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.

520 results

  1. Monitor Your Entire SAP Landscape From One Central Point

    Published: 15/October/2008

    Reading time: 13 mins

    ManagerLearn how to centrally monitor SAP landscapes by setting up and using SAP Solution Manager’s Computing Center Management System (CCMS) functionality. Key Concept Computing Center Management System (CCMS) allows continuous monitoring of SAP R/3 and SAP ERP systems at the operating system, network, database, and application levels. This is SAP’s central infrastructure for monitoring system...…

  2. Get the Most Out of Your CRM Consultants

    Published: 15/October/2005

    Reading time: 20 mins

    Choosing the right consultant for your CRM project could mean the difference between success and failure or keeping within or exceeding your budget. Examine what questions to ask potential consultants and how the issues of knowledge transfer, testing, and ongoing maintenance and support affect your project. Key Concept In an integrated mySAP CRM, the solution...…

  3. Segment Your Customers to Target Them More Efficiently

    Published: 15/December/2005

    Reading time: 14 mins

    Obtaining a better view of your customers by segmenting them allows you to launch targeted marketing programs, promotions, campaigns, and service. You can upload data in a simple format (such as Excel) into mySAP CRM to define customer attributes for effective marketing programs. Key Concept An inference dimension refers to a profile you build for...…

  4. Set Up Users for SAP Biller Direct the Right Way

    Published: 15/April/2007

    Reading time: 18 mins

    Look into the user management concept within SAP Biller Direct to understand how to set up users, assign business partners, and provide ongoing enrollment and user registration services. See the fundamental differences between various user types and review recommendations for user management locations either within the SAP system or in a separate database. Key Concept...…

  5. Planning with TP/VS: The Third Pillar of Transportation Management

    Published: 01/August/2006

    Reading time: 23 mins

    See how Transportation Planning/Vehicle Scheduling (TP/VS) enhances and complements the SAP Logistics Execution System solution and takes transportation planning to the next level with full integration into the document flow. Key Concept Transportation Planning/Vehicle Scheduling (TP/VS) supports any transportation process in a company. It helps the transportation planner in daily tasks with automatic tools, such...…

  6. SAP GRC Global Trade Services Eases Product Classification

    Published: 15/February/2009

    Reading time: 9 mins

    Discover how you can use the classification tool available in SAP Governance, Risk, and Compliance Global Trade Services to maintain and assign the export/import classification, Commodity Code, and the Harmonized Tariff System. Key Concept An Export Control Classification Number (ECCN) is a specific five-character alpha-numeric number used to identify the level of control for an...…

  7. 2 Enhancements Unlock the Potential of SAP Wave Picking

    Published: 12/June/2009

    Reading time: 15 mins

    Improve warehouse productivity and efficiency by streamlining your warehouse activities with wave creation logic and a wave monitor. Key Concept A warehouse pick wave consists of a group of deliveries or work packages that need to be processed together during picking. For example, these deliveries need to ship together on the same truck, or you...…

  8. Calculate the Best Fitting Forecast with SAP APO Macros, Forecast Errors, and Process Chains

    Published: 22/July/2009

    Reading time: 19 mins

    Learn how to implement a fully automated forecast analysis system with model comparison within SAP Advanced Planning & Optimization demand planning. Key Concept A process chain is a series of processes that waits in the background for an event. Some of these processes can trigger a separate event that starts other processes, hence forming a...…

  9. ITSmobile: A New Technology for Warehouse RF Applications

    Published: 15/June/2008

    Reading time: 24 mins

    /MobileEvaluate ways ITSmobile can enhance your warehouse operations. Get valuable implementation tips and insights to consider. Key Concept Internet Transaction Server mobile (ITSmobile) replaces WebSAPConsole as the latest SAP technology for developing mobile data entry applications using GUI-based handheld computers. ITSmobile allows the user to execute warehouse radio frequency (RF) transactions on the mobile browser...…

  10. Efficient Production Planning Using SKU Groups with the SNP Optimizer

    Published: 01/May/2014

    Reading time: 31 mins

    SCMFind out how to overcome the limitations of Supply Network Planning’s aggregate and block planning capabilities. Key Concept Aggregate planning is a feature in Supply Network Planning (SNP) whereby net requirements calculation from medium to long term can be executed at a product group level using aggregate objects such as SKU groups, location groups, resource...…