Order Processing and Logistics Guidelines

Transcription

1 Order Processing and Logistics Guidelines Effective Date: Revised: Revised: In order to offer our customers Perfect Service, C&H Service LLC and its related entities (C&H Distributors, Products for Industry, Avenue Industrial Supply, C&H Productos and IndustrialSupplies.com) have established the following guidelines. These guidelines are an integral component of the conditions of purchase and need to be followed closely. 1 Purchase Orders (PO) and Purchase Order Acknowledgements (POA) C&H dispatches purchase orders via our vendor portal, , fax, or EDI transmission. C&H has established a dynamic vendor portal; the optimum way for vendors to receive PO s and send us POA s electronically. We require all vendors to participate in this program but you will need to obtain an invitation to access the portal website. (See Form N for further instructions.) The Vendor Portal Contacts you designate on Form A will receive all communications from our portal and will be our main expediting contacts. Once we receive this contact information, our Expediting Department will send them an invitation to the portal. Alternatively, vendors can communicate with C&H using electronic data transmission (EDI). If you are interested in our EDI program please contact our Product Manager or Expediter to get more information: Fax or [email protected]. The vendor is expected to acknowledge our purchase order within one (1) business day via the vendor portal, preferably. Regardless of the transmission type each POA must include the following information: Details per document C&H Purchase Order number Vendor order reference number C&H item number Shipment date per item number Quantity Cost / price POA 1 of 12

2 C&H requires vendors to strictly adhere to the agreed upon maximum lead times per item which are stated on our PO. Any delays must immediately be reported to the C&H Expediting Department. Depending on the reason for the delay, the new proposed lead times may not be accepted. The responsible Product Manager will be informed regularly about lead time and POA accuracy. 2 Advance Ship Notices (ASN) Advance ship notices must be submitted to the C&H Expediting Department on the actual shipment day, preferably via the vendor portal. ASN s must include the minimum information stated in Appendix 2. In general, purchase orders should ship complete as long as the items are within the maximum lead time expectations. 3 Shipping Instructions for Direct/Drop Shipments to U.S. end customers In case of direct shipments to C&H end customers (drop shipments) the vendor has to use the C&H packing list attached to the PO. In no case is the vendor allowed to add its own paperwork or advertising material to the shipment. Unless otherwise noted on the PO under Ship Via, the vendor must ship with the preselected carrier according to the C&H Transportation Routing Guide, which is provided to the vendor separately, and follow the freight terms. Both are also stated on the purchase order: The vendor has to ship Free on Board Origin, Third Party Bill unless otherwise indicated on the PO. For Details see C&H Transportation Routing Guide. The goods must be shipped by the Required Ship Date shown on the PO. If the shipping time cannot be adhered to, the C&H Expediting Department must be notified immediately: Fax or [email protected]. 4 Shipping Instructions to C&H Distribution Centers (Inbound Guidelines) 4.1 Instructions for inbound shipments to the C&H distribution centers The vendor must ship with the pre-selected carrier according to the C&H Transportation Routing Guide, which is provided to the vendor separately, and follow the freight terms. Both are also stated on the C&H Purchase Order: 2 of 12

3 In general, C&H s preferred method for stock shipments is Free on Board Origin, Freight Collect, unless different terms have been established individually with the vendor. The Ship to Arrive by Date provided on the PO is the latest date the goods shall arrive at the place of delivery designated by C&H. The goods must be shipped in the adequate time to be sure the delivery date/time is adhered to. If the delivery time cannot be adhered to, the C&H Expediting department must be notified immediately: Fax or [email protected]. 4.2 Delivery Appointment The vendor should indicate in the Bill of Lading that an appointment is required for delivery to the C&H distribution centers; the phone number of the receiving distribution center should be stated as well see appendix 1. The carrier will immediately be given a delivery time window. Delivery dates and times which are not adhered to (within a 1 hour time frame) shall be considered late and new dates and times must be set up with the receiving warehouse through the carrier. 4.3 Delivery paperwork The vendor shall guarantee to deliver the following paperwork with details on the delivered products: 1. Consolidated Packing Slip for the entire shipment 2. Packing List attached to each pallet which describes the contents of the pallet In order to guarantee efficient warehouse operations, the documents must include the information required in appendix Directives and Safety Standards Products which arrive from foreign markets must be properly inspected at the port or carriers terminal to meet all Federal Safety standards. The transportation equipment must be labeled properly and the declaration of conformity must be provided in the required languages. Product shipping from within the United States must also meet the Federal Safety standards and the proper documentation must be with the carrier at all times through delivery. Items considered hazardous will require complete NMFC description, UN number, and a 24-hour / 7-day emergency contact phone number. A Hazardous Material Data Sheet will also have to be provided as required by OSHA. 3 of 12

