Hello
2025 SERVEONE MRO Process Course
I am Jaeon Oh from the Office Supplies Team, in charge of Product Registration and Management Course
This course will first deal with product registration, then with product management
Product registration and management are, as purchase agent, with purchase data management,
the most important parts
To introduce myself before we begin,
I started working as a member of the Office and Electronics Team in August, 2018
and am still working in the same team
I experienced various categories in the team and am currently in charge of prints and components
Since April 2024, I started working as employee representative,
trying to be of help to the company
I wrote "I cannot decide on how well I'll do, but I can decide on how hard I will try"
There was something I could earn only when I tried hard regardless of the type of work
I cannot control the outcome
but I believe I can try my best in the process
Okay, now we'll move onto the lecture
First, I would like to show you the overall flow of the general MRO Process once again
This is the map showing the overall flow of the MRO Process
You can see that the MRO Process consists of product registration, order by the customer,
order by the company, delivery, and settlement
When a customer requests product registration,
each purchase agent, sales agent, product information agent, etc.
will register the product
The customer will order the registered product,
and the cooperating company will place an order accordingly
Then, when the product has been delivered, the process will end with payment
Each purchase agent, in the process of forming and managing product information,
will make a lot of decisions
In this lecture,
I will focus on product registration and management
First, product registration
The general process of product registration will follow what's shown on the screen
Product registration can be done by
the customer, sales agent, management agent,
purchase agent, or the cooperating company
I will focus on the usual case, when a customer has requested for registration
and analyze the process accordingly
First, when a customer files a request for product registration,
it moves onto the SERVEONE system and reaches the DB verification stage
The one in charge of that DB checks for pre-registration
and defines which category the product belongs to
The one in charge of the DB may be the product information team
or the purchase agent
When the work is done, it then moves onto the purchase information registration process
In this stage, the purchase agent works on bidding and estimation
and when a successful bid has been made, registers the purchase price
After the purchase price has been registered, we now move onto the product registration stage
where standard products and nonstandard products are dealt differently
In the case of standard products, the product information team conducts quality checks
and if there are shortcomings, could ask the purchase agent for rework
But, for nonstandard products, the product registration stage by the product information team is left out
If there are shortcomings in the product registration process,
the DB agent and the sales agent can both reject the registration
When product registration is finished
the sales agent carries out the sales information registration process
The sales agent is in charge of selling price registration and product display
When this stage is completed, the product registration process shown on the screen is finished
Next, I will explain the details of each process
In the product registration request stage,
the customer, cooperating company, purchase agent, and sales agent can request product registration
and the means and reasons differ according to who made the request
First is the customer filing a request through the customer front
Second, the cooperating company can request through the cooperating company front
It is usually the products advertised and proposed by each company
or the pre-stocked products that the cooperating company and the customers are both aware of
Third, the sales agent can directly place a request through SMRO
The majority consists of customer registration by proxy
and cases of customer designated cooperating company and urgent products can also be requested
The last is the purchase agent
The purchase agent can also place a request through SMRO
and in cases of previous DB, new sourcing, and supplant products, he registers the products himself
In the DB verification stage, the DB agent is in charge of categorization and verification of pre-registered DBs
If the verification is inadequate, he can redemand the one who filed for registration
If the purchase agent requested for the product registration
he handles the verification process himself as well
In the case of DB verification, the verifying organization differs according to the managing unit
I will talk about this in more detail later
In the purchase information registration stage, the purchase agent has to
proceed with purchase information registration based on bidding
Bidding is the principle in order to
maintain fairness and to optimize the purchase price
However, if there are specific reasons where it can't be dealt with bidding
the estimate can be made according to bidding exception cases
When the bidding estimate processing stage is finished
the purchase agent checks for abnormalities in the purchase price
and proceeds with the purchase information registration
If a new product falls within the bidding pool set by the purchase agent
it can be transferred to the product information team in each organization to be handled with
In the product registration stage, the product information quality is checked
and if there are no problems, the product is registered
If there are any inadequacies, the purchase agent will be asked to redo the process
When the product registration is done, new product ID will be provided
As I mentioned earlier, in the case of nonstandard products, such process will be skipped
and the product ID will be given right after the purchase information registration stage
After such process, in the sales information registration stage,
the sales agent will register the selling price and display the product on the operating unit
Then, how is the DB verification agent decided?
