SOP of Supply Chain Samsung

Forms & Records

Samsung Brand Manager/

Start
Extra Qty. Accepted by Brand Manager/ Merchandise Manager/ channel validation

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

Yes

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

Control: One PO One Sales Invoice One GRN. ERP PO is a must. One account for each country (UAE, KSA) If the entire shipment is needed to be transferred to different destination; GRN is booked (no custom clearance) and legalized Sales Intercompany invoice is issued. (In case of partial shipment see notes page 3-4

No Partial release (clearance) of any Invoice

In same day create GRN with following requirements as ref:

No

Warehouse

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

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 #1: PO match Sales Invoice

Case #2: Invoice is less than PO

Samsung Sales invoice, with full / partial PO no. as reference

Immediate return Goods Returned Advice (GRA) for extra Qty. (by Warehouse) + Inform Supplier/ Finance with returned stock manner (by Logistics Import Export Team)

Case #3: Invoice is more - or SKU different than PO

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.Os.

Finance/ Treasury

With Credit limits of 25 days - Payment proceeds.

Notes

SOP of Supply Chain Samsung (Imported)

Forms & Records
Samsung Brand Manager/ CFM/ Logistic manager

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

Inventory informed

Follow up with Supplier to get feedback on claim (damaged stock) CFM /B.M/ Logistic MG

Control: One PO One Sales Invoice One GRN. ERP PO is a must. One separated account for each country (UAE, KSA). 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.

Logistics team: Immediately when occurs; Damage On same day of stock received GRN with both PO & Sales invoice no. GRN should be raised with received quantity.
Claim raised to Supplier (form to fill by Logistics). Ref. to SOP Damage Process of Logistics

Warehouse

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.

If YES, inform logistics about method of return

Case #4: Damaged or short Stock on arrival Samsung Sales invoice, with full/ partial PO no. as reference

Accept the damage or short

No

Yes

Finance/ Treasury

Inform Finance with the case. With Credit limits of 25 days - Payment proceeds.

***For damage Stock allocated in ERP in Damage location Deducted the Credit from the invoice

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

Notes

SOP of Supply Chain Samsung (Samsung Jebel Ali Warehouse)

Forms & Records
Samsung Brand Manager/ CFM/ Logistic manager

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

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

Control: One PO One Sales Invoice One GRN. ERP PO is a must. One separated account for each country (UAE, KSA). When the damage is discovered, Logistics should be assure stock condition & locate it in special location (i.e. Damage stock under claim).

Samsung Warehouse

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.

On same day of stock received GRN with both PO & Sales invoice no. GRN should be raised with received quantity. Axiom Warehouse

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

Samsung

Sales invoice, with full/ partial PO no. as reference

Finance/ Treasury

With Credit limits of 25 days - Payment proceeds.

SOP of Supply Chain Samsung Points of Control

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 about stock split.

Responsibility

Time Frame/Reports

Confirmation note
96 hours before any clearance

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

Inventory prepare PO per country per region

72 hours before clearance

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)

Logistics confirm total stock availability & condition at custom or duty free

48 hours before clearance.

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 Samsungs 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.

Warehouse creates Virtual GRN in interorganization location

Same day of clearance

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 POs 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

Export Logistic issues inter-organization invoices for other country per region matching POs,+ prepares necessary documents.

Same day of clearance after virtual GRN creation.

Country Logistics will

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

issues stock transfer voucher for the stock remaining for their own use against custom clearance & physical stock received.

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.

AP Team to re-concile GRN & documents.

Same day & report discrepancies to Logistic Manager/ CFM Print stock repost= zero & sign the same with Warehouse, & Logistic Managers on daily basis

Confirms Interorganization stock = zero

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