Supplier Collaboration Made Easy in the Aftermarket Industry

  • by Sanjiv Shahrawat, Director, Deloitte Consulting LLP
  • Sundar Chandrasekaran, Manager, Deloitte Consulting LLP
  • October 24, 2012
Understand how the Service Parts Planning Supply Network Collaboration (SNC) Product Detail user interface (UI) enables information sharing, improves decision making, promotes collaboration, and creates extended supply chain visibility in the aftermarket industry. Learn how to implement the SNC Product Detail UI for your organization and restrict the data that can be seen by your supply chain partners.
Key Concept
In the aftermarket (or spare parts) industry, product volumes are high and demand can vary from rapid to irregular and sporadic. This makes downstream processes, such as forecasting, stocking products, and procurement from suppliers within lead times, more complex and challenging. The Product Detail user interface (UI) for Service Parts Planning in SAP Supply Network Collaboration provides real-time data visibility to both internal supply chain analysts as well as external supplier partners. This Web-based tool can be configured to restrict some of your suppliers from viewing certain information, such as your current stock.

The aftermarket or spare parts industry yields high margins and can boost the corporate bottom line. On the flip side, it can also bring challenges. Service parts inventory in an industry such as automotive covers the gamut from slow movers to fast movers with demand ranging from sporadic to seasonal, and in high volumes. Often there is a lack of supply chain visibility, and the supply chain partners can/may make decisions in isolation. This information asymmetry may cause a negative domino effect in the aftermarket industry that typically has millions of stock keeping units. 

Information sharing in real time between supply chain partners can help alleviate these concerns. Supply Network Collaboration (SNC) is a collaborative Web tool for enhanced supply chain visibility, supplier interactions, and communication. SNC for Service Parts Planning (SPP) provides a part analysis tool, the Product Detail user interface (UI), for the aftermarket industry. This facilitates real-time collaboration between analysts in your organization and supplier partners by providing visibility into information, such as demand, forecast and planning results, in one place.

Using an illustrative case study of aftermarket parts for an automotive company, the authors first explain specific information about the Product Detail UI and how you can tailor it to your organization’s requirements. Your supply chain analysts and supplier partners can enhance productivity and collaborate by viewing information in one place. Other complementary tools, such as Shortage Monitor, are also available in SPP SNC for enhanced collaboration. We also show how you can restrict your supplier partners from viewing some of the critical information, such as your stock level.

Then we show SPP SNC deployment options and its architecture using the example of an SNC implementation, along with some lessons learned based on SPP SNC implementations.

Sanjiv Shahrawat

Sanjiv Shahrawat, director, Deloitte Consulting LLP, is a thought leader with proficiency in the aftermarket industry. He has led SAP Service Parts Management (SPP, SNC, EWM, CRM) implementations for automotive clients. He has also led aftermarket assessments, aftermarket parts M&A, and operational improvement programs at automotive OEMs globally.

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Sundar Chandrasekaran

Sundar Chandrasekaran, a manager at Deloitte Consulting LLP, is a process consultant in the aftermarket industry and has led global SAP supply chain SPP and SNC implementations. He has also managed supply chain integration, improvement, and sales & operations planning assessments. He holds an MBA from the Indian Institute of Management, Lucknow, and a bachelor’s degree in computer science engineering from REC India.

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