Costs and Benefits of Materials Management Systems

Abstract

Construction professionals are recognizing the need to focus on the materials management process as a proactive, identifiable entity that has a significant impact on the cost of construction. In recent years construction contractors have developed integrated, or “total concept,” materials management systems (MMS) that combine and integrate the takeoff, vendor evaluation, purchasing, expediting, warehousing, and distribution functions. These materials management systems produce tangible benefits in the areas of improved labor productivity, reduced bulk materials surplus, reduced materials management manpower, and cash flow savings. The cost of developing and implementing these systems can be substantial, but the benefits outweigh the costs, particularly when the system is used by the crafts for scheduling their work around bulk material availability.