for commercial shipments to to warehouses

Transcription

1 Fédération Française de la Parfumerie Sélective Fédération des Entreprises de la Beauté Logistics Logistics Best Specifications Practices Guide for for commercial shipments to to warehouses ECR Best Practices Guide 2 nd edition September 2011

2 Contents Contents 1 INTRODUCTION PURPOSE AND OBJECTIVES SCOPE STRATEGY DEFINITION OF TERMS USED PACKING REGULATIONS AND SAFETY CONSUMER UNIT (PRODUCT) Product identification Product packaging Product information updates (GTIN) LOGISTIC UNITS Typology of logistic units Cartons Pallets Technical characteristics Cartons Pallets Logistic unit identification Identification for a carton-type logistics unit SHIPPING UNITS Identification for a carton-type shipping unit Identification for a pallet-type shipping unit Pallet enclosure Other shipping unit identification Pictograms ORDER CREATION Contractual aspect of orders Procedure for issuing orders COMPLIANCE WITH THE ORDER Delivery date and times Contents of the order Delivery location SUPPLIER/DISTRIBUTOR CONFERENCE DELIVERY DELIVERY GUIDELINES Delivery locations Delivery dates and times Special delivery conditions DOCUMENTS TO BE PROVIDED FOR WAREHOUSE DELIVERY Bill of lading / consignment note / CMR Delivery note Packing list UNLOADING PROCEDURE... 26

3 1 Introduction 1 Introduction 1.1 Purpose and objectives This document has been prepared as part of a cooperative effort by the member distributors of the Fédération Française de la Parfumerie Sélective (French Federation of Selective Perfumery; FFPS) and the Fédération des Entreprises de la Beauté (French Federation of Beauty Companies; FEBEA). These two organizations have established a reasonable timeframe for implementing the document s recommendations. This guide to logistics best practices is designed to generate recommended practices aimed at standardizing operating methods and facilitating logistics flows between suppliers and distributors. A proper understanding of product logistics information and distributor procedures will ensure that: Products become available more quickly, Payment times can be guaranteed and the number of disputes will be reduced. This logistics best practices guide is an essential tool in the relationship between each distributor and its suppliers as they strive to enhance the quality and efficiency of the supply chain. It applies to deliveries of products sold or used by the distributor to warehouses or logistics platforms. By defining guidelines for these deliveries, it is intended to enhance customer service and streamline the supply chain in a variety of ways: Ensure the quality and proper condition of the packaging; Reduce the risk of theft, breakage, disputes and hidden damage at all levels of the supply chain; Improve handling and transport safety; Simplify logistics procedures, and specifically acceptance and identification procedures; Improve storage and handling; Facilitate materials reuse, recycling and recovery; Improve the channels for communication and the administrative procedures that are essential to proper order processing (order placement methods, supplier/distributor conferences, etc.). Direct deliveries to retail outlets will be addressed in a separate best practices guide. Supply chain personnel are the preferred contact persons for all requests, explanations, specific authorizations or suggestions for improvement regarding the rules to be followed or the recommendations set forth in this logistics best practices guide. Distributors and manufacturers should adapt this guide to their own constraints, organization and strategy. 3

4 1.2 Scope This document defines the technical specifications for products intended for sale and products delivered to a platform. By extension, this best practices guide applies to testers when they are delivered to platforms. It is applicable within France. The specific nature of direct deliveries to retail outlets and non-market flows will be addressed in a separate best practices guide. 1.3 Strategy Distributors and manufacturers in the selective perfumery industry have expressed a desire to work together to respond more effectively to customer expectations, notably by optimizing the overall supply chain from the factory to retail shelves. Their goal is to help modernize business practices and enhance the transparency and fairness of commercial transactions. Close cooperation will enable suppliers and distributors to respond more and more effectively to the needs of end consumers. This guide is part of a broader initiative, open to all companies, to harmonize logistics and commercial practices within the industry. For information, the projected timetable for this project is shown below: Actions / Deliverables Objective 1: Complete the specifications for commercial shipments. Present it and distribute it to industry members. Objective 2: Anticipate traceability measures to be adopted in light of new European Union legislation. Prepare a guide of recommendations for the companies affected, to explain the new provisions that will have an impact. Objective 3: Select and prioritize the EDI messages to be adopted. Coordinate the adoption of EDI within the industry. Completion 2011 Late 2011/ Early 2012 During 2011 Completion: June 2012 Objective 4: Expand industry use of the standard product datasheet and electronic catalogues. Preliminary step: awareness campaign (March 2012). 2 nd half of 2012 Objective 5: Improve non-market flows (significant cost item) Objective 6: Coordinate deployment of antitheft and security measures (RFID standards) Objective 7: Combat counterfeiting Industry members also emphasize that the purpose of their recommendations is not to come to an interindustry agreement that hinders each operator s commercial freedom, but to help improve practices by developing a common language. Therefore, we invite users to distribute this best practices guide on a wide scale, to ensure compliance with each phase of this timetable. By signing this logistics best practices guide, suppliers and distributors agree to take action to ensure compliance with this guide within a reasonable period of time. Businesses within the industry will meet at least once a year to update the document (to reflect new security standards and national or European legislation, changes in product types and strategic developments).

