QUALITY POLICY

Section: Merchandise and Trading Page No. 1 of 7

Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

REVISION HISTORY

Page No. Details DRN No.

N.A. Initial Issuance 2021-081

Prepared by: Reviewed by: Approved by:

Margarita D. Faral Hon. Rico B. Geron Dr. Angelito B. Bagui

AVP for Reach Chief Executive Officer Chairperson of the Board
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Section: Merchandise and Trading Page No. 2 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

I. Objective:
The policies stated herewith is set and being implemented to inform all
SIDC’s retailing employees on the proper compliance of duties, employee
responsibilities, accountability and liabilities.

II. Scope:

This policy covers all SIDC’s retailing employees. All SIDC’s retailing
employees shall understand all policies indicated herein.

III. Definition of terms:

1. Discipline Management - Discipline implies the absence of chaos,

irregularity and confusion in the behaviour of a worker. According to
Calhoon, ‘Discipline is a force that prompts individuals or groups to
observe rules, regulations and procedures which are deemed to be
necessary for the effective functioning of an organization.

2. Damage - physical harm caused to something in such a way as to impair its

value, usefulness, or normal function.

3. Materiality of Damage - this is to measure the penalty to be imposed for a

single offense an employee committed.

4. Disciplinary Action - A disciplinary action is a reprimand or corrective

action in response to employee misconduct, rule violation, or poor
performance. Depending on the severity of the case, a disciplinary
action can take different forms, including: verbal warning, written warning,
poor performance review or evaluation.

5. Cleansing Period - pertains to the time when an employee who has. been
subjected to disciplinary action is expected to improve his/ her
performance and/or correct improper behavior, and to refrain from
committing any other infraction.

6. Spoilage - the action of spoiling, especially the deterioration of food and

perishable goods.
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Section: Merchandise and Trading Page No. 3 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

7. Expired - An expiration date or expiry date is a previously determined date

after which something should no longer be used, either by operation of
law or by exceeding the anticipated shelf life for perishable goods.

8. Bad Order (B.O) Policy - the policy of each supplier which indicates the
coverage of items qualified for return and its guidelines.

9. Inventory Variances - means the difference between the value of

the inventory as determined from the perpetual inventory report on any
Count Date and the value of the inventory established by a cycle count or
physical inventory on the date the inventory was received by Accretive
Commerce or the previous Count Date.

10. Inventory Adjustments - refers to adjustment entries made in periodic

accounting to account for differences between recorded and
actual inventory items.

11. Negligence - Negligence describes a situation in which a person acts in a

careless (or "negligent") manner, which results in someone else getting
hurt or property being damaged.

12. Theft - the act of stealing; the wrongful taking and carrying away of the
personal goods or property of another; larceny.

13. Out of Stock - products that are out of stock are not available to buy in
a store because they have all been sold.

14. Must-Have Items - products that should always be available at the store.

List of Must-Have Items:

1. Agri food products

2. Agri non-food products
3. Housewares
4. Appliances
5. RTW
6. Garments
7. Hardware (basic)
8. Meat
9. Layer Cage (IOM no. 8.Ss.2021.M&T)
10. Ramgo Seeds (IOM no. 6.Ss.2021.M&T)
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Section: Merchandise and Trading Page No. 4 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

15. Properties - an object or objects, a building or area of land, or both

together that belongs to the Cooperative.

IV. Discipline Management:

Good discipline means that employees are willing to abide by the cooperative
rules and executive orders and behave in the desired fashion.

Listed below are the set of guidelines that should be implemented once proven.
The implementation of the policies indicated herein follows a certain procedure and due
process. All documented disciplinary action shall be retained in the employee’s 201 file.
(Source: Employee Handbook and Code of Ethics)

Note:

Only with exception on other items or categories that allow for tolerable shrinkage and
deterioration, such as:

 Meat
 Rice
 Feeds
 Vegetable and Fruits
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Section: Merchandise and Trading Page No. 5 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

 QUALITY POLICY
Section: Merchandise and Trading Page No. 6 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

 QUALITY POLICY
Section: Merchandise and Trading Page No. 7 of 7
Department
Document No. SIDC-REACH-QPolicy-M&T-004

Revision No.: 00 Date: July 2021

DOCUMENT TITLE DISCIPLINE MANAGEMENT FOR OPERATION EFFICIENCY

Approved per BOD Resolution No. 74A-S-2021