What is savings per prevented loss in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: savings per prevented loss

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Costs saved as the result of a stock transfer during inventory balancing through which a potential loss can be prevented.

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• Key Concepts: 
  Savings per prevented loss (SPPL) is a metric used in SAP's Service Parts Planning (SCM-APO-SPP) component to measure the cost savings achieved by avoiding a potential loss. SPPL is calculated by subtracting the cost of the preventive action from the estimated cost of the potential loss. 
  
  How to use it: 
  SPPL can be used to measure the effectiveness of preventive actions taken to avoid potential losses. It can also be used to compare different preventive actions and determine which one is more cost-effective. 
  
  Tips & Tricks: 
  When calculating SPPL, it is important to consider all potential costs associated with the potential loss, including direct costs such as lost revenue and indirect costs such as customer dissatisfaction. 
  
  Related Information: 
  SPPL is closely related to other metrics such as return on investment (ROI) and total cost of ownership (TCO). These metrics can be used in conjunction with SPPL to measure the overall effectiveness of preventive actions.