5 2 Definition of terms used 2 Definition of terms used Complete package A full package containing the number of consumer units called for or contained in the basic procurement unit. This concept corresponds to the notion of an outer quantity (PCB) in the GENCOD language, which does not exist in the GS1 international standard and has been replaced with order multiple. This corresponds to a standard, uniform logistics unit in carton form (as defined by GS1). Consumer unit EAN-13 FEBEA FFPS GPC Grouping Item/unit intended for consumer sale in a retail outlet (retail distribution channels). It is identified by a GTIN code. If a consumer unit is also marketed as a logistics unit, it should be considered a consumer unit. Replaces the UVC (see entry). EAN/UPC symbology barcode corresponding to a GTIN-13 code. Fédération des entreprises de la beauté (French Federation of Beauty Companies) Fédération Française de la Parfumerie Sélective (French Federation of Selective Perfumery) General Purchasing Conditions A group of consumer units that is less than and represents a sub-multiple of a complete package. This group may be defined by (among other things) a tie (elastic or otherwise), bag, carton, etc. This concept corresponds to the notion of an inner quantity (SPCB) in the GENCOD language, which does not exist in the GS1 international standard and has been replaced with order minimum. GS1-128 GSC GTIN Structured sequence of alphanumeric characters constituting one or more items of information of fixed or variable length, with each item being preceded by its identifier. The data identifiers along with the structure and length of the data they introduce are defined by GS1. The term GS1-128 also refers to the barcode into which this data is translated. Thus, any of the following can be translated into GS1-128 format: a sequential package number or SSCC, a UCC/EAN-13 code or GTIN-14 code, a lot number, a date, a weight, etc. General Sales Conditions Global Trade Item Number. The GTIN can be one of the following standard codes: GTIN-8, GTIN-12, GTIN-13 or GTIN-14. GTIN-8 The GS1 system s international 8-digit item numbering code. It consists of the GS1 prefix, the item reference code and the control character. It is used to identify trade units that are small in size. In France, the GTIN-8 code is assigned by GS1 France at the request of the item s creator. In a 14-digit file structure, it is compatible with the GTIN-13 and GTIN-14 codes, in that it is right-justified with leading zeros. GTIN-8 was formerly known as EAN-8. GTIN-13 GTIN-14 The GS1 system s international 13-digit item numbering code. It consists of the GS1 company prefix, the item reference number and the control character. It can be used to identify any trade unit, specifically consumer units, product-services or consignments. It is also one of the two identification solutions used in the standard logistics unit (the other being the GTIN-14). GTIN-13 was formerly known as EAN-13. The GS1 system s international 14-digit item numbering code. It consists of a designator associated with the 12 digits of a GTIN-13 or GTIN-12 identification code and the control character. It is used to identify trade units that are not for retail sale. It is one of the two coding options for standard logistics units (the other being the GTIN-13) currently used in GS1 systems. GTIN-14 was formerly known as EAN-14. 5

6 Logistical variant (LV) Logistics label Logistics unit Mixed pallet A two-digit code that, for a given basic unit, is used to differentiate the various standard logistics units offered to customers for product shipment. This concept, used solely in France, was made optional in Version 4 of the GENCOD Language and was permanently eliminated in Version 5. Standard logistics units must now be identified by specific GTIN-13 or GTIN-14 codes. The logistics label for shipping units is divided into three different sections, each containing separate types of information: The product / The customer / The shipment and transport. The information in each section can be read and printed at the various stages of the supply chain. These three sections can be printed onto one or two labels. The "product" section of the label is the same for all customers, and can thus be affixed to the logistics unit as soon as it comes off the manufacturing line. The "customer" and "transport" sections are not usually known until the time of shipment. Refer to the Manuel pratique GS1 France (Applications logistiques des standards GS1) [GS1 France Handbook (Logistics applications of GS1 standards)]. A grouping of consumer units at any level. There may be several overlapping levels of logistics units (row 1 cartons, row 2 cartons, pallet, etc.). A pallet that groups together non-identical logistics units. A standard or non-standard mixed logistics unit in pallet form as defined by GS1. Package Packaging Packing In relation to transport, any object or set of objects, regardless of its weight, dimensions or volume, that constitutes a unit load when turned over to the carrier, even if its contents are itemized on the transport document. Source: Lamy Transport In relation to transport, a manipulable logistics unit (cartons, pallets, etc.). The packaging used for a consumer unit. By contrast, the term packing is used for logistics units. Packaging for logistics units. By contrast, the term packaging is used for consumer units. Parcel Logistics unit created specifically for an order, whose contents have not been predefined by the supplier. It can only be identified by an SSCC. This corresponds to a non-standard logistics unit in carton form (as defined by GS1), whether uniform or mixed. Shipping unit A grouping of consumer units for shipment. The most commonly used shipping unit in the selective perfumery industry today is the carton, but this may change to the pallet in the future. SSCC Serial Shipping Container Code. An international 18-digit code with a structure defined by GS1. It is used to give each shipping unit a unique identifier. It is shown in GS1-128 format on the shipping unit and indicated in the despatch advice, and used to ensure product traceability. Tester package Mixed, standard logistics unit in carton form. Trade unit Uniform pallet UPC Consumer or logistics unit, identified by a GTIN code and appearing in the supplier s catalogue, that can be ordered or invoiced for trade purposes at any point in the supply chain. A pallet with identical logistics units. A standard or non-standard uniform logistics unit in pallet form as defined by GS1. Universal Product Code. The North American standard for product symbology, equivalent to the EAN-13, with which it is fully compatible. In its most common format, the UPC symbol is the translation of a GTIN-12. 6

