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Supply Chain Management: SAP MM
Customers need companies to deliver what is offered. Thus, organizations need to make sure materials are always kept in proper quantities and without shortages or gaps in the supply chain. One way an organization can easily meet its business demands is with the help of SAP.
What Is SAP MM?
SAP Materials Management (MM) module is an SAP ERP component that helps organizations with materials management, inventory management, and warehousing. It is one of the most important modules of SAP ERP because it supports procurement and inventory management for day-to-day operations. An organizational master data structure of plant, valuation area, storage location, purchasing organizations, and purchasing groups supports basic transactions.
Supply Chain Management: SAP MM
Customers need companies to deliver what is offered. Thus, organizations need to make sure materials are always kept in proper quantities and without shortages or gaps in the supply chain. One way an organization can easily meet its business demands is with the help of SAP.
What Is SAP MM?
SAP Materials Management (MM) module is an SAP ERP component that helps organizations with materials management, inventory management, and warehousing. It is one of the most important modules of SAP ERP because it supports procurement and inventory management for day-to-day operations. An organizational master data structure of plant, valuation area, storage location, purchasing organizations, and purchasing groups supports basic transactions.
Key capabilities include:
- Material management
- Procurement process management
- Master data management
- Inventory management
- Material requirements planning
- Invoice verification
Master data is the foundation for all transactions within SAP MM. It has two important components — material and vendor. Creating solid master data is the key to reducing repetitive work and minimizing errors. Some examples of master data are material master, service master, vendor master, purchasing info record, source lists, and quotas.
Advantages of SAP MM:
- Minimizes the cost of operations
- Reduces inventory losses
- Activities lead to a smoother and efficient process
Mitigate your risks by:
- Tracking the data
- Increase your sales
- Stock balancing
- Promote the products to help move inventory
- Offer customer discounts to help move inventory
It is important to note that with SAP S/4HANA and SAP MM, there are several functionalities that have changed. In SAP S/4HANA, the Material Ledger function is mandatory to support flexible valuation methods in multiple currencies. Post Goods Receipt against the Inbound Delivery is a feature of the SAP Fiori app. It has ability to search by Inbound Delivery and other attributes. The Fiori app allows for a better user experience, improved performance, and less load on databases.
Further Insights for SAPinsiders
- How to Create a Global Template to Configure SAP MM Processes in Implementations and Rollouts. S. Baraneedharan, an SAP Consulting Expert, explains the steps involved in creating a template for configuring an SAP materials management (MM) process.
- Improve Current Forecast Models in SAP MM. Gaetano Altavilla, Associate Professor of Economic Policy at the University of Naples, shares in his article how to improve your forecast accuracy by placing weights on individual forecasts. It also explores the idea of combining forecasting models.
- Understanding the Key Aspect of Supply Chain Visibility. Kumar Singh, SAPinsider Research Director, describes supply chain visibility, how organizations struggle achieving it, and one method to kickstart your approach.
11 results
Key Strategies to Reduce the Cost of Poor Quality In ManufacturingOct 15, 2025 — Manufacturers are focusing on reducing the Cost of Poor Quality (COPQ) through the integration of Manufacturing Execution Systems (MES) with SAP ERP systems to gain real-time insights into operational deficiencies, shifting from reactive to proactive quality management and ultimately enhancing efficiency and profitability.
3 minute read
Critical Role of Manufacturing Execution Systems (MES)Oct 18, 2022 — As supply chain challenges increase due to increasing supply chain complexities, organizations are increasingly looking at leveraging data and analytics tools and technologies to help them address their supply chain challenges. Manufacturing plays a crucial role in supply chain networks, and recent events have emphasized its importance in building supply chain resiliency and agility. This has been emphasized in our recent supply chain research reports, Supply Chain Planning in The Cloud and Process Automation in Supply Chain. SAPinsiders are increasingly evaluating their portfolio of manufacturing systems and technologies and looking to upgrade to align with the requirements of modern manufacturing. SAPinsder's April 2022 report, Manufacturing Management and Planning Benchmark Report, will explore the pain points SAPinsiders are experiencing with their current systems, the key drivers they are experiencing that are bringing those pain points to the forefront, and their technology roadmap to address those pain points. Digital twins capability has been consistently highlighted by SAPinsiders as key to building resilient, agile, and optimized manufacturing capability. Manufacturing Execution Systems (MES), play a key role in digital twins. This article explores why they are central to manufacturing information systems architecture.
