Orchard Supply Route Guide

Orchard Supply Route Guide 2016 Page 1

TABLE OF CONTENTS Page Overview of Route Guide 3 Section 1 : General Shipping & Transportation Requirements 4 Section 2: Truckload/Intermodal Shipment (Collect) Requirements 6 Section 3: LTL Collect(Less Than Truckload) 7 Section 4: Parcel Requirement 7 Section 5: Collect Routing Procedures (All Modes) 9 Section 6: Prepaid Routing Procedures and Preferred Carriers 16 Section 7: Tips and Problem Resolution 16 Section 8: Orchard Contacts 17 Page 2

Overview Orchard Supply Hardware Vendor Route Guide will help Orchard vendors with all shipping and transportation requirements for shipments direct to all Orchard Supply locations (Stores, DC, and Consolidation Centers): Orchard Supply manages the transportation of all Collect inbound shipments to Orchard Distribution facilities and its retail stores from vendors dock. Vendor shipping instructions are communicated in this section of the guide as well as system-generated and direct communications in the OSH Transportation Management System (TMS). All Collect domestic freight (Orchard Manages and Pays Freight) must be routed using our Transportation Management System (TMS) which can be accessed: https://osh.mercurygate.net/mercurygate. If you need a login ID assigned please email tms.traffic@osh.com. Delays caused by late or improper carrier scheduling, not having freight ready to load on the scheduled pickup 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 disappointed customers. NOTE - Collect vendors using the OSH TMS website automatically agree to all Orchard Supply Collect vendor compliance requirements Page 3

Section 1: General Shipping & Transportation Requirements Freight Terms: 1. COLLECT: Refers to shipments for which Orchard selects and pays freight 2. PREPAID: Refers to shipments for which the Vendor manages freight **See page 16 of this guide for prepaid shipment information** Mode Types: Parcel: 12 packages or less and not exceeding a combined weight of 100 pounds. o Must be loose cases, no pallets o Non-hazardous material only LTL (Less Than Truckload): Exceeds parcel requirements listed above and does not exceed 5 nonstackable/ 10 stackable pallets and/or 10,000 pounds Truckload/Intermodal: Exceeds 10,000 pounds > 5 non-stackable/ 10 stackable pallets Hazardous Material Shipments (Hazmat): If you are a shipper of "Hazardous Materials", your 3rd party Haz Mat 24-Hr. Emergency Response phone number must be printed on the Bill of Lading. Shipments of Lithium Batteries or Products Containing Lithium Batteries 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 new 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; Requires special documentation whenever shipping lithium batteries; Provision for allowance of lithium batteries packaged with equipment. Orchard expects all vendors conducting business with Orchard to be in compliance with all applicable laws and regulations, including the regulations applicable 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 vendors will implement any necessary changes to comply with the new rule. Expedited Shipments: Vendors may not use expedited services on Orchard s paid shipments without authorization from Orchard s Inbound Logistics Team. Orchard will choose the proper carrier and level of service for the shipment. Failure to follow these requirements will result in any additional freight expense to be passed on to the vendor for each violation. Page 4

Receiving Appointments: Carriers are required to contact Orchard Supply Hardware at least 48 hours and no later than 24 hours in advance of the desired appointment. The appointment desk can be reached between the hours of 6am and 2pm at 209-833-3131 or via email at dc.appointments@osh.com. Appointment times are available from 6am to 12pm and 4pm to 8pm. The following information will be needed when requesting an appointment: Carrier name Vendor name Purchase Order number One of the following numbers o Freight bill and/or PRO number o Bill of lading number o Shipper number and/or invoice number Number of pieces and/or pallets Weight Please note deliveries attempted by carriers without an appointment may be refused by the Orchard Supply Hardware receiving department. **Pre-approved Collect drop carriers are exempt from the above MBL and Purchase Order Numbers: The applicable purchase order number and Orchard MBL must be entered on all packing slips and the bill of lading. Bills of Lading: The bill of lading must clearly identify shipment contents and show all purchase orders included in the shipment. You must clearly identify your company name and the consignee Orchard address location. Unless otherwise specified, the vendor is responsible for providing the bill of lading. If you don t have one, a standard bill of lading document can be found on the following website www.vics.org Packaging and Labeling: A packing list must be shipped with merchandise attached to at least one exterior pallet Be clearly marked on the carton containing packing list, e.g., Packing List Enclosed Match the packing list quantity shipped in salable units Indicate the correct Purchase Order number on the packing list List the Orchard SKU # List the vendor model # Carton Marking and packaging: A Purchase Order number indicated on carton or packaging if loose cartons Cartons marked with Qty/Desc/Stock # and Orchard SKU# (contact ID) The correct carton quantity in salable units UCC-128/GS1-128 carton labels on cartons and readable. Minimum 2 per pallet exterior and readable. Loose cartons require 1 per carton. ITF-14 or Ean-128 Barcode on cartons with greater than 1 salable unit Page 5

