An India Commercial Distribution Operations SOP Manual

Abbott – Abbott Commercial
Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

Document Type: Manual Approved Date: 18-Jun-2021
Title: CWH/CFA Operations Manual
CWH/CFA
OPERATIONS
MANUAL
Abbott Nutrition
Version 6, Approved
Control Site: AC - AN Asia and Pacific Page 1 of 42
This information is confidential to Abbott. The user is responsible for using the appropriate version of this document.

1.0 TABLE OF CONTENTS
1.0 Table of Contents
2.0 Purpose
3.0 Scope
4.0 Roles & Responsibilities
5.0 Process Flow
6.0 Process
6.1 STATUTORY REQUIREMENTS
6.2 CUSTOMER INTERACTION
6.3 RECEIPT OF STOCK
6.4 STORAGE & HANDLING OF STOCK
6.5 INVENTORY MANAGEMENT
6.6 ORDER SERVICING
6.7 PICKLIST & INVOICING
6.8 DISPATCH OF CONSIGNMENT
6.9 MANAGEMENT OF COLLECTION AND BANKING
6.10 HANDLING OF RETURNED STOCK
6.11 CREDIT NOTES
6.12 DISPOSAL OF DAMAGED AND EXPIRED STOCK
6.13 TRANSFER OF STOCK TO OTHER CFAs
6.14 INSURANCE
6.15 TAXATION
6.16 RECORDS AND REPORTS MANAGEMENT
6.17 MEASURES TO PREVENT CONTINGENCIES
6.18 WAREHOUSE AND INFRASTRUCTURE
7.0 DEFINITIONS / ABBREVIATIONS
8.0 REFERENCE DOCUMENTS
Version 6, Approved

2.0 Purpose
This manual elaborates the Distribution Operations, Procedures and Policies of ANI. While preparing
‘the Manual, present mix and scale of operations has been considered. If the Business
Activities/Policies/Procedures undergo any changes, then that section of the manual will be amended.
This should be read and implemented in a true spirit keeping in view the Company's Image, Customer
Service, Prevailing Market conditions and Cost of Operations.
3.0 Scope
This manual is applicable to AN India Business Supply Chain.
Primary Distribution
Finished goods are dispatched from Central Warehouse to CFAs or between CFAs for further
distribution. Distribution of finished goods is made as per Stock Transfer Order given by Distribution
department.
Secondary Distribution
Stock is invoiced by CWH/CFAs to Customers basis their order for further distribution to Retailers /
Institutions.
4.0 Roles & Responsibilities:
Roles & responsibilities of CFA/CWH are:
Proper receipt of stock from CWH, CFAs and Imports
SKU-wise Batch-wise stacking of stock.
Dispatch of stock to Customers as per invoice and banking of cheques, or demand drafts and posting
of collection entries for NEFT/RTGS/NACH.
Stock control as per guidance of Distribution department.
Dispatch of samples as per instruction of Distribution department.
Maintenance of statutory records
Undertake other activities as may be warranted and advised by Distribution department.
5. Process Flow : N/A
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6. Process:
6.1 STATUTORY REQUIREMENTS
6.1.1. FSSAI License & Trade License/Gram Panchayat NOC (wherever applicable).
6.1.1.1. CHW/CFA should ensure that valid license is always displayed in the Warehouse.
6.1.1.2. CHW/CFA should ensure that renewal application is submitted to the authorities before the
expiry date. Intimation is required to be given to Manager Distribution/RLM for providing Documents
needed for renewal.
6.1.1.3. CWH/CFA should submit a copy of the acknowledged application to Manager

