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SAP Solution Brief

SAP Service and Asset Management Service Parts Management

Make an Immediate Impact on
Your Bottom Line

As companies consider
grow­ing their business
through after-sales service,
many look to SAP. A leader
in supply chain and ware­
house management solu­tions When it comes to service parts, cus- through the SAP NetWeaver® technology
tomers expect better performance than platform. The service parts management
worldwide, SAP leverages ever before. They don’t want to wait for functionalities of SAP Service and Asset
this industry experience to a part that must be ordered; they expect Management are integrated by design with
you to have it right here, right now. SAP® SAP NetWeaver. And SAP NetWeaver
offer a powerful, integrated software helps you meet that demand allows integration with legacy systems,
solution for the service while simultaneously reducing your third-party specialty applications, and
inventory costs for service parts (often partner systems in order to give every-
parts business. called “spare parts”). The SAP Service one in the service network common
and Asset Management solution lets you accurate visibility into all service and
integrate all parts planning, procurement, service parts activities.
order administration, warehouse manage-
ment, transportation, reverse logistics, Reduce Inventory, Boost Service
and analytic activities into one compre- Levels, Integrate Processes
hensive service parts management
system. With the software, your system The service parts management func-
can be made accessible to everyone tionalities are complete and adaptive,
in your extended service parts supply integrating your service supply chain to
chain – employees, partners, suppliers, coordinate all parts activities to meet
and customers alike. your customers’ demands. Supporting
end­-to-end coverage, the software is a
SAP Service and Asset Management powerful competitive tool that can help
helps you take advantage of the tremen- you increase and maintain market share
dous revenue potential represented by while reducing inventory and increasing
the aftermarket service and service service levels. What’s more, SAP software
parts business. The functionality also for service parts management is highly
enables you to integrate your parts scalable and can support high-volume
business processes across multiple parts planning, shipping, receiving, and
people, departments, stocking locations, order management activities.
warehouses, and business partners.
SAP Service and Asset Management
Create a Strategic Line of Business supports all aspects of the service
parts business. Integrated planning
Analysts agree that service can and and forecasting software helps you to
should be a strategic line of business. reliably predict service parts demand
Service creates an attractive, reliable and establish the right stock levels.
revenue stream that is valued by the Service parts procurement functions
equity markets for its positive impact support purchase order management
on corporate earnings. However, effec- as well as real-time collaboration with
tively achieving that goal requires process suppliers. Parts order fulfillment func­
and systems integration across multiple tions support complete order manage­
departments and diverse organizations. ment and tracking, global available-
SAP software enables that integration to-promise visibility, and the ability to
create targeted market­ing campaigns for • Repair-versus-buy decision support SAP Service and
parts sales. Warehouse manage­ment • Automatic order creation based on
software offers advanced functions for planning results
Asset Management
highly efficient distribution and storage • Purchase order management and lets you integrate parts
practices. Transportation management tracking
features help you to effectively manage • Collaboration with both suppliers
planning, procurement,
all parts transportation activities and and customers order administration,
minimize transportation costs. Reverse
logistics functionalities allow you to Increase Efficiency of Parts Distribution
warehouse manage-
effectively manage both finished units Centers ment, transportation,
and parts throughout the reverse supply Software for extended warehouse
chain. Finally, inherent collabo­ration management works to improve product
reverse logistics, and
and analytics software helps you to flows and processes in parts distribu­ analytics into a com-
contin­ually improve your service parts tion centers. Warehouse management
man­agement operations and consis­ functionalities help provide a foundation
prehensive service
tently support your service staff, part­ for collaborative processes between parts management
ners, and customers. The software multiple warehouses, suppliers, custom-
helps you see that the right part is in ers, logistics service providers, and
the right place at the right time, in the other business partners, including
right quantity and in the right package, support for:
every time. • Inbound and outbound processing • Back-order processing and
• Efficient distribution and storage expediting
Improve Service Parts Planning and • Automatic pick, pack, and ship • Substitution and supersession logic
Procurement • Cross-docking and yard management • Global available to promise
The solution includes the latest fore- • Resource optimization and labor • Preferential allocation logic
casting and inventory planning models, management • Credit checks, invoicing, and accounts
which can support dramatic improve- • Radio-frequency identification and receivable
ments in service levels and reductions mobile devices • Claims and returns handling
in inventory costs. The functionality is • Physical inventory counts and
designed for the unique and demanding reconciliations Perform Reverse Logistics
needs of service parts supply chains, Managing the reverse supply chain
including: Manage and Fulfill Orders has become increasingly important
• Demand forecasting, including planning The ultimate goal of a parts organiza- to parts organizations as they endure
for sporadic parts demand and for tion is to fill service parts orders for the continuous pressure to reduce
slow-moving and fast-moving parts customers, dealers, and partners. costs, manage inventory, and reduce
• Demand surge smoothing SAP Service and Asset Management waste. The software helps you manage
• Parts life-cycle planning and super- supports comprehensive order pro- the entire reverse supply chain from
session logic cessing and order fulfillment activities, the point of customer sale to the final
• Multiple-echelon inventory planning including the following: disposition of returned goods, including
• Authorized stocking lists • Sales contracts and order
• Service-level modeling mana­ge­ment
support for: Real-time reporting and analytics help on proven mathematical planning models
• Warranty management you spot both negative and positive with the practical application of scientific
• Claims processing trends, so you can take corrective action algorithms in a real-world environment.
• Return order management or exploit an emerging opportunity.
• Repair planning and processing Best of all, the service parts management
• Refurbishment and remanufacturing Specifically, these tools support real-time software in SAP Service and Asset
• Recycling support and disposal reporting and monitoring of exceptions, Management supports best practices.
tracking service-level performance, transportation As a result, you’re in a position to reduce
costs and operations, supplier perfor- your service spare parts inventory costs,
Manage Transportation mance, frequent failure and quality issues, increase your revenues from parts sales,
Inbound and outbound shipments are and more. You can optimize inventory and boost your first-time and on-time
critical elements in your supply chain, and service-level performance, providing parts fill rates.
and effective transportation manage- increased fill rates, greater parts sales
ment can help you reduce costs as well revenue, reduced inventory costs, ideal Find Out More
as your carbon footprint. The software inventory levels, and optimized trans- Are you getting the most from your
supports: portation costs. service parts network? Are you truly
• Shipment planning and processing managing your service parts supply
• Transportation mode and route Expect More – and Get It – from chain as an integrated network? To learn
optimization SAP Software more about how SAP Service and
• Carrier selection Asset Management can help your
• Freight costing and invoicing You expect a lot from software designed company improve service efficiency
• Global shipping with import and to help you plan and manage your service and productivity and grow service-related
export documentation parts and warehouse operations – and revenues, please visit our Web site at
• Legal and hazardous materials you get it with SAP solutions. SAP www.sap.com/solutions/sam.
documentation Service and Asset Management helps
you connect all your service parts pro-
Collaborate, Analyze, and Optimize cesses into one fully integrated, easy- Alliance Leverages Knowledge
SAP Service and Asset Management to-use system. The functionalities sup- and Processes
supports communication and collab­ port a low total cost of ownership and
oration across the entire service parts the high return on your IT investment. In 2002 Caterpillar Logistics Services,
supply network, with role-based Web Inc. (a wholly owned subsidiary of
portals and electronic document SAP’s extensive experience in supply Caterpillar Inc.), Ford Motor Company,
exchange for all constituents in your chain management, combined with input and SAP joined forces to develop
service parts operations. The solution’s from leading companies in service and SAP’s vision for managing high-volume
robust built-in analytics enable you to service parts management, has yielded service parts operations in complex
respond and quickly adapt to your parts planning functionalities that help multitier networks. Along with
dynamic, constantly changing environ- you to optimize both your service parts Caterpillar and Ford, two of the
ment. Automatic alerts and escalations availability and your service parts invest­ world’s leading manufacturing and
allow you to be proactive when commit- ments. These functionalities are based service companies, SAP committed
ments or critical key performance indi- capital, intellectual property, and
cators are in danger of being missed. proven track records to add specific
functionalities for service parts man-
agement and planning to its already
comprehensive supply chain and
customer relationship management
Quick facts www.sap.com /contactsap