7 3 Packing 3 Packing 3.1 Regulations and safety Distributors and manufacturers in the selective perfumery industry must verify that their packaging is in regulatory compliance, notably with EU Directive 94/62/EC. Member States ensure that packaging is not placed on the market unless it meets all the necessary requirements defined in the EU directive, and assume that packaging fulfils all of these requirements when it complies with the harmonized standards. The need to bring their packaging into compliance with regulatory obligations provides companies with an opportunity to undertake an integrated policy of prevention and environmental protection. A guide for bringing packaging into compliance with the regulatory requirements contained in EU Directive 94/62/EC, as amended by Directive 2004/12/EC and transposed into French law in the Environmental Code, and with reference to the harmonized standards published in the OJEU on 19 February 2005, is available at Consumer unit (Product) Product identification Each product ordered and intended for sale must be codified (GTIN) and marked with a barcode (EAN-8, EAN-13 or UPC), so that it can be read using the standard (short-range) terminals at a warehouse or at points of sale, and can be visually read as well. Any product that proves difficult to read or lacks a barcode may be relabelled with the supplier s approval or withdrawn and replaced by the supplier. The barcode must be integrated in accordance with the rules in the GS1 standard, which are reviewed in the GS1 guide entitled Identifier ses products avec un code à barres EAN (Identifying your products with an EAN barcode). This guide is available for download at the GS1 France website via the following address: code_a_barres_ean. For the GS1 standards, a product (consumer unit) may be identified by a GTIN-8, GTIN-12 or GTIN-13. Industry distributors and manufacturers recommend the use of the GTIN-13. The reuse of a GTIN for a new product is prohibited, given the potential for confusion among distributors. Information related to the product: When a manufacturer indicates a use-by date on its products, the date must be easily legible on the product by the platform, warehouse, etc., for picking control purposes, as well as by the customer. It is essential that this date be clearly visible on the logistics units upon their delivery to the distributor. At the time of delivery, the product expiry date must be consistent with the shelf life negotiated between the parties as part of the General Purchasing Conditions (GPC); otherwise the delivery will be rejected. 7

8 3.2.2 Product packaging To the extent possible, the product must be adequately sealtight, and the packaging must be sufficiently strong, to allow for handling and transport conditions in which the product may be horizontal or even upside-down. The products must be delivered in ready-for-sale condition with, as applicable, an integrated tamperproof system (case, jacket, cellophane, insert, sleeve, etc.) to provide evidence that the products have not been opened at any time. The supplier will notify the distributor, as necessary, of any change in packaging involving this tamperproof system prior to the initial delivery of the new version. Products in cellophane must be individually wrapped. The consumer unit must be packaged in such a way that, without affecting the product s desired appearance: the products can be differentiated among a line of products through a distinctive mark; for example, eau de toilette can be distinguished from eau de parfum; its theft prevention mechanism is operable; the packaging differs by product type: testers or product for sale; dummy products can be easily distinguished from other products; the consumer unit s barcode can be easily read Product information updates (GTIN) The supplier must notify the retail chain in advance of any change in the product s characteristics during its lifecycle, and ideally at least two months prior to delivery of the modified product. This prior notice will include (but is not limited to) information regarding: the packing (complete package and grouping, formerly known as the outer and inner packaging) that the distributor will be using, insofar as this is known, for the purpose of placing orders; the supplier s product reference number; the various methods (GTIN/UPC) for identifying the product (at the level of each consumer unit). Given the significant consequences for warehouse operations, this prior notification regarding changes in the complete package concept must be accompanied by a projected date for delivery of the products in their new packing. The supplier will do its utmost (by means of alert procedures - Resolution of pending order): to prevent any delivery that includes both the old and new complete package for a given consumer unit; upon the first delivery with the new complete package, to identify the new complete package by means of a label or insert or provide notification prior to the delivery via specific correspondence or .

