CHAPTER ONE
INTRODUCTION
1.1   BACKGROUND OF THE STUDY
This research work is titled the Effect of Materials Management on resource Utilization in Organization. A case study of 7up Bottling Company PLc  Kaduna.
Arnold (1998) said that the wealth of any country is measured by its Gross National Product i.e the output of goods and services produced by the nation in a given time. He further defined materials as those physical objects i.e something we can touch, feel or see. Services are the performance of some useful function such as banking, medical care restaurants, clothing stores, or social services. But that the source of wealth of any country is measured by the amount of goods and services produced. A production process is needed to transform our resources into useful goods. Production takes place in all forms of transformation such as the transformation of resources to manufacture useful products.
There are many stages between the extraction of resource materials and the final consumer product. At each stage in the development of the final product, value is added. Thus, creating more wealth. Japan is a prime example of this, it has very few national resources and buys most of the raw materials it needs. However, the Japanese have developed one of the wealthiest economy in the world by transforming the raw materials they purchased and add value to them through manufacturing. To get value out of our resources, we must design production process that will make products most efficiently. Once the process exist, we need to manage their operation so they produce goods more economically. Managing the operation means planning for and controlling the resources used in the process such as labour, capital, equipment and materials. They are all important but the management plans through effective flow of materials. The flow of materials controls the performance of the process. if the right materials in the right quantity are not available at the right time, the profitability and even existence of a company, will be threatened.
Stevenson (1993) defined materials as all physical items used during production process. they includes not only the parts and raw materials that becomes the finished goods, but also the physical items needed to support the production process such as fuel, lubricants, tools, machinery, forms and anything else that is purchased, moved, stored or shipped.
Follet (2001) defined management as the act of getting things done through people by planning, organizing, directing, coordinating and controlling.
Stevenson (1993) defined materials management as the activity that is concerned with purchasing, storing, and movement of materials during production and with the distribution of finished goods.
George (1993) said that, materials management is an aspect of industrial management which is concerned with all activities that may include production control, inventory, purchasing, expenditure, traffic, materials handling, welfare, receiving, shopping, scrap and surplus, disposition and customer services.
Billington (1995) defined materials management as the process by which goods and services that an organization needs to achieve its objectives of buying, storage and movement of materials are required.
Lyson (1996) defined materials management as the management process which integrates the flow of supplies into, through and out of an organization to achieve a level of services that ensures that the right materials are available at the right place at the right time, at the right quantity, right quality and at the right cost.   
Arnold (1998) said materials management is a coordinating function responsible for planning and controlling materials flow, in order to maximize the use of the formed resources and also provide the required level of customer services.
Iornum (2007) defined materials management as an integrated management approach to the planning, purchasing ware housing, storekeeping, allocation and movement of needed materials from one place to another. He further said that its also, the management of goods and materials that involves purchasing, storage, control and transportation.
Knod (2008) defined materials management to incorporate a broad set of activities related to acquiring, moving or handling, storage and control or monitoring of materials, thus, purchasing, distribution and other supply-chain management duties could be included.