Distribution/RLM.
6.1.1.4. Since license renewal could be time consuming process, CWH/CFA to keep Manager
Distribution/RLM updated on the status on a monthly basis, until the renewal is granted by the
authorities.
6.1.1.5. Once the License is renewed, CWH/CFA should intimate Manager Distribution/RLM and send
a copy of the renewed license and display the renewed license in the premises.
6.1.2. GST Certificate & Fire Safety License (wherever applicable).
6.1.2.1. CWH/CFA should ensure that GST certificate is always displayed in the Warehouse.
6.1.3 Compliance on Labour Laws
6.1.3.1 CWH/CFA should be compliant on all labour laws such as PF Act, ESI Act, CLRA (wherever
applicable), Minimum Wages Act, Bonus Act, Gratuity Act (wherever applicable), Maternity Act
(wherever applicable), Payment of Wages Act, etc. which may be applicable from time to time.
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6.2 CUSTOMER INTERACTION
6.2.1. Mails from Customers should be attended and replied within the timeline desired or within
one working day (if no timeline is mentioned).
6.2.2. If due to any reason, desired response is not possible within the timeline specified; CFA should
inform the concerned person well in time & request or communicate timeline by which information
can be made available.
6.2.3. Copy of all communications, sent from CFA should be marked to RLM.
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6.3 RECEIPT OF STOCK
6.3.1. Incoming stock
6.3.1.1. CWH/CFA receives saleable goods, samples and POSM from
6.3.1.1.1. Central Warehouses or the factory or TPMs.
6.3.1.1.2. Other CFAs
6.3.1.1.3. Imports
6.3.1.1.4. Other vendors
6.3.1.2. The CWH/CFA operator should run in-transit report (T-code ZPP03) daily in SAP to check stock
in transit and save it in a folder.
6.3.1.3. In case stock does not reach CWH/CFA within expected delivery day, CFA manager should
Distribution Planning Manager and RLM.
6.3.2. Receipt of Stock
6.3.2.1. Receiving Area
Unloading Docks should be covered to protect stock from weather conditions or other elements that
may have an adverse effect on products during unloading
Unloading Bays/ Staging Areas should be separate from Storage Areas.
6.3.2.2. Receiving of Stock
6.3.2.2.1. Security Guard should note STN / Invoice, LR No, vehicle number, source location and total
quantity received and maintain a record of inward goods.
Security guard needs to further intimate Floor Supervisor for unloading process.
6.3.2.2.2 Floor Supervisor should check documents and match seal/vehicle details. In the event of
difference in seal /vehicle no vs documents, or in case of a broken seal, floor supervisor to report it to
warehouse manager. CWH/CFA should report it to Manager Distribution/RLM and should start
unloading only after getting confirmation over email.
6.3.2.2.3. Post unloading floor supervisor should verify with STN/invoice the correctness of Product
Name, Quantity, Batch No., Expiry Date, MRP and Intactness of packing etc. and tally total number of
shippers / units with quantity mentioned on STN/Invoice and the number noted by Security Guard.
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6.3.2.2.4. The acknowledgement sticker supplied from HO must be affixed at the back of transporter’s
copy and the consignee copy of LR and proper details should be filled in.
6.3.2.2.5. Floor supervisor should sign on STN/Invoice and LR mentioning date of receipt and put AHPL
CFA address stamp.
6.3.2.2.6. If any shipper with tampered packing or outwardly damaged condition is received, then
Floor Supervisor should take open delivery and mention damage / shortage details on
acknowledgement sticker pasted on back of LR (both transporter & consignee copy) and take counter
signature of truck driver. For every instance of in-transit damage / shortage, the CFA should scan both
sides of LR and send the scanned copy to the Manager Distribution. If the total value of damage /
shortage per LR is lesser than Rs 10000, the Manager Distribution should raise a debit note and
recover the loss from the transporter.
6.3.2.2.7. All STNs received should contain full dispatch details i.e. the name of the carrier, Lorry
Receipt or Courier Receipt Number, Date and E-waybill.
6.3.2.2.8. Floor supervisor should return the LR copy to transporter and retain the authorized
STN/Invoice copy, consignee LR copy for internal records, CWH/CFA should upload and attach scan
copy of LR to the respective STN
6.3.2.2.8. Discrepancy in incoming stock
6.3.2.2.8.1. In case of batch or SKU mismatch Floor Supervisor need to make note on STN/ Invoice of
correct batch or SKU details and inform CWH/CFA Manager to intimate Manager Distribution & RLM.
Batch adjustment entries in SAP need to be done only after approval from Manager
Distribution/RLM. SKU mismatch correction will be done by Manager Distribution and further
communicated to CWH/CFA.
6.3.2.2.8.2. After verification, damaged stock (if any) should be physically moved to Damage Room
and kept in identified area – “TRANSIT DAMAGE” and blocked in FG06 location in SAP. Scrapping in
SAP will be posted by Manager Distribution post raising Debit Note to transporter. In case of damages
received in Import shipments, scrapping entries shall be posted without debiting transporter.
6.3.2.2.8.3. If only shipper is damaged or if some of the BIB/BIJ are damaged, then floor supervisor
should get good stock segregated and transfer the stock to a separate shipper. Floor supervisor should
then mention Product name, Batch number on loose case and seal with Abbott re-packing tape. Also
“Loose Quantity” should be marked on top of the shipper. Multiple SKUs/Batch Nos. should not be
stored in the same shipper / pallets.
6.3.2.2.8.4. For recovery of loss due to damage / pilferage / shortage in excess of Rs 10000, CFA should
lodge a claim with insurance company. Please refer Chapter on Insurance for details.
6.3.2.2.9. Receipt of Part consignment due to road accident /theft
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6.3.2.2.9.1. CFA should ask transporter to produce FIR / GD copy, Notice of Loss and Certificate of Fact.
For Insurance claims, please refer Chapter on Insurance for details.
6.3.2.2.9.2. Floor Supervisor should check part consignment and take acceptable products as saleable
stock.
6.3.2.2.9.3. Floor supervisor should mention details of part consignment on STN/Invoice.
6.3.2.2.9.4. SAP Operator should take full GRN against STN / Invoice in system and then block shortage
/ damage stock in SAP under FG06 location aligning RLM.
6.3.2.2.9.5. Transit damage / shortage for which insurance claim is lodged should be cleared in SAP
only after settlement of claim.
6.3.2.2.10. Non-availability of incoming documents
6.3.2.2.10.1. If transporter does not make any one of the documents available because of loss of
document, then Floor supervisor should inform CWH/ CFA manager.
6.3.2.2.10.2. CWH/CFA manager should inform Manager Distribution through e-mail keeping RLM
in loop. If STN copy is not available, then sending location should also be informed to get duplicate
copy of STN/Invoice. If LR is not available, then duplicate copy of LR should be taken from transporter.
3.2.3. Product Approval Status
6.3.2.3.1. CWH/CFA will receive commercial products which are already approved and released for
sale.
6.3.2.3.2. It is acceptable to receive and/or dispatch products in quarantine/hold under the following
conditions:
6.3.2.3.2.1. Transfer of product is made between Plants and /or Abbott Third Party warehouses, where
appropriate controls are in place to assure that quarantined products will not be dispatched to
customers prior to final release.
6.3.2.3.2.2. There is documented approval from Quality function responsible for both receiving and
shipping locations.
6.3.2.3.2.3. The products are put under ‘restriction’ status in SAP which can be unrestricted only by
authorised access & personnel.
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6.4 STORAGE & HANDLING OF STOCK
6.4.1. The CWH/CFA should display a board in the Warehouse stating that “All stocks stored in
Warehouse belongs to Abbott Healthcare Pvt Ltd”
6.4.2. All shippers should be stored on clean pallets. In case of exigency, where enough pallets are not
available, stocks can be stacked on the ground after putting a water proof tarpaulin or thick plastic
sheet on the floor of the warehouse. Such exceptions require a prior approval from the concerned
RLM on email.
6.4.3. Stock should be stored batch-wise and SKU-wise. Multiple batches shouldn’t be stacked in one
pallet. In exceptional circumstances, when more than one batch is required to be stored on a single
pallet, the CFA should obtain an approval from RLM / Manager Distribution on email.
6.4.4. Shippers should be stacked such that their labels with batch number and other details are always
visible.
6.4.5. Pallets should be stacked at least 18 inches away from wall to prevent absorption of moisture
and for cleaning of warehouse.
6.4.6. The height of each stack should not be more than 8 feet from pallet and or as per the stack
height specification mentioned on shipper, whichever is lower.
6.4.7. At least 3.5 feet wide aisle space should be kept between 2 adjacent storage bins to allow
movement of stock, access to stocks for physical verification and for evacuation of people in case of
emergency.
6.4.8. Passage to the electrical board shouldn't be blocked.
6.4.9. 5S & GWP standards should be maintained in warehouse.
6.4.10. Products received under “HOLD” should be kept restricted in SAP and stored in quarantine/
restricted zone and the pallet should be labelled appropriately.
6.4.11. Any damaged products noticed in warehouse storage area should be withdrawn and moved to
damage room and kept in identified area – “WAREHOUSE DAMAGE”. CWH/CFA manager should be
informed, and equivalent quantities should be blocked under FG10 location. Request for clearing FG10
location should be sent to Manager Distribution/RLM every month.
6.4.12. Expired stock in warehouse should be kept under restricted in SAP and stored in quarantine/
restricted zone and the pallet should be labelled appropriately.
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6.4.2. Storing Arrangement for Unsaleable Stock
6.4.2.1. Sales return pending verification should be kept in pending saleable return zone.
6.4.2.2. Breakage/Expiry pending verification should be kept in Damage Room in identified area –
“MARKET RETURN - PENDING VERIFICATION”
6.4.2.3. Breakage/Expiry duly verified should be kept in Damage Room in identified verified area –
“MARKET RETURN - VERIFIED”
6.4.2.4. The stock in Damage Room should be kept under lock and key with a board of “DAMAGE
ROOM”
6.4.2.5. The stock which has been verified should be sent for destruction only after approval from
Manager Distribution/RLM. For documentation purpose CWH/CFA needs to maintain Manager
Distribution/RLM approval mail, transport LR, POD at destruction facility and Destruction Certificate.
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6.5 INVENTORY MANAGEMENT
6.5.1. Monthly Stock Count
6.5.1.1. Post month-end sales closing, 100% stock count should be carried out at CWH/CFA. Blind stock
count process needs to be followed as per prescribed Format.
6.5.1.2. CWH/CFA office staff should be involved in verification process along with floor staff.
6.5.1.3. If any damage stock is found then it should be segregated. Good stock should then be re-
packed in other shipper and Loose Case & Batch number should be mentioned on it.
6.5.1.4. Damaged stock identified during stock count should be transferred to Damage Room and
transferred to FG10 location in SAP as CWH/CFA damages.
6.5.1.5. After completion of physical count two ways reconciliation process should be followed; i.e.
SAP vs physical count and physical count vs SAP should be done. The final stock count report needs to
be duly signed by the CWH/CFA Manager and should be filed and maintained for record and audit
purpose.
6.5.1.6. In case of Quantity discrepancy, CWH/CFA should cross check whether there has been any
wrong dispatch to Customers or to other CFAs and find the reason for the same. The reason should
be indicated in the report. Manager Distribution/RLM should review the report and send request to
Manager Distribution for passing adjustment entries in SAP
6.5.1.7. Stock discrepancy in terms of shortage post set-off with excess stock (if any; for same pack-
size but different flavour) and damage due to mishandling in warehouse will be recovered from the
CFA.
6.5.2. Inventory Write-off Matrix is given below:
SAP
Entry in Documentation Co-ordination Approving
Type Periodicity Movement Timeline Remarks
SAP by Responsibility Responsibility Authority
Type
551 /555 Manager Manager Director SC &

Expiry Monthly HO Monthly
from FG01 Distribution Distribution/RLM Finance
Free Issues Stock to be
to blocked in
Marketing / 201 from Manager Manager Director SC &
Monthly HO Monthly FG02 and
Other Dept. FG02 Distribution Distribution/RLM Finance
shared post
^ month-end
Quality As and 551 /555 Manager Manager Director SC & Post receiving
HO
Issue when from FG01 Distribution Distribution/RLM Finance approval
Transit Post raising DN & LR
555 from Manager Manager Director SC &
Damage < Monthly HO/RLM DN to Supporting
FG06 Distribution/RLM Distribution/RLM Finance
10 K transporter. needed.
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SAP
Type
As per
Insurance Post
Transit
Claim 922 from Manager Manager Director SC & settlement of
Damage > HO/RLM
settlement FG06 Distribution/RLM Distribution/RLM Finance insurance
10 K
on Monthly claim.
Basis
DN
Warehouse 555 from Manager Manager Director SC & Post raising
Monthly HO/RLM supporting
Damage FG10 Distribution/ RLM Distribution/RLM Finance DN to CFA.
needed
Cost to be
Manager recovered
Stock As and 702 from Manager Director SC &
HO/RLM Distribution / As and when from CWH
correction When FG01 Distribution/RLM Finance
RLM / CFA for
Shortage
^ Prior written approval of Director Supply Chain & Director Finance is needed for conversion of sales pack to sample for making free issues.
6.5.3. Positive Stock Correction, Batch Correction and Material to Material code Transfer Matrix:
SAP
Type
+ve Stock As and When 701 from Manager No Approval As and

HO/RLM CWH/CFA
correction Reported FG01 Distribution/RLM Needed when
Batch As and When 311 from Manager As and

