Unit Run Canteen – Frequently Asked Question (FAQ)During Quarterly URC Meeting

Unit Run Canteen – Frequently Asked Question (FAQ)
During Quarterly URC Meeting

17.1 QUESTION NO.1 : ISSUE OF SUBSTITUTE/FORCE ISSUE OF ITEMS

Issue of substitute items of General Stores including force issue of New Introduction Items on credit basis is not allowed except for liquor items with prior consent of URC since URC‟s come to depots after depositing necessary excise/import duties with state Govt in addition also their monthly quota will lapse in case of non availability and non collection. Refer letter No. 2/MS-13160/3553 dated 18 Dec 2017 placed at Appendix 4B.

17.2 QUESTION NO.2 : INTRODUCTION OF COMPUTERS AND MOBILE PHONES ETC.

Due to rapid up gradation of the models consequent to technological advancement and frequent changes in prices, manufacture of mobile phones and computers are reluctant to offer their products. Endeavours are being made to persuade mobile phone manufacturers to enlist their products in CSD.

17.3 QUESTION NO. 3: SHORT SHELF-LIFE ITEMS

(a) As per the norms of the department, items having less than 50% residual self lifewill not be issued to URC‟s.

(b) All concerned in the supply chain are to ensure that FIFO system is followed meticulously to avoid denials, loss of sales and consumer dissatisfaction. At times due to slow movement of the item at the URC level the shelf-life expires before the item is sold to the end consumer which results into loss of URCs limited resources. URCs are to plan their indents in a realistic manner to avoid such a situation.

17.4 QUESTION NO. 4 : AFTER SALES SERVICE

For after sales services, customer has to approach firm through email or at the contact address provided on the products. In case the firms do not respond, customer can approach concerned CSD Area Depot or MS Branch, CSD HO, Mumbai for further action.

17.5 QUESTION NO. 5 : BREAKAGE/DAMAGE OF ITEMS

Any complaint with regard to breakage/damage of items should be supported by Board Proceedings of Board of Officers (BOO) detailed to check the consignment immediately on its receipt by the URCs. This should be countersigned by the Unit Commander and same should be submitted within one month from the date of collection of stores. Each case will be examined on its merits and resolved accordingly. However, as per the latest guidelines losses up to Rs 300 per item should be treated as petty losses and same be adjusted from the QD. Refer MS Branch letter No. 2/MS/13125/KKD/1170 dated 04/07/15 placed at Appendix 8D.

17.6 QUESTIONS NO. 6 : NON-AVAILABILITY OF WINE, CHAMPAGNE, SCOTCH WHISKY AND BREEZERS

The labels and brands of liquor are to be registered with the Excise Department of concerned State Government for supply of items to CSD as well as in the civil market. Owing to the meager sale potential and short shelf life, some of the labels and brands are not registered which is the main reason for non availability of certain brands of wine, champagne, scotch whisky and breezers. However, CSD is consistently insisting all stake holders to provide maximum brands of liquor to achieve highest customer satisfaction.

17.7 QUESTION NO. 7 : NON-AVAILABILITY OF AFD DEALERS

The manufacturers appoint dealers for servicing the CSD clientele in all the locations in India, while offering their products for enlistment. The dealers are generally those who are appointed for the civil trade also. Hence, extensive dealer network for CSD clientele are available. However, based on the feedback of the customers, the manufacturers change the dealers from time to time and also expand their dealer network. Any addition to the dealer network based on the feedback of the clientele will be appointed in specific location in consultation with the firm. Regional Managers of CSD on the recommendation of the Area Manager of CSD Depots are empowered to approve such new dealers.

17.8 QUESTION NO. 8 : DEFICIENCY OF ITEMS IN SEALED CASES

Any complaint with regard to deficiency of items/wrong accounting from the factory packed/pre-packed cases should be supported by Board Proceedings detailed to check the consignment immediately on its receipt by the URCs. This should be countersigned by the Unit Commander and same should be submited within one month from the date of collection of stores. Each case will be examined on its merits and resolved accordingly. Simultaneously, the Depot take up the matter with concerned firms to avoid recurrence of such complaints in future. However, as per the latest guide lines losses up to Rs 300 per item should be treated as petty losses and same be adjusted from the QD. Refer MS Branch letter No. 2/MS/13125/KKD/1170 dated 04/07/15 placed at Appendix 8D.

