HWS Operational Model and

Delivery Overview
Sari Saarinen
Tero Aaltonen
17th of September
Table of Content

Mode of operations: Logistics overview and service items for Coriant-N

• HWS E2E logistics overview and HWS Footprint
• Care Service Sales Items
• Hardware Service Sales Items
• HWS Services Processes overview
• HWS Organization
• HWS Roles and responsibilities

Solution overview & System Landscape for Coriant-N

• HWS Day 1 to Coriant To-Be State
• Overview to system landscape
Welcome to this training session. My name is
• HWS Repair flow overview Sari Saarinen, and I am the Hardware
• Interface overview Services Process Owner in Coriant.

• Process overview In this session, we will be looking at the

Hardware Services operational model and
case handling & delivery process.
SAP Overview

Integration Workshop: Hardware Service Scenarios 2

HWS footprint (Coriant-N) HWS has two logistics partners handling our
delivery network. TNT operates our global
distribution center in Netherlands and all
together 58 warehouse locations. DHL
Operates our call center in Hungary and 52
warehouse locations.

Global Distribution
Center (NL)

Country with local

inventory

RC Berlin (internal repair

center)

Call Center (HU)

24 Countries
58 Warehouse locations
1 Distribution Center

11 Countries
52 Warehouse locations
1 Call Center
 Hardware Services (Coriant-N): E2E Logistics and Repair Chain

Internal Repair OEM Repair Vendors

Factory Center

80% 20%
Of repairs Of repairs
HWS Global
Operations DC DE33
E2E process monitoring
and support
DE33/ PTCW
Inventory Planning &
Optimization FSL FSL
FSLFSL Customer Warehouse
Reporting

KPI Monitoring
FSL
FSL

FE FE FE FE FE FE FE FE FE FE

Customers Network
DC: Distribution Center / Reverse Logistics Center
Coriants’ global FE: Field Engineer (incl. Car Kits)
Customers
operation in CWH: Country WareHouse
operation
Panther/ CRM FSL: Forward stock location for Same Day services
CSP: Communication Service Provider
Care HWS Operations Organization- Contact points

Operations Manager AMERICA

Patrick Langone • Working as a key HWS partner towards customers, warehouses, internal
contacts and suppliers
• Customer order fulfilment follow-up
Operations Manager APAC • Partner follow-up and support
Saija Virta • Daily inventory follow-up
• Import/ export follow-up
• Stock demand planning / Purchasing new stock
Operations Manager EURAF
Johanna Hattunen

HWS Operation managers are main contacts

regarding queries about HWS deliveries. They
have full E2E visibility to HWS delivery flow
and can support you also with service
capability requirement clarifications
 HWS Roles & Responsibilities
• Inventory management and optimization
• Identifying process gaps and collecting development requirements to service operations
Supply Chain Manager • Competence follow-up and training
• Customer return management and coordination (IF to LSPs)

• Product lifecycle management (Product Ramp-Up / Ramp-Dow, Service Level monitoring, changes and communication)
• Product data management (Product structure configuration, Product compatibility of stocked item codes and replacing item codes,
Product lifecycle Monitor data correctness in product related PDM tools and ensure data flow between the existing tools
• HWS Product related costing (profitability costing) and pricing for tendering purposes
manager • Monitoring of product performance and quality as well as MTBF value availability and correctness
• Support the regions in HWS product related technical, logistics or sales related issues

• Repair capability management

Repair sourcing • Repair KPI management
• Repair quality management; Check and approve invoices
manager • Repair capability optimization and management

6
 HWS Roles & Responsibilities
• The Coriant Service Manager manages customers’ services business for a defined region or a cluster of accounts, accountable
Service Manager for the end-to-end services engagement
• Responsible for customer contract creation and maintenance

• Accountable for e2e Logistics operation within the customer team

• Responsible to identify, plan and manage logistics activities to meet CT financial targets and responsible for CT demand volume
Account Logistics (HW/SW) planning
Manager • Contributing to resource planning and to all Logistics tasks in daily business, e.g. constraints solving, escalation management
• Responsible for customer invoicing

• Repair activities and logistics handling of units under repair

• Receiving of faulty units to repair center portal
• Repairing of units
Repair center engineer • Reporting faulty codes and repair description
• Preparing shipment and collection of goods
• Module/ component usage and reporting
• Following up KPIs and managing capacity planning
 Care Service Portfolio

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HWS Service Processes
The main difference between the service types is the sequence of logistics and Customer SLA

Identical Repair
1. 2. 3. Identical Repair
• Same serial repaired and returned to customer due to
DC customer specific product / custom regulation
• Item not received to stock
Customer Supplier
7. 6. 5. 4. • Direct forwarding to repair/ back to customer
CRM Portal • Item owned by customer

Advance Replacement/ Repair or Replacement

3. 4. 5. Advance Replacement
Faulty • Next business day lead time
• Customer receives replacement before returning failure unit
DC Repair or replacement
2. 1. 7. Supplier • Replacement SLA starts when failured unit has been
Customer 6. received
Good CRM Portal • Usually same unit returned to customer, but can be replaced

Managed Replacement Service/ Replacement from Local Warehouse

3. 4. 5.
Faulty Managed Replacement Service
• Same day replacement lead time
DC • Inventory buffered in country to ensure service SLA
2 1. 7. 6. Supplier • Replacement compatibility needs to be secured
Customer . CWH Good CRM Portal

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 Solution overview

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 Hardware Repair Logistics – Overview

When a customer has HW issue in their network, they contact Coriant Hardware Services. They can log into the Coriant customer portal and directly enter case details in our Eagle
CRM system or contact our Call center to report HW issue. Eagle CRM is the centralized system used for managing Hardware Services cases. In customer portal customer can
view online status of the HW replacement delivery and detailed repair information oft the failured unit. Our repair centers are logging in repair details directly to CRM Eagle and
creating dispatch lists for the repaired units.

