Owner

U

Untitled

U

Untitled

Verification

Verified

Department

Portfolio Managers

Type

Standard Procedure

Use Cases

Purchasing

SOP Overview

Include an overview here.

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Terminology

Table of Contents

• Step-By-Step Instructions
• Procedure for Wholesale to Wholesale Transfer of Stock
• Vendor/Supplier is moving on and requires transfer of stock to another wholesaler
• Procedure for Return to Vendor/Supplier

Documentation and Resources

Add/Upload Documentation and resources related to this SOP

TEW ACH Details.pdf150.2KB

Break up Letter 5-9-23 v2.doc46.0KB

Step-By-Step Instructions

Inventory Turns less than 1: Consider cutting ties with Brand

1. Meet with Direct Supervisors and CFO to review Inventory Turns to determine separation
2. Separation approved: -complete and send break up letter to vendor/supplier and notify all staff and affiliates of separation plan.
3. When timing is set, items should be marked discontinued or close out depending on the situation. should be reviewed case by case
4. Follow steps below based on type of transfer
5. Customer depletion report sent to vendor/supplier upon break up (Case by Case, requires Exec approval)
6. Determine bargaining with supplier decision to leave

Procedure for Wholesale to Wholesale Transfer of Stock

Vendor/Supplier is moving on and requires transfer of stock to another wholesaler

1. Review how much inventory is in stock in Business Central and Western Carriers Warehouse to make sure its accurate
2. Confirm with compliance the state to which we are transferring product to and request from producer the new wholesaler federal permit and address for COLA authorization. Releases and COLA authorizations will not be provided until payment has been received in full.
3. Inquire with Compliance and Accounting about pricing. NYS has wholesale to wholesale pricing that is posted with the state and is not the same as our avg cost. Some states have price posting regulations that will dictate pricing and timing.
4. Request the Ship to, Bill to and Freight forwarder information from wholesaler to provide to the credit department for customer card set up
5. Once credit confirms card set up, send orders team the items, qtys and pricing and let them know that the order is not to be released without confirmation of payment from our Credit or Accounting dept. **Make sure Accounting, Credit and Compliance are on this email communication.
6. Send the wholesaler the invoice and our ACH details and inform them once payment is received we will release the order.
7. Once Credit or Accounting confirms receiving the ACH or check, notify compliance to send the release letters they require.

Procedure for Return to Vendor/Supplier

1. Review how much inventory is in stock in Business Central and Western Carriers Warehouse to make sure its accurate
2. Reach out to compliance to discuss return and releases. Some states have price posting regulations that will dictate pricing and timing. Releases and COLA authorizations will not be provided until payment is received.
3. Inquire with Accounting:

a. If purchases were paid in full, vendor will have to wire payment to TEW before release.

b. If purchases were not paid, credit must be issued to clear the payable. Accounting to handle any differences required.

4. Purchasing will create the purchase credit memo and send a copy to Vendor, Accounting and PM
5. Once Accounting clears for release, Purchasing will send to Western Carriers to pick and stage for freight forwarder sent by vendor

This standard procedure outlines the process for vendor separation in the Purchasing department. The procedure includes steps for cutting ties with a brand, transferring stock to another wholesaler, and returning stock to the vendor/supplier. The process involves reviewing inventory turns, obtaining necessary compliance and accounting approvals, and notifying staff and affiliates of the separation plan.

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