained
What is Materials Management?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is Materials Management?
Materials Management (MM) is a grouping of the organizational functions responsible for the planning, sourcing, stocking, manufacturing, control and distribution activities of materials used in the internal and external fulfillment of demand.
Typically the term also includes all logistical activities that controls the transmission of tangible, physical materials through the value chain such as shipping and transport, distribution and warehousing, quality control, work in progress and manufacturing.
Assessing Material Management?
The effectiveness of MM is generally measured by:
- Accomplishing on time delivery to the customer
- Accomplishing on time delivery from the supply base
- Attaining a freight budget
- Inventory shrink management
- Inventory accuracy