Palletization: Product and pallet height needs to be 48 or less (Domestic Only) Product must be on a 40 x 48 pallet (Domestic Only) Merchandise must be adequately and securely shrink-wrapped Note One item on a pallet up to 48 The pallet can be double/triple stacked in the trailer to maximize cube A consolidated pallet of SKUs that are ordered in less than 45 height for a single item or remaining quantities of items that were already palletized as full pallets is acceptable A consolidated pallet can be as high as necessary provided it is secure and safe for break down For questions regarding Packaging, Labeling, Carton Marking, and palletization contact dc.vendorsupport@osh.com via email Section 2: Truckload/Intermodal Shipments (Collect) Requirements Truckload/Intermodal Shipments: All Truckload/Intermodal shipments are Shipper Load and Count (SLC). It is the responsibility of the Vendor to block and brace all freight. Truckload/Intermodal carriers do not provide loading bars or any other items to secure freight. Transportation arrangements may vary as follows: o Live Pick-Up: Driver waits while vendor loads the trailer. If carrier detention occurs, Orchard will process a claim against the vendor for the detention charges. o Drop Trailer: Driver delivers the trailer to vendor for loading and returns to pick up the trailer when notified the trailer is ready for pick-up Shipper Load and Count (SLC): All merchandise moved on COLLECT Truckload/Intermodal carriers assigned by Orchard will be Shipper Load and Count (SLC): o The driver will sign the Bill of Lading only to acknowledge pickup of the shipment. o The driver s signature will not designate carrier responsibility for the contents of the trailer. o The vendor is responsible for the contents of the trailer until it reaches the Orchard destination (Seal Intact). Vendors shipping a Truckload are required to close and seal the trailer with a vendor provided seal and document the seal number on all copies of the associated Bill of Lading. All such shipments will be considered SLC, whether or not notated. o If the vendor fails to seal the trailer or fails to reference the seal number on all copies of the Bill of Lading and shortages occur the vendor shall be liable for such shortages. o The vendor expressly agrees that the provision herein shall supersede any contrary Bill of Lading term, clause, notation, or other provision, or any other writing. Page 6

If the vendor receives a sealed trailer as part of a multi-stop Truckload, prior to breaking the seal, the vendor 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. If the seal numbers agree, the vendor is to: o Break the seal and load their product on the trailer. o Apply their seal to the trailer. If the seal numbers do not agree or the driver refuses to show the Bill of Lading from the previous pickup, the vendor is to: o Immediately contact the Orchard Inbound Logistics (see page 3 of this guide). Section 3: LTL (Less-Than-Truckload) Requirements For merchandise moved on COLLECT Less-Than-Truckload ( LTL ) carriers assigned by Orchard Inbound Logistics, the driver is responsible for counting total shipping units only - pallets and/or loose cartons. The driver will not be responsible for counting cartons on wrapped pallets marked said to contain. Note - Any shortage claims are the responsibility of the vendor when shipping wrapped pallets signed by driver as said to contain. Pick-up appointments at LTL vendors are not accepted for COLLECT shipments. NMFC Classifications and LTL Freight Class Per the National Motor Freight Classification, Rule 360, 2(c), the correct NMFC number and LTL freight class must be provided on all Bills of Lading and requests for transportation. It is the responsibility of the Vendor to class freight correctly. Additional charges charged to Orchard for incorrect Freight classification will be passed on to the vendor. Orchard Authorized Parcel Carrier is UPS Section 4: Parcel Requirements All Collect third party P.O. shipments should be sent using a ground service level and routed through the TMS. All other Air service levels should be used only if written approval is given by Orchard. NOTE: Do not confuse UPS Parcel for UPS LTL Freight. All COLLECT PO s are to be routed through TMS; Including Small Package Shipments. Once routed in TMS, Orchard Supply Hardware s logistics department will decide if the shipment qualifies for UPS Small Package. The following information is looked at when making this determination. Cartons vs. Pallets o All UPS shipments must be loose cartons. Shipments routed as cartons and booked for UPS small package but shipped on a pallet will result in additional freight costs. These additional freight charges may be passed on to the vendor. Page 7

