Orchard Supplier Operation Guidelines Domestic Shipping & Transportation Requirements Overview Routing Options Collect Routing Process The shipping and transportation routing instructions and requirements specific to warehouse, direct, crossdock or direct to Orchard stores are included in this section. Supplier requirements for shipping and transportation routing are designed to allow merchandise to be moved quickly and efficiently through Orchard s distribution facilities to our stores and customers. Delays caused by late or improper carrier scheduling, not having freight ready to load on the scheduled pick up date, missing and/or inaccurate shipping documents, ASN s etc., can result in additional expense incurred, as well as store out of stocks, lost sales and customers. For Small Packages: If the supplier ships items on a pallet when using the small package criteria, they may be charged the difference on any added freight costs. This is not a compliance fine; it is the difference in freight charges. There are two inbound to Orchard all locations transportation routing options: Prepaid - Supplier selects and pays the carrier for shipments Collect - New Collect vendors must contact tms.traffic@osh.com requesting a TMS Profile set up in order for us to route Collect POs. The set up can take up to 48 hours to complete. Orchard selects and pays the carrier for shipments and handles transportation to our distribution centers (DCs) and stores via Orchard Transportation Management System (TMS). The Orchard Transportation Management System (TMS) handles collect shipments to optimize routing of freight from suppliers to our DCs. The supplier will submit a request to Orchard TMS via https://osh.mercurygate.net/mercurygate no later than 48 hours prior to their requested pick up date. Note: Routings are processed daily at 6 a.m. Collect Routing Options The routing method and carrier mode for collect shipments can vary by shipment, destination, total cubic feet, and weight available to ship. Orchard may route freight as follows: 1. To our DCs for consolidation 2. Direct to our stores 3. To both our DCs and stores 4. Part of a multiple truckload (TL) stop to our DC or direct to our stores. (Refer to the Collect Truckload Request information in this document.) 5. Via Small Package Ground Once Orchard has routed the supplier s freight and scheduled their loads with the carrier, routing instructions will be e-mailed to them via Orchard s TMS system where the transportation request was entered. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 1 of 13 Issued: 4/2/15
Collect Truckload Requests There are two possible collect transportation arrangements as described below. Live Pick Up Drop Trailer Driver waits while supplier loads the trailer. Driver delivers the trailer to supplier for loading All shipments will be a live pick up unless the supplier contacts the and returns to pick up the trailer when notified the trailer is ready for pick up. osh.traffic@osh.com to make other arrangements. Freight must be ready to load on the scheduled pick up day. For collect live pickups, the shipper must load the trailer within the first one (1) hour based on an appointment time. It is the supplier s responsibility to secure the load on all TL shipments to prevent damage and/or crushing cartons. Detention will be assessed after the first hour and may be charged back to the supplier. Shipper Load and Counts (SLC) Shipper Load and Counts (SLC) Note: Refer to page 4 for the Shipper Load and Count detail. Supplier Closure Dates Supplier must provide all facility closure dates to Orchard Traffic via the TMS Routing Request. Doing so will avoid being recorded as non-compliant to purchase order fulfillment requirements. Ship Point Changes The supplier must notify edihelp@osh.comm and tms.traffic@osh.com whenever there is any change in: Supplier ship point address, Addition of a new ship point, OR A change of ship point contact person, phone, fax or email address. Truckload (TL) Shipments A shipment for a single shipment and/or Orchard store facility that is equal to or greater than 3600 effective cube is considered a Truckload (TL) shipment and may ship on any day with 48 hours notice. In the event that a purchase order must ship sooner than 48 hours, the supplier must email osh.traffic@osh.com for approval. Refer to the instructions below to calculate effective cube. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 2 of 13 Issued: 4/2/15
