Exclusivity Agreement lists possible restrictions between Customers, Vendors, Products, Product Range and/or Countries in the scope of business. It also helps track the status of each exclusivity granted.
This SOP will list the steps on how to create the various Exclusivity Agreements.
Getting started with Exclusivity Agreement
There are three types of exclusivity that can be created in the system to provide more information on the limitations as well as provide reminders on status tracking of exclusivity granted.
Each Exclusivity Agreement includes two or more of the following aspects:
Customer
Vendor
Product
Brand
Product Range
Country
The following are the types of Exclusivity Agreements in the System:
AdvaCare Granted Exclusivity: AdvaCare granted exclusivity generally ties to a written Agreement citing a list of restrictions granted (generally geographical) for a Customer as a commitment for avoiding granting new distributorship within the scope of restriction. The validity of the Agreement is based on the agreed upon Customer’s performance, generally in the metric of sales volume, be it in the quantity of product ordered or yearly revenue target.
For example: AdvaCare provides exclusivity for Country A to Customer B for product range C under the terms that $XXX amount of order value is to be achieved annually. If the terms of agreement are met, AdvaCare will not pursue new Customers in this market for the same product range. If the terms of agreement are not met, AdvaCare has the right to pursue other Customers in this market for the same product range.
Factory Exclusivity: Factory exclusivity lists the Vendor’s terms with parties outside of AdvaCare, which can present restrictions in working in a certain market/product range with the particular Vendor.
For example: Vendor A has exclusivity with their own customer in market B for all its products. As long as the exclusivity is valid, AdvaCare cannot work together with Vendor A for this market and therefore can focus on working with other Vendors.
Country Exclusivity: Country exclusivity is a restriction put in place by a country government that restricts multiple facets of a country registration/distributorship. Few markets have Country Exclusivity in place, but when working with country exclusive markets, certain precautions must be taken.
For example: Country A has a restriction in which only one importer may represent one product Brand. When AdvaCare registers the “AdvaLife” brand with a Customer, no other Customers in Country A can register the same product range under the “AdvaLife” brand.
Creating Factory Exclusivity
1. Locate Registration Module.
2. Click "Exclusivity Agreement" dropdown and select "Factory".
3. Click "CREATE" on top of the screen.
4. Fill in the following fields:
a. Reference
Leave as "New", the System will automatically assign an EXC number.
b. Type
Select "Factory".
c. Vendor
Type the name of the Vendor and choose the right option from the dropdown.
Note: Choose existing Vendor from the dropdown, NEVER create a new Vendor. If the required Vendor is not showing in the dropdown, ask Purchasing Dept. Manager to create the Vendor.
d. Registration Country
Type the name of the Country and choose the market in which Exclusivity Agreement is granted from the dropdown.
Note: Choose existing Country from the dropdown, NEVER create a new Country. If the required Country is not showing in the dropdown, ask Business Development Dept. Manager to create the Country.
e. Registration Agreement
Type and select the RA number if the Exclusivity Agreement is tied to a specific Registration. This field is not mandatory to be filled.
f. Issue Date
Fill in the date in which exclusivity is officially granted and in effect.
g. Expiry Date
This field is not mandatory to be filled. It is only to be filled when Vendor has provided information that their exclusivity agreement has expired and no longer in effect.
h. Exclusivity Type
Select one or more exclusivity types applicable for the Exclusivity Agreement. Two or more types can be applicable concurrently. Following is some explanation on each Exclusivity Type:
• Product Category – refers to a product range, can be as wide as for example "all pharmaceutical products" or as narrow as "all pharmaceutical tablets".
• Product – refers to a specific product existing in the ERP under a product code.
• Brand – N/A
• Vendor – N/A
i. Description
This is not a mandatory field. It may be used to provide more information on the points that will be mentioned below under No. 5.
5. Fill in the "Products" tab on the bottom of the page. Click "Add a line", a table row will appear showing the fields: Product, Brand, and Range. At least one of the fields have to be filled corresponding with the Exclusivity Type selected above.
• Product – to be filled for Exclusivity Type: Product, type the product code and select the correct product. Continue by clicking "Add a line" for every additional product.
• Brand – to be filled for Exclusivity Type: Brand, input the brand name with accurate spelling, capitalization and spacing. Continue by clicking "Add a line" for every additional brand.
• Range – to be filled for Exclusivity Type: Product Category, type the product range and select the correct product range. Continue by clicking "Add a line" for every additional product range. NEVER create a product range. If a specific range is not applicable from the options, select a wider range option and include the remaining information on the Exclusivity Agreement Description.
6. Click "SAVE".
7. Move the pipeline to "IN EFFECT".
Note: If Exclusivity Agreement is not moved to "IN EFFECT" stage, it won’t be visible in any other place in the ERP (such as Customer page, Country page, Vendor page, etc.).
Application of Exclusivity Agreement Database
The database has different purposes for each department and how this information is to be utilized. This SOP breaks down the objectives of the database and guideline on how to navigate them.
Objective: Confirming that no restrictions may be present when working on an RFQ for a new Customer, Country or Product range.
Steps:
Locate “Countries” under the Registration Module.
Search and click on the Country of interest.
Click on the “Exclusivity Agreements” tab. All different exclusivity types will be present in the shown table, as well as status of EXC.
More information about each EXC can be viewed from corresponding tabs: Factory Exclusivity, AdvaCare Exclusivity, Country Exclusivity.