SAP Material Management (SAP MM)

Name: leverX Company
Brand: LeverX
Rating: 4.9 (114 reviews)

Streamline logistics and material management in production processes throughout your organization.

As an SAP Gold Partner, we provide access to resources and seasoned professionals, ensuring your project's reliability. Our expertise helps us tailor SAP solutions for your unique needs, optimizing ROI and efficiency.

Partnering with LeverX as an SAP Global Strategic Supplier goes beyond buyer-seller dynamics. We provide critical solutions for global operations, collaborate with you on product development, and drive strategic initiatives.

LeverX is a certified partner of the SAP Center of Expertise. This accreditation ensures our unwavering commitment to upholding SAP's highest standards. Our mission is to deliver excellence, providing unparalleled support, and facilitating the seamless integration of SAP solutions into your business framework.

As an SAP AppHaus Network Member, we help businesses solve complex problems, deliver exceptional user experiences, and drive digital transformation using design thinking and innovation expertise. We leverage SAP's best practices and cutting-edge tools to create user-centric solutions.

SAP Material Management is an SAP solution that covers all aspects of operational logistics, including procurement planning, supplier certification, inventory management, and reporting. Its main goal is to maintain inventory levels without shortages while keeping the costs low. This module helps companies make timely purchases, saving both time and money.

By implementing SAP MM with LeverX's support, companies can effectively manage large inventories, reduce purchasing and warehouse maintenance costs, coordinate personnel across different departments, and increase inventory turnover.

Two modules in one solution

SAP MM includes two modules:

SAP S/4HANA for Procurement is tailored for procurement processes, covering everything from order creation to payment for delivered goods or services.
SAP S/4HANA Inventory Management helps with all aspects of inventory accounting and management including goods receipt, movement, and inventory.

These modules can be used independently or together to offer more flexible and efficient material management within SAP S/4HANA.

Key Components of SAP MM

SAP Material Management provides a wide range of features to efficiently manage procurement and inventory processes. These modules can be used, either independently or together, to offer more flexible and efficient material management within SAP S/4HANA.

Master Data Management

Maintain a centralized catalog of materials, suppliers, and purchasing conditions to ensure consistent, reliable data across all logistics and procurement processes.

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Procurement

Support the whole procurement cycle — from purchase requisitions and purchase orders to three-way matching with goods receipts and invoice verification. This streamlines purchasing and enhances supplier collaboration.

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Inventory Management

Track and control material movements in real time, including goods receipts, goods issues, and stock transfers. Ensure accurate documentation and availability of materials throughout the supply chain.

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Material Valuation & Ledger

Leverage multi-level inventory valuation and use the Material Ledger (standard in SAP S/4HANA) for precise cost tracking, transparency, and compliance with accounting standards.

Physical Inventory

Simplify inventory counting and reconciliation by integrating physical stock counts with system records to ensure data accuracy and minimize discrepancies.

Service Procurement

Manage the procurement of external services alongside materials, including service specifications, purchase orders, and confirmations.

Invoice Verification

Automate invoice processing, match invoices with purchase orders and goods receipts, and control supplier payments.

Consumption-Based Planning (CBP)

Automate purchase order creation based on real-time stock levels, forecast demand, and reorder points to prevent shortages and reduce overstock.

Valuated Stock in Transit & Subcontracting

Track materials in transit, manage subcontracting processes, and accurately evaluate externally processed materials.

Material requirements planning

Easily control your inventory and save time on planning by automating the creation of purchase and production orders. This ensures efficient management of your inventory levels.

Purchase orders

Capture complete order information to increase procurement transparency, including procurement details, prices, and delivery dates. Use SAP MM to select the best suppliers and manage orders effectively.

Control of receipts and movements

Automate the creation of documents for material receipts. Each delivery automatically generates material and accounting documents with all the necessary postings.

Issue of materials

Simplify inventory management by reserving goods for different account assignment objects based on stock availability. Automatic reservation generation optimizes the material issue process.

Account control and inventory valuation

Ensure reliable and accurate calculations by automatically generating accounting documents with every invoice creation.

Inventory and revaluation

Streamline inventory management with flexible options to select different inventory types, such as continuous, periodic, random, and date-based.

Flexible traceability

The SAP MM solution ensures seamless communication between all documents in the system, making it easier for an organization to manage its inventory. Thanks to this functionality, the chain of documents can be traced, which increases the transparency and efficiency of planning, purchasing, and invoice verification processes.

Data inheritance

Automatic transfer of master data from the reference document to the target document in the system significantly improves the efficiency of the documentation creation process, reducing labor costs and the risk of possible errors. This ensures accuracy and efficiency in generating the necessary documents for inventory management.

Dashboards

A flexible system of operational and analytical reports, combined in one place, allows you to more effectively manage resources in the organization. This reduces time spent on data analysis and operational execution of functions, minimizing the need to switch between different screens and increasing the overall productivity of management processes.

Residue control

Illiquid and low-turnover inventories can lead to a slowdown in cash flow and excessive storage costs. Using the system to monitor inventory levels allows for timely identification and control of such risks, optimizing costs and increasing the financial efficiency of the business.