4 4.5 Palletizing of Inbound Shipments All shipments need to be palletized. Only top-quality hardwood standard size 48x40 4- way entry reusable pallets shall be used and all products must be loaded on the designated pallet. Product that is larger than the standard size pallet should be placed on a larger pallet that fits the size of the product with no more than 1 inch of space between the edge of the pallet and the product carton. No product or part of a product shall hang over the edge of a pallet for transit. Pallets that are being shipped from overseas must be fumigated and carry the heat treating stamp showing as such. All Federal regulations must be followed. Different SKU s cannot be packed on the same transport unit (pallet) unless it s indicated on the packing list per transport unit: Therefore, a separate packing list must be attached to the pallet stating how many of each item there are if multiple SKU s are placed on such pallet. Failure to abide by this will result in back charges for sorting through product at the warehouse. The vendor has to provide C&H a standard pallet configuration for each stock product. The C&H Quality Assurance department will review these in advance of any shipment to determine if we can utilize the vendor s pallet configuration for storage purposes. The packages shall be palletized in a standard pallet configuration and shall be secured to avoid the product from shifting and resulting in the inability to unload the product safely and without damage. 4.6 Labeling of items Each carton that contains product must be labeled with the C&H and the vendor item numbers. C&H s item numbers are different than the item number that the vendor has designated for his product internally. The C&H item number (!) should be applied in barcode form to each item unit to enable us to scan in every piece of merchandise and to cross reference what has been shipped. This is critical for efficient warehouse operations and the proper picking of product to fill orders. The barcoding and labeling requirements are stated in appendix Exportability Requirements C&H is servicing the following foreign markets: - Canada - Mexico All delivered products must meet the following exportability requirements: 4 of 12

5 - The labeling for hazardous goods regulations for the countries C&H services need to be strictly considered. - Packaging must be compliant to the Guidelines for Regulating Wood Packaging Material in International Trade ISPM No. 15. More information can be found on the U.S. Department of Agriculture website: plant_exports/wpm/. Products cannot be crated with soft wood packaging. - If applicable, operational and/or assembly instructions have to be enclosed with the product. Instructions should include pictograms. Due to product liability, text instructions need to be available for all languages of the countries C&H exports into: English, French and Spanish. - If applicable, international handling labels (see appendix 5) must be applied. Due to product liability, all labels on the product itself must be in English, French and Spanish. 5 Packaging requirements for all C&H products In order to prevent damage and guarantee the safety of the goods during transportation by the vendor to the warehouse or to C&H s end customers, it is necessary to secure the goods. The vendor shall meet the following packaging requirements for its products. It must be guaranteed that goods are delivered to the warehouses in a transportable condition. Packaging must be designed to be suitable for damage-free transportation by means of parcel services or common carrier and look appealing from the outside. Product must always be secured by stretch wrap or poly or nylon banding in a manner that will secure the product through the entire transportation cycle, including unloading on the warehouse floor. Products need to be individually boxed and stacked before they are stretch wrapped to a pallet since many of our shipments to C&H end customers are only one piece. Environmentally sound and recyclable packaging shall be used which will provide adequate protection against breakage from impact, protects the products from being soiled by water, grease and oil, provides resistance to light and UV rays for affected products and prevents the discharge of dangerous substances. Composites, PVC packaging and components containing CFCs are strictly prohibited. Cartons must be designed with the strength and stability to stack eight (8) feet high on a pallet. Each carton will not break down in any way, crush or loose its integrity, cause damage or cause product to be rejected by the final customer. The corrugated carton must be of the proper strength to protect the product through the entire shipping cycle from warehouse to final customer. A minimum double-walled corrugated carton is strongly recommended. As a matter of principle, packages are to be marked with handling symbols in accordance with the ISO R/780 standard (appendix 5). They always have to show: - if contents are sensitive to heat and water - if contents are fragile 5 of 12

6 - the top and the bottom of the package and where the center of gravity is Do not add any advertising material to the shipment. Exceptions need written approval by the C&H Merchandising department. 6 Subsequent work In the event of non-compliance with these Guidelines named above, C&H shall be entitled to invoice the vendor the time taken for subsequent work plus material cost. The hourly rate is at $50.00 per man hour. 7 Invoicing C&H should always be invoiced within one (1) business day after shipping. The invoice has to be mailed to:. Accounts Payable Department P.O. Box Milwaukee, WI , U.S.A. 8 Management of Returns 8.1 Handling of C&H customer returns Product quality complaints due to material or functional defects Product quality complaints due to material or functional defects from the vendor will only be filed within the legal warranty or within the vendor agreed guarantee time. A minimum vendor warranty time of three (3) years is preferred where appropriate. In order to make the vendor able to inspect defective products, C&H will immediately return all products with warranty concerns shipped to its U.S. customers to the vendor s shipping location at vendor cost. Due to high transportation costs to our Canadian and Latin American customers, C&H will contact the vendor in advance to see if the vendor would like the defective merchandise returned at the vendor s cost. In all cases, the merchandise value, any occurring freight to/from our customers and a $50.00 complaint processing fee will be debited to the vendor. C&H s main intent is raising the vendor s awareness of any quality concerns related to the vendor s product and work with him constructively on solving product quality concerns Other vendor caused returns In case of other vendor-related returns (missing parts, wrong shipments, etc.), C&H will immediately return all products shipped to its U.S. customers to the vendor s shipping location at vendor cost. Due to high transportation costs to our Canadian and Latin 6 of 12

