Evolution of Material Management

Material is the central item and activity of any organization. Organizations exist for material, works for material and due to material. The main purpose of any organization is to make profit, this profit or loss is generated due to material. Every organization deals with material whatever be the business.

As early as the nineteenth century, purchasing which is a division of logistics, was regarded as an independent and important function by many of the US railway organizations. The first book that was specifically devoted to purchasing, entitled THE HANDLING OF RAILWAY SUPPLIES- THEIR PURCHASE AND DISPOSITION was published in 1887. Since the beginning of the twentieth century there were several movements in the evolution of purchasing or materials management functions, as depicted below:

In the 1990s it became clear that organizations must have an efficient and effective purchasing and materials function if they were to compete successfully in the domestic and international markets. The future will see a gradual shift from the predominantly defensive strategies to aggressive ones in order to remain competitive. Organizations will take an imaginative approach for achieving their materials management objectives to satisfy long term and short term goals.