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.

521 results

  1. Susan Zortea SAPinsider

    Members Who Inspire | Susan Zortea

    Published: 01/November/2021

    Reading time: 3 mins

    Name: Mitresh Kundalia Job Position: Principal Consultant Company: Quality Systems & Software LinkedIn: https://www.linkedin.com/in/mitresh/  Twitter: n/a How did you first hear about SAPinsider? I first heard of it back in the 1990s! You know back then the internet wasn’t available to everyone and as robust as the internet we know today. A colleague told me that…

  2. SAPinsider Event Keynote

    SAPinsider 2022: Education Driving Technology, Leadership, and Sustainability

    Published: 20/July/2022

    Reading time: 3 mins

    The SAPinsider 2022 conference is currently underway with an exciting gathering of SAP thought leaders, educators, speakers, and hands-on labs.

  3. “Our AI is designed to complement human ingenuity, not to replace it.”

    Published: 08/October/2023

    Reading time: 10 mins

    In an exclusive interview, SAPinsider sat down with John 'JG' Chirapurath, the Chief Marketing and Solutions Officer, SAP BTP and AI at SAP to discuss his background, role, and journey to joining SAP, the excitement surrounding BTP, SAP Build and its impact on customers, and AI at the core of SAP’s solutions. JG explains how…

  4. Defining ‘Good’ in SAP Today: Enabling Innovation Through Integrated Technologies and a Novel Approach to AI in Asset Management

    SAP S/4HANA has been evolving for nearly a decade, with the 2022 and 2023 versions representing the most advanced and stable solutions to date - exactly where SAP envisions its customers. But what does "good" look like in these versions? How can you assess your progress, and, most importantly, are you fully leveraging your current…

  5. Pruftechnik: Reengineering Master Data with Process Runner

    Reading time: 3 mins

    Pruftechnik enhanced its migration to SAP S/4HANA by utilizing insightsoftware’s Process Runner for automating data management and reengineering master data, significantly improving agility and efficiency across 40 processes and 300,000 records.

  6. SAP SuccessFactors Talent Intelligence Hub: Capabilities & Benefits

    Reading time: 2 mins

    Unleash the power of skills-based HR with SAP’s Talent Intelligence Hub. Tap into AI‑driven tools that build skill and competency libraries directly from job profiles, present intuitive “Growth Portfolio” dashboards, and surface personalized learning, job, and mentoring opportunities.

  7. From SNP Transformation World 2025 – Richard & Daniela Bühler

    Richard Bühler, Head of Global IT at Cerdia, and Daniela Bühler, Head of IT Applications at Cerdia, sat down with Robert Holland of ERP Today to talk about their move to SAP S/4HANA. Having a long history with SAP, beginning with SAP R/2 and SAP R/3, and following a launch as a standalone company in…

  8. System decommissioning vs. active archiving: A practical guide for SAP teams

    Reading time: 6 mins

    Running legacy systems just to keep old data accessible is costly and risky. This guide will help you understand how system decommissioning and active archiving work together to simplify data management, strengthen compliance, and prepare your business for the future.

  9. SAPinsider Magazine July 2022 Issue

    Published: 19/July/2022

    Reading time: 1 mins

    SAPinsider magazine has been the go-to, independent choice for executives, managers, consultants, and most importantly, implementation and development teams running SAP software. SAPinsider magazine showcases research gleaned from the SAP Community, case studies of successful customer projects, and insights from experts on how SAP software works and strategies and best practices using SAP solutions to…

  10. Customer experience is king in B2B ecommerce

    Published: 24/June/2024

    Reading time: 3 mins

    Business transformation has placed the chief marketing officer (CMO) and chief experience officer (CXO) in the driver’s seat of business-to-business (B2B) ecommerce portals as customer experience becomes a differentiator for organisations, according to DXC Digital Practice Manager Erik Burton.  “Business-to-consumer (B2C) online digital channels have traditionally been driven by business, whereas B2B ecommerce portals are…