How to Calculate Effective Cube Due to the difference in size and space the merchandise will utilize in a trailer, use the effective cube measurement listed below as a guideline for determining if the shipment is Less-Than-Truckload (LTL) or Truckload (TL). Step Action 1 Estimate the load configuration as it would be built in a 53 trailer stacked as high as is safe to prevent in-transit damage. Note: The supplier may need to bulkhead their load to prevent load shift. It is the supplier s responsibility to secure the load on TL shipments. 2 Determine the total linear feet of the 53 trailer required for the load. 3 Divide the total linear feet by 53 and multiply by 4,000. 4 Round up the total. For example: 24 53 X 4,000 = 1812 effective cube (rounded up). Additional Examples: A full trailer would be 4,000 effective cubic feet. 75% of a trailer would be 3,000 effective cubic feet. 50% of a trailer would be 2,000 effective cubic feet. 25% of a trailer would be 1,000 effective cubic feet. 48 feet of a trailer would be 3,623 effective cubic feet. Note: Rule of thumb is that a non-stackable standard pallet = 150 effective cube and a stackable standard pallet = 75 effective cube. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 3 of 13 Issued: 4/2/15
Shipper Load & Count For all collect purchase orders only assigned as a truckload by Orchard, the supplier will be responsible for Shipper Load and Count (SLC) and is responsible for the contents of the trailer until it reaches the Orchard location. The driver will only sign the Bill of Lading to acknowledge pickup of the shipment. The driver s signature does not designate carrier responsibility for the contents of the trailer. Suppliers delivering full truckloads are required to seal the trailer with a supplier provided seal, and document the seal number on all copies of the associated Bill of Lading. All such shipments will be considered Shipper Load and Count (SLC), whether or not so notated. Refer to the conditions stated below for further truckload seal direction. If A supplier fails to seal the trailer or fails to reference the seal number on all copies of the Bill of Lading and shortages occur A supplier receives a sealed trailer as part of a truckload multi-stop prior to breaking the seal The seal numbers agree A seal number does not match the paperwork or the driver refuses to show the supplier the Bill of Lading from his last pick up Then The supplier shall be liable for such shortages. Supplier expressly agrees that the provision herein shall supersede any contrary Bill of Lading term, clause, notation, or other provision. The supplier is to compare the seal number on the trailer to the seal number listed on the Bill of Lading from the carrier s last pick up. The supplier will: Break the seal and load their product on the trailer. Apply supplier seal to the trailer and notate on Bill of Lading. The supplier is to immediately email osh.traffic@osh.com LTL Trans. Requests For merchandise moved on collect Less-Than-Truckload (LTL), the driver is responsible for only counting total shipping units - pallets or loose cartons. The driver will not be responsible for counting cartons on pallets or loading truck. NMFC & LTL Freight Per National Motor Freight Classification, Rule 360, 2(c), the shipper must provide the correct NMFC number and LTL freight class on all Bills of Lading and requests for transportation. The supplier will submit their request to OSH TMS via https://osh.mercurygate.net/mercurygate no later than 48 hours prior to their requested pick up date. Pick up appointments at the supplier s ship point are not accepted for collect LTL shipments. Shipper must load truck within thirty (30) minutes based on an appointment time. Detention will be assessed after the thirty (30) minutes and may be charged back to the supplier. Freight must be ready to load on the scheduled pick up day. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 4 of 13 Issued: 4/2/15
MLB & Routing Request (RR) The Orchard assigned MBL and Routing Request (RR) will be displayed along with the carrier information. All shipments are assigned a unique MBL and Routing Request (RR) which are used by Orchard scheduling and the carriers to track shipments through the life of the move, freight bill payment and file retention. The supplier will include the MBL/Load ID, Routing Request (RR) and all PO numbers on their Bill of Lading. Hazardous Materials (Prepaid & Collect) A shipper of Hazardous Materials, your 3rd party HazMat 24-Hr. Emergency Response phone number must be printed on the Bill of Lading. Important: If shipping Hazardous Materials via UPS; do not use the Orchard UPS account numbers. Suppliers must have a Hazardous Materials Account with UPS to which all UPS charges for shipments of Hazardous Materials are billed. Refer to the information below regarding lithium batteries. Lithium Batteries Shipments The United States of Transportation, in coordination