What Is Sap Inventory Management? (Full Detail!)

Sap Inventory Management

SAP Inventory management means taking stocks of products, possibly in a warehouse with special software. It is a service that comes in handy for people who own businesses on a large scale, and SAP Inventory Manager comes in handy for SAP Inventory managers. 

Key Takeaways

  • With the SAP Inventory Manager, you get a mobile device to put in the record
  • Undoubtedly, recording on paper is riskier than recording with a mobile device
  • SAP Inventory Manager helps you check if you have up to that amount in your warehouse
  • With SAP Inventory Management and the tool, you can have and arrange all your purchase orders in one place

Functions Of SAP Inventory Manager

Functions Of SAP Inventory Manager

Below are some functions of the SAP Inventory Manager:

Inventory Count: Inventory count typically refers to knowing the number of available products you might have in your warehouse, or anywhere you keep your goods and products. Commonly, people do a physical inventory count and record it in a logbook or file. However, with the SAP Inventory Manager, you get a mobile device to put in the record. Now, you have better peace of mind that you have the records on a device safely. Undoubtedly, recording on paper is riskier than recording with a mobile device. The calculation is also made easier with this device. So, when you do your manual calculation, you can also cross-check with that of the device.

Availability Of Materials: Asides from taking the stock count to know the total number of available stock, you might also need to know the specific availability of some materials. For example, suppose you are into an array of farm produce and a client comes requesting cocoa. Now, you will need to know the exact number of cocoa available. It helps you determine if you can deliver the amount that the client desires. For example, if the client needs 500 bags of cocoa, SAP Inventory Manager helps you check if you have up to that amount in your warehouse. It makes work easier as you can check from your device than having to recount again.

Movement: It is common knowledge that when dealing with businesses that involve SAP Inventory Management, there will be movement of materials and products from one end to the other. Most times, it is from you (the supplier) to the client. With the tool, you can input any change that occurs during movement. For example, suppose you supply 500 bags of cocoa and you are left with only two bags. You can easily input this into your tool. In addition, it updates your database automatically. Therefore, it is not out of place to say that it keeps you updated and ensures that you do not lose track of anything.

Receipt: Did you know that you can easily create receipts with your SAP Inventory Manager tool? Many people are not aware of this function. Many Inventory Managers are always striving to get this tool as it will make work easier. Understandably, there should always be an exchange of receipt between the sender and receiver to show that a transaction has happened. Now, this tool lets you speedily get the receipt that you give to your clients. We see that it allows you to do things quickly and still have time for other aspects of the business.

Arrangement Of Purchase Order: What do you think about having all your purchase orders in one place? Experts in the industry will understand that a purchase order shows transactions between you and your client. It is that document that clearly states the clients’ requirements, ensuring that you as a supplier don’t falter. And, you must keep it safe even after the transaction as you never can tell when it will come in handy. With SAP Inventory Management and the tool, you can have and arrange all your purchase orders in one place with ease. So, you can easily refer to them at any time you desire.

Below is a table highlighting some places and the yearly salary of SAP Inventory Managers in these places:

PlaceYearly Salary 
South Africa$108,160

Benefits Of SAP Inventory Management 

Benefits Of SAP Inventory Management 

Now that you know the functions of SAP Inventory Management, especially with its tool, here are its benefits. These are reasons why you cannot afford not to carry our SAP Inventory Management:

Security: One of the top reasons why people engage in SAP Inventory Management is for security. A certain peace of mind comes with having an idea of all your products, instead of just relying on what your staff tells you. Typically, there is usually a tight relationship between the inventory manager and the owner of the business. Sometimes, we see that business owners fall prey to dubious staff. First, the staff gives them a false record that is lesser than what is available. Then, the staff goes ahead to steal. But when you do regular SAP Inventory Management, you will lower the chances of this happening. 

Customization: With SAP Inventory Management, you can customize the device and tool to your taste. The idea here is to ensure that you have records of all departments, and it comes in handy that the tool is flexible for such changes. Understandably, all businesses will not have the same number of departments. So, it will not make sense for the device to be stagnant. Therefore, with SAP Inventory, you can do different customization that will lead to efficiency. Also, you can input some of your business details to make it more relatable; for example, your brand colors or other factors that signify your business.

Efficient Customer Delivery: Recall how we earlier mentioned that you get to have more time to handle other business affairs with SAP Inventory Management. It comes to play with customer delivery. Not only are your clients looking to get services from your business, but they also expect a certain level of warmth. However, you will not give this warmth if you are stressed with the stock count. But once you have everything in place, you will not only give the warmth but also enjoy that there are no mistakes with your customers’ orders. One thing that drives customers away is when the supplier makes mistakes. It gives them a feeling that you are not seeing them as important to your business.

Cost-efficient: Did you know that you spend less when you carry out SAP inventory management? The idea here is that you are aware of the exact figures in your warehouse, and you work with it. Imagine a situation where you constantly get false figures. It will put a dent in your pocket when you always have to restock almost every week while you have these products in the warehouse. But because some of your staff may be dubious, they decide to give you the wrong figures. When you have the correct figures, you will have peace of mind, lesser worries, and will make more money.

Transparency: Understandably, no one is above mistakes. Sometimes, it may not be that your staff engaged in any dubious act, but they genuinely made mistakes. However, you can avoid all these with the SAP Inventory Management as it allows you to get the right figures, which results in transparency. The tool monitors everything about your business, ensuring that there is no mistake. The goal is to ensure that your competitors do not have anything on you. Also, it lets you engage in the tasks of different customers simultaneously without getting confused or having a mix-up.


Here are some of the most frequently asked questions about SAP Inventory Management:

What Does SAP Stand For In Inventory Management?

SAP stands for Systems Applications and Products. As earlier mentioned, it aids in ensuring that you have a clear database of your products, leading to the smooth running of your business. 

With SAP, you get to experience lesser stress in Inventory management. We can liken SAP to a mower. It is common knowledge that it is easier to use a mower than a cutlass for grasses. In the same way, it is easier to use SAP than any manual method for inventory management.

What Is Inventory Management?

Inventory management is the total organization of a company’s inventory. It goes beyond keeping stock of the product as it lets you arrange data you have gotten. It is why you also get to have purchase orders, and it helps you have an efficient selling process.

We always advise that no business or company should neglect inventory management as it is essential. 


There is no need to over flog the essence of Inventory management, and the process becomes smoother if SAP. If your company has not incorporated SAP Inventory management, the time is now to start using it.

To better run your business, use SAP Inventory Management, and you will be glad that you did. So far, many high-ranking companies have been using it, and there have been no complaints.


1. https://www.selecthub.com/inventory-management-software/sap-inventory-management/
2. https://www.corevist.com/sap-inventory-management/

Last Updated on November 2, 2022 by Magalie D.

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