Sub-Modules in SAP MM
There are seven sub-modules in SAP MM:
- Buying
- Invoice
- Material planning
- Statutory requirements
- Vendor valuation
- Stock management
- Invoice verification
Purchasing/Procurement in SAP MM
The SAP MM module has an essential operation called Purchasing (or procurement).
The purchasing method begins when the company needs a supply or service. If the material/service cannot be supplied from the company’s internal resources, the responsible individual must identify a vendor/supplier who can provide it on the required date.
Purchasing Process in SAP MM
This graphic depicts how a purchasing process takes place in SAP MM:
What Advantages Does SAP MM Offer?
Rapidly changing industrial dynamics demand rapid and proper action from the industries. Organizations can take help from SAP MM to stay relevant and practical and meet customers’ demands. This will help them buy the correct items and stock them adequately. SAP MM offers automated solutions that ensure an abundance (or adequate quantity) of materials in storage. These solutions also immunize an organization’s supply chain from any gaps. That being said, some of the well-renowned benefits of SAP MM are:
- Reduced material expenditures by eliminating the storage of extra or outdated resources.
- Reduced inventory losses.
- Increase in labor efficiency with a decrease in labor expenses.
- It improved manufacturing cycles.
- Improvement in inventory management and cost-saving by avoiding any unnecessary material storage.
- Improvement in delivery time with enhanced transparency.
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