OPPO Overseas DOA, DAP, Demo handset Management

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1. Objective

To standardize the management of overseas DOA DAP and demo models, and clarify the mutual rights and responsibilities of overseas agents and Guangdong OPPO Mobile Telecommunications Corp., Ltd. (hereinafter referred to as "the Company").

2. Application Scope

This guidance is applicable to all customer service center and authorized service center.

3. Definition

3.1 DOA - dead on arrival: Phones are found to fail in the first opening of the cartons or color-boxes before being sold, except for the lack of accessories or faulty accessories.

3.2 DAP – dead after purchase: Phones with non-human damage are guaranteed for return or replacement in line with the conditions of return or replacement.

3.3 Demo model: Phones that are resisted or record according to the "Management Policies of the Business and Demonstration Phones" and are used for demonstration, business, or engineering during the sales process.

4. Internal Management Process and Inspection Order Recording Regulation

4.1 After the customer service center judged that the mobile phone is a DOA / DAP handset, type of the handset must be clarified and recorded in the inspection order of the system. All detailed requirements should refer to ā€œOPPO Overseas Customer Service Center Inspection Order System Management Regulations ". All customer service centers are required to send DOA DAP handsets to the central warehouse every month. The central warehouse shall check whether there is any difference upon receiving the handsets, especially need to make sure whether the accessories are complete or not. If not, the shortage should be paid by relevant person.

4.2 The Demo model should be executed according to the company policy. Each region needs to report the data such as IMEI to the Company within 3 months after the handsets is listed, and the data will be uniformly uploaded into the after-sales system by spare parts management team.

4.3 In order to simply repair or refurbish DOA, DAP and demo model which chooses local handling before sell them as second hand handset, the consumed materials recorded in the system should choose OOW as the maintenance type, remark ā€œDOA, DAP, Demo model repairā€ on the repair order and the Company does not cover material costs. The Company write off repair labor cost referring to remark ā€œDOA, DAP, Demo model repairā€. If there is no remark, the Company will not write off repair labor.

4.4 IW record: the customer can still enjoy the company warranty policy in warranty period if they buy a second hand DOA, DAP, demo model in non-artificial damage cases. Normally the maintenance type indicate ā€œIW", and "good repair material information" module should be marked with DOA, DAP, demo model. And the Company will shoulder the material costs.

4.5 OOW record: for the repair caused by artificial damage or beyond warranty period, the maintenance type of order is "OOW" except the special notice issued by the Company. The Company does not shoulder the material costs.

4.6 All DOA, DAP and demo model are no longer enjoy the replacement policy.

5. Return to factory (China Factory or local Factory)

5.1 Principle for Return to factory

5.1.1 Refurbish Period

  •  Report deadline: the 60th natural day after the date of stopping production; reporting of refurbishment later than this designated deadline will not be accepted by the Company.

  • Refurbishment deadline: the 90th natural day after the date of stopping production; refurbishment later than this designated deadline will not be refurbished by the Company.

5.1.2 Refurbish Cost

  • For products reported and delivered to the China refurbishment factory before the deadline of refurbishment (based on the time at which the freight forwarding company has announced the arrival to the factory), the Company will provide free refurbishment and prepare for delivery within 30 working days. For reasons caused by the Company, the product failed to be refurbished and discharged from warehouse for longer than 30 working days, factory will subsidy according to the latest factory price of delivery.

  • Non-DOA/DAP phones can apply for paid refurbishment. After the audit by the Company, the refurbishment costs in accordance with the "Price List of OPPO Phone Refurbishment" and relevant tariffs and freight charges will be charged.

  • For phones under four kinds of circumstances, i.e., reported later than the deadline, not reported, the material object not matching with the reporting information, and the time of arrival to the refurbishment line later than the deadline for refurbishment, the Company will return the same phones to the agents, and all costs incurred should be borne by the agents.

5.1.3 DOA DAP return quantity

Before stopping production, the return and refurbishment only take place when the quantity of DOA / DAP of each model has reached 50; after stop production, the number of DOA/ DAP of each model will not be controlled.  





  

5.2  Packing and shipping requirements for handset return

5.2.1 Due to the refurbishment factory located in a tariff-free zone, the customs requires the data list and physical models or materials must be correspondent to each other. Otherwise there will be customs risks. Therefore, the list of all factory-returned phones must be the same as the physical ones, and the packing information and the physical model in the color box must be unified. If any difference found during the checking, agent will be punished 500 USD per time. Huge fines will be incurred if any serious cases happened, and the punishment will be notified worldwide.

5.2.2 All phones returned to the factory must with complete all accessories, including adapter, earphone, USB cable, Nozzle Cleaner, and protective shell; and the specifications of the accessories must be consistent with the return models; no parts can be removed from the phone. In addition to the amount of material shortage will be deducted from the agent account, another punished 500USD/time will also be deducted. Huge fines will be incurred if any serious cases happened, and the punishment will be notified worldwide.

5.2.3 The phones returned to the factory must be packaged with in a whole big box, and fragile stickers should be attached to the color boxes and outer cartons, to prevent phones and accessories from being lost during transportation; each carton should be numbered as follows: Area+ (carton no. + Total number of cartons) + description + model no + qty + net weight + gross weight. A packing list (Annex I) must be prepared for each carton, with the total packing list placed in the first carton.