9 9 FFPS and FEBEA Logistics Specifications 3.3 Logistics units Typology of logistics units Cartons In each carton, insofar as possible, the products will be presented individually without additional overpackaging, so that the consumer units inside can be easily removed from the package. Bear in mind that reducing waste packaging at the source is a priority. Consequently, the following are not recommended: excess packaging of the consumer unit (e.g., film, sheets); groups of products in cellophane, multi-product cases; packing inserts (cardboard, air cushions, flow packs, etc.). The use of grouping may be considered on the basis of common, shared guidelines that must still be defined by the industry. Any package, whether it contains single or multiple product items, must contain products generated by one and only one order Single-product complete package (Standard uniform logistics unit) The supplier and the distributor will preferably make use of complete packages if the order quantities make this feasible (subject to notification of the information). A complete package means that the package contains only one product in a predefined quantity. The supplier must notify the distributor s personnel of the quantity per complete package. This quantity must be the same in all shipments by the supplier, even when the supplier has more than one manufacturing site. Reminder: Notification must be provided of any changes to the packaging during the product s lifetime (see Section 3.2.3) Parcel (non-standard logistics unit) Parcels will remain single-order. Identical items within a single order must be grouped together in the same package; a given item may not be delivered in several different parcels, except for reasons of volume. A parcel may be, as appropriate: - A non-standard uniform logistics unit - A non-standard mixed logistics unit

10 Non-standard uniform logistics unit: If the quantities ordered are insufficient for delivery in a complete package (e.g., an order of 45 items for a given product, when the manufacturer s standard uniform logistics unit holds 50 items), a parcel will be acceptable. The supplier may use either a special carton as packaging, or the packaging for its standard uniform logistics unit, on the condition that this is specifically identified (see the section entitled Other identification). Non-standard mixed logistics unit (multi-product parcel): These will be deconsolidated upon receipt, and must comply with the following rules: They must be easy to handle (in terms of their size and weight); They must provide adequate protection against shocks, crushing and theft; The packing must be easily recyclable. As an exception to Section 3.3.1, for small items, sub-packaging that is easy to open (bags containing the same product, plastic bands) or separators may be used to facilitate the acceptance process. Whenever possible, avoid mixing products of different types in a single carton, i.e., use different cartons for cosmetic products, alcohol, sample products, care products, etc Pallets Insofar as possible, all of the packages that comprise a single order should be grouped on a single pallet. Cartons that all contain the same products should be grouped on one or more successive pallets. Different orders may not be grouped together on a single pallet. A change of order will be identified and differentiated by a change of pallet. As an exception to this, if an order volume is not adequate to make up a complete pallet or a final complete pallet, one order may be grouped with another, but each grouping of packages should be differentiated by means of pallets or separators Single-product (uniform) pallets For complete pallets holding a single product, the number of layers and the number of packages per layer must be consistent. The normal method of presenting packages, when the order quantities make this possible, is to have a uniform complete pallet (single-order, single-product). Single-product pallets will consist of a single lot whenever possible. If the pallet holds multiple lots, this must be indicated by a visible notice on the pallet Technical characteristics of logistics units The logistics unit must be designed such that it can be maintained and handled under proper conditions during transport between the supplier and the distributor and throughout the distributor s entire logistical operations, potentially including reshipment for export. Accordingly, the logistics unit must: comply with the weight and size characteristics (see Sections , , and );

11 allow for easy manual handling; adequately protect the product against shocks, crushing and theft; allow for stacking up to a height of 2 metres, under normal humidity conditions Cartons The logistics units must have a flat base so they can be placed on conveyors. The use of recycled materials is acceptable, but logistics units made of cardboard must be in good condition. For environmental reasons, printed plastic and other materials are not desirable for the packages Dimensions The dimensions of the complete packages must comply with several criteria: They must be consistent with the objective of filling a complete package as often as possible, taking account of product sales rotations. They must be consistent with transport on standard conveyors. Overly large cartons will not fit on such conveyors; a carton with an excessively small base may cause jamming; cartons that are too low in height may not be properly read. They must be consistent with standard static or dynamic crating units, without unloading (notably for reasons of height). It must be possible to arrange them on pallets so that each package has a visible side upon arrival at the distributor s site, for acceptance purposes (see the section on creating pallets). Accordingly, the recommended dimensions are as follows: Length (in mm) Width (in mm) Height (in mm) Maximum Minimum These recommendations do not apply to: Parcels Boxes of any size that will be included in a complete package approved by the distributor. If the product s dimensions prevent compliance with these dimensions, certain exceptions will be authorized. 11

