Standard Supply Chain Services Customer Handbook Lubrizol Additives North America
Standard Supply Chain Services Customer Handbook Table of Contents Introduction...................... 3 Order Management & Processing Services..... 4 Customer Service Center & Hours of Operation.. 4 Order Acknowledgement.............. 4 Electronic Commerce................ 4 Documentation................... 5 Ordering Lead Times................ 5 Rush Lead Times.................. 6 Changing Orders.................. 6 Minimum Order Quantities............. 6 Split Loads Bulk Products............. 8 Standard Drum Differentials............. 8 Payment & Pricing Terms.............. 8 Transportation and Shipping Services....... 9 Shipping Hours of Operation........... 9 Detention Policy.................. 9 Rail Asset Fee...................10 Shipping Terms...................10 Tanker Cleanliness & Unloading...........11 Carrier No Show & Late Charge..........11 Pick-up Procedure.................12 Packaging Services..................13 Drums.......................13 Labeling......................13 Pallets, Shrink Wrap & Banded Drums.......15 Service After Shipment................16 Return Materials..................16 Responsible Care Management System (RCMS).........................18 Application......................18 2
Introduction At Lubrizol, the team of professionals responsible for managing your account is dedicated to making it easy for you to do business with us. This handbook, which details our standard offerings, was developed to ensure an effi cient and effective supply chain for our customers. Supply chain offerings beyond the standard are available, and we welcome the opportunity to review your requests and provide you with service options. There are typically nominal fees associated with non-standard requests, which may require additional supply chain resources. Lubrizol Additives is an innovative specialty chemical company that produces and supplies technologies that improve the quality and performance of our customers products. We succeed by creating competitive advantages that help our customers be more successful. We look forward to working with you to meet the specifi c needs of your business. This information is available on www.lubrizol.com. 3
Order Management & Processing Services Customer Service Center & Hours of Operation Lubrizol Additives North American Customer Service Center is located in Deer Park, Texas. 4 Location Phone, Fax, Email Office Hours Deer Park Plant #41 Tidal Road Deer Park, TX 77536-0158 Phone: (877) 646-8311 Domestic (US and Canada) Fax: (832) 260-7338 Export (Mexico) Fax: (832) 260-7334 Email: Customer Service Representative Specifi c 7:00 AM 4:30 PM Central Standard Time Order Acknowledgement Sales orders can be placed by phone, fax, email, or online through www.lubrizol.com/mylubrizol. An Order Acknowledgement and/or Order Receipt along with the Terms and Conditions are provided within 2 business days of receipt of order. Electronic Commerce Lubrizol supports our customers with ebusiness solutions that complement your traditional contact with customer service. Our ebusiness solutions are designed to enhance your business relationship with Lubrizol. Using technology to streamline business processes and enrich customer interactions, Lubrizol is able to create faster, more effi cient means to conduct business. Lubrizol uses SAP R3 as our enterprise resource planning system and advanced internet technology. For additional information on electronic commerce options, please contact your Customer Service Representative or Sales Account Manager. Your electronic experience can begin by accessing www.lubrizol.com/mylubrizol. Here you can enter sales orders, obtain sales order documentation, and product information online 24 hours a day, seven days a week. This is a secure site that requires user set up and password access. On line access can be requested directly through www.lubrizol.com or contact your Customer Service Representative or Account Manager.
Documentation The following documents are standard documents provided by Lubrizol and are also available through www.lubrizol.com/mylubrizol: Order Acknowledgment Commercial Invoice Terms and Conditions Shipping Documents: Bill of Lading, Packing List Additional documents are available upon request: Certifi cate of Analysis (C of A) Product Data Sheet Handling Instructions (PDS) Material Safety Data Sheet (MSDS) For export documents, contact your Customer Service Representative Ordering Lead Times Lubrizol recommends using the following lead times for your planning purposes. The following lead-times refl ect the average time necessary to manufacture and prepare customer orders for shipment. Lead times do not include transit time. Please allow additional lead time for new customers and/or new products. Material Package Bulk Inventory Type Blend to Order Stock Blend to Order Stock Minimum Lead Time 10 business days 3 business days 10 business days 5 business days Different companies observe different holidays; contact your Customer Service Representative for a list of Lubrizol holidays that may affect lead times. Order lead time is defi ned from the date the order has been placed to the requested shipping date by the customer. Orders placed after 10 AM CST (11 AM EST) will be considered next business day. Lead times are subject to carrier, railcar and tank truck availability. Some products may require additional lead time based on material availability or blending equipment. 5
Rush Lead Times Since business requirements can be unpredictable, Lubrizol offers Rush Lead Times. The following charges apply to orders received with less than standard lead time requested. Shipment Type Package Bulk Cost $500 per order $1000 per order Changing Orders Changes made to orders within 3 business days before shipment can create operational issues and should be avoided. Order changes could result in a need to reschedule and may cause delays or may incur additional fees. Minimum Order Quantities Certain limitations exist in manufacturing, blending, transportation, and handling require minimum quantities to be set per order item. Order items requested for less than the quantities specifi ed below will be subject to minimum order quantity fees. 6
