Hot Topics

Of the functionality in SPP, these areas seem to be some of the most requested:

• DRP
• Deployment
• Inventory Balancing
• Buy and Repair

We address each of these areas of SPP in this blog. For those looking for the latests improvements in SPP 7.0, they are listed here:

http://www.scmfocus.com/servicepartsplanning/2009/04/02/how-is-sap-spp-developing-as-of-70/

DRP

Determines the new demands of all locations in the BOD, rounds them and aggregates them along the BOD to the entry location.

http://www.scmfocus.com/sapplanning/2009/04/23/spp-drp-stability-rules-and-the-frozen-horizon/

http://www.scmfocus.com/sapplanning/2009/04/19/spp-drp-special-cases-and-consolidation/

http://www.scmfocus.com/sapplanning/2009/04/23/sppdrp-approval/

DRP is controlled in the Make General Settings for DRP configuration.

Deployment

Deployment is not unique to SPP. SNP also has deployment, which is described here.

http://www.scmfocus.com/sapplanning/2008/10/11/snp-deployment-and-fair-share/

Deployment is the normal or “standard” way of running SPP. SPP has the same concepts of distribution such as Fair Share and Push methods.

• Fair Share use used when there is a shortage of material (can be allocated a number of different ways – including based upon target stock level and quota arrangements)
• Push is used when there is an overage of material (push deployment is very similar to Supply Distribution in SNP) (also push can be allocated based upon demand in the system, quota arrangement, and safety stock)

Deployment uses the DRP matrix and decouples DRP planning from deployment planning. http://www.scmfocus.com/sapplanning/2009/04/23/spp-deployment-and-fair-share/

Deployment is triggered by a goods receipt at a parent location (push deployment) or by current demand at the child location (pull deployment)

Deployment is controlled by the SPP Deployment tab on the product location master. Feilds include:

1. Deployment indicator
2. Review time
3. Time Btw. Depl Runs

Deployment can be simulated as well.

Inventory Balancing

Inventory balancing repositions inventory to locations where it has a higherlikelihoodof consumption. This capability is also necessary for finished goods, but SNP has no functionality designedspecificallyfor this. However, it is absolutely critical for service parts because of their low volume. At one client we evaluated the use of SPP Inventory Balancing for finished goods simply because it is only functionality in SCM specifically designed for this task.

Stock transfers are the result.

http://www.scmfocus.com/sapplanning/2009/04/23/inventory-balancing-in-spp/

The formula looks like this:

If inventory savings + warehouse space savings + service benefit – the move cost is greater than a threshold, then a movement is scheduled.

Deployment can be run using the heuristic or the optimizer. However, the output of deployment creates stock transfers.

Buy and Repair

This is something that MCA SPO does very well – making decisions regarding repairing vs. procuring new items.

http://www.scmfocus.com/sapplanning/2009/04/22/spp-operating-parameters-and-repair-vs-buy/