Inventory Shrinkage Clause Samples
POPULAR SAMPLE Copied 66 times
Inventory Shrinkage. 3PF does not anticipate inventory shrinkage for Stock held by 3PF. Shrinkage is an uncorrectable negative difference between physical and book inventory of stock. 3PF shall not be liable for any Customer losses as a result of inventory shrinkage, unless such shrinkage causes the inventory to fall below the Ninety-Eight and One-Half percent (98.5%) inventory accuracy level. 3PF shall be liable for the entire percentage of the discrepancy below this accuracy level. 3PF will replace such percentage of inventory below Printed 12/14/2001 11:57 AM Initials (3PF) /s/ [ILLEGIBLE] Initials (Rentrak) /s/ [ILLEGIBLE] Initials (RedEnvelope) /s/ [ILLEGIBLE] this accuracy level as determined by Customer's external auditor and at price equal to the Customer's cost for those items. Inventory accuracy shall be defined as inventory overages minus inventory shortages, as measured by dollar value of the discrepancy and a percentage of total inventory value at cost. The measurement period shall constitute the period of time between physical inventories, which shall be no fewer than one (1) time per calendar year, and no more than twelve (12) times per year, as determined by Customer. Accountability shall begin as product is received, using the physical counts by 3PF as a beginning inventory. Shortages will become payable only after two (2) consecutive inventory shortages. The net shortage or overage over the previous two (2) inventories shall be carried to the next inventory. Payment of the first shortage after two (2) consecutive shortages will be made thirty (30) days after reconciliation of the second shortage.
Inventory Shrinkage. TDC shall compensate MANUFACTURER for inventory shrinkage in excess of reasonable and customary amounts, as defined by the formula set forth in Part C of Exhibit 1; provided that MANUFACTURER complies with the standard cost rules specified in this Section 5 as well as other applicable provisions of this Agreement. MANUFACTURER agrees to comply with TDC's established procedures and practices in place as of the date of this Agreement, of inventory related transactions, and to require their packagers to do the same. MANUFACTURER agrees that any errors or omissions made by MANUFACTURER personnel or MANUFACTURER's packagers are the responsibility of MANUFACTURER and are not covered by this Subsection 5.13. TDC agrees that any errors or omissions made by TDC personnel or agents of TDC are the responsibility of TDC, except for appropriate correction for prior entries under GAAP.
Inventory Shrinkage. Genco will take physical inventories of the merchandise at the CRC Facility in accordance with the schedule and procedures agreed upon by the parties. It is understood and agreed that Genco shall only be responsible for the (i) slot check adjustments; (ii) damaged product; (iii) damaged during stocking; (iv) cycle counting; and (v) physical inventory adjustments inventory codes and that Streamline will be responsible for the eleven other inventory codes used at the CRC Facility. As part of each inventory, Genco will make a reconciliation of net inventory overages and shortages since the last inventory based upon the current physical count as compared to Genco's books and records from the last inventory on a unit basis. All such net overage and shortages that are covered by the five inventory codes specified in clauses (i)-(v) shall be charged to Genco at the unit cost of such merchandise then in effect; provided that no charge shall be made to Genco unless the shortage exceeds one percent (1%) of the total annual dollar volume handled in the CRC Facility for the most recently ended Contract Year. All overage shall accrue to the benefit of Streamline. Such overage shall be carried forward and used to offset any future shortages that are covered by the five inventory codes specified in clauses (i)-(v). Damage or other claimed shortages shall be reconciled as a part of the physical inventory process. Genco will not be liable for damage caused to merchandise that is received by Genco in other than its original shipping carton including carton fillers. If, as a result of the taking of physical inventories, there are shortages that are covered by the five inventory codes specified in clauses (i)-(v) exceeding one percent (1%) of the total dollar volume of the merchandise handled in the CRC Facility for the most recently ended Contract Year, Genco shall reimburse Streamline for such losses and Streamline and Genco will immediately meet to determine what security measures shall be implemented to secure the CRC Facility. It is understood that Genco personnel will make all adjustments to the perpetual inventory and that Streamline personnel will not make any such adjustments. Genco will ▇▇▇▇ Streamline for the time required to perform inventory services pursuant to this Section 3.07(b), which services shall be considered as an Additional Service.
Inventory Shrinkage. Tu Pack will take all reasonable precautions to maintain the stock in a secure environment. It will be accessible by Tu Pack employees or agents except by prior agreement with the Customer.