OIL & GAS SAP Material Management Training Overview

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SAP Materials Management module course imparts with the knowledge that consists of several components and sub-components prominently including Master Data, Purchasing, and Inventory, Evaluation of Materials, Consumption-based planning, and Invoice Verification. Course Objectives:

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Benefits, Components And Career Scope

SAP Materials Management (MM) is a crucial module in the SAP ERP suite from SAP AG. The SAP MM module integrates with the other modules of the SAP system and supports all phases of materials management include materials purchasing, planning and control, receiving goods, inventory management and invoice verification. In this brochure download, we discuss the key features of SAP MM software and its different sub-components.

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What is SAP MM?

SAP MM (Materials Management) is an essential module in the SAP ERP Central Component (ECC) and equips organizations with materials, inventory and warehouse management capabilities. The primary role of SAP MM is to ensure that all materials of an organization are maintained in the right quantities at the right time in the right place.

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It ensures that there are no shortages or supply gaps in an organization’s supply chain. It helps inventory managers; warehouse managers and other supply chain professionals complete the purchasing of raw materials and goods in a timely and cost-effective manner. One of the biggest challenges facing organizations today is material management.  

       

A key module of the SAP ECC's logistics function, SAP MM integrates with other modules like Production Planning (PP), Plant Maintenance (PM), Sales and Distribution (SD), Human Capital Management (HCM) and Quality Management (QM).

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Features of SAP MM

Here are some of the main features of SAP MM:

• handles both raw material management and inventory management

• ensures that there is no shortage of materials in the supply chain helps to improve the efficiency of procurement activities

• accelerates productivity while reducing overall procurement costs

• handles various business aspects like material requirement planning, vendor evaluation, procurement, material validation, warehouse management and invoice verification

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Components of SAP MM

The SAP MM system consists of several components integrated with each other. This integration makes it easy for each department to share information with other departments, thereby updating data in real-time. SAP MM separates into five key components, with each of these components containing several sub-modules. Here are five of the major components of the SAP MM software suite: 

 

1. MM - CBP (Consumption-Based Planning)

Consumption-based planning uses past consumption values to forecast future requirements using statistical procedures. The primary role of the MM-CBP component is to monitor stocks and automatically create procurement proposals for production and purchasing. The proposal triggers when stock levels go below a pre-defined reorder point or by forecasting requirements using past consumption values.

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2. MM - PUR (Purchasing)

The purchasing component ensures seamless communication among all participants in the procurement process, thereby ensuring that the purchasing unit of an organization functions smoothly. The primary tasks of the purchasing element are:

• handling external procurement of materials and services

• monitoring deliveries from vendors

• tracking payments to vendors

• determining possible sources of supply for a requirement

 

3. MM - IV (Inventory Management)

This component deals with the following tasks:

• tracking and managing material (physical) stocks based on quantity and value

• maintaining the physical inventory of goods

• planning, entering and documenting the movement of all goods

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5. MM - IV (Logistics Invoice Verification)

Logistics invoice verification is a process that comes at the end of the logistics supply chain. It includes tasks like purchasing, inventory management and invoice verification. This component helps in verifying incoming invoices based on prices, content and quantity. As soon as a vendor sends a purchasing invoice, this component adds it to the system, then passes it to financial accounting and other elements in materials management.

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Benefits of SAP MM

With changing customer demands and expectations, the efficiency of an organization relates to its ability to cater to market demands in the shortest time possible. To ensure a seamless delivery of products, the business is required to maintain the right stock at the right time. Having an efficient material management process helps prevent supply gaps and shortages of inventory and raw materials and improve the supply chain's efficiency. SAP MM automates material management and procurement activities, making the entire process more competent.

 

Here are some of the top benefits of SAP MM:

• enhances overall inventory management.

• minimizes and eliminates inventory losses. 

• reduces the time and labor spent on maintaining inventory.

• decreases material wastage by avoiding stocking obsolete or unnecessary products.

• lowers labor costs and optimizes labor employment.

• minimizes manufacturing cycle times.

• reduces expenditure on storing unwanted materials.

• improves product delivery time.

• increases the transparency of inventory management.

• Related: What Is SAP and What Are the Advantages of Using It?

 

Career scope for SAP MM certification

The SAP MM certification is one of the most sought-after certification in the Supply Chain Operations industry. SAP MM certification gives you access to various career paths like:

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• SAP MM consultant

• SAP MM associate

• SAP team lead

• SAP functional analyst in materials management

• plant maintenance analyst

• supply chain specialist

• logistics manager

• purchase executive

• material manager

• project manager

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