March /29/16 P a g e 1

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1 March /29/16 P a g e 1

2 Table of Contents Vendor Compliance Guide Introduction... 3 Ground Routing Instructions... 4 UPS Contact Information Drop Shipments Carton Labeling Packing Lists Additional Insured Vendor Carton Packing Instructions Vendor Pre-Pack Requirements Back Order Shipments Ship Date / In-house Date Vendor Invoice Processing Procedure UPC Product Coding UPC Bar Code Label Placement Private Labeling Charge-Back Policy Vendor Acknowledgement of Compliance Guide /29/16 P a g e 2

3 Vendor Compliance Guide Introduction This guide is designed to assist you in preparing, packing, invoicing and shipping merchandise to MainGate, Inc. (MG) in accordance with our requirements. SUPPLIER ACKNOWLEDGEMENT OF ROUTING GUIDE (PAGE 21) MUST BE SIGNED AND RETURNED TO MG WITHIN 5 BUSINESS DAYS OF RECEIPT OF ROUTING GUIDE. The instructions in this guide must be followed unless specifically instructed otherwise by the Buyer, Director of Operations or as indicated on MG s Purchase Order. Vendors are responsible for ensuring merchandise arrives free of damage to our freight carriers. Vendors are responsible for shipping all MG s Purchase Orders without substitutions or damaged merchandise. All future exceptions to this routing guide must be submitted in writing to the Finance Department, at the following address. Prior exceptions will no longer be honored. MainGate Inc. Attn: Finance Department 7900 Rockville Road Indianapolis, IN (phone) (fax) ap@maingateinc.com Any charge that MG incurs due to a vendor s non-compliance will be charged to the vendor or deducted from the vendor s invoice. Failure to comply with the guidelines in this manual will result in chargebacks found on page 20, returned goods or possible discontinuance of doing business with MG. 03/29/16 P a g e 3

4 Ground Routing Instructions MG expects suppliers to ship materials according to the following standards unless otherwise directed on Purchase Order documents or other written communications. Contact your local carrier for assistance in processing if needed. Routing Instructions Zone and freight breakdown for inbound domestic ground freight: All freight, not skidded, and less than 450 lbs shipping to: MainGate Inc 7900 Rockville Rd Indianapolis, IN Send via UPS Small Package freight collect (Shipper # -- contact MG Buyer) to be processed on a UPS compatible shipping system. All freight, not skidded, and less than 450 lbs shipping to: Vikings Distribution Center 2700 East 81 st St Bloomington, MN Send via UPS Small Package freight collect (Shipper # -- contact MG Buyer) to be processed on a UPS compatible shipping system. PLEASE NOTE: In UPS Reference #1 enter only the numeric MG Purchase Order number found in the top right hand corner of the Purchase Order. In UPS Reference #2 enter only the numeric Team number found in the bottom right hand corner of the Purchase Order. The vendor will incur a chargeback for non-compliance. See Reference A, pg /29/16 P a g e 4

5 Reference A 03/29/16 P a g e 5

6 Freight 451 lbs to 5000 lbs shipping to: MainGate Inc 7900 Rockville Rd. Indianapolis, IN Send via UPS Freight freight collect for all states in the Continental U.S. Freight 451 lbs to 5000 lbs shipping to: Vikings Distribution Center 2700 East 81 st St Bloomington, MN Send via UPS Freight third party for all states in the Continental U.S. The BILL TO on the bill of lading must read: MainGate Inc 7900 Rockville Rd. Indianapolis, IN Freight above 5,001 lbs actual or dimensional weight; contact Director of Operations at (317) or via If a shipment is sent to the incorrect MG Distribution Center, the vendor will receive a charge-back. The vendor will be charged freight in and freight out plus an additional 15% (of the freight charges) to move the merchandise to its intended destination. 03/29/16 P a g e 6

7 Domestic Air Shipments No domestic air freight shipments of merchandise are permitted without authorization in writing by the MG Buyer. The vendor will be responsible to pay the total freight charges for all air shipments not authorized in writing by a MG Buyer. Expedited Routing Guide Inbound expedited freight less than 450 lbs send via UPS Small Package freight collect using the UPS account numbers listed on the previous page. UPS Small Package Inbound expedited freight over 450 lbs shipping to the following address: contact Director of Operations at (317) or via shipping-vcg@maingateinc.com. MainGate Inc Vikings Distribution Center 7900 Rockville Rd East 81 st Street Indianapolis, IN Bloomington, MN /29/16 P a g e 7

