U.S.Foods Ltd.

Sales Policy

In an attempt to organize ourselves, have a structured selling pattern and a professional approach, we are framing a sales policy which will not only provide business guideline to the people who are working in the organization but it will also help our business associates to understand the company, terms of trade & our business ethics in a better way.

We would be aiming to have three types of sales.

Local Sales ( Traditional Trade )

Institutional Sales ( Modern Trade, CSD, Railway )

Export Sales

1. Local Sales :

Entire sales operation will be through a distribution network of Super Stockiest / CSA, Distributors, Retailers & Consumers. The stock flow chart is attached.

Company will have their sales team consisting of Vice President, General Manager, Sales Manager, Regional Sales Manager, Area Sales Manager, Sales Officer and TSI to represent the company in the market for product placement, visibility and service. Hierarchy chart, roles and responsibilities of each category of sales person, their travel policy, daily sales report and monthly reporting papers are attached.

First movement of stock will be from factory to super stockiest / CSA which will be called as stock transfer. Company policy for SS / CSA, Company profile form for SS & the business agreement between the company and the SS / CSA are given separately in the attached sheets.

Second stage of stock movement would be from SS / CSA to Distributor. It will be called as primary sales. Company policy for distributor & company profile form for distributors are attached separately.

Third movement of stock will be from Distributor to Retailer. It will be called as secondary sales. Sales team will work in tandem with distributor in their assigned territory to get the best coverage, placement and visibility of company product. Distributor profile form & Beat plan format are attached.

Fourth and final stage of stock movement will be from Retailer to consumer which will be known as treasury sales.

SS will be appointed in confidence with the CMD or the Director.

Company will provide a fixed recommended price list and margin for each & every stage of sales at which all business associates like SS / CSA, Distributor, Retailer & Sales team are bound to sell.

Company offers a fixed margin of 6% to SS / CSA & 7% to Distributor. Retailer margin however varies from product to product & pack to pack.

While appointing a new SS proper survey of the market should be done. The qualified party should be from FMCG business having a minimum turn over of Rs. 25 lac P.M.

An additional margin of 3% will be provided to the SS as marketing expense for having TSI of their own.

Company will conduct a periodic review of the SS regarding their performance, investment and coverage etc.

Any extra schemes, incentives, budgets, PS has to come in the form of written approval from HO Gajraula, in the absence of which no claim is valid.

In U.P. company will provide the stocks to SS tax paid FOR. Stocks outside U.P. will be transferred FOR against F – form with required road permits.

2. Institutional Sales :

Currently we are not into institutional sales. 

3. Export Sales :

We are not into export sales.

Roles & Responsibilities of SO / TSI

TSI or SO represent the company in the market. They interact with the business associate of the company like SS, AD & Retailers on day to day basis they brief about the product, quality, price, publicity & service to the trade. They are the face of the company. A company is a strong as their front line is. Their role is to execute and implement the strategies framed by the management to achieve the corporate goals. Any strategy how good it may be is not successful if it is not executed well. In nutshell TSI & SO are the business drivers.

In light of the above we are laying down certain working guidelines for TSI / SO to help them think, act, work and behave in the manner in which the management wants them to.

We are sure it will create a sense of job responsibility in them, they will understand their role well & it will take them to the next level of growth.

1.    Reach Distributor point at 09:30 am sharp.

2.    Wear a dark trouser, light shirt, matching shocks with trousers, neck tie and black or brown shoes. Ensure daily shaving, short combed hair, nails cut & cleanliness.

3.    Take physical stock of distributor visited. Mention it on the DSR.

4.    Start retailing before 10:00 am everyday.

5.    Make 50 sales calls per day with two new outlets and minimum 60% productivity.

6.    Every TSI should do a minimum retailing of Rs 4 lac P.M. and every SO Rs 6 lac P.M.

7.    Divide the assigned monthly target to daily basis. Report to area in charge after completing the market. Achieve sales target in totality, Distributor wise, product wise, pack wise.

