MEM Policy – Asset Loan & Equipment Management
Change Management
| Date | Version | Author | Change Details |
|---|---|---|---|
| 22/12/2025 | v1.1 | Michael Shenouda | Initial creation of the MEM Policy and Asset Loan; established purpose, scope, roles, approval matrix, lifecycle controls and record retention requirements. |
Approvals
| Approved By | Name | Date | Signature |
|---|---|---|---|
| Sales Director | |||
| MEM Manager | |||
| Finance Manager | |||
| General Manager |
Purpose & Scope
This policy establishes controls over marketing equipment (such as coolers, post‑mix machines and spare parts) through the full asset lifecycle. It ensures that all requests, issuances, movements, maintenance, replacements, scrap and returns/recoveries are properly documented, approved and recorded.
Definitions
Marketing equipment: Company‑owned coolers, post‑mix dispensers, and related spare parts used at customer locations. Asset Loan Letter: A legally binding agreement defining company ownership, customer custodianship, care obligations and return conditions for each asset (including serial number, model, site and signatures). Gate Pass: A stamped movement authorization required for any issuance or return of equipment or spares. BER: Beyond Economic Repair – repairs exceed 40% of the equipment cost.
Roles & Responsibilities
- Sales Supervisor / Area Sales Manager / Sales Director: Request and commercially approve placements, replacements and removals.
- MEM Manager: Conduct technical assessment, approve issuance and replacements, update asset locations in ERP, oversee scrap decisions.
- Technician: Diagnose at site, perform repairs or replacements, complete job reports, obtain customer signatures and deliver/collect equipment.
- Storekeeper (MEM): Issue coolers and spares, prepare Gate Passes, maintain counts, update ERP transactions.
- Security: Verify serial numbers and quantities at dispatch/return, stamp Gate Passes and control physical movement.
- Procurement & Finance: Manage quotations, purchase orders, budgets and scrap proceeds in accordance with the authority matrix.
Authority Matrix & Approval Levels
See the matrix below for approval thresholds; all requests must be raised in ERP. Email approvals are not accepted.
| Activity | Requestor | Technical Approval | Commercial Approval | Final Approval |
|---|---|---|---|---|
| New placement / Replacement | Sales Supervisor / Storekeeper | MEM Manager | Area Sales Manager | Sales Director |
| Spare PR/PO (≤ budget) | Store Executive | MEM Manager | Procurement Manager | Finance Manager |
| Scrap | Technician | MEM Manager | N/A – not required | Finance Manager |
Documentation & Records – Retention
Contractual/title-critical records (including Asset Loan Letters and handover/return acknowledgements) must be retained for the full contract term and ≥5 years post-termination; all other operational records for ≥5 years; and financial records for 5–7 years or statutory, whichever is longer. All records must include serials, customer details, signatures, dates, and be referenced in ERP/DMS. Records must be stored in the Document Management System (DMS) or shared drive, scanned and indexed by the responsible storekeeper/ERP team, with a unique reference code linking to the ERP transaction. Physical documents should be archived securely with restricted access.
Asset Loan Letter (Legally Binding)
A standard Asset Loan Letter must be signed by both parties before placement. It must state that the company retains ownership of the equipment; the customer is the custodian and must not transfer or dispose of it; all serial numbers and models; installation address; care obligations and liability for damage or loss; return triggers (closure, arrears, relocation, misuse) and access rights for inspection and collection. The letter must include governing law, jurisdiction and signatures.
Lifecycle Controls
New Placement: Approvals per matrix, ERP creation, Gate Pass, serial verification, customer acknowledgement and ERP location update.
Complaint/Repair: Service Request creation, technician diagnosis, job report, customer confirmation; spares issuance if needed; update ERP location; if not repairable, workshop replacement or scrap process.
Replacement: Formal ERP request and approvals; retrieval of old unit; serial checks in/out; ERP updates.
Movement: Gate Pass required for any movement; no equipment may leave or enter without a stamped pass.
Scrap: BER threshold (>40% cost) confirmed by MEM Manager; ERP transfer to Scrap Store; minimum 3 quotes; Finance Manager approval and sale; write‑off booked via JV.
Stock Verification: Monthly physical counts by Storekeeper; variances approved by MEM and Finance Managers; adjustments posted in ERP.
ERP & Data Integrity
All transactions must be recorded in ERP (no parallel systems). Maintain accurate location, serial and quantity data. Tolerance limits should restrict over‑issuance and highlight variances. WhatsApp may be used for notifications only—not approvals.
Financial Treatment
New cooler placements and replacements shall be treated as marketing expenses when below the capitalization threshold; equipment meeting capitalization criteria shall be recorded as fixed assets as per IFRS and internal accounting policy. All spare parts issued are expensed upon issuance. Scrap proceeds and write‑offs are recorded via journal entry in the P&L. Inventory variances must be approved and adjusted in ERP with proper documentation.
Risk Controls & Compliance
Serial number control at every hand‑off; dual signatures (customer and company) on all documents; segregation of duties between request, approval and issuance; surprise stock counts; periodic audits comparing asset loan letters with assets in the field; and prohibition of email‑only approvals. Non‑compliance must be escalated to the Finance and General Manager.
Recovery & Legal Actions
Recovery is triggered when customers close accounts, default on payments, transfer business ownership or misuse equipment. The company may reclaim its equipment using the Asset Loan Letter and, if necessary, legal proceedings. Coordination with Legal is required when equipment is inside landlord-controlled premises or subject to auction.
Service Levels (SLA)
Technicians must respond to post‑mix complaints within 24 hours; preventive maintenance must follow the annual calendar; and repairs/replacements should be completed promptly to minimize downtime.
KPIs & Reporting
Key performance indicators include Mean Time To Repair (MTTR), percentage of on-time preventive maintenance, recovery rate of equipment, variance rate in stock counts, scrap ratio versus total assets, and cycle time from request to installation. Reports must be generated monthly and reviewed by management.
Exceptions & Escalations
Any deviation from this policy requires documented justification and approval by the General Manager or Managing Director. Time‑bound corrective actions must be defined, and unresolved issues escalated to Finance and Management.
Appendix A – Asset Loan Letter Template
The following template should be adapted for each customer/site. All fields must be completed and the document signed by the customer and company representative.
| Field | Details / Instructions |
|---|---|
| Customer Name | Full legal name of the customer / trade license holder |
| Trade License Number | Valid trade license number |
| Installation Address / Site | Complete site address where equipment is installed |
| Asset Description | Include model, type and full serial number of each asset |
| Loan Term | Specify the purpose and duration of the loan (e.g., until termination of contract) |
| Care Obligations | Customer agrees to use the asset solely at the approved site, maintain it in good condition, and allow access for inspection |
| Return Triggers | List triggers such as account closure, arrears, relocation, or misuse that require return of the asset |
| Governing Law & Jurisdiction | Specify applicable law and jurisdiction (e.g., Abu Dhabi, UAE) |
| Signatures | Signature, printed name and date of the customer; signature, name and title of the company representative |