Consignment Inventory Policy
Effective date: July 1st, 2007
This policy applies to Fujifilm Canada Inc. (Graphic Systems) consumable products which are placed at a customer site under a consignment inventory agreement. Any consumable product stored at a customer site in which Fujifilm Canada Inc. has not directly invoiced the customer for will be considered covered under the terms of this consignment policy.
Purpose:
The purpose of consignment inventory at a customer site is to permit sufficient inventory on hand to react to exceptional cyclical demand in the print production process or to facilitate the shipment of consumables in areas where same day or next day freight shipment from a Fujifilm authorized facility would be problematic. Fujifilm Canada Inc. bares the risk of inventory stored at the customer site in exchange for exclusive use of those Fujifilm supplied consumables in the print production process.
Determination of eligibility for consignment inventory:
Fujifilm Canada Inc. reserves the sole and exclusive right to determine which customers are eligible for consignment inventory.
Ownership of consigned inventory:
Consigned products stored at a customer site remain the property of Fujifilm Canada Inc. until opened and used by the customer or upon 60 days of time have elapsed from when the product was shipped to the customer. Any product, once opened, becomes the property of the customer and will be invoiced. Product stored at a customer site as consigned inventory for more than 60 days will be invoiced.
The unopened products may not be removed or relocated by the customer without the expressed written permission of Fujifilm Canada Inc. Products under consignment may not be resold to any third party by the customer. Fujifilm Canada Inc. reserves the right to withdraw any or the entire consigned inventory at any time.
Determination of what products will be placed in consignment inventory:
The Fujifilm Canada Inc. (Graphic Systems) Account Manager assigned to your company will meet with you to determine which products are eligible for consignment at your site. Upon mutual discussion a list will be drawn up outlining the exact products and quantity documented. The consignment quantity is based on your projected consumables usage requirements in the next 30 days of typical business operation. Some allowance is made for exceptional cyclic variation in business.
Usage of consignment inventory:
The customer may take product from the consignment inventory for use in their daily production needs.
Consignee responsibilities:
1) Product must be stored in a suitable environment (as defined by Fujifilm Canada Inc.).
2) Monitor levels of consignment inventory and inform Fujifilm Canada Inc. Customer Service in a timely manner when inventory has been exhausted or is excessive. (Fujifilm Account Managers may provide a service whereby they will periodically assist the customer in the management of the consignment inventory, but the ownership of monitoring consignment inventory at the customer site and informing Fujifilm Customer Service resides with the customer).
Return of product under consignment inventory:
Product under consignment inventory may be returned subject to the terms of the Fujifilm Canada Inc. Graphic Systems Product Return Policy. An RMA number may not be issued but email, fax or written authorization from a Fujifilm Canada Inc. Customer Service representative is required prior to the return of consigned product.
If a customer elects to return a consigned product, Fujifilm reserves the right to remove said product from any future consignment shipment for a period of no less than 90 days.
Invoicing of consigned inventory:
Periodically, (no less than once per calendar month) a Fujifilm Canada Inc. representative will contact the customer or physically visit the customer site to reconcile consignment inventory shipped with the physical inventory on site. The Fujifilm representative will also confirm any inventory that has been on site for more than 60 days. The difference between the shipped versus physical inventory, plus inventory in excess of 60 days will be invoiced.