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

Summary
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
operations
• 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
• Lower operating costs by reducing “missing-parts” calls, inventory carrying costs, and
emergency transportation, and by increasing warehouse efficiency
• Improve working capital through decreased inventory investment, lower obsolescence
and loss, and reduced “in-transit” inventory value.
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• Deliver superior and profitable customer service via quick response to customer
requirements and on-time delivery
For More Information
To learn more, visit www.sap.com/solutions/sam. Please contact your local SAP office
to find out more about the different deployment options available for the service parts
management solution.
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