12 Weight In order to comply with labour laws and handling systems, none of the packages may exceed 15 kg in weight (unless they are expressly approved by the distributor s Purchasing and Supply Chain departments). Until such time as this maximum weight is instituted for all packages, all cartons that exceed 15 kg in weight must be clearly identified (see Pictograms). If this maximum weight limit is exceeded, the distributor reserves the right to refuse the merchandise Closings The packages must be sealed in such a way that they are tamperproof from the outside; therefore, they must be closed off on the top, bottom and sides. The permissible means of doing this are as follows: a guarantee band, customized by the supplier, that allows for easy identification and securing of the merchandise and is sufficiently adhesive to withstand humidity as well as storage and distribution constraints; glue. In this case, the carton must have a pull tab or some system to make the carton easier to open. When overprotection is used on the top of the packages, a carton is preferable to protective heatshrinkable film. The following methods of securing the cartons are prohibited: Steel strapping; Closing methods that use metal (clamps, brackets). These may, however, be used on products that are not intended for sale, upon the distributor s approval. Under no circumstances should the clamps have a cutting edge or any risk of corrosion (the recommended type is zinc-plated); Peel-off adhesives and neutral adhesives (non-customized) Recommended models This list is not exhaustive: Carton with cover or automatic packing case, with the two components being sealed: Carton with flaps or cardboard carton (RSC) with a customized guarantee band: Carton with pull-off tab on the top (on the condition that it can be stacked after opening)

13 Open-face cartons ( ready for sale cartons) may also be used to facilitate storage and picking, but only for complete packages Recycling The packaging raw materials should be selected with a view to minimizing costs, including logistical costs, tax on packaging and the cost of recycling the packaging in accordance with current laws, standards and recommendations. The supplier should verify that the materials or combinations of materials used for the packaging s design are compatible with current, appropriate recycling technology that is industrially available. The packaging should be made from a single raw material whenever possible, to facilitate recycling. Otherwise the components must be easily separable and recyclable Pallets Pallet base The pallet base should be in good condition and usable for storage. It should be a mid-weight, single-use pallet, 1.20 m x 0.80 m, or a European-type pallet. Large box pallets and bulk products on pallets are not acceptable without the prior approval of the purchasing and supply chain departments. Single-use pallets must comply with the following criteria: Height: 162 mm, with a minimum opening of 95 mm; Four entries; each entry must be 800 mm in size; Nine blocks, with a block height of 10 cm; Upper slats and base blocks with a minimum width of 110 mm; Upper slats spaced less than 50 mm apart; Upper slats that are adequately thick to support a weight of one tonne; Minimum plank thickness: 2 cm; Three planks under the blocks running in the same direction: 120 cm. Any pallets that do not meet these criteria will be rejected or must be reconditioned at the supplier s expense. European pallet 80*120 cm The rules of exchange will be addressed in the commercial agreements. Non-standard pallet and lightweight pallet 13

14 Pallet height The maximum permissible height (base included) is: 1.80 m for a multi-product pallet, 1.60 m for a single-product pallet. The maximum height may be customized by certain distributors, after prior discussion and agreement. Stacked 1.20-m pallets are acceptable, with the distributor s approval, so long as the supplier has taken all possible steps to ensure that the pallets are shipped and unloaded upon arrival under the proper conditions: packing that is able to withstand stacked loads, pallet film, load secured during transport Pallet weight The pallet s weight must not exceed 500 kg. The maximum weight may be customized by certain distributors, after prior discussion and agreement Pallet quality Pallet fumigation: for imported goods, in accordance with regulations, wooden pallets must be subjected to high-temperature phytosanitary treatment. The supplier may be asked to provide a certificate of this treatment Arrangement on the pallet The pallets must not be overladen. The merchandise must be distributed uniformly on the pallet in accordance with its weight, to ensure the stability of the load. On a multi-product pallet, the heaviest products should be placed on the bottom and the lightest and/or most fragile products should be placed on the top. Empty spaces should be eliminated or kept as small as possible. The products should be positioned parallel to the edge to prevent any crushing of the lower layers. A palletizing plan based on criss-crossed layers is recommended for greater stability. The cartons should ideally be palletized in accordance with the numbering indicated on the packing list, for easier inspection of the goods upon receipt.

