Skip to Content

Business Background

The parts department serves the walk-in customer and service operations for internal & external processes.  Can it generate profits even in this tough economic times?  Yes…I believe it can offer predictable margins with streamlined process paired with high service level.  To maintain service level commitments the inventory needs to be available in the right place and right time to serve the request.  This translates into the dealer “brand” loyalty, and that means more business in return.

Parts department is one of the key revenue generating areas in any dealer operation. Lets take a quick view on some of the feature & functions.

  • Parts Sales order process
  • Parts Backorder processing
  • Parts return process

 

Parts Sales Order process

To create a parts sales order, you can use the Order Processing cockpit, Cash Desk or directly using the Create Order transaction.

DBM Parts Order Header tab

The order screen is arranged easily in tabs: Header, Item, Parts and Fast Item entry. The DBM order engine(the brain) guides the user to perform next set of actions depending on the status of the order.

 

DBM Parts Order Item tab

You can use the Item tab, Parts tab or Item Fast Entry tab to enter the items in an order. Ofcourse all  have specific features to support processes.

Item tab: The search help(F4) on the parts is pretty neat, as it gives a quick view on the parts availability with simple green & red traffic lights.

During the parts entry step, the part is checked whether it belongs to a supersession chain(as defined in the ERP system).  If the part belongs to a supersession chain, the available-to-promise (ATP) check proposes the valid parts based on the date and ordered quantities (can be configured as a pop-up with selection).

The parts availability can be seen at the plant level, and now at storage location(new in DBM7.0) level too. Here you see (and also change), is the price, discounts and surcharges. For detailed pricing view, the pricing condition pop-up is always available at a click of the pricing icon Pricing btn .

 

DBM Parts order Procurement

Parts tab: Typically there are parts(e.g. large or high-valued) which the dealer would either source it from the Vendor or may stock in another location within the dealer network. Well you can trigger the request for procuring such parts seamlessly from the DBM order (Parts tab Procurement section).

 

DBM Parts order Fast entry

Item Fast Entry tab: This is a lean view to maintain the items on the order and lets the user quickly process the order.

 

Parts Backorder  Processing

A new UI now enables the parts clerk to reprioritize and redistribute parts quantities in an easy to use environment that includes mass processing options and other features. This new feature allows clear visibility on the DBM orders items (with parts) which were not fulfilled.  An un-fulfilled order implies that one or more parts item has either a partial stock availability or no stock availability.

The web-UI for the Backorder list is based on the POWL(Power Worklist) concept and requires a new user role Parts Backorder Processor.

DBM Backorder Processing POWL

  • Backorder: Perform availability check(ATP) on the selected line items directly from the list.
  • Redistribute: Distribute the confirmed quantities from one order line item to another order line item(s)
  • Goods Movement: Perform Goods Issue for the selected line items directly from the list.
  • Lock status: Check if the selected order(s) line items are locked.
  • Sort: Allows the list to be sorted(priortized) by certain criteria/weightage.
  • Refresh: Re-execute the query to update the list.

Apart from the above functions, the POWL list can be personlized. You can create a new query or change an existing query.

  • Personalization: Lets the user define a new layout for the list. A default layout is delivered with the application.
  • Show Quick Criteria Maintenance: Use the available filters to limit the list entries e.g. by customer, advisor, date range, etc. Further you can specify the “Fully confirmed” (order line items for parts with confirmed qty) and a “Sort Id” – criteria which displays the list priortized by certain criteria/weightage.

Parts Return Process

In DBM the return parts process is based on the original parts order. Simply use the copy order functionality to use the original parts order which can be used to generate a parts return order. The system can be configured to perform the necessary checks (surely you remember the SD copy control concept, if not time to brush up on those skills).

In summary, the Parts Backorder processing was a significant enhancement to the Parts process. Checkout Martin’s blog What’s new with SAP DBM 7.0 to read the highlights of SAP DBM7.0

To report this post you need to login first.

16 Comments

You must be Logged on to comment or reply to a post.

  1. Larry Stolle
    Terminolgy is not completely consistnet with all markets.  For example, plant level and storgage location are not generally understood in Norht Aamerica.

    Second..how do you assure that you accurately record what is typically referred to as “lost sales”?  That is parts that are required or requested but not available in the parts inventory of the servicing location?  This is crucial for backorder fulfillment.

    (0) 
    1. Moncombu Raju Post author
      Thanks for your comments Larry. I agree that the use of terminology is bit SAP focused.
      Taking your example, in the NA market, a plant (SAP) would translate to a dealership location and a storage location(SAP) could translate to a section or even a bin in a dealer’s parts/stocking room. A bigger dealer group with a DC/warehouse would definintely see it in a different view.

      A very good point on “lost sales”… technically it can be recorded with the action “Item Reject”. This action can be for the entire Order or can be specific for item (system asks for a reason for rejection).
      In the DBM order at item level, the user can use the text fields to capture additional information as well. A vision does exist to provide a holistic view on this topic.

      (0) 
      1. Community User
        Reg: Lost Sales: Is it possible to do Partial Item Rejection. Scenario is “Requirement is 10 EA. Delivered is 6 EA. 4 EA not delivered because of stock not available.  So Lost sale of 4 EA has to be recorded”
        Regards,
        Sundar
        (0) 
  2. Thomas Wright
    Hi Raju..

    Good stuff… one potential addition that would have value.. in North America, it’s not uncommon for a single group to have stores representing differing franchises within a brand (ie. a Cadillac store, Chevy store… etc) in close proximity.  In this case, it’s useful to check parts availability at other group locations if not in stock at the the site of inquiry.  I’ve personally experienced the benefit of this a while back seeking a wiper assembly that was common to GMC and Chevy trucks… this kind of visibilty is a real value driver in DBM… can you highlight this in your scenario?