3 minute read
Role of Data Quality in Supply Chain Digital TransformationOct 28, 2021 — Quality Data Lays the Foundation As supply chains become increasingly complex, so does the associated data landscape. Millions of data points must be managed in modern supply chains today due to the wide gamut of systems used. From Enterprise resource planning (ERP) systems that manage an organization’s basic processes to customer relationship process (CRM) systems […]
7 minute read
Learn how Coca-Cola Hellenic Bottling Company Reduced SAP Product Launch Cycles by 56%Jan 21, 2021 — Before implementing a cohesive automation solution for its SAP launch processes, Coca-Cola Hellenic Bottling Company needed to maintain disparate legacy solutions, some of which could not be updated to meet changing business needs. This situation slowed down product launches and made it difficult for business teams to get visibility into launch status. These factors, along with a rapidly increasing launch volume, drove the company to find a better way to automate the creation of SAP materials and other related data needed to manufacture products. The session will cover how Coca-Cola Hellenic Bottling Company enabled its supply chain, marketing, and master data teams to move faster while improving data quality and compliance.
Attend this session to:
- Learn how Coca-Cola Hellenic Bottling Company built a launch platform that can handle 48 material types and different process and data needs across 28 countries
- Identify some of the common data and process challenges and solutions in the context of SAP Materials Management
- Learn how to manage product launches and changes in SAP ERP more efficiently
- See a demo of Winshuttle’s new product introduction solution designed to digitize and accelerate any launch process type
1 minute read
Logistics and SCM: Case study: Filling the gap: How A.O. Smith uses pre-structured SAP tools to accelerate material extensions and improve data qualityMar 5, 2019 — Learn how A.O. Smith applied process automation techniques and a pre-structured set of SAP tools to overcome the challenge of extending a large number of materials to multiple plants and warehouses simultaneously and accurately through an intelligent rules-driven process. SCM2017_Gabor_Casestudyfillingthegap Stephen Gabor If you have comments about this article or publication, or would like to […]
1 minute read
Benjamin Moore Mixes Up Its Product PricingMay 16, 2018 —
In 2014 Benjamin Moore & Co. found itself limited by an aging legacy pricing system that stymied its ability to scale its paint and stain manufacturing business. It turned to Vistex for a new automated pricing system that transformed the pricing process, leading to more accuracy, better analytics, and increased customer satisfaction. Now it is poised for better profitability and growth.
8 minute read
Supply Chain: Solving Stock Transport Order (STO) ProblemsMay 16, 2018 — A common challenge experienced by users in the supply chain functions of a business who create stock transport orders (STO) in SAP ERP Central Component (SAP ECC) is that once they have done so, they are not able to create an outbound delivery for the STO. These problems are common to all types of STO processes, such as intracompany, intercompany, and STO at storage location level. This article describes several business problems faced during the STO delivery processing and then explains how to solve them.
12 minute read
Improve Your Company’s Production Efficiency with SAP Active Ingredient ManagementDec 29, 2017 — Learn about the Active Ingredient Management processes using SAP Materials Management, Production Planning, and Financial Accounting modules. Get details about the main customizing settings to be done in the system from a financial point of view. Key Concept Active Ingredient Management affects all of a company’s business processes that contain at least one concentrate or […]
19 minute read
How to Configure and Implement Global Percentage Bidding for External Service ProcurementDec 28, 2017 — Learn how global percentage bidding (GPB) is configured and implemented to accelerate the management of service specifications for external service procurement. Discover how this functionality reduces the time and cost of procurement in organizations. Key Concept Global percentage bidding (GPB) is a request for quotation document type in an SAP system that is used to […]
20 minute read
Configuration Tips for Using Automated Flexible Product Prices with SAP Pricing ScaleAug 31, 2017 — Learn how to gain market share by configuring and implementing SAP pricing scale with different automated flexible price strategies and appropriate business scenarios. Key Concept Organizations have requirements to implement automated scalable price models that can enable them to respond competitively to their customers and prospective customers’ purchasing power. SAP has provided some functionalities such […]
27 minute read