IBM > Case Studies > High-Volume Service Parts Management Success with IBM and SAP

High-Volume Service Parts Management Success with IBM and SAP

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Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
  • Automotive
  • Transportation
Applicable Functions
  • Procurement
  • Warehouse & Inventory Management
Use Cases
  • Last Mile Delivery
  • Service Parts Management
Services
  • System Integration
  • Testing & Certification
The Challenge
The case study revolves around the challenge of managing high-volume Service Parts Management (SPM) requirements in a competitive environment that demands greater efficiencies. Companies with complex SPM requirements are under pressure to integrate their manufacturing, inventory, and logistics systems more effectively to achieve significant cost savings. The challenge is further compounded by the need for a solution that can adapt to a dynamic, constantly changing environment, provide worldwide accessibility and visibility of information, and support operations ranging from small to very large service parts. The case study also highlights a specific request from a major German automotive manufacturer with a critical load requirement for order fulfillment.
About The Customer
The customer in this case study is a major German automotive manufacturer with a critical load requirement for order fulfillment. The manufacturer is one of the world's largest automotive customers with complex Service Parts Management requirements. The customer operates in a competitive environment that demands greater efficiencies and integration of manufacturing, inventory, and logistics systems. The customer also requires a solution that can adapt to a dynamic, constantly changing environment, provide worldwide accessibility and visibility of information, and support operations ranging from small to very large service parts.
The Solution
IBM and SAP collaborated to create a solution that could handle the high-volume SPM requirements of the world's largest automotive customers. The solution was built on IBM DB2, IBM System p servers, and IBM System Storage infrastructure, and used the SAP solution for Service Parts Management. The solution was tested for performance and scalability using production data from existing automotive customers. The tests were designed to ensure the quality, performance, and stability of the solution under high load conditions, and demonstrate sufficient scalability for a high-volume business. The solution includes several SAP applications, including SAP SCM – Service Parts Planning, SAP CRM – Service Parts Fulfillment, SAP SCM – Service Parts Warehousing with SAP Extended Warehouse Management, SAP ERP – Service Parts Management Execution, and SAP SPT – Service Parts Transportation.
Operational Impact
  • The solution developed by IBM and SAP proved to be highly effective in managing high-volume service parts operations in complex, multi-tier networks. The performance and scalability tests demonstrated the solution's ability to handle more than 10,000 order lines per hour, even in the most complex scenarios. The solution was also able to address a special request from a major German automotive manufacturer with a critical load requirement for order fulfillment. The successful conclusion of the tests assured the quality of the product and its integration with the supporting infrastructure. The solution also demonstrated its ability to support the strategic goals of an automotive manufacturer, including revenue growth through increased customer retention and brand loyalty, competitive differentiation through greater organizational agility and adaptability, superior visibility into parts operations across the entire service parts supply chain, and better collaboration with suppliers, partners, customers, and employees.
Quantitative Benefit
  • The solution can handle more than 10,000 order lines per hour in the most complex scenarios.
  • The solution can process a weekly parts planning volume of 2 million part locations within 24 hours.
  • The solution can create 150,000 sales order lines in an hour.

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