Confidential Information

Standard Operating Procedure

Document Title:Standard Operating Procedure (SOP) for Discontinuation of a Principal

Partner/Vendor. “Selling remaining inventory.”

Document #: 11032023 Document Revision: 00

Completed By: Approved By:

Effective date: ABC DAR#: ABC

PRINCIPAL PARTNER/VENDOR (NAME):

1.0 PURPOSE
This SOP outlines the process for discontinuing a Principal Partner/ Vendor, ensuring a smooth
transition and efficient handling of product discontinuation from our inventory.

2.0 STAKEHOLDERS
The decision to discontinue a Principal Partner/ vendor will be communicated by the Chief
Executive Officer, the Director of Supply Chain and Business Operations, the Vice President of
Business and Partnership Development, The Executive Vice President of Revenue,or The Director
of Marketing and Product Management.

3.0 RESPONSIBILITY
ThisSOP applies to all departments involved, including:

3.1Chief Accountant:Manages financial implications and reporting.

3.2Customer Care Manager: Ensures team is informed and handles inquiries.

3.3Claims Representatives: Handles claims and returns denials.

3.4Director of Marketing and Product Management:Oversees the communication plan.

3.5Associate Product Manager:Coordinates product discontinuations and

replacementstrategies.

3.6Pricing and Contract Manager: Ensures the team is informed and manages pricing.

3.7 The Procurement and Inventory Manager:Handles inventory analysis and order reviews.
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3.8Programmer/Analyst: Updates website for product changes.

3.9Warehouse Managers:Manages the removal of stock.

4.0 INITIAL REVIEW

4.1 The Executive Vice President of Revenuereviews thePrincipal Partner/ Vendor contract for
termination rights and clauses.

4.2 The Vice President of Business and Partnership Development: Develops timeline for
discontinuation, considering contract obligationsand operational needs.

5.0 PROCEDURES BY DEPARTMENT

5.1 Marketing
5.1.1The Director of Marketing and Product Manager Develops and implements an internal and
external communication plan for the discontinuation of the Principal Partner/ Vendor.

5.1.2 The Director of Marketing and Product Manager Communicatesany replacements.

5.1.3The Director of Marketing and Product Manager and Vice President of Business and
Partnership Development: determines if the remaining stock is to be written off or sold at
discounted pricing. Informs the Pricing Team and the Associate Product Manager.

5.2 Pricing Team

5.2.1The Pricing Team adjusts pricing in line with strategy.

5.3 Operations:
5.3.1The Procurement and Inventory Manager reviews the contract and negotiates stock
returns.

5.3.2The Procurement and Inventory Manager Conducts an inventory analysis for each location
identifying the items with quantities remaining in stock and determining total value. Provides
the total value of the inventory to the Chief Accountant.

5.3.3 The Procurement and Inventory Manager directs the Purchaser in charge to review
thepurchase orders that are still pending status and gets in touch with the Principal Partner/
Vendor to confirm their status. If the order has not been shipped yet, requests for its
cancellation and confirmation. Once an update is received, informs the Procurement and
Inventory Manager and the Associate Product Manager regarding the order details. Based on the
status of the purchase order, a decision will be made on whether to proceed with completing
any pending sales request or to request the Customer Care Manager to cancel the sales order.

5.3.4The Purchaser in charge verifies if any items that are no longer available have been
requested to be included in the forecast. If so, they will get in touch with the Sales Director who
requested the forecast and refer to the potential replacement products. If the Sales
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Directorrequires additional information, the Purchaser will direct them to contact the Associate
Product Manager.

5.4 Associate Product Manager

5.4.1The Associate Product Manager in the Item list in Bizowie, discontinuesandsets items as
non-returnable. Selects a suitable replacementand adds it to the discontinued item.

5.4.2 The Associate Product Manager Creates a centralized file in SharePoint for documenting
the checklist from Appendix A Section 7 and Section 6 and shares it with every department’s
Managers listed in Section 3.

5.4.3The Associate Product ManagerReviews the discontinued items and ships sales orders
from the stocked warehouse. Once the stock is depleted sets item status to discarded, removes
web availability, and deletes all sales channels.

5.4.4The Associate Product Manager Inactivates thePrincipal Partner/ Vendorin the system with
a note detailing the effective date and reasons for the discontinuation.

5.5 Programmer/Analyst
5.5.1The Programmer Manages the stock location display.

5.5.2The Programmer Removes discontinued items with no remaining inventory from the
Payless site.

5.6 Warehouse
5.6.1The Warehouse Manager plans the warehouse space allocation if a replacement Principal
Partner/ Vendor is to be stocked.

5.7 Vendor Claim Specialist

5.7.1 The Procurement and Inventory Manager informs the Vendor Claims Specialist to Submit
all outstanding claims and finalize the collection of all outstanding claims.

5.8 Customer Care Return and Claim Specialist

5.8.1 The Claim Specialist processes outstanding claims and rejects returns for discontinued
items.

5.9 Customer Care Team

5.9.1The Customer Care Manager advises their team of discontinued Principal Partner/ Vendor
and items how to handle inquiries and if there are any pricing discounts.

5.9.2The Customer Care Representative provides replacement options for customers.

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5.9.3 The Associate Product Manager notifies the Payless department of the changes
andpricing plan.