Shelf Ready and Transit Packaging Standards - Hardgoods

Transcription

1 Shelf Ready and Transit Packaging Standards - Hardgoods Version 1.6 Apr 2017

2 Contents Introduction 3 Target Design Principles 4 Easy to Identify 4 1. Target Brand Outer Carton Marking 4 General Requirements 4-5 Outer carton markings of Supplier Pick and Pack orders 5 Advertised Lines Label 5 Warnings on Polybags and Carton Liners 6 Colour Coded Transit Tape 6 Target Essential Transit Label 7 2. SSCC Labels 8 Label Placement Carton Packed Orders (Apparel / Hardlines) 8 11 Sorted Cargo Loading Weight Markings Bulk or Heavy Products Only 14 Weight Marking Icon Details 15 Purpose of Weight Warning Icons 15 SOLAS Verified Gross Mass (VGM) Requirement 16 Easy to Open SRP Examples 18 Easy to Replenish 19 Easy to Shop 20 Easy to Dispose and Recycle 21 Carton Design Types Marking Standards 26 Typography 26 Artwork Templates 27 Promotional Display Units under 16kgs SRP type Display Pallets SRP type Overseas supplied merchandise How will product flow end to end? 33 Considering Material Performance 34 Transit Packagin Not looks good Quality Processes & Specifications 37 Maximum Weight 38 Supply Chain Requirements 39 Target Pallet Standards Distribution Centre to Stores Appendices Amendments Appendix 1 Transit Tapes Appendix 2 Handling Symbols Appendix 3 Event Label Appendix 4 Useful contact details 50 Appendix 5 Supply Chain Check List on Inspection 51 Amendments 52 2 Current Version: 20 Apr 2017

3 Introduction Shelf Ready Packaging has quickly become a standard feature of retailing across the world, enabling simpler replenishment in the vital last 50 meters of the product s journey from Factory to Customer. If designed and implemented well, it can simplify operations throughout the product s journey and support standardised operations within the supply chain. It is essential that shelf ready packaging cartons are fit for purpose, firstly preventing product damage through the supply chain and optimising cube space on pallets to achieve distribution efficiencies. Secondly, shelf ready packaging must deliver the fundamentals contained within this document to ensure we achieve simpler replenishment in our stores that is safe and easy for customers and team members to handle and identify products. Ultimately, the faster a product is replenished to shelf, the greater the availability and sales. These guidelines have been designed to be used to compliment the ECRA s Retail Ready Packaging Toolkit and Carton Identification Guidelines ( to ensure you have all the information you need to develop best practice shelf ready packaging. Target is in the early stages of our journey to maximise the use of shelf ready packaging, but we are committed to completing implementation across hard goods in the shortest time possible. It is in all our interests to ensure that we use the processes and examples in this document, together with ECRA s toolkits to set ourselves up for success, and achieve fit for purpose shelf ready products. Andrew Myers Supply Chain Director Target Australia February Current Version: 20 Apr 2017

4 Target Design Principles The best SRP must work well throughout the supply chain from factory to customer. In line with the ECRA industry guidelines, the 5 key points to remember when developing shelf ready packaging are as below. 1. Easy to identify Overview Product must be easily identifiable throughout the supply chain, with all relevant product and vendor information visible. Recognised quickly by both systems and people. Barcodes must be easily scanned and presented on the required side and must not be obscured by tape and/or perforations. Outer carton markings (e.g., shipping labels) should always be on the part of that carton that will not be displayed on the shopfloor. Label or printed carton? Target will accept identification information listed on this page in either label or carton print format, providing it meets the minimum requirements stated. Target Brand - Outer Carton Marking for Regular Orders Target Australia (TA): minimum font height is 50mm Minimum font height of all text present on the markings are 10mm STOP, THINK! LIFT This safety message must not be less than 18cm and FONT as big as possible on the outer carton according to the carton dimensions. Weight icon (). Please refer to Weight Marking section within this document. These should be applied on cartons exceeding 10kg. Carton Mark : On 2 sides General Requirements: Handling symbols where required should be displayed on cartons. Please refer to the Appendix 2 for definition of the symbols. The following markings related to the Carton should be present. Destination Port (e.g. Melbourne/ Sydney/ Brisbane/ Fremantle) and Carton No. are required on outer carton marking for some specific countries (e.g. India, Bangladesh) according to the local government customs practice. New Line/ Killer Buy/ Target Essential on shipmark needs to be printed only if it is applicable. 4 Current Version: 20 Apr 2017

