MAGNECRAFT DISTRIBUTOR HANDBOOK - SE Relays Distributor... · authorized distributor is given to...

www.serelays.com

MAGNECRAFTDISTRIBUTOR HANDBOOK

One Team. One Vision.2

Schneider Electric is committed to our distribution channel and will provide assistance in the form of sales and technical support, product training, marketing collateral and web-based tools. It is our belief that nurturing the partnership with our distributors will create a competitive advantage and maximize sales for both of us.

With that in mind we assembled this handbook to include details on our distribution program and policies. This information is also available on-line through our distributor-only portal.

Our inside team and partner manager are available to assist your sales efforts. Please take advantage of our knowledge and experience along with all of the tools that we have to offer. Our objective is to create a mutually beneficial selling environment.

Introduction

Magnecraft Distributor Handbook 3

Table of Contents

COMMITMENTSCustomer Service & Technical Support .......................................4Marketing & Sales Support .......................................................4Selling Direct ..........................................................................5Selective Appointment .............................................................5

DISTRIBUTOR PROGRAMFair & Equitable Program .........................................................6Preferred Vendor Status ............................................................6Authorized Distributor Qualifications .........................................7Point Of Sale Information .........................................................7Pricing ...................................................................................8Price Structure .........................................................................8Benefits Of Being An Authorized Distributor ................................9

POLICIESOrdering ..............................................................................10Inventory levels .....................................................................11Lead Times ...........................................................................11Ordering Alternatives ............................................................11Restocking Fee ......................................................................11Stock Rotation .......................................................................12Co-Op Advertising ................................................................13Return Manufacturer Authorization (RMA) Process .....................13Payment ...............................................................................14Price Exceptions ....................................................................14Price Protection .....................................................................15Product Obsolescence............................................................15Termination...........................................................................15

RESOURCESDistributor Portal ...................................................................16Website...............................................................................18 Contacts ..............................................................................19


Schneider Electric provides innovative solutions through the continual launch of new products and sales tools. We are committed to be a major relay supplier in the electronic relay market. We realize that our success is dependent on developing and maintaining strong relationships with our distribution partners.

Our strategy is to grow sales with distributors that have mutually inclusive objectives. Working together toward common goals is the best way to achieve success in a highly competitive environment. We recognize that each partner offers their own unique positioning in the marketplace. For each of us to benefit, Schneider Electric strives to match our strengths with yours.

In order to support our channel we make the following commitments:

CUSTOMER SERVICE & TECHNICAL SUPPORT

Schneider Electric is committed to total customer satisfaction. We will provide exemplary customer service and technical support via the telephone, web and e-mail communications. Our customers can be assured they will receive thorough and timely support.

We invite you to comment on the quality of your experience with our organization by filling out a survey online. (See page 19 for URL.)

MARKETING & SALES SUPPORT

Schneider Electric is committed to the success of our distribution partners. We will provide product training for your personnel and our mutual customers to enhance our sales opportunities. Schneider Electric also provides digital catalogs, brochures and web-based tools to assist your promotional efforts.

Commitments


SELLING DIRECTSchneider Electric is committed to distributors as our primary sales and marketing channel and firmly believes that the vast majority of customer needs can best be met through our distributor partners.

Sometimes commercial conditions dictate that a manufacturer sell direct. Schneider Electric reserves the right to do so, if in Schneider Electric’s sole judgment such action is necessary.

SELECTIVE APPOINTMENT

Schneider Electric chooses to partner with quality distributors who have a mutual desire to work together to grow our businesses with the Magnecraft product line. Selective appointment of authorized distributors and re-distributors allows us to provide superior support and enables us to increase brand value by focusing our collective efforts.


FAIR & EQUITABLE PROGRAM

The Distributor Program is designed to effectively reach and service today’s industrial relay market. The program is a culmination of distributor input and the consolidation of multiple programs into a single, equitable program. In consideration of the needs for both ourselves and our partners, we developed a simple, concise, and fair model.

The program reinforces our commitment to our distribution partners and our strategy of “One Team. One Vision.”

PREFERRED VENDOR STATUS

Schneider Electric believes that long-term growth can only be achieved through close cooperation with our partners. This cooperation is enhanced when distributors position Magnecraft products as a preferred line.

Although we recognize that some distributors may choose to carry competitive products, we will not appoint or retain a distributor or re-distributor whose attention to a competitive line is likely to result in poor representation of Magnecraft products and a diminished ability to compete aggressively against other brands. Appointment as an authorized distributor is given to distributors who will stock, promote, and sell Magnecraft products as a preferred line.

Distributor Program


AUTHORIZED DISTRIBUTOR QUALIFICATIONS

Schneider Electric requires the following to become an authorized distributor:

• Purchases minimum of $30K annually, per location.

