Plus and Short Shipment Bonus and Penalty Incentive Calculation is too much important to increase productivity in garments organization. Many organizations are calculation the bonus and penalty incentive in favor of factory management. That’s why the company is being a little bit looser for that type of incentive. if it’s calculated in the proper way both are benefited accordingly.
Here we share with you a table for “Plus and Short Shipment Bonus and Penalty Incentive Calculation” where the red color is factory management benefit and the orange color is company benefited.
If you didn’t understand the above calculation, please go my YouTube chellan for details understanding on below link. for soft excell copy
The incentive is earned per qty. CM (Contribution Margin) multiplied by plus shipment and company approval ratio like 35% of total earning.
Short shipment against order quantities has been affecting business day by day. Despite lots of warnings, motivation and training the same as remain unchanged. In this context, you may impose Cut to Ship Bonus & Penalty Incentive to reduce short shipment. I thank & believe the above following scheme will be viewed very positively by all concerned to grab at the opportunity of achieving that type of rewards.