with the Pipeline and Hazardous Material Safety Administration (PHMSA), recently revised guidelines for transportation of lithium batteries. The final rule became effective January 1, 2009, and can be reviewed at 49 CFR Parts 171, 172, 173 and 175 Transportation of Lithium Batteries. The rule implements several changes including: Packaging of all sizes of lithium batteries. Increase of Equivalent Lithium Content for batteries. Revision of shipping, marking and label requirements for intermodal transportation. Special documentation requirements whenever shipping lithium batteries. Provision for allowance of lithium batteries packaged with equipment. Orchard expects all suppliers conducting business with us to be in compliance with all applicable laws and regulations, including the applicable regulations when transporting lithium batteries to Orchard. The final rule can be found at http://www.phmsa.dot.gov/hazmat/regs, and it is expected that suppliers will implement any necessary changes to comply with this rule. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 5 of 13 Issued: 4/2/15
UPS Small Package Criteria UPS is the designated small package carrier used by Orchard for all collect small package shipments. Note: Do not confuse UPS Parcel for UPS LTL Freight. Orchard does not use UPS LTL Freight. Small Package Shipment Criteria UPS shipments must meet the Small Package shipment criteria for the applicable Ship To facility or store and the UPS Package Size & Weight Limits as indicated below. Maximum weight per package or master carton not to exceed 150 lbs. Packages weighing over 70 lbs, will need to be labeled as an overweight shipment. Maximum weight of combined shipping containers (packages or master cartons) in a single shipment to a single destination is 749 lbs. Maximum package length and girth combined cannot exceed 165 inches for shipments to Distribution Center (DC) and stores, and 130 inches for shipments direct to store. Packages exceeding 108 inches in length are considered oversized make note on the Routing Request in Orchard TMS under Special Instructions. The supplier is responsible for contacting UPS at 1-800-PICK-UPS (1-800-742-5877) to schedule a pick up. The supplier will identify their company as an Orchard supplier. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 6 of 13 Issued: 4/2/15
UPS Ground Billing UPS collect shipments will be billed to Orchard at the following address: 2650 N. Mac Arthur Drive Tracy, CA 95376 Screen 1 To access the additional Package Reference Fields on Screen 2, click Reference as indicated above. Prepaid Shipments Prepaid suppliers are responsible for the transportation of their shipments to each Orchard destination (DC or store) and carrier payment with the carrier of their choice. Prepaid supplier s Bill of Lading must be marked as Prepaid. Prepaid suppliers are responsible for their carrier s performance in delivering each shipment to the Orchard destination on the scheduled date and time. Prepaid suppliers are responsible for any damage or shortage claims incurred by their carrier. In the event that Proof of Delivery (POD) is required for a shipment, prepaid suppliers are responsible for providing the information. Prepaid suppliers are responsible for the accuracy of the piece count for each trailer as reported on the associated Bill of Lading and transmitted in the ASN Ship Notice. Unless a pre-arranged delivery schedule exists, prepaid suppliers or their carrier must call (209) 833-3131 to schedule a delivery appointment no later than 48 hours prior to delivery. All supplier prepaid carriers showing up on a non-scheduled delivery day, outside the agreed upon carrier arrival window, or without a delivery appointment, may be turned away. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 7 of 13 Issued: 4/2/15
Shipping Documents Orchard requires shipping documents for warehouse and direct-to-store shipments, including the EDI 856 Ship Notice (ASN). The shipping documents required for each shipment are based on the shipment routing as listed below. Master Bill of Lading consigned to for each trailer. Master Manifest for each trailer. EDI 856 Ship Notice (ASN) for each crossdock and store destination unit number loaded on the trailer. Packing list for each store. The supplier must include complete and accurate information in all shipping documents. Include only the required shipping documents. Do not include any invoice copies, picking tickets or other internal use documents. Shipment Manifest Create one shipment manifest for each warehouse facility and trailer. A shipment manifest is required for warehouse shipments and the PO numbers must be included in the Bill of Lading. Place the