SOP of Supply Chain – Samsung

Forms & Records

Create (Adjust) PO - or • Control: One PO –
Samsung Start One Sales Invoice –
master data if required-
Brand Extra Qty. Accepted by One GRN.
Create PO on system (i.e. Brand Manager/
on system with different
Manager/ Channel/ Country & as region in Qty. To match the Sales • ERP PO is a must.
Merchandise KSA). PO should be valid for Merchandise Manager/
Yes channel validation Invoice.(max within 24 Hrs) • One account for each
Manager specific period of time as per supplier
country (UAE, KSA)

No Partial release (clearance) of any Invoice If the entire shipment is

In same day – create GRN with
following requirements as ref:
1. Purchase Order #
Warehouse 2. Supplier Invoice #
3. AWB # (not required in system but
for filing is a must)
No needed to be transferred to
Automatic – in the same day - different destination; GRN
In same day; GRN with Back Order created in ERP is booked (no custom
(Ref. previous PO No. should clearance) and legalized
both PO & Sales invoice
No. GRN raised with be shown) Sales Inter- company
invoice is issued. (In case
received Qty. & close the
of partial shipment see
PO ** notes page 3-4

Immediate return
Case #1: PO match Case #2: Invoice is Goods Returned Advice Case #3: Invoice is
Sales Invoice less than PO (GRA) for extra Qty. more - or SKU -
(by Warehouse) + different than PO
Inform Supplier/
Samsung Finance with returned
Sales invoice, with full stock manner (by
/ partial PO no. as Logistics – Import
reference Export Team)

See Case # 4 on next page…

• Statement sent from
Treasury to confirm that
invoices have been
With Credit limits of received (Payment will be
25 days - Payment released even with no
Finance/ proceeds. confirmation.)
Treasury • Weekly Basis: 2 Reports
(Axiom Finance +
Samsung report) sent
for inventory to follow
outstanding P.O’s.

Notes
 SOP of Supply Chain – Samsung (Imported)

Forms & Records

• Control: One PO –
Samsung Start Follow up with Supplier One Sales Invoice –
Brand Inventory to get feedback on claim One GRN.
Create PO on system (i.e. informed (damaged stock)
Manager/ Channel/ Country & as region in • ERP PO is a must.
CFM/ CFM /B.M/ Logistic MG • One separated account
KSA). PO should be valid for
Logistic specific period of time as per supplier for each country
manager (UAE, KSA).

• When the damage is

Logistics team: Immediately when occurs; Damage discovered, Logistics
On same day of stock received Claim raised to Supplier (form to fill by Logistics). Ref. should be assure stock
GRN with both PO & Sales to SOP Damage Process of Logistics If ‘YES’, condition & locate it in
invoice no. GRN should be ¾ To keep the damaged stock in a specially located inform special location (i.e.
Warehouse raised with received quantity. area, and logistics about Damage stock under
¾ To follow up the same for sending back (or as method of claim).
per decision). return • The decision might range
¾ Prepare Credit Note Request. between keep the damage
stock at Warehouse or
send it back to supplier.

Case #4:
Damaged or short
Stock on arrival Accept the
damage or short

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

• If Supplier refuses the

Inform ***For damage Stock allocated claim, damaged stock to
Finance with be shifted to damaged
in ERP in Damage location
Finance/ the case. stock location (damaged
Treasury With Credit limits of area) & system adjusted
accordingly **.
25 days - Payment Deducted the Credit
proceeds. from the invoice

Notes
 SOP of Supply Chain – Samsung (Samsung Jebel Ali Warehouse)

Forms & Records

• Control: One PO –
Samsung Start In case invoice has been One Sales Invoice –
Brand modified / adjusted; Inventory One GRN.
Create PO on system (i.e. should be informed to adjust
Manager/ Channel/ Country & as region in • ERP PO is a must.
CFM/ PO accordingly • One separated account
KSA). PO should be valid for
Logistic specific period of time as per supplier for each country
manager (UAE, KSA).

• When the damage is

Logistics team: At Samsung warehouse, count & discovered, Logistics
verify stock as per LPO. should be assure stock
In case of any difference or damage condition & locate it in
a) Stock to be replaced & adjusted. special location (i.e.
Samsung Damage stock under
Warehouse b) Invoice to be modified
claim).
Once check is complete take stock to Axiom
warehouse.

No claim (shortage/
damage) will be accepted
On same day of stock received GRN with
both PO & Sales invoice no. GRN should
by Samsung, once
be raised with received quantity. shipment left Jebel Ali
Axiom warehouse and handover
Warehouse to Logistics.

Sales invoice, with full/

Samsung partial PO no. as
reference

With Credit limits of

Finance/
25 days - Payment
Treasury
proceeds.
 SOP of Supply Chain – Samsung

Points of Control Responsibility Time Frame/Reports

1. Virtual GRN with partial shipment to inter-company (different country): (original PO for the supplier should
be available)

¾ Agreement on how the stock will be split should be done before the virtual GRN is done – by Merchandise Merchandise Planner Confirmation note
informs inventory about 96 hours before any
Planner.
stock split. clearance

¾ Merchandise Planner informs inventory to prepare related PO (local) and to inform Logistics, who will Inventory prepare PO
per country per region 72 hours before
confirm the stock arrangement process.
clearance

Logistics confirm total

¾ Prior to move any stock from customs; logistics confirm that all physical stock do mach supplier invoice to stock availability & 48 hours before
avoid delivery shortage from supplier (confirmation note should be documented) condition at custom or clearance.
duty free

¾ Virtual GRN is prepared by the country which named in supplier invoice; regardless of where physical Warehouse creates Same day of
stock is existing (i.e. KSA will prepare virtual GRN in their books if Samsung’s invoice is in their behalf Virtual GRN in inter- clearance
and even the physical stock in Dubai). Virtual GRN raised in inter organization location KSA with organization location
TOTAL quantity matching supplier invoice.

¾ Once the GRN is done; invoice/s (number of invoices that should be issued as PO – split - per Export Logistic issues
country/region) from the inter-organization location “inter company invoice” will be issued by logistics inter-organization Same day of clearance
according to the agreed split done by Merchandise Planner & PO created for the same by Inventory invoices for other after virtual GRN
country per region creation.
Department.
matching PO’s,+
prepares necessary
Invoice/s issued for the other country needs (matching PO’s done per country per region agreed initially)
documents.
(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 Country Logistics will
 locations for the own use of country (country which addressed in supplier’s invoice) as per custom issues stock transfer
documentations and confirmation of stock clearance & physical receipt. voucher for the stock
remaining for their own
use against custom
clearance & physical
stock received.

Same day & report

¾ Inter-company invoice will be as per supplier original cost & not as per WAC in system ( since we are discrepancies to
issuing the invoice from inter-organization location no WAC impact will be effected - since all stock AP Team to re-concile Logistic Manager/
received will be issued - so stock will be zero & WAC will be zero, then any new GRN will have the new GRN & documents. CFM
cost as WAC).
Print stock repost= zero
& sign the same with
¾ AP Team should reconcile the virtual GRN with the supplier invoice. Furthermore, reconcile new GRN
Confirms Inter- Warehouse, & Logistic
against local inter-company invoice, & confirm that the stock in Inter-organization location has been organization stock = Managers on daily
zeroed up against the other country inter-company invoice. zero basis

2. Treasury to pay the invoice as per supplier statement, the full payment will be booked in the company which Treasury pays supplier With the credit term
the supplier invoice was issued against (to avoid a reconciliation issues with the supplier). & recharge the country benefit
Inter-company entry will be passed to reverse the payment per country as per physical stock received. as per supplier invoice.