SOP For Consignment Customers

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Routine Operations

Proper and neat filing is a MUST to all Consignment customers.  All inventory activities must have to keep in the paper files and record in NetSuite.

1. After the delivery is made, do the inventory transfer in Netsuite.  

From Location : warehouse (e.g. : Taiun HK)

To Location : consignee location (e.g. : BTB)

2. Every Month before 7th, customer is required to submit their sales report of last month for our billing.  Create invoice as normal but the location should select CONSGN- \[Customer’s name].  Print 2 sets of invoice with sales report, 1 keep in consignment paper file and the other set keep in A/C.
3. Once received the signed DNs returned from the warehouse, it must have to keep in the related consignment paper file.
4. Any return items, it is required to be returned back to local office for quality check to ensure all returned products are in sellable condition.  Any price tag found, please remove carefully.  Do not damage the packaging.  If any damage/discrepancy found, please report to the customer immediately.
5. Once the return item & quantity is confirmed, input the inventory transfer in Netsuite to deduct stock from the consignee location.

From Location : consignee Location (e.g. : BTB)

To Location : Office/warehouse (e.g. : Office-HK/Taiun HK)

Class : Return

6. If any returned product is damaged, please check with sales team which party is responsible for the damage.  The damage will be brone by consignee for small customers.  Invoice will be issued to the customer to claim the damage.  If the loss is covered by B\&G, collect back the damage item, do the inventory transfer in Netsuite to deduct stock from the consignee location.  Prepare the QC form to report the damage to supplier for claim.

From Location : consignee Location (e.g. : BTB)

To Location : Office (e.g. : Office-HK)

Class : Damage

7. Consignee is responsible to keep all B\&G consignment products are in good condition and store properly.  Any lost is found upon the year-end physical stock take at the financial year end, consignee have to bear the lost and B\&G will issue invoice to consignee to claim all the lost.  For any corporate consignment a/c which the lost is borne by B\&G, the discrepancy allowance should be within 3% of the total annual sales turnover of the consignee a/c of the year.

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Stock Take Procedures

A stock audit location list will be provided by Operations team to Sales team to plan the stock take schedule with their consignment customers after the latest sales report is billed.

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Processes for stock take:

1. B\&G counting team are responsible for the stock take activities and to ensure 100% stock take is done.
2. B\&G GFC or GOM assigns one of the staff member in counting team as the controller for the stock take.

The counting team is provided with the Physical Inventory Worksheet per locations for counting.
The team responsible for counting the stocks in a sub-location available within a particular location need to sign the start sheet and proceed for counting and the counting must be 100% completed in 1 day.
This process is followed if the stocks are physically counted on the shop floor, consignee’s store area, storeroom & warehouse.  Direction for counting or scanning of stocks during stock take is “TOP-TO-BOTTOM AND LEFT-TO-RIGHT”.  This direction of counting the stocks needs to be followed religiously.  This activity needs to be done with utmost care and with full concentration. The entire team responsible for stock take need to get the activity done very religiously.
Once the locations is counted completely, B\&G counting team and consignee’s store manager need to sign the physical count figures on the Physical Inventory Worksheet and write the stock take date for confirmation and record.
Any discrepancy found during this activity is brought to the notice of the controller and the auditor (if any) who then rectifies the same in the counting sheet. Ones this activity also is completed and the controller confirms the same through the control sheet he/she announces the completion of the stock take process at the front end level.
If the discrepancy is found to be in a big way the entire stock take may be repeated subject to the decision of GFC. Small discrepancies found are re-looked at and if the errors are found the same is mentioned in the investigation report and handed over to the GFC for further comments.
All the counted and physical inventory worksheet are tally with the system stocks.  B\&G notes all the discrepancies and submit the final closing stock balance report and do the alternate inventory adjustment in Netsuite approved by GFC.