Guidelines & Policies For Business With Authorized Marketing Associates
Given below are the broad guidelines, which will govern the business between ‘Euro Diagnostic Systems Pvt. Ltd.’ and all of its ‘Authorized Marketing Associates’ (AMA).
AUTHORIZED MARKETING ASSOCIATE (AMA)
Euro Diagnostic Systems Pvt. Ltd. (hereafter called the ‘Company’) will appoint Authorized Marketing Associates (AMA’s) at various cities and towns all through out the nation to market its products.
An AMA will not be responsible only for stocking and distributing the Company products but will also play an important role in Sales Promotion and Marketing. The AMA will function in very close coordination with the Company’s Marketing Team at the Head Office and the Sales Team (Business Development Team) in the field.
The AMA will be an integral part of the Marketing Network of the Company and will play the desired role in successful implementation of the Marketing Strategies and Policies of the Company.
Every AMA will have a territory of operation, jointly agreed by the AMA and the Company.
The territory will be defined in terms of towns and cities.
The AMA is supposed to operate within the assigned territory and is not supposed to sell the Company’s products to an end-user or to a middleman outside the assigned territory without written permission from the Head Office of the Company.
In case of a city having more than one AMA, the territory will be common for all the AMA’s. The territory will not be further split in terms of localities, customers etc.
The territory for an AMA will not be changed or reduced unless it is mutually agreed for. However, if the Company gets convinced about a need to change or reduce the territory of an AMA, then the same will be implemented in consultation with the AMA.
TRADE DISCOUNTS AND SCHEMES & DISCOUNTS
All products of the Company will have the ‘Maximum Retail Price’ (M.R.P) in Rupees printed on the box. The taxes (C.S.T + V.A.T), will be inclusive of M.R.P printed on the product. Octroi and other levies will be applicable, if extra.
It will be the responsibility of the AMA to recover the taxes and the other levies from the end-users.
An AMA will be eligible for a ‘Trade Discount’ of 10% on the prevailing M.R.P.
The price of the product after the Trade Discount will be called as Trade Price.
An AMA will have a legitimate right on the Trade Discount. The AMA is expected to take care of all the operational expenses out of the Trade Discount offered.
The Company will also offer Schemes and Discounts to the AMA for passing these on further to the end-users. The AMA is expected to pass on the total schemes and discounts to the end-users to make the prices of the products competitive and to increase the sale of the products.
If found necessary and appropriate, the AMA is expected to use the Schemes and Discounts to undertake Marketing and Sales Promotional activities, as per the requirement of the circumstances, for increasing the sale of the Company’s products.
The member of the Business Development Team (B.D.T) are at a liberty to book orders from customers at discounted prices, after offering the benefit of Schemes and Discounts to the customers.
TARGETS & ACHIEVEMENTS OF TARGETS
Authorized Marketing Associate (AMA) of the Company is expected not only to stock and sell the products of the Company but is expected to play an important and active role in Sales Promotion and Marketing the products of the Company.
AMA will take up a target for every financial year, which will be further broken down into Cycle targets (2 months). Target – Discount Schemes or Target – Incentive Schemes will be announced from time-to-time for achievement of Cycle Targets.
The Cycle Target in terms of rupee value will be the target for purchases from the Company. The aggregate value of the invoices raised (before taxes) during the target period will be considered to calculate the achievement of the target. The credit notes raised for any reason other than for achieving the target will be subtracted from the aggregate purchases, while calculating the achievement of the target.
If any AMA achieves less than 70% of the target for the Cycle or achieves less than 80% of the cumulative target for three consecutive Cycles then the Company reserves the right to terminate the contract with the AMA or to appoint an additional AMA in the same town / city to safe guard the business interest of the company. There is no need to serve a separate notice in this regard.
The Target-Discount or Target-Incentive will be released to the eligible AMA immediately after the outstanding for the invoices raised during the Target Period are cleared by the AMA.
The orders of an AMA not executed due to Stop-Supply resulting out of any default of the policy of the Company or not executed due to any other reason will not be considered as a justification for non-achievement of the targets.
CREDIT – PERIOD AND CREDIT LIMIT
All AMA’s must have a security deposit (minimum of Rs.50, 000/-) with the Company. The AMA will be eligible for a credit on the supplies made, as a consideration for the Security Deposit given by the AMA to the Company.
The credit limit for the supplies will be 3 times of the security deposit lying with the Company. An interest will be provided @ 9% per annum in the form of credit note at the end of the financial year. The rate of interest on security deposit will be declared at the beginning of every financial year.
The Company will offer a credit of 40 days from the date of Invoice. In other words, the date of the Demand Draft should be within 40 days from the date of Invoice. The payment should be made in the form of DD or ‘At Par’ Cheque only, favoring EURO DIAGNOSTIC SYSTEMS PVT. LTD. Payable at Chennai. (The payment should be settled invoice vise).
The payment to the company for the invoices can be handed over to the company’s Business Development Team (BDT) by way of DD or ‘At Par’ Cheque. NO CASH transaction will be allowed. The Company will not be responsible for any cash transactions between AMA and BDT.
Any invoice for which the full payment has not been physically received at the Head Office till the 45th day from the date of Invoice will be considered as Over-Due outstanding. No further invoices will be raised and no further supplies will be made to the AMA having overdue outstanding i.e. having any invoice for which full payment has not been physically received at the Head Office till the 45th day from the date of invoice.
Based on the deposit of the AMA with the Company, a Credit-Limit will be assigned to the AMA. At any point of time, the Company will allow the total outstanding of the AMA to go only up to the assigned Credit-Limit. In other words the Company will not allow the total outstanding of the AMA to cross the assigned Credit-Limit.