8.    Announce company’s authorized prices and schemes to distributors & retailers.

9.    Replaced damage, expiry and broken stock from retailer shelf. Make distributor claim, submit it to SS. If a beyond limit replacement is found bring it to the notice of company in writing.

10. Follow PJP authorized by area in charge. Inform any deviation to area in charge & company in advance.

11. Ensure timely & full supply to retailer from distributor.

12. Give market / product / competitor / consumer complaint and other relevant feed back to the area in charge and HO.

13. Ensure proper use of POP and maintain its record.

14. Collect timely payment of SS from AD and maintain 15 days stock level.

15. Make DSR in the market, get it signed & stamped from the distributors; send a copy to company daily and keep a copy with you.

16. Do mapping of your area like Towns, Population, Beats, Routes, Outlets, Classification, Present coverage & Target coverage.

17. Take no claim certificate from distributor on monthly basis.

18. Submit travel bills with proper supporting & meeting papers in the sales meet every month.

Keep a file of the last 30 days DSR with you always. Keep one file at the AD for invoices, Pricelist, Schemes, Targets & Circulars.

Penalty clause for SO / TSI

In the absence of the following criteria, TSI / SO is liable to be penalized in the form of Salary or TA – DA deduction, Transfer, Demotion or even sacking.

1.    Fake charging of TA – DA bills.

2.    Leave without permission.

3.    Bunk from the job.

4.    Not reporting to area in charge daily.

5.    Not sending the DSR signed & stamped by distributor every week.

6.    Change in tour program without prior permission.

7.    Not sending the attendance by 26^th of every month.

8.    Not submitting the TA – DA bills in the monthly sales meet.

9.    Not submitting the meeting papers.

10. Not reporting any change in the corresponding address.

Non achieving of targets for three months.

Company Policy for Super Stockist / Consignee Sales Agent

1. Super Stockist / Consignee Sales Agent will duly fill the company form; provide all the information & supporting along with their letter of interest to the company.
2. Super Stockiest / Consignee Sales Agent after appointment will sign the agreement with the company in which the terms & conditions of business are mentioned clearly.
3. SS / CSA will send the pack wise order to HO at Gajraula along with advance payment in the form of advance Draft, RTGS or multicity cheque.
4. HO will dispatch the order with in 3 working days from the date of receipt of payment.
5. Goods are FOR destination to SS / CSA point.
6. SS / CSA will bear the unloading expenses.
7. It is the prime duty of SS / CSA to keep the stock on the wooden racks in a neat & clean RCC godown with proper stacking & strictly follow the first come first out rule.
8. No claim of damage, broken or expiry will be entertained apart from the fixed 0.5% mentioned in the agreement.
9. SS / CSA as a rule should hold at least 15 days stock inventory.
10. SS / CSA can only appoint or cancel any distributor with the consent of the ASM giving appropriate reasons to the HO in writing.
11. SS / CSA will work in their allocated area only.
12. SS / CSA will provide all the information as & when required by the company like:

·   stock statement with PKD,

·   SS to AD billing,

·  AD payment status,

·  AD details with profile forms & competitor activity on weekly   basis. Failing which the company shall not be responsible for any timely liquidity issues.

13. SS / CSA shall on his own buy insurance policy for the stocks lying in their godown and in transit insurance from SS to AD.
14. SS / CSA will provide C – Form on quarterly basis. Failing which the company will debit his account for differential tax amount or any other penalty at the time of assessment of sale tax for the period.
15. SS / CSA should send his account statement on monthly basis for re-conciliation of accounts to company HO(Hard copy) furthermore  a soft copy can be mailed at accounthead@usfoodsltd.com.
16. In order to dispatch the goods on time the SS / CSA will provide the road permit two days in prior to the dispatch schedule. The company will not be responsible for delays arising due to unavailability of road permit. (Where applicable)
17. All price lists/Schemes will be sent from head office via registered post for any changes in prices. No other verbal intimation should be taken into account until the receipt of written intimation.
18. Minimum time period for scheme related issues will be one year.
19. The company is not responsible for claims/account settlements beyond the time period of one year.