7 American customers, C&H will contact the vendor in advance to see if the vendor would like the defective merchandise returned at the vendor s cost In all cases, the merchandise value and any occurring freight to/from our customers will be debited to the vendor. No complaint processing fee will be charged Non vendor caused returns C&H expects the vendor to agree on a return right for all products that will be returned to the vendor and can be resold by the vendor. For non-vendor related returns, the merchandise value will be debited to the vendor only. Repair and restocking fees may be invoiced to C&H by the vendor. 8.2 Inventory Return Policy Poor performing products All C&H products are assessed for their profitability. For new products, we allow approximately 12 to 18 months for sales achievement. Established products are monitored per catalog cycle to ensure their contribution. If an item has not achieved satisfactory sales and the item has been inventoried, we will request a return authorization for the unsold portion. The merchandise will be returned in sellable condition in original cartons, for a cash refund or credit, with no restocking charges. Items with expiration dates cannot be excluded from this policy. C&H will absorb all return freight charges Vendor discontinued and recalled products If a vendor discontinues merchandise, the vendor is responsible for any unsold merchandise. We require six months advance notice on any discontinued item. At that time, we will keep our inventories to a minimum and attempt to deplete the remaining inventories. C&H has the right to return its remaining inventories to the vendor. C&H will debit the vendor the merchandise value and any occurring freight to/from C&H. The same return policy applies to style changes and vendor recalls Overstock inventories We have an inventory management system which predicts item demand and places orders accordingly. At times we may find we have overstock due to unpredictable sales. In this situation, we may request a return for some of the inventory. C&H will request a return authorization. The merchandise will be returned in sellable condition in original cartons, for a cash refund or credit, with no restocking charges. Items with expiration dates cannot be excluded from this policy. C&H will absorb all return freight charges. 7 of 12

8 Appendix 1: C&H Distribution Centers Wisconsin (National) Distribution Center Address: Wisconsin Distribution Center th Street Pleasant Prairie, WI Phone: Fax: Receiving times: Mon-Fri, 07:00am to 12:00pm CST Nevada Distribution Center Address: Nevada Distribution Center 900 North Hills Boulevard, Suite 300 Reno, NV Phone: Fax: Receiving times: Mon-Fri, 08:00am to 12:00pm PST Ontario Distribution Center Address: Avenue Industrial Supply Co. Ltd. Toronto Distribution Center 35 Staples Avenue, Unit 1 Richmond Hill, ON, L4B 4W6 Phone: Receiving times: Mon-Fri, 08:00am to 12:00pm EST 8 of 12

9 Appendix 2: Mandatory information when sending in an advance ship notice The vendor is obliged to include the following information in his notification to the distribution center to be delivered to: Details per document ASN Vendor name Consignee distribution center C&H Purchase order number(s), items, quantities Ship date Carrier name Pro / tracking number 9 of 12

10 Appendix 3: Mandatory information to be included in delivery paperwork The delivery paperwork must include the following information: Details per document Consolidated Packing slip per shipment Packing list per transport unit (pallet) C&H Purchase order number(s) Full address of shipping location Full address of vendor Vendor item number(s) C&H item number(s) Ordered quantity per item Delivered quantity per item Phone number of the vendor Details if complete or partial delivery Number of total cartons Freight terms Ship date Number of pallets 10 of 12

11 vendor item number C&H UOM Appendix 4: Information to be provided on marking delivered items with item numbers When labeling the item, the item numbers provided by C&H digit must be used. The label must contain at least the following information: - C&H item number (typed and barcoded) - Vendor item number - Unit of Measurement UOM must match the purchase order UOM - C&H item description C&H item number barcode contains C&H item number in code 39 without test The C&H item number information must be typed and barcoded in accordance with the example below: The following specifications apply for the barcode: - code 39 without check digit - minimum size: 1 inch x 2 inches The label should be positioned in the upper right corner of a package. 11 of 12

12 Appendix 5: Handling labels according to ISO Standard Fragile Use no hand hooks This way up Keep away from sunlight/heat Keep away from rain/water Centre of gravity Do not roll Do not use hand truck here Use no forks Clamp as indicated Do not clamp as indicated Stacking limit by weight Stacking limit by number (n) of identical packages Do not stack Source: ISO 780:1997(E). 12 of 12