119 [CON 13] THE KNOWLEDGE OF MATERIALS MANAGEMENT IN CONSTRUCTION INDUSTRY Naziroh Md Said 1 & Kamaruddin Radzuan 2 1-2 School of Technology Management and Logistics, College of Business, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah nazirohmdsaid@yahoo.com 1 , kamaruddinradzuan@gmail.com 2 ABSTRACT The construction project involves many stages and complex. In construction, materials management is very important, especially in terms of planning and scheduling reservation stock, the required quantity and composition at the construction site. There are reports stated that some contractors do not have the knowledge or do not have experience in managing the materials. The aim of this study is to identify the level of materials management knowledge among contractors. Besides that, the purpose of this study is also to identify the consequent of poor materials management in the construction industry and to investigate the relationship between materials management knowledge with poor materials management in construction industry. This study was conducted in Kedah and there are three companies that had been interviewed for this study. Data were analyzed using average index. From this study, the method being studied is an analysis of Activities Based Costing (ABC), Just in Time analysis (JIT), Economic Order Quantity analysis (EOQ), and First In First Out analysis (FIFO). The study found that companies that adopt materials management having a lower materials waste. This shows that the contractor has the knowledge in terms of materials management. In the future research, it is recommended to determine additional analysis that is pertinent to current knowledge of materials management among contractors. Keywords: materials management, construction industry, level of knowledge INTRODUCTION According to Rahman (2014), materials management is the process by which the flow of supplies into, through and out of an organization to achieve every effort to ensure that the materials received are sent to the right place at the right time in the quantity of the right to finest quality, and at the right cost. Materials management is also included in the acquisition, handling and storage. In addition, transport and associated information systems and their application throughout the supply, manufacturing, services and distribution sectors were also one of the activities in materials management. Knowledge has been identified as the key to understand the task and information need. It means that knowledge is one of the most important assets for an organization to create values and hence, sustainable competitive advantage. According to Drucker (1993), an