CWH/CFA CWH/CFA CWH/CFA
correction Reported FG01 Distribution/RLM when
Only for
Material non-CO
As and When 309 from As and
to HO/RLM CWH/CFA CWH/CFA Director SC code to CO
Required FG01 when
Material code
conversion
Should be
As an
done only if
exception for
error is
movement of
faced in SAP
stock from
in executing
Plant to one logical 301 from RLM / Manager As and
HO CWH/CFA Director SC STO and
Plant plant to FG01 Distribution when
there is
another
urgent stock
logical plant
requirement
physically co-
in other
located
plant
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6.6 ORDER SERVICING
6.6.1. Receipt of Orders from Customers
6.6.1.1. Order should be on letterhead / email of the customer or placed by a member of sales team
from his/her official email-id. In case the order is placed by a member of sales team from his/her
official email-id on behalf of the distributor, a copy of the email must be marked to the distributor on
his/her registered email-id. As an alternative, select distributors can place order on Abbott Nutrition
Order portal directly. A TSE may also place an order on the portal on behalf of a distributor. For select
Modern Tarde accounts, orders are transmitted to Abbott Sap through EDI
6.6.1.2. All orders received on letterhead should be noted with receiving date and time.
6.6.1.3. CFA must not accept verbal orders.
6.6.1.4. Local orders received by 11 am should be processed on the same day provided the PDP falls
on that day. Local orders received beyond 11 am may be processed on next PDP day except during
month end, unless otherwise approved by RLM. Only in case of Mumbai, Kolkata, Chennai, NCR,
Hyderabad & Bangalore the order should be placed one day before the PDP day before 4 pm.
6.6.1.5. Upcountry orders received by 2 pm should be processed on the same day. Upcountry orders
received beyond 2 pm may be processed on next day / PDP day.
6.6.1.6. If order is not executed within specified norm then CFA should inform ASM and RLM with
reasons thereof. Pending order details with reasons should be shared with the sales team at end of
every day.
6.6.1.7. If order received by CFA is illegible, then computer operator should cross verify order with
customer / sales team.
6.6.1.8. Orders from Modern Trade Direct Accounts, E-Commerce, CSD & CPC should be billed basis
the PO expiry date or appointment date as applicable, after considering the transit time to deliver
goods to the customer
6.6.2. Order entry in System
6.6.2.1. CFA should register the order received on letterhead or on email in SAP immediately on
receipt. Portal & EDI orders get downloaded into SAP periodically.
6.6.2.2. CFA should manually write the sales order number generated by SAP on the order copy.
6.6.3. Confirm availability of cheque for Upcountry
6.6.3.1. The computer operator should check blank cheque availability before registering an order.
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6.6.3.2. If blank cheque is not available then order can be processed, however the goods should be
dispatched only after cheque is received. If the cheque is not received within 2 days of invoicing or
month-end, whichever is earlier, the invoice should be reversed.
6.6.4. Order Delivery
6.6.4.1. On the basis of entry, SAP automatically allocates batch number against material on FEFO
basis and gives delivery number. For MT customers if 70% shelf life is not available and for CSD if 70%
shelf life is not available, delivery should be completed basis confirmation from MT CS or MT Sales
Team.
6.6.4.2. Exception for FEFO violation needs to be approved by Head-Customer Service & Logistics or
Director – Supply Chain. However, RLMs can approve FEFO violation for liquidating loose units.
6.6.4.3. Order will be blocked for Delivery if¬
6.6.4.3.1. Credit Balance of customer is not sufficient.
6.6.4.3.2. Overdue outstanding
6.6.4.3.3. Stock is not available
6.6.4.3.4. Order is for discontinued or restricted products and blocked customers.
6.6.4.3.5. Stock is not available in correct storage location.
6.6.5. Partial Servicing of Order
6.6.5.1. For MT in case stock availability is less than order quantity; CFA manager should seek
telephonic advice from MT CS team / RLM and process order accordingly.
6.6.6. Free Scheme Invoicing for Hospitals
6.6.6.1. Orders to be processed only if approvals and documents are available as per below matrix:
Approval Supporting Documents
Order on Dr. / Nursing DB Order supported by Dr.’s / Nursing Home order

RBM
Home letterhead requesting 20% free goods and POD of previous supply.
Order on ANI order book DB Order supported by Dr.’s order requesting 20% free
NBM
with Seal & Sign of Dr. goods and POD of previous supply.
6.6.6.2. Date on Dr. / Nursing Home order copy should not be prior to 15 days from the date of receipt
of order by CFA. For orders older than 15 days approval from NBM is necessary.
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6.6.6.3. PODs should bear the stamp and sign of the Dr. / Nursing Home who has placed the order.
6.6.6.4. Orders to be processed in SAP only if there is approved / valid “Sold to – Ship to” combination
defined.
6.6.6.5. Orders should be in multiples of cases and inclusive of % free goods (400 gm-26+6; 200 gm-
30+6).
6.6.6.6. Minimum order should be of one case and maximum order cannot exceed five cases per SKU.
If the order exceeds five cases, then approval from NBM for order up to 50 cases/INR 5 lacs and
Director Ethical Sales for order above 50 cases/INR 5 lacs is required.
6.6.6.7. Order copies, approval mails and corresponding PODs to be maintained by the CFA.
6.6.7. Special Pricing / Discount invoicing for Hospitals
6.6.7.1. Orders to be processed only if approvals and documents are available as per below matrix:
Approval Supporting Documents
Order on Hospital / DB Order supported by Hospital / Institute order requesting

RBM
Institute letterhead special pricing / discount and POD of previous supply.
Order on ANI order book
DB Order supported by Hospital / Institute order requesting
with Seal & Sign of NBM
special pricing / discount and POD of previous supply.
Hospital / Institute
6.6.7.2. Date on Hospital / Institute order copy should not be prior to 15 days from the date of receipt
of order by CFA. For orders older than 15 days approval from NBM is necessary.
6.6.7.3. PODs should bear the stamp and sign of the Hospital / Institute who has placed the order.
6.6.7.4. Orders to be processed in SAP only if there is approved/valid “Sold to – Ship to” combination
defined.
6.6.7.5. Order copies, approval mails and corresponding PODs to be maintained by the CFA.
6.6.8. Invoicing for Export Orders
6.6.8.1. CWH should perform code to code transfer to convert domestic SKUs code in to export code
basis instructions receives from Manager Distribution over email. Manager Distribution to ensure such
instruction only after receiving valid PO and confirmation from Finance/commercial team in order to
serve the PO.
6.6.8.2. Post conversion CWH should confirm Manager Distribution and store this product in
designated area.
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6.6.8.3. CWH should ensure each pallet where export SKUs are stored to carry tag as “Export Order”.
6.7 PICKLIST & INVOICING
6.7.1. Pick list
6.7.1.1. The computer operator should hand over copy of pick list to floor supervisor.
6.7.1.2. The picker should verify Batch no., Expiry date, Quantity while picking of product and put a
tick mark against each product in pick list
6.7.1.3. The picker should then keep all shippers in loading bay and put his sign on pick list and then
hand over pick list to floor supervisor / checker.
6.7.1.4. After completing verification, checker should sign on the pick list.
6.7.1.5. Correction in Pick list
6.7.1.5.1. The reasons for the correction in pick list are:
6.7.1.5.2. Broken / Damaged Stock
6.7.1.5.3. Batch mismatch
6.7.1.5.4. Marked Stock
6.7.1.6 In such case the picker should exclude that product and pick other products in Pick list
6.7.1.7 Picker should inform floor supervisor about the status and hand over pick list to floor
supervisor.
6.7.1.8. Floor supervisor should put remark for allocation of another batch on pick list and
forward it to computer operator
6.7.1.9 If allocated batch not available in stores or is found to be in broken/ damaged /

