MM CYCLE IN SAP

MM is a shortened form of Material management. The above therefore is about Material management cycle in reference to how it occurs in SAP. Material management cycle is a series of activities that circulate between individuals and departments and even external organizations to attain the desired performance results of an organization or a company. Material management as a functional unit in any organization starts with the primary acquisition of the material followed by the consequent monitoring of movement of the material from one stage to another until the final use of the material either as it came in or in a more finished product. Material management cycle complexity varies widely depending on a number of factors.

Size of the organization; large organizations will have complex structures to be adhered to in the course of dispensation of service and processing of the materials. Though this cycle in even large organizations is made easier with the SAP application, the management and organization may take slightly more time as compared to smaller organizations. Because of the bureaucracy in the management and approval criteria in the large organizations, the cycle tends to take slightly a shorter time in small size organizations compared to large ones.

Size of the material being managed; the more the material involved or products involved in the size, the longer the time the cycle is likely to take. Taking for example an organization procuring goods for a single department and another procuring for larger more departments. It translates to the second one having more materials or rather products than the first one. This may have an effect of elongating the whole cycle hence making it take longer than the time it would take for the cycle in single department materials.

Command structure of an organization; the bureaucracy of organizations vary from one to the other. The more the managerial positions are in relation to the cycle the longer it is likely to take to get the cycle complete. This has been seen in large organizations where structures of management are long and the stages the approval has to go through all stated.

Availability of the Material; The cycle of material management may take longer in cases whereby after even the decision to acquire the material is reached the availability of the product in the market turns out to be scarce limiting the availability of these products to the organizations. This may result to stalled stages in the reaching of the final decision in the cycle causing it take longer unlike when the materials would be readily available.

Many organizations have laid down the stages that should be adhered to in the cycle and SAP makes it slightly faster unlike when it was manually managed. SAP establishes a means of communication through a series of channels between the users without necessarily having to make physical visits to the offices where those offering the services are. This has revolutionized the MM cycle worldwide resulting too many people embracing the services for convenience and ease of use.