CMDA : The witty professor

With the support of vendors, CMDA Pune has hit the bull's eyes by introducing trade guidelines for the buyers ( System Integrators, resellers and channel partners) and sellers (national distributors and regional distributors) to continue fair trade in the IT industry.

New Update

Having felt the need to strengthen the vendor-member relationship with fair trade practices, Pune based CMDA (Computer & Media Dealers' Association) has launched a trade guideline book on 18th April this year.


Commenting on this to the DQ Week, Ratnesh Rathi, Secretary, CMDA Pune, said, "After our aggressive discussion with all the partners and principal vendors in the IT industry for about 6 months, we recently came up with trade guidelines for partners. Our effort is highly appreciated by the partner community, wherein it intends to resolve their business issues and concerns including the DoA (Dead on Arrival) policy, warranty policy, escalation matrix, and many more."

Hence, the association has engaged with different set of partners (SIs, VARs, Distributors) and vendors across the whole constituency, wherein some partners end up with profitable transaction deals. It has pointed out trade guidelines on the several issues listed below:

For Dead on Arrival (DOA) materials:


a) Both buyers (System Integrators (SI), Resellers and channel partners) and sellers (National Distributors and regional distributors) should be well aware of the vendor's DOA policy, else it is the duty of the seller to provide or to make available the vendor's DOA policy.

b) Buyer should register the complaint to the vendor's authorized service center/call center number/website as per the vendor policy.

c) Buyer should take the approval of DOA from vendor authorized service center/call center number/website as per vendor policy.

d) If the buyer is unable to get the approval for qualified DOA as per the vendor's policy, the seller must help the concerned buyer to do so.

e) After the registration of DOA, the seller should issue another product of same specification with a separate invoice of the same value. And after the DOA material is replaced, the concerned seller will issue a credit note or reverse the sales invoice of same value. This is applicable for the stock in hand product.

f) The buyer should not hold the payment of seller due to DOA case.


Guideline for Physically damaged material: It should be as per the vendor's policy.

Warranty Policy:

a) Buyers and sellers should be well aware of the vendor warranty policy, else it is the duty of the seller to provide or to make available the vendor's warranty policy on products.

b) Buyer should register the warranty claims for products as and when required.

c) Warranty should be covered and governed according to the vendor's policy on this.

d) If products conk out during the warranty, the buyer will provide the required documents or information to the authorized service center.

e) If vendor service center denies or delay warranty claims then the seller will provide necessary documents which include the warranty policy, purchase proof, escalation matrix etc. to get the warranty claim.

f) If required, the seller will help to get the warranty done from the vendors keeping in loop the buyer.

g) RDs and SIs will maintain the price parity while selling to the end user.


Financial guidelines:

a) Suggested credit period should be 21 days from the date of invoice.

b) Buyers will issue the cheque against the delivery of the product. However, sellers and buyers will mutually decide modality of the payment collection/delivery of cheque.

c) Buyer and seller will mutually decide about issuing security cheque. It will be the seller responsibility to preserve and protect the issued security cheque. In any case, the seller can deposit the security cheque on due date with written intimation to the buyer.

d) Cheque bounce charges will be Rs. 250 and interest will be levied up to 24% pa.

e) Seller can share the name of defaulter to CMDA managing committee, which can be sharedwith all the members as per CMDA's cheque bouncing policy.

f) Back end incentive should be processed as per vendor policy. If vendor defaults or delays the claim, Seller will help Buyer. All the communication should be on mail or written note, no verbal communication will be address by the seller or vendor.

g) Buyer will not hold or delay or give the short payment to the seller due to defaults or delays in back-end incentives.


Invoice policy:

a) Seller's invoice would be - "If the seller is delivering the material inside the corporation limits, the billing address of the seller should be inside the corporation limit. In case of billing from outside, octroi limits to buyer within corporation limit then a proper octroi receipt should be handed over to the buyer, otherwise the buyer can reject the material at the time of delivery.

b) If the buyer wants the delivery outside corporation limit, then he will collect from the said location.

Seller billing and delivery location should be visible clearly on invoice.

c) Seller should make Invoice equal or less than MRP. Buyer should check the MRP tag at the time of delivery.

d) Buyer can reject the material at the time of delivery if the invoice value is higher than MRP.

e) The received invoice should have discount after basic value + vat - discount.( Request not to be accept invoice Basic Value- discount+ VAT)


Delivery policy:

a) The buyer's door delivery can be done by sellers and will levy from Rs 50 onwards. The charges may be decided by mutual consent.

b) Delivery charges will be applicable for the full delivery of the materials. If shipment is made in parts, then till the completion of whole delivery only one time charge will be applicable or with mutual consent charges may be levied.

Escalation Matrix :


a) Seller should provide escalation matrix to Buyer whenever demanded.

b) Seller should provide service center details to CMDA.

Regional/Sub-Distributors policy:

a) Vendor should inform CMDA before change of distributor with reasons.If vendor want to appoint another distributor, then vendor should take consent of existing distributor.

b) It is vendor responsibility to take the stock from the cancelled distributor and give him the amount or credit note.

c) Before cancellation of distributorship all the financial & material transaction will be cleared by vendor. Once cleared ,vendor can appoint new distributor.