---Guidebook -RTV/Forfeit process---



What is the purpose of aged inventory rules:

Warehouse's space is limited so we need rules to have a good management of the products that 
have not been sold well to enable you to store more fast moving products,It is also a way for you
to know what items work in a country,and to check whether the price is adapted to local market

How does it work?

According to the 2 matrix that you will find below(one for Non Fashion SKU,the other one for 
Fashion SKU), we rank the SKUs in the warehouse that are online in 3 categories:

No action: SKU is healthy and we don't need to worry

At risk : SKU is not selling as expected, it begins to be aged and it coverage is not  good 

       You should take actions to sell the product(discount,subscription to marketing campaign)

RTV: The SKU is too old or/and doesn't sell enough considering the

matrix rules and consequently,we need to remove it from the warehouse, This category is also

called RTV/Forfeit category.



    
       
     
                         
  What are "age" and "coverage" criteria correspond to?
As you can see in the matrix, according to the category of the SKU
(meaning "Fashion SKU"or "Non-Fashion SKU")
your product will be placed in a case thanks to 2 characteristics:
  
Coverage of the SKU: This is the number of items for the same SKU that are online divided 
by the average daily sale(calculated on the last 4 weeks). In simple words, it's the number of days 
before selling the complete inventory maintaining the same rate of sales
Age of the SKU: calculated as follow: Today-Date of the latest UID of the same SKU inbounded, 
It means that itcould be selling fast but we are overstocking

As you can see on the matrix, these criteria are working together but let us draw your attention to 
a few comments.of course,if your" age criteria" is bad(i.e that SKU are in the warehouse for a long time) 
and your"coverage criteria" is bad as well( i.e the ratio of the number of items online divided by daily 
sales is not good), your SKU will be placed in those pink cases meaning that it will be removed from 
our  warehouse,However, if it is quite old but still have a good coverage.it may continue to be in green
or yellow cases,The idea of it is to understand that if your product is in pink cases(Removed cases), 
according to the two criteria it will be removed from the warehouse.

 
        
Examples:
1.Seller A has 100 Iphone 6 online in the Nigerian warehouse,On the last 4 weeks, he has sold 5 Iphone6
 per day,The latest UID inbounded was in 61 days,Iphone are located in the Matrix "Non fashion SKU"
Coverage is 100/5 = 20 days → In "0-30 days" bucket 
Age is 61 days → In "60-90 days" bucket
Result: according to the aged inventory rules, this SKU is flagged as No action. 

2.Seller B has 200TV online in the IC warehouse, On the last 4 weeks, he has sold 3 TV per day. The latest 
UID inbounded was in 75 days,TV are located in Matrix"Non fashion SKU"
Coverage is 200/3 = 67 days → In "60-90 days" bucket
Age is 75 days → In "60-90 days" bucket
Result: according to the aged inventory rules, this SKU is flagged as At Risk.

3.Seller C has 300 men's Jackets online in the Kenyan warehouse,On the last 4 weeks, he has sold 2 jackets 
per day,The latest UID inbounded was in 142 days,Jacket are located in the Matrix" Fashion SKU"
Coverage is 300/2 = 150days → In "120-180 days" bucket
Age is 142 days→ In "120-180 days" bucket
Result: according to the aged inventory rules, this SKU is flagged as RTV Forfeit. 

How can I know my products is in "at risk list" or worse, in "RTV/Forfeit list" and will be removed?
Two lists of SKU simple are created each first Tuesday of the month,one for"at risk" products, and
one for "RTV/Forfeit" products, Concretely,it means that every month,you will receive an alert by 
mail for all the SKU that need your very special attention:
If your products is not going well and has been placed in the "at risk"category, you will receive an
email which will encourage you to take actions quickly(hard discount,subscribe to our sponsored
ad program(Mabaya) or request for  marketing value added services)
If your product has failed to clear despite previous flag in "at risk category" you will receive an alert
informing you that your product will be removed, At this point you have two options: i) Take Item Back
-"Return to Vendor"(RTV)-at your own expense or ii) Forfeit Item-Jumia will dispose of the item on your
 behalf Please remember that an answer is requested in one week after that alert, after this time, your
 product will be automatically considered as Forfeit.

Actually,that process is not very complicated but needs your cooperation to insure the best performance
possible for your products,Let us remind you that we are following that process to manage efficiently inventory
 and make space for the performing products. That's the reason why we encourage selling at discount proactively in order to avoid RTV/Forfeit process which we also do not want to.