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SAP Supply Chain Management (SAP SCM)




Shrinking product life cycles have created growing inventories of spare parts that service organizations must effectively manage and supported for extensive periods. Service parts planning and replenishment strategies must ensure that requested parts are at the right location, at the right time, and in the right condition. Proper service process support also requires the planning of spare parts based on service-relevant criteria, such as the size of the installed base of products, the significance of the part within the operation, and the defined service level agreements with customers


In planning and execution processes supported by SAP SCM, consideration is given to the product life cycles of service parts to make sure that service parts inventories are used efficiently and the total capital bound in stock items can be significantly reduced. The supply chain functionality enables companies to manage service parts logistics (forward and reverse logistics and complex warehouse management) and integrates with back-end systems for tasks such as financial planning or maintenance planning. SAP SCM provides visibility throughout the global parts network, enabling warehouse and logistics organizations to deliver efficient, cost-effective service parts fulfillment.

Select capabilities supporting service management in SAP SCM include:
 

  • Service parts planning The service parts planning capabilities of SAP SCM including service parts demand forecast to inventory positioning and replenishment ensure that inventory levels at service parts stocking locations are sufficient at any point to reduce inventory levels, while at the same time satisfying customer service levels (demand forecasting and planning, inventory planning, distribution requirement planning, deployment, parts interchangeability/supercession, planner segmentation, and classification schemas).
  • Service parts execution Service parts execution coordinates the fastest and most cost-effective availability of service parts, enabling efficient spare parts logistics and high volume warehouse management to achieve the promised customer service levels. Core processes covered include service parts order management, extended warehouse management, inventory management, transportation management, proactive exception management, quality management, regulatory compliance and customs management, service part collaboration (supplier and customer collaboration), and service part analytics.
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A D V E R T I S E M E N T

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