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Über dieses Buch

This book focusses on the after sales business and presents the Service Parts Planning (SPP) solution which was developed by SAP in a joint effort with Caterpillar and Ford in order to address the specific planning problems of service parts. The book explains the processes, structures, and functions of this solution and is targeted at decision makers, project members and project managers who are involved in an implementation of SAP Service Parts Planning or for users who want to gain a better understanding of the state of art in spare parts planning and the SAP Service Parts Planning software.

Inhaltsverzeichnis

Frontmatter

1. Service Parts Planning Overview

Abstract
Supply chain management is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. SCOR structures the supply chain management processes into plan, source, make, deliver and return (SCOR 2006). Another way to structure the processes is to differentiate between goods movements within the company and goods movements to the external customer resulting in a structure as demand planning, order fulfilment, distribution, production and procurement (Dickersbach 2008). These structures fit for most of the companies—at least we are not aware of any counter-example—even though the supply chain and the supply chain management might look very different from company to company—especially across different industries. From this point of view, the same approach fits for service parts as well. Nevertheless there are several specific features for service parts planning which have justified SAP AG in alliance with Caterpillar Logistics Services, Inc. and Ford Motor Company to build a completely new solution for Service Parts Management (SPM). According to the nature of the development partners, the primary industry focus within the SPM solution is engineering, construction and automotive.
Jörg Thomas Dickersbach, Michael F. Passon

2. Master Data, Services and Basis Functions

Abstract
One of the specifics of the service parts solution is that the supply chain network has a tree-like structure with one or more entry location—this is where the supplier delivers to—and for each entry location (optionally) one or more child locations. Looking from the demand side, there is a strict single sourcing. This fix and hierarchical distribution structure is modelled as a bill of distribution (BOD). The BOD is used throughout the whole service parts planning solution—from capture demand to inventory balancing.
Jörg Thomas Dickersbach, Michael F. Passon

3. Capture and Manage Demand History

Abstract
The demand history is the basis for forecasting and the stocking decision. Therefore the capturing of the demand history is the first step for service parts planning. The sales history is usually loaded from either SAP CRM™, SAP ERP or from Dealer Management System (DMS) (or for test purposes from a flat file) using the SAP BI™ data staging process. There is one exception: In the course of the OEMMI scenario, the data is loaded from XML messages received via SAP PI (since the demand history at the OEM’s customer is used). During the upload the data is processed in order to fit the specifics of service parts planning—e.g. an aggregation along the Bill of Distribution (BOD) is performed and other steps which are explained in Sect. 3.2.2. The demand history is stored both on item level (in the Data Store Object (DSO) 9ARAWDAT) and on aggregated level (in the info cube 9ADEMAND).
Jörg Thomas Dickersbach, Michael F. Passon

4. Stocking Decision

Abstract
One characteristic of service parts planning is the huge number of products and locations. In order to reduce inventory and warehouse costs not all products are kept in all locations. The decision whether a product is stored in a location depends on the demand and on the costs for the products. The decision is recorded in the authorised stocking list (ASL). The function of the ASL is modelled in APO by the replenishment indicator, see next section. There is however no standard report to display the replenishment indicator for multiple products.
Jörg Thomas Dickersbach, Michael F. Passon

5. Forecasting

Abstract
Since service parts planning is mainly a make-to-stock respectively a procure-to-stock process, planning is almost entirely based on the forecast. The forecast drives the procurement and replenishment of service parts either directly or indirectly as an input for the safety stock determination. The basis for forecasting is the aggregated demand history (including realignment and interactive changes). Depending on the forecast strategy, not only the demand quantity but also the number of order items and the average demand quantity per order item might be used as an input (per forecast strategy only two out of the three).
Jörg Thomas Dickersbach, Michael F. Passon

6. Economic Order Quantity and Safety Stock

Abstract
Most of the service parts—especially in the automotive and the engineering industry—have an immediate demand, i.e. the service part has to be available on stock. Since the forecast is always just an estimation of the future demand, it is necessary to compensate the deviations from the real demand (and the irregularities of the supply) by safety stock.
Jörg Thomas Dickersbach, Michael F. Passon

