Managing a Product Distributorship Venture
Any PanXpan application that is approved by the manufacturer and then confirmed by you, will automatically turn into a PanXpan venture. A PanXpan venture is very similar to a PanXpan application where there is a sales forecast and an investment forecast. The main difference is that now you will be able to get investment from and place orders with the manufacturer on a monthly basis. There are three main parts of a PanXpan venture which we'll go over below: 1) Placing orders, 2) Managing investment, and 3) Maintaining a sales and investment forecast.
You can only place orders once you've started a venture with a manufacturer. Orders placed across all manufacturers within a given month will be grouped together for ease of access. So you will be able to access all your "October" or "November" orders together. The steps below explain how the order process works.
Step 1: Place Product Request
You'll start the order process by creating a product request from inside the PanXpan platform. On the product request form you will select the products you want to order and their respective quantities. The software will automatically figure out the cost per unit based on prevailing exchange rates and your historic order quantities in that last 12 months. You will then be asked to select a shipping preference. Once you've entered this information you will need to press the "Send Request" button to send the request to the manufacturer.
Step 2: Manufacturer Approves and Creates Invoice
Once you send the request to the manufacturer, the manufacturer will review the order and confirm that all the products are available. They will also add a shipping cost to the order based on your shipping preference and address. Product pricing can't be adjusted by the manufacturer as its based on the initially quoted product pricing. Upon approval by the manufacturer, this product request will turn into an invoice and you will be notified that an invoice is ready.
Step 3: You Fund the Invoice
Once the manufacturer approves the product request and issues an invoice via PanXpan, we will ask you to fund the invoice. You will need to then send us the funds via any of the payment methods available. Once we have received the funds for your invoice we will mark the invoice as funded and let the manufacturer know.
Step 4: Manufacturer Ships the Goods
We will inform the manufacturer once the invoice has been funded by you. The manufacturer will then be required to ship the goods and upload shipping tracking info to PanXpan. Once shipping tracking info has been submitted we will relay that information to you and we will release the funds you submitted to the manufacturer.
Step 5: Receive the Goods
With the tracking info provided by the manufacturer, you will need to track the goods and get delivery. If you have any issues receiving the goods you can message the manufacturer or escalate to PanXpan by contacting PanXpan support at [email protected] The invoice will be marked as shipped and then archived on PanXpan. Product requests are grouped by month so you can easily monitor status for your current product requests online.
Investment funding will be based on the agreed upon forecast in your venture. Like with orders, investment across all manufacturers within a given month will be grouped together for ease of access. So you will be able to access all your "October" or "November" investment together. The steps below explain how to manage investment using PanXpan.
Step 1: Manufacturer Funds Investment
The investment process starts with the manufacturer funding their share of the investment. So before a given month begins, the manufacturer will be required to fund their share of any agreed upon investment. Funding means that they will transfer that money to PanXpan. You will be notified once the manufacturer has funded investment for a given month so you can start spending the agreed upon investment money. If the manufacturer doesn't fund the required investment before the start of the month, the venture will be paused. To unpause the venture they will need to either fund the investment or request to change the investment forecast for the venture. Any changes to the investment forecast will require local partner approval.
Step 2: You Spend the Money
By the time a given month starts, you should have been notified that the manufacturer's share of investment has been funded and is in escrow with PanXpan. At this point you will be able to spend the money as per your agreed upon forecast.
Step 3: You Submit Receipts
Once the month is over, you will be required to submit receipts for any investment expenses carried out in the month.
Step 4: Manufacturer Reviews
After submitting your receipts, the manufacturer will have a chance to review all the expenses. At that point they can dispute any expenses or receipts that they feel are problematic. Disputed expenses will require you to discuss with the manufacturer and come to a mutual decision. If the manufacturer is happy with all the expenses, we will take the manufacturer's share of any investment receipts submitted and then release those funds to you. Any unused funds from the manufacturer will be returned back to them.
The third part of managing PanXpan ventures includes managing forecasts. Forecasts should always be accurate based on the latest happenings. Both you and the manufacturer have the ability to request changes to the sales and investment forecast. Because a venture was agreed based on a set of forecasts, any requested changes to either the sales forecast or investment forecast will require approval from both parties. Maintaining accurate forecasts is also important because your public ratings on our platform will include your overall % of sales forecast met. So make sure you are trying to deliver close to 100% of your sales forecast for every venture.
Each venture can be for a 1, 2 or 3 year term. When the term of a venture is up, the manufacturer has the option to invite you to renew the venture. At time of renewal you will need to submit a new sales and investment forecast for the new venture term. The manufacturer is also able to add new products or remove existing products at time of renewal.