Material Management

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Content

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• Introduction

Introduction

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• Why Material Management ???

Why Material Management ???

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• Process Flow

Process Flow

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• Material Management Integration

Material Management Integration

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• Material

Material

Management

Component

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• Benefits of Material Management

Benefits of Material Management

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• Implementation

Implementation

Challenge

s

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• Q&A

Q&A

•

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Introduction

SAP MM Module is one of

the most important SAP

Modules where MM

stands for Materials Management - underpins the supply chain,

including



Requisitions

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Purchase orders

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Goods receipts

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Accounts payable

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Why Need MM ???



amount spend on material is higher

than other inputs



material offer considerable scope for

reducing cost and improving profit



material add value to the product

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quality of end product depend on

material

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efficiency of any organization depend

upon the availability of right material, in

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S

U

P

II

E

R

C

U

S

T

O

M

E

R

E

C

II

V

II

D

II

S

T

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Purchasing

Raw

Material

Storage

Transformation

Processes

Finish

Goods

Storage

orders

Process Flow

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MM Integration

SD

PP

QM

PM

FI

MM

Sales & Distribution

Production Planning

Quality

Quality Manageme

Management

nt

Production Manageme

Financial Accounting

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Material Management Component



Consumption based planning (MM-CBP)

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Purchasing (MM-PUR)

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Consumption based planning

CBP is based on the past consumption values and uses the forecast or

other statistical procedure to determine future requirements. It gets

trigger when stock level falls below pre-defined reorder points.

Procedure available for MRP

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Purchasing

Purchasing is a component of Material

Management.

Task of Purchasing as following

:-

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External Service Management

SRV is a MM component. It supports the

complete cycle of bid invitation, award /

order placement & acceptance of

services.

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Inventory Management

Task of SAP-IM as following

:-

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Management of material stocks on a

quantity and value basis

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Logistic Invoice Verification

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Vendor Evaluation

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Benefits of MM

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Implementation Challenges

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Q&A

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