US Inbound Supply Chain Overview. Transportation of Product to QVC s Distribution Center Network

Transcription

1 US Inbound Supply Chain Overview Transportation of Product to QVC s Distribution Center Network

2 Summary Goal: Provide a high level over view of the QVC US Inbound Supply Chain process and freight terms What is covered? About QVC US Inbound Supply Chain Freight Terms Compliance to Policy Vendor Chargebacks This document highlights the key requirements for shipping product to our Distribution Centers. It does not replace Inbound Supply Chain Manual which can be obtained once full access to the QVC Vendor Portal is given. 2

3 About QVC US Inbound Supply Chain 5 1,100+ distribution centers ( DCs ) active vendors with open purchase orders ( POs ) 100M+ units received into our distribution centers annually QVC ships product into all 5 distribution centers The DC is noted on the QVC PO If product is going into multiple DCs, a separate PO will be created for each DC 3

4 Freight Terms Purchase order freight terms are negotiated with your buying office PREPAID (DDP or DAP) for vendor managed transportation DOMESTIC COLLECT (FCA) for QVC managed domestic transportation IMPORT COLLECT (FOB) for QVC managed international transportation 4

5 Let s explore these freight terms

6 Responsibility by Freight Term: OVERSEAS PRODUCTION Vendor is responsible to deliver product to the point of hand off between the dates indicated on the QVC Purchase Order. = Vendor s responsibilities = QVC s responsibilities Vendor s Overseas Factory Prepaid (DDP or DAP) Domestic Collect (FCA) Import Collect (FOB) Inland Transportation Export Customs Point of Departure Loading of Goods Ocean Transportation Point of Destination Merchandise Price = Based upon delivery occurring at QVC distribution center Import Customs Inland Transportation Vendor managed shipments. QVC takes ownership/responsibility of product at the distribution center yard. The vendor is responsible to manage all processes and costs associated with importing product to this point. QVC managed domestic shipments. QVC takes ownership of product at the vendor s domestic (US) location and pays all freight costs thereafter. Merchandise Price = Based upon delivery occurring at the domestic facility QVC managed international shipments. QVC takes ownership/responsibility of product at the named origin port or freight forwarder/consolidator and pays all freight costs thereafter Merchandise Price = Based upon delivery occurring at the named origin port or freight forwarder/consolidation facility Note: we do not need to know the vendor/factory s first cost Vendor s Domestic Facility (Domestic Collect Only) QVC' Distribution Center Yard 6

7 Responsibility by Freight Term: DOMESTIC (US) PRODUCTION Vendor is responsible to deliver product to the point of hand off between the dates indicated on the QVC Purchase Order. = Vendor s responsibilities = QVC s responsibilities Vendor s Domestic Factory Prepaid (DDP or DAP) Domestic Collect (FCA) Inland Transportation Vendor managed shipments. QVC takes ownership/responsibility of product at the distribution center yard. The vendor is responsible to manage all processes and costs associated with importing product to this point. Merchandise Price = Based upon delivery occurring at QVC distribution center QVC managed domestic shipments. QVC takes ownership of product at the vendor s domestic factory and pays all freight costs thereafter. Merchandise Price = Based upon delivery occurring at the domestic facility QVC' Distribution Center Yard 7

8 Compliance to QVC Policy by Freight Term

9 QA Pre-shipment Qualifiers Failure to complete QA pre-shipment qualifiers will negatively impact your ability to ship or deliver on time Refer to the QA requirements for more information on how to comply with the QA pre-shipment qualifiers ( QA first piece sample submitted and approved Preshipment Finished Goods Audit (PSFGA) inspection approved, when required QA pre-shipment qualifiers must be completed to proceed with these steps ( On-time delivery 9

