SAP MM – Procurement and materials management

SAP MM · Materials management · SAP S/4HANA

Optimise materials management – connect supply and production

Reliable material supply is a key prerequisite for stable production processes. Missing materials, inaccurate stock or poorly aligned procurement processes can significantly impair production planning and manufacturing.

E&S Swiss Consulting supports industrial companies in analysing, designing and optimising their SAP materials management.

Our focus is on the interplay between material master data, procurement, inventory management, MRP and production planning in SAP ERP and SAP S/4HANA.

Typical challenges in SAP materials management

Materials management and production planning are closely linked. Errors or ambiguities in one area often affect the entire supply chain. Typical challenges include:

!  Material shortages despite available stock

!  Unreliable or incomplete material master data

!  Excessive stock combined with limited material availability

!  Manual coordination between purchasing, warehouse and production

!  Unclear stock and material movements

!  Poorly aligned MRP parameters

!  Media breaks between procurement, inventory management and production planning

We help identify the root causes and derive suitable improvements in processes, data and the use of SAP.

Our SAP Materials Management services

SAP procurement processes

Efficient procurement supports the timely provision of the materials required.

We advise on the design and optimisation of:

  • Purchase requisitions and purchase orders
  • Procurement workflows and release processes
  • Supplier-related material information
  • Goods receipt processes
  • Alignment between purchasing and MRP
  • Integration of procurement into production supply

The focus is on traceable processes and demand-driven material supply.


Inventory management and material movements

Transparent stock and correctly posted material movements are essential for reliable planning data.

We support:

  • Analysis and optimisation of inventory management
  • Goods movements and posting processes
  • Stock types and availability information
  • Material staging for production
  • Integration of goods receipts and material consumption
  • Analysis of stock discrepancies and process errors

The goal is a consistent data basis for materials management, MRP and manufacturing.


Material master data and MRP

The quality of material master data directly influences the results of material requirements planning.

We look in particular at:

  • Material master and relevant views
  • MRP procedures and MRP parameters
  • Lot sizes and lead times
  • Safety stock
  • Procurement types and special procurement
  • Alignment with bills of material and production planning
  • Data quality and maintenance processes

We combine technical SAP configuration with the requirements of operational processes.


Integration of SAP MM with SAP PP and PP/DS

Materials management and production planning should be seen as one connected process chain.

We support the alignment of:

  • Material requirements planning and procurement
  • Component availability for production orders
  • Material staging and goods movements
  • Production confirmations and material consumption
  • Stock information and planning data
  • SAP MM, SAP PP and SAP PP/DS

The goal is a reliable link between material supply, planning and manufacturing.

Integrated material flow between procurement, SAP MM and production

◆ Level 1

Procurement

Requirement · Purchase order · Goods receipt

↓  Goods receipts and delivery information

▣ Level 2

SAP MM – Materials management

Stock · Material master data · Goods movements

⇅  Interaction between materials management and production

↓ to production
Stock · Availability · Material staging

↑ to materials management
Material requirements · Consumption · Confirmations

⚙ Level 3

SAP PP / PP/DS – Production

Material requirements · Planning · Manufacturing · Consumption

Simplified functional view. Materials management and production planning influence each other; the processes in a specific system may differ depending on the process and scenario.

Our consulting approach

01

Analyse

Examine existing materials management processes, master data, stock information and interfaces.

02

Design

Define target processes, responsibilities and improvement measures for material supply and the use of SAP.

03

Implement

Support the adjustment of processes, SAP settings, master data and integrations.

04

Optimise

Review material availability, stock quality and process stability and derive further improvements.

What are the benefits of optimised SAP materials management?

Well-aligned SAP materials management can help to:

✓  Detect material shortages earlier

✓  Make stock more transparent

✓  Reduce unnecessary inventory

✓  Better align procurement processes with production requirements

✓  Reduce manual coordination

✓  Improve master data quality and MRP

✓  Avoid production stoppages due to missing materials

The improvements that can actually be achieved depend on the existing processes, data and conditions.

Looking at materials management and production planning together

Effective production planning requires reliable material information.

Stock, lead times, MRP parameters and material movements directly determine which production orders can be planned and executed.

That is why E&S Swiss Consulting combines SAP Materials Management consulting with an understanding of SAP PP, SAP PP/DS and the entire production process chain.

Consulting package

Inventory optimisation as a complementary consulting approach

Excessive stock ties up capital. Stock that is too low or poorly distributed, on the other hand, can impair delivery and production capability.

With our consulting package Inventory optimisation we look at the causes of existing stock levels and possible improvements in material planning and MRP.

The focus is on the relationships between stock levels, material availability, MRP parameters and process quality.

Experience with integrated industrial processes

Our consulting combines SAP expertise with an understanding of industrial material flows, production requirements and supply chain processes.

We help companies develop their materials management in a practical way and align it with adjacent SAP processes.

Frequently asked questions about SAP MM

What is SAP MM?

SAP Materials Management (MM) covers the core functions of materials management, in particular procurement, inventory management and material master data. The processes are closely linked to other SAP areas such as production planning, sales and invoice verification.

How are SAP MM and SAP PP related?

SAP MM provides key material and stock information and supports the procurement of required components. SAP PP uses this information for material requirements planning and production processes, among other things. Aligned integration is essential for a reliable material supply.

What role does material master data play in production planning?

Material master data contains key information such as procurement type, MRP procedure, lot sizes and lead times. Incorrect or unsuitable settings can lead to material shortages, unnecessary stock or implausible planning results.

How can material availability be improved?

A sensible starting point is to analyse stock, requirements, master data, MRP parameters and procurement processes. On this basis, targeted improvements can be developed and implemented in SAP.

Let’s improve your materials management

Would you like to optimise your SAP MM processes, reduce material shortages or better connect procurement and production planning?

E&S Swiss Consulting supports you in analysis, design and implementation.