5 Field Ad Date Bus. Group Name Dept No. Dept Name Product Description Weight PO CPID Definition Advertising Date related to purchase order ( If applicable) Name of the Business Group related to this merchandise Department Number related to this merchandise Department Name related to this merchandise Description of the merchandise inside the carton Gross Weight of the carton in Kilograms Purchase Order Number Case Pack ID Number for this merchandise Outer carton markings for Supplier Pick and Pack orders SSCC label to be put on lower right hand side of main side (1 label per carton) Weight icon (). Please refer to Weight Marking section within this document. These should be applied on cartons exceeding 10kg. Bulky icon on items measuring 0.13 cubic metres or greater and weighing less than 17kgs. Where products are bulky but weigh 17kgs or more, the appropriate Heavy Weight icon is to be used. Pre-hung label will be required if the goods packed with hangers. Handling symbols where required should be displayed on the cartons. Please refer to Appendix 2 for the definition of the symbols. Key data (Po number, Product description and Case pack ID) must be printed and variable data can be stamped on the cartons (Weight, Department no. and Department Name) Arrow up sign needs to be strictly followed for all apparel shipments to maintain quality of products Advertised Lines Label All Shipper cartons containing Advertised Merchandise delivered either Direct to Store or through the Distribution Centre must have either a Fluorescent Yellow Advertised Lines Label (as shown). Dimensions of label should be a minimum : 150x100mm. Label should be placed adjacent to the shipping label but not cover any picture or safety instructions. Refer Target Supplier Website: SSCCC Label Requirements. If the outer Shipping Carton is also being used as the on-floor Display carton in store, the Advertised Lines Label should NOT be applied 5 Current Version: 20 Apr 2017

6 Colour Coded Transit Tape All cartons are to be sealed with a colour coded tape containing the Target Business Group name and a sample of the tape is shown as above. Colour tape to be used across the middle with normal transparent tape used for the sides. Store display Cartons and Target Business Group Electronics (Dept. 800,801,830,875,878,880 & 980) do not require colour coded tape. These suppliers can continue to apply generic clear or brown tape. Refer to the Appendix 1 for artworks of Color Coded Transit Tapes and how to order from our nominated suppliers for these tapes. 6 Current Version: 20 Apr 2017

7 Target Essentials Transit Label A new Target Essentials label is required to be applied on all inbound cartons which contains Target essentials labelled product. This will allow for greater visibility of stock within the DC and stores. Cartons must have three Essentials labels affixed to the outside of the carton. One label must be affixed to the top of the carton and one on two opposing sides. Labels can be either 5 cm x 5 cm, 8 cm x 8 cm or 15 cm x 15 cm with red background and white writing. Labels may be locally produced if compliant with size and color specifications, or may be ordered from one of our preferred label providers:- Kung Wo: Contact: Ada Siu, tel: , ada@kungwo.com.hk Petex Trading: Contact: Kitty Ho, tel: , petex@netvigator.com Please see below for the job number of this sticker: _P18a for 5 cm x 5 cm _P18b for 8 cm x 8 cm _P18c for 15 cm x 15 cm 7 Current Version: 20 Apr 2017

