DRAFT MANUFACTURER S REPRESENTATIVE ORGANIZATION PROGRAM PROCEDURES

Transcription

1 DRAFT MANUFACTURER S REPRESENTATIVE ORGANIZATION PROGRAM PROCEDURES Note: This document is subject to change without notice by Sharp Electronics Corporation. Interpretation of the procedures will be determined at the sole discretion of Sharp Electronics Corporation. I. Representative Sales Efforts a. Representative may call on end-user accounts in its territory as defined in the Manufacturer s Representative Program (MRP) Agreement. b. Representative may obtain orders for Equipment and on-going maintenance services. All Equipment orders (under an outright Purchase or under a Lease Plan) must be accompanied by a separate order for Maintenance services including supplies. Except for demo equipment, supplies may not be ordered through the Representative on a stand-alone basis. c. Representative may obtain equipment orders based on an Outright Purchase or under a Lease Finance plan. All orders are subject to credit approval. Representatives are to submit a Credit Application for each new end-user customer and may request pre-approval of an end-user customer by submitting a Credit Application prior to obtaining an order. When submitting the application, Representative must also advise Sharp of the amount of the credit line amount required to fill the customer order. d. The Representative is to submit end-user customer orders and/or finance company documents to Sharp, to include the following required items: i. Equipment Purchase: Order must be issued to Sharp by the enduser customer as follows: 1. Sharp Manufacturer s Representative Sales Order Verification and Order Checklist (SOV). The SOV form serves as a detailed description of the Equipment ordered along with any services (i.e. integration services). And it serves as a Purchase Order in which the customer is verifying what is ordered. Any items and/or services that are ordered by and expected by the customer must be indicated on this form. The customer must sign this form and it must be included in any order package. 1

2 2. Purchase Order form from Customer (The customer may have a procedure for issuing their own formal document). It must be accompanied by the SOV form described above. ii. Equipment Lease: Lease Orders must include the following: 1. Lease Agreement: Customer must sign a Lease Agreement and Schedule. Sharp has made arrangements for a Lease Program with one or more Finance companies designed for use by Representatives for their end-user customers. The preferred leasing companies are DLL and Wells Fargo. Sharp will provide documents for its established Finance Company programs. Representative may utilize any 3 rd party finance company with which it may have a relationship. Additional 3 rd party finance companies will be reviewed on a case by case basis and go through Sharp s credit approval process. 2. Finance Company Purchase Order: Should the Representative utilize a finance company not affiliated with Sharp, in addition to the lease documentation, Representative must obtain and include a Purchase Order, made out to Sharp from the 3 rd Party Finance Company utilized, covering the equipment, ordered under the Lease Agreement Note: Should there be any custom scope of work requirements that involve Sharp from an invoicing perspective; or require compensation to the Representative or any other party, Sharp must be advised in advance and agree in writing to any such special arrangements and pricing. Note: The SOV must be completed and signed for all orders, including Lease transactions. One form is required for each machine order. Upon receipt of an order (including Lease Agreement transactions), Sharp will process the order; arrange for shipment, delivery and installation of equipment; key operator training; and be responsible for equipment warranties. All equipment networking must be part of the order requirement. Note: All documents from customers (i.e.: SOV, formal customer Purchase Orders, etc.) are to be made out to Sharp, not the Representative. Under this Program, the Representative is obtaining orders directly for Sharp. Note: Lease Documents, although submitted to Sharp, are between the Finance Company and the end-user customer. Sharp is not a party to the documents. II. Order Administration (Order Processing / Invoicing / Representative Compensation) 2

3 a. Representatives are to submit all orders, questions or other correspondence to : snapcustomerservices@sharpsec.com b. Should Representatives have any questions, they may call Sharp s Order Administration Group at c. Upon receipt of an order, Sharp will process the order as follows: 1. Equipment Purchase: Upon receipt of a Sharp SOV or formal customer Purchase Order accompanied by an SOV (submitted by the Representative), Sharp Order Administration will: a. Check the document package to verify all required documents are included and that pricing is in accordance with the Representative base sale pricing or higher as published from time to time and subject to change. b. Check to see if customer has an established Account Number (and credit line). c. If not an established customer, forward the Sharp Credit Application to Credit Department for approval and establishing of a Credit Line. d. Once Master Data Department has assigned an account number and credit line to the end-user customer account, Order Administration will enter the order into Sharp s SAP system for shipment by (or to) the delivery and installation provider. The selling Representative code will also be entered to enable the correct Representative to receive credit for the transaction. e. Upon notification from the delivery and installation provider that the equipment has been installed, Sharp Order Administration will enter the installation information (Model & Serial Number and date of installation). The SAP system will then generate an invoice to the customer. f. Compensation due the Representative for the outright purchase of Equipment transactions will be calculated as any amount above the Representative s base selling price for Equipment. Such amount(s) will be placed into an accrual account for the Representative and remitted to the Representative on a monthly basis. Should there be any equipment order terminations or other credits issued to the customer against the amount invoiced for Equipment or Maintenance, Sharp will have the right to 3

