SAP materials management (MM)

- [Instructor] The next module we'll take a look at…is Materials Management, or MM.…This is a logistics module that many other modules rely on…to keep the supply chain functioning.…Materials Management ensures…that there are always the required materials in stock.…The key benefits of Materials Management…are the way it can help increase productivity…and reduce costs by handling materials efficiently.…Four major components of Materials Management in SAP are…purchasing, inventory management, physical inventory,…and material master data.…

The first major component of the MM module is purchasing.…This includes procurement activities…like purchase requisitions and purchase orders.…Let's take a look at a purchase order in the system.…This is a shot of a standard purchase order.…We can see the vendor number…and the date the order was created at the top.…The grid below shows line items…of what was ordered from the vendor,…the delivery date,…and the net price.…In this case it was one piece,…it cost 50,000 euros,…and it was delivered on May 11, 2018.…