Parts Strategy. TSS will maintain an inventory of high usage parts for the machines identified in Exhibit A; Eligible Product List, within the TSS distribution network. Parts will be assigned a TSS part number and Used parts Return (UPR) identification for those parts that will be returned to the network for disposal or repair. Low usage parts not included in the standard inventory will be obtained, as required, to meet the response/repair times and will be shipped to a site designated by the CSR. TSS will return failing parts to the distribution network. TSS will be responsible for the logistics of all spare parts. Replaced parts supplied by TSS become the property of TSS or its designee. TSS assumes risk of loss for damage of parts supplied by ATS Money Systems while in the possession or control of TSS. TSS will provide the part(s) necessary to complete a service call for hardware service. TSS, in conjunction with ATS Money Systems, will develop a recommended spare parts list and quantities for the stocking program for ATS Money Systems accounts. * Parts identified for the TSS stocking program will be assigned a TSS part number and will be available through the TSS parts distribution system. * Parts which are not stocked by TSS will be purchased through national buy and will be express shipped by the next business day.
Parts Strategy. QMS will provide to IBM all necessary service parts and FRU's to maintain the Products listed in exhibit A, the Eligible Product List. IBM will return used parts and report usage on a monthly basis back to QMS. QMS is responsible for all transportation costs to get parts to IBM's Central Distribution Center. IBM is responsible for transportation costs to move parts within IBM's distribution network. IBM will purchase parts from QMS, QMS will process a credit to IBM for all parts returned to their facility. IBM will provide monthly reports identifying the inexpensive parts, that are not to be returned to QMS, but were used in providing the services under this Agreement and QMS will credit IBM for the cost of these parts. QMS will conduct periodic audits to ensure the validity of IBM's reported parts usage. IBM intends to purchase parts for QMS currently marketed products for the 1st two years after warranty expiration. IBM further intends to provide 1st right of refusal, to QMS for parts purchases after the initial two year period. The initial purchase of QMS parts inventory is to be determined by the parties. Warranty parts for the products to be provided to IBM, by QMS, while the product is under QMS warranty. IBM and QMS are currently studying the "Consignment of Maintenance Parts" option and will be jointly decided. Parts processes will be more fully defined in the Product Support Services SOW, which is attached to this Agreement. QMS Responsibilities . Provide IBM all necessary parts and FRU's in sufficient quantity, based on the installed inventory of products and the projected parts usage, as agreed upon between the parties, for the maintenance service of printers listed in exhibit A Eligible Product List . Provide parts in a timely fashion . Provide all part numbers and description of service parts, FRU's and CRU's . Provide MSDS documentation for all applicable parts . Identify by part number UPR (used part return) status . Provide failure analysis cards if applicable . Provide distributor parts pricing IBM Responsibilities . Parts are more fully detailed in the attached SOW - Product Support Services . The IBM CE will follow IBM standard parts handling procedures . Report Warranty parts usage to QMS on a monthly basis, including IBM and QMS part numbers, customer name, address and date of usage, quantity, cost, model number and serial number