    Tom

    (0) 
  3. Sudhakar Chivukula
    We have a similar functionality developed in Volkswagen of America. However, in this case dealer places the order on VW Parts Distribution Center.
    Following are the suggestions:
    1. Include GATP. Useful when the Dealer has multiple locations of the same brand or multiple brands with common parts.
    2. Consider single and multiple supersessions
    3. Consider scenario when order quantity is not completely fulfilled from one location or/and single revision level
    4. Backorder processing in the combination of GATP and supersessions
    (0) 
    1. Moncombu Raju Post author
      Sudhakar: Thanks for sharing.
      In SAP DBM solution, here we are talkin about the B2C i.e. real-end customer who wants to buy the parts, accessories, etc from the dealership. The system can be configured to view the availability across the plants (within 10miles, 50miles, 100miles, etc.)within the dealer network. Further the system can be configured to extract the availability information from an external system as well.
      (0) 
  4. Gonzalo Martin Hernandez
    The functionality of the parts sales, is being expanded, from version to version in DBM. The new DBM version has set the process of spare parts imports (are those spare parts that somehow must be billed, for example an insurance company, but still do not have material in stock)
    Regards
    (0) 
      1. Gonzalo Martin Hernandez
        Hi Raju
        I’m trying to ask you if the functionality of subsequent cost is available in new DBM version of spare parts sales.
        In some cases you need to invoice first and later (in the time) create a good movement.
        At item level, is this possible in new version?
        Best Regards

        Gonzalo

        (0) 
        1. Moncombu Raju Post author
          The DBM order engine can be configured to map the specific business process mentioned. I suggest that you should review the order type 300X(Vehicle Order), where the invoicing for the vehicle is done before the vehicle movement.
          Thanks for the question…so is the above parts process specific to Truck business or …?
          (0) 
  5. Venkata Seshagiri Rao Mullapudi
    Hi Raju,

    Greetings!

    Is there a best practice already built/delivered in DBM to model the process of assembly (for e.g. clutch kits)purchase as a single unit and then broken down into components for sale separately (with their own numbers)?

    For some markets, inventory adjustments might not meet legal requirements.

    If there is no DBM best practice, a valid suggestion for customers might be to use goods movements with reference to Internal Orders

    Cheers
    Venkata

    (0) 
    1. Moncombu Raju Post author
      Hi Venkata,
      Well this seems to be an interesting process; i know in the sales side process need to assemble the kits from components.

      Can you share in which markets this is process is common?
      Also, what are the process steps here? e.g. PO for kit material; GR for kit; Inventory at Kit-level; ?Internal Order process to disassemble?? GI of kit & GR of components?? (or something similar)

      In DBM, the purchase process of parts is purely based on the ERP core processes. Probably you remember that on the flip-side, when selling the parts in DBM, the concept of “Packages” exists; which is selling assembly or kits. “Package” of course is a master data in DBM.

      Lets discuss and thanks for sharing, Raju

      (0) 
  6. kaus desh

    HI Raju,

    Indeed very nice blog on SAP DBM 7- spare parts sales side.My question is related to Inventory management , this also comes in to picture during the cash or service sales of the parts for car.

    I wanted to ask you the scenario in most of the automobile dealership they have many parts in one warehouse  which we can map at storage location level.material mapped with regular material master of MM.

    Consider the situation that i have spark plug kept in 2 different locations( bins) in to my warehouse. I do not have warehouse management module activated is DBM take care to show the multiple part location ( multiple bin number ) in picking slip so as my counter person can locate the part correctly and easily ??

    Further – For parts sales DBM is the solution from SAP but for Purchase planning what is the solution  ? automotive portal the one u said is it right solution for Spare parts purchase and planning  and monitoring?

    Kaustubh

    (0) 
    1. Moncombu Raju Post author

      Hi Kaustubh,

      The field “storage bin” on the material master is only significant if you do not use SAP WM; as it appears on goods receipt/issue slips. To solve the issue of identifying the part at multiple bin level would require a WM system in place.

      In DBM part sales process, if the part is not available (e.g. high value part which is not stocked,etc. )

      a. Create a Purchase Requisition from the DBM parts order(parts tab screen)

           Follow the standard MM process to convert/combine the Purchase requisitions to Purchase Orders and GR the parts into inventory when it arrives.

      b. Similarly, you can create a STO Purchase req for procuring the parts from another dealer location(plant).

      Bottomline the parts procurement can be handled in std. MM and triggered from the DBM parts sales process.

      Hope the above answers help. BTW: Which is the customer/project where you are facing these questions?

      Thanks for your interest and questions.

      Raju

      (0) 
      1. kaus desh

        Thanks Raju sir,

        Yes answers are effective , this are mostly all Indian automobile dealers requirement in general , i worked in dealership so i asked my own doubt.

        Is clear that PARTS SALES we can use DBM , for PARTS Procurement we need to have MM in place and for inventory we need WM. But how do we get the planed materials or we can say fast moving items required for month ? Is the planning run in MM at plant level only solution ?

        How do we handle the replacement parts in DBM – Scenario is customer returned the material , which we need not to take in to stock but we do need to send it to OEM , against which OEM will send us a new part , how do we take that in to accounting ?

        in DBM in help document there is a parts warranty mentioned but there is no check or validation for parts i mean how system would able to knw that is the part is under warranty or not ?

        In Auto cars Tires , Lubs, Oil , Batteries are sold by dealers only( OEM do not support)  if we define them as a material in MM how do we identify their Shelf life period.

        Regards,

        Kaustubh

        (0) 

Leave a Reply