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Materials management is a core supply chain function and includes supply chain planning and supply chain execution capabilities. Specifically, materials management is the capability firms use to plan total material requirements. The material requirements are communicated to procurement and other functions for sourcing. Materials management is also responsible for determining the amount of material to be deployed at each stocking location across the supply chain, establishing material replenishment plans, determining inventory levels to hold for each type of inventory (raw material, WIP, finished goods), and communicating information regarding material needs throughout the extended supply chain.

Typical roles in Materials Management include: Materials Manager, Inventory Control Manager, Inventory Analyst, Material Planner, Expediter and emerging hybrid roles like "buyer planner".

The primary business objective of Materials Management is assured supply of material, optimum inventory levels and minimum deviation between planned and actual results.