expired condition, then computer operator should check in system and allocate next batch.
6.7.1.10. Once the discrepancy in pick list gets solved, floor supervisor makes the changes in
pick list / pick allocated batch.
6.7.1.11. Such discrepancy should be brought in notice of Manager Distribution /RLM and
necessary adjustment to be done after approval.
6.7.1.12 In case of discrepancy in MRP, Expiry date, manufacturing date and batch number
the operator should inform Manager Distribution /RLM for necessary correction in SAP at
HO and block such stock temporarily.
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6.7.2. Invoicing
6.7.2.1. On receipt of pick list from the floor supervisor, Computer operator should enter delivery no
and should complete post goods issue (PGI) process in SAP.
6.7.2.2. Once PGI is done, invoice must be generated immediately (T-code VF01). For MT Direct
Accounts, invoicing may be done as per the appointment date depending on business needs.
6.7.2.3. For MT Direct Accounts invoicing should be done only after getting delivery appointment from
Customers DC. Delivery appointment date should be prior to PO expiry date. Also, it should be
obtained factoring normal transit time to reach the DC location.
6.7.2.4. Invoice should be signed by authorized person and forwarded to Floor supervisor.
6.7.2.5. Post month-end, CFA should take sales return for any invoice that is not shipped after taking
written approval from RLM.
6.7.3. Export Order
6.7.3.1. Floor Supervisor should paste appropriate sticker (if applicable) for all export order before it
is loaded in the vehicles.
6.7.3.2. Floor Supervisor once stickering activities are completed should confirm to CWH manager for
inspection before loading of the vehicle is started.
6.7.3.3. CWH manager upon being satisfy of stickering, should allow loading of the vehicle.
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6.8 DISPATCH OF CONSIGNMENT
6.8.1. Dispatch of Stock
6.8.1.1. Security Guard should note vehicle no. and maintain a record of outward goods upon receiving
of truck for loading.
Security guard needs to further intimate Floor Supervisor for loading process.
6.8.1.2. Floor Supervisor should inspect vehicle basis vehicle inspection checklist and should start
loading only after vehicle is found in sound condition for loading.
6.8.1.3. Floor supervisor should hand over the stock to transporter / carting agent with Invoice copy
and E-waybill (as applicable).
6.8.1.4. Number of shippers should be checked by security guard before loading in truck. The
CWH/CFA should obtain a LR from the transporter for the quantity received.
6.8.1.5. The stock must be delivered to a place as per the Billing address appearing on the invoice.
6.8.1.6. If a Customer refuses to accept the delivery of goods, an effort should be made through the
field force to speak to the concerned Customer to accept the goods, failing which stock should be
called back to the CFA.
6.8.1.7. Dispatches should be done by Company approved transporters only.
6.8.2. Dispatch to MT Direct Accounts
6.8.2.1. Dispatch should be done as per delivery appointment received from Customer DC. The
appointment should be requested basis Transit Time from CFA and not basis PO Expiry Date. Only
exception would be in case of stock availability issues.
6.8.2.2. Only one appointment request mail should be sent to a store in a day. If multiple POs are
received from a store in a single day all the PO numbers should be incorporated in the same mail. The
cut-off time for sending appointment request mail is 12.00 noon.
6.8.2.3. For appointment mails CFA should mention the following in Mail Subject: Appointment Mail
– Customer Name – Customer Location.
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6.8.2.4. The following template should be used for requesting appointment from Customers.
Store Code
Store Name
PO No.
PO Expiry Date
No of Shippers
Requested Appointment Date
6.8.2.5. While attempting delivery if the appointment schedule cannot be adhered, transporter needs
to update CFA and CFA should get a revised delivery appointment from Customer DC prior to PO Expiry
date.
6.8.2.6. If the PO expiry date needs to be extended, then CFA should raise a request to MT – CS team
keeping RLM in loop.
6.8.3. Dispatch to Local Customers
6.8.3.1. Local Dispatches to be done as per agreed PDP. If a SKU stocked out for 7 days at a stretch
connects the CFA will dispatch the pending order of that SKU without waiting for the PDP day,
provided the pending order is for 5 or more shippers.
6.8.3.2. For Customers who don’t issue advance cheques to CFA, if the transporter does not receive
cheque at the time of delivery then the concerned ASM should be kept informed. The Customer should
ensure that the cheque is delivered at CFA one day prior to due date. Interest should be charged for
any delay in collection.
6.8.4. Dispatch to Upcountry Customers
6.8.4.1. Door delivery should be provided if invoice quantity is 5 shippers or more. Transporter must
provide Proof of Delivery (POD) to CFA.
6.8.4.2. For order size less than 5 cases, the Customer is responsible to pick up the goods from the
transport’s warehouse. In such cases, transporter must provide two copies of LR to CFA
6.8.4.2.1. Consignee copy (Customer copy)
6.8.4.2.2. Consignor copy (CFA copy)
6.8.4.3. For Transport warehouse delivery, CFA should attach consignee copy of LR with relevant
original Invoice and courier it to Customer, so that the Customer can collect goods against
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presentment of LR.
6.8.5. Dispatches Issues - arising due to wrong picking
6.8.5.1. If customer has not received correct stock or received shortage as compared to the invoice:
6.8.5.1.1 Check with concerned transporter and ask for POD.
6.8.5.1.2. Verify physical stock at CFA basis remark on POD.
6.8.5.1.3. If stock is found in excess at CFA, then issue saleable return credit note to the
Customer for short quantity post taking approval from RLM.
6.8.5.1.4. Otherwise CFA should issue a credit note to the Customer for value of short quantity
and inform the RLM to recover the amount from Transporter. If value of shortage is greater
than Rs 10000 then CFA should lodge insurance claim.
6.8.6 Dispatch of POSM to distributors
6.8.6.1. CFA will communicate the details of POSM received to the sales team within one working day.
6.8.6.2. Once sales team issues allocation for the POSM, the CFA will dispatch the same to the
distributors as per allocated quantities with the next FG dispatch. In case the CFA is unable to dispatch
the same, POSM will be sent to the distributor by courier, after getting approval from the RLM.
6.8.6.3. CFA will share a report of POSM dispatched to distributors every fortnight.
6.8.7. Dispatch of FG to CSD & CPC
8.7.1. For dispatches made to CSD & CPC, the CFA will send scanned copy of the invoice and delivery
acknowledgement from CSD / CPC to Trade Finance team and to National Manager – CSD at end of
subsequent month.
6.8.8. Dispatch of FG for Export Order
6.8.8.1. Post verification of vehicle, Floor supervisor should hand over the stock to transporter with
Invoice copy and E-waybill (as applicable).
6.8.8.2. Number of shippers should be checked by security guard before loading in truck. The CWH
should obtain a LR from the transporter for the quantity received.
6.8.8.3. CWH Manager should share scan copy of documents along with driver and vehicle details to
Manager Distribution /CHA.
6.8.8.4. Manager Distribution needs to further intimate to Customer/CHA for clearance and unloading
of truck/s.
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6.9 MANAGEMENT OF COLLECTION AND BANKING
6.9.1. Basic requirement of Cheques
6.9.1.1. CFAs should accept CTS cheque only.
6.9.1.2. Only cheques drawn on the following banks should be accepted.
6.9.1.2.1. Nationalised Banks
6.9.1.2.2. Multi National Bank
6.9.1.2.3. Schedule Coop Bank
6.9.1.3. Trade Customers should maintain pre-signed cheques at CFA and replenish cheques as soon
as cheque inventory reaches 2. Exception for invoicing without pre-signed cheques needs to be
approved by Sales Head & Finance Head.
6.9.2. Record and Custody of cheques and physical verification
6.9.2.1. All cheques should be kept in safe custody. Cheques for each customer should be kept
separately in a partitioned folder.
6.9.2.2. In case the CFA receives blank signed cheques, they should immediately fill up favouring
Abbott Healthcare Pvt. Ltd. and cross the cheques as a/c payee only.
6.9.2.3. CFA shall maintain cheque register as per in prescribed format in MS Excel.
6.9.2.4. Cheque register should be shared on email with Sales Team daily.
6.9.3. Procedure for Deposition of the Cheques
6.9.3.1. Outstation Customer
6.9.3.1.1. Order of outstation should be executed strictly against advance blank cheque only.
6.9.3.1.2. The cheques should be crossed a/c payee, duly signed, undated and in favour of the
company. This should be available with the CFA while executing the order. If blank cheque is
not available, refer to instructions in 6.3.2.
6.9.3.1.3.The amount should be mentioned on cheque only after taking collection so that the
amount factors in open credit and debit notes in the customer ledger.
6.9.3.1.4.In case customer indicate maximum amount of the cheque by mentioning “Not
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Exceeding Rs” on the cheque and if the order value is more than that then CFA should speak
with ASM and rationalize the order accordingly.
6.9.3.1.5. CFA should ensure that cheques are strictly deposited as per the due date in the line
with ZSD70 report. The report should be generated on a daily basis and signed & filed by the
CFA Manager or by Computer Operator (if the Manager is not present).
6.9.3.1.6.Credit period for a Customer may be extended as per approval given by Sales Head
and Finance Head. However, all necessary changes in Customer Master should be done prior
to order registration in SAP by CFA. CFA to bank cheques as per due date in Invoice. If credit
period is extended after order is processed, the RLM should communicate the invoice-wise
amount and revised due date to ANI Trade Finance, who in turn will get the revised due date
updated in SAP.
6.9.3.1.7.A single cheque can be used for all such invoices which are due for deposit on the
same day.
6.9.3.1.8. While taking collection in system, CFA should ensure that Proper cheque number (6
Digit number, including the leading zero, if present) in reference field and invoice number in
assignment field are entered.
6.9.3.3. Local Customer
6.9.3.3.1. For local Pharma Customers cheque should be obtained against delivery if PDC is
not maintained at CFA.
6.9.3.3.2. CFA shall ensure that cheques are strictly deposited as per the due date from date
of invoice. Any change needs to be approved by Trade Finance Manager.
6.9.3.3.3. Credit period for a Customer may be extended as per approval given by Sales Head
and Finance Head. However, all necessary changes in Customer Master should be done prior
to order registration in SAP by CFA. CFA to bank cheques as per due date in Invoice.
6.9.9.3.3.4. While taking collection in system, CFA should ensure that Proper cheque number
(6 Digit number, including the leading zero, if present) in reference field and invoice number
in assignment field are entered.
6.9.5. Banking Procedure
6.9.5.1. Cheques should be deposited in bank on due date.
6.9.5.2. A Bank representative would visit the CFA for collecting the cheques.
6.9.5.3. CFA should ensure that PIS (for collection taken) is generated from SAP only.
6.9.5.4. CFA should check PIS details (generated from SAP) and count the number of cheques and
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amount on cheques before handling them to Bank representative
6.9.5.5. After checking CFA should sign four copies of PIS (generated from SAP)
6.9.5.6. CFA should hand over cheques and 3 copies of Pay in slip (generated from SAP) to Bank
representative.
6.9.5.7. Bank representative should verify correctness of PIS (generated from SAP) in terms of total
amount, total no. of cheques and acknowledge the fourth copy of PIS
6.9.5.8. CFA after the deposition of cheque in account should receive acknowledged copy of PIS from
Bank representative.
6.9.5.9. CFA will receive soft copy of daily bank statement daily from house Bank.
6.9.5.10. CFA will receive daily deposit report through mail from house Bank.
6.9.5.11. CFA will receive monthly deposition report from house Bank.
6.9.5.12. In case of RTGS / NEFT, the HO/regional trade finance team sends confirmation email to CFA
after taking collection.
6.9.5.13. CFA should reconcile cheque deposit on day-to-day basis with the bank statement received
from bank on daily basis through email. Any discrepancy found should be reported to Manager Trade
Finance keeping RLM in loop.
6.9.6 NACH Collection
6.9.6.1. Collection will be auto posted in SAP for DBs on NACH platform.
6.9.6.2. DBs get SMS alert from Bank 2 days prior to due date.
6.9.6.4. CNs/DNs issued post generation of NACH upload file will be considered for adjustment only in
next cycle.
6.9.6.5. If the due date is a bank holiday, amount shall be deducted from DB’s bank account on the
next working day.
6.9.6.6. CFA to maintain 2 blank pre-signed cheques for DBs on NACH as a security.
6.9.7. Cheque & NACH Dishonour
6.9.7.1. CFA should immediately intimate ASM/RM/RLM/Finance Manager by email.
6.9.7.2. Bouncing entry should be posted in SAP immediately on the basis of house bank statement.
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6.9.7.3. CFA should take a confirmation on the nature of bouncing from Trade Finance Manager.
6.9.7.4. In case of technical bounce a new cheque can be banked or customer can make payment by
Draft/RTGS/NEFT. Letter from bank / bank statement of the party is mandatory and the approval to
reinstate the distributor on cheque may be granted by Trade Finance Manager on the merits of the
case.
6.9.7.5. In case of a non-technical bounce, the pending payment should be received through Demand
Draft or pay order or NEFT/RTGS along with late payment fee. The customer credit period / limit is set
to zero in customer master by Customer Master Team basis confirmation from Trade Finance
Manager.
6.9.7.6. All future supplies to such customer should be made only against advance demand draft for
next 3 months. Post that the credit limit / period is changed to original in customer master.
6.9.7.7. CFA shall recover bank charges (Rs. 250 + GST per bouncing for cheque collection and Rs 500
+ GST per bouncing for NACH collection being manually entered in the System) and overdue interest
@ 18% per annum relating to delay in payments (to be calculated from the due date till the time of
recovery of full amount) from customer by means of Debit Note. DN should be charged on cheque /
NACH value and not on invoice value .
6.9.7.8. If the bounced instrument is not received within 3 working days of bouncing, then it should
be highlighted to RLM & CFS credit management team.
6.9.7.9. In case of dishonour of cheque, procedures recommended under the Negotiable Instruments
Act, 1881 should be followed. As per section 138 clause (b) of Negotiable Instruments Act, 1881, a
written notice with a demand for the payment must be made within 15 days of the receipt of
information from the bank regarding return of the cheque. Such notice should be sent to the
distributor only by registered AD / EMS Speed Post.
6.9.7.10. If the payment is not received within 15 days from the date of notice, then the following
documents should be sent to Trade Finance team at HO.
6.9.7.10.1. Dishonoured Cheque
6.9.7.10.2. Cheque returned memos of both the banks
6.9.7.10.3. Registered AD card/ EMS Speed Post Slip sent by CFA
CFA should keep a photocopy of above documents for their record.
6.9.7.11. Complaint shall be filed by HO Finance Team within one month, from date on which the
cause of action arises, as per section 142 (b) of the Negotiable Instruments Act.
6.9.7.12. CFA shall maintain cheque bounce register as per format suggested by RLM and share with
Finance Team as per prescribed frequency.
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6.10 HANDLING OF RETURNED STOCK
6.10.1. The CFA may receive returned stock under the following conditions:
6.10.1.1. Saleable Returns
6.10.1.2. Near Expiry (within 6 months)
6.10.1.3. Damaged / Expired stock
6.10.1.4. Batch / Product recall
Also, since invoice cancellation is not possible in e-invoicing regime, CFAs may have to take stock
return if goods are not shipped. Such saleable returns can be posted after taking approval from
concerned RLM.
6.10.2. Receipt of Saleable Stock:
6.10.2.1 Saleable Returns from customers should be accepted only if prior written approval of RSM is
available. For issuing CN the following approval matrix will be available:
No of days from date of original invoice