manifest with the shipper order copy of the Bill of Lading (BOL) in the bright colored envelope for each warehouse facility. Refer to additional information under the (BOL) section. EDI 856 Ship Notice (ASN) P.O. Discrepancies Transmit an EDI 856 Ship Notice for each PO and destination facility immediately after trailer loading is completed. A valid Ship Notice must be received and processed for each destination facility a minimum of (24) hours prior to trailer arrival at the facility. The supplier must call at least 24 hours in advance for a delivery appointment. Use the serial container codes from the SSCC-18 (UCC/EAN-128) shipping labels in the associated Ship Notice. EDI Ship Notice References: o Ship Notice Timing: Send at time of shipment. o Ship Notice Structure: Refer to the EDI 856 Guidelines. o Ship Notice Monitoring: Orchard contacts suppliers daily regarding ASN rejections. o Rejection Notification: Orchard will send a 997A for accepted or 997R for rejected. P.O. discrepancies, such as damaged and mis-shipped materials, will be communicated by Orchard s DC to the vendor via email or fax. A maximum of 30 days will be allowed for vendor responses to PO discrepancies, including substitutions, damages or quantity issues. Failure to respond with instructions for disposition of P.O. discrepancies will result in destruction of the mis-shipped or damaged product and a claim.. An updated vendor contact form should be provided, as changes occur, to edi.help@osh.com to ensure our system is up to date with contact information. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 8 of 13 Issued: 4/2/15
Shipping Label Creation Shipping labels provide Orchard with ship from, ship to and PO information for each shipping container. Orchard s guidelines are based on the general label specifications for use with UCC/EAN identification codes contained in the Application Standard for Shipping Container Codes (ANSI/UCC6-1996). SSCC-18 (UCC/EAN-128) Shipping Labels should be used following the guidelines below. Use the standard 4 x 6 high label on packages that are eight or more inches high. When the package is less than eight inches high, use the 3 x 8 format. The supplier will need to reference the serial container codes from the label in their EDI 856 Ship Notice. Shipping Label Example Shipping Label Content 1. Human readable Ship From name and address. 1 2. Human readable Ship To name, unit number and address. Note: If the supplier is shipping directly to a store, this information was sent with their 850 mapping that included the store number/ship to 2 address. 3. Carrier Routing Bar Code (Ship To Postal Bar Code) for the Ship To name and address 3 4. Human readable Department Number Use a minimum 24-point type size (0.33 inch high). 4 Precede department number with the text Dept. 5 List only one department on a single shipping label. 5. Human readable PO# Use a minimum 24-point type size (0.33 inch high). Precede PO# with the text PO. 6 List no more than five POs for the same department on a single shipping label. PO# content includes: o First four#: Ship To location o Next Two#: Dept. Number o Next Four#: PO# o Final Two#: Check Digits for internal use Barcode Details 6. SSCC-18 Barcode (UCC/EAN-128 Serial Shipping Container Code) The barcode height must be 1.25 inches. Print human readable number above the barcode. o The barcode must meet the quality standards specified in ANSI X3.182-Bar Code Print Quality Guideline. o To insure 100% first time rate on all barcodes, test the symbols periodically as print quality can change over time. Precede SSCC-18 code with the application identifier 00. Enclose the Application Identifier (AI) in parentheses. 7. Mark for Barcode (Final Destination Code) The barcode height should be 1.25 7 Barcode Symbol Identifiers There are 24 characters in total encoded in the SSCC-18 Serial Shipping Container Code. Included are both symbol (machine readable) and data (human readable) characters. There are four symbol characters present in the SSCC-18 symbol, which include the combination START character and the FNCI character, the MOD 103 check character and the STOP character. The remaining 20 data characters are human readable and required for automatic identification of serialized shipping containers. o These 20 characters include the Application Identifier (AI) o followed by the SSCC-18 code. The human readable interpretation of the AI should be separated from the remainder of the symbol data by use of parentheses. o Transmit the 20 data characters in the associated EDI 856- Ship Notice transaction. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 9 of 13 Issued: 4/2/15