8 SSCC Labels Background: SSCC (Serial Shipping Container Code) label is a transit label applied on outer cartons. Each SSCC label is a unique barcode label with a unique SSCC number. This helps in providing end-to-end visibility of shipment (product) from factory to store. On receipt of cartons DC teams scans the barcode, identifies shipment quantities and product inside the carton and move to the respective store enabling faster availability of product to stores What this mean to our Suppliers: Suppliers to ensure all the cartons of orders (Bulk LCL, FCL, Pick and Pack) are stamped with SSCC label on shipment before moving from factory All labels are stamped on cartons as per label placement guidelines Cargo is loaded into the truck/ container as per loading guidelines Label Placement Carton Packed Orders (Apparel/ Hardlines) Labels must always be stamped securely so that it does not fall off or get stuck on any other carton/ polybag. Label size is 4 x 6 Labels must be stamped on the sides of the boxes so that it can be scanned without having to touch the carton 8 Current Version: 20 Apr 2017

9 Label must not be stamped on TOP/ BOTTOM of carton Labels must not be placed over any picture (front facing) on the carton. Place the label on the side of the carton with no picture. If there are pictures and/or Weight Markings or Dimensions on the side also, then place the label on the picture and try where possible to keep weight marking and dimensions clear. Creased Barcode label Non Scanable If Carton Height is less than 10.5 cm, then please place the label like the picture below: Barcode should not be folded/ creased (This picture is applicable only for cartons with height less than 10.5 cm) 9 Current Version: 20 Apr 2017

10 If Carton Height is more than 10.5 cm, place the label in horizontal direction instead of folding the label, like below picture: Due to space constraints, do not cover the Main shipping mark information. Place the label on other side Details on labels must match to carton markings (CP ID, PO No, etc) 10 Current Version: 20 Apr 2017

11 Damaged/ Missing/ Duplicate Labels not acceptable Labels must not be damaged/ missed/ duplicated during packing in factory or transit to port Labels/ Cartons are damaged Damaged Labels 3 Cartons received with DUPLICATE labels Cartons received with MISSING labels 11 Current Version: 20 Apr 2017

12 Sorted Cargo Loading Cartons must be SORTED by factory while loading into the truck/ container: BULK LCL/ FCL: 1. Destination Port (DC) 2. Purchase Order (PO) 3. Case Pack ID (CP ID wise) Supplier PNP Orders: 1. Destination Port (DC) 2. Purchase Order (PO) 3. Group together by starting store number 5 or 6 Poorly loaded cargo will not be accepted* as it results in additional cargo sorting and delays in shipping Not Securely stacked cartons results into falling Not Sorted cargo hence delayed in shipment/ acceptance at CFS 12 Current Version: 20 Apr 2017

13 Where possible, Cartons should be loaded in such a way that SSCC labels are facing door while delivery of goods to the CFS Please see below picture for reference: 13 Current Version: 20 Apr 2017

14 Weight Markings Bulk or Heavy Products Only In support of Government laws on employee Health, Safety and Welfare, Target requires our suppliers to weight mark cartons weighing 10kgs and over. Any carton containing more than one item in excess of 10kg or is of a bulky nature, must carry one of the following approved Weight/Bulky Marking Icons. Tickets must be attached to any individual product that weighs in excess of the approved standards below as well as the outer packing carton or bag. Please go to Bulky Items_Mandatories.pdf.aspx for more details. Note: If the carton weight exceeds the upper limit of a certain classification but not reaches the lower limit of next classification, please use the label of next classification. For example, actual carton weight is 16.8kg, please use the orange label as per above table. 14 Current Version: 20 Apr 2017