·   Which means all claims /account settlements/all pending issues should be notified in written on super stockiest letter head and with rubber stamp to the company.

20. It is advised that the SS / CSA should take care of his dealings in cash/credit at his own risk. The company will not be responsible for any recovery/adjustments etc.
21. The SS / CSA should take a security cheque (PDC) in case of giving credit in the market to safeguard his interest.
22. CSA should submit secondary scheme claim if any with proper supporting before the 10^th of every month for the previous month. Company will provide a credit note of the same with in the next 20 days.
23. SS / CSA will dispatch the goods to the distributor through their own vehicle or hired full tempo load. Dispatch through transport is not allowed.
24. SS / CSA can not work as a distributor or an AD cannot be appointed as SS however as a special case it can be done with a written permission from the HO.
25. SS / CSA will prepare the account of distributors & the same will be reconciled with the AD on quarterly basis with written information to the company.
26. SS / CSA have to supply the distributor orders with in 3 days from the receipt of the order.
27. Any requirement of empty CBB, Tape roll or poly bags will be debited to the SS / CSA.
28. SS / CSA will Keep a track record of all the POP material, advertising material, gift items, Dealer boards and company stationary supplied to you. It can be checked at any time.
29. Issue scheme / damage credit note to the AD with in 7 days from the date of receipt of credit note from the company. Submit the photocopy of credit note along with order detail to the company also.
30. Do not give any cash to the sales staff. Company will not be responsible for any cash dealing with the sales staff.
31. SS / CSA are advised not to do any cash transaction either with the company or with the AD.
32. No verbal claims, budgets, schemes, or commitments by any sales person will be entertained.
33. Submit a duly signed & stamped no due certificate to the company every month that no credit note related to replacement of AD is pending.
34. Follow all the sales & marketing policies circulated to you from time to time by the HO through registered post.
35. Give a consistent growth of 10% every month from your area.
36. Appoint distributors in all the available towns, increase coverage, market share and the shelf space of company’s products in your assigned area.
37. We consider our SS / CSA as our business associate / Partner they should continuously look to increase their business & achieve company’s objectives in their respective area.
38. Any problem arising during the course of business in the continuation of the SS / CSA the company is liable for the liquidity of goods which have a period of three months to the date of expiry.
39. SS / CSA should intimate the HO in written form for the liquidity/ transfer the stock lying at his point.

In case of any complaint, problem or negligence in service please contact the customer care number given on every pack, which is 059242 340-360

Company Policy for Retailer

1. Retailer will get the stock from Distributor tax paid FOR destination.
2. Distributor / Distributor salesman will visit the retailer’s shop at least once in a week as per their prefixed beat plan.
3. Supply of goods will be either ready stock or with in 48 hours from the time of booking.
4. Fix the payment & business terms with your distributor in advance to avoid any complication at a later stage.
5. Keep a minute of 15 days stock inventory with you to avoid stock out situation.
6. Retailer margin varies from product to product & pack to pack.
7. Retailers are advised to sell the stock on MRP; however they can sell it below the MRP also.
8. Keep the stock in a dry place away from soaps, detergents, spices & sanitary items.
9. Display the product at a visible shelf in your shop to attract the consumer.
10. Protect the stock from getting dirty, torn, broken, damage, or expired.
11. Follow the first come first out policy.
12. Put POP material properly in your shop. It will increase the product demand.
13. Do not accept any stock which is dirty, torn, expired or damaged from your distributor.
14. Replace the damage / expiry stock from your distributor on monthly basis.
15. Inform your distributor immediately of any sample picking by PFA department or any other complicacy related to government compliance.
16. Do not give any puffed, expired, damage, broken or damp stock to consumer as it will spoil the image of the product, company & your shop as well.
17. Handle the consumer complaints & queries properly.
18. In case of any complaint, problem or negligence in service please contact the customer care number given on every pack

Which is 059242- 034036.