Shipping Label Placement Content ID Label Once the SSCC-18 (UCC/EAN-128) shipping label is created for each shipping container, place the label(s) on the container(s) following these specifications. Carton Height Containers Less Than 39 H Containers Greater Than 39 H Pallets Placement Place label on the bottom right quadrant of the long side panel of the carton. The label should be at least 2 from both the right edge and bottom edge of the shipping container to prevent damage of the bar code due to edge crush. Position the label parallel to the adjacent side and bottom edge of the carton. Take care so that the label does not wrinkle during application. Place the bottom of the barcode symbol within a range of 20-30 above the natural bottom of the transport package. Allow a minimum of 2 from the right side of the container. Take care to not wrinkle the label during application. Place the barcode symbol to the right of center of a vertical face, allowing a minimum of 2 from the edge. Place the label in the upper one-half and not more than 60 from the bottom of the pallet. Orchard requires a carton level identification at the point of receipt. A carton is defined as any single SKU, carton, or pallet with an outer wrapping and containing a quantity greater than one. Cartons must have an EAN-14 (interleaved 2 of 5) data structure barcode. Create a content identification label for each carton containing a quantity of one or more of the same item/sku. Refer to the examples (ITF-14 or EAN-128) below. Either format is acceptable. Note: A content identification label is not required for cartons containing different item/skus. Label all cartons; master, inner and individual (if the carton contains a set). Machine print Orchard Supply Hardware department number, item/sku on the label using the following format: o The department number must equal the height of the item number. o The item number must be at least.5 H. o SKU number must be the same height as item number. Note: Indicate quantity on the label if the carton contains a quantity of two or more of the same item/sku. 10 1030386 96 DEPT # ITEM#/SKU QTY Place the label on at least two panels (front and side) on the upper portion of each panel. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 10 of 13 Issued: 4/2/15
Special Handling Packaging Graphics Packing List Packaging graphics are used to provide special handling, storage, and warehousing instruction. Identify shipping containers that require special handling using the appropriate product handling graphics. Place handling instructions and graphic symbols on all sides of the shipping container on the upper portion of each side. o Place symbols indicating the acceptable handling equipment to be used on the appropriate sides of the container. The handling graphics may vary from one side to the next based on product configuration and type of container. o Place stacking height information directly below the handling graphics. o Place the words FRONT, SIDE, or BACK directly below or adjacent to the stacking height information. The supplier may use their own packing list format as long as the following requirements are adhered to. The packing list is a machine printed sheet. There is only one packing list per PO number. o For Warehouse and Crossdock shipments, create one packing list for each shipment/po. o For LTL direct-to-store shipments, create one packing list for each store. The packing list must include Orchard SKU numbers. Enclose the packing list in a bright colored envelope marked Packing List Enclosed. o o Attach the packing slip in the bright colored envelope to the lead pallet. Load this pallet on the trailer so it is the first pallet removed at the destination. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 11 of 13 Issued: 4/2/15
Bill of Lading (BOL) The supplier will provide a single Bill of Lading (BOL) for each destination that includes information for all POs loaded in a single trailer. Bill of Lading Example 5 6 8 3 One trailer to one Orchard destination = one Bill of Lading. Do not include a separate Bill of Lading for each PO. Include all POs numbers on the BOL. If a supplier s internal system is coded to create a separate BOL for each PO, they must be able to consolidate the separate BOL into a single consolidated or master BOL for each DC or store destination and trailer. If a supplier is shipping multiple trailers to the same destination unit number, a separate BOL is required for each trailer. A single BOL must not exceed a single trailer. For all finished product containing composite wood products, the BOL (or EDI 810 Invoice) must include the ATCM statement to affirm compliance. Do not reassign a BOL number within 90 days. 2 19 20 21 13 14 15 Place the manifest with the shipper order copy of the BOL in an envelope for each warehouse facility. For Crossdock: Write Crossdock on each envelope and include the destination facility city name, and unit number (e.g., Tracy #1571). For Warehouse Replenishment Shipments: Write Stock Replenishment and include the destination facility city name and unit number (e.g., Tracy #1571) Enclose the packing list in a bright colored envelope marked Packing List Enclosed. o Attach the packing slip in the bright colored envelope to the lead pallet. o Load this pallet on the trailer so it is the first pallet removed at the destination. 