Standard Operating Procedure (SOP) Manual

Processing of SPA Application - APAC

Version – APAC/Pricing/002

Release date-05 May 2019

Table of contents

1. Purpose…………………………………………………………………………………….2

2. Definition……………………………………………………………………………………2

3. Scope……………………………………………………………………………………….2

4. Related document………………………………………………………………………....2

5. Guidelines to complete SPA………...……………………………………………………2

6. SPA value requirements…………………………………………………………………..3

7. SPA process flow…………………………………………………………………………..3

8. Turnaround time……………………………………………………………………………4

9. Re-validation of SPA……………………………………………………………………….4

10. Minimum order quantity…………….………………………………………………………5

11. Contact list for Pricing Leaders…...……………………………………………………….5

Page 1 of 5
1. Purpose - The purpose of this SOP is to provide guidelines to Sales/Channel team for SPA
application to pricing team.

2. Definition - “SPA” refers to Special Price Application.

3. Scope - This process is applicable across APAC for IIT, INCA, ICOS, ECS & BAV, except China
IIT & ICOS.

4. Related Document- SPA form

5. Guidelines to complete SPA:

i) It is mandatory to complete all required information in header and line item(s) data.
Incomplete forms are not valid for SPA processing.

ii) One SPA should be applied for one project only. SPA that contains multiple projects is
not valid.

iii) One SPA should be in one currency only. SPA in multiple currencies is not valid.

iv) If there are multiple orders for one SPA, expected order booking dates need to be
provided in SPA form. In case of any changes in booking schedule, SPA form is required
to be re-validated.

v) Duplicated stock codes are not allowed in SPA form.

vi) For any pricing appeal, please provide latest approved SPA code.

vii) Approved SPA code is required to be indicated in purchase orders.

viii) For SPA for INCA/ECS/BAV, full stock code needs to be provided. Pricing specialist needs
to communicate with sales if there’s missing full stock code.
Page 2 of 5
 ix) For SPA for INCA/ECS/BAV, quantity must be able to be converted in reel (for cables) or in
pack (for connectors). Pricing specialist needs to communicate with sales if requested
quantity can’t be converted.

6. SPA Value requirement – Below is the minimum value (MOV) for applying SPA. MOV is not
applicable to existing SPA approved project’s top-up. SPA applied lower than MOV will be
considered as low priority SPA and may get delayed by 8 Hrs.

LOB Minimum SPA Value

IIT/GCom EUR 5000
ECS/BAV/INCA USD 5000
ICOS USD 1000

7. SPA Process Flow

SPA Process Flow

Complete SPA
Receive and
form and
send PO to OF
SPA Applicant

submit to Sales Submit quote to

Director Customer / along with
/Channel Channel approved SPA
for order
Leader for Partner
booking
Approval

Review and
Director /

Approve SPA TAT‐ 15

Sales Channel
Director

Working
hours
Pricing Specialist

Send approved
SPA to
SPA Process
applicant

Step 1- Applicant to complete SPA form with all the required information on header and line item
level.

Page 3 of 5
 Step 2- Applicant to submit completed form along with pricing discussion email chain with
Customer/Partner to Sales Director/Channel Leader for approval with a copy to pricing team.

Step 3- Pricing Specialist to process SPA within given TAT (Turnaround Time) after approval
from Sales Director/Channel Leader.

Step-4- Pricing Specialist to release approved SPA in PDF form to applicant, Sales Director, Sr
Sales Controlling Director, Pricing Manager/Sales Controller & OF team.

8. Turnaround time: TAT for processing SPA is 15 working hrs except for some unavoidable
reasons, e.g – cost unavailability, technical specs change(s), high volume of SPA etc.
If there is any delay in processing SPA due to above, Pricing Specialist will notify respective
applicant within 2 hours of receiving completed SPA.

Below table shows some of the delay reasons along with expected response time.

Reason of delay Response time

1) Cost unavailability
1) Until Pricing team gets cost information
2) Inputs from Product Management for new part
2) Until Pricing team gets input from Product
number()
Management team
3) High volume SPA (more than 15 SPA/day or SPA
3) Expected delay by 24 Hours
with more than 15 line items)
4) Pricing Manager - 2 Hrs, Product Management -4
4) Approval (Pricing Manager, Product Management,
Hrs, Sales Controlling Director-2 Hrs
Sales Controlling Director)

9. Re-validation of SPA-

SPA needs to be re-validated if there are changes from latest approved SPA.

SPA revalidation will be done as per below matrix. SPA revalidation request by email is
sufficient except a) addition of Part Number(s), b) pricing appeal and 3) Request for validity
extension where SPA is already consumed (i.e. order is booked).

SPA Re-validation Matrix

Revalidation scenario SPA Applicant Approver

Increment Request by email Pricing Manager

Qty Change
Deduction Request by email Sales Controlling Director
Addition Revised SPA Normal SPA process
BOM Change
Removal Request by email Sales Controlling Director
SPA consumed (if SPA
expired within 6 Request by email Pricing Manager
Validity extension months)
SPA not consumed Request by email Pricing Manager
Increment Request by email Pricing Manager
LME
Deduction Request by email Sales Controlling Director
Inco terms change Request by email Pricing Manager
Colour change Request by email Pricing Manager
Page 4 of 5
 10. Minimum order quantity (MOQ)

SPA having stock codes below MOQ will be processed as per below process

MOQ Process Flow

SPA received with

PN(s) below MOQ
P
r
o
Suggest Sales to Qty
Yes
increase qty increased c
NO
e
s
Stock Check
Stock
Yes s
Available

NO
S
Sales to apply MOQ
P
waiver to VP Approved
Operations APAC A

Step 1- Pricing specialist receive SPA having quantity below MOQ

Step 2- Pricing Specialist to verify MOQ and suggest sales team to increase quantity to match
MOQ and avoid surcharge. If quantity is increased, Pricing Specialist will process SPA, if quantity is
not increased, Pricing Specialist will move to next step for stock checking

Step 3- Pricing Specialist will check stock status, if stock is available, Pricing Specialist will process
SPA without MOQ surcharge but notice applicant that ready stock is not guaranteed and subject to
availability. If stock is not available, Pricing Specialist will communicate to applicant for getting MOQ
waiver from VP operations APAC

11. Below is contact list for regional pricing leaders

Region LoB Pricing Leader

China INET & ICOS Lisa Xu
China INCA, ECS & BAV Linda Wang
SEA, NA & ANZ INET & ICOS Hedy Teo
SEA, NA & ANZ INCA, ECS & BAV Anh Dang
India INET & ICOS Deepak Munjal
India INCA, ECS & BAV Ankita Joshi

Page 5 of 5