Minimum Order Quantities (continued) Material Inventory Type Shipping Locations Package Bulk Deer Park, Texas (includes Delta warehouse) Painesville, Ohio Blend to Order 20 drums* 20 drums* Stock 1 drum 1 drum Blend to Order 5000 gallons 5000 gallons Stock 2500 gallons** 2500 gallons** * Production batches vary by product based on materials and equipment. Consult your Customer Service Representative. ** Based on availability and configuration of the transportation equipment provided for shipment. Note: Due to maximum over-the-road weight limitations, some products in bulk will ship less than 5,000 gallons without the service fee. Minimum Quantity Order Fee Below minimum order quantity for bulk and totes Below minimum order quantity for drums $1500 per order $500 per order 7
Split Load Bulk Products Split loads are available only for bulk products maintained in inventory. Please check with your Customer Service Representative if products are available for split loads. Split Load Bulk Products Split load orders $600 per order for tank trucks $1000 per order for tank cars Payment and Pricing Terms Standard terms of sale are net thirty (30) days from date of invoice. Pricing is based on the price effective on date of shipment. Drum Shipments must be single ship point and destination to receive price break(s). Standard Drum Differentials Customers are encouraged to combine products on one order to take advantage of lower drum differentials for products shipping from one origin point to a single destination. Increasing the order quantity will also result in reduced per unit freight costs. Standard drum increments are 1-9 drums, 10-19 drums, 20-59 drums and 60 and above. Drum differential rates are refl ected in the material price list. 8
Transportation & Shipping Services Shipping Hours of Operation Bulk Shipments Packaged Shipments 7 days a week; 24 hour operations Monday through Friday 8:00 AM to 4:30 PM (local time) Detention Policy Lubrizol has selected a limited number of reliable and quality-driven logistics partners to ensure that product is delivered according to customers requirements. The area of expertise of these logistics partners spans the whole range of delivery modes, from package trucks to marine bulk shipments. On bulk shipments the following time is allowed for loading or unloading: Common Carrier Typical Free Time Free Hours for Bulk Truck Discharge at the Customer Truck detention incurred at unloading location will be billed to the customer by the carriers. Customer Pick-up & Customer Arranged Carriers Typical time required for Bulk Truck Loading within Lubrizol Facilities Applies to single compartment trucks only. Customers are responsible for ensuring that the carrier that they have arranged arrives at Lubrizol facilities on time with appropriate pick-up number(s). Time 2 hours Time (4 hours total) 2 hours loading 2 hours lab 9
Tank Car Demurrage Free Days for Lubrizol Supplied Railcar Discharge at the Customer Lubrizol supplied railcar detention will be billed at $50/day after 10 free days Time 10 days free time Rail Asset Fee Lubrizol maintains a leased fl eet of tank cars as a service to our customers. Lubrizol charges a rail asset fee to recoup the cost of the service. Rail asset fee per shipment $900 Signed trip lease agreement is required for use of Lubrizol tank cars. Rail car outage tables can be found online at UTLX.com. The times above are industry standards for unloading material. Excess unloading time above free time is customer s responsibility. Shipping Terms Domestic Freight Term Lubrizol Invoice Carrier Selection Carrier Payment FCA (Free Carrier At) Freight Collect No freight Customer Customer pays carrier CPT (Carriage Paid To) Freight Prepaid Freight billed to customer Lubrizol Lubrizol pays carrier Note: Alternate freight billing locations can be identified on the shipping document. This is limited to one alternate billing address per mode of shipment. 10
Tanker Cleanliness and Unloading To ensure tanker cleanliness, Lubrizol requires all carriers to present a clean, dry, odor free tank to the shipping location. Trailers not conforming to the cleanliness requirement will be required to be cleaned and subject to standard late charges as shown below. Our plant tank truck loading requirements are as follows: Driver must have all applicable pick-up numbers to enter our facility Driver must have a calibration chart for loading purposes Trailer must be clean, dry and odor free. We do thoroughly inspect all trailers, including valves Trailer must be in regulation with all DOT and EPA safety requirements Trailer must be an insulated stainless steel trailer Driver must have hard hat, safety glasses, fi re retardant clothing and hearing protection There is absolutely no smoking and no fi rearms permitted on the premises It is the responsibility of the customer to completely unload contents of the bulk container upon delivery. Carrier No Show and Late Charge Customers collecting at our facilities will be advised of a specifi c pick-up time by your Customer Service Representative or Shipping Group. Customers are responsible for ensuring that the carrier that they have arranged arrives at Lubrizol facilities on time with appropriate pick-up number(s). If customer s carrier fails to arrive during scheduled pick-up window, the following fees will be applied as shown below: Bulk Arrival prior to scheduled pick-up Carrier will be required to wait and no detention period will be recognized until original pick-up time Bulk Arrival greater than 1 hour past scheduled $500 per shipment* pick-up time Package Arrival not on scheduled pick-up date $200 per shipment *Late is defined as more than one hour past scheduled load/pick-up time. 11
