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Component documentationService Parts Planning (SPP)

 

Service parts planning (SPP) provides planning functions specific to service parts and transparency throughout the supply chain, right from the moment demand occurs through to the delivery of the product. Planning for your service parts takes place in distribution structures (abbreviation: BOD - bill of distribution), which contain all of your locations. Locations can be, for example, distribution centers, contract packagers, or your customers and dealers. Alongside the current BOD, you can also work with future BODs. This means that you can define a specific time in the future when a BOD will replace a different BOD. The system takes this future BOD into account, for example, as part of forecasting and distribution requirements planning (DRP).

SPP considers the characteristics of each product during planning. It takes into account, for example, the locations at which you most need a certain product, whether a product is fast-moving or slow-moving, and the sales behavior of a product. Depending on these properties, you can decide for each product whether you want to perform period-based service parts planning based on the forecast or whether you would rather plan your service parts based on a reorder point. If you use period-based planning, SPP generates the forecast for a product either on the basis of past sales values or on the basis of leading indicators. We recommend using leading indicators as the basis for generating the forecast if you have reliable information about your installations, that is, about your equipment on the market, that are relevant for the future sales behavior of your service parts. If you are using past sales values as the basis for the forecast of a service part, SAP distinguishes between products with constant demand, trends, seasonal demand, and products with sporadic demand. SPP links the stocks within your BOD optimally with the actual demands. If you cannot meet the demand within your BOD, SPP plans the covering of these demands either through external procurement or repair. SPP automates most of the release and approval processes. In this way, SPP enables you to reduce your ordering and stockholding costs, improve service levels, and shorten your delivery times.

You can use all of these planning functions not only for your own locations, but also for your customers and dealers. You can include selected customer and dealers in the OEM-managed inventory process and, in this way, optimize their planning and stock situations.

In addition to your actual planning, you can also carry out a simulation of the planning. This means you can simulate a particular planning process and thus optimize parameters and settings.

To monitor and evaluate your planning optimally, SPP offers high-quality analytics applications that are well-suited to this purpose. In this way, SPP generates alerts in unscheduled or critical situations that occur during the planning process. SPP displays impending supply shortages in the shortage monitor so that you can take action manually in planning, if required, and thus prevent the shortage. You can analyze your complete planning process and the execution of your planning in the service fill monitor and the service loss analysis, and thereby identify strengths and weaknesses in your logistics chain. You can also use the inbound delivery monitor and the supplier delivery performance rating. These functions allow you to analyze and evaluate not only your internal planning and execution, but also the performance of your suppliers and freight forwarders.

Integration

In addition to the planning functions in SAP Advanced Planning and Optimization (SAP APO), you can also use many analytics and monitoring functions in SAP APO, in the SAP Network Collaboration (SAP SNC), and in SAP NetWeaver Business Intelligence.

Features

Planning

SPP is implemented in the planning services of the Planning Service Manager (PSM).

Forecast

The forecasting service covers the whole life cycle of a product from phase-in planning for new products via various types of product interchangeability through to phase-out planning for products in discontinuation. You can determine the forecast on the basis of leading indicators such as your installations or the operating time of equipment, or on the basis of past requirements or a combination of the two forecast methods. If you determine the forecast on the basis of past requirements, the forecast service can use different forecast models for individually planning future requirements for products with different sales behavior. In leading-indicator-based forecasting it can be taken into account and use your knowledge about your installations. In both cases, the system approves a large proportion of the forecast results in an automated approval process and makes them available to the follow-on services. The forecast service presents only those forecast results that deviate heavily from the previous forecast results for you to check and approve manually.

Inventory Planning

The Inventory Planning Service determines the locations at which it would be sensible to increase or decrease stock. This is based on past demand. To keep your stockholding costs as low as possible, reduce purchase costs, and still maintain a high level of service for your customers, the inventory planning service plans the optimum stock and optimum order quantity for location products. According to the sales behavior of a product, the service uses either normal or Poisson distribution. The inventory planning service also groups products into ABC classes depending on their sales behavior and thereby identifies fast-moving and slow-moving items.

Distribution Requirements Planning (DRP)

Distribution requirements planning (DRP) organizes replenishment planning within a BOD. Based on predicted requirements, the stocks of the locations, and delivery schedules, DRP generates stock transport requisitions, scheduling agreement schedule lines, and purchase requisitions if you are procuring service parts, planned orders, and subcontracting purchase requisitions, if you are repairing service parts internally or at a subcontractor. If you use kits, DRP plans both the procurement or manufacture of the kits and the procurement of the dependent demands you require to manufacture the kits. During planning, DRP takes into account supplier shutdowns as well as product substitutions, substitutions of obsolete products, and discontinuation of products. In addition to these planning functions, DRP allows for efficient checking of the planning results and a multilevel approval process as required.

Deployment

Deployment controls the distribution of incoming goods within the BOD on the basis of current demand. It uses priority tiers, sequence rules, and fair share distribution to distribute the goods optimally.

Inventory Balancing

The inventory balancing service balances excess and shortage at the individual locations and thereby ensures that stock within a BOD is evenly distributed.

Surplus and Obsolescence Planning

Surplus and obsolescence planning uses certain criteria to evaluate current stocks according to whether they count as surplus or obsolete stock, and can therefore be disposed of.

Analytics and Monitoring

Analytics and monitoring in SPP includes the following functions:

Inbound Delivery Monitor

You can use the inbound delivery monitor to automatically monitor the processing times for the individual sub-steps of the delivery. The inbound delivery monitor takes into account both deliveries from your supplier to a location and stock transfers from one location within the BOD to another. The automatic monitoring functions of the inbound delivery monitor are part of SAP APO and the resulting reports are provided in SAP NetWeaver Business Intelligence.

Shortage Analysis

Shortage analysis provides you and your suppliers with a quick overview of critical situations such as shortages. The SPP Alert Monitor displays alerts that show unplanned situations. You and your supplier can view the relevant alerts and influence the planning if necessary. Shortage analysis is integrated in the Web user interface of SAP SNC.

Supplier Delivery Performance Rating

Supplier delivery performance rating (SDPR) evaluates the performance of your suppliers on the basis of various criteria such as time and quantity accuracy. You can provide your suppliers with direct access to these results. SDPR is integrated in both SAP SNC and SAP NetWeaver Business Intelligence.

Service Fill Monitor

You can use the service fill monitor to analyze your goods issue activities. It displays the service level you were able to offer your customer, and, as part of the service loss analysis, analyzes why sales orders could not be met on time or in full. The analysis functions of the service fill monitor are part of both SAP APO and SAP NetWeaver usage type Business Intelligence.