Chapter 1: Organize materials movement

Organizing the movement of materials is a critical function within procurement management that directly affects operational efficiency, cost control, and timely delivery of goods. In Kenya, procurement professionals must handle a wide range of materials moving through diverse sectors such as manufacturing, construction, retail, and wholesale distribution. Effective organization ensures materials are available where and when needed, reduces wastage, and supports compliance with regulatory frameworks like PPADA (Public Procurement and Asset Disposal Act). This chapter explores how to systematically organize materials for movement and the various categories of materials encountered in professional procurement practice.

1.1 Organizing materials for movement

Organising materials for movement means planning, coordinating and controlling how goods are moved from one place to another, so that the right materials reach the right place at the right time and in good condition. It matters in procurement because movement decides stock levels, storage cost, delay in work and the risk of damage and loss. Example: a building materials supplier that schedules cement, steel bars and roofing sheets to reach a construction site in the order in which the builders need them avoids both idle workers and goods piling up in the open.

Planning materials movement

Planning is done before the move. It decides what is needed, when, how it will travel and who will handle it.

• Demand forecasting: estimating requirements from past use and current work prevents shortages and overstocking.
• Route selection: choosing the shortest safe route reduces travel time and fuel cost, especially where roads are poor.
• Allocation of resources: vehicles, handling equipment and staff are assigned to match the volume and nature of the load.
• Scheduling: deliveries are timed so that receiving staff and equipment are ready, which prevents queues at the gate.
• Risk assessment: hazards such as bad roads, theft and the dangers of the goods are identified, and contingency plans are made.

Coordinating materials movement

Coordination keeps suppliers, transporters, stores and users working to the same plan.

• Communication: suppliers, drivers, storekeepers and users share delivery dates and changes.
• Documentation: delivery notes, waybills and import papers are prepared and checked so that goods are not held up.
• Tracking: barcodes or vehicle tracking show where goods are.
• Problem resolution: breakdowns, delays and wrong deliveries are dealt with quickly.
• Compliance: the movement of hazardous goods follows the rules of the authorities concerned.

Controlling materials movement

Control checks that the move is done as planned.

• Inspection at dispatch and receipt: quantities and condition are checked at both ends, so that losses and damage are found early.
• Stock reconciliation: physical stock is matched to records.
• Performance measures: delivery time, transport cost and incident rate are monitored.
• Security: sealed loads and controlled vehicle entry protect high-value goods.
• Audit: regular reviews confirm that policies and contracts are followed.

Using technology to organise materials movement

Technology gives the movement team accurate and current information for planning, coordination and control.

• Inventory management systems: record stock levels and every movement, so that planners see what is available and where.
• Transport management software: plans routes, schedules shipments and tracks vehicles, which reduces manual errors.
• Mobile applications: drivers and field staff update delivery status at once, so that stores and users know when goods will arrive.
• Barcode and RFID tagging: speed up scanning and reduce errors when goods are handled and received.
• Data analytics: movement records are analysed to find routes, delays and costs that can be reduced.

1.1.1 Definition of terms

Five terms are used throughout this unit. Each has a precise meaning, and the terms are linked: materials are moved and handled within a logistics system, which forms part of the supply chain.

1.1.1.1 Materials

Materials are all the physical items that an organisation buys, stores and uses to carry out its work. They include raw inputs, consumable supplies, tools, spare parts, fuels, chemicals and packaging. Example: for a garage, materials include engine oil, spare parts, cleaning chemicals and welding gases.

• Direct materials: become part of the product or service, such as timber in a furniture workshop.
• Indirect materials: support the work but do not become part of the product, such as lubricants and cleaning supplies.
• Value: materials represent money tied up in stock, so they must be controlled.

1.1.1.2 Material handling

Material handling is the movement, lifting, stacking, storage and protection of materials, by hand or with equipment, over short distances within a store, yard or workplace. Its aim is to move materials safely, quickly and without damage. Example: a storekeeper uses a pallet truck to move cartons from the receiving bay to the racks.

• Manual handling: carrying or pushing by hand, which suits light loads.
• Mechanical handling: using trucks, forklifts, conveyors and cranes for heavy or repeated loads.
• Aims: safety of workers, protection of goods, speed and low cost.

1.1.1.3 Material movement

Material movement is the transfer of materials from one location to another, within a site or between sites, such as from the supplier to the store, from the store to the user, or between branches. It involves transport as well as handling. Example: cement moves from a supplier's yard to a depot by lorry, and then from the depot shelves to a building site.

• Internal movement: within a building or site, often by handling equipment.
• External movement: between sites, by road, rail, air or water.
• Linked activities: loading, transport, unloading, receiving and storing.

1.1.1.4 Logistics

Logistics is the planning, carrying out and controlling of the flow and storage of goods, services and information from the point of origin to the point of use, to meet the needs of the customer. It joins transport, warehousing, inventory management, packaging and handling into one system. Example: a distributor's logistics includes ordering stock, transporting it, storing it in the warehouse, picking customer orders and delivering them.

• Transport: moving goods between places.
• Warehousing: storing goods until they are needed.
• Inventory management: keeping stock at the right level.
• Packaging and handling: protecting goods and moving them safely.
• Information flow: orders, delivery notes and stock records that accompany the goods.

1.1.1.5 Supply chain

A supply chain is the network of organisations, people, activities and resources that move a product or service from the original supplier to the final customer. It includes suppliers, manufacturers, transporters, warehouses, retailers and customers, and the flows of goods, money and information among them. Logistics is the part of the supply chain that moves and stores the goods. Example: the supply chain of a hardware shop runs from the cement factory and the timber producer through the transporter and the distributor to the shop and the builder.

• Upstream: suppliers of raw materials and components.
• Midstream: manufacturers and processors.
• Downstream: distributors, retailers and customers.
• Flows: goods move forward, money moves back and information moves both ways.

Chapter Summary

This chapter explored the organization of materials movement by first defining key terms such as materials, material handling, material movement, logistics, and supply chain. It then classified materials into categories including liquids, oils, chemicals, consumables, metals, and gaseous substances, highlighting their diverse nature. The chapter examined the characteristics of materials that influence their handling and storage requirements. Procedures for requisitioning materials were detailed, alongside the common sources of these requisitions within an organization. The process of receiving goods was described, emphasizing important factors to consider and the necessary preparations to ensure smooth receipt of procured items. Inspection of goods was defined and its importance explained, with discussion on factors influencing inspection, various methods used, reasons goods may be rejected, and options for dealing with unwanted items. The chapter concluded by outlining the advantages of thorough inspection and the key documents involved throughout the receiving and inspection processes.