Pick-up Procedure A pick-up number will be issued. Your pick-up number will be advised by your Customer Service Representative or Shipping Group, and will be required for admittance into the Lubrizol facility. Customer carrier s must present ALL pick-up numbers at time of pick-up or risk incomplete order and missed pick-up fees. All drivers must have identifi cation and may require verifi cation before being admitted. Under Lubrizol s Safety and Security policies we reserve the right to refuse entry into a Lubrizol facility. Any and all costs associated with non-admittance will not be Lubrizol s responsibility. We recognize customers preference to use their carrier choice, however, if service performance causes disruptions to Lubrizol operations, we reserve the right to address the situation by proposing a switch to a Lubrizol-preferred carrier. Lubrizol s Deer Park and Painesville facilities are equipped with both rail and truck scales. Other facilities will have truck scales available. Scales are frequently tested and certifi ed. Scale ticket weights are the preferred weight for determining shipping quantities. When scale weighing is not available, each trailer or rail car is equipped with a calibration chart so the quantity can be calculated. 12
Packaging Services Lubrizol uses only new and Lubrizol-procured packaging materials. Drums Drums are fi lled on a standard net weight based upon 54 gallons at standard gravity. Exceptions are those products that are loaded below 54 gallons based on the characteristics of the product. Other types of drums may be used based on the materials characteristics for example, open top drums, lined, etc. Labeling Lubrizol s standard label will be applied to the side of the drum. Lubrizol s standard label can include the customer s product name; please request this from your Customer Service Representative. Label Label Drum Labels Includes: From address, To Address, Net weight, Batch number, Product name, Shipping marks, Emergency contact number Customer s product name can be shown on label Transport regulations labels (diamonds) and proper shipping name applied for regulated materials 13
Label Examples: Standard Shipping Label Workplace Label 14
Palletized, Shrink-Wrapped and Banded Drums Palletized and shrink-wrapping or banding of drums can be supplied if required. The fee schedule for this additional service is outlined as follows: Service Cost Comments Pallets with stretch wrap $20.00 per pallet Standard wooden pallets 48 x 48 with plastic stretch wrapping Pallets with banding $24.00 per pallet Standard wooden pallets 48 x 48 with nylon banding 15
Service After Shipment With each shipment, Lubrizol strives for complete customer satisfaction. Lubrizol values input from our customers to help drive continuous improvement. Lubrizol s Customer Assistance group is dedicated and focused to help in this effort. Should you have a concern with an order after it has shipped, our Customer Assistance group will work directly with you to resolve any issues. Customers are requested to communicate directly with our Customer Assistance group via email at the following address: AmerLZACustomerAssistance@lubrizol.com. Return Materials Lubrizol s customers may request the return of Lubrizol products to a Lubrizol facility. All product returns must be authorized by Lubrizol prior to returning any material to our facilities. Lubrizol s standard policy is to accept product returns under the following conditions: Original drums with seals intact. Partial drums will not be accepted Within three years of original purchase. Within one year for metalworking products Product must be able to be used or resold (material cannot be brought back to a Lubrizol facility if it is determined that the only outlet is disposal) Original Lubrizol production batch number(s) must be provided No bulk returns are permitted Return of exclusive products will be evaluated on a case-by-case basis 16
Return Materials (continued) A credit will be issued to the customer upon receipt of the drums less a restocking charge as noted below: Material Less than one year from date of purchase One year to three years from date of purchase Restocking Fee & Terms of Return Invoice price less 20% handling; customer pays return freight and any customs fees Invoice price less 30% handling; customer pays return freight and any customs fees Customers should direct all requests for the return of material to our Customer Assistance group: AmerLZACustomerAssistance@lubrizol.com. Lubrizol s Customer Assistance group will follow-up with the customer and manage the product return process. 17
Responsible Care Management System (RCMS) The Lubrizol Corporation subscribes to the guiding principles of Responsible Care. Our membership in the American Chemistry Council (ACC) obliges us to achieve and maintain Responsible Care Management System (RCMS) certifi cation through third party audits at all Lubrizol U.S. facilities. We emphasize the involvement of Lubrizol s commercial teams and related support groups in the Responsible Care Management System. At Lubrizol this is our one-company approach and we all have a role in the RCMS process. Application The services in this document are subject to the Terms and Conditions of any written supply agreement or Lubrizol s standard Terms and Conditions of sale; collectively called Standard Terms. In the event of a confl ict between the Standard Terms and this document, the Standard Terms will prevail. Lubrizol will not be responsible if events beyond the control of Lubrizol prevent or impair Lubrizol s ability to provide the services indicated. Lubrizol s RCMS builds on our already strong Health, Safety, Environmental, and Security (HSES) processes and is designed to achieve continual improvement in HSES performance. Our Corporate HSES Policy is the basis of the RCMS. The Corporate HSES Policy is published in the Lubrizol Corporate Citizenship Report found at www.lubrizol.com. 18
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Success Together When your company and ours combine energies, great things can happen. You bring ideas, challenges and opportunities. We ll bring powerful additive and market expertise, unmatched testing capabilities, integrated global supply and an independent approach to help you differentiate and succeed. Visit www.lubrizol.com/successtogether to experience Success Together. The Lubrizol Corporation www.lubrizol.com 2013 The Lubrizol Corporation. All rights reserved. 130745