What is service parts planning?
SAP Service Parts planning is a module in SAP SCM where it provides functions specific to spare parts and transparency throughout the supply chain, right from the moment demand occurs through to the delivery of the product.
Service Parts requires special forecasting methods for sporadic demand. Demand Forecasting for service parts is very difficult to predict on. SPP provides various forecast models.
Planning for service parts takes place in distribution structures (abbreviation: BOD – bill of distribution), which contain all of our locations in as network. Locations can be, for example, distribution centers, contract packagers, or our customers and dealers. Alongside the current BOD, we can also work with future BODs. This means that we can define a specific time in the future when current BOD will be replaced by new BOD. The system takes this future BOD into account for planning.
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, we can decide for each product whether we want to perform period-based service parts planning based on the forecast or whether we would rather plan your service parts based on a reorder point. If we use period-based planning, SPP generates the forecast for a product either on the basis of past sales history or on the basis of leading indicators.