Success Story.

Boosting profitability in the supply chain with SAP Service Parts Management

Headquartered in the United States, the client is a world leader in advanced agriculture machine manufacturing.

The challenge

The client was facing a lack of visibility into its service parts among a vast network of warehouses and dealers, making it difficult to expand its existing IT systems.

The client also faced challenges when adding new warehouses and distribution routes for its fast-paced business expansions. These limitations caused millions of dollars in lost sales opportunities, and a significant drop in valuable customer service levels. Furthermore, a lack of visibility into inventory caused an enormous number of parts being piled up at single warehouse locations, while other locations had to rush order the same parts from suppliers at a significantly higher cost.

The solution

YASH consultants understood the client’s business needs and recommended the implementation of SAP’s Service Parts Management (SPM) software, along with various integration points to the homegrown solutions and dealer systems already in place within the organization. The solution included Service Parts oriented functionalities including CRM, SPP, EWM and gATP, which were integrated together to carry out an end-to-end supply chain operation seamlessly. YASH’s implementation strategy utilized the BOTS model to build the system, operate the business, equip business users with appropriate training, and to provide IT support.

Business impact

The SAP SPM implementation helped the client improve its supply and demand planning, reduce production costs, and ensure efficient use of the company’s global production capacity. The team was also able to reduce the total finished goods inventory in the service parts unit, which improved the inventory management process.

Hawk-eyed Service Parts inventory visibility

across all channels

Tightly coupled parts adoption

through better integration with engineering processes

Efficient warehouse operations

with the flexibility to meet changing needs

Enhanced tools for parts support

for enhanced customer service

Reduced transportation costs

due to the full utilization of container capacity

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