15 Weight Marking Icon Details Icon Properties Icon Application Size Details Can be a 2 colour sticker or incorporated into the packaging design as a pre-print. Also can be used in a swing ticket version for non-boxed products, with product barcode sticker on the back of ticket. 3 sizes available: 50mm x 45mm 80mm x 70mm to be used on packing or cartons with sides of box being less than 300mm depth. 110mm x 95mm to be used on packing or cartons with sides greater than 300mm depth. Where the weight warning icon is incorporated as part of the packaging design the icon should be no less than 50 x 45mm and no more than 110 x 95mm Colours Icon Location For maximum visibility, the 2 colour version of the icon is the preferred option. On single or 2-colour pack designs the Weight marking Icon can be pre-printed in one colour only onto the outer shipping carton or packaging providing it is a contrasting colour to the product information and can be clearly differentiated by the customer. e.g.: on two colour jobs, use the brightest colour to print the Weight Marking Icon. Suitable sized sticker icons must be positioned on at least 2 sides of the package (gusset / sides of box), in locations that the persons lifting the item would be reasonably expected to notice. If a swing ticket (instead of a sticker) is used on a non-boxed product it must be placed in a customer visible section of the product to highlight the weight of the product. It is the suppliers responsibility to ensure these swing tickets cannot be easily removed from the product. Purpose of Weight Warning Icons: To minimise Weight Related workplace injuries and improve workplace safety, by altering person/s lifting packages of a heavy or bulky nature. Target is committed to the safety of its employees and customers and we request that all suppliers share this commitment. All stickers and tickets must be sourced from the nominated service provider to ensure that we maintain standards, quality and pricing through combined volumes. Any stickers or tickets sourced outside the approved program, using other than the nominated service provider, must have samples approved prior to use by the relevant Brand to ensure compliance to Target standards and guidelines. Contact details for the nominated providers can be found in Appendix 4. You can download these from the Target Supplier website: under the Packing Labels session where you require artwork to print the Weight Marking icon directly into the outer shipping carton. 15 Current Version: 20 Apr 2017

16 SOLAS Verified Gross Mass (VGM) Requirement SOLAS is intended to reduce the loss of containers from vessels, provide assurance to all parties in the supply chain and improve safety of the workforce, vessel & equipment. In order to achieve this, our Vendors will be responsible for verifying the gross mass of any container offered for loading and for notifying this weight to the carrier. The carrier will not load the container until they have received this notification of gross weight, the Verified Gross Mass (VGM). Weight Tolerance as follows: Bangladesh (+/ KGS) Cambodia VGM is +/-5%, this is just a verbal sharing from Cambodia government. There is no clause on any official letter so far China - +-5% or 1 ton in total (choose less one of 2) according to China formal notice India is +/ KGS Indonesia VGM is +/ KGS, this is just a verbal sharing from Carriers. There is no clause on any official letter so far from Indonesia Government Myanmar - +/- 5% Pakistan is +/- 5% Sri Lanka is +/ KGS TPP Tolerance is 500KGS Vietnam allow tolerance max 500 KGS for the container with VGM container under 10 tons and max 5% with VGM container from 10 tons and above 16 Current Version: 20 Apr 2017

17 2. Easy to Open Overview Carton maintains shape and integrity throughout the supply chain (factory to customer) Ideally, no carton cutter required No tape covering perforation or identification markings Instructed method to open should be the easiest / intuitive way to open Opening instructions easy to follow, symbols not written No colour taping is needed To comply with the 5 Easy principles, it is likely to be easier to move the barcodes and information rather than any perforation, if conflict exists between the two Transport tests must be conducted to determine the optimal carton strength. If any perforations are breaking open in transit, consider reducing the number or length or depth of perforations without compromising Easy to Open. Example Easy Open graphics for printing on cartons 17 Current Version: 20 Apr 2017

18 SRP Examples SRP Type 1 (If Required) SRP Type 2 SRP Type 3 (If Required) SRP Type 4 (If Required) 18 Current Version: 20 Apr 2017