8 Contact information and hours of operation. MG s Shipping / Receiving Department hours of operation are Monday-Friday, 8:00a.m. 4:00p.m. EST for the following locations. MainGate Inc Rockville Road Indianapolis, IN MG s Shipping / Receiving Department hours of operation are Monday-Friday, 8:00a.m. 4:00p.m. CST for the following location. Vikings Distribution Center 2700 East 81 st Street Bloomington, MN You must contact the Shipping / Receiving department 72-hours in advance to schedule an appointment for full truckloads at shipping@maingateinc.com. If a Freight Carrier misses their original scheduled appointment it is the vendor s responsibility to call and schedule a new appointment. Please notify MG s Shipping / Receiving Department if the quantity of cartons, changes prior to shipment when you have a scheduled appointment. All merchandise must be shipped through freight carriers approved by MG. No COD shipments will be accepted. Shipments must be palletized as follows unless otherwise noted on the Purchase Order: Pallets must measure 48 x 40 Load pallets by Purchase Order number. Every effort should be made to combine Purchase Orders, if necessary, on to one pallet to reduce freight costs. If damage to merchandise will occur from stacking pallets, clearly mark DO NOT STACK in bold 4 letters on each pallet. Wrap each pallet with clear shrink-wrap. The Bill of Lading (see Reference B on pg. 9) must list every Purchase Order with their respective carton counts. The total carton count per shipment and class of merchandise must also be listed on the Bill of Lading. Multiple Purchase Orders shipped on the same day to the same destination from the same origin using the same freight carrier must move on one Bill of Lading (see Reference B on pg. 9). 03/29/16 P a g e 8

9 Reference B 03/29/16 P a g e 9

10 MG UPS Contact Information UPS Small Package Freight or Third Party UPS Supply Chain Solution FC Acct. # UPS Supply Chain Solution FC Acct. # UPS Supply Chain Solution /29/16 P a g e 10

11 Drop Shipments 1. All Drop Shipment instructions will be indicated on the MG Purchase Order 2. One of the following Proof of Delivery options must be available to the MG Buyer. UPS Worldship Ship to notification (Quantumview) Delivery notification (Quantumview) UPS SCS Ship to notification (Flex Global View and/or MyFreight) Delivery notification (Flex Global View and/or MyFreight) UPS Freight Ship to notification (MyUPSFreight) Delivery Notification (MyUPSFreight) 3. No payment will be made on a Drop Shipment without a Proof of Delivery Notice sent to the MG Buyer. 4. If a Drop Shipment is received at MG s warehouse instead of the Drop Ship address noted on the Purchase Order, the vendor will receive a charge-back. The vendor will be charged freight in and freight out, plus an additional 15% (of the freight charges) to move the merchandise to its intended destination. 5. All shipments must comply with all guidelines in this Compliance Guide. 03/29/16 P a g e 11

12 Carton Labeling 1. Each carton MUST have a label that includes all of the following information easily visible on the outside of each carton. 2. Each carton label must remain visible on the shrink-wrapped pallet. A pallet label must be placed on the outside of the shrink-wrap that lists the total carton count per Purchase Order on the pallet. 03/29/16 P a g e 12

13 Packing Lists 1. A Packing List must be located inside of Carton #1 for each Purchase Order. Carton #1 must be clearly labeled Packing List Enclosed. 2. Packing List(s) must state the quantity of each item shipped, regardless of the quantity ordered. 3. Packing List(s) must be legible, written in English and easily understood. 4. Packing Lists must include the following information: a. Vendor name, phone number and address b. MG s Purchase Order number(s) c. Total carton count and total weight d. Date shipped e. Description, size, color and quantity of each item Additional Insured Vendors Certificate Requirement As a seller of products manufactured by others, MainGate seeks to minimize risk by obtaining vendors coverage from each of its manufacturers and /or suppliers. If your company manufactures or supplies a complete and finished product for MainGate (raw material and components of other products do not qualify) provide a certificate of insurance naming MainGate, Inc. as an Additional Insured Vendor on your General Liability policy. The minimum acceptable coverage limit is $1,000,000. A new certificate must be provided annually when your policy renews or whenever you change insurers. Please provide other testing certifications or certificates of conformance that you may have for the product sold to MainGate as well. However, these certifications do not replace the requirement for providing Additional Insured Vendors coverage. Please mail or fax Certificates of Insurance to: MainGate, Inc. Attn: Risk Management 7900 Rockville Road Indianapolis, IN Phone: (317) Fax: (317) /29/16 P a g e 13