5.2.4 All phones returned to the factory must be properly packaged, external cartons and color boxes that are seriously damaged are prohibited. When the phones fail to fill the outer carton, sufficient filler must be placed in the carton to prevent the phones from falling or being damaged during transportation.

5.2.5 The handsets returned to the factory shall fill in the paper inspection order, indicating the failure phenomenon and type of the returned models (DOA, DAP, Demo). If the returning model is found obvious artificial damage such as broken screens, sabotage of the battery cover, liquid intake, self-maintenance, etc., the related cost shall be deducted according to the sum of the refurbishment price plus total latest factory price amount of the bad motherboard and the bad screen.

5.2.6 All phones returned to the factory should be reported to spare parts management team 30 days in advance. The customer service manager of each market shall arrange personnel to check and be responsible for the conformity of returned handsets.

5.2.7 If the above actions result in the failure of the entire refurbishment business to proceed normally or even shut down, the investment costs and losses of more than tens of millions will be borne by the corresponding agents, and high-level public criticism will be given.

5.3  Freight Charge of Returning Phones

5.3.1 The agents should handle the phone returning based on the time frame arranged by the spare parts team (Annex III). The shipping cost that DOA / DAP models return from agent area to China, will be beard by the Company once per month. Other extra cost caused if sent back more than once will be beard by the agent.

5.3.2 All refurbished phones will be returned to Hong Kong freight forwarding warehouses of agents under the unified arrangement of the Company. The subsequent shipping process will be carried out in line with the normal shipment. The freight charges and tariffs incurred by being returned from the Hong Kong freight forwarding warehouses to the destination countries should be borne by agents.

5.4  Stock Tacking

5.4.1 When the phones returned and arrive at the China refreshment factory, factory is required to receive and check them and their accessories in the first time, and feedback the checklist and differences to the agents.

5.4.2 The received and returned data should all based on the counting and checking results of the factory. If the phones or accessories are lost during transportation, the agents should contact with the freight forwarding company to resolve.

6. Local Handling

6.1 DOA DAP local handing Solutions

6.1.1 Refurbishment Price Principle: The areas which can return the phones for refurbishments can choose this solution for the last return which model less than 50 sets. The company shall strike the balance to compensate each phone according to the Price List of OPPO Phone Refurbishment. The detailed information list of DOA/DAP phones should be provided to the company, including IMEI number, sales time. Set the discount price according to local markets, HQ will not participate and control.

6.1.2 Four-Six Principle: The market and model which do not return to factory for refurbishment, HQ cover 40% of latest factory price for the total amount of DOA and DAP, and agent cover the rest 60%. The ownership of DOA and DAP models belongs to the agent, the agent can sell these phones with discounts (do not applicable solution A) or scrap them. But the phone cannot be disassemble and apply the good-conditioned components as spare part. (For regions with special circumstances, DOA DAP produced more than 100 sets each month but cannot be returned to the factory due to local customs regulations, this solution can be applied after confirmed with local agents.)

6.1.3 Disassemble: Organize technicians to disassemble DOA, DOP phones. In order to avoid sluggish, please be sure to inform spare parts management team before disassembling. After spare parts management team has confirmed, disassemble can be operated under the supervision of manager. After the disassembling, send the good condition part list to spare parts management team. After list is confirmed, HQ claim DOA and DAP devices with latest factory price and adjust spare part account receivable. The Company reserves right donā€˜t pay for unauthorized disassembling of DOA, DAP phones.

6.1.4 The second hand handset is recommended but not limited to internal staff consumption, sell as a second mobile phone, SWAP unit, etc. Sales as new handsets are strictly prohibited.

6.2 Demo Handset Solution

6.2.1 If the demo handsets are found any abnormal issue within 7 days, can apply for replacement of a new handsets, which shall be recorded in the inspection order and treated as DAP, and the type of inspection shall select demo handsets. All these models shall not repeat report for demo.

6.2.2  Each market can handle demo handsets according to actual requirements. In consideration of the management cost, logistics and transportation cost for return and safety factors, it can be sold directly to dealers or promoters with discount, or it can be recycled into spare handsets or sold out with discount. Since the ownership of the demo handset is owned by the agent, the Company no longer gives any extra financial subsidies.

7. Warranty Term

7.1 DOA/DAP: Calculated from the registration time of the handset. If the registration time of the handset cannot be obtained, the warranty period shall be extended 90 days from the factory delivery date of the handsets. The warranty period of second hand handset shall also be subject like this.

7.2 Demo handset: The warranty period shall be extended 90 days from the factory delivery date of the handsets. The warranty period of second hand handset shall also be subject like this.

7.3 The DOA/DAP report will be stopped from 6 months later than the channel announced the delisting of this model; the report of IW maintenance of the handsets will be stopped from 24 months later than the channel announced the delisting of this model.

8. Other Relevant Issue

8.1 The DOA and DAP handsets will be given priority to returned to the factory for refurbishment. Only if the factory cannot meet the refurbishment requirements, can choose the local treatment.

8.2 When the refurbishment of DOA /DAP phone is completed, the IMEI number of the whole product will be changed. For areas where the IMEI number need to remain unchanged after the completion of the refurbishment, it must be informed to spare parts management team first and noted in the return list Annex II also.

8.3 Any Non Ben-fen behavior been found during the inspection process, the related punishment will be executed in accordance with ā€œOPPO Overseas Customer Service Center Non Ben-fen Behavior Regulationsā€.



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