19 3. Easy to Replenish Overview o o o o Shelf ready packaging (SRP) aligns closely with the optimal product count in the carton. Work with your buyer and the space planning team to best determine the appropriate carton unit count when developing shelf ready packaging Considerations include: Number of facings dependent on product rate of sale and size Shelf ready packaging should be 1 or 2 per shelf depth It is beneficial to have a rear viewing window built into the back of the carton so that product behind is visible to team members and customers For stacked product within the SRP, the top of the side ledge must cover minimum 10mm of the top product SRP units transferrable to shelf in one motion, ideally with one hand SRP remains stable when transferring products to shelf, and strong enough to hold / display the items without failure Number of facings suitable for rate of sale, and planogram (if applicable) Pallet/shelf footprint is considered to maximize space utilization to reduce logistics/handling costs. 19 Current Version: 20 Apr 2017

20 4. Easy to Shop Overview Product description on retail packaging must be clearly visible, not blocked by SRP Customer must be able to remove and return the product easily All primary packaging must be packed within the carton in the correct orientation Applicable price point / featured prominently (consult the display requirements or your buyer for clarification) Shelf ready packaging appearance must be neat and presentable (no raw cardboard) No colour taping is needed The front profile (lip and pillar) must be fit for purpose for the product type and shape: o Consistent across the shelf or product category o Supports the product during shelf replenishment o Does not obscure primary packaging artwork o Retains the product and is easy to shop 20 Current Version: 20 Apr 2017

21 5. Easy to Dispose and Recycle Overview Easy and intuitive to break down without the need for a carton cutter If applicable, allows easy separation of cardboard and plastic for easy disposal and/or recycling No excessive and/or unnecessary packaging Correct recycling logos printed on all trade units packaging o Must meet the Australian Packaging Covenant guidelines. Environmental Guidelines At Target we recognise the importance of reducing our impact on the environment. We are committed to operate in a way that minimises our impact on the environment through ongoing reviews of our business practices and the products we use and sell. As a leading retailer we recognise the importance of building sustainability into our business fabric so that it becomes a part of how we work every day. These guidelines are one part of our overall sustainable approach to doing business. These guidelines support our commitment to the Target Environmental Policy and the Australian Packaging Covenant (APC) that provides the considerations and minimum standards to reduce excess packaging and deliver environmentally responsible and cost effective packaging solutions for Target and our customers to reduce waste and improve recycling. The APC is a commitment by governments and industry to the sustainable design, use and recovery of packaging. It encourages improvements in packaging design, higher recycling rates and effective stewardship of packaging. Target must ensure that our packaging complies with the Covenant s Sustainable Packaging Guidelines to ensure the most sustainable alternatives are considered to reduce waste, improve recycling and the use of recycled materials. In the development, design and production of packaging we aim to maintain standards that minimise the use of raw materials, energy, water and waste. In order to achieve minimal impact to the environment, the following hierarchy is the preferred and accepted practice; the effectiveness is in decreasing order. REDUCE the best way to reduce total impact is to minimise the initial resource required. Generally the lighter the pack the more effective it is at resource utilisation. RE-USE If a product is manufactured, instead of having to recover it via recycling and further energy, if it can be re-used then minimal inputs are required. RECYCLE requires energy to occur but minimises material wastage. DISPOSE the least preferred end of life method. For further detail on our commitment to reduce packaging waste and our Australian Packaging Covenant Wesfarmers Action Plan please go to 21

22 Carton Design Types All shelf ready packaging must meet the following minimum standards. The shelf ready packaging must also be designed to complement the primary product, allowing the product to be the hero. To support consistent implementation, we are providing templates for SRP 1, 2, 3 and 4 as below. Please use these to support discussions with your carton supplier. SRP Type 1 - Tray and Hood A tray & hood is the preferred type of SRP to be used. 22

23 SRP Type 2 - U-Shape Tray and Hood with acetate Type A Type B 23

24 SRP Type 3 - U-Shape Tray and Hood U-shaped SRP should be used for 'unstable' products. Examples of which are: Bagged product Stacked product When stacking a product, the top of the side ledge must cover 1Omm of the top product. 24

25 SRP Type 4 Base Support Tray and Hood 25

26 Marketing Standards Every type of SRP, PDU and Display Pallet must display consistent and compliant marketing messages