SAP MM is one of the core components of the SAP ERP application. This component is used for managing all the activities and information that a company requires to use a Material or Service in carrying out its business processes and transactions.

The SAP MM component is the backbone of the logistics supply chain of any company, handling aspects like purchasing, vendor management, goods receipt, requirements planning, inventory control, material valuation and account determination.

It is heavily integrated with the other core components, like finance (FI), controlling (CO), production planning (PP), quality management (QM), sales and distribution (SD), plant maintenance (PM) and warehouse management (WM).

It deals with managing the materials (products and/or services) and resources of an organization with the aim of accelerating productivity and reducing costs. At the same time, SAP MM is quite versatile to accommodate changes that are frequent in any business environment.

The SAP MM component is used by a company to ensure that there is no shortage of material stock as required for carrying out various business activities at different locations of the company. It helps to speed up the procurement and material management / handling activities, making the business run smoothly and increased productivity all around because of timely availability of the required stock.