Types of Unsaleable Policies

GENCO’s damage research team helps to develop unsaleables policies that provide value for both you and your customer. We review the information collected during the supply chain analysis and determine which option best suites your situation.

thick books containing unsaleable policies

Unsaleables Policy Options

Swell Policy

A Swell Policy is a researched rate that quantifies the rate of damages caused by the Manufacturer’s handling practices. Retailers are reimbursed based on sales volume. The Swell Policy works well with low damage products with consistent handling characteristics. It is, however, not good for a deep SKU base with many product types, sizes or handling characteristics.

Adjustable Rate Policy

An Adjustable Rate Policy is created by reviewing data in depth. Mathematical calculations are made to quantify the level of responsibility of manufacturers and retailers for damages. Because highly accurate and up to date data is used in the calculations, a very precise unsaleables rate is able to be established. The Adjustable Rate Policy is quickly becoming an industry standard.

Managing customer reactions to an unsaleables policy can be a delicate process. The precise and timely nature of data can often be used as a way to convince the customer that the shared responsibility of damages is fair. It is important to help the customer understand that the goal is not to shift costs to them, but to drive those costs completely out of the supply chain.

Joint Industry Report (JIR) Policy

In 1990 the Unsaleables Leadership Task Force released the study, “Product Reclamation Centers: A Joint Industry Report” (JIR). In this report handling rates were established for ever product. These rates can be used to create an unsaleables policy.

Managing Customer Reactions to Unsaleables Policies

GENCO has helped our customers both prepare and present an unsaleables policy to their customers. We know the best way to present the data while preserving the customer relationship.