7. Surplus and Obsolescence Planning

Abstract
The goal of surplus and obsolescence planning is to identify inventory within the supply network—i.e. the BOD—which exceeds the projected demand and therefore only consumes warehouse space. In order to identify the surplus and remove it from the concerned warehouses, first the total surplus within the supply network is determined. This is done based on the total expected demand (including a safety buffer) and the total available stock and the stock in transit. In a second step the total surplus is disaggregated—in other words, the surplus quantities for the individual locations are determined. If the value of the surplus is within the predefined limits, orders for scrapping the surplus are created automatically. In the other case the scrap orders need to be approved interactively. Figure 7.1 shows the overview of the surplus and obsolescence planning process.
Jörg Thomas Dickersbach, Michael F. Passon

8. Distribution Requirements Planning

Abstract
One characteristic of the service parts planning solution is the tree structure which is defined in the BOD. The implication of this structure is that the demand for the whole network is sourced via external procurement at the entry location (or at the entry locations, if the BOD has multiple entry locations). The purpose of DRP is to determine the procurement quantity.
Jörg Thomas Dickersbach, Michael F. Passon

9. Procurement Approval

Abstract
The purpose of the procurement approval process is to prevent an unusually high procurement—quantity or value—without notice. The procurement approval process is subsequent to the DRP run, Fig. 9.1.
Jörg Thomas Dickersbach, Michael F. Passon

10. Deployment

Abstract
Deployment is concerned with the distribution of the goods along the BOD. While DRP calculates the requirements along the BOD in order to determine the procurement quantity at the entry location, deployment creates stock transfer orders from each parent location to its child locations. Figure 10.1 shows an overview of the process.
Jörg Thomas Dickersbach, Michael F. Passon

11. Inventory Balancing

Abstract
The supply of locations is done via deployment along the BOD. Lateral stock transfers are usually avoided because there are more costly: The service part has to transferred one more time, which means additional costs, and the lateral transfer itself might be less cost efficient due to low volume. In exceptional cases a lateral stock transfer is desired nevertheless (Fig. 11.1).
Jörg Thomas Dickersbach, Michael F. Passon

12. Interchangeability

Abstract
There are two types of interchangeability which are used and supported by SPP. One is the supersession chain, which models the replacement of part by one or more other parts in the sense phasing out an old part and phasing in the new parts.
Jörg Thomas Dickersbach, Michael F. Passon

13. Sales Order Fulfilment

Abstract
Within service parts management two scenarios for sales order fulfilment exist: sales from stock and third party order processing (TPOP). Depending on the system landscape—whether SAP CRM™ or SAP ERP™ is used for sales order taking—only sales from stock is possible, since TPOP requires SAP CRM™.
Jörg Thomas Dickersbach, Michael F. Passon

14. Monitoring and Reporting

Abstract
Within the service parts management solution different tools exist for monitoring and reporting. Monitoring is used to observe the supply chain in order to help the planner intervening in case of imbalances and other problems. Imbalances are shown in the shortage monitor, and for other problems the alert monitor is used. Both tools are in SAP SNC™ and allow the supplier to have a look at the imbalances and other problems that concern him. As a third tool in SAP SNC™, the SPP cockpit provides an overview of the planning situation of a service part within the BOD—e.g. stock, stock in transit, forecast etc. The data for monitoring in SAP SNC™ is read mainly from tables that are used (and filled) by SAP APO™ applications.
Jörg Thomas Dickersbach, Michael F. Passon

15. Original Equipment Manufacturer Managed Inventory

Abstract
In order to activate generally the process of OEM MI planning in SPP, the following setting in the master data has to be made. Since a B2B business is represented in the SPP-System, the corresponding partners and locations must exist as master data. On one hand the supplier location, which is the delivering respectively the customer facing OEM-location, and which is in SPP of location type 1001 (plant) or 1002 (distribution center). On the other hand the customer (end customer, wholesaler or retailer) needs to be modelled as a separate location of location type 1010 (customer). This customer location extends the corresponding BOD and is integrated as location of the lowest child level in the hierarchy as shown in Fig. 15.3.
Jörg Thomas Dickersbach, Michael F. Passon

16. Outlook

Abstract
Similar to the other components of the SAP Business Suite (SAP ERP, SAP CRM, etc.), SPP within SAP SCM was improved over many years, adding new functionalities that are described in this second edition, like the SPP Planner’s Worklist, OEM Managed Inventory or Leading Indicator Forecast.
Jörg Thomas Dickersbach, Michael F. Passon

Backmatter

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