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Materials Management (MM)

Logistics

Definition

Materials Management (MM) is a core functional component within SAP ERP that handles the procurement, management, and inventory of materials required in manufacturing and other operations.

Detailed Description

SAP Materials Management (MM) is a key module in the SAP ERP software suite, managing procurement and inventory functions. It provides capabilities for purchasing, inventory management, material evaluation, invoice verification, and is crucial for streamlining supply chain operations. The MM module integrates seamlessly with other SAP modules to ensure efficient material flow throughout the organization and supports activities ranging from purchasing goods and services to storing and handling materials in warehouses.

Key Features

  • Inventory Management and Optimizations
  • Invoice Verification
  • Material Requirement Planning
  • Procurement Process
  • Vendor Evaluation and Selection

Common Modules

SAP FI (Financial Accounting)

Works with MM to manage financial transactions related to procurement.

SAP PP (Production Planning)

Coordinates with MM for planning and managing production processes.

SAP SD (Sales and Distribution)

Integrates with MM to manage sales processes and customer order fulfillment.

SAP WM (Warehouse Management)

Supports MM in handling warehouse operations efficiently.

Popular Implementations

ABC Manufacturing Ltd.

Implemented SAP MM to streamline their procurement and inventory processes, resulting in a 20% reduction in materials costs.

XYZ Logistics Co.

Adopted SAP MM for efficient vendor management and streamlined supply chain operations.