© 2009 Cisco Systems, Inc. All rights reserved.
Cisco Systems LLC
What you need to know
July 20, 2011
Partner Training
© 2009 Cisco Systems, Inc. All rights reserved. 2
Today‟s Objectives
About Cisco Systems LLC
How You are Impacted
What is Not Changing
What is Changing
Partner Processes
Additional Resources
Introduction to Cisco Systems LLC Agenda
© 2009 Cisco Systems, Inc. All rights reserved. 3
Today‟s Objectives
At the end of this session you will be able to:
Describe the purpose of the new Cisco Systems LLC.
Describe how Cisco Systems LLC impacts you.
Describe what is not and what is changing for Cisco Systems LLC.
Successfully initiate and complete the procedures needed to do business with Cisco Systems LLC.
Know where you can get additional support regarding Cisco Systems LLC.
© 2009 Cisco Systems, Inc. All rights reserved. 4
About Cisco Systems LLC
Cisco Systems LLC is a new
buy-sell entity that will introduce
locally manufactured products
into the Russian market.
Products include:
Set Top Box
RVPN
© 2009 Cisco Systems, Inc. All rights reserved. 5
Availability of locally manufactured products Cisco Systems LLC is established in Russia to manage the sales and distribution of select locally manufactured products beginning August 2011. These products are; Set Top Box, RVPN Blade.
Cisco Systems LLC will operate in local currency. Locally Manufactured products and services will be priced in local currency (Rubles). Price lists, quotes, invoices, and payment will all be in Rubles. Remittance & collections will be sent to Cisco Systems LLC via new bank accounts
Partners will purchase from both Cisco Systems International BV and Cisco Systems LLC for both products and services. Products that are not locally manufactured will continue to be purchased off the BV price list. Locally manufactured products and associated Partner Branded Services and Advanced Services will only be available via Cisco Systems LLC. However, Cisco Branded Services required for Cisco Systems LLC products will continue to be sold via Cisco Systems International BV.
How Cisco Systems LLC Affects You
© 2009 Cisco Systems, Inc. All rights reserved. 6
Partners will be responsible for order pick-up Cisco Systems LLC will be on an opt-out (Partner routed) delivery option. Partners will be responsible for picking up or planning for the pick-up of their orders on promise date. There will be a grace period of 2 calendar days after the promise date. If product is not picked up after the grace period, storage fee will be applied and Partners will be invoiced.
Cisco Systems LLC is a high-touch manual process. Quoting, ordering, order changes, cancellations, returns and holds will all be conducted manually.
How Cisco Systems LLC Affects You
Locally manufactured products and associated services is restricted to Russia market only. Cross-border delivery of locally manufactured products and/or services will not be allowed by contract terms and will be governed by Cisco during the ordering process.
© 2009 Cisco Systems, Inc. All rights reserved. 7
What’s is NOT changing?
Products that are not locally manufactured and
associated services will continue to be orderable off of
the Cisco Systems International BV pricelist using online
quoting and ordering tools.
Existing global policies will remain unchanged for order
changes and cancellations.
How You are Impacted
© 2009 Cisco Systems, Inc. All rights reserved. 8
You will see changes in the following areas:
Product Availability
Price List
Quoting
Ordering
Quoting and ordering status tools
Order Changes, Cancellations, Returns, Holds
Submitting payments
Product pick-up
Storage Fee’s
Service Contract Management
How You are Impacted
© 2009 Cisco Systems, Inc. All rights reserved. 9
Price List • Price list for locally manufactured products will be set up in
Rubles and will be provided to the partners via separate e-mail.
Once a product is introduced into the Russian market, it will no longer be
listed on the Cisco Russian Price Lists (WPL and GPL).
© 2009 Cisco Systems, Inc. All rights reserved. 10
Placing a Quote with Cisco Systems LLC
Step 2:
Step 3:
Step 1: Partners will contact Partner Account Managers (PAMs) / Distribution Account Mangers (DAMs) requesting a product and/ or service quote
Partners will be provided with a quote from their PAM/DAM.
Partners will then prepare the Purchase Order (PO) based on Cisco quote.
© 2009 Cisco Systems, Inc. All rights reserved. 11
Placing a Order with Cisco Systems LLC
Step 2:
Step 3:
Step 1:
Step 5:
Complete, print, and sign and stamp Purchase Order (PO) to Cisco Systems LLC Separate Purchase Order templates to be used for products and services!
Scan PO and submit it to Cisco Systems LLC via e-mail to the delegated local Customer Operations representatives. Partners will receive notification of PO acceptance. Local Customer Operations representative will do PO validation against Cisco policies and notify a partner.
The original PO with a verifiable Cisco signature and stamp will then be sent back to the Partner .
Step 4: As soon as all the mistakes on PO are corrected, partner will be notified to send 2 original copies of PO to Cisco office.