15 3.3.3 Logistics unit identification Identification for a carton-type logistics unit This identification is used to specify the contents of the package. A complete package (standard uniform logistics unit) should preferably be identified by means of a label. This label can be printed on the carton, so long as the print quality allows for easy barcode scanning. Print quality is measured using ISO/IEC barcode quality specifications and in line with GS1 syntax. The identification should include the following information: Written out Barcode Notes Logistics unit code - GTIN X X Product description* X* Number of consumer units in the package Estimated gross weight of the package Expiry date Lot number X X Mandatory when applicable (1) (2) *optional, for security reasons Notes: (1) The expiry date information must be encoded in a six-character, YYMMDD format, with a valid date (values such as or are not permitted), consistent with GS1. When the product does not have an expiry date, this field should not appear on the barcode. (2) Since the lot number field is variable in length, it should preferably appear in the last position on the barcode, to avoid the need for a field separator. The barcode should comply with the GS1-128 (formerly EAN-128) standard and accordingly should include the following identifiers from the GS1-128 standard: (01): code of the standard uniform logistics unit (15): Expiry date (when applicable) (10): lot number (when applicable) The GS1 standard recommends that the minimum print quality in the GS1-128 standard correspond to a C grade in the ISO/IEC 1541 standard (score of 1.5 to 2.5). For parcels (non-standard mixed or uniform logistics units) generated by the picking process at the supplier s warehouse, the contents do not need to be identified on a label. Over the medium term, industry distributors and manufacturers have agreed to use the GS1 logistics label, which allows for the use of a single SSCC per package. This label is described in Section 3.4.1, Identification for a carton-type shipping unit. These two organizations have established a reasonable timeframe for implementing the document s recommendations. 15

16 3.4 Shipping units Identification for a carton-type shipping unit The most commonly used shipping unit in the selective perfumery industry today is a carton-type unit. Whenever possible, shipping units should be identified with an SSCC (package number). Identification is required for all packages. Only one order/shipping label should be affixed to each package. For a standard, uniform logistics unit (a complete package), the order/shipping label should be affixed next to the contents label defined in the previous section, on the visible portion of the package. In accordance with GS1 standards, this order/shipping label corresponds to the customer and transport sections of the GS1 logistics label. These two sections are used to route the merchandise properly to the recipient. These sections may be created, printed and affixed at different times. They may be affixed to one or two labels. The customer and transport sections are generally attached as the order is being prepared or shipped. Ideally, they should be affixed above the product section (rather than below it). The order/shipping label must include the following information: Written out The supplier s name and address X* The name and address of the delivery platform For cross-docking or delivery direct to the retail outlet: the name, number and address of the destination retail outlet The order number of the distributor serviced with the package. X** X Barcode The package s SSCC code X X The package s sequential number within the shipment The package s gross weight The shipping date (if no picking is involved) The number of the supplier s delivery note An area for comments (operations, launch, campaign, etc.) *optional (for security reasons) **optional for cross-docking X X X X X X optional We recommend compliance with the technical specifications in the GS1 standard regarding the logistics label. Companies in the industry have agreed to adopt the GS1 logistics label over the medium term. For more information on the logistics label, refer to the Manuel pratique GS1 France (Applications logistiques des standards GS1) [GS1 France Handbook (Logistics applications of GS1 standards)].

17 17 FFPS and FEBEA Logistics Specifications The logistics label contains three types of information: the product, the customer and the product s transport.

18 3.4.2 Identification for a pallet-type shipping unit For the selective perfumery industry, it is not necessary to identify the pallet as the shipping unit (by affixing an SSCC code), since the most common shipping unit is a package. When the despatch advice is a DESADV message, we recommend that the pallet be identified with an SSCC. Over the medium term, industry firms will be adopting the GS1 standard for cases when a pallet-type shipping unit can be used. The industry has agreed to use the GS1 logistics label in order to comply with standards. The two organizations have established a reasonable timeframe for implementing the shipping unit information regarding pallets Pallet enclosure The adhesive or film should offer guaranteed protection against tampering. The pallet should be properly film-wrapped to include the base so as to prevent the load from sliding on the base and ensure hazard-free racking. BLACK FILM IS PROHIBITED, TO ENSURE THAT THE PACKAGES CAN BE COUNTED DURING THE ACCEPTANCE INSPECTION. The film should be stretched appropriately tight and must not damage the product s retail packaging or the product itself. Carriers are prohibited from removing the film wrap from the pallets. We recommend that the following instructions be visible: Do not depalletize, film-wrapped pallet to be delivered as is. L-shaped corner protectors made of recyclable laminated cardboard may be used to protect the corners and ensure the stability of the products if deemed necessary by the supplier. The pallet should be wrapped in a customized guarantee band or strap to prevent any disputes Other shipping unit identification i. Delivery of an incomplete standard uniform logistics unit When a standard uniform logistics unit is delivered incomplete, labels bearing the words Incomplete carton or Incomplete package should be affixed in a visible location on the package in question, near the identification labels. The identification rules are otherwise the same as those for a non-standard uniform logistics unit. ii. Delivery of groupings When the use of a grouping has been approved by both the supplier and the distributor, the label identifying the grouping follows the same rules as for a carton-type shipping unit.