This is the logic for deciding who will be in charge in the DB verification stage
When there is a request for product registration, it is first fragmented depending on whether an operating unit exists
First, when there is no operating unit,
there would be a request by the purchase agent or the cooperating company
If the purchase agent made the request,
if the purchase agent who made the initial request is the preliminary proposal by the cooperating company,
the system designated agent in charge of the cooperating company will handle it
On the other hand, if there is a designated operating unit
if the operating unit is LG headquarters or the sales headquarters, the product information team will,
and if it is SSP or BPO, the representative goods MD team will handle the verification
Thus, if the operating unit is LG or the sales headquarters, the product information team will,
if it is SSP or BPO, the representative goods MD team will,
and if there is no operating unit, the purchase agent will handle it
Next is the logic for deciding the purchase agent
It is a complex algorithm
the operating units that create a synergy effect in the big picture, such as playing the roles of sales and purchasing together
will be classified as the operation team and work as the MD
and the others categorized according to the specific management classification,
in cases of supply and where cooperating companies' integration can be managed
will be dealt by the main purchase team
I will explain three points here before moving on
First, the management categorization, thus what the purchase agent has to do
are bidding estimates, and if it is fully established,
the product information team will handle until product information registration
but in cases of products that need alternative suggestions
the purchase team is in charge of registration
Second, for the BPO operating unit, only the mid-level classification of sales promotion is done by the BPO MD
and the other categorization registration is done by the purchase team again
Third, this is the more detailed logic for determining who is in charge
the purchasing unit differs according to the operating unit and the specific categorization
so if you need, you could pause this video for a moment and take a look at it
Next is part of the product registration process, done by the purchase agent
I will explain about how one deals with bidding estimates
Bidding formed between 0 AM and 2 PM
are closed at 3 PM that day
and the other bids are open until midnight of the day it was formed
If there aren't any bids, the time limit is extended automatically
for those who set the system at automatic extension
Automatically extended bids may be made successful or terminated by the agent's decision
Estimates can be terminated as soon as a cooperating company makes a bid instead of having a set end time
As I mentioned earlier, when we take a look at who is in charge of the bid estimate processing,
the product information team can deal with it depending on whether a pool has been formed
and if there is a preregistered product, it can be handled as repetition
The types of bids not considered as bids are as shown on the screen
As you can see, there are 16 types
The estimate types that the purchase agent will actually use are usually
products with requests for predevelopment, prestocked products, AS products, and bundle products
Products with predevelopment requests are subsidiary developed products with preestimates
such as manufacturing, processing estimates and promotional items
Proof such as a written estimate sheet or a screenshot of the client's screen is required
Prestock means, as its name implies, items requested for prestock processing
and requires a prestock request form or an email
AS products are limited to one-time use items
Bundled products refer to cases where the sales team's prior approval is obtained to process them as a bundle
For the remaining items, it would be helpful to pause and read through them
Please note that quotations are processed only for the 16 items listed on the screen
for all others, the principle is to proceed via bidding
That covered the theoretical part
Now, let\'s review the system screens together,
from the product registration request to entering purchase information, using captured screenshots
The screens visible may vary slightly depending on the requester
We'll proceed based on the SMRO New Product Registration Request tab,
primarily used by purchase agents
First, upon entering the New Product Registration Request menu,
you will find fields for product information and attribute values
After entering this information, scroll down to input the product's basic details
Enter the product name, then use the category recommendation feature to receive a category suggestion
After selecting a category, set the required attribute names based on that specific subcategory
Then, look up and select the order unit, country of origin, and manufacturer
Next, enter the attribute values for the required attribute names based on the detailed category
Here, the attribute values essentially represent the product specifications
and play a crucial role during bidding estimates
Next, enter the product classification information
Specify whether it is a general product or a one-time product,
and indicate whether it is a standard or nonstandard product
Also, indicate whether hub handling is possible or not
if not possible, select the appropriate reason from the available options
Please note that if hub handling is not possible,
the shipping type must always be processed as direct shipping
Major reasons for impossibility include heavy items, products exceeding pallet size, installation inspection items,
intangible bundled products, hazardous materials, items prone to damage, frozen goods, harmful chemicals,
and items prohibited for parcel delivery
Once all attribute values are entered up to this point,
the final registration request is completed
via the ‘Request Registration’ button at the top of the screen
When you click the registration request, a pop-up appears
Enter the request type and reason to proceed, and you will be able to confirm the product request number
Once the request is complete, it moves to the DB verification stage
In the DB Verification SMRO tab, look up the request value using the request number
Click the request number
After clicking “Receive” for that case, check the processing information to verify if there are any issues
If there are issues, proceed to create a specification verification request
If there aren't any issues, click the Complete button at the bottom to finish verification
Once verification is complete, the purchasing manager will process the purchase information registration
The manager can look up the assigned request number in the Purchase Information Registration Processing tab,
accept the case, and enable modifications
After receiving the request number, if it's been assigned incorrectly, click the Change Assigned Person tab