• Commits to minimum growth target of 5% year-over-year.

• Carries a broad Magnecraft product line (about 80% of product categories).

• Carries more than 70 different Magnecraft sku numbers.

• Turns Magnecraft inventory 3 to 5 times per year.

• Provides complete Point-of-Sale Reports.

POINT OF SALE INFORMATION

Schneider Electric requires distributors to provide point-of-sale information as part of an ongoing process of market and product evaluation and development. We use the data to provide sales credit to our sales force in order to recognize and reward branch level support. The data also gives us a better understanding of our customer base and is necessary for a successful partnership with our distributors.

Schneider Electric maintains the right to collect information from our partners regarding customer preferences, products sold, inventory and market forecasts. All information submitted to Schneider Electric will be managed with care and confidentiality.

Schneider Electric requires the following point of sale information:

• Distributor Name • Part number

• Company Name • Quantity

• City • Distributor purchase price

• State • Distributor extended purchase price

• Zip • Month / Year


Distributor Program

PRICING

The intent of the Distributor Program is to increase revenue and profitability for both parties. Working towards these goals Schneider Electric provides you with competitive products by streamlining overhead, creating efficiencies and focusing on customer requirements.

PRICE STRUCTURE

To concentrate our efforts on our core competencies, we designed a column-based pricing structure to reward distributors that promote and stock Magnecraft products. By encouraging fewer and larger purchase orders we are able to maximize our efficiency, contain costs and meet on-time delivery expectations. Relying on our partners to inventory and distribute our products allows us to focus on new product development, marketing activities and product support.

Please refer to the latest price book for all pricing information.


BENEFITS OF BEING AN AUTHORIZED DISTRIBUTOR

Becoming an Schneider Electric authorized distributor allows you the following benefits:

• Product training – receive valuable training on Magnecraft products from our support team to help you better serve your customers. (See page 19 for contact information.)

• Sales support – receive sales support for key accounts (See page 19 for Partner Relationships Manager)

• EDI support – submit purchase orders and receive invoices electronically.

• Stock rotation allowance – return or scrap a percentage of your Magnecraft purchases. (See page 12 for more information.)

• Co-op advertising funds – funds allocated for the advertisement and promotion of Magnecraft products. (See page 13 for more information.)

• Distributor portal – access valuable tools to help purchasing agents and inside sales personnel save time. (See pages 16-18 for more information.)

• Online inventory listing – display your available Magnecraft inventory and link to your e-commerce site (if available). Requires setup with netcomponents.com.

• Web-based tools – place our interactive demo tools on your web site.


ORDERING

Please include Schneider Electric SKU number AND part number on all purchase orders.Requirements:

• 10 piece minimum order requirement for all standard products.

• All orders must be placed in minimum quantities of 10.

• $200.00 minimum per purchase order.

• 100 Piece minimum per part number for build-to-order items (specials/NCNR) except: 30 piece minimum per solid state NCNR part number and per 199 Series NCNR part number.

• Orders of 500 pieces must ship in their entirety to receive 500+ quantity price break. (No scheduling permitted.)

• Drop ship orders must meet minimum order requirements per drop ship location and ship to US addresses only.

Cancellation of standard items (price book items):• Cancellations will be accepted without penalty provided:

1. Quantity is equal to or less than 1,000 pieces.2. Products are not on the NCNR list.3. Cancellation request is received in writing within 10 days of

order placement and order has not shipped.

• After 10 days, orders over 1,000 pieces are strictly non-cancellable and non-returnable in their entirety.

• Cancellation charges may apply for all other cancellations.

Cancellation of build-to-order items:

• Orders for build-to-order items are strictly Non-Cancellable and Non-Returnable (NCNR) in their entirety.

Order rescheduling:• Rescheduling is permitted without penalty provided:

1. Schneider Electric receives written notice at least 8 weeksprior to scheduled ship date.

2. AND the revised ship date does not exceed 90 days past the original ship date.

3. Distributor is limited to two reschedules per line, per PO.

Policies


INVENTORY LEVELS

Schneider Electric is dedicated to insuring that Magnecraft stock is available as needed to meet normal distributor stocking requirements. We strive to maintain available inventory for all standard products (as indicated in our price book). Manufacturing and inventory quantities are determined based on historical order volumes. To insure that your large customer needs are met, please contact ourPartner Relationships Manager or our customer service department to establish an appropriate delivery plan. Schneider Electric reserves the right to limit the shipment quantity in any four week period for non-forecasted orders of part numbers that farexceed our norms.

LEAD TIMES

Lead times for build-to-order, non-cancellable/non-returnable (NCNR) products are typically 18-20 weeks from the date Schneider Electric receives the order.

