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A Systematic Literature Review of Material Management In Construction Industry

Raghavi N S 1, Ramitha N1, Priya Dharshini S1, Mathura Yaazhini L1

Raghavi N S 1, Undergraduate Student, Bachelor of Architecture

Professor : Ar. Shivachandran 2 , Dr. Alan Sekaran 2

Faculty Of Architecture , Design and Planning , Karpagam Academy of Higher Education , Coimbatore , Tamil Nadu , India ***

Abstract - Materialmanagementisacrucialandintegral function in the construction industry, significantlyimpactingproject efficiency, cost control, and overall success.It involves a comprehensive process that includes planning, material take-off, vendor evaluation, procurement, transportation, storage, inventory control, and on-site distribution, all of which must be carefully coordinated to ensure thetimelyavailability of resources. Since material costs constitute a majorportionof total project expenditure, effective management is essential tomaintainfinancial stability, prevent cost overruns, and achieve competitive project delivery. Inefficiencies such as poor planning, inaccurate estimation, improper storage, and delays in material supply can lead to significant losses in labor productivity and disruptions in project schedules. Implementing a well-structured material management system enhances workflow, improves work-face planning, and ensuresoptimalutilizationof resources. The adoption of modern software technologies and tracking systems has transformedmaterialmanagementintoamoretransparent and data-driven practice, allowing real-time monitoring, reduced wastage, and improved accountability.Ultimately, effectivematerial management serves as a vital link between planning and execution, ensuringtimelyproject completion, improved productivity, and sustainable cost optimization, thereby contributing to the overall success andprofitabilityofconstructionprojects.

Key Words: Material Management, Construction, Inventory,Planning,ProcurementandProductivity

1. INTRODUCTION

In any industry whether service, manufacturing, production, or construction five fundamental resources play a crucial role: material, man, money, machine, and time. Among these, materials are one of the most significant componentsastheydirectlyinfluence thecost, quality, and overall progress of a project. This is particularly evident in the construction industry, where materials alone contribute to nearly 50–60% or more of thetotalprojectcost.Becauseofthishighcostshare,even small inefficienciesin material handlingcanleadtomajor financiallosses.Therefore,effectivematerialmanagement becomesessentialforachievingprojectsuccessintermsof

cost efficiency, timely completion, and desired quality standards.

Materials management is a coordinated and systematic approach that ensures the availability of materials in the right quantity, quality, place, and time, while maintaining minimum overall cost. It integrates various interrelated activities such as planning, procurement, transportation, storage, and utilization into a single streamlined system. Ineffective material management often results in delays, cost overruns, wastage of resources, and reduced labour productivity. On the other hand, efficient management improves workflow continuity, enhances coordination among departments, and contributes significantly to better project performance. Due to these reasons, materials management is considered a core and indispensablefunctioninbothconstructionandindustrial sectors.

Materials management can further be defined as an integrated process that involves planning, sourcing, purchasing, storing, handling, and controlling materials from the stage of requirement identification to their final utilization. It ensures a smooth and systematic flow of materials across all stages of a project lifecycle. The primary focus is to deliver the right material at the right time and place while maintaining cost effectiveness and qualitystandards.Itsobjectivesincludeproperestimation of material requirements, timely procurement, safe and efficient storage, effective inventory control, and smooth distribution. Additionally, it supports key functions such as demand forecasting, production scheduling, standardization, and value engineering, thereby minimizing wastage, avoiding excess or shortages, and improvingoverallproductivityandoperationalefficiency.

The materials management process typically begins withidentifyingtherequirementatthesiteandcontinues through planning, estimation, procurement, transportation, inspection, storage, and final usage. Despiteitsimportance,severalchallengesexist,especially in small-scale industries, such as limited financial resources, dependence on a limited number of suppliers, lack of proper forecasting methods, and inadequate storage facilities. Furthermore, insufficient adoption of

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advanced technologies and lack of skilled personnel can lead to inefficiencies, delays, increased costs, and poor inventory control. However, when implemented effectively, materials management has a significant positive impact by reducing wastage, optimizing resource utilization, improving cash flow, ensuring consistent quality, and strengthening supplier relationships, thereby contributing to long-term sustainability and competitiveness.