Size and Weight o Maximum weight per package or master carton is 100 lbs. o Maximum package length and girth combined cannot exceed 165 inches for shipments to DC and Stores o Packages exceeding 108 inches in length are considered oversize and cannot ship UPS Small Package. Please make note in the Special Instruction of your routing request that your shipment CANNOT SHIP UPS. Hazardous Material o Orchard UPS account numbers CANNOT be used Vendors must have a Hazardous Materials Account with UPS to which all UPS charges for shipments of Hazardous Materials are billed. UPS Shipments of Hazardous Materials UPS accepts ORMD Materials only under the following circumstances: Vendor has Hazardous Materials contract with UPS (vendor must not use the Orchard UPS Billing Account number). Shipment is being sent within and/or between the contiguous United States and Canada. Contact the UPS Hazardous Materials Support Center at 1-800-554-9964 for details. Shipments Booked UPS small package If it is determined that your shipment qualifies for UPS Small Package, you will automatically receive Routing Instructions indicating UPS as the carrier along with Orchard s UPS account number. The routing instructions will also indicate the planned pickup date and assigned OSH Load ID (MBL#). A UPS 1Z tracking number will automatically be created and sent to you as well, along with UPS shipping labels. Scheduling UPS Small Package Pick-Ups Once you receive the Routing Instructions, 1Z tracking number and labels you will need to schedule the pickup with UPS. The vendor is responsible for contacting UPS to schedule the pickup based on the planned pickup date shown on the Routing Instructions. o Your pickup can be scheduled online at ups.com or by calling 1-800-PICK-UPS (1-800-742-5877) When calling UPS, identify your company as an OSH vendor, as applicable. Page 8

Section 5: COLLECT Routing Procedures (All Modes) The Carrier and Mode of Transportation for COLLECT shipments can vary by destination, linear feet and/or weight of each shipment. Orchard may route your freight: 1. To OSH Distribution Center (DC) 2. Direct to an Orchard Store 3. Part of a multi-stop Truckload (TL) to a DC or direct to an Orchard Store 4. Part of a Pool Point Consolidation - LTL sweep into a Consolidation Facility 5. Via UPS Ground If you have products classified as a Hazardous Material for which the routing instructions specify shipping to a DC mark in the TMS with the correct hazmat code in the hazmat field. Freight must be ready to load by the scheduled carrier appointment time on the scheduled pick-up day. Submit your request via the OSH TMS website https://osh.mercurygate.net/mercurygate. o A step by step guide for submitting a routing request provided on page 7. Requests submitted after 12 PM noon PST will be reviewed the next workday. Please reference the OSH TMS Routing Guidelines, which is sent to you with your TMS User ID, for further information. **A copy of this guide can be found in your TMS portal under Vendor News** (see below) Submitting a Route Request (RR) in TMS You will need to log into your TMS portal with the user ID and password provided. Your user name will be your email address (all CAPS). The temporary password will be password (all lowercase) which can be changed by you once logged in. Example: OSH.TRAFFIC@OSH.COM Password: password *** If you lose or forget your password please email tms.traffic@osh.com for a password reset. *** Page 9

Once logged in, your Dashboard should look as follows: You will submit your route request in the section called Routing Request: 1. Use the drop down under Shipping Defaults to select the Origin for the shipment you are routing. 2. Click FIND a. All pending orders should come up i. If not adjust the SHIP AFTER FROM date back 2 or more weeks and then click FIND again. ii. If you are still unable to locate a certain PO please send an email to osh.traffic@osh.com for further assistance. iii. You can search for a particular PO by entering the PO number (no dashes and with ending 00 s). EXAMPLE: 157011244400 Page 10

1 2 3. Select the PO you are needing to route 4. Click ROUTING REQUEST 3 4 5. Origin: Make sure the correct Origin (Shipping location) is listed. 6. Available Date: Indicate the date this order will be available for pick-up and change the times to reflect your loading hours. Page 11

