-
SAP MM's Effect on Organisational Productivity and Inventory Control: An Empirical Research on the Manufacturing Sector
Prof. (DR.) VARSHA S. SUKHADEVE SAWITA DHARMAPAL DONGRE
Abstract:
Purpose: This study examines the influence of the SAP Materials Management (MM) module on organisational efficiency and inventory control in the manufacturing sector. The main goal is to analyse the impact of implementing SAP MM on efficiency, cost reduction, and overall productivity in manufacturing companies.
Originality: While prior studies have examined different aspects of Enterprise Resource Planning (ERP) systems, this research specifically concentrates on the distinctive contributions of the SAP MM module to enhancing productivity and inventory control. This research focuses primarily on the manufacturing sector, offering industry-specific insights that are currently lacking in the existing literature.
Methodology: The study utilised an empirical research design, which involved gathering quantitative data through surveys and conducting interviews with important individuals at manufacturing companies that have deployed SAP MM. The analysis examined data from 50 manufacturing enterprises located throughout India. The association between the adoption of SAP MM and improvements in inventory control and productivity measures was assessed using statistical tools such as regression analysis and ANOVA.
Future Scope: The research opens up opportunities for future investigations into the long-term effects of SAP MM, comparisons across other industries, and the incorporation of sophisticated analytics and AI into SAP MM to improve decision-making. In addition, future research might investigate the influence of SAP MM on additional performance metrics, such as customer satisfaction and supply chain resilience.
Implications: The results emphasise the importance of SAP MM in enhancing inventory management, minimising the time it takes to receive goods, and enhancing the purchasing procedures. These enhancements not only improve the efficiency of operations but also lead to significant cost reductions and increased output. The report provides valuable insights for manufacturing companies that are contemplating or already using SAP MM, emphasising crucial areas to concentrate on in order to optimise advantages.
Conclusion: the empirical evidence indicates that implementing SAP MM has a positive impact on inventory control and organisational productivity in the manufacturing sector. SAP MM facilitates the optimisation of material management procedures, leading to improved inventory precision, decreased expenses, and heightened overall efficiency. This report provides significant insights into the field of ERP deployment and offers practical tips for manufacturing companies seeking to utilise SAP MM to gain a competitive edge.
