Steps 1 and 2 simply create an appropriate directory location on the UNIX-based NMS host. You can do this in any way suitable for your environment, but just take care that access to the NMS host that you are providing for use by the JUNOS devices cannot be abused by unauthorized users who can somehow get their details on the shared credentials.
In step 3, we tell the JUNOS router the details about the upload site. The specific details of the upload destination are captured separately like this so that they can be referenced by many different triggered event policies. The format of the destination string is quite specific. It is as follows:
protocol can be either SCP or FTP, ...