Production Management

14 Main Objectives of Materials Management Read NOW

Materials Management is a very important function for the efficient production plan in an organization. The objectives of materials management cannot be treated in isolation. They are meant for furthering objectives of the enterprise as a whole. Materials management aims at reducing the cost of production and distribution so as to help the whole of the enterprise.

Materials management is a critical aspect of any business operation, ensuring the efficient handling, storage, and distribution of materials and resources. It plays a pivotal role in achieving an organization’s goals and maintaining a competitive edge in the market. In this article, we will delve into the objectives of materials management, shedding light on its significance and the various aspects it encompasses.

Objectives of Materials Management

1. Introduction

Materials management involves the planning, organizing, and controlling of all activities related to the procurement, utilization, and disposal of materials in an organization. It encompasses a wide range of objectives that collectively contribute to the overall success of the business.

2. Ensuring Adequate Inventory Levels

One of the primary objectives of materials management is to ensure that the organization maintains optimal inventory levels. This prevents both overstocking and understocking situations, which can lead to increased carrying costs or production delays.

3. Cost Reduction

Efficiency in materials management leads to cost reduction. By optimizing processes and minimizing waste, organizations can achieve significant cost savings in their operations.

4. Efficient Procurement

Materials managers focus on sourcing materials at the right price, from reliable suppliers, and with favorable terms. This objective helps in cost control and ensures a continuous supply of materials.

5. Quality Control

Maintaining the quality of materials is crucial to producing high-quality products. Materials management involves quality control measures to ensure that only the best materials are used in the production process.

6. Streamlined Production

Efficient materials management contributes to streamlined production processes, reducing bottlenecks and ensuring that products are manufactured promptly.

7. Timely Delivery

Materials must be available when needed. Timely delivery of materials to the production line is a key objective to avoid production delays.

Objectives of materials management
Objectives Of Materials Management

8. Risk Management

Materials managers assess and mitigate risks associated with materials, such as price fluctuations, supply chain disruptions, and quality issues, to minimize potential adverse impacts on the business.

9. Vendor Relationships

Cultivating strong relationships with suppliers is essential in materials management. These relationships can lead to better pricing, preferential treatment, and a more reliable supply chain.

10. Sustainability

In today’s environmentally conscious world, sustainability is a critical objective. Materials management involves responsible sourcing and disposal practices to minimize the environmental footprint.

11. Compliance

Adherence to regulations and industry standards is paramount. Materials managers ensure that the organization complies with all relevant laws and guidelines.

12. Technology Integration

Embracing technology is essential to modern materials management. Integrating software and systems enhances efficiency and accuracy in tracking materials.

13. Employee Training

Materials management objectives include ensuring that employees are well-trained in handling materials safely and efficiently.

14. Waste Reduction

Reducing waste in materials management is not only cost-effective but also environmentally responsible. This objective aligns with sustainability goals.

15. Conclusion

In conclusion, materials management is a multifaceted discipline with numerous objectives. From cost reduction to sustainability and compliance, each objective plays a vital role in an organization’s success. Efficient materials management ensures that resources are utilized optimally, leading to improved competitiveness and profitability.


1. Why is materials management important for businesses?

Materials management is crucial for businesses as it helps in cost reduction, quality control, timely production, and sustainability, ultimately contributing to the organization’s success.

2. How can materials managers reduce waste?

Materials managers can reduce waste by optimizing inventory, improving procurement processes, and implementing efficient disposal and recycling methods.

3. What role does technology play in materials management?

Technology enhances materials management by providing tools for inventory tracking, demand forecasting, and supplier communication, leading to increased efficiency.

4. Why is vendor relationship management essential in materials management?

Vendor relationships are crucial as they can lead to favorable pricing, reliable supply chains, and preferential treatment, benefiting the organization’s materials procurement.

5. How does materials management contribute to sustainability?

Materials management promotes sustainability by responsible sourcing, minimizing waste, and adopting eco-friendly disposal practices, reducing the environmental impact of operations.

Materials Management help in achieving its objectives helping organization in :

1. Its growth,

2. maximization of service to customers by supplying them standard quality goods in required quantity at the right time at a reasonable competitive price,

3. providing goods working conditions to its employees and offering scope for their advancement, and

4. its very survival.

High level Objectives of Materials Management

The main objective of materials management is, therefore, to help the enterprise to attain its total objectives. It may do so by :

1. Maintaining the continuity of production by

(a) purchasing goods of right quality, in right quantity at right time, from a right source, on right terms and conditions and at a comparatively low cost, and

(b) ensuring uniform flow of materials;

2. Efficiently controlling the inventories:

3. Economizing on the use of imported goods and stimulating import substitution so as to conserve the rare foreign exchange.

4. Establishing good buyer-seller relation;

5. Making arrangement for working capital and using it for production purposes;

6. Coordinating the efforts of own personnel along with those of the whole enterprise;

7. Helping the organization to grow and advance in technical skill; and

8. Maintaining ethical standards.

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