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How can you relate MM/SD module to SCM.

How can you relate MM/SD module to SCM. If so how is it done and why is it needed..



Dear Raj Luxmi

<b>Supply chain management (SCM)</b> is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies.

It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed).

Supply chain management flows can be divided into three main flows:

  • The product flow

  • The information flow

  • The finances flow

The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting ordersand updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.

In SAP, SD will take care of all sales related activities with customer while MM will take care of all inventory activities with Vendor and inter plant activities.


G. Lakshmipathi

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