This chapter discusses materials management. Material can be defined as “equipment, apparatus and supplies used by an organization for the purpose of consumption or rendering services”. Management seeks to maximize outputs from a given quantum of inputs. Materials management is a total system, consisting of several subsystems designing, purchasing, receiving and inspection, storage, inventory control, standardization, value analysis, quality control, production, distribution, packaging, insurance etc. Aim of materials management is to ensure that there is adequate stock of items all the time, so that there is continuous supply, but at the same time eliminating chances of wastage. The main objectives of purchase department can be enumerated as procurement of materials and supplies of the right quality, right quantity, at right price, from right source and at right place and time.