SAP Material Management integrates with other SAP modules, enabling end-to-end visibility and automation across procurement, logistics, finance, and production. Below are the most impactful integrations and the types of data exchanged:

SAP S/4HANA / ECC: Provides core material master data, business partner information, and integration with enterprise-wide processes.
SAP FI / CO: Supports financial reporting, cost accounting, and material cost calculations linked to procurement and inventory data.
SAP PP: Connects material requirements planning with production orders, ensuring the timely availability of raw materials and components.
SAP QM: Embeds quality checks into procurement and goods movements, ensuring compliance and material reliability.
SAP WM: Manages inbound/outbound logistics, stock placement, picking, and warehouse operations.
SAP EWM / SAP PM / SAP PS: Extend SAP MM with advanced logistics capabilities, service management, and project-driven control of material resources.

SAP MM streamlines procurement and MRP processes for a manufacturing scenario, ensuring production continuity and cost savings. This results in:

Automatic planning and approval workflows in SAP MM, cutting the procurement cycle.
Centralized supplier catalogs managed within SAP MM, reducing warehouse stock.
End-to-end cost tracking through SAP MM integration with PP and FI, improving production continuity.

Why LeverX?

Proven track record

For over 20 years, we have helped businesses worldwide succeed with SAP. We’ve already completed 950+ projects for over 800 clients, including top names on the Fortune 500 list.

Industry experts

The LeverX team comprises professionals with hands-on knowledge in 30+ industries, including manufacturing, logistics, and oil  and gas.

SAP partnership

We implement SAP projects end-to-end  and collaborate with SAP on the development and enhancement of its existing solutions.

Quality and security track record

LeverX operates in compliance with international standards such as ISO 9001, ISO 27001, ISO 22301, and ISO 55001, ensuring reliability and quality in every project.

Investment in innovation

We actively integrate advanced technologies, such as Data Science, IoT, AI, Big Data, Blockchain, and others, to help clients efficiently address their business challenges.

Flexibility

Our team is available 24/7, which enables us to quickly deploy projects, maintain process transparency, and adapt each development phase to meet your specific requirements.

SAP MM Implementation Roadmap

We follow the SAP Activate methodology, which breaks down the implementation of SAP MM into six essential stages:

Current Processes Evaluation: Assess existing business processes and identify the organization's needs.
Defining Technical Requirements: Create a detailed specification of the functional and technical needs of the new system.

Discover

Setting Goals and Objectives: Establish and agree on the goals to be achieved throughout the project.
Assembling the Project Team: Appoint team members and define their roles and responsibilities.
Project Plan Development: Create a comprehensive plan that outlines project phases, timelines, resources, and key performance indicators.
Budget Determination: Estimate and approve the budget needed for implementing SAP MM.
Specifications Preparation: Develop the technical and functional specifications for the development team.

Prepare

Ensuring Business Requirements are Met: Check that SAP MM aligns with business requirements and project objectives.
Data Validation: Verify the accuracy and compliance of the data.

Explore

Data Migration: Transfer data from existing systems to SAP MM.
System Configuration: Set up SAP MM according to requirements and specifications.
Customization: Develop additional features and modules, if the standard solution does not meet all needs.
Integrations: Configure SAP MM to work with other IT systems and applications.

Realize

Testing: Perform functional, integration, regression, and load testing to ensure that all aspects of SAP MM work correctly.
User Training: Organize sessions to help users become familiar with the new system.

Deploy

System Readiness Check: Verify that the system is ready for operational use.
Launch: Officially transition to active use of SAP MM.
Ongoing Support: Continuously monitor SAP MM to identify and resolve any issues.

Run

FAQ

What is SAP Material Management (SAP MM)?

It's the part of SAP that handles material flows, such as purchasing, inventory, and supplier and financial communications. Companies often realize the value of this system when something goes wrong: a missing delivery, a mismatched invoice, or a plant waiting for raw materials that were only available on paper. SAP MM ties these threads together so that a single purchase order automatically updates inventory, cost postings, and supplier data.

How does SAP MM differ from manual procurement systems?

Manual approaches typically involve working with Excel and email. But today, this is risky: numbers don't match, approvals are lost, and payments are delayed. In SAP MM, all stages are interconnected — request, order, receipt, invoice. The system isn't perfect, but it reduces disputes and speeds up month-end closing. Companies can reduce the days from their closing cycle simply by automating invoice verification.

Can SAP MM scale as a business grows?

Yes, but scaling isn't just about adding users. A small manufacturer might start with simple inventory tracking, and ten years later, they might be using the same system across multiple plants, processing data in different currencies, and generating reports. Customers don't have to abandon SAP MM; they can simply expand it. This continuity saves money and eliminates many problems.

What challenges does SAP MM solve during global operations?

Cross-border regulations are complex — security regulations, electronic record requirements, and local VAT requirements in each country impact procurement. Without integration, you must reconcile data across different ledgers and hope nothing slips through the cracks. SAP MM doesn't eliminate complexity, but it provides a unified workflow: suppliers in other currencies, batch tracking for pharmaceuticals, and customs transactions during imports. This consistency often differentiates between passing an audit and dealing with paperwork.

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An expert will reach out to you to discuss your specific needs and requirements.
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We'll sign an NDA to ensure any sensitive information is kept secure and confidential.
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We'll work with you to prepare a customized proposal based on the project's scope, timeline, and budget.