Elaboration of trade policies and other documents

Elaboration of trade policies and other documents

Trade policy is an internal document of the organization that describes the procedure for selecting counterparties, interacting with them, as well as stopping work with counterparties, containing the criteria for selecting counterparties, the procedure for conducting the audit (the description of the processes) that determines the decisions, the list and authorities of persons participating in approval procedures or the refusal of commercial relations, the persons making such decisions, the time and order of consideration of applications of counterparties (potential counterparties), as well as the terms of cooperation with the counter agents that determine the cost of goods, shipments, payment terms, discounts, bonuses and other terms and conditions.

The final result of the elaboration of trade policy in the enterprise is:

  • ensuring the optimal degree of customer satisfaction with the goods and services provided as a means of meeting diverse needs;
  • ensuring the planned profit and profitability of the trade organization;
  • increasing the competitiveness of the trade organization.

The objectives of trade policy are:

  • identification of requests and expectations of external and internal users of the organization;
  • rationalization of trade and technological processes of commodity circulation;
  • definition of goods, services as a means of satisfying various requests and expectations of external consumers, including, due to the fundamental characteristics of goods (assortment, quality, quantity, price);
  • reasonable choice of the main directions of trade policy;
  • forecasting possible risks from the selection and implementation of each direction, as well as measures to prevent or mitigate the consequences of these risks.

The elaboration of trade policy implies the achievement of the following objectives:

  • increase in sales, profit, company value, brand;
  • achievement of a given amount of profit, a certain profitability;
  • risk reduction, expansion of the customer base, smoothing seasonal fluctuations, reducing the impact of competitive brands on the market, ensuring brand stability;
  • reduction of production costs, logistics due to capacity utilization, increase in turnover, increase in profitability.

According to, for example, the FAS Russia Recommendations on the Development and Application of Commercial Policies by Economic Entities Occupying a Dominant Position in the Pharmaceutical Markets and Medical Products Markets, any trade policy should also include:

  • standard contract with all essential conditions;
  • the form of the counterparty's application (potential counterparty).

However, the terms of the contract and the provisions of trade policy should not contradict each other. The current versions of the trade policy, the contract template and the application form for cooperation should be publicly available to an undetermined number of persons on the Internet.

The presence and observance of trade policy by an economic entity that occupies a dominant position on the market significantly reduces antimonopoly risks.

In addition to trade policy, organizations working in the field of trade may need to develop and implement brand policies (brand policies), range policies, product policies and others.

Despite the fact that these documents are marketing in nature, they require competent legal registration in accordance with the current legislation that will ensure their effectiveness. The specialists of the BRACE Law Firm have great experience in elaborating such documents.

Legal services

We offer the following services:

  1. elaboration of trading and other company policies;
  2. verbal and written consulting on issues arising in the development of trade policies and other documents.

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