The objective of this paper is to analyse the role and significance of materials management in improving project efficiency, cost control, and productivity in constructionandrelatedindustries.Itaimstoexaminethe processes, techniques, and challenges associated with materials management and to emphasize the importance of adopting systematic approaches and modern technologies for enhancing project performance and achievinglong-termorganizationalsuccess.

2. LITERATURE REVIEW

[1] Georgekutty C. K., Dr. Georgemathew - have given theconclusionandreportoftheextensiveliteraturereview and data collected from various site visits and questionnaire surveys. Theresearcheshave tried to address various problems in construction industries thatgenerally causetime and cost overruns in this aspect; they have focused on materials management inconstructionindustry. The data collected was statistically analyzed by various tools and techniques likeStatistical Package for Social Sciences (SPSS), Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis(CFA)andvariousconstantsareused.Afterthese, aspects where materials management in construction industrylacksisidentifiedandaddressed.

[2] Narimah Kasim - Developingmaterialsmanagement‖ thispaperisforecastthatinthenearfuturetheremaybea move towards the conscious development of materials management within manufacturing industry. This development will be based upon management recognition of the significance of materials management, combined with extensive pressure upon the costs and efficiency in the functions which make up the materials management systems. There will be a number of urgent motivating factors,ensuringthatsolutionsarefoundtoovercomeany difficulties, and that change takes place to introduce the materials management concept. The final outcome is forecastto bean integrationof the materials management function into one group; with the explicit task of, maintaining a constant flow of product, reducing costs where feasible, and improving relationships with both suppliersandotherfunctionswithinthecompany.

[3] Narimah kasim - intelligent materials tracking systemforconstructionprojectsmanagement‖Thispaper

An essential factor adversely affecting the performance of constructionprojectsistheimproperhandlingofmaterials during site activities. In addition, paper-based reports are

mostlyusedtorecordandexchangeinformationrelatedto thematerialcomponentswithinthesupplychain,whichis problematic and inefficient. Findings from a literature review andsurveys showedthat there isa lack of positive examples of such tools having been used effectively. Therefore, this research focused on the development of a materials tracking system that integrates RFID-based materials management with resources modelling to improveon-sitematerialstracking.Rapidprototypingwas used to develop the system and testing of the system was carried out to examine the functionality and working appropriately. The proposed system is intended to promote the employment of RFID for automatic materials tracking with integration ofresource modelling(Microsoft Office Project)in the projectmanagementsystem inorder to establish which of the tagged components are required resources for certain project tasks. In conclusion, the system provides an automatic and easy tracking method for managing materials during materials delivery and inventorymanagementprocessesinconstructionprojects.

[4] R. Shreena Shankari , D. Ambika , S.S. Kavithra - a review on waste material minimization in construction industry. This paper is materialwastehas been identified as a major problem in the construction industry. Studies from various sites confirmed that even the materials that are least wasted like glass, electrical fixtures, paints etc.Representsarelatively certainpercentage on construction cost. These materials also have an adverse effect onenvironment. Materials are very important on building sites, and all the materials that are delivered are notusedforthepurposesforwhichtheyhadbeenordered and disappearance of these materials constitute a part of wasteandithasanegativeeffectonenvironmentandalso effectsthecontractorsprofitabilityConsideringmaterials.

[5] Elijah E. Ogbadu (2009) - madea researchto increasethe profitthrough proper management of materials. For that,ninety four(94) copies of questionnaires were distributed out of whicheighty six(86)werefilledandusedfortheresearch.Alleighty-six respondentsapprovedthatthedeliveryofpoorqualityraw materials is a hitch of materials management. He came to the conclusionthat,the inefficiencies, breakdown andshut downof the plant decreasethe profitability. Establishing goodrelationshipwith suppliers of spare parts for minimizing losses arising from frequent breakdown improvesprofitability.

