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Materials Management Definitions: The process, which integrates the flow of supplies into, through and out of the organisation. The planning, organisation and control of all aspects of inventory embracing procurement, warehousing, work in progress and distribution of finished goods. Purpose: The balance between costs and performance (service level) What costs should we consider when acquiring drugs or any other goods or services? How can these costs be controlled or reduced? supplier 95% supplier 95% supplier supplier 100% supplier A typical supply chain supplier 95% Pharmacy supply chain (therapeutic substitution) Tender Evaluation Exercise Evaluate the tenders and identify your preferred supplier. Explain the reasons for your decisions.