The requirement for green plants and cut flowers

Content

This procedure describes how TA Russia and IKEA stores in Russia shall handle domestic claims for green plants and cut flowers.

This routine is in conjunction with IKEA-0006 and IKEA-0003, Edition 2 and adapted to plant and cut flower supply quality deviations for IKEA Russia.

Basic Rules

1.  Damages, quality problems and quality deviations of plants have to be reported by the store in written directly to Supplier within 24 hours after unloading in case of obvious defects but maximum 7 days in case of hidden defects. Supplier will not accept any claim after mentioned above time frame.

2.  Transport issues need to be always reported directly to supply quality at wholesaler in 24hrs

    (e.g. Transport damages, quantity deviations).

3.  No replacement/exchange of damaged, non quality, missing plants is possible

4.  There’s no minimum limit of claim value.

5.  Claim quantity defines as quantity of articles. Never count pieces in a bouquet.

6.  Claim value is calculated based on following actions

Action	Description	Cost
Return	Return the goods to supplier at supplier’s expense	-  Article cost -  In-freight (in case of FCA delivery) -  Out-Freight (in case of DDU return) -  Customs duty (if applicable) -  Other costs (if applicable)
Repair	Renewal the quality up to the required level	Other applicable costs
Sort	Sorting out articles	Other applicable costs
As-Is	Sale with Discount	Discount agreed with causing party in Buyer Claim.
Scrap	Scrap articles	-  Article cost -  In-freight (in case of FCA delivery) -  Customs duty (if applicable) -  Other costs (if applicable)

Costs explanation is given below

Cost	Explanation
Article cost	Consignment note – PUA price (price from the Agreement with the supplier, without VAT) and the purchase order currency on the supplier invoice. If the claim does not refer to a specific consignment use the lowest PUA price at the time of production (date stamp). If no date stamp and no consignment number is available use latest PUA price.
In-freight	Wholesaler/ISP ICE CALC or CNS (whenever possible the real freight costs should be taken). If no cost is available, contact Trading.
Out-freight	Freight cost calculated by the Transport department
Customs duty	Wholesaler /ISP ICE CALC WSMU-total customs or duty rate from local customs system. NOTE! If IKEA reclaims the original duty from the authorities upon re-export (return) of the goods, the duty shall not be included in the claim against third party.
Discount	In case of AS-IS. The percentage must be stated on the signed Buyer Claim.
Other costs
Internal labor cost	Common labor cost is 25 EUR man-hour  (both in Stores and at Wholesaler/ISP)
External labor cost	Actual cost
Material cost	Actual cost
Sorting cost	Actual cost (if internal labor 25 EUR)
Disposal cost	Actual cost
Environmental cost	Actual cost
Other direct costs	Actual costs, for example loss adjustment costs, testing, samples, loading/unloading.

A.  SUPPLY DAMAGES DURING TRANSPORTATION

When unloading the truck in the store the BA 50/Receiving co-worker detects supply damage (e.g. broken pots, plants, frozen or over dried plants because of temperature deviation inside the truck) of plants.

When damage is detected BA 50/Receiving co-worker shall Create Deviation Report and act according to DS-Q-0010 and other internal routines.

The Deviation report, marked transport documents and pictures have to be forwarded to the BA 50 Group Leader or designated person.

BA 50 Group Leader or designated person forwards Deviation report to the Stock control, responsible TA Business Support and Technician within 24 hours after truck has been unloaded.

The further actions should be taken according to the existing routines.

 

QUANTITY DEVIATIONS

1.  The truck arrives in the store.

2.  Receiving co-worker checks the seal. In case the seal is broken / missing, it’s stated in Deviation Report.

3.  BA50 and Receiving co-worker detects quantity deviation between invoice and delivered quantity.

4.  In case quantity deviation is visible the Receiving co-worker takes photos of it.

5.  Receiving co-worker fills in Deviation Report.

6.  Receiving co-worker informs Q-responsible of Recovery department about quantity deviation and ask him to come to receiving area.

7.  Receiving co-worker, Q-responsible and driver sign the Deviation Report. In case Q-responsible is not present the Deviation Report shall be signed by Receiving Group Leader, in case Receiving Group Leader is not present his deputy shall sign it.

8.  Receiving co-worker marks the deviation in transport documents. In case the driver refuses to sign the Deviation Report, it is marked in it.

9.  Receiving co-worker hands over the marked documents and photos to Recovery department. Q-responsible in Recovery department creates case in CASY and send it to Quality department (DVRU).

B.  QUALITY PROBLEMS OF THE GREEN PLANTS

The BA50 co-worker detects an obvious quality problems when unloading the truck or when filling up the sales place. Hidden quality problems can appear even later.

Quality Problems may be: wrong or missing labels, care instruction on the plant pots, plants of abnormal dimensions, dry soil, brown edges, not fresh plants which could not be sold, bugs, insects in the soil or on the plants, remains on plants etc, plants/ cut flowers that are not in conformity with the product description.

The BA50 Group Leader or designated by the group leader person contacts the Supplier by e-mail (duplicating by telephone is recommended) within indicated above time frame with following information (11 points in total) preferably on Russian language:

- name and number of a store;

- store’s e-mail and fax number for communication and confirmation;

- supplier number;

- truck’s arrival date;

- article number;

- claimed quantity;

- label’s date stamp;

- problem description;

- photos;

- proposed action;

- costs of action and labor hours

BA50 initiates a Claim only after receiving a written by fax confirmation from supplier or scanned and attached by e-mail confirmation. BA50 co-worker sends the MEMO to the Quality Responsible in the store who creates a Store Quality Report in CASY according to the normal procedure.

Upon receiving of the SQR in CASY, Quality and Deviation Group issues a Buyer Claim towards supplier acc. to the normal routine. The wholesalers Quality Group has to send the Buyer Claim to the responsible party within 3 days after action was agreed between supplier and Trading and store has received the decision in written.

In case the solution acceptable both for a store and for a supplier can not be found the unsolved case must be reported to the Quality Deviation Group in CASY in case of Quality Problem, or by sending the documents package and MEMO, in case of transport damages. The Quality Deviation Group is responsible for unsolved case.

Trading does Corrective actions procedure.