Introduction to SAP MM and Overview

SAP MM (Material Management) is one of the important modules in SAP ERP software and the MM application module supports the procurement and inventory functions occurring in day-to-day business operations. This MM module consists of many facets such as purchasing, goods getting, material storage, consumption-based planning, and inventory. SAP MM module is completely integrated with other modules in the SAP R/3 System such as Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and Warehouse Management(WM). It supports all phases of materials management materials planning and control, buying, items getting, inventory management, and invoice verification.?

ORGANIZATIONAL STRUCTURE

• Plant
• Buying organizations
• Storage locations
• Assessment location
• Purchasing groups

SAP MM SUBMODULES?

Material Planning.

• Stock Management.
• Buying.
• Invoice Verification.
• Procurement Process.
• Vendor Valuation.
• Statutory Requirements.

One of the important procedures in the SAP MM module is Purchasing/Procurement. The purchasing procedure is at first started when there is a requirement of material/service for the organization. If the material/service can not be obtained from the business's internal resource, the liable individual of that company has to discover the vendor/supplier which can offer it on the necessary date. The purchasing process is Started with the production of Purchase Requisition (PR), Purchase Order (PO), Goods Receipt/Services, Invoice Verification, Payment to vendors.?

Benefits of SAP MM?

Customer demands are shifting rapidly, an organization's effectiveness is measured essentially by its ability to cater to the market demands in the shortest time possible. For this to happen, the business has to have stock of the required raw materials at the right time and must be able to use them efficiently A proper Material Management process ensures that there is never a shortage of materials or any gaps in the supply chain process of the organization. The SAP MM automates the procurement and material management activities to make the processes smoother and effective.?

Some prominent benefits of SAP MM are:?

· Decreases material costs by avoiding stocking unnecessary or obsolete materials.?

· Inventory losses are minimized.?

· Direct labor costs are decreased and labor can be used efficiently.?

· Manufacturing cycle times are decreased and can be controlled effectively.?

· Effective inventory management and decreases expenditure on unwanted material storage.?

· Enhances delivery time and increases transparency across the organization.?

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