SAP MM

Key Components & Sub-components

• Master Data Management:

  This includes managing essential information about materials (Material Master) and the vendors or suppliers (Vendor Master). 

• Purchasing:

  Covers the entire external procurement process, from creating purchase requisitions and purchase orders to managing contracts and release procedures. 

• Inventory Management:

  Involves tracking the flow of materials through goods receipts, goods issues, and physical inventory processes. 

• Material Requirements Planning (MRP):

  Helps forecast and plan material needs to ensure availability at the right time, optimizing stock levels. 

• Invoice Verification:

  Deals with the processing of supplier invoices, including subsequent credits and debits. 

• Valuation and Account Assignment:

  Manages the financial aspect of materials, including their valuation and how they are posted to the general ledger. 

Key Processes within SAP MM

• Procure-to-Pay Process: A core workflow that starts with a material requirement and ends with the payment to the vendor. 

• Warehouse Management: Focuses on managing the storage and movement of materials within a warehouse. 

• Service Management: Handles the procurement and management of external services. 

Benefits

• Streamlined Procurement: Automates and standardizes procurement tasks for better efficiency. 

• Optimized Inventory: Maintains optimal stock levels, balancing availability with holding costs. 

• Cost Reduction: Enables better vendor negotiation and reduces material costs. 

• Enhanced Supply Chain Visibility: Provides real-time insights into material flow and vendor performance. 

• Integration: Seamlessly integrates with other SAP modules, creating end-to-end business process integration.