7. Use Qty: If shipping in full no changes will ne needed. a. If not shipping in full; USE QTY will need to be adjusted to the amount of units shipping for each item. 8. Freight Class: This will auto populate for all items that have previously been routed. a. If this is a new item and/or the first time it is being routed in TMS you will need to fill in the Freight Class. Going forward the Freight class for this item will auto populate. 9. Hazmat Class: This will auto populate for all items that have previously been routed. a. If this is a new item and the first time it is being routed in TMS you will need to adjust the Hazmat Class if the item is Hazmat. b. This should be left blank for any items not Hazardous. 10. Click NEXT 5 6 10 7 8 9 RR s that are submitted incorrectly may be deleted for resubmittal. RR s that have to be deleted may cause your PO to be late. Inaccurate freight classes can potentially result in additional freight costs. These additional freight costs may be passed through to the vendor. Miss-stated and/or missing hazmat classes can potentially result in additional freight costs. These additional freight costs may be passed through to the vendor. All vendors are to make sure shipment details are accurate before finalizing the RR in TMS. **Please email osh.traffic@osh.com should you need to make any corrections to a routing request. No changes can be made by the vendor once the routing has been submitted.** Page 12

Routing Request Instructions (RR Instructions) Submitted routing request will be booked to meet the PO s Expected Delivery Date (EDD). OSH will book the freight with an approved COLLECT carrier and routing instructions will automatically be e-mailed to the TMS user who submitted the routing request. o A copy of the Routing Instructions document can also be printed from TMS/Vendor Manage Shipments once the shipment has been booked with a carrier. The Routing Instructions will include the OSH assigned MBL# and Routing Request (RR)# as well as the carrier information and planned pick-up date. MBL and Routing Request (RR) All shipments routed and booked through TMS are assigned a unique MBL# and Routing Request (RR)#. These numbers are used by OSH and by the carrier to not only schedule pick-ups but to also to track the shipments. The MBL# (Load ID), Routing Request # (RR) and all PO# s are to be included on your Bill of Lading (BOL). Bill of Lading A single Bill of Lading for each destination that includes information for all product loaded in a single trailer. One trailer to one OSH destination = One Bill of Lading. Do not include a separate Bill of Lading for each purchase order. If more than one Bill of Lading is presented to a carrier Orchard may be charged per Bill of Lading. Any additional freight expense will be passed on to the vendor If your internal system is coded to create a separate Bill of Lading for each purchase order, you must be able to consolidate the separate Bills of Lading into a single consolidated or master Bill of Lading for each OSH DC, Store or Consolidation Center destination and trailer. If shipping multiple trailers to the same destination unit number, a separate Bill of Lading is required for each trailer A single Bill of Lading must not exceed a single trailer. For all finished product containing composite wood products, the Bill of Lading (or EDI 810 Invoice) must include the ATCM statement to affirm compliance (see section 3 for information regarding California Air Resource Board Standards for Composite Wood Products ). Page 13

Bill of Lading requirements 1. Bill of Lading must be printed at top of document 2. Bill of Lading must match the RR instructions that are sent over once shipment is booked with a carrier. If Bill of Lading does not match the RR Instructions and additional freight charges are applied will be charged back to the vendor. 3. Ship From vendor name and address. Use company name as listed on your OSH Profile name. 4. Consign To destination name, unit number, and address. 5. Bill of Lading number. 6. Actual date of shipment - do not predate. 7. MBL and Routing Request (RR) number. 8. Carrier SCAC. 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 and LTL carrier shipments assigned by OSH Inbound Logistics. For all prepaid shipments, check Prepaid. 13. For COLLECT LTL shipments routed by OSH Inbound Logistics, include the following freight billing information exactly as listed below (do not include for COLLECT TL shipments or for any prepaid shipments) Orchard Supply Hardware ATTN: Orchard Inbound Logistics 2650 MacArthur Drive Tracy, CA 95376 14. Total quantity of pallets/skids. 15. Total quantity of cartons - if mixed load (pallets/skids and loose cartons), include only total loose cartons. 16. Indicate (x) if product is classified as Hazardous Material. If marked, the detail of the item must be listed first in the body of the Bill of Lading before any other commodity. 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 your 3rd party Haz Mat 24- hour Emergency Response phone # per DOT requirements. 17. Product description. 18. NMFC number for each product type. 19. Class Rate for each NMFC number. 20. If not including all purchase order numbers and total quantity of cartons include the first purchase order number listed on the associated Shipping Manifest in the body of the Bill of Lading. 21. Grand total quantity of pallets/skids in shipment. 22. Grand total quantity of cartons in shipment - if mixed load (pallets/skids and loose cartons), include only the total loose cartons. 23. Grand total weight of all shipping units (pallets/skids and loose cartons). Include the weight of all packaging and pallets/skids). 24. Shipper signature and date signed. 25. Trailer loaded - check (X) as applicable. Page 14

