Plenty of information available on each with a few simple Google searches. I would like to answer this in 2 aspects — 1. Systems or SAP modules. Business Functionality. MM is generally intensively used for Manufacturing industries where inventory management is a key element as most of their products required to kept in stock.
SRM is intensively used in services industry where their majority of the purchase is either services or goods for immediate consumption and their requirement is to purchase and pay and not bothered about tedious inventory management administration work — Goods receipt, Goods Issue, Stock takes. Other reason is to monitor their spend so that better contracts can be negotiated using SRM. SRM is used for self service procurement. Catalogs get set up by vendor with all the pricing conditions.
Individuals can have access to order and bypass the purchasing group. Catalogs can be maintained by you or the vendor. One or the other. Design has to account for new vendors and materials to identify the processes that must go back to procurement to set them up. The best quality answers are always coming from this site, also left to my own devices I might have forget about Ariba!
For example, procurement using Electronic catalog or E-Procurement. E-Procurement is now almost the norm and often even mandatory in Public Sector Procurement especially high-value.
Technically, it is a separate Server from ERP. No Account? Sign up. Suppliers can easily manage catalog data and this data can easily be integrated with business processes like accounting, finance and planning. Using SAP SRP product, you can streamline procure to pay lifecycle and improve communication with supplier and cost management. End-users can search products using multiple product catalog and helps them to find and purchase product that are compliant with purchase and procurement policy of the company.
Using SAP Supplier Relationship management, you can create reports related to procurement activities, compliance and contract management, and managing costing in procurement process. Once the purchase order is created, it is sent to the supplier.
Now wait until the supplier sends you the goods and they are received, at which time you make a goods receipt in MM. Yes, you may have a notice of early delivery, but it is excessive for small things like that.
Now, consider using SRM for this same function. The provider can offer you a better service and you get more for your money. SAP ERP Enterprise Resource Planning is a commercial software that will integrate all the information in a single software package taking into account various factors, such as time and cost.
Organizations can easily fulfill their business requirements with the help of SAP. SAP Materials Management MM is part of the logistics industry and helps manage the purchasing activity of an organization since purchase. It is compatible with all aspects of material management planning, control, etc. It is the backbone of the logistics area that includes modules such as sales and distribution, production planning, plant maintenance, project systems and warehouse management, which are extremely obsessed with the module.
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