Material Management

June 20, 2019 | Author: ravi jain | Category: Procurement, Inventory, Warehouse, Supply Chain Management, Business Process Management
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SAP MM Basic Document...

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Material Management

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Content • • • • • • • • •

Introduction Why Material Management ??? Process Flow Material Management Integration Material Management Component Benefits of Material Management Implementation Challenge Challenges s Q&A Thank you !!!

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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



Purchase orders



Goods receipts



Accounts payable



Inventory management

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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



quality of end product depend on material 

efficiency of any organization depend upon the availability of right material, in

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Process Flow orders S U P P I E R

R E C I V I

Purchasing

Raw Material Storage Transformation Processes

Finish Goods Storage D I S T R I

C U S T O M E R

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MM Integration SD

Sales & Distribution PP

QM

Quality Manageme Management nt PM

MM FI

Production Planning

Production Manageme Financial Accounting

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Material Management Component 

Consumption based planning (MM-CBP)



Purchasing (MM-PUR)



External Service Management (MM- SRV)

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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 : External procurement of material &

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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 : 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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