Materials Management

Materials management is an essential business function. It is concerned with managing materials, one of the four basic resources (labour, material, equipment, capital). Until recently, it was concerned with purchasing raw materials and very few parts from local markets. Raw materials were used to make most of the parts for making end products. Materials management was regarded as a routine function and was given less importance. But over the years, firms began to procure more and more parts and subassemblies from local as well as global markets. Today over 50% of the revenue of the firms goes for procuring materials, parts and subassemblies from outside. As a result, materials management function has evolved from a clerical buying function into a strategic business function that helps firms to survive and grow. It creates competitive edge by creating superior value by delivering quality product or service on time and offering lower cost by cutting its own cost as well as cutting purchased item cost.Very few of the available texts offer a comprehensive view of the subject & data and examples and cases in the context of Indian industries are limited.The contents of the subject are undergoing rapid changes. Earlier, purchasing was mostly confined to raw materials by manufacturing firms whereas now a large part of it consists of parts, subassemblies and assemblies, beside raw materials. A smaller number of suppliers are preferred now-a-days. Global sourcing is an accepted norm. A change in supplier relations from adversarial to partnership is evident. Lot sizes and lead-times are smaller and there is greater use of information technology.The book is designed to provide comprehensive coverage of the field of materials management by including emerging concepts, practices, tools, techniques, heuristics and quantitative models. Other features of the book include:v Important topics like outsourcing, purchase strategies and enterprise resource planning.v Cases from Indian industries on vendor managed inventory, outsourcing, and spare parts inventory.v Definition of key terms.v Questions at the end of each chapter and answers of selected questions.The book can serve as a text for undergraduate and postgraduate level courses on materials management in the institutes of management, engineering and technology, materials, industrial engineering, operations research and others. It can also serve as a reference for managers, engineers, consultants, and others interested in the field.