Why SAP MM?its overview

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SAP MM ONLINE TRAINING
by
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Process Flow Material Management
Integration Material Management Component
Benefits of Material Management
Implementation Challenges QA Thank you
!!! Appendix A - MM Definition Appendix
B Material Type Appendix C MM Terms
Definition Appendix D Important MM Tables

• Why material management???

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SAP MM Module is one of the most important SAP
Modules where MM stands for Materials Management
- underpins the supply chain, including
Requisitions Purchase orders Goods receipts
Accounts payable Inventory management BOMs
Master raw materials, finished goods etc

• Introduction

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• WHY NEED MM?

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• 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.
• Quality of end product depend on material.
• Efficiency of any organization depend upon the
  availability of right material, in right quantity
  at right time and at right place.

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Consumption based planning (MM-CBP)
Purchasing (MM-PUR) External Service
Management (MM- SRV) Inventory Management
(MM-IM) Logistic Invoice Verification (MM -
IV) Vendor Evaluation Management

• Material management component

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It is a component of MM. It is in the logistic
invoice verification that incoming invoice are
verified in terms of content, price and
arithmetic.Task of SAP-IV-LIV as following -
It completes material procurement process, which
start with purchase requisition result in goods
receipts. It allows invoices, that do not
generate in material procurement like expenses to
be processed.It allows credit memo to be
processed.Integration with - FI CO

• Logistic invoice verification

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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 - Reorder
point procedure Forecast based planning
Time-phased materials planning

• Consumption based planning

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Purchasing is a component of Material
Management.Task of Purchasing as following -
External procurement of material services
Determination of possible source of supply
Monitoring deliveries from and payment to
vendors.Integration with - SD, FI CO

• Purchasing

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SRV is a MM component. It supports the complete
cycle of bid invitation, award / order placement
acceptance of services. Task of Purchasing as
following - External procurement of material
services Determination of possible source of
supply Monitoring deliveries from and payment
to vendors.Integration with - PM PS

• External service management

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Task of SAP-IM as following - Management of
material stocks on a quantity and value basis
Planning, entry and documentation of all goods
movement Carrying out the physical
inventoryIntegration with - SD, PP, QM PM

• Inventory management

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It is a component of MM. It is in the logistic
invoice verification that incoming invoice are
verified in terms of content, price and
arithmetic.Task of SAP-IV-LIV as following -
It completes material procurement process, which
start with purchase requisition result in goods
receipts. It allows invoices, that do not
generate in material procurement like expenses to
be processed.It allows credit memo to be
processed.Integration with - FI CO

• Logistic invoice verification

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The Vendor Evaluation component supports you in
optimizing your procurement processes in the case
of both materials and services. Task of
SAP-IV-LIV as following - Helps you to select
source of supply monitoring of existing supply
relationships Vendor reliability Criteria -
Price / Quantity / Delivery / General Service
SupportIntegration with - QM MM

• Vendor evolution

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Material cost can be lowered down
Controlling of indirect cost Risk of
Inventory loss minimized Reduction in loss of
time of direct labor Control of
manufacturing cycle Material congestion in
storage places avoided Improvement in
delivery of the product

• Benefits of MM

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