[6] P. Gopalakrishnan and M. Sundaresan, (January 2007) - When asked to describe the largest issue they face in organizing maintenance work, manyplannersand supervisorsreply"Finding materials and getting them to therightplaceattherighttime".SparePartsandmaterials arealargepartofanyplant'scostsandnothavingtheright materials in the right place at the right time is a common causeofproductivitylossandreducedreliability.

[7] Madhavarao k. Mahindra - a critical analysis of material management techniques in construction project|| In this report construction sector, material management playsmajorroleforeffectivecompletionoftheproject.The

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

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cost of project increases when the planning, material identification system is poor. Shortage and deficiency in storageofmaterialwillcauselossesinlabourproductivity. To maintain the effective management, to achieve the timely supply of materials and equipment and to reduce the cost of projects, a well-planned material management programisrequired.Thisimprovesplanning,higherlabour productivity, proper schedules and lower project costs. This paper explains about the techniques for material management for construction project by using S-Curve, ABC Analysis for clear understanding the management of four important construction materials. By implementing these techniques, we have found an optimized way to reducethecostoftheproject.UsingS-curvetechnique,the variation in planned cost and actual cost is assessed. Quantity of materials procured for the project should be determinedbytheusingA-B-Canalysis.

[8] Patil Ashwini R., Pataskar Smita V - mainlyfocused on variation in planned Vs actual material cost through S curve analysis and applying inventory control technique soastomaintainsufficientstockofrawmaterialinperiod ofshortsupply,toprotectinventoryagainstdeterioration and control investment in inventories, to keep it in an optimum level and to minimize stock out problems, to minimizes the total cost of inventory. In this research, inventory control techniques which were used are ABC analysisandEconomicOrderQuantity(EOQ)technique.It also gives the Qualitative information regarding deviation in planned and actual materials in terms of S curve analysis using MSP tool and reasoning over the deviation is essential to know the effect of material planning before execution of project. Various comments on S curve analysishavegivenintermsofproblemsofadministrative causes, consultant's causes, contractor's faults, and unavailability of resources. These major reasons of changesbetweenactualcostofmaterialsandplannedcost ofmaterialsareaddressedinthispaperindetail.

[9] Nigeria, Olatunjiaiyetan, John small woodimproving materials management effectiveness||This research provides a literature review in the field of uncertainty dampening methods for manufacturing systems, and proposes a new model to improve materials management effectiveness in materials requirements planningenvironments.Theliteraturereviewgivesriseto a classification framework of the models along nine structural dimensions that refer to the safety buffer treatment, the environmental characteristics and the type of approach. On the basis of the classification framework, the proposed model provides guidelines for approaching the problem of dimensioning, positioning and managing safety stocks against demand uncertainty. The effectiveness of the proposed model has been tested by comparing it to the traditional approach, through a computer-basedsimulation.

[10] Caldas Carlos H., et al - have described the results of their study which was aimed to identify materials

managementsystemthatreflectscurrentandemergingin capital projects industries. This research was done by surveys, interviews and case studies that involved 54different organizations. Set of different practices, conceptsandissuesrelatedtomaterialsmanagementwas formed collectively and the responses given by organizations are given in form of percentage. With the help of the extensive data collected with this research, different aspects and stages of materials management system are addressed in detail. The research paper conclude by highlighting importance of proper materials management system and also one of the main points explained here is use and up gradation of modern IT systemsformaterialsmanagementinconstructionrelated industries.

[11] Khyomesh v. Patel (pg student) prof. Chetna m. Vyas (ph.d. cont.) - construction materials management onprojectsites||Thispaperiswrittentofillavoidcreated by the absence of proper materials management on construction sites. To managing a productive and cost efficient site efficient material management is very essential.Researchhasshownthatconstructionmaterials andequipmentmayconstitutemorethan70%ofthetotal cost for a typical construction project. Therefore the proper management of this single largest component can improve the productivity and cost efficiency of a project and help ensure its timely completion. One of the major problems in delaying construction projects is poor materials and equipment management. This paper describes the main results of survey carried out in Ahmedabadthatinvestigatedthematerialmanagementof 3wellknownbuildersofAhmedabad.

