SAP Materials Management (MM) is a component of the SAP ERP Central Component (ECC) that helps businesses support procurement and inventory functions.
SAP MM is one of the critical components in SAP ECC. Part of SAP ECC's logistics function, SAP MM plays a vital role in a manufacturer's supply chain and integrates with other ECC components like Production Planning (PP), Sales and Distribution (SD), Plant Maintenance (PM), Quality Management (QM), Finance (FI), Controlling (CO), and Human Capital Management (HCM).
MM provides a way to manage materials in an organization’s integrated supply chain. One of the largest components in SAP ECC, MM’s functions include Procurement Process, Master Data (Material and Vendor Master), Inventory Management, Material Requirements Planning, and Invoice Verification. All of the MM functions have sub-functions that perform specific business processes for those functions, which are executed through transactions, the method that SAP ECC uses to complete business processes.. MM also supports other logistics functions that require materials information, such as plant maintenance and project management.
The primary goal of MM is to make sure that materials are always kept in proper quantities and without shortages or gaps in the organization’s supply chain. It also helps organizations to complete the purchasing of goods in a timely and cost-effective way, and to be able to deal with day-to-day changes in these processes.
Everything in MM revolves around master data, which is stored and manipulated in centralized master-data tables. Master data types include materials master, work center, bill of materials, and routing. The master data is used to create transactional data in SAP ECC. For example, when a production order is created in PP, it uses master data from MM about the raw materials needed to produce the finished product, which will subsequently be used to create a sales order in SD.