Doing Business with CVS.com Drop Ship Partners Guide: Terms and Conditions

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1 Ding Business with CVS.cm Drp Ship Partners Guide: Terms and Cnditins (Appendix t Drp Ship Agreement) Standards cntained in the dcument g int effect 3/1/2016 1

2 N Details Page N 1 Overview 3 2 Cnnecting with Cmmerce Hub 3 3 Inventry 3.1 In Stck Rate 3.2 Inventry Feed 3.3 Discntinued Items 3.4 Out f Stck Items 4 Order Fulfillment 4.1 PO Acknwledgement 4.2 Order Shipment & Cancellatin 4.3 Order Packaging & Label Requirement 4.4 Packing Slip 4.5 Freight Terms & Carriers 3 4, 5 5 Returns 6 6 Web Cntent 6.1 Item Set UP 6.2 Web Cntent 6.3 Image Requirement 7 Sku Maintenance 7.1 Cst Change Prcess 7.2 Prduct Cntent & Image Changes Prduct Recalls 7 9 Exhibits 8 2

3 1. Overview Suppliers that intend t d business with CVS.cm as drp shippers will need t cmply with the terms and cnditins specified in this guide. This guide shuld be used in cnjunctin with the terms and cnditins detailed in the Drp Ship Agreement, CVS Supplier Plicy and ther plicies listed n Any exceptins t this guide shuld be requested in writing by ing DCVendrInquiries@cvscaremark.cm. A CVS representative will review the request and reach ut t yu within 3 business days f receiving the request. 2. Cnnecting with Cmmerce Hub The Supplier agrees t cnnect with CVS s drp ship partner, Cmmerce Hub t enable drp shipment. The Supplier will be required t sign an agreement with Cmmerce Hub and pay the necessary set up and transactin fees as per the attached supplier guide (Exhibit 1). The Supplier will be respnsible fr ensuring integratin with Cmmerce Hub is cmplete in a timely manner in time fr assrtment launch. 3. Inventry The Supplier shall: Maintain an in-stck rate f at least 98% at any pint in time fr prducts supplied thrugh CVS.cm Update inventry in Cmmerce Hub thrugh a feed in the frmat required by Cmmerce Hub 7 days a week. The feed must cntain ONLY items agreed upn with CVS as being a part f the CVS.cm nline assrtment. The CVS apprved items will be cmmunicated t the vendr prir t launch. Discntinued Items: Shuld be identified n the Inventry Summary Reprt 30 days prir t the discntinuatin. The supplier shall remve these discntinued items frm the Inventry feed 30 days after ntifying CVS. Out f Stcks: Supplier shall indicate 0 inventry fr items that are ut f stck in the feed and prvide visibility int dates the items are expected t be back in stck. N item shall be marked ut f stck fr any reasn ther than genuine ut f stck scenaris 3

4 4. Order Fulfillment: 4.1. PO Acknwledgement CVS rders will be transmitted t Supplier thrugh a PO via Cmmerce Hub. Supplier shall cnfirm the PO as fllws: Brwser Based Cnnectin: Supplier shall access rders n a real time basis but at least tw times daily 7 days a week (12 pm and 5 pm lcal time) and acknwledge the PO. PO acknwledgement is defined as supplier dwnlading the packing slip. Standard Cnnectin: PO acknwledgement will be generated systemically and transmitted thrugh Cmmerce Hub in accrdance with the terms f integratin Order Shipment r Cancellatin: Suppliers shall fllw a plicy t Fill r Kill at the Order Line Level Suppliers shall ensure that the rders/lines are cnfirmed fr shipment r cancelled within 24 hurs f the PO being made available t the vendr thrugh Cmmerce Hub. In case f shipments, the prducts must shw updated status pick up by carrier, scans etc within 24 hurs f receipt f a PO. Hurs f peratin apply t all 7 days in a week. We have implemented 2 day business shipping natinwide acrss ur fulfillment channels fr all rders. T supprt this fr ur drp ship prgram, ur expectatin wuld be: All rders received by 12 pm EST (Cut ff time) will be required t be prcessed and shipped same day. Hwever, please make every effrt where pssible t ship rders same day even if received after cut ff Fr example: Orders placed by cut ff time Mnday will be shipped ut by UPS same night (based n UPS pick up time). UPS will deliver this rder t custmer by Wednesday End f Day. Orders placed by cut ff time Thursday will be shipped ut by UPS same night (based n UPS pick up time). UPS will deliver this rder t custmer by Mnday End f Day All rders received after 12 pm EST will need t be prcessed and made available t ship by UPS n later than the next scheduled pssible pick up (same day r next day) If yu are cnnected thrugh a Brwser with Cmmerce Hub, yu wuld be required t ensure that rders are retrieved in a timely manner as ften as pssible in the day but at a minimum 2 times daily: 12 pm EST and 5 pm EST Package tracking numbers will be made available and upladed int Cmmerce Hub daily Supplier shall cancel an rder based n a request frm the CVS Custmer Care team if items have nt already been shipped within 24 hurs f rder being received by Supplier 4