If there are duplicate items, click the Duplicate Item Processing tab
If confirmation is needed due to insufficient information, click the Sales Agent Confirmation Request tab
If everything is in order, click the Create Bid Estimate tab to proceed to the next step
First, regarding bid creation criteria
Enter the bid name and click the ‘Add’ button
in the ‘Bid Partner’ field below to add a partner
After selecting the partner, click the ‘Create Bid’ button below to generate the bid
Here, if a bid pool has been set up,
it is automatically designated to allow direct bid requests to partners in the bid pool
For estimate creation, clicking ‘Estimate’ on the relevant request number allows proceeding
In the bid exclusion case pop-up, select the relevant content and proceed
In the quote request pop-up, select the quote name and partner
to send the estimate request to a specific partner
Next, you\'ll see the partner\'s bidding process
The target partner clicks the bid number
on the product bid quote screen in the partner front to bid
If they are to decline, they can enter a reason for refusal and decline
If authentication is required during bid registration, enter the authentication number
Input the price information: bid price, market price, and validity period
Enter the shipping order information: AT, MOQ, and multiple order quantity
Then click the registration button
After that, proceed with the bid unit price agreement contract for that item
Once authentication is completed via the public certificate, the bid is finalized
Once bidding is complete, the purchasing manager can check the status value for the supplier submission status
on the bid quotation processing screen
They can click the product details button to proceed to the next step
After confirming the quotation price and finding no issues, they can proceed to approve processing,
then move to purchasing information registration changes
to finally complete the purchasing information registration
So far, we've covered the product registration process and system
Next, in the product management section, we will explain
the information each responsible party needs to know about registered products
and what aspects require management
I will first explain about product information
Product information is the information about the product itself
Simply put, it is the characteristics of the product
Certain specifications would come to mind when you picture a mobile phone
Such things would be the product information
Key items in product information,
the basic information,
include product name, classification code, representative specifications, order unit, and manufacturer
Evaluation details comprise of product grade, attribute scores, and images
Classification information includes a one-time item, standard product, or whether it contains chemical substances
Other information includes image details, base price, and MSDS
To illustrate with an example,
for a Gram laptop, the basic information would include the manufacturer LG, the product name “Laptop,”
the size in inches, and the color
Staff members must verify that this product information is accurate
and, if any entries are incorrect, proceed with correction and supplementation activities
Next is the classification structure
The classification structure is a structure made by SERVEONE to group products
It is largely divided into four categories: major, intermediate, sub categories and detailed classifications
Major categories are sets of intermediate categories grouped for analytical purposes
Intermediate categories are generally groups of subcategories with mutual relevance
Subcategories are groups of detailed classifications sharing the same purpose and function
Detailed classifications are the lowest-level distinctions, representing groups of products with common functions, purpose tasks,
or manufactured through similar processes,
and can serve as unique names
The classification system is currently divided into 15 major categories,
126 medium categories, 305 subcategories, and 1,240 detailed classifications
As this is a classification system divided for operational purposes, it may change depending on the timing,
and there is a maintenance period approximately once a year
The major, medium, and minor classifications are purpose-centric, while the detailed classifications are characteristic-centric
This classification system allows for an intuitive and easy recognition of the hierarchical structure between upper and lower levels
Since the relationships between products are linked by category,
their characteristics can easily be grasped
It provides a foundation for implementing faster and easier searches among products of the same nature
It is designed to enable quick access to statistical ranges
for items of interest, from top to bottom levels
Ultimately, it serves as the fundamental structure
for registering, modifying, deleting, and maintaining items
Next is the distinction between standard and non-standard products
Standard products, as the name implies, refer to mass-produced,
widely available commodities manufactured according to standardized specifications
Simply put, these are products like smartphones or laptops
items where a specific image comes to mind when you hear their product name
These items can be identified by their model number, manufacturer, or standard specifications
Since these items aren\'t limited to specific workplaces,
they can be displayed and sold across multiple sites
The easiest way to distinguish them is to check if they appear in online searches
or if catalogs exist
Conversely, non-standard items are products that aren't standard
They lack universal applicability and are restricted to specific client specifications
They may involve drawings or specifications,
or even intangible goods like services
Thus, they typically include sub-components or one-off items,
generally exposed and sold only at a single business location
However, not all items in the non-standard category
lack a standard counterpart
For example, in the shopping bag category,
while bags often feature a specific client's logo and are produced exclusively for that client,
shopping bags sold online in specific sizes and with universal designs
can be considered standard products
Therefore, please be aware that exceptions do exist
Next is deactivation
Deactivation simply means the product has no price and cannot be sold
In other words, orders cannot be placed or processed for the product
Deactivation types are as follows
They are broadly divided into irregular deactivation and regular deactivation
First, for irregular deactivation: First, product discontinuation
This literally means that supply is impossible because the manufacturer ceased production
Second, stock shortages, meaning products temporarily unavailable due to being out of stock
Third, products identified as duplicates
consolidated into a single product and thus inactive
Finally, non-compliant deactivation status
applies to items inactive due to missing chemical information, safety certifications, etc.
