[ A HANDBOOK ON FMCG SALES ] Other Market Activation(Similar Formats as above) The claims are to be prepared by the SO on the final day of his journey cycle and along with supporting to be submitted to the ASM for verification. The ASM carries all the claims to HO on the monthly meeting date and hands over to accounts for processing. 4.2.5. Damage and Expiry Policy Different companies have different policies for damaged and expired products. However, in the light of a highly competitive market, most companies are forced to be market friendly with respect to it. Food Products in particular are dealt with cautiously by manufacturers. Normally most companies take back any products which have a clear manufacturing defect. The retailers and distributors are compensated fully for such goods. However, in case of transit damage or any other minor damage, the company personnel provide credit notes to the distributors who in turn provide the same to retailer. This is normally subject to a limit and power of authority (POA). For new products which do not sell and expire on the shelves normally reputed companies take back all the unsold stocks and compensate the trade. Some companies give an in-built commission to the distributors to take care of damaged and expired products. Proper processes at distributor point and the market place ensure that there are no damaged or expired stocks in the market. 4.2.6. Order Generation Process As discussed in the DMSSR para, the order of the distributor will depend on the SKU wise closing stock and the secondary sale for the previous period. It will also depend on seasonality, special inputs and competition scenario. Typically, the order should be such that the distributor always has the agreed number of days of stock. For example, in the CFA or SS town it can be 7 days and in an up country town it can be 15 days. It will also depend on the frequency of supplies to the distributor point. The below format illustrates the order process 29
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