14 Carton Packing Instructions 1. Pack each Purchase Order in separate cartons. PLEASE NOTE: Use proper ECT cartons to insure packages arrive damage free. 2. Sizes of the same style may be packed in the same carton to save shipping cost; these cartons must be labeled as Mixed Sizes. Different styles may not be packed in the same carton. 3. Pack cartons as compact as possible without damaging goods or causing cartons to bulge. 4. Unless otherwise instructed by the Purchase Order or MG Buyer, all subsequent shipments of a Purchase Order must contain the same quantity per carton as prior shipments. 5. ALL IMPORTED MERCHANDISE MUST HAVE ONLY THE MG NAME AND/OR LOGO ON THE OUTSIDE OF EACH CARTON. NO VENDOR IDENTIFICATION CAN BE VISIBLE ANYWHERE ON THE CARTONS. Vendor Pre-Pack Requirements DEFINITION: A Pre-Pack is identified by the instructions given on the Purchase Order. A carton containing Pre-Packs must indicate the quantity of Pre-Pack bundles on the carton label, not the quantity of items. Each individual Pre-Pack must be bar-coded with the UPC information provided on the Purchase Order. VENDOR RESPONSIBILITIES 1. All items shipped in a Pre-Pack bundle must be pre-ticketed. 2. Each carton must be marked with the word Pre-Pack using bold 4 letters. 3. Each individual Pre-Pack bundle should be labeled with the Pre-Pack quantity. 03/29/16 P a g e 14

15 Back Order Shipments We expect Vendors to ship all MG Purchase Orders complete. When this is not possible, Vendor Back Order shipments must use the following guidelines: The MG Buyer must be notified prior to shipment that the Purchase Order will be shipped incomplete. DO NOT DELAY shipment of the original Purchase Order because of Back Orders. DO NOT SHIP items after the designated cancel date without the MG Buyer s approval. All Back Orders will be shipped at Vendor s expense. Ship Date / In-house Date We expect Vendors to ship MG Purchase Orders (see Reference A, pg 5) on time. Late shipments and orders shipped early without buyer approval, will be assessed a chargeback to be determined by the MG Buyer. Due Date This is the first date the order can be received at MG. Cancel Date This is the last date the order can be received at MG. Instructions / Notes This is the designated message area. The MG Buyer will list special instructions in this area on the Purchase Order. 03/29/16 P a g e 15

16 Vendor Invoice Processing Procedures 1. Mail original Invoice no earlier than day of shipment. 2. Send Invoices to the attention of Accounts Payable at the following address: MainGate Inc Rockville Road Indianapolis, IN phone: fax: Each Purchase Order must be invoiced separately. 4. All orders are subject to terms stated on the MG Purchase Order. 5. Invoices must contain: Purchase Order number Style, color and size breakdown Quantity Unit and Extended costs Total cost Description of all additional charges Merchandise description Payment terms Date shipped Freight Carrier Number of cartons Tracking numbers needed for drop shipments only 7. Copies of Invoices used as Packing Lists will not be considered valid invoices for billing purposes. 8. Purchase Order price variances, services not performed, defective merchandise and concealed item shortages will be deducted from invoices. 9. Deductions and other Invoice adjustments cannot be disputed after 60 days from the date the Invoice is paid. 10. Invoices without Purchase Order numbers or other missing information (listed above) will be assessed a charge-back fee of $50. If we cannot resolve an Invoice issue, the Vendor will be notified and the Invoice will be placed on Hold status until the issue is resolved. Payment terms on Hold Invoices begin when the Hold status is removed. Late fees/charges by Vendors will not be paid on Hold Invoices. 11. The Vendor will pay freight costs on returned goods due to Vendor error. 12. MG will deduct freight charges prior to paying Invoices. The Vendor must pay freight or comply with our Preferred Carrier guidelines unless otherwise directed by the MG Buyer. 03/29/16 P a g e 16

17 UPC Product Coding 1. All items must be barcoded unless otherwise directed by the MG Buyer. 2. MG is committed to using the Universal Product Code (UPC) bar coding on all items (except blank goods). MG will provide SKU number, description and UPC number for each style, color, and size of item on each Purchase Order. 3. MG SKU Number and Description must be on each UPC label and will be unique to the style, color and size. Retail price may be required when applicable. 4. When printing bar code labels, print the entire 12-digit UPC number under the bar code. This includes the leading UPC type identifier number, 5-digit vendor number, 5 digit style identifier, and check digit in the 12 th position (see example below). MG UPC 5. A vendor charge-back of 25 per item (not to exceed $1,000) will be issued against Vendors not complying with MG s UPC product coding policy. 6. Vendors are expected to produce the MG UPC codes in their facility. Vendor UPC bar codes must be approved by the MG Buyer before they are used. Do not use unauthorized or altered UPC bar codes. 7. When a Vendor is unable to produce the UPC bar codes, MG will supply them. The Vendor must attach them to the correct items prior to shipment to MG. 8. The Vendor must verify that the UPC bar code labels match the information on the Purchase Order and the items being labeled before applying the labels to the items. 9. The Vendor must inform the MG Buyer IMMEDIATELY, before applying the labels to the items, of shortages or incorrect UPC bar code. 03/29/16 P a g e 17