Local DB < or = 10 days 11 to 30 days > 30 days
Approver RSM RSM, NSM NSM, Trade Director,
Supply Chain Director,
Finance Director
Upcountry DB < or = 15 days 15 to 30 days > 30 days
Approver RSM RSM, NSM NSM, Trade Director,
Supply Chain Director,
Finance Director
6.10.2.2. In case stock is returned due to CFA error/ transport issue, approval should be taken from
Head- Customer Service & Logistics.
6.10.2.3. For sales return processed prior to good dispatch, approval should be taken from RLM.
6.10.3. Receipt of Breakage/ Expired/ Damaged stock:
6.10.3.1. CFA should receive claim letter/delivery challan along with consignment / LR from Customer.
6.10.2.2. Customer should mention batch no and quantity on claim letter/ delivery challan.
6.10.3.3. All market return damage / expiry stock needs to be weighed at the time of receipt at CFA.
Calibration proof of weighing scale should be approved and stamped by Govt. Agency.
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6.10.3.4. Claim details should be entered in Claim register which will be maintained as per format
suggested by RLM.
6.10.3.5.All claims will be serially numbered as per the serial number in the claim register. The same
number should be subsequently indicated on the cases by means of a permanent marker pen, upon
physical receipt of the material and also on Credit Note when raised.
6.10.3.6. If claim goods are not received within 21 days from the date of receipt of the claim, CFA
should inform Customer by mail / letter to take up matter with courier / transporter and keep ASM /
RLM informed.
6.10.3.7. CFA should physically verify the goods received w. r. t. Quantity, Batch no., MRP, Expiry date
and pass the claim as per set norms.
6.10.3.8. In case of any mismatch between the claim and the received quantity, CFA manager should
inform Customer through email / letter about mismatch and keep a copy of letter / mail with claim
letter.
6.10.3.9. After completion of the verification process CFA should pack D&E stock in shippers / bags
and seal it.
6.10.3.10. CFA must keep each such verified case, duly marked with serial number as mentioned on
Claim Register separately to enable verification by ASM / RLM. CFA should be responsible for
discrepancies, if any, resulting in losses and hence Company would recover such amount from CFA.
6.10.4. Batch Recall / Product Recall
6.10.4.1. CFA should accept stock from Customers only on written instruction from RLM.
6.10.4.2. Batches of recalled product should be restricted in SAP by HO team.
6.10.4.3. Once the recalled products are received at CFA premises, they should store such stock in a
segregated area clearly mentioning with the board “RECALLED STOCK-NOT FOR SALES”.
6.10.4.4. RLM shall advice CFA on matter of credit note settlement for such stock.
6.10.4.5. CFA shall keep record as per Format suggested by RLM and share it on request.
6.10.5. Replacement Policy for CSD depots, CPC/Defence Institutions
6.10.5.1. As per our agreement with CSD, CPC and Defense Institutions, AHPL is responsible for the
stock that has damaged or has expired at their end.
6.10.5.2. Approval of MT Head, Supply Chain Director and Finance Director is needed for issuing
replacement.
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6.10.5.3. Basis SKU and quantity approval received CFA needs to invoice and hand over the stock to
authorized representative of House of Aroras (HOA). Invoicing to be done basis current available
batch.
6.10.5.4. CFA also needs to raise a Value Based CN equivalent to the invoice value and knock-off both
the transactions in customer ledger.
6.10.5.5.CSD team will arrange to deliver the damaged / expired stock to the concerned CFA. As the
stock is non-saleable in nature, no book entries need to be passed. Stock to be disposed off after
getting necessary approval as per existing SOP. In some cases the CSD / CPC / defence institutions will
not physically hand over the damaged / expired stock back but issue a letter stating that the stock has
been destroyed at their end. Any discrepancy needs to be highlighted by the CFA to CSD Manager
keeping RLM & Trade Finance Manager in loop.
6.10.5.6. No stock to be issued for replacement till previous pending issue is reconciled and closed.
6.10.5.7. Gain or loss due to difference in MRP of stock billed earlier to CSD / CPC / defense institutions
and the stock which is issued as replacement will be to Company’s account.
6.10.6. Storage of Returned goods.
6.10.6.1. Saleable Returns, until verified, should be kept in pending saleable return zone.
6.10.6.2. Saleable Returns after verification should be processed in SAP and kept along with relevant
saleable product.
6.10.6.3. Near Expiry (not saleable), breakage / expiry should be kept in “Damage Room” under lock
and key.
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6.11 CREDIT NOTES
6.11.1. The Credit Notes are raised to settle the claims of Customers. CFA needs to enter the CN
tracker serial number in the PO field while issuing a CN.
6.11.2. Non saleable claims less than INR 25000.00 received from customers to will be settled directly
by CFA after approval of RSM.
6.11.3. Non saleable claims valuing INR 25000.00 needs to be authorised by Finance in SAP.
6.11.4. Summary of actions with respect to preparation of credit note by CFA is given in the table
below. CFA shall adjust credit notes in SAP while taking collection of subsequent invoices.
Description Supporting Action Authorisation in SAP
Damages / Claim Form / CFA to issue CN immediately on physical Credit Notes for a value
Expired stock Customer receipt and verification of the stocks after individually exceeding
Letter/Delivery obtaining approval from RSM on the Credit 25,000/- will be approved
Challan for settlement Note. by Finance in SAP.
of claim along with Stocks to be sent to incineration plant for
physical stocks destruction or to the cattle feed vendor for
disposal on periodic basis only after approval
of RLM.
6.11.5 On receipt of the claim, CFA must immediately update the details in Claim register.
6.11.6. CFA must physically verify the goods received w. r. t. Quantity, Batch no., MRP, Expiry date
and pass the claim as per set norms.
6.11.7. If expired stock is sent after 300 days of expiry, credit note will not be processed in SAP.
Exceptions, if any, for passing Value Based CN (VBCN) shall be approved by Trade Finance Manager &
Director- Trade Sales on the basis recommendation of RLM. CFAs should process such VBCN by using
appropriate SKU code and dummy material code shouldn’t be used. Also, all such VBCN should be
raised with ref to original Unsaleable Return CN.
6.11.8. CFA will take print out of the credit note copy, sign off the same and send the same to the
customers.
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6.12 DISPOSAL OF DAMAGED AND EXPIRED STOCK
6.12.1. Procedure to be followed for destruction of powders
6.12.1.1.CWH / CFA should ensure that post verification all damage / expired stock are packed in
shippers / bags and sealed. CWH / CFA needs to maintain record as per prescribed format.
6.12.1.2. CWH/CFA should prepare reconciliation report for Warehouse / Transit Damage, Product
Recall (if any) & Expired stock and attach it with documents to be sent for destruction.
6.12.1.3.CWH/CFA should send goods for destruction after taking written approval from Manager
Distribution/RLM.
6.12.1.4.At the time of dispatch of Damaged / Expired stock, CWH / CFA needs to weigh it. The vehicle
used for despatching stock to destruction facility should be weighed before and after loading at a
weigh bridge. Weight of Market Return Damage / Expiry, Transit Damage, Expired and Product Recall
stock (if any) should be equal to weight of Damage/ Expiry goods dispatched to Destruction Facility
with a +/- 5 % variation.
6.12.1.5.Warehouse Expiry & Product Recall stock should be defaced before despatch from CWH/CFA.
CWH/CFAs should maintain photographic evidence of defacing. Exceptions if any need to be taken
from Supply Chain Director.
6.12.1.6.CWH/CFA should prepare destruction letter addressed to incineration agency appointed by