5 4.3. Order Packaging/Label Requirements: Supplier will ensure the packaging prcedures listed belw are fllwed: Select prper bx size fr the delivery. Use smallest size required t safely transprt the items Bxes shuld nt have Supplier lgs, cntact infrmatin r prmtinal materials included Ensure that the bxes d nt have any labels r infrmatin affixed that identifies cntents f the package except when required by law Pack items with care. Be sure t fill empty space with packing material (green pillw fill; bubble wrap shuld nt be used) Ensure that the packing slip is included with the shipment inside the bx. The packing slip shuld meet CVS standards All custm packing slips need prir CVS apprval. Ensure that the crrect items are included match CVS item # in the rder with the UPC and item descriptin D nt verlad a cartn. If required use multiple cartns t distribute the weight evenly acrss cartns. Label with apprpriate multi cartn decals All liquids shuld be taped and bagged (including laundry detergent) All prducts with remvable lids must be taped All repellants, insecticides and ther similar items MUST be sealed in a zip lck bag The fllwing prducts MUST be bubble wrapped: Glass, Pwdered Make Up, Canned Gds 4.4. Packing Slip: A CVS apprved packing slip must be included in every shipment. The packing slip must fllw the guidelines in the attached dcument/guide (Exhibit 2). Any exceptins t the packing slip will need t be apprved in writing by CVS. Fr exceptin apprvals please DCVendrInquiries@cvscaremark.cm Freight Terms and Carriers CVS and Supplier shall perate under a Cllect Freight Mdel. Prduct csts shall exclude freight rates. CVS will prvide Supplier with a UPS sub accunt number t be used by supplier fr shipment. Supplier shall prvide the necessary infrmatin required t create the UPS accunt number by cmpleting UPS Set up Frm All Suppliers shall ship based n the shipping methd specified n the P.O. 5

6 5. Returns In lieu f custmer returns and damages, CVS will deduct a 3% allwance at the end f each quarter. In an extenuating circumstance, CVS reserves the right t true up fr returns that exceed 3% 6. Web Cntent 6.1. Item Set up Supplier will be respnsible fr prviding timely and accurate infrmatin t cmplete the prduct set up in CVS PIM systems. This includes all the infrmatin required in the cnslidated assrtment template prvided as a part f the Supplier package including UPCs, Dimensins, Item Numbers, etc 6.2. Web Cntent Web Prduct Cntent includes the prduct infrmatin including prduct titles, descriptins, images and ther cntent required t display prducts nline. The web cntent needs t meet the requirements f a style guide. If the Supplier is unable t prvide the web cntent, Supplier needs t cmmunicate this t CVS within 2 days f receiving the request fr the cntent. 6.3 Web Image Requirements Images must be a standard jpg images n a white backgrund. Up t five images can be shwn n the site. Lifestyle images are nt acceptable primary images (images that include bdy part, items in use etc. 7. SKU Maintenance: 7.1. Cst Change Prcess: Cst Changes must be received 90 days prir t the effective date. CVS reserves the right t evaluate all cst increases and make a determinatin n if these are acceptable. In the event 6

7 there is disagreement n csts, CVS will reserve the right t remve the prducts frm CVS.cm. All cst changes will be sent t Debra.Armstrng@cvshealth.cm CVS will nt be respnsible fr any invicing issues caused frm a different cst charged by the supplier befre the 90 day perid Prduct Cntent and Other Changes: Supplier shall be respnsible fr prviding CVS with current prduct infrmatin including csts, images, prduct cntent All prduct cntent and imaging changes will be cmmunicated t CVS as sn as pssible within a week f the Supplier becming aware f these All prduct changes will be cmmunicated t DCPrductinChangeAdmin@cvscaremark.cm with the subject line cntaining the naming cnventin Vendr Name_Prduct Change_Date (Frmat: 00/00/00). 8. Prduct Recalls: Supplier will be respnsible fr cmmunicating prduct recalls t CVS as sn as a recall is annunced. Supplier shall als ensure that any rders in transit fr recalled prducts are stpped prir t shipment if pssible. All recalls will be cmmunicated t DCPrductinChangeAdmin@cvscaremark.cm with the subject line cntaining the naming cnventin Vendr Name_Prduct Recall_Date (Frmat: 00/00/00). Please prvide the fllwing infrmatin when cmmunicating recalls: Vendr/Merchant SKU and UPC f affected prduct(s) Effective date f the recall Detail/Reasn f recall including if pssible FDA r US Cnsumer Prduct Safety Cmmissin URL Item shuld be discntinued frm inventry feed immediately 7

8 Exhibits Exhibit Details Attachment Exhibit 1 Cmmerce Hub Supplier Guide Cmmerce Hub Intrductin t supplie Exhibit 2 Packing Slip Guide Exhibit 3 UPS Set Up Frm UPS accunt integratin.dc UPS New Accunt Request Frm.xls Exhibit 4 Cmmerce Hub Set up Frm CVS - CmmerceHub - New Vendr Setup F 8

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