What is construction materials management, and why is it imperative for specialty contractors to control it?
Construction materials management (CMM) is a core function of supply chain management and, as we all know, crucial to successful and profitable projects. It involves planning and executing supply chains to meet the objectives and requirements for project delivery to all construction firms. These requirements include controlling and regulating material flow while simultaneously sourcing, purchasing, receiving, storing and using construction materials. It is a critical component of any construction project, as it can have a significant impact on the project's cost, schedule and quality.
Construction material and purchasing managers assess the units and cost of material required and held in inventory. They also plan schedules for stocking and inventory levels for each item, including raw material, work in progress or finished goods. Communicating information and requirements to procurement operations and the extended supply chain is a critical objective. Purchasing and materials management also involves:
Assessing material quality to meet customer requirements
Achieving the lowest cost
Meeting deadline-driven project schedules
Material management embraces all of the activities related to materials and is an essential business function that benefits every project and most likely includes equipment and machinery.
Typical roles in materials purchasing and management include inventory analysts, inventory control managers, materials managers, material planners, expediters and hybrid roles like buyer/planners.
Regardless of role, materials management's main objective is to ensure a seamless supply of material, optimized inventory levels, minimized deviation from planned.