© 2009 Cisco Systems, Inc. All rights reserved. 12
Cisco Systems LLC Purchase Order Submission and Validation process
Country Enablement – Russia Interim Solution
“To-Be” State Status: DRAFT v0.5
Cis
co
BV
Ru
ssia
LL
C
Same document with changing status
Cis
co
Glo
ba
l
Te
am
Pa
rtn
er
refe
ren
ce
YES
NO
Sales OrderStatus: Credit Check Pending (CCP) hold
Purchase order
created and
submitted
Partner needs to
change/cancel
Order
Changed
Purchase order
(PO)
Perform
global credit
check
Purchase Order
(PO, Zakaz)
All data
correct?
Sales Order (SO)
Status: Released
Sales Order (SO)
+ Lead time
F2D (to check Lead Time
and issue PO)
Order
Acknowledgement
Services
1CManual/Paper
2. Validate SO and
PO against the
internal Customer
Operation
procedures
3. Put SO on hold
and communicate gaps and next steps
with Partner
1. Enter or Change Sale Order (SO)
5. CCP hold release
6. PO approval, signing and
stamping by Cisco LLC
SO and PO for Services Products
Q2O
Q2O
(change
deal status)
Deal ID
4. Prepare
information for
credit check
CC passed? ANO
A
8. Generate notifications
Services validation
Results
7. Service Hold on SO
Global
Services
Services
F2D 10. Release Service Hold on Service SO
S/N
Services arebooked
I2C
9a. PO approval, signing and
stamping by Cisco BV
9b. PO approval, signing and
stamping by Cisco LLC
Order to Invoice
Orderinformation
© 2009 Cisco Systems, Inc. All rights reserved. 13
How to submit PO
Local Customer Operation team will be
processing all the partner‟s requests
related to the locally manufactured POs
and SOs.
All such requests will have to be
submitted in English.
In order to have these requests
channeled to the local team, partner
can send a request to standard global
cs-support alias having key words
RU-LOCAL-MFG in the subject field.
Please always copy on such e-mails
[email protected] alias.
Phone: +7 495 789 8617
Phone: +7 495 961 2682
© 2009 Cisco Systems, Inc. All rights reserved. 14
Where to send 2 copies of original PO
Postal Address of Cisco Systems LLC
in Russia:
"Krylatsky Hills Business Park"
Krylatskaya Street, 17 (D)
121614, Moscow, Russia
To the attention of :
Alina Martirosyan and
Ksenia Alalshova
© 2009 Cisco Systems, Inc. All rights reserved. 15
Customer Operations Automated Notifications - overview
Once PO is submitted, Partner will received PO acknowledgement notification
Once SO is scheduled and promise dates are assigned order will get a “sent to manufacturing” status and 2nd notification will be sent to a partner
Once the full SO is shipped (all lines are shipped,) SO will receive a “Shipped” status and the 3d notification will be sent to a partner
© 2009 Cisco Systems, Inc. All rights reserved. 16
Example of notification for PO acknowledgement
--------------------------------
ORDER INFORMATION
--------------------------------
Purchase Order Number : ABC001
Purchase Order Date : 14-07-2011
Sales Order Number : С0000000128
Sales Order Date : 14-07-2011
Current SO Status : Submitted
--------------------------------
ITEMS
--------------------------------
Line Product Qty Unit Price Extended Price
------------------------------------------------------------------
1 CGR-2010/K9-RH 15 33,333 RUR 39,332.94 RUR
CGR-2010/K9-RH
Requested Ship Date: 22-07-2011
------------------------------------------------------------------
2 NME-RVPN= 35 26,932.62 RUR 31,780.49 RUR
NME-RVPN=
Requested Ship Date: 20-08-2011
------------------------------------------------------------------
Total[RUR]: 1,702,311.31
------------------------------------------------------------------
Contact : <>
Phone :
Email : [email protected]
Payment Terms : 30 NET
--------------------------------
SHIP-TO ADDRESS
--------------------------------
OCS
Contact : <>
Phone :
Email : [email protected]
© 2009 Cisco Systems, Inc. All rights reserved. 17
Example of notification for SO “Sent to manufacturing” status
--------------------------------
ORDER INFORMATION
--------------------------------
Purchase Order Number : ABC001
Purchase Order Date : 14-07-2011
Sales Order Number : С0000000128
Sales Order Date : 14-07-2011
Current SO Status : Sent to Manufacturing
--------------------------------
ITEMS
--------------------------------
Line Product Qty Unit Price Extended Price
------------------------------------------------------------------
1 CGR-2010/K9-RH 15 33,333 RUR 39,332.94 RUR
CGR-2010/K9-RH
Requested Ship Date: 22-07-2011
Promise Date : 19-08-2011
------------------------------------------------------------------
2 NME-RVPN= 35 26,932.62 RUR 31,780.4917142857 RUR
NME-RVPN=
Requested Ship Date: 20-08-2011
Promise Date : 22-07-2011
------------------------------------------------------------------
Total[RUR]: 1,702,311.31
------------------------------------------------------------------
Contact : <>
Phone :
Email : [email protected]
Payment Terms : 30 NET
--------------------------------
SHIP-TO ADDRESS
--------------------------------
OCS
Contact : <>
Phone :
Email : [email protected]
© 2009 Cisco Systems, Inc. All rights reserved. 18
Promise dates scheduling and recommit process
1. Assignment of promise date: Promise date is assigned to SO automatically when all holds are released from
SO and SO becomes Booked.