On the other hand, even though the balance Credit-Limit is available with the AMA, no invoice will be raised and no supply will be made to any AMA having an Over-Due outstanding.
AMA’s should login to www.eurodiagnostics.in get registered by yourself through the register key.
Then you can click the order button, it will ask for user name and password, once you enter the user name and password you can enter your order by selecting the products and entering the quantities.
Once you select all the products and enter the quantities required you can click on submit button, the order will come to us and you will also receive a copy of the order placed by you in your registered email id.
The minimum value of the order is expected to be Rs.5000/-
PROCESSING OF ORDER
The order, once received by email will be processed and executed within 48 hours and the consignment will be sent through a reliable courier.
The order will be processed if and only if there is no overdue outstanding and if the balance credit-limit is available to raise the invoice.
The order received with the unauthorized (not officially announced by the Company in writing) schemes or discounts will not be processed. Only the orders sent as per the official and valid schemes or discounts will be accepted for processing.
The order will be kept unexecuted in case of –
- Overdue outstanding
- Non-availability of balance Credit-Limit
- Non-availability of the products
- The value of the order is less than Rs.5000/-
- Non-receipt of the Road-Permit (if required) along with the order
If any pending issues / pending claims and pending credit notes lying with the AMA (irrespective of any reason) will not be considered while executing the order.
EXPIRY OF THE PRODUCTS
The following steps will be taken by the Company to minimize expiry of the products on the shelf of the AMA –
- Supplies will be made as and when required by the AMA, even on a daily basis, provide the minimum order value of Rs.5000/-
- Supplies will be strictly made as per the orders placed by the AMA and only against a written confirmed order received from the AMA by email.
- Product availability list with expiry will be provided every month.
- The balance shelf-life of the products at the time of supply will be a minimum of six months.
- A written consent will be taken from the AMA before supplying products with less than six months balance shelf-life.
It goes without saying, if the correct & complete information is provided in writing to the Company at H.O. and also to the members of the Business Development Team then all possible steps will be taken and necessary support will be extended to minimize the loss to the AMA out of expiry / near expiry.
The products of the Company will perform up to the satisfaction of the end-users provided the products are stored at and used as specified on the Box and in the Product Insert.
The Company guarantees the performance of the products.
The company agrees to replace the kit, if it does not perform up to the satisfaction of the end user, in-spite of storing and using as stipulated in the product insert.
Such product complaints related to the performance of the products will be handled by the Company’s Business Development Team. However, the AMA is expected to play his role, as per the need of the circumstances.
The complaint kits along with the necessary complaint letter collected from the end-user and the recommendation of the Company’s Business Development Team are to be sent back by the AMA to the Company. The Company will take responsibility to compensate the AMA by issuing a Credit Note for the complaint kits returned, along with the necessary supporting.
No credit note will be issued if the kits reach us without the duly signed ‘material return claim form’ by the local Business Development Team member and complaint letter from the customer.
LEAKAGE, BREAKAGE, DAMAGE OF CONSIGNMENT
The Company will take full responsibility for delivering its products in good condition to the AMA.
The AMA is expected to intimate any leakage or breakage or damage in the consignment. The complaint in this regard should be sent through the fastest possible mode like fax, email or courier.
The necessary action will be taken by the Company in this regard on receipt of required information in the prescribed format duly endorsed by the member of the Company’s Business Development Team.
The Company will not take any responsibility for leakage or breakage or damage claims if the written intimation is not received within seven days from the date of receipt of the consignment. It will be the sole responsibility of the AMA to ensure that the intimation about the claim is received by the Company H.O. within seven days from the date of receipt of the consignment.
The AMA will be provided a summary for the financial transactions on a monthly basis, in the form of an Account Statement.
The AMA is expected to revert back within seven days if any errors or discrepancies are observed in the statement. If no feed back is received from the AMA within seven days from the date of receipt of the statement then it will be considered that the statement is acceptable to the AMA.
The Account Statement for half yearly business and the Account Statement for annual business are to be signed by the AMA and sent back to the Company as a confirmation of acceptance of the statement.
TENDER & INSTITUTIONAL BUSINESS
The AMA is expected to quote the products in Private, Government and Semi-Government Institutions on behalf of the Company.
The authority letter and all other relevant documents as required will be provided by the H.O. of the Company on request.
If special rates are offered by the H.O. of the Company to the AMA for the business from a particular institution then the price benefit will be extended only if the necessary documentary evidences are provided to substantiate the claim.
If the AMA enters into a rate contract with an institution at Special Prices without the written consent and approval from the H.O. of the Company then it will not be the responsibility of the Company to compensate the AMA for the rate difference.
No member of the Business Development Team will have the authority to offer special rates, schemes and discounts over and above the ones communicated by H.O. officially. And also, no AMA or Business Development Team member will be authorized to give samples from the stock without prior written permission from H.O. In the above case, no claims will be entertained.
PERIOD OF CONTRACT
The AMA will have a contract with the Company in the form of a appointment letter. The appointment letter will be issued at the time of appointment of the AMA.
The validity of the appointment letter will be till the end of the financial year.
At the beginning of every new financial year, a new appointment letter will be sent to the AMA to renew the contract.
Either the Company or the AMA is at a liberty to terminate the contract by giving 30 days notice in writing to the other party without assigning any reason.
The terms and conditions in the appointment letter will be a binding on both, the Company and the AMA. Either the Company or the AMA reserves the right to terminate the contract by giving 15 days notice to the other party for its violation of the terms and conditions of the appointment letter.
All suits or other legal proceedings arising out of or in connection with the contract between the Company and the AMA shall be decided by the courts situated at Chennai alone and no other courts shall have jurisdiction to adjudicate upon any such matter.
for Euro Diagnostic Systems Pvt. Ltd.