Customers expect 100-percent delivery ability and delivery reliability. In dynamic markets which call for a high level of flexibility combined with low stock levels, logical planning and control of the material flow and an ongoing assessment of demand and fulfillment of demand are important success factors. Another requirement of the existing ERP system is that it exactly maps the available stocks, storage duration in the warehouse, and the future availability of goods and services.
The close integration with SAP FI and the simple structuring of the processes in SAP Materials Management makes SAP MM one of the most frequently used SAP components. Companies gain greater process reliability. This reliability is very important especially for commercial enterprises with very large purchase volumes of both direct and indirect materials.
The costs, for example, of IT accessories, office materials, company cars, and business trips often range from several hundred thousand to millions of euros each year. Faced with these amounts, it is understandable that companies place a high value on transparent and logical processes.
SAP MM offers solutions in various areas:
- Warehouse management and inventory management
- Article price valuation
- Taking inventory
The applications of SAP MM within purchasing and procurement range from
- The creation of new requirements, through
- Creation of queries to suppliers
- Entry of the offers / Tenders and associated
- Imolementation of a quotation price comparison list, up to
- Creation of a new purchase order taking account of conditions and delivery dates
To facilitate the procurement processes within SAP, the SAP MM module offers various options. On the one hand, the purchaser can use a purchasing info record to determine very quickly from which supplier and for what price, the goods have been procured up to now. On the other hand, you can define tolerance thresholds for delivery shortfalls or surplus deliveries in a purchasing info record. You can also define planned delivery times for the supplier, and current prices and conditions for purchasing organizations.
Using the quotation price comparison list, you can display the offers from different suppliers in a single overview. This can simplify the decision to favor one supplier on the basis of an article price evaluation.
SAP MM also significantly simplifies the inquiry and order process as the output type of the documents can be defined and thus simplified. Documents such as quotations, invoices, etc. can be filed in document storage.
Within warehouse management and inventory management, the following processes can be carried out:
- Delivery of new goods
- Changes in stock
- Stock transfers within the warehouse
- Transfer posting
- Management of batch-managed materials
Using the SAP Materials Management (SAP MM) module, you can transfer stocks within the warehouse to other storage locations. Transfer postings, which are not always associated with a physical movement, are an important function. This is especially useful in project business to avoid ordering new materials that are already available in the warehouse. Goods receipt and goods issue are also posted within this module.
In addition, SAP Materials Management is required for batch management of materials because the indicator for batch management requirement is set in the material master, and the batch master record must be maintained.
Another important area that SAP MM can cover with various procedures is stocktaking, which includes the counting of materials, the registration of inventory documents, and difference postings.