What is SAP MM?

SAP MM which is the acronym for SAP Materials Management is a module that is in the SAP ERP Central Component (ECC) that is used to provide companies and manufacturers with materials, inventory systems together with other warehouse management features. The primary goal of the SAP MM module is to ensure sure that production materials are always kept in fitting quantities and that there are no shortages or gaps in the organization's supply chain. It also helps supply chain professionals in the organization and other SAP users to finish up the process of goods purchasing in a timely, orderly and cost-effective way and to be able to handle and manage operational changes in these processes.

SAP MM's functions include material management, master data management (material and vendor master), procurement process management, inventory management, material requirements planning and invoice verification.

All of these submodules of SAP MM have functions that carry out business-specific processes for those modules. These are carried out through transactions, which are the method that SAP ECC makes use of to complete business processes. SP MM also supports other functions for logistics that need various information on materials, such as project management and plant maintenance.

In some companies SAP MM is also charged with the acquisition of production materials by organizing and managing a base fro supply. In other companies, the acquisition and management of the supply base is the sole responsibility of a separate purchasing department. The purchasing department is then accountable for the acquired price variances from the supply base. 

Features of SAP MM

There are many features of a SAP MM system and some of them are as follows:

1. SAP MM is one of the modules of the SAP enterprise system that deals with material management and inventory management.

2. Material Management as a process makes sure that there is no shortage of materials or any gaps in the supply chain process of an organization or manufacturing firm. SAP MM further speeds up acquisition and material management activities, therefore, making the business to run smoothly with absolute time and cost-efficiency.

3. SAP MM deals with managing the materials i.e, products and/or services together with other resources of an organization with the goal of quickening and hastening productivity and reducing the costs of production. At the same time, SAP MM is very versatile in supporting various changes that are regular in any business environment.

4. SAP MM involves itself with the Process of Procurement, Account Determination & Valuation of Material, Master Data (Material & Vendor Master), Invoice Verification, Inventory Management, Material Requirement Planning, etc.

Benefits of SAP MM

There are many benefits of SAP MM and some of them are:

1. SAP MM reduces the cost of materials by avoiding keeping stock of materials that are not necessary or obsolete.

2. With SAP MM, inventory losses are lessened.

3. With SAP MM, the cost of direct labor costs are reduced and labor can be used very well and efficiently.

4. The time to complete the Manufacturing cycle times are reduced and can be controlled effectively.

5. SAP MM presents you with an effective inventory management system and it reduces the unnecessary expenditure on unwanted storage of material.

6. SAP MM improves the time of delivery and increases transparency across the organization.

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