Key Terms — Purchasing and Material Management Purchasing is “the process by which an individual, » company (oF other organization) contracts with third parties to obtain goods and services required to fulfill its business objectives in the most timely and cost-effective manner.” Procurement is the whole process whereby all classes of resources (people, material, facilities and services) required by an organization is obtained. ‘Supply chain is “a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system,” I entails the planning, steering and controlling of the whole flow of material and services in a network of collaborating companies Material mamagemeni is an integrated management approach to planning, acquisition, conversion, flow and distribution of production materials form the raw materials sule wo the finished procuct state. It is concemed with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point Cough distribution, Therefore, material management is a scientific technique, concerned with Planning. Organizing &Conuol of flow of materials, from their initial purchase to destination.