26. Freight counted - check (X) By Shipper for all COLLECT TL shipments and vendor prepaid shipments. Check (X) By Driver for all COLLECT LTL shipments. Note: For merchandise moved on COLLECT LTL carriers assigned by OSH Traffic, the driver is responsible for counting total shipping units only - pallets or loose cartons. The driver will not be responsible for counting cartons on pallets. Trailer Loading Requirements All COLLECT Truckload (TL) freight must be ready to load by the carrier appointment time on the scheduled pick-up day. The hour of loading, based on an appointment time, is free. Collect carriers may charge detention for any loads taking over 2 hours to load from appointment time. Detention charges may be passed through to the vendor. All COLLECT Less-Than-Truckload (LTL) freight must be ready to load by the planned pickup date indicated on the Routing instructions. Must be loaded with in thirty (30) minutes of driver s arrival. LTL carriers DO NOT schedule pick-up appointments Driver may be pulled if not loaded within 30 minutes of arrival. Required Shipping Documents Master Bill of Lading consigned to for each trailer. Master Manifest for each trailer. EDI 856 Ship Notice (ASN) for each Cross-dock and DC/Store destination unit number loaded on the trailer. Packing list for each DC/Store. All Shipments Include complete and accurate information in all shipping documents. Include only the required shipping documents. Do not include any invoice copies, pick tickets or other internal use documents. Store Addresses For direct-to-store shipments, you will need store address information. OSH EDI 850 Purchase Orders do not contain store or facility address information (only unit numbers). You may obtain the address of OSH stores and/or facilities by emailing: dc.vendorsupport@osh.com Page 15

Section 6: Prepaid Routing Procedures (All Modes) We encourage prepaid vendors to use Orchard authorized carriers (including UPS Ground - Prepaid) as our carriers are most accustomed to our delivery requirements at our distribution centers and stores. Prepaid vendors are responsible for the transportation of their shipments to each Orchard destination (Cross-dock or store) and carrier payment with the carrier of their choice. Prepaid vendors Bill of Lading must be marked as Prepaid. Prepaid vendors are responsible for their carrier s performance in delivering each shipment to the Orchard destination on the scheduled date. Prepaid vendors 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 vendors are responsible for providing the information. Prepaid vendors 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 (Advanced Shipping Notice). Unless a pre-arranged delivery schedule exists, prepaid vendors or their carrier must call 209-833-3131 or email DC.Appointments@osh.com to schedule a delivery appointment no later than 48 hours prior to delivery. Any vendor prepaid carrier showing up on a non-scheduled delivery day, outside the agreed upon carrier arrival window, or without a delivery appointment, may be turned away. You can obtain a current list of Orchard preferred carriers by sending an email request to osh.traffic@osh.com Section 7: Tips and Problem Resolution How to Calculate TMS Cube (to be used whenever submitting routing requests in TMS) Vendors are to calculate the cube as follows. Failure to do so may result in your shipment being booked incorrectly which may result in fines. 1 non-stackable pallet = 150 cube per pallet 1 stackable pallet = 75 cube per pallet You can fit 26 standard sized non-stackable pallets in a 53 truck If you re Truckload/Intermodal cubes out less than 4000 cube be sure to note this in the special instructions on every RR submitted Page 16

How to Calculate Effective Cube Due to the difference in size and space your merchandise will utilize in a trailer, use the effective cube measurement listed below as a guideline for determining if your shipment is Less-Than- Truckload ( LTL ) or Truckload/Intermodal ( TL/Intermodal ). The formula for determining effective cube is as follows: 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. You may need to bulkhead your load to prevent load shift. It is the vendor 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. Example: For the above example: 24 53 X 4,000 = 1812 effective cube (rounded up). Other 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. Rule of thumb is that a non-stackable standard pallet = 150 effective cube and a stackable standard pallet = 75 effective cube. Orchard Supply Contacts If after reviewing the information in this section you have any questions please email as follows: osh.traffic@osh.com o Shipping and transportation routing instructions, requirements or shipment documentation tms.traffic@osh.com o Ship point updates, password resets, new TMS user requests Maria.Gutierrez@osh.com o EDI issues o Advanced Shipping Notice (ASN) dc.vendorsupport@osh.com o Packaging, marking, and labeling questions Page 17