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SAP MM Vs SAP SRM | Difference Between SAP MM and SAP SRM

Last Updated : 15 Dec, 2023
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SAP MM helps companies optimize their material and logistics management procedures, guaranteeing effective and economical handling of items. SAP SRM stands for Supplier Relationship Management and is an efficient tool that helps companies optimize procurement operations and helps to improve relationships with suppliers and other business vendors.

What is SAP MM?

SAP MM, which stands for Materials Management, is a critical module within the SAP ERP (Enterprise Resource Planning) system. Its primary focus is on managing an organization’s procurement processes and the logistics of the supply chain. SAP MM is designed to streamline and optimize the management of materials, ensuring that businesses can effectively plan, procure, store, track, and consume goods.

What is SAP SRM?

SAP SRM is an abbreviation for SAP Supplier Relationship Management. It is crucial in supply chain management. This is because effective supplier relationship management concretizes supply chain processes. SAP supplier relationship management automates the entire procurement life cycle. With its automation capabilities, it streamlines a wide range of operations and other functionalities, from procurement to payment. It also provides goods and services, processes purchase orders and makes payments at the end through a payment gateway and an inventory management system. It enables effective interactions with suppliers of goods and services, as well as the development of strong relationships with suppliers.



Difference Between SAP MM and SAP SRM:

Here are the following differences between SAP MM and SAP SRM:



SAP MM, stands for Materials Management.

SAP SRM stands for SAP Supplier Relationship Management

It Primarily deals with the management of procurement processes, inventory management, material master data, and related activities.

focusing on optimizing the entire supply chain operations.

It’s revolved around the procurement side of things within an organization.

SCM involves planning and coordinating the movement of goods, managing resources across the supply chain, forecasting demand, and ensuring efficient production and delivery.

SAP MM is a subset or a component of SAP SCM

SAP SCM is Superset of SAP MM.

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