Warehouse Good &

Good &
Customer Reverse Reverse Repair Center
logistics Logistics service provider logistics

• Delivery & receipt requests from CRM to LSP

• Logistics status updates via interface

Coriant CRM “Eagle”

Customer Repair Process
Hardware Case
Portal
HW Request Hardware Case Tracking Repair Dispatch
via portal or
call center Call
Center

• Finance and inventory update to ERP

Coriant ERP “Panther”

Copyright © Coriant 2013. All rights reserved. 12

HWS Tools Landscape Coriant-N

LSP
Systems
Customer delivery Logistics
interface Export For HWS Deliveries there is three main
systems interacting in the E2E delivery
flow.
CRM CRM is central tool where customer
creates a case and where you can follow-
Replenishment interface up online delivery status.
Customer case handling CRM sends delivery tickets to LSP
Repair process systems and receive status updates back
HWS Product master from them.
CRM updates SAP with inventory updates
and finance relevant transactions like
SAP customer service orders and vendor
Customer delivery & purchase orders
Repair PO interface Panther
Invoicing and F&C
Replenishments to GDC & CWH
 HWS Tools Landscape LSP Systems
- Warehouse Management (Version item level)
- Export and Import
- Transportation
CRM Customer delivery & Faulty - Exception case management (e.g. Repair or
repair loop handling replacement with 30d lead time

- Customer and Partner portal

- Order creation & Follow-up
- Repair handling at repair center Replenishment
- HWS Product Master, version level coding Transactions to
- Asset data: warranty data, equipment status GDC & LWH
- Customer complaints
SAP Panther
Basic data to CRM
- Enterprise structure
- Basic data: Materials, prices, customers, vendors,
addresses
Customer invoicing data - Delivery data from factory
Inventory movements - Customer invoicing & Payment
Repair PO data - Contract management (Customer & Vendor)
- Inventory management (Sales item level)
- Replenishments to GDC and CWH
- Inventory movements (serial number optional)
SAP Panther is main tool to maintain basic -
data. All basic data is transferred from SAP to
Export control
CRM, where HWS Specific details can be
maintained. For example global HWS service
levels for products or information if product is
repairable or not.
 Process steps with interfaces

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 HWS Identical Repair: Sequence for Interfaces (Berlin RC)

Create Process HWS Handle Faulty Repair Faulty Handle Good Close HWS
HWS Case Case Unit in GDC Unit In-house Unit in GDC Case

C Create movement Update movement status Update

Faulty unit receipt in Berlin RC- Update movement status:
request: & create movement
R 1. Faulty inbound 2. Faulty outbound
Repair shipping
status
Close case
M

Movement Movement Movement Movement Movement Movement Movement Repaired unit Customer
Request Status Request Status Requests Status Status movement Service order
L 2. Faulty outbound 3. & 4. Good (if RC Berlin)
1a. Faulty 1b. Movement
S inbound confirmation
Movement inbound & 3. Good 4. Good unit Inventory mvmt
confirmation outbound receive ship
P request Faulty received
requests to DC
Faulty ship status

Repaired unit GR 901 at

Inventory mvmt Z61
RC
E
Transfer posting RC- Customer service order
R GDC 301 wrt contract
P Component usage to cost Create debit memo
center request

Integration Workshop: Hardware Service Scenarios

 SAP Panther overview

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HWS Process Design Guiding Principles in SAP
Panther
• No SAP split valuation is used in new ERP

• Faulty units are not received or tracked in SAP, only in LSP systems and CRM

• Serial number tracking is optional in HWS plants

• Material coding will be on sales item level in HWS plants in SAP Panther

• All material movements to GDC (DE33) will ONLY come from repair center (DE32); no direct goods movement from
production plant (DE31) to GDC (DE33) or from external suppliers. This is to collect all repair related costs to R-SPC
price in DE32
• Standard cost (R-SPC at Berlin RC and G-SPC at GDC) is used for material at unit level
• Repair center will capture repair center costs directly to cost center based on current cost calculation logic
• All 3rd party vendor repaired materials and OEM materials are logically received in Berlin RC first but physically delivered to
GDC.

• Service orders are used from GDC GR/GI of customer deliveries. The purpose of the service orders are cost
capturing, customer billing and inventory valuation/consumption

Copyright © Coriant 2013. All rights reserved. 21

Inventory valuation

Price from Price from GSPC: Global

SPC  RSPC RSPC  GSPC operational cost

Mvmt LWH
Factory STPO+ delivery
DE31 301 Mvmt US31
SPC GSPC
Berlin RC 301
GDC DE33
DE32
OEM RSPC GSPC STPO+ delivery LWH
Repair PO + DE33/DESloc
center GR GSPC

There are two main prices used in HWS:

RSPC which reflect the repair cost of the
product and GSPC which is global cost of the
product containing warehouse costs

Please insert title of presentation

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 Thank You!

Integration Workshop: Hardware Service Scenarios 24