Materials Management Practices in the Construction Industry

Materials management is an integrated process that consists of the people, organizations, technology, and procedures used to effectively identify, quantify, acquire, expedite, inspect, transport, receive, store, and preserve the materials, equipment, and associated information across the life cycle of a capital project. The goal is to ensure that the correct quality and quantity of materials and equipment are procured in an effective manner, obtained at a reasonable cost, and available when needed. The implementation of a comprehensive materials management program contributes to more-predictable project outcomes, reduced costs, improved productivity and quality, and a safer working environment. This makes the early and comprehensive involvement of materials management in capital projects very important. This paper describes a study in which the purpose was to identify materials management techniques that reflect current and emerging practices in the capital projects industry. Surveys, interviews, and case studies involving 54 organizations were used to accomplish this purpose. The study clearly shows a dramatic increase in the maturity, formality, and systematic approach to materials management.