STANDARD OPERATING PROCEDURES

TITLE ISSUE NUMBER

Enquiry, pricing & payment terms finalization

WRITTEN BY EFFECTIVE DATE

Acquisory Consulting LLP

APPROVED BY: SUPERSEDES

AMENDMENTS TO PREVIOUS VERSIONS

Page No. Context Revision Date

PURPOSE

INPUT FROM OUTPUT TO

Customer Service Sales & Marketing
Product Development

PROCESS MAP

PROCESS ROLE DEPARTMENT

Product Development Manager Design and Development
Customer Service personnel Customer Service
Sales Director Sales
Finance Director Accounts & Finance

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 STANDARD OPERATING PROCEDURES

Enquiry Processing
Process Flowchart

Receipt of enquiry No Check feasibility of

from customer for Is it a New enquiry with Plant
Start
new / existing customer? and Outsourcing
program Team
Yes

Send product specs

Receipt of feedback
to PD Team and
from concerned
consult on product
departments
feasibility

Accept / reject the

End
enquiry

Roles and responsibilities

Activity Department Responsibility TAT

Receipt of an enquiry Sales Concerned Customer As and when

Account Rep.

New customer – Initiate customer registration and Sales Concerned Customer Within 24
documentation Account Rep. HRS

Enquiry processing Sales Concerned Customer Immediately

Account Rep.
New program: Consult PD Team with product
specifications for feasibility

Existing program: Check for delivery timelines with

Factory / third party vendor

Respond to customer on receipt of feedback from PD Sales Concerned Customer Immediately

Team / Vendor Account Rep.

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1. Receipt of enquiry

An enquiry could be received from

i. New customer
ii. Existing customer

In case of an enquiry from new customer, the business information is collected from customer. Sales Manager (Account
representative) would validate the information on internet / company’s website to ensure that it is genuine customer.

2. Documentation

i. Upon confirmation, Account Manager (Sales Dept.) sends below documents to new customer:

a) New account opening form

b) Standard terms and conditions document

c) Price master / Brochure

ii. The customer fills in company details in the account opening form, sign it and send back to Account Manager (Sales
Dept.) over email / fax / by post.

iii. Account Manager reviews the information and sends it to Credit Controller for customer setup in system.

iv. In case of retail accounts / customers, the form is sent to Business Accountant for customer setup in system.

v. Note: Customer may also share their business terms with the company which is forwarded to Legal Department for
review. Legal Team decides whether or not the business terms are acceptable.

3. Processing enquiry

i. Based on specifications received from customer, Account Manager (Sales Dept.) identifies if the requirement is for an
existing program or a new program.

- In case of existing program, follow the process of ‘Pricing Finalization’.

- In case of a new program, the specifications are sent to PD Team to identify feasibility.

ii. For new customer, Sales Team scrutinizes the customer profile and decides whether or not to deal with the customer
from brand perspective.

iii. Upon receiving a response from PD Team (refer process of sample development), an acknowledgement is sent to
customer regarding acceptance or rejection of enquiry.

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Pricing Finalization
Process Flowchart

No
Send product specs Receipt of range
Add margins to Are margins Obtain approval of
Start to PD Team along plan (costing) from
overheads budgeted? Sales Director
with pricing request PD Team

Yes

Yes
Provide quotes to Approval
End
customer received?

No

Revise margins and

renegotiate pricing

Roles and responsibilities

Activity Department Responsibility TAT

Send product specifications to PD Team for obtaining Sales / Customer Concerned Customer / As and when
cost Service Sales Account Rep.

Prepare range plan for new product / program PD Team Manager Within 48 HRS

Add margins to overheads as per budget Sales Concerned Customer Immediately

Account Rep.

For non-budgeted margins, approve final prices / Sales Sales Director Immediately
margins

i. For each existing program, price master is updated in system. Also, for any exceptions (customer wise), a special
price is updated in system.

ii. However, for a new program, costing is received from Product Development Team in a standard template (range
plan).

iii. Based on program specifications and costing, a range plan is prepared for a new program.

iv. In liaison with annual sales budget, Account Managers (Sales Dept.) add margins to the overheads.

v. In case of non-budgeted margins, an approval of Sales Director is obtained over email / physical copy.

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 vi. Based on pricing finalized, Account Manager (Sales Dept.) quotes the prices to customer over email.

vii. Upon approval, the same is added in the system by PD Team. Refer to ‘Pricing Master Creation’ for details.

Credit Management
i. For a new customer, usually payment terms are not defined until first 3 orders / transactions.

ii. Based on customer’s purchase order and a corresponding WUK sale order, Proforma Invoice is generated and sent
to customer to make payment within 7 days.

iii. Once the payment is received from customer, goods are dispatched to customer.

iv. After 3 successful orders and corresponding timely payments from customer, a credit insurance application
process is initiated.

v. Account Manager (Sales Dept.) provides filled new account opening form to Credit Controller for application of
Credit Insurance.

vi. Credit insurance company, based on customer’s credit worthiness and other verification, assigns a credit limit.

vii. Upon receipt of credit limit, the same is updated in system against customer code.

viii. Accordingly, payment terms are assigned too and updated in system by Credit Controller.

ix. For large customers credit insurance is applied at the time of opening new account. This is done with approval
from Finance Director.

Refer to ‘Customer and Credit Management’ SOP for details.

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