4 reduce the compensation remittance in any month by the amount of compensation paid based on such credit issued. 2. Equipment Lease: Upon receipt of Lease Documentation signed by the Customer and a completed SOV (all submitted by the Representative), Sharp Order Administration will: A. Finance Company Review / Set-up a. Order Processing will check to see if the Finance Company has an established Account Number (and credit line) with Sharp. b. If not established with Sharp, a credit application for the Finance Company must be submitted by the Representative. Order Administration is to forward the Credit Application to Credit Department for approval and the establishing of a Credit Line and an Account Number. c. Master Data Department will advise Order Administration of the approval of the Finance Company, the Credit Line assigned, and of the Account Number. B. Documentation Review a. For Sharp established program Finance Companies (i.e.: DLL & Wells Fargo), customer completed documentation such as the Lease Agreement; Credit Application, etc.; and Representative completed information such as the SOV, are to be submitted to Order Processing. Order Processing will submit the package to the Finance Company for review, approval and the issuance of an Order to Sharp. Note: For Sharp established Finance Companies, Sharp will provide the required documents to Representative in hard copy for or have such information available through website access. b. For Representative arranged Finance Company, in addition to the above, the following must be included: i. Credit Application for the Finance Company; ii. Finance Company Purchase Order made out to Sharp Electronics covering the purchase of equipment under the 4

5 customer transaction (Equipment selling price to be financed). c. Order Administration will review the documentation package submitted by the Representative. For established Sharp Finance Companies or once Credit Department has assigned an account number and Credit Line to the Representative Finance Company, Order Administration will forward all leasing documentation to the Finance Company for approval or confirmation of approval. d. Upon approval from the Finance Company, Order Administration will enter the order into Sharp s SAP system for shipment of Equipment by (or to) the delivery and installation provider. The selling Representative code will also be entered to enable credit for the transaction to be provided to the correct Representative. Note: If the Representative submits the signed lease documentation order from the customer along with an approval Purchase Order from the finance company (made out to Sharp), all such documentation may be forwarded to Sharp at one time to expedite processing. However, if the finance company was not previously credit approved by Sharp or does not have a large enough line to cover the transaction, such approval and establishing of the credit line will have to be completed to continue processing the transaction. If such approval can not be achieved, Sharp may need to negotiate (with Representative assistance) payment in advance by the Finance Company or return the documents to the Representative and request new finance company documentation. C. Lease Buyouts a. Should a Customer have equipment currently on lease that has not completed its term, and a buyout payment to the current finance company is required to early terminate such equipment lease, the buyout amount may be added to the Equipment selling price of the new Lease. b. A letter from the current Finance Company must be included in the package that provides the buy-out amount payable and a date by which such payment is to be made. c. Buyout amount information is to be indicated on the SOV along with an official buyout letter from the original finance company. d. Sharp s approved finance companies will fund Sharp its Equipment price; and remit the amount of the buy-out portion of the new lease to the prior Finance Company. 5

6 e. For all other scenarios, the buyout will be paid to the Representative by Sharp through the commission process. The Representative is responsible for paying the prior finance company. f. The customer will be responsible for any obligations it has, in accordance with its agreement with prior Finance Company (such as to return the old equipment). D. Representative Compensation for Leased Equipment a. Compensation due the Representative for the transaction will be calculated as any amount above the Representative s base selling price for Equipment. b. Compensation amount(s) will be placed into an accrual account for the Representative and remitted to the Representative on a monthly basis. Should there be any equipment or maintenance order terminations or other credits issued to the customer against the amount invoiced for Equipment or Maintenance, Sharp will have the right to reduce the compensation remittance in any month by the amount of compensation paid based on such credit issued. 3. Maintenance Agreement Addendum: All orders for Equipment must be submitted with an order for Maintenance (Sharp Maintenance Addendum). Sharp reserves the right to reject orders for Equipment that is not accompanied by a Maintenance Agreement order. Upon receipt of a completed Sharp Maintenance Agreement providing for services to equipment acquired under an Equipment Purchase or Equipment Lease plan, Sharp will enter required information into the SAP system. Sharp will notify the appropriate Service Provider of such maintenance coverage for the specific Equipment. For Equipment installation in an area serviced by a direct Sharp branch office (Sharp Business Systems), the responsibility for ongoing service support will be arranged through the Sharp Business Systems office. Service needs outside Sharp Business Systems locations will be provided by an approved 3 rd party service provider. A. Maintenance Pricing Maintenance Agreement pricing Representative may utilize in developing Maintenance Agreement pricing to the customer is based on a minimum fee and excess copy fees to be charged in accordance with price sheets provided 6