Regular deactivation includes: First, long-term unsettled items
with no settlement activity for over 12 months based on the final settlement month
Second, one-time items
such as made-to-order products or intangible services that can only be ordered once
Thus, there are six main types of deactivation
After processing items as inactive, there are cases where reuse is necessary
The reuse process is as follows
First, if reuse is required, verify the type
For discontinued items, stock shortages, unclear reasons, or long-term unpaid cases,
the respective responsible party can request reuse, and the purchase manager can process the reuse immediately
For duplicate items, after the request is made, the purchase manager approves it,
and finally, the DB management team enables reuse processing
For non-reusable items, after the reuse request is made,
the purchasing analysis team approves it, and then it can be used
For non-reusable items, since there are items that should not be shipped out,
the approval process is considered more stringent
Note that for one-time use items, reactivation is not possible.
Next is temporary out-of-stock status
Regardless of the reason for deactivation, if an item is temporarily unavailable,
you can utilize the temporary out-of-stock function to disable orders
This prevents ordering errors and order rejections,
reduces processing LT, and minimizes customer inconvenience
The temporary out-of-stock period is automatically set for one month from the request date
and can be extended a maximum of two times
When the purchase manager submits a temporary out-of-stock request,
it is completed through approval by the team leader and responsible manager,
followed by agreement between order management team leader and the central purchasing planning manager
If the temporary out-of-stock period ends within the set time frame,
a temporary out-of-stock release request can be submitted to lift the status
Following product information, we will now explain purchasing information
Unlike product information, purchasing information
refers to the set of data defined for acquiring the product
Purchasing information can be broadly divided into price information and non-price information
First, within price information, adjustments can be made to the product price, validity period, currency, and condition
The product price can be increased or decreased,
and the condition can be adjusted to flexibly utilize it for discounted sales or
premium sales during specific periods
However, since increasing the product price affects performance metrics,
approval from the team leader and the responsible officer is required
Additionally, through managing the validity period of price information
activities are conducted to renegotiate items
with prices agreed upon for a specific period
Requests for a one-year extension of the validity period are processed automatically,
though separate request could be made for special cases
Information beyond pricing includes MOQs and delivery LTs
MOQ adjustments enable purchasing activities,
while adjusting LTs allows querying items from partners with delivery strengths
Additionally, adjusting the supply status
can prevent orders from being placed based on specific purchase information
Items with expired validity periods are automatically marked as unavailable,
allowing separate management
Within SMRO, the bulk change menu for purchase information
enables batch modification and management of items
for specific partners or specific key values
To conclude the lecture, let's summarize product information and purchase information
Product information includes the product name, specifications,
manufacturer, order unit, images, and certification details, etc.
Purchase information includes the product price, supplier information, MOQ, and expiration date, etc.
In other words, product information is data specific to the product itself,
while purchase information pertains to acquiring the product through a supplier
Thoroughly managing both product information and purchasing information
is the core responsibility of a purchase manager
This concludes the lecture on product information registration and management prepared for today
If you have any further inquiries, please contact me anytime
I am Jaeon Oh
Thank you