SAP SPM

What is SPM?

Service parts management (SPM) is a cross-component solution to support and manage the extended service parts network. It consists of two business areas: service parts planning and service parts execution. Organizations often deal with a high number of stock-keeping units (SKUs) for aftermarket service that can come from multiple locations. Lifecycle management is important due to the large volume of SKUs and warranty agreements; surplus and obsolescence issues are common. SPM covers the entire range of service parts management activities, planning, execution, fulfillment, collaboration, and analytics.

What is SPM?

Service parts management (SPM) is a cross-component solution to support and manage the extended service parts network. It consists of two business areas: service parts planning and service parts execution. Organizations often deal with a high number of stock-keeping units (SKUs) for aftermarket service that can come from multiple locations. Lifecycle management is important due to the large volume of SKUs and warranty agreements; surplus and obsolescence issues are common. SPM covers the entire range of service parts management activities, planning, execution, fulfillment, collaboration, and analytics.

Key Capabilities of SAP Service Parts Management (SAP SPM) are:

• Architecture and Communication: Communication methods to transfer data through the SAP landscape
• Extended Inbound Delivery Processing: Exchange of advanced shipping notice (ASN) IDOCs, SAP Extended Warehouse Management (SAP EWM), or third-party orders to ensure accuracy
• Contract Packager Inbound: A contracted third-party service provider supporting the inbound processes
• Third-Party Order Processing: Support for direct shipping from the vendor to a customer
• Outbound Processing: Support for transmission of data between originating systems
• Transfer and Inventory Management: Transfers of stock from connected systems to the SAP EWM
• Complaints and Returns: Returns management for unused or damaged parts from customers
• Quality Management: Ability to perform quality inspections
• Transportation Cross-Docking: Consolidation of deliveries from different warehouses into one shipment
• Foreign Trade: For a bonded warehouse, letter of credit, or creating an intrastate declaration
• Business Package for External Users: Collaboration with ability to perform functions in a SAP NetWeaver portal

SAP now offers SAP Service Parts Management ES Bundle. This extends the capabilities of the existing platform with a seamless business network for external service parts inventory planning and optimization application. Prior solutions for this were only available through custom integration efforts.

5 SPM Benefits are:

1. Enhanced customer service
2. Visibility to see where the need is and where the parts are going
3. Ability to keep inventory low and to reduce carrying costs
4. Improved coordination and collaboration control of the network
5. Standardized processes

Vendor partners that can help with service part management are: Accenture, Capgemini, and Westernacher Consulting.

Key Resources for SAPinsiders:

• Consignment Process in Enterprise Asset Management Reduces Spare Parts Inventory. Gain insights on how to execute vendor consignment to reduce the inventory of spare parts.
• Squeezing Inventory into an Extract Value in an OEM Service Parts Environment. Learn how Barloworld Equipment in Southern Africa utilizes SAP Advanced Planning and Optimization to manage a massive amount of SKUs and plants.
• Track Multiple Manufacturer Part Numbers Effectively Using Manufacturer Part Number Management. Read about tips and tricks to set up manufacturer part numbers (MPNs) to manage multiple vendor part numbers effectively.