Company as per below Format:
Destruction Letter
Date:
To:
Subject: Destruction of Damaged / Expired Stock
This is to certify that damaged / expired stock have been physically verified and packed.
These stock are not fit for sale and has no commercial value.
We further state that the above stated damage & expired stock have been packed in …………
shippers/bags and sent to incinerator agency for destruction.
Signature
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CFA Manager.
6.12.1.7. CWH/CFA must send dispatch intimation to incineration agency by email.
6.12.1.8. CWH/CFA should file copy of letter, delivery challan sent to destruction agency along with
Weigh Bridge Slip, Printout of Customer Claim Tracker (with weight) & Details of scrapping (with
weight). Also, CFA needs to maintain transport LR copy and POD at destruction facility (if material is
not picked by incinerator.
6.12.1.9. Incinerator must get this shipment weighed at destination by an Independent Agency and
tag Weigh Bridge Slip with destruction certificate. Weight of Damage/ Expiry goods dispatched to
Destruction Facility should be equal to weight of Damage/ Expiry goods received at destination with a
+/- 200 Kg variation due to diesel consumption/refuelling in transit. CFA must co-ordinate with
incineration agency and obtain a copy of destruction certificate with destination Weigh Bridge Slip.
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6.13 TRANSFER OF STOCK TO CWH / CFAs
6.13.1. Transfer of stock to CWH / CFAs should be done basis Stock Transfer Orders (STOs) shared by
Distribution Planning department.
6.13.2. Stock should be dispatched in containerised vehicle unless approved as an exception by

Manager Distribution in writing.
6.13.3. Vehicles for loading will be made available by Transporters before 01:00 p.m. After vehicles
will report to loading point warehouse, Security guard will check the vehicle’s condition (refer to point
13.4) and documents - RC book, fitness certificate, insurance policy, PUC certificate, and driver’s
license. If any of the documents is not found in order, or the truck is not fit for use, he should inform
the CFA Manager, who in turn will inform the Manager Distribution. Manager Distribution will liaise
with concerned transporter and resolve the issue or arrange for alternate truck. Only if the documents
are found in order, he will inward the truck after noting the truck registration number and driver’s
mobile number.
6.13.4. Vehicle reported for loading should be checked by Floor Supervisor again for –
6.13.4.1. Any evident leakages.
6.13.4.2. Cleanliness: There should be no off-odour and no pest activity. The floor and walls
of the container should be clean and dry.
6.13.4.3. There should be no torn metal piece, protruding nails or any such object which may
damage the shipper.
6.13.5. STOs will be shared by Dispatch Planner / Manager Distribution before 11 am. On receipt of
STOs, SAP Operator should prepare pick-list and share it with Floor Supervisor.
6.13.6. Floor team needs to pick material and stack it in loading bay. Post confirmation from Floor
Supervisor about 100% correctness of picked stock, vehicle loading should start.
6.13.7. Post completion of loading as per checked pick list, STN to be made by SAP Operator.
6.13.8. In case, the entire picked stock is not loaded in truck due to space constraint; STN needs to be
amended accordingly. Also in case of FTL despatches, if space is available after loading entire picked
stock, CFA should ask for addition STO from Dispatch Planner / Manager Distribution.
6.13.9. Transporter’s loading supervisor needs to prepare LR basis STN. CWH/CFA Manager needs to
verify STN, LR and E-waybill (wherever applicable) for correctness before releasing the vehicle.
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6.14 INSURANCE
6.14.1. The Insurance policy covers for loss or damage of goods in transit and storage risk of all Finished
Goods and Assets at all warehouses in India.
6.14.2. CFA needs to raise Claim for Damages, Shortage, Accident, Flood, Fire and Theft that may occur
during stock movement from CWH to CFA and from CFA to Customer.
6.14.3. For damages that occur during stock movement between CWH & CFAs, claim need to be lodged
for damage stock value at STN Rate + GST.
6.14.4. For damages that occur during stock movement from CWH/CFA to Customer, claim need to be
raised for damage stock value at Invoice Rate + GST.
6.14.5. In case of in-transit Damages / Shortages, CWH/CFA should take open delivery of goods. A
certificate from carrier must be obtained for Damage / Shortage value, if the total value of loss exceeds
INR 10000/-.
6.14.6. CWH/CFA should prepare a Claim note in a prescribed format and send the same along with
supporting documents to the Insurance Company by email.
6.14.7. If the loss is more than threshold limit set by the Insurance Company, survey by a Surveyor
appointed by Insurance Company may be required.
6.14.8. After Survey is conducted by Insurance Surveyors the CWH/CFA should obtain a copy of survey
report from the Surveyor. Stock should then be sent to the incinerator for disposal after getting
approval from RLM / Manager Distribution.
Action & Responsibility Matrix is given below –

