Materialwirtschaft
Also: Material Management, Materialmanagement, Materialwirtschaft (MW), Materialversorgung, Werkstoffwirtschaft
AI-generated
Materials management refers to the overarching area of planning, procurement, storage and provision of materials within a company. It connects purchasing, demand planning, inventory management and logistics into a seamless supply process.
Key facts
- Materials management is the umbrella term for demand planning, procurement, inventory management and material provision within a company.
- The choice of the right planning method – consumption-based, plan-based or manual – depends on the item structure and demand behaviour.
- Incorrect item master data is a common cause of overstocking or stockouts and directly affects service levels and capital commitment.
- Purchasing and logistics sometimes pursue competing objectives within materials management, which must be reconciled through clear control rules and shared service level definitions.
What is materials management?
Materials management is the business umbrella term for all activities related to a company's material requirements – from demand determination through procurement to provision at the point of consumption or dispatch. It typically encompasses demand planning, disposition, order processing, inventory management and valuation, goods receipt, and the internal material supply of production or picking operations. In this way, materials management forms the link between purchasing, warehousing and production.
How does materials management work in practice?
In day-to-day operations, materials management rarely runs as an isolated process. Demand signals arise from sales planning, production orders or minimum stock levels and trigger disposition decisions. Depending on the item structure and demand behaviour, different methods are applied:
- Consumption-based planning, for example via reorder point procedures or Kanban, when demand is steady and easy to forecast.
- Plan-based planning via MRP (Material Requirements Planning), when dependent requirements are derived from bills of materials.
- Manual planning for individual procurement or special materials.
Inventory management ensures that stock levels are correctly reported and valued at all times. Safety stocks and reorder levels protect against supply disruptions, but at the same time tie up capital. Striking the right balance between availability and capital commitment is one of the central control tasks of materials management.
In ERP systems, these processes are usually closely interlinked: master data such as order quantities, lead times and planning parameters control automated workflows. Incorrect master data is a common cause of overstocking or stockouts and should be reviewed on a regular basis.
What matters when designing the system?
The choice of the right planning methods depends heavily on the item structure. An ABC analysis helps to focus resources on value-relevant items. In addition, an XYZ analysis allows assessment of demand consistency. Regular review of planning parameters is essential, particularly in dynamic assortments or where seasonal demand is involved.
Purchasing and logistics must be closely coordinated: lead times, minimum order quantities and pricing structures directly influence which stock levels make economic sense. Differing objectives – purchasing aims for low purchase prices, while warehousing wants availability – require clear control rules and a shared understanding of service levels. Whether and how these objectives are balanced within a given organisation often depends on the vendor and the company itself, and cannot be generalised.
Related terms
- ABC-Analyse
ABC analysis is a method for classifying items, vendors, or processes into three priority classes (A, B, C) based on their economic significance. It forms the basis for differentiated decision-making in warehousing, inventory management, and procurement.
- Artikelstammdaten
Item master data refers to the permanently valid base data of an item – such as dimensions, weight, packaging units, hazardous goods classification, and best-before date relevance. It forms the foundation for all logistical, procurement-related, and system-driven processes along the supply chain.
- Bedarfsermittlung
Requirements planning refers to the systematic process by which an organization's future material or goods requirements are determined in terms of quantity and timing. It forms the basis for inventory management, procurement, and warehouse planning.
- Bedarfsplanung
Demand planning refers to the systematic process by which a company determines what quantities of materials, goods, or resources are needed and when. It forms the foundation for inventory management, procurement, and warehouse planning.
- Beschaffung
Procurement refers to the systematic process by which a company sources materials, goods, and services from external suppliers. It encompasses all steps from requirements identification through vendor selection to order placement and goods receipt monitoring.
- Beschaffungsplanung
Procurement planning refers to the process by which a company systematically determines which materials or goods need to be sourced, in what quantities, at what time, and from which suppliers.
- Bestand in der Logistik
In logistics, inventory refers to the quantity of goods physically present or recorded in accounting at a specific point in time – including raw materials, semi-finished goods, and finished products. It is a key control variable because it ties up capital while simultaneously ensuring the ability to deliver.
- Bestandsführung
Inventory management refers to the system-supported administration and continuous updating of all warehouse and material stocks within a company. It forms the basis for planning, procurement and accounting – and ensures that the book inventory and physical inventory are in agreement at all times.
- Bestandsmanagement
Inventory management refers to the systematic planning, control, and monitoring of stock levels across the entire supply chain. The goal is to ensure delivery capability while keeping capital commitment and warehousing costs within economically viable limits.
- Bestellpunktverfahren
The reorder point method is a replenishment procedure in which an order is automatically triggered as soon as the current stock level falls below a predefined reorder point.
- Disposition
Disposition refers to the operational planning and control of resources, quantities, and orders in logistics – for example in transport or materials disposition. It encompasses capacity assignment, scheduling, prioritization, and response to disruptions.
- Dispositionssoftware
Dispatching software is a software solution for the operational planning, control, and optimization of transports, routes, and resources in logistics. It helps dispatchers efficiently coordinate orders, capacities, and time windows.