2. Calculation procedure: Promise Date = Order Entry Date + Lead Time Goal (includes
weekends/holidays)
Check №1:
If request date > promise date, then promise date=request date.
Check №2:
If different lines have the same request date but different products, then the
same P-dates should be assigned
If different lines have the same request date and the same product, then these
lines should be united
3. Recommit process Jabil recommits on PD dates. The new promise dates are manually entered in
SO and partner is notified by Local Customer Operations.
Important: If one line out of a few having the same request date (and
consequently the same promise date) is being recommitted, the rest of the
lines will be recommitted as well.
© 2009 Cisco Systems, Inc. All rights reserved. 19
Order Change/Cancelation
Standard Order change/cancellation rules apply
• 10 business days prior to „Originally scheduled Promise date“ will be in use
Change/Cancellation request needs to be fullfilled via an amendment to a PO.
• The amendment will follow the same process of submission, validation and signature like that of for a Purchase Order.
© 2009 Cisco Systems, Inc. All rights reserved. 20
Processing of expedites EXPEDITE PROCESS : 1. Partner requests to expedite for shipment by sending request to the
local Customer Ops.
2. Local Ops will send the expedite request via e-mail to Jabil
3. Jabil Russia will decide the feasibility of the expedite process based
upon the available supply and capability.
4. Jabil Russia will respond to the request by responding to the mail.
5. New promise dates will be assigned manually in SO in 1C.
6. Local Customer Ops will review and communicate the new promise
dates to the partner by email.
© 2009 Cisco Systems, Inc. All rights reserved. 21
Shipments & Returns
All orders will be delivered as „opt-out‟
RMA will be fulfilled via buy back & will follow
global returns policy for approval
• RMA is applicable for all types of discrepancies between ordered product and shipped product (incorrect product inside the box, incorrect configuration of a product).
No credit notes will be applicable for returns
© 2009 Cisco Systems, Inc. All rights reserved. 22
Process flow for buy back
© 2009 Cisco Systems, Inc. All rights reserved. 23
• Partner must remit payment to Cisco entity submitting invoices
New Cisco Systems LLC invoice format
Cisco Systems LLC Bldg. 1, 52, Kosmodamianskaya Nab, Moscow, 115054, Russia
Set up Cisco Systems LLC in your procurement & accounts payable system(s) with the new Italy entity information.
TBD
TBD
TBD
TBD
Cisco Systems LLC Invoicing
Submission of payments to two separate Cisco companies for a period of time may be required if existing business with Cisco Systems International BV is not closed prior to August 2011 and new business is initiated with Cisco Systems LLC on or after August 2011.
TBD
© 2009 Cisco Systems, Inc. All rights reserved. 24
Pick-up
Schedule
Notification
day
Waiting
day
Waiting
day
Promise
day
Grace
period
Grace
period
Start charging
for storage
Date Aug 17th Aug 18th Aug 19th Aug 20th Aug 20th Aug 21st Aug 22nd
Product Pick-Up with Cisco Systems LLC
Below is an example of the product pick-up timeline associated with Cisco Systems LLC:
© 2009 Cisco Systems, Inc. All rights reserved. 25
Pick-up
Schedule
Promise
day
Grace
period
Grace
period
Start charging for storage
(Cisco will hold the products for 30
days with an attached storage fee)
Cisco Assumes
Order is cancelled
and Restocking Fee
is charged
Date Aug
20th
Aug
20th
Aug
21st Aug 22- Sep 20 Sep 20
Storage Fee with Cisco Systems LLC
*Note: The storage fee will be 2% of PO value of products to be picked up divided by 30 days. Fee will be charged per day after Promised Ship Date+1, and up to 30 days.
Below is an example of the product pick-up time line associated with Cisco Systems LLC:
© 2009 Cisco Systems, Inc. All rights reserved. 26
Cisco Systems LLC Service Contract Management
Service contracts are being finalized at the moment. For ordering of services there will be conducted and additional training
© 2009 Cisco Systems, Inc. All rights reserved. 27
What Partners and Distributors Should Anticipate
Partner Training Session
Pre- launch Communication– email notification to all Russian Partners on
the availability of locally manufactured product(s). Notification to be sent
approximately two weeks prior to product availability.
Readiness Communication– email notification to Russian Partners who will
be directly purchasing from Cisco Systems LLC. The purpose of this
communication is to inform these Partners of the date product will be
orderable from Cisco Systems LLC. Notification to be sent approximately
one week prior to orderable date.
© 2009 Cisco Systems, Inc. All rights reserved. 28
Спасибо
Thank you all for your time
and dedication. All of your
efforts and participation are
much appreciated and we
thank you!
© 2009 Cisco Systems, Inc. All rights reserved. 29
Question & Answer
During this time, we would like to welcome any questions that have been gathered during today’s session.
© 2009 Cisco Systems, Inc. All rights reserved. 30