Sourcing and procurement in S/4 HANA refers to the process of identifying, evaluating, and engaging with suppliers to obtain the goods and services necessary for the business. This involves the entire process from identifying the need for goods or services, negotiating with suppliers, and managing the procurement process until the goods or services are received.
On the other hand, Materials Management in S/4 HANA refers to the process of managing the inventory of the materials procured through sourcing and procurement. It involves the design, planning, and control of the flow of materials from the point of procurement to the point of consumption. This includes activities such as inventory management, material requirements planning, and goods receipt and invoice verification.
In summary, while sourcing and procurement deal with the acquisition of goods and services, materials management deals with the management of the inventory and the flow of materials within the organization. A clear understanding of both processes is essential to ensure that the business has the necessary resources to meet its needs while maintaining efficient inventory levels.
A final result definition for the difference between Sourcing and procurement in S/4 HANA vs Materials management in S/4 HANA would be that while sourcing and procurement focus on the acquisition of goods and services, materials management is concerned with the design, planning, and control of the flow of materials from the point of procurement to the point of consumption, including inventory management, material requirements planning, and goods receipt and invoice verification.