19 iii. New products / Promotions and promotional items The label for a carton-type logistics unit should ideally include an indication in the comments area that the merchandise contained in the unit is a new product or a promotional item. This will promote quick processing of the merchandise in the logistics centres. Any packages for which the supplier has requested priority processing (new products, product shortages, etc.) must be clearly visible Pictograms When the packages for shipping are palletized, the symbols must be placed where they can be seen. i. Pictograms required by law Suppliers are required to comply with existing standards regarding the mandatory display of pictograms on original cartons (complete packages) or reconditioned cartons (order picking). These include, but are not limited to, information on the recycling of packaging or the transport of hazardous goods. It is the responsibility of the suppliers to adapt to regulatory changes within the legal time period for doing so. For products governed by UN 1266 or UN 1250 (the transport regulations on hazardous products): Hazard logo - Minimum dimensions of 141 x 141 mm (100 mm square, must be attached in lozenge form) - If the packaging dimensions make it impossible to position the logo, a 70 x 70 m label (50 x 50 square) may be used as an exception. - Black on contrasting background - Visible on the entire pallet (whenever possible) Flammable logo - Only if the gross weight of the packaging exceeds 30 kg or there is an inner package that exceeds 500 ml - Where the hazard logo is placed - Minimum dimensions of 141 x 141 mm (100 mm square, must be attached in lozenge form) - Printed in black on a red background UN 1266 Perfumery products or UN 1950 Aerosols Net quantity: x L Regulatory texts - Only if the gross weight of the packaging exceeds 30 kg or there is an inner package that exceeds 500 ml - UN 1266 Perfumery products or UN 1950 Aerosols depending on the packaging s content - Net quantity: x L (x = net quantity of alcohol per carton) 19

20 ii. Pictograms on the handling of goods - general To facilitate handling and storage operations, suppliers must comply with the international standard NF EN ISO 780 on pictorial markings for the handling of goods. iii. Pictograms on the handling of goods - special cases Heavy weight: Packages that exceed 15 kg in weight must be identified by a special, clearly visible label. An example is given at right. Packaging stacking capacity: If the packaging stacking capacity is not explicitly indicated, it is set by default at a maximum of two layers. The numeral 8 indicates the maximum number of layers in which the cartons may be stacked in static conditions.

21 Order 4 Order 4.1 Creation Contractual aspect of orders An order based on the supplier s price rates gives rise to a sales agreement that entails compliance with delivery and payment terms. Additions, corrections or modifications to the orders may only be made in the same format as the original order. Any other format used for these modifications will have no contractual value and will not be enforceable without the express written approval of the parties, issued by the distributor s purchasing or supply chain department (see the distributor appendix) and the supplier s sales administration department Procedure for issuing orders Orders will be issued solely by the following means: , E.D.I. (Electronic Data Interchange), Fax, Post. If there is a change in your contact information (address, fax number, contact persons, etc.), remember to provide formal notice adequately in advance to the appropriate distributor personnel. 4.2 Compliance with the order The items that make up the order may not be interpreted or modified. Likewise, the order picking process must comply scrupulously with the order created and must reflect that order. For example, orders should not be grouped, and no additional products should be added Delivery date and times The supplier agrees to adhere to the delivery date and times stipulated either on the order (within a reasonable period of time agreed between the supplier and the distributor) or during the supplier/distributor conference, and more broadly agrees to comply with the Delivery Terms and Conditions (see Section 6). In particular, during sales or promotional campaigns or in the case of new products (excluding POS displays), a delivery schedule should be confirmed by both the supplier and distributor (order date, availability date, delivery date, shop display date, etc.). 21

22 If the supplier is unable to comply with the requested delivery date, it agrees to contact the authorized department at the distributor, which will have the power to decide on a projected delivery date, postponement or cancellation of the delivery. The delivery must subsequently comply with the criteria defined and confirmed at the supplier/distributor conference (see Section 5) Contents of the order Barring a specific agreement with the distributor, all orders must be delivered at one time, in full, in accordance with the products and quantities ordered Delivery location The supplier agrees to comply with the delivery location indicated on the order. Any waivers will need to approved in writing by the appropriate department at the distributor.

23 23 FFPS and FEBEA Logistics Specifications 5. Supplier/distributor conference 5 Supplier/distributor conference The carrier or supplier will contact distributors via , fax or telephone, based on the agreements with each distributor: at least three days before the actual delivery date (including cases when messaging is used) when the delivery period is at least six days, 48 hours before the actual delivery date when the delivery period is less than six days. A fixed conference time is preferable, based on an agreement with each distributor. Even in that case, preliminary contact should be made to provide information about the delivery. The supplier will distinguish non-market orders from standard orders through the use of separate packages and a specific line when conferring with each distributor. When requesting a conference with the distributor or confirming a fixed conference, the following information must be provided: the order numbers, the address of the logistics site, a desired date and time for the supplier and distributor to confer, the total number of pallets, the total number of packages. Depending on the agreement with each distributor, the supplier may also communicate: the department numbers, if any; a packing list in Excel spreadsheet format for each order number; the number of the destination retail outlet (required for cross-docking); the grouping unit, if different from the anticipated unit; the total number of items.