17.9 QUESTION NO. 9 : SUBSTANDARD PACKING

CSD products undergo periodical testing and in case of complaints, testing of the product is undertaken. Firms are constantly pursued to improve the inner, outer packing including shrink-wrap to withstand the transit hazards. The improved packing is approved by CSD and the supplies are monitored at the depots. Any suggestion/complaint from the units is evaluated at CSD HO and corrective action initiated in consultation with the firms.

17.10 QUESTION NO.10 : TNA ITEMS (TEMPORARILY NOT AVAILABLE)

Due to non-availability of certain items at the time of extension of URC indents a remark is endorsed in the indent/invoice/bill of supply as “Temporarily Not Available” (TNA), so that at the time of collection if the item is available the depot can issue a follow-up DO‟s for the TNA items to avoid denial as well as derive consumer satisfaction. Depots are also issuing bulletins informing products not likely to be available due to various reasons which are also highlighted by them during URC meeting and liaison visit to the units. Efforts are made at all levels at CSD HO, Depots and RMs to ensure that those products temporarily not available are procured in coordination with firms to ensure continuity of supplies. A major reason for the TNA is erratic demand pattern of many URCs resulting in excess/short stocking at the depots. This needs to be avoided by the units to reduce TNA to the minimum.

17.11 QUESTION NO. 11 : RAISING OF DEBIT AND CREDIT NOTES BY DEPOTS

The depots issue debit and credit notes after reconciliation of accounts. Units have been advised vide para 9 of the price list that errors in invoices/bill of supply should be brought to the notice of the depot for issuing debit and credit notes. The Govt. levy which are generally with retrospective effect, have to be paid by CSD hence recovered from the units. The QD therefore covers such eventualities.

17.12 QUESTION NO. 12 : NON AVAILABILITY / SHORT SUPPLY OF SEASONAL ITEMS

Generally, depots receive stocks before the onset of the season. Units should project their demands before the onset of the season. The CSD depots can plan for further stocks so as to avoid non availability. To avoid blockage of funds in inventory excess stock cannot be positioned at the depots, hence units are to plan and lift their requirements in advance from the depots.

17.13 QUESTION NO. 13 :DELAY IN OFFERING OF GIFT SCHEME/DISCOUNT IN CSD WHEN INTRODUCED IN CIVIL.

It is mandatory for suppliers to extend gift scheme to CSD. In case of any default the same should be brought to the notice of CSD for taking suitable action. Consumer Promotion Scheme (CPS) item available late in URC because of FIFO system. In case, any consumer is denied the CPS, Depot/HO must be informed accordingly.

17.14 QUESTION NO. 14 : RETURN OF UNSOLD STOCKS

Units have been advised vide para 5 of the price list to exercise care while projecting their demand to the CSD depots so as to avoid unsold stocks. CSD depots are not to issue any item without demand. The unsold stocks cannot be taken back from the units being an audit requirement since it upsets the inventory planning.

17.15 QUESTION NO. 15 : BAR-CODING

Due to concerted effort by CSD all indices are having Barcodes. However, URCs are requested to identify items with ineffective Barcode and intimate CSD for taking necessary action.

17.16 QUESTION NO. 16 : CSD RATE MORE THAN MRP

CSD negotiates the price with the manufacturers eliminating the margins of the distributors and to ensure lowest rate anywhere in the country. The discounts negotiated by the CSD with the firms are thus high, being the largest buyer. Therefore, CSD price are lower than the MRP. Following aspects must be kept in view in case, the CSD price is reported to be higher than MRP.

(a) On many occasions firms in their anxiety to inform the clientele about the competitive pricing of CSD, prints the CSD price as the MRP resulting in the misconception.

(b) The stocks held by the units are of old vintage, while the firm had reduced the MRP of the product subsequently on new stocks. Units are to be careful while preparing indents and also follow FIFO system of sale at their counters to avoid incident of CSD price higher than MRP printed on the packs.

(c) However, on receipt of the complaint, following steps are taken :

(i) Item is identified with the index no. The samples are kept in custody for investigation.

(ii) The CSD rate is checked with pricing circulars, firm‟s MRP registered with CSD, wholesale price and retail price.

(iii) On identification of above factors, the sale of index no. (Item) is suspended and show cause notice is issued to firm and surprise Market Survey is conducted.

(iv) If CSD items rates are more than the MRP then the firm is suitably penalized as per policy and rates reduced accordingly.

17.17 QUESTION NO. 17 : PROFIT LOADING BY URCs

Some times different URCs are found loading different profit percentage on CSD items. Profit percentage to be loaded at CSD & URC level on CSD items is shown at Appendix 13. All URCs should strictly adhere to this while loading profit percentage on CSD items.

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