7 to Representative and subject to change from time to time. Maintenance Agreement pricing is based on Quarterly or Monthly invoicing. All base pricing published for Representatives may be marked up to the customer by the Representative. B. Representative Maintenance Compensation All base Maintenance pricing published for Representatives may be marked up to the customer by the Representative. Any customer pricing difference over the base Maintenance pricing and per Copy Fees published for Representatives will be earned by the Representative as compensation and will be remitted based on the month of invoicing. Actual compensation amounts for maintenance will be calculated based on the actual number of copies / prints made on the specific Equipment multiplied by the per-copy price differential between the per-copy-fee charged to the customer less the Representative base per-copy-fee. Such amount(s) will be placed into an accrual account for the Representative and remitted to the Representative on a monthly basis. Should there be any equipment order terminations or other credits issued to the customer against compensation amounts remitted to the Representative for Equipment or Maintenance, Sharp will have the right to reduce the remittance in any month by the amount of such credit issued. C. Maintenance Invoicing The SAP system will generate an invoice to the customer on a monthly basis for the base monthly maintenance fee and any overages based on meter readings reported by the Representative. The SAP system will also generate a compensation credit or payment to the Representative (calculated as any amount due to the Representative, which is above the base maintenance price). III. Trial Program / Demonstration Equipment Representatives that have a facility for bringing in prospective customers for equipment demonstration will be allowed to request a limited number of lowrange to mid-range Models on a consignment basis for demonstration purposes. Approval will be on a case-by-case basis. Procedures guiding such consignment of equipment will be as follows: a. Requests for Trial Program / Demonstration Equipment 7

8 1. Requests will be made by Representative, in writing, using the Sharp Property Loan Order Form to be submitted to Order Administration at the address indicated in Section IIIa above. 2. Order Administration shall obtain approval to ship the consignment Equipment to the Representative from the Senior Vice President of Sales. 3. Upon approval of the Sharp Property Loan Order Form, Order Administration will arrange for shipment of the Equipment to the Installation Provider for delivery and installation of the Equipment at the Representative facility. 4. Equipment will remain on consignment for a period of up to six (6) months after installation. At the end of the six (6) month consignment period, the Representative must arrange for one (1) of the following: i. Sell the Equipment The Representative may sell the consignment Equipment to an end-user customer under the Equipment Purchase or Equipment Lease provisions indicated above. The calculation of compensation to be paid to the Representative will be as described under the provisions above except that the Representative base price will be reduced by fifteen (15%) percent. ii. Purchase the Equipment; Representative will accept an invoice for outright purchase of the Equipment at the Representative base selling price provided for under the Manufacturer s Representative Program Agreement less a discount of twenty-five (25%) percent. b. Supplies for Trial Program / Demonstration Equipment Representative shall order supplies from Sharp for the consignment equipment at the base Supplies pricing provided to Representative. Such orders are to be placed utilizing the Purchase Order as described under Section III a. c. Maintenance of Trial Program / Demonstration Equipment 8

9 Maintenance of the consignment equipment will be arranged for at a price to be negotiated directly between the Representative and the Service Provider. IV. Representative Training Upon the execution of the Manufacturer s Representative Organization Agreement: a. Marketing Sharp Marketing will send a welcome package to the Representative to include materials (i.e.: product information) required to engage in the sales process. b. Sales Training Sharp will contact the Representative to arrange for hands-on equipment sales training. V. Miscellaneous a. Representative Additional Duties This Representative program is based on the Representative only soliciting and obtaining sales in the assigned territory under the Manufacturer s Representative Organization Agreement. Should the Representative assume additional responsibilities or provide for additional services such as delivery and installation of equipment, assistance with connectivity to the customer network, or the provision of on-going maintenance and supplies services, a separate agreement will be required and applicable procedures will be provided. b. Sharp Additional Activities Upon receipt and processing of a customer order, Sharp will make all arrangements for shipment of products; installation of equipment; key operator training; integration services and ongoing maintenance services. Sharp may work with the Representative for the Representative s provision of some of these services. END OF REPRESENTATIVE PROGRAM PROCEDURES DRAFT 11/13/12 9