[12] Ss. Asadi - improving materials management on Construction projects -this report is An essential factor adversely affecting the performance of construction projects is the improper handling of materials during site activities. Materials management is made problematic by materials shortages, delays in supply, price fluctuations, damage and wastage, and lack of storage space. The results were used to develop a real-time framework for integrating RFID-based materials tracking and resource modelling. It is concluded that the prototype system developed can improve materials management on construction projects. And to improve the real-time management of materials on sites, and hence improve projectperformance.

[13] Bernold and Treseler(1991) - stated that the performance of suppliers is related to the success of the material managementsystem,thusselectionofvendors is a very important aspect. They introduced the Concept of BestBuy.BestBuyassumescertainlevelofsuitability,but considers cost and procurability, transportation and disposal. Best Buy not necessarily means best price, procurement and technical specifications should also be considered. In addition, other factors such as

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

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specifications, price, delivery time, etc. shouldbe considered.MaterialManagementanintegratedapproach

[14] Greeshma C., K. Harish - aimed to find out the various materials management tasks and their priority, problemsthatarefacedinmaterialsmanagementprocess and their occurrence. The data was collected by the authors by survey and questionnaire. The index and priority number is given for individual point considered under materials management. After analyzing data, researchers have attempted to develop materials management software that will be helpful for materials managementonthesiteandwillgiveeaseinformaterials managementprocessesonsite.

[15] Karoriya Deepak, Dr. PandeyMukesh - mainly focused on Economic Order Quantity (EOQ) technique used for materials management in construction industry. Theresearchershavetriedtopresenttheliteraturereview and data collected from various surveys related to the materialsmanagement.Variousproblemsthatarefacedin materialsmanagementinconstructionindustryonsiteare also addressed. According to the researchers, EOQ technique can prove to be helpful to minimize the cost overrunproblemsdueimpropermaterialsmanagementin constructionindustry.Thepartofpaperaddressesinbrief aboutmaterialswastagemanagementontheconstruction site.Theresearchershavetriedto explainhowEOQhelps to order the perfect required amount of materials at the particulartimeatrightplace.

[16] Roger Antony A., Navodaya V. - haveexplainedan automatic technique approach to overcome some of the errors that take place during materials management process. In this approach a combination of Near Field Communication (NFC) & Global Positioning System (GPS) technologies isused for materialsmanagementwhichhas potentialtofacilitatelowcost,easetoimplementsolutions to identify materials and components and to track those. This system is fully automatic. This system provides effective identification and tracking in all phases like production, transportation, on construction site. In this paper the system is explained with basic principle, workinganduse.

3. RESULT AND DISCUSSION

Theanalysisoftheliteratureandcompileddatahighlights the critical aspects influencing effective material management in construction projects. The results, represented through the pie chart, indicate that material cost constitutes the most significant concern, followed by the adoption of inventory control techniques and issues related to delays, planning, and waste management. Additionally,emergingfactorssuchasICTintegrationand material tracking systems demonstrate a growing importance in improving efficiency and control. The flow diagram further supports these findings by illustrating

thatmaterialmanagementisacontinuous,interconnected process, where inefficiencies at any stage can impact overall project performance. Together, these insights emphasizethatawell-coordinated,systematicapproachis essentialforoptimizingcost,reducingwaste,andensuring timelyprojectexecution.

FLOW CHART: Flow of Materials Management Process

NeedIdentification(Site)

MaterialPlanning&Estimation

PurchaseRequest(Indent/BOM)

SupplierSelection

Procurement

Transportation&Logistics

Receiving&Inspection

Storage&InventoryControl

DistributiontoSite

Usage&WasteControl

PIE CHART : Analysis of Major Material Management Issues

4. CONCLUSION

The review shows that the main issues in material managementarehighmaterialcosts,poorplanning,delays in getting materials, lack of proper control, material wastage, poor tracking, and weak coordination between

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

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suppliersandsite.Tosolvetheseproblems,itisimportant to follow a well-organized material management process withproperplanningandtimelypurchasing.Usingsimple digital tools and tracking methods can help in better monitoring of materials. Improving communication with suppliers, reducing waste, and storing materials properly can help improve overall efficiency, reduce costs, and ensureprojectsarecompletedontime.

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