1 4 16 7 9 22 10 11 17 18 12 Bill of Lading Example Legend 1. Bill of Lading must be printed at top of document. 2. Ship From supplier name and address. Use company name as listed on the Orchard Profile name. 3. Ship To destination name, unit number, and address. 4. Bill of Lading Number. 5. Actual date of shipment: Do not predate. 6. MBL and Routing Request (RR) Number. 7. SCAC Carrier. 8. PO Number (Customer Number): Include all POs numbers. 9. Trailer Number: Required for collect TL carrier shipments. 10. Seal Number: Required for collect TL carrier shipments. 11. PRO Number: LTL carrier shipments. 12. Freight Terms: If collect, check (X) Collect for TL carrier shipments and LTL shipments. For all prepaid shipments, check Prepaid. 13. Total Quantity of Pallets/Skids. 14. Total Quantity of Cartons: If mixed load (pallets/skids and loose cartons), include only total loose cartons. 15. Hazardous Material: Indicate X. a. The detail of the item must be listed first in the body of the Bill of Lading before any other commodity. b. Information required may include, but is not limited to, the proper shipping name of the commodity, the hazard class and division, the UN or NA identification number, the packing group, the exemption number, and the supplier s 3rd Party HazMat 24-hour Emergency Response phone number per DOT requirements. 16. Product description. 17. NMFC Number for each product type. 18. Class Rate for each NMFC Number. 19. Grand Total Quantity of Pallets/Skids. 20. Grand Total Quantity of Cartons If mixed load (pallets/skids and loose cartons), include only the total loose cartons. 21. Grand Total Weight: Pallets/skids and loose cartons. Include the weight of all packaging and pallets/skids. 22. Shipper signature and Date Signed. Note: Freight is counted by the shipper for all collect TL shipments and supplier prepaid shipments. The driver is responsible for only counting total shipping units for all collect LTL shipments (pallets or loose cartons). The driver will not be responsible for counting cartons on pallets. Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 12 of 13 Issued: 4/2/15
Labeling Instructions to Orchard DC Labeling instructions for shipments of products that will be delivered to Orchard s DC are included below. Shipments need to be securely shrink-wrapped and each store needs to be shipped on its own pallet. Step Action Labeling Photo Examples 1 Pallets need to be clearly marked with the store number on all four sides of the pallet. Pallet numbers must be sequenced following the examples below. Examples: Pallet 1 of 1, Pallet 1 of 5, Pallet 2 of 5, Pallet 3 of 5, etc. 2 Boxes on the pallets need to be clearly marked following the examples below. Examples: 26 Boxes on this pallet, 35 Boxes on this Pallet, etc. 3 Contents on the pallet must be clearly designated. Examples: Drill Bit Reset, Low Price Guarantee End Caps, MTS Display, etc. 4 The PO number must be designated as shown in the examples below. Examples: PO# 540-60-2103-00, "PO #440-60-2103-00, etc. 5 Each store pallet needs a packing slip and there needs to be one master Packing Slip/BOL for the DC with each of the store POs listed and number of pallets per PO/Store. 6 All collect suppliers need to submit routing at least 48hrs in advance to Orchard Traffic. Questions on shipping or labeling instructions email osh.traffic@osh.com. Prepaid suppliers will need to call (209) 833-3131 to schedule an appointment (at least 48 hrs in advance). Direct to Store Shipments For direct to store shipments, the supplier will need store address information. Orchard EDI 850 POs do not contain store or facility address information (only unit numbers). A supplier may obtain the address of OSH stores and/or facilities by emailing: edihelp@osh.com Questions Contact Regarding Email osh.traffic@osh.com Collect shipping and transportation routing instructions, requirements or shipment documentation. Email edihelp@osh.com EDI 856 Ship Notice (ASN) Packaging, marking, and labeling Orchard Supplier Operating Guidelines Domestic Shipping & Transportation Requirements - Page 13 of 13 Issued: 4/2/15