10 Compliance to Policy: Prepaid Submit an ASN Process Submit an ASN (Advanced Ship Notice) Create a Load Secure Delivery Appointment Submit a Shipment Notice Deliver Product to QVC s DC QA pre-shipment qualifiers must be completed to proceed with these steps Create a Load Schedule a Delivery Appointment Requirement At least 10 days prior to DO NOT DELIVER AFTER date on PO. Can be completed anytime after PO approval date. Update Shipment Notice Deliver Product to QVC s DC Create load number(s) through the Shipment Notice application. Load number is required to schedule a delivery appointment. Unique load number required for each trailer/container. Trailers At least 10 days prior to DO NOT DELIVER AFTER date on PO. Containers At least 10 days prior to ESTIMATED PORT ARRIVAL date. Parcel shipments do not require a delivery appointment The appointment must fall within the DO NOT DELIVER BEFORE and DO NOT DELIVER AFTER dates on the PO Using a QVC Preferred Carrier will allow the vendor to obtain a drop appointment. Otherwise, a Live appointment will be assigned. There are a limited number of Live appointments available at each DC and goods must be delivered within 1 hour of the live delivery appointment. Must be submitted once a Load has left the vendor s facility and before it reaches QVC. This will update the Load s status to IN TRANSIT. Shipments must deliver between the DO NOT DELIVER BEFORE and DO NOT DELIVER AFTER dates to the appropriate QVC distribution center 10 NOTE: QVC does not have EDI all required information must be entered manually in QVC s vendor portal

11 Compliance to Policy: Domestic Collect Process Submit an ASN (Advanced Shipment Notice) Have Product Available for Pick-up Submit a Shipment Notice QA pre-shipment qualifiers must be completed to proceed with these steps Submit an ASN Have Product Available for Pick-up Update Shipment Notice Requirement At least 10 days prior to DO NOT SHIP AFTER date on PO. Can be completed anytime after PO approval date. Product must be ready to be picked up by a QVC carrier between the DO NOT SHIP BEFORE and DO NOT SHIP AFTER on the QVC Purchase Order. QVC or QVC s carrier will provide the estimated pick up date/time, carrier information and the Load Number to the vendor s primary/key contacts. SHIP FROM address on PO must reflect where QVC will pick up product. Must be submitted once a Load has left the vendor s facility and before it reaches QVC. This will update the Load s status to IN TRANSIT. 11 NOTE: QVC does not have EDI all required information must be entered manually in QVC s vendor portal

12 Compliance to Policy: Import Collect Submit a Booking Process Enter a Booking Request Receive Authorization to Ship Deliver Product to QVC s Freight Forwarder / Consolidator Submit Import Documentation Receive Authorization to Ship QA pre-shipment qualifiers must be completed to proceed with these steps Deliver Product to QVC s Freight Forwarder Requirement Submit Import Documentation Submit booking request to QVC s freight forwarder at least 21 days prior to DO NOT SHIP AFTER date on PO. Can be completed anytime after PO approval date. Vendor must receive authorization to ship from QVC s freight forwarder prior to delivering product to QVC s designated Freight Forwarder/Consolidator. Shipments must be delivered to QVC s Freight Forwarder / Consolidator between the DO NOT SHIP BEFORE and DO NOT SHIP AFTER dates on the QVC Purchase Order prior to the provided vessel sailing cut off date. Vendor must provide import documentation to freight forwarder within 5 days of vessel sailing. Vendor is responsible to pay costs associated with transporting and delivering product to the named location. QVC will take possession of the freight at the named location and manage transportation from that point forward. QVC s freight forwarder will partner with QVC to determine the vessel/flight selection and container consolidation configuration. 12 NOTE: QVC does not have EDI all required information must be entered manually in QVC s vendor portal

13 Import Collect Ports Serviced Origin 1 Hong Kong 2 Xiamen 3 Shanghai 4 Shenzhen 5 Ningbo 6 Tianjin 7 Jakarta 8 Busan 9 Manila 10 Colombo 11 Taiwan 12 Laem Chabang 13 Ho Chi Minh City 14 Hanoi 15 Nhava Sheva 16 Cambodia 17 Chennai Haifa (Israel) Dublin (Ireland) Leixous (Portugal) 13

14 Vendor Chargebacks Failure to comply with policies will result in Vendor Chargebacks (VCBs) Failure to submit ASN on time Inaccurate ASN Missed Live Appointment Unsafe Load Unauthorized Partial Shipment Non-compliance with pack slip instructions Non-compliance w/freight instructions Non-compliance w/ Ship To instructions Infraction Baseline Fee After 5 occurrences After 10 occurrences Over Shipment VCB + inbound & outbound freight costs incurred Late Shipment $250 per occurrence $500 per occurrence First time shipments will be exempt from VCBs. Vendors will be contacted to review the policy to ensure they understand and are able to comply moving forward. Vendors who maintain a 95% or better compliance rate will remain at the baseline fee 3% of PO Value, max $5000 per PO 0.5% of PO for each day late, max $10,000 per PO At the start of each calendar year, all vendors who are at a higher VCB threshold will be reset to the baseline VCB rate. 14