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Overview of SAP MM (Material Management)

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SAP MM (Material Management) stands as a crucial component within the SAP ERP system, facilitating the procurement and inventory management needs of everyday business activities. IQST in Bangalore provides best-in-class SAP MM online training with industry experts guiding the students to advance their career.

What is SAP MM: The Material Management Module within SAP ERP is crucial for helping enterprises manage materials, inventory, and warehouse operations throughout the supply chain. It falls under the logistics area of SAP ECC, which includes various components and sub-components. This module covers various aspects such as procurement, receiving goods, storing materials, planning based on consumption, and inventory control.


* Plant

* Purchase organizations

* Locations for storage

* Valuation area

* Groups responsible for purchasing

Benefits of SAP MM: In a marketplace where customer demands and expectations shifts constantly, the ability of a business to respond swiftly to market demands is key to its success. Ensuring timely product delivery necessitates maintaining the appropriate stock levels at all times. An efficient material management process helps in avoiding supply disruptions and inventory or raw material shortages, thereby enhancing supply chain effectiveness. SAP MM streamlines procurement and material management tasks, thus making the process more efficient. Key advantages include:

  • improved management of inventory
  • reduction and elimination of inventory shortfalls
  • decreases the time and effort spent on inventory upkeep
  • minimizes material wastage by preventing accumulation of outdated or unnecessary items
  • cuts down on labor costs and maximizes workforce utilization
  • shortens the manufacturing cycle duration
  • reduces costs associated with storing unneeded materials
  • enhances the speed of product delivery
  • boosts inventory management visibility

SAP MM sub-modules

  • Procurement
  • Management of External Services
  • Inventory Control and Physical Inventory
  • Valuation and Assigning Accounts
  • Verification of Logistics Invoices
  • Planning Based on Consumption
  • Management of Excise Duties
  • Management of Stocks
  • Process of Procurement
  • Evaluation of Vendors
  • Regulatory Requirements

SAP MM integration with other SAP modules: The MM module seamlessly integrates with numerous other modules in the SAP R/3 System, including Finance (FI), Controlling (CO), Sales and Distribution (SD), Quality Management (QM), Plant Maintenance (PM), Production Planning (PP), and Warehouse Management (WM). This integration ensures a cohesive connection of Material Management operations with various functions across different SAP solutions, including:

  • SAP Plant Maintenance (PM)
  • SAP Human Capital Management (HCM)
  • SAP Project Systems (PS)

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