The SAP® Service and Asset Management solution for service parts management is
integrated software to help your company streamline and enhance the extended service
parts network.

Business Challenges
• Lack of inventory visibility across the supply chain, which leads to lost opportunities
and higher costs, and inability to consolidate inventory and determine parts availability
• Escalating costs and inefficient operations that thwart efforts to balance capacity and
maximize throughput and prevent efficient management of high order volumes
• No end-to-end integration of core service parts processes, which prevents real-time
collaboration across the supply chain
• Poor customer service including lack of on-time order fulfillment and inflexibility to meet
changing customer needs

Key Features
• Service parts planning and procurement – Use the latest parts-demand forecasting,
inventory planning, and distribution models integrated with external procurement
management and supplier collaboration
• Service parts warehousing – Efficiently handle processes for receiving, storing, and
delivering service parts
• Service parts fulfillment – Proficiently market and sell highly profitable service parts and
use global availability-to-promise software to increase visibility into parts fulfillment
• Service parts transportation – Manage transportation planning and processing, as well
as route and carrier determination
• Reverse logistics – Implement an integrated end-to-end solution for managing reverse
logistics, including returns, repairs, refurbishments, resale/remarketing, and disposal
of parts

Business Benefits
• Increase revenue through additional service-related revenues, greater market share,
and more inventory turns 50 074 406 (09/03)
©2009 by SAP AG.
• Lower operating costs by reducing “missing-parts” calls, inventory carrying costs, and All rights reserved. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge,
emergency transportation, and by increasing warehouse efficiency ByDesign, SAP Business ByDesign, and other SAP products and
services mentioned herein as well as their respective logos are
• Improve working capital through decreased inventory investment, lower obsolescence trademarks or registered trademarks of SAP AG in Germany and
and loss, and reduced “in-transit” inventory value. other countries.

• Deliver superior and profitable customer service via quick response to customer Business Objects and the Business Objects logo, BusinessObjects,
Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and
requirements and on-time delivery other Business Objects products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks
For More Information of Business Objects S.A. in the United States and in other countries.
Business Objects is an SAP company.
To learn more, visit www.sap.com/solutions/sam. Please contact your local SAP office All other product and service names mentioned are the trademarks
to find out more about the different deployment options available for the service parts of their respective companies. Data contained in this document
serves informational purposes only. National product specifications
management solution. may vary.

These materials are subject to change without notice. These materials

are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
­respect to the materials. The only warranties for SAP Group products
and services are those that are set forth in the express warranty
­statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.