ORDERING ALTERNATIVES

We recognize that occasionally our distributors may need to order Magnecraft products in quantities or dollar values below our minimum order requirements. In these instances we will direct you to our redistribution partners who will be able to assist you. These partners do not compete by selling directly to end-users. (See page 19 for contact information.)

RESTOCKING FEE

Schneider Electric reserves the right to charge distributors a 20% restocking fee for returned products that are not covered by the Stock Rotation policy. Any such returns are at the sole discretion of Schneider Electric and require pre-approval by Schneider Electric.

2. AND the revised ship date does not exceed 90 days past the original ship date.

2. AND the revised ship date does not exceed 90 days past the original ship date.2. AND the revised ship date does not exceed 90 days past the original ship date.

STOCK ROTATION Stock rotation allowance is calculated at three percent (3%) of the total qualified purchases from the previous calendar year.*Stock rotation allowances DO NOT carry over to the next year. Requirements:

• Two stock adjustments are permitted per calendar year.

• Schneider Electric reserves the right to split large stock adjustments into two adjustments that are six months apart.

• Schneider Electric reserves the right to limit the maximum number of pieces per part number allowed per stock rotation and/or adjust allowable credit to compensate to correlate to published purchase

quatntity price breaks.

• Non-cancellable, non-returnable (NCNR) products are not allowed in stock rotation.

• Date of shipment from Schneider Electric cannot be more than two years from the date of the stock rotation request.

• Products must be in complete and original packages of ten pieces • Final list of products must be approved by Schneider Electric. • An offsetting order of equal or greater value must be placed.

Information required for stock rotation requests: • Schneider Electric sales order number

(if not available, the purchase order number is acceptable) • Magnecraft part number • Magnecraft SKU number • Quantity purchased • Unit price • Extended amount • Date purchased

Schneider Electric will issue a Stock Rotation Agreement for the approved products requiring the signature of an authorized distributor representative acknowledging the terms of the credit, including product disposal. Returned product be in new condition and in its original packaging. A credit memo will not be issued until the product list has been approved by Schneider Electric, the agreement has been signed, an offsetting order has been submitted and the product has been returned and validated.The offsetting order will be processed at the same time as the credit memo is issued.

12 One Team. One Vision

12 One Team. One Vision.


Policies


CO-OP ADVERTISING

Co-op advertising funds are calculated at one percent (1%) of the total qualified purchases from the previous calendar year.* Funds DO NOT carry over to the next year. Requirements:

• Distributor must contact Schneider Electric’s Marketing Department to determine available Co-op fund allowance BEFORE advertising.

• Distributor must provide matching funds for any co-op marketing activity.

• Distributor must submit a sample of the proposed advertisement or promotion to our Marketing Department.

• Only authorized logos and images may be utilized.

• All requests must be reviewed by Schneider Electric Marketing for final approval.

A credit memo will be issued once your request is approved by Schneider Electric. If you have any questions, please contact our Partner Relationships Manager. (See page 19 for contact information.)

*Qualified purchases apply to purchases based on published pricing discounts.

RETURN MANUFACTURER AUTHORIZATION (RMA) PROCESS

Requests for return authorizations should be submitted to the Schneider Electric Customer Service department. (See page 19 for contact information.)

Information required for RMA requests:

• Original purchase order number.

• Quantity of product.• Description of issue.

• Pictures or documentation of issue if available.

A customer service representative will determine whether an issue is related to product performance or inventory/order entry and then provide applicable instructions on how to proceed.


PAYMENT

Schneider Electric adheres to a common payment policy for all of our customers. Our standard terms are:

• Net 30 days – No discounts available for early payment.

• All invoices must be paid in full. Short pays are not accepted.

• Credit is given based on payment history and a percentage of total sales from the previous calendar year.

PRICE EXCEPTIONS

Schneider Electric will provide quotes in order to meet competitive prices on large orders. In order to receive a price quotation, distributors carrying competing lines must declare in advance whether they will bid and supply only Magnecraft products for the project in question.

For any given project, Schneider Electric may refuse to quote a distributor that does not indicate in advance its intent to bid only Magnecraft products on that specific project job. This policy does not prevent Magnecraft multi-line distributors from bidding their competing lines on project jobs. Once a distributor has declared its intent to support Magnecraft products for a specific situation, Schneider Electric will expect that distributor to refrain from submitting a competing bid on that same project.

Requirements for submitting a quote request:

• Customer name and location

• Application type

• Magnecraft part number

• Estimated annual usage

• Competitive brand, part number and price

14

Policies

15

PRICE PROTECTION

Schneider Electric will provide at least 30 days written notice to distributors in advance of any change in price for items in the current published Price Book. Orders will be billed according to the prices in effect at the time of the order entry.

