SAP Materials Management: As many spare parts as necessary, as few as possible

Procurement is a critical step in the value creation process. That’s why every large organization has a dedicated department to meet the needs of its various specialist units for products and services. The key challenge: striking the right balance between cost, quality, and availability – called SAP Materials Management.

Spare parts management – the procurement of components for maintaining technical assets – follows its own set of rules. Unlike general procurement, the demand for these parts is typically predictable only within the scope of planned maintenance activities. 

Companies can adopt tailored procurement strategies for different types of spare parts: 

• For some components, it makes sense to order individual items on short notice to avoid tying up capital unnecessarily. 
• In other cases, purchasing in larger quantities is more cost-effective due to volume discounts. 

Despite technological advancements like condition monitoring and predictive maintenance, unplanned failures can still occur. Businesses must therefore remain prepared for unexpected breakdowns. Spare parts that are critical to operations should always be kept in stock. After all, if repairs are delayed due to missing parts, the resulting downtime can have serious consequences. 

Spare parts tie up capital

Faced with these challenges, companies often choose to stock sufficient quantities of all critical spare parts. For certain items, this is a sensible strategy – for instance, inexpensive rubber seals that require minimal storage space. However, many spare parts are neither cheap nor compact. On the contrary, they can be highly cost-intensive, take up significant space – or both. And unlike components regularly used in production, there’s often no guarantee these spare parts will ever be needed. 

Consider this example: A company invests heavily in a specialized motor, keeping it in storage as a spare for five years. In the end, the motor is sold at a fraction of its original value because the associated machine has been decommissioned in the meantime. 

Complicating matters further, some spare parts have a limited shelf life. Rubber seals, for example, may become brittle over time. In such cases, parts must be inspected or even discarded. All of this ties up capital and generates unnecessary costs. Procurement time is another factor: Not all spare parts are readily available, and some may need to be custom-manufactured, causing additional delays. 

Spare parts management requires close integration of procurement and maintenance

Spare parts management is a complex task that involves balancing multiple factors. For it to be effective, close coordination between procurement and maintenance is essential. This integration ensures that procurement teams have clear visibility into maintenance requirements. At least for planned maintenance activities, it’s possible to know in advance which spare parts will be needed and when. 

At the same time, maintenance teams benefit from real-time information about spare parts availability – whether items are in stock or when deliveries can be expected. This level of transparency can be achieved using SAP Materials Management (SAP MM), a key module within SAP ERP and SAP S/4HANA.

What Is SAP Materials Management?

SAP Materials Management (SAP MM) encompasses all core processes related to materials planning, procurement, inventory management, and warehousing. With this solution, companies can manage all products and services required throughout the entire value chain – from machines and systems to spare parts – with full transparency and control. 

When combined with SAP Plant Maintenance (SAP PM), SAP MM supports use cases tailored specifically to the needs of maintenance operations and spare parts procurement. 

Standard features of SAP Materials Management

• Tools for demand-driven or consumption-based planning, purchasing, and inventory control of spare parts, including: 
  • automated calculation and forecasting of lot sizes and safety stocks 
  • integrated supplier management and service processing 
• Tools for comprehensive supplier and service provider management 
• Mobile support via applications such as SAP Fiori 

Representation of spare parts as material masters – with individual settings by spare part type

• Spare parts: These are typically critical or high-value components kept in stock to enable immediate replacement in case of failure. In some industries, legal requirements mandate minimum stock levels. Depending on wear and condition, many of these parts can be reconditioned and reused. 
• Consumable parts: These parts are fully used up during operation and cannot be repaired or reconditioned. They are ordered and consumed as needed. 
• Small parts and operating equipment: These include standardized, low-cost items that are generally usable across multiple applications.  

Additional core functions

• Integration of supplier and procurement master data (e.g., framework agreements, info records) 
• Documentation of maintenance-specific structures, such as related or mobile storage locations 
• Association of spare parts with machines and systems for precise asset-level identification 
• Visualization of value flows between maintenance and materials management 
• Capabilities for clear component identification and traceability via serialization or batch tracking, including usage history 
• Maintenance-related availability insights, factoring in planned goods receipts and issues 
• Scheduling and procurement support based on requirements from maintenance orders 
• Tools for managing and tracking refurbishment workflows 

A useful addition: The parts list generator by valantic

valantic has developed the parts list generator as a powerful extension to SAP MM and SAP PM, tackling a common challenge faced by many companies: identifying the correct spare parts for specific machines and systems. This task is often difficult, as manufacturers seldom provide maintenance-ready documentation or comprehensive parts lists. 

The parts list generator from valantic offers an effective solution by gradually building tailored parts lists for each asset. These lists are based on material postings made during maintenance activities, ensuring relevance and accuracy over time. 

What benefits does SAP Materials Management offer?

By integrating SAP Materials Management (MM) with SAP Plant Maintenance (PM), companies gain significantly greater transparency in spare parts management. This supports well-informed and data-driven procurement decisions. 

The impact: Only those spare parts that are truly needed are purchased – no more, no less. This ensures that machines and systems can be brought back online quickly in the event of a breakdown, while also achieving sustainable cost reductions.