18 UPC Bar Code Label Placement Every effort must be made by the Vendor to be consistent when UPC bar coding MG items. Do not apply the label over any size, color codes, style numbers, special user instructions, or serial numbers unless otherwise instructed. See MG s Purchase Order for any special UPC bar coding instructions. Private Labeling MG may require merchandise to be private labeled. This will be noted on the purchase order in the body of the text. Vendors are expected to produce the appropriate private labels as noted on the MG Purchase Order. If vendors are unable to produce private labels, MG will supply them. A vendor charge-back of $0.75 per item will be issued against vendors not complying with MG s private labeling instructions. 03/29/16 P a g e 18

19 Charge-Back Policy Merchandise shipped to MG that does not comply with our floor-ready merchandise standards add unnecessary costs and delays. It is the intention of MG to minimize the costs for our vendors and us, and expedites the merchandise to our selling floor as quickly as possible. When costs rise due to our vendors non-compliance with clearly defined standards, MG will take the appropriate deductions (charge backs) from the vendor invoice. These deductions are intended to recover the costs incurred by MG for vendor noncompliance not to unfairly penalize our vendors. The standards we have outlined in this guide are prevalent throughout the retail community. Please be aware that charge backs will be deducted from invoices for each infraction: Defective and mis-shipped merchandise (pg. 3). Wrong quantities, styles, colors or sizes were shipped (pg. 3,14). Purchase Order number was not entered in the UPS reference 1 field (pg. 4,5). Team number was not entered in the UPS reference 2 field (pg. 4,5). Improper routing of shipment (pg. 4,6,7). Shipped to the wrong address (pg. 4,6,7). Multiple Purchase Order s shipping on the same day did not move on one transportation bill (pg. 8). Drop shipments shipped to our main DC instead of the drop ship address noted on the Purchase Order (pg. 6,11). Carton number not noted on the outside of each carton (pg. 12). Purchase Order number not on the outside of each carton (pg. 4,12). Wrong Purchase Order number referenced on the cartons and packing slip (pg. 4,12). No packing slip/incorrect information on the packing slip (pg. 13). Multiple Purchase Order s shipped in one carton (pg. 14). Order shipped early without buyer approval (pg. 15). Order received by MG after in-house due date (pg. 15). Multiple Purchase Order s listed on one invoice (pg. 16). Product is not bar coded or bar coded incorrectly (pg. 17,18). Noncompliance with MG s private labeling instructions (pg. 18). Charges vary per violation and are based on the severity of the infraction. For example, shipments made to the wrong address will incur an invoice deduction of at least 10% or more as well as non-payment of shipping charges. Any order that arrives 10 days or more past our in house date without authorization will be subject to an invoice deduction of 25% or greater or face complete return at vendor s cost. Any shipment without our Purchase Order # clearly marked on the outside of each carton will incur an invoice deduction of 10% or greater. Multiple Purchase Order s shipped with improper routing methods will incur an invoice deduction of 15%, plus freight charges. Incorrect routing of drop shipments will incur an invoice deduction of 15%, plus the cost of freight in and freight out. Again, these requirements are necessary to minimize the amount of handling in our DC, and to ensure that product is on our selling floor in a timely fashion. Please be sure to carefully read and follow these requirements to avoid invoice deductions. All inquiries related to vendor compliance charge-backs must be submitted in writing within 60 days of the shipment received date. (See example Fee Grid for Chargebacks - Reference C on page 20) 03/29/16 P a g e 19

20 Reference C 03/29/16 P a g e 20

21 Vendor Acknowledgment of Compliance Guide The undersigned, as an authorized representative of said company, acknowledges receipt and understands the expectations outlined in MG Compliance Guide. Vendor Company: Authorized Officer: (Signature) Name: (Please Print) Address: Phone Number: Date: Comments: Return to MG Fax: Mail: MainGate, Inc. Attn: Finance Department 7900 Rockville Road Indianapolis, IN /29/16 P a g e 21