PRODUCT OBSOLESCENCE

Upon request, Schneider Electric will work with distributors to either sell or return standard Magnecraft product within 30 days of an obsolescence notice. This policy does not apply to products that were purchased as non-cancellable/non-returnable (NCNR). For a reasonable period of time after discontinuance of a product, Schneider Electric will also assume responsibility for servicing that product.

It is our objective to provide at least 30 days written notice to our distributors in advance of any product discontinuance.

TERMINATION

As stated in our Distributor Agreement, either the distributor or Schneider Electric may terminate the distributor relationship after written notice by either party to the other. Although both Schneider Electric and our distributors have the contractual right to terminate the distributor relationship at will, without cause, it is our practice to attempt to resolve disputes or misunderstandings with our distributors. However, continued disagreement or violation of the policies listed in this policy manual may result in termination of the distributor relationship.

In the event of termination without cause, we will make reasonable efforts to help the distributor dispose of his existing inventory of Magnecraft products. In doing so, Schneider Electric shall not incur any obligation to accept the return of this inventory for credit on any basis whatsoever.

Magnecraft Distributor Handbook

DISTRIBUTOR PORTAL In order to meet the demanding requirements of our industry, the Schneider-Electric web site includes a unique distributor portal which allows authorized distributor product managers, purchasing agents and inside sales personnel to view orders, access pricing and check inventory.

ACCESS Authorization is required in order to utilize the distributor portal. Contact our Marketing Department for information on authorization. (See page 19 for contact information.)

After you have created an account, you will access the distributor portal by logging in at the top of the home page.

DISTRIBUTOR PORTAL HOME PAGE


Resources

Manage My Account– Save and update your contact information for ordering samples.

FEATURESutPurchasing Portal res

View Orders – Simplify your workflow and save time by quickly searching and viewing details on your open and closed orders.

Pricing & Availability – Quickly find answers to your price and availability inquiries. The prices shown in the portal are the prices agreed upon between the distributor and Schneider-Electric.

News & Announcements – Stay up-to-date by viewing important news and announcements from Schneider Electric listed on the home page of the distributor portal.

Change Notice Library –Keep track of Schneider-Electric product change notices. Includes the following information; changes in ratings, recommended or direct product replacement, physical changes, and obsolete product notices.

Order Free Samples – Order samples at no charge to provide to customers that need parts to evaluate for OEM projects.

Image Gallery – View or download up-to-date photos of Magnecraft Relays.


PURCHASING PORTAL

• Enter Orders online • Real time product availability • Factor Lead Time for orders exceeding on-hand inventory

• Opportunity to check errors prior to submission

Purchasing Portal Image

WEBSITE

www.SErelays.com

Key Features:

• Parametric search (product selector)

• Product call to action page; includes links to associated products, documents, 2D line drawings, 3D CADmodels, and distributor inventory

• Cross Reference search(competitive and Magnecraft)

• Interactive online eCatalog

• Interactive tools and learning modules

•Distributor Inventory search/display with links to associated web sites

• Check a Product- access to Schneider-Electric Global website to check REACH (SVHC-Substance of Very High Concern) RoHS status by part number.

• Customs and Logistics information (support tab)

Resources


http://www.serelays.com/�

Divisional Headquarters

Cindy Pilch, Partner Relationships Manager

Customer Service Department:

Phone: 847-441-2540 | Fax: 847-881-0741

E-mail: [email protected]

Peter Hess, Customer Service Manager

Marketing Department: Contact for assistance with web site and catalog updates, and the use of logos and graphics.

Phone: 1-847-999-2701 Email: [email protected]

Colin McElligott, Marketing Coordinator

Redistribution Partner:

Genie Group – Jeff Paine

300 Beasley Drive, Suite 100, Franklin, TN 37064 USA Phone: 615-771-9412 | Fax: 800-322-3113 E-mail: [email protected] | Web site: www.geniegroup.com

Survery URL:

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Contacts

mailto:[email protected]�

http://www.geniegroup.com/�

Document No. 900BR16-0114D Rev. 3

Solutions and InnovationWith a reputation extending for more than 50 years the Magnecraft brand has become known for leading edge and cost-effective relay solutions. Purchased by Schneider Electric in 2005, the product line continues its path of excellence becoming a leading name in the electronics industry for industrial relays.

Through our ongoing commitment to innovation, quality and application support we provide customers with a broad range of products and the tools to easily incorporate them into their systems. From start to finish we simplify the process for product selection and incorporation of 3D models into final drawings.

We constantly monitor the world market for new ideas, exciting applications and evolving customer requirements. Our dedicated engineering department ensures that new products are regularly launched in order to keep us at the leading edge of our industry.

Our goal is to be your preferred provider of industrial relays, sockets and control products. To reach this goal Schneider Electric will continue to develop a steady stream of new products to enhance our full line of industry standards, so

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