Action Responsibility
RLM/Manager Distribution,
Arrange for conducting survey and follow up for Report
CWH/CFA
Prepare Insurance Claim papers with supporting / documents and forward to

CWH/CFA
Distribution Planning Manager.
Sending Claim Note to the transporter with copy to Distribution Planning

CWH/CFA
Manager.
Follow up for obtaining settlement from carrier CWH/CFA
Follow up of Insurance Claim for recovery Manager Distribution, RLM

Manager Distribution,
Maintenance of Insurance Claim / Carrier's Claim Register
CWH/CFA & RLM
Reconciliation of outstanding insurance claims Manager Distribution
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Monthly standard entry for Insurance claim accrued Manager Distribution
Accounting for insurance claim withdrawal / write off Manager Distribution
The CFA must intimate all claims above Rs.10, 000/-within 7 days from date of occurrence of loss to
the Insurance Company. The CFA must keep RLM & Manager Distribution in the loop on all such
communication with the Insurers. Following format must be used for communicating the loss:
Sl. No. Particulars To be filled
1 Product Type *
2 Policy Number*
Inv. No: ----- Dated ----- LR
3 Certificate No/Tag No./Sr.No.
No: ----- Dated ----
4 Insured/Corporate Name *
5 Insured/Corporate Address * (As per policy).
6 City * Mumbai.
7 Division name ANI
8 Date of Loss * ( dd-mm-yy)
9 Time of Loss
10 Details of Loss/Accident *
11 Claimant Name
12 Approx Loss Amount
13 Contact Person *
14 Loss Place (city)*
15 Loss Complete Address *
16 Contact Number *
All losses below INR 10,000/-should be intimated to Manager Distribution as per the suggested
format.
6.14.9. Claims above INR 10,000/- and below INR 20,000/ should be supported by the appended
documents ¬
6.14.9.1. Invoice Copy (Original or Carbon copy)
6.14.9.2. LR -Consignee / Carbon copy (Endorsed LR Copy)
6.14.9.3. Claim Bill
6.14.9.4. Original Damage / Shortage Certificate from the transporter.
Version 6, Approved

6.14.9.5. Self-Survey by the CFA. (Survey by appointed Surveyors is waived off for claims below INR
20,000/-)
6.14.10. Claims above INR 20,000/ should be supported by the appended documents ¬
6.14.10.2. LR -Consignee / Carbon copy (Endorsed LR Copy)
6.14.10.3. Claim on Carrier (Existing format on letter head)
6.14.10.4. Acknowledgement of transporter on our claim on them or Registered AD card
6.14.10.5. Original Damage / Shortage Certificate from the transporter.
6.14.10.6 Original Survey Report
6.14.10.7. Photographs (if any)
6.14.10.8. Destruction Certificate
6..14.10.9. Marine Claim Form
6.14.10.10. FIR (in case of Accident / Theft)
6.14.10.11. Fire Brigade Report (In case of fire)
6.14.10.12. Loss due to Flood - Newspaper cutting / MET Dept report.
6.14.10.13. Subrogation form (Will be arranged by Manager Distribution)
6.14.10.14. The Subrogation letter will not be required by Insurance Company for Claims below INR
50,000/-
6.14.11. The Claims arising out of Courier Damage would require following documents:
6.14.11.2. Endorsed POD Copy
6.14.11.3. Original Damage Certificate
6.14.11.4. Claim Bill
6.14.11.5. Survey report on claims above INR 20,000/¬
Version 6, Approved

6.15 TAXATION
6.15.1. CWH/CFA must maintain Invoice / STN copies and all other records month / year wise.
6.15.2. All Forms / copy of Form pertaining to VAT/GST era should be kept in safe custody at least for
a period of 9 years.
6.15.3. CWH/CFA has to maintain the complete record of assessments and litigations happening in
that State pertaining to their facility.
6.15.4 CWH/CFAs need to generate e-way bill as per prescribed process for all shipments where e-
Waybill is required.
Version 6, Approved

6.16 RECORDS AND REPORTS MANAGEMENT
Record files are to be serially numbered for easy identification w.r.t. to subject matter / month / year.
No records are to be destroyed until RLM authorizes in writing.
Record title Retention
Destruction order identifying records

Permanent
destroyed, dates and approvals
Transfer notes with LR copies 9 years
Samples register 9 years

Forms register 9 years
Registers 9 years
Log Reports 9 years
Positive /negative stock adjustment Note 9 years
Tax / Tax Assessment documents at CFA. 9 years
Until resolved / closed plus 9

Legal Notices at CFA
years
Version 6, Approved

6.17 MEASURES TO PREVENT CONTINGENCIES
6.17.1. Computer System Breakdown
There should be AMC for periodical check-up.
6.17.1.1. CWH/CFA should have UPS attached to every Computer to avoid downtime.
6.17.1.2. CWH/CFA manager should take a backup for the files stored in computer periodically on an
external storage device.
6.17.1.3. In case of sudden breakdown of System CWH/CFA should immediately inform Manager
Distribution/RLM.
6.17.1.4. Antivirus software should be periodically updated to keep system virus free.
6.17.2. Electricity breakdown
6.17.2.1. CWH/CFA should have Diesel Generator installed to avoid situation of blackout. A log book
of generator usage should be maintained as per format suggested by Manager Distribution/RLM.
6.17.2.2. Emergency lights should also be available at CWH/CFA.
6.17.3 Accident or Medical Emergency
6.17.3.1. All Staff members should be trained on First Aid Procedures and such training should be
documented as per prescribed Format
6.17.3.2. A chart on emergency management plan should be pasted on wall of CWH/CFA.
6.17.3.3. CWH/CFA should also maintain First Aid box in office and stores with a list showing name of
medicine, purpose, expiry date.
Version 6, Approved

6.18 WAREHOUSE AND INFRASTRUCTURE
6.18.1. Building and Premises
6.18.1.1. Building should be located in clean environment. The surroundings should be free of agents
that can cause infestation.
6.18.1.2. The building should be at reasonable height from ground to provide protection against flood.
It should also have good drainage system to avoid any blockage/ backflow of drain water.
6.18.1.3. The building should have a sound structure to provide structural integrity with hardened,
sealed floor and walls.
6.18.1.4. There should be no leakages, water seepages from ceilings/roof, walls or joints that can
affect product integrity.
6.18.1.5. The warehouse should have controlled access. Only authorized personnel should be allowed
in product storage areas. Entry of drivers should be restricted only to dock area. They should not be
allowed to enter the storage areas.
6.18.1.6. There should be a system to ensure product security including invasion and theft.
6.18.1.7. The area should have sufficient lighting for easy, accurate & safe operation.
6.18.1.8. Should have separate washrooms & eating areas physically segregated from operational
areas.
6.18.1.9. Logbook/attendance register should be maintained for visitors /employee respectively.
6.18.1.10. Floor of warehouse must be smooth & durable for movement of trolleys.
6.18.1.11. Floor should have proper bay marking and fluorescent marking directing towards
emergency exit.
Note: The above points need to be adhered in alignment with CDQA Manual.
6.18.2. Fire extinguishers
6.18.2.1. CWH/CFA should ensure that ABC Type Fire extinguishers are installed.
6.18.2.2. Fire Extinguishers should be installed at places having easy access and at a height having easy
reach. There should be one Fire Extinguisher per 2000 square feet area.
6.18.2.3. There should proper fluorescent signages indicating placement of fire extinguishers.
Version 6, Approved

6.18.2.4. CWH/CFA should ensure that all units are within validity period and having sufficient
pressure.
6.18.2.5. CWH/CFA should maintain record of periodic inspection and refilling activities and ensure
refilling before its expiry. CWH/CFA needs to ensure:
1 Refilling is done before Expiry date and pressure doesn't fall below Green level.
2 All records / Contracts / any correspondence on this matter are kept filed.
6.18.2.6. Proper training on Fire Fighting should be given to all staff & training record must be
maintained as per prescribed format.
6.18.3. Layout
6.18.3.1. Layout should be displayed at entrance of the warehouse.
6.18.3.2. Layout should clearly indicate fire extinguisher and emergency exits
6.18.3.3. CWH/CFA should be divided into
6.18.3.3.1. Saleable stock area
6.18.3.3.2. Damaged room
6.18.3.3.3. Office area
6.18.3.3.4. Dock area
6.18.3.3.5 Quarantine Zone
6.18.3.3.6 Pending Saleable Return Zone
6.18.4. Infrastructure
6.18.4.1. Items /equipment required at CWH/CFA
6.18.4.1.1. Pallets
6.18.4.1.2. Racks
6.18.4.1.3. Air conditioners
6.18.4.1.4. Data loggers.
Version 6, Approved

