Receiving of RMA Inventory

The S2G transition team typically develops procedures with its client to meet any specific requirements. These also encompass any specific testing requirements. At a minimum, computer inspections include cosmetic details, physical, electrical, functional, revision and quality inspection criteria. Monitor/LCD inspections include the computer inspection criteria in addition to geometric and color requirements.

S2G maintains state-of-the-art electronic test equipment such as AC Leakage Testers for consumer safety tests, oscilloscopes, DVM's, color analyzers, convergence gauges, and programmable video sources to handle the wide variation in today's computer markets. This equipment is integrated into a procedure specifically designed for the product[s] being received and tested.

Inventory Management

S2G maintains a real-time inventory management system in relational databases running on fault tolerant, multi-processor IBM BladeCenter servers. Products are cycled on a FIFO Perpetual basis, while cycle counts are conducted at client specific intervals to maintain inventory integrity -- LIFO or average costing methods may also be used at the client's request. COPC requirements for audited processes are strictly adhered to at all times.

Reporting

During implementation of a new program, S2G's transition team profiles all incoming part numbers and integrates them into the inventory management system -- all incoming part numbers are assigned unique bin locations. The transition team then identifies the critical reporting matrix needed to track and maintain established performance goals. Finally, S2G builds the reporting structure required for the specific program.

Parts Planning and Replenishment

When S2G is responsible for parts planning and replenishment it first applies internal forecasting models to historical data provided by the client. Estimated demand rates (short and long-term) are then created and compared with the clients forecasting. Starting inventory balances are then set. Mutually agreed to auto reordering points are also set for each part. The reorder process is either through the client or, if previously agreed to, direct to the parts manufacturers.

Returns to Vendor

S2G's current procedures for component level returns require all ESD sensitive materials to be repackaged in static resistant bags; put into client supplied shipping containers, and held in a MRB location until requested by client. All non-ESD sensitive materials are packaged in accordance to client specific procedures. All return product is assigned a unique bin location separate from all finished good inventories.

With respect to the Client, S2G will create an MRB report on a timeline established by the Client that will contain the product being returned and the reason for the return. This MRB report will contain all relevant information defined by the Client and the S2G transaction team to ensure a thoughtful transfer of inventory from S2G to the Client facilities. In the case of S2G's call center creating the RMA, all case information, time between each segment of the process (e.g. date RMA created, date product received, date product shipped), and all other key metrics are tracked within a single case ID.

Disposal of Scrap Material

Since its inception S2G has dealt with the management and disposal of scrap material ranging from discarded shipping containers, reclamation of metals, to toxic lead in CRT's. S2G insures that all local, state and federal environmental regulations are followed in accordance to the most current requirements mandated by each governing agency monitoring the handling, storage and disposal of scrap material. To help remain in compliance, S2G deals exclusively with established EPA certified vendors when selling and disposing of scrap materials.

S2G currently shares revenues derived from the sale of scrap material belonging to specific clients.

Direct Support of Distributors, VARs and Corporate Customers

S2G has extensive experience supporting distributors, VARs, and corporate customers. It supported Hitachi Lap Tops and Enterprise Servers for many years in various premium service programs. It has also provided out-of-warranty technical support and warranty and out-of-warranty repairs for these products. Warranty and out-of- warranty replacement support is currently provided for D&M's Rio and ReplayTV DVR installed customer base worldwide. S2G also supports the Philips branded TiVo DVR players for North America.