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What is the use of SAP implimentation in MM.

Hi SAP experts,

I would appriciate if any one can clearify the basic question of 'Use of SAP implimentation particularly in MM. Though it seems a simple question, but contains a very good information.

Reward Points will be given for all the replies.

Thanks inadvance


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4 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Dec 01, 2007 at 04:17 PM

    Hi Namarata,

    That is a very interesting question & a challenging one... let me give it a try...

    The first question is why need a software to manage MM, for this i would say, it makes the job easier & simpler because we need to record & keep track of a lot of business processes. It would be humanly almost impossible to store & retrieve all those information instantly.

    The next question is why SAP. The answer to this can be for the simple fact, that SAP provides a platform to integrate the entire organization's processes & yet have a module specific solution. As in this case MM, the SAP solution is quite comprehensive interms of the business processes we can manage & also with options to enhance it based on users requirement.

    In today's competitive environment, with every business moving to Leaner Inventories it is of paramount importance that a robust & reliable system is in place which can provide with option for carrying out wide ranging analysis & it is here that SAP has its core strength with the amount of analysis which can be carried out in MM domain. This can be used by organizations as a strategic tool as well.

    These were my views & am sure the experts in this community will have more thoughtful inputs to add.



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  • author's profile photo Former Member
    Former Member
    Posted on Dec 03, 2007 at 06:22 AM


    Check following link to know Advantage of SAP


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  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 10:59 AM

    Dear Namarta

    The Materials Management (MM) module is fully integrated with the other modules of the SAP System. It supports all the phases of materials management: materials planning and control, purchasing, goods receiving, inventory management, and invoice verification.

    MM Purchasing component are as follows:

    • External procurement of materials and services

    • Determination of possible sources of supply

    • Monitoring of deliveries from and payments to vendors


    •Controlling (CO): materials intended for direct consumption and for services, since these can be directly assigned to a cost center or a production order.

    •Financial Accounting (FI): The vendor master record represents the creditor account in financial accounting.

    •Sales and Distribution (SD):

    •Within the framework of materials planning and control, a requirement that has arisen in the Sales area can be passed on to Purchasing

    Process Flow:

    1)Determination of Requirements: Through MRP, purchase requisitions

    2)Source Determination: helps you identify potential sources of supply, creating requests for quotation (RFQs

    3) Vendor Selection and Comparison of Quotations: The system is capable of simulating pricing scenarios

    4) Purchase Order Processing: information from the requisition and the quotation to help you create a purchase order. scheduling agreements and contracts are also supported.

    5) Purchase Order Follow-Up: The system checks the reminder periods you have specified. up-to-date status of all purchase requisitions, quotations, and purchase orders.

    6) Goods Receiving and Inventory Management: Goods Receiving personnel can confirm the receipt of goods simply by entering the Po number

    7) Invoice Verification: The system supports the checking and matching of invoices, and clearing invoices for payment.

    This is a overview of SAP MM.If u find useful please reward points,

    Vivek Maitra

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    • Hi Narmada,

      Basically it integrates the business processes FI,CO,MM,PP,SD,HR.

      Easy & fast data retrival as it is available in system.

      Large data can be stored.

      Reporting is easy.

      Tailor making to each business scenarios.

      Archiving of documents.

      Helps in Planning to a greater extent



      Rewards if found useful

  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 11:25 AM

    We need to go back and understand evolution of ERP in order to understand the need of ERP for MM.

    Those were the days when we are living in the age of Producres market. What ever you produce will be sold, not only sold but may be many product will command premium.

    That time business face the challange of ensuring availability of material in time in order to ensure 100+% production. So this need resulted in evolution of MRP (Material Requirement Planning). Which basically follow the rule of Right Quantity/ Right Quality/ Right time / Right Place / Right Price

    Once the business has achieved the objective of availability of material with 5 R. Than comes next challange . Inspite of having material in right time and right qty business not able to achieve the production target due to problem exist with other resources like Man , Machines, Environment. To address this challange MRP2 was evolved. MRP2 - Manufacturing Resource Planning.

    Globally business was changing from Seller,s market to Buyers, Market. Business who can give value for the money to Customer can only survive the competetion. So Financial intergaration with whole operation of enterpries becomes key success factor for the business. This need has evolved ERP.

    In ERP all the business process are important for business sucess, like Materials Management, Quality Management, Production Planning, Finance and Controlling. So question of why ERP for MM does not arise, ERP is mandated for all the busienss process to achive business success.

    Now why SAP over other ERP. Let us leave this for PreSales guys and focus only on SAP Implementation and Support. However there are many articles and Blogs available to showcase marit of SAP over other ERP.


    Sanjay Sharma

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    • Former Member

      Hi Narmadha, it's really a simple but valuable question.but almost all our experts have answered all the possible answers. just i want to add that if your business volume is small then u no need to go for any ERP. when the Volume is higher , then in order to manage the high level of the material flow and it's management in all the ways we need an ERP (for fast retreival of data, to avoid manual error etc.)in which SAP is very strong in Integration of entire business process from top to bottom.

      I don't think still u may need information.

      keep it up to have this kind of simple but mind refreshing sharing also.



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