Logistics

The term Logistics encompasses inter-related procedures ranging from the acquisition, storage, production, distribution and delivery of goods and services. SAP™ offers in its core ERP product, several modules that are fully integrated to each-other as well as with the Accounting and controlling functions:

• Materials Management (MM) - the materials management component is the foundation for the logistics functions of a company. The component includes purchasing functionality, inventory movements, accounts payable and the material master file, which contains the information on all materials and services used at a company.
• Sales and Distribution (SD) - the sales and distribution component incorporates the processes from customer order to the delivery of the product to the customer. The component includes the sales functions, pricing, picking, packing and shipping.
• Quality Management (QM) - the quality management component is used to ensure and improve on the quality of your company's products. The functions of this component include the planning and execution of quality inspections of purchased and finished products.
• Production Planning (PP) - the production planning component manages a company's production process. The functions of this component include capacity planning of a company's production, master production scheduling (MPS), material requirements planning (MRP) and the shop floor functions of producing a company's finished products.
• Customer Service (CS) - the customer service component manages a company's service that it provides to customers for repairs and warranties. Items can be sent back for repair or visits made by staff to customer facilities. If a company makes finished products that are sold with warranties, then the SAP customer service component will help a company to service and repair those items with maximum efficiency.
• Warehouse Management (WM) - the warehouse management component helps companies to accurately manage inventory and maximize storage capacity. This component can reduce time it takes to place and remove items from the warehouse by suggesting the most efficient location to store a material and the most efficient way to place and remove that material from the warehouse.
• Plant Maintenance (PM) - the plant maintenance component is used to maintain the equipment that is used in the production of your company's finished products. The component focuses on the planning and execution of preventive maintenance on equipment and tools used in the production process.

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