The Institute was established on 24th October 1972. Institute of Supply & Materials Management (ISMM) is the leading Professional Institution which fosters the professional development of Purchasing and Supply Function in Sri Lanka. It is a Member of the Organization of Professional Associations of Sri Lanka (OPA) since 1976 and was incorporated by the Parliament by Act No. 3 of 1981. The ISMM is affiliated to the International Federation of Purchasing and Supply Management based in Switzerland, which is the World body encompassing 42 national associations having more than 200,000 professionals engaged in Purchasing and Supply Chain Management. It is also registered under the Tertiary & Vocational Education Commission (TVEC) under reference P01/0160.

It has been the Diploma awarding National Body for the last two decades in addition to conducting other Professional Short Courses, adding more than 10,000 professionals to the profession of Supply Chain Management in Sri Lanka on a national scale. The latest venture of the Institute is the upgrading of its Diploma to the status of a Graduate level Diploma with a Research Module (similar to a Special University Degree) in a continual effort to improve its Quality of its Academic Standards.
 
The course covers all aspects of Purchasing and Supply Chain Management and has been formulated according to leading Purchasing and Supply Chain Management Institutes of Australia, India and UK. The successful completion of the Diploma together with 3 years executive experience in Purchasing and Supply Chain Management field will lead to the Corporate Membership of the ISMM. The Government of Sri Lanka recognizes the Corporate Membership of the ISMM is equivalent to a First or Second Class Honours Degree relevant to the field of Purchasing and Supply Chain Management awarded by a recognized University. (Ministry of Public Administration Circular No. 46/90(i) refers.)