6.18.4.1.5. Filing racks/cupboards
6.18.4.1.6. Rodent traps
6.18.4.1.7. Hand Pallet Trucks / Trolleys
6.18.4.1.8. Diesel generator (DG set) / UPS
6.18.4.1.9. PC.
6.18.4.2. Signage to be used at CWH/CFA
6.18.4.2.1. There should be a board outside CWH/CFA premises indicating Abbott logo,
registered office address, CWH/CFA name, address and telephone number, emergency
contact numbers
6.18.4.2.2. All interior signage should be made of acrylic board indicating the various stock
area and GWP messages
Version 6, Approved

7.0 DEFINITIONS / ABBREVIATIONS
Term Definition Term Definition
CFA Carrying & Forwarding Agent LR Lorry Receipt
CWH Central Warehouse HO Head Office
RLM Regional Logistics Manager GD General Diary
TPM Third Party Manufacturing POD Proof of Delivery
STN Stock Transfer Note ASP Average Selling Price
CSD Canteen Stores Dept PDP Permanent Despatch Plan
MT Modern Trade FEFO First Expiry First Out
RBM Regional Business Manager NBM National Business Manager
HO Head Office DC Distribution Centre
PO Purchase Order CSM Customer Service Manager
POSM Point of Sale Material FG Finished Goods
CPC Central Police Canteen PDC Post Dated Cheque
PIS Pay In Slip ASM Area Sales Manager
RM Regional Manager SKU Stock Keeping Unit
AMC Annual Maintenance Cost DLP Distributor Landing Price
DQAM Distribution Quality Assurance GWP Good Warehousing Practice

Manager
MT CS Modern Trade Customer MSDS Material Safety Data Sheet

Service
CFS Centralised Financial Service
Version 6, Approved

8.0 REFERENCE DOCUMENTS
S. No. Document ID Name of Document
1 FP110 Commitment & Expenditure of Funds Approval Levels

2 AHPL/FIN – CUS / 001 Customer Credit Management & Pricing
3 AN16-99-001 Distribution Requirement
4 ANI-India.01.QA.CD.001 Commercial Distribution Q.A. Manual
5 ANI-India.03.QA.CD.002 Pest Control Procedure
Version 6, Approved
Abbott - Abbott Commercial
Document Properties
Document ID: ANI-IN-01-FD001

Control Site: AC - AN Asia and Pacific
Info
Document ID: ANI-IN-01-FD001
Controlled Document Title: ANI-IN-01-FD001
Document Category: Manuals
Document Type: Manual
Document Type Details:
Major Version: 6
State: Approved
Affecting Change Element: New Version
Approved Date: 18-Jun-2021
Effective Date: 01-Jul-2021
Effective Date Type: Effective By Date
Division: Abbott Commercial
Use Overlay: General - Effective Date
Translation Source:
Language: English(en)
Authors: Deb, Hirak Kumar
Owner Functional Area:
Departments/Areas Affected:
Security: No / Public
Record Series Code:
Retention Start Date:
Retention End Date:
No Purge: No
Legacy Object ID:
Manual Source:
Periodic Review
Disable Periodic Review: No
Last Review Date: 26-Jul-2018
Review Interval:36
Next Review Date: 26-Jul-2021
Subject Matter Expert: Deb, Hirak Kumar
Post Approval
Business Type: India
Governing Document:
Reference Document: FP110, AHPL/FIN – CUS/001, AN16-99-001
Source Document:
Supplier Applicable
Documents:
END OF DOCUMENT
Created:18-Jun-2021 04:56:50 UTC Document Properties Page 1 of 1

Change Request Properties
CR Number: CR-ANAPC-21-00000058
Initiator
CR Initiator: Patel, Hetal
Initiator Phone Number: 02250461977
Initiator Location: AC - AN Asia and Pacific
Initiator Division: Abbott Commercial
CR Info
CR Submitted Date: 17-Jun-2021
CR Control Site: AC - AN Asia and Pacific
CR Division: Abbott Commercial
CR Status: Closed
CR Status Date: 18-Jun-2021
CR Approved Date: 18-Jun-2021
Change Info
Security: No / Public
Document ID / Title: ANI-India-01-FD001 / CWH/CFA Operations Manual
Description of Change: CWH/CFA Operations Manual Version 5 has been revised to capture the
following changes
a) Change in Desgination from DPM to Manager Distribution

Reason for Change: To capture the current designation
b) Change in NACH collection process

Reason for Change: To capture automation in the new NACH collection
processto capture the following changes
c) Change in Inventory write off matrix

Reason for Change: To capture the revised execution authority for stock write
off
d) Change in approving authority for FEFO violation

Reason for Change: To comply with current business practices
Reason / Justification for Reason: To comply with current business practises.
Change:
Justification: CFA manual has been revised so that NACH collection and
inventory write off is done as per revised SOP.
Was Impact Assessment Yes
Performed?:
Training Requirements: Content Change
Comments: Trainings to be assigned as per the Manual Change Control Request form
attached
Effectivity
Effective Date Type: Effective By Date
Implementation Type: Specify Implementation Date
Implementation Period:
Implementation Date: 01-Jul-2021
Created:18-Jun-2021 04:56:54 UTC Change Request Properties Page 1 of 2

Change Request Properties
Implementation Justification: CFA manual has been revised so that NACH collection and inventory write off is
done as per revised SOP.
Change Documents
Document ID Title Document Type
ANI-IN-01-FD001 CWH/CFA Operations Manual Manual
Supporting Documents
Name
Approval Nilesh
Approval Nitin
Approval Sachin
Change Request Form-V3_Operations Manual
Redline
Approvals
User Name Name / Domain Meaning of Functional Date / Time
Signature Area
Samant, Sachin ONEABBOTT\SAMA Approver Quality 2021-06-18 04:14:45
NSX11 (UTC+00:00)
Nakti, Nitin ONEABBOTT\NAKTI Approver Quality 2021-06-18 04:55:04
NX (UTC+00:00)
External Approvals
< No External Approval Data to Display >
Linked CRs
< No Linked CR Data to Display >
END OF DOCUMENT
Created:18-Jun-2021 04:56:54 UTC Change Request Properties Page 2 of 2

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Abbott – Abbott Commercial

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

1.0 TABLE OF CONTENTS

1.0 Table of Contents

4.0 Roles & Responsibilities

5.0 Process Flow

6.1 STATUTORY REQUIREMENTS

6.2 CUSTOMER INTERACTION

6.3 RECEIPT OF STOCK

6.4 STORAGE & HANDLING OF STOCK

6.5 INVENTORY MANAGEMENT

6.6 ORDER SERVICING

6.7 PICKLIST & INVOICING

6.8 DISPATCH OF CONSIGNMENT

6.9 MANAGEMENT OF COLLECTION AND BANKING

6.10 HANDLING OF RETURNED STOCK

6.11 CREDIT NOTES

6.12 DISPOSAL OF DAMAGED AND EXPIRED STOCK

6.13 TRANSFER OF STOCK TO OTHER CFAs

6.16 RECORDS AND REPORTS MANAGEMENT

6.17 MEASURES TO PREVENT CONTINGENCIES

6.18 WAREHOUSE AND INFRASTRUCTURE

7.0 DEFINITIONS / ABBREVIATIONS

8.0 REFERENCE DOCUMENTS

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

This manual is applicable to AN India Business Supply Chain.

4.0 Roles & Responsibilities:

Roles & responsibilities of CFA/CWH are:

Proper receipt of stock from CWH, CFAs and Imports

SKU-wise Batch-wise stacking of stock.

Stock control as per guidance of Distribution department.

Dispatch of samples as per instruction of Distribution department.

Maintenance of statutory records

Undertake other activities as may be warranted and advised by Distribution department.

5. Process Flow : N/A

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.1 STATUTORY REQUIREMENTS

6.1.1.3. CWH/CFA should submit a copy of the acknowledged application to Manager

6.1.2. GST Certificate & Fire Safety License (wherever applicable).

6.1.3 Compliance on Labour Laws

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.2 CUSTOMER INTERACTION

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.3 RECEIPT OF STOCK

6.3.1. Incoming stock

6.3.1.1. CWH/CFA receives saleable goods, samples and POSM from

6.3.1.1.1. Central Warehouses or the factory or TPMs.

6.3.1.1.2. Other CFAs

6.3.1.1.4. Other vendors

6.3.2. Receipt of Stock

6.3.2.1. Receiving Area

Unloading Bays/ Staging Areas should be separate from Storage Areas.

6.3.2.2. Receiving of Stock

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.3.2.2.8. Discrepancy in incoming stock

6.3.2.2.9. Receipt of Part consignment due to road accident /theft

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.3.2.2.9.3. Floor supervisor should mention details of part consignment on STN/Invoice.

6.3.2.2.10. Non-availability of incoming documents

3.2.3. Product Approval Status

Document ID: ANI-IN-01-FD001 Effective By Date: 01-Jul-2021

6.4 STORAGE & HANDLING OF STOCK