SAP MM

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.