24 6. Delivery 6 Delivery 6.1 Delivery guidelines An individual order must always be delivered at one time in full, whether by the supplier or the carrier. Left-over items will not be accepted except with the distributor s specific approval Delivery locations The distributor will indicate the delivery locations, e.g., depots, warehouses, platforms or other distribution centres Delivery dates and times The supplier or its carrier will deliver the merchandise at the date and time that were assigned to it by the relevant distributor department at the supplier/distributor conference. The delivery process is managed jointly by the distributor and the supplier. The supplier must comply with the delivery time. The distributor must do its utmost to receive the carrier without forcing the carrier s personnel to wait. In each case, the parties are asked to comply with a 30-minute window in adhering to the schedule. A 60- minute window will be permitted on occasion when unforeseen problems arise (breakdown, traffic, obstructions at the unloading docks, etc.). The distributor or supplier reserves the right to refuse delivery if the other party repeatedly fails to comply with this obligation. In such a case, a new conference must be requested and confirmed by the relevant departments Special delivery conditions The vehicles used must be compatible with delivery to the dock or must be equipped with a vehicle lift or liftgate. Other specifications may be added as needed for certain distributors. 6.2 Documents to be provided for warehouse delivery Every order delivered must be accompanied by three documents: the bill of lading, the delivery note and the packing list. In certain cases, as agreed by the distributor and supplier, the delivery note and packing list may be combined into one document.

25 25 FFPS and FEBEA Logistics Specifications Bill of lading / consignment note / CMR The bill of lading must include the following information: a unique number for the carrier; the name and address of the shipper or originator of the order; the complete name and address of the recipient; the scheduled delivery date and time; the order number(s); the total number of unit loads and their weight; the total number of packages (if several orders are delivered as part of a single bill of lading, an itemized list of the number of packages delivered per order must be included. This may be an attached document but it must provide a means of checking the delivery against the order); if possible, the carrier s name and address, as well as the name of the final driver and the registration numbers for the vehicle and trailer; specific information such as the seal number for the trailer or pallet Delivery note The delivery note must be readily identifiable. We strongly recommend that it be placed in a visible pocket marked Documents enclosed. For a delivery that includes several orders, there will be one delivery note for each order delivered. The delivery note must include the following information: the delivery note number, the date of the delivery note, the name and address of the shipper or shipping site, the recipient s name and address (in the case of cross-docking, the name, number and complete address of the end recipient = retail outlet) the total number of packages and pallets, the customer s order number, an itemized list of the delivery, sorted by GTIN code or in the sequence shown on the order: o Supplier reference number, o Consumer unit GTIN, o Name/description, o Grouping, o Number of items ordered, o Number of items delivered, o The total number of items ordered and items delivered.

26 6.2.3 Packing list The purpose of the packing list is to indicate the contents of each unit load or package. A packing list must be provided for each order delivered. The packing list must include the following information: The packing list number (this may be identical to the delivery note number), The date of the packing list, The name and address of the shipper or shipping site, The recipient s name and address, The order number, An itemized list of the delivery: - Pallet number, - Package number (sequential number and SSCC/GTIN), - Supplier reference number, - Consumer unit GTIN, - Grouping unit, - Name/description, - Number of items in the package, The total number of pallets in the delivery, The total number of packages in the delivery, The total number of items in the delivery. If a DESADV (despatch advice) message has been sent regarding the shipment, the packing list is not required. 6.3 Unloading procedure A visual inspection is performed at the time of unloading with regard to the quality of the load and then the quantity to be unloaded. The delivery must be unloaded in safe, secure conditions. If the nature of the load poses a risk during the unloading process (layered pallets, poor palletizing, etc.), the delivery will be rejected and a reason for the rejection provided. During the inspection it must be possible to verify the names and addresses of the recipient indicated on the packages and/or pallets. Any packages and/or pallets with a different destination address from the acceptance location will be rejected. Once the acceptance inspection has been completed, the carrier s documents must be duly completed and signed by the distributor.

27 27 FFPS and FEBEA Logistics Specifications Contacts Contacts Any questions relating to this document may be sent to: ECR France 14 rue Magellan Paris, France GS1 France 2 rue Maurice Hartmann Issy-Les-Moulineaux, France Tel.: +33 (0) ecr@ecr-france.org Tel.: +33 (0) info@gs1fr.org 3