sop of supply chain -samsung

SOP of Supply Chain – Samsung

Forms & Records

Notes

Samsung Brand

Manager/ Merchandise

Manager

Warehouse

Finance/ Treasury

• Control: One PO – One Sales Invoice – One GRN.

• ERP PO is a must.

Samsung

Create PO on system (i.e. Channel/ Country & as region in KSA). PO should be valid for specific period of time as per supplier

Case #1: PO match Sales Invoice

In same day – create GRN with following requirements as ref:

1. Purchase Order # 2. Supplier Invoice # 3. AWB # (not required in system but for filing is a must)

Case #2: Invoice is less than PO

In same day; GRN with both PO & Sales invoice

No. GRN raised with received Qty. & close the

PO **

Automatic – in the same day - Back Order created in ERP

(Ref. previous PO No. should be shown)

Case #3: Invoice is more - or SKU -

different than PO

Create (Adjust) PO - or master data if required- on system with different Qty. To match the Sales Invoice.(max within 24 Hrs)

With Credit limits of 25 days - Payment

proceeds.

If the entire shipment is needed to be transferred to different destination; GRN is booked (no custom clearance) and legalized Sales Inter- company invoice is issued. (In case of partial shipment see notes page 3-4

Extra Qty. Accepted by Brand Manager/

Merchandise Manager/ channel validation

Sales invoice, with full

/ partial PO no. as reference

Yes

Immediate return Goods Returned Advice

(GRA) for extra Qty. (by Warehouse) + Inform Supplier/

Finance with returned stock manner (by Logistics – Import

Export Team)

No

• One account for each country (UAE, KSA)

No Partial release (clearance) of any Invoice

Start

See Case # 4 on next page…

• Statement sent from Treasury to confirm that invoices have been received (Payment will be released even with no confirmation.)

• Weekly Basis: 2 Reports (Axiom Finance + Samsung report) sent for inventory to follow outstanding P.O’s.

SOP of Supply Chain – Samsung (Imported)

Forms & Records

Samsung Brand

Manager/ CFM/

Logistic manager

Warehouse

Finance/ Treasury



Samsung

Notes

Case #4: Damaged or short Stock on arrival

On same day of stock received

GRN with both PO & Sales invoice no. GRN should be

raised with received quantity.

Logistics team: Immediately when occurs; Damage Claim raised to Supplier (form to fill by Logistics). Ref. to SOP Damage Process of Logistics

To keep the damaged stock in a specially located area, and To follow up the same for sending back (or as per decision). Prepare Credit Note Request.


proceeds.

Sales invoice, with full/

partial PO no. as reference

• One separated account for each country (UAE, KSA).

Start

• If Supplier refuses the claim, damaged stock to be shifted to damaged stock location (damaged area) & system adjusted accordingly **.

Yes

Deducted the Credit from the invoice

Follow up with Supplier to get feedback on claim

(damaged stock) CFM /B.M/ Logistic MG

Inform Finance with

the case.

Accept the damage or short

Inventory informed

No


If ‘YES’, inform

logistics about method of

return

***For damage Stock allocated in ERP in Damage location

• When the damage is discovered, Logistics should be assure stock condition & locate it in special location (i.e. Damage stock under claim).

• The decision might range between keep the damage stock at Warehouse or send it back to supplier.

SOP of Supply Chain – Samsung (Samsung Jebel Ali Warehouse)

Forms & Records

Samsung

Finance/ Treasury


proceeds.

Samsung Brand

Manager/ CFM/

Logistic manager

Samsung Warehouse



Axiom Warehouse

On same day of stock received GRN with both PO & Sales invoice no. GRN should

be raised with received quantity.

• One separated account for each country (UAE, KSA).

Start

• When the damage is discovered, Logistics should be assure stock condition & locate it in special location (i.e. Damage stock under claim).

In case invoice has been modified / adjusted; Inventory should be informed to adjust

PO accordingly


Logistics team: At Samsung warehouse, count & verify stock as per LPO. In case of any difference or damage

a) Stock to be replaced & adjusted. b) Invoice to be modified

Once check is complete take stock to Axiom warehouse.

No claim (shortage/ damage) will be accepted by Samsung, once shipment left Jebel Ali warehouse and handover to Logistics.

Sales invoice, with full/

partial PO no. as reference

SOP of Supply Chain – Samsung

Points of Control Responsibility Time Frame/Reports 1. Virtual GRN with partial shipment to inter-company (different country): (original PO for the supplier should

be available)

Agreement on how the stock will be split should be done before the virtual GRN is done – by Merchandise Planner.

Merchandise Planner informs inventory to prepare related PO (local) and to inform Logistics, who will confirm the stock arrangement process.

Prior to move any stock from customs; logistics confirm that all physical stock do mach supplier invoice to avoid delivery shortage from supplier (confirmation note should be documented)

Virtual GRN is prepared by the country which named in supplier invoice; regardless of where physical stock is existing (i.e. KSA will prepare virtual GRN in their books if Samsung’s invoice is in their behalf and even the physical stock in Dubai). Virtual GRN raised in inter organization location KSA with TOTAL quantity matching supplier invoice.

Once the GRN is done; invoice/s (number of invoices that should be issued as PO – split - per country/region) from the inter-organization location “inter company invoice” will be issued by logistics according to the agreed split done by Merchandise Planner & PO created for the same by Inventory Department.

Invoice/s issued for the other country needs (matching PO’s done per country per region agreed initially) (where the inter-company sender will be mentioned as supplier) “PO should be already available in system per country/ region prior to any movement of the stock. The remaining stock will be moved via ‘stock transfer voucher’ out of virtual location to channels

Merchandise Planner informs inventory about

stock split.

Inventory prepare PO per country per region

Logistics confirm total stock availability &

condition at custom or duty free

Warehouse creates Virtual GRN in inter- organization location

Export Logistic issues inter-organization invoices for other country per region matching PO’s,+

prepares necessary documents.

Country Logistics will

Confirmation note

96 hours before any clearance

72 hours before clearance

48 hours before clearance.

Same day of clearance

Same day of clearance after virtual GRN

creation.

locations for the own use of country (country which addressed in supplier’s invoice) as per custom documentations and confirmation of stock clearance & physical receipt.

Inter-company invoice will be as per supplier original cost & not as per WAC in system ( since we are issuing the invoice from inter-organization location no WAC impact will be effected - since all stock received will be issued - so stock will be zero & WAC will be zero, then any new GRN will have the new cost as WAC).

AP Team should reconcile the virtual GRN with the supplier invoice. Furthermore, reconcile new GRN

against local inter-company invoice, & confirm that the stock in Inter-organization location has been zeroed up against the other country inter-company invoice.

issues stock transfer voucher for the stock

remaining for their own use against custom

clearance & physical stock received.

AP Team to re-concile GRN & documents.

Confirms Inter-organization stock =

zero

Same day & report discrepancies to

Logistic Manager/ CFM

Print stock repost= zero

& sign the same with Warehouse, & Logistic

Managers on daily basis

2. Treasury to pay the invoice as per supplier statement, the full payment will be booked in the company which the supplier invoice was issued against (to avoid a reconciliation issues with the supplier). Inter-company entry will be passed to reverse the payment per country as per physical stock received.

Treasury pays supplier & recharge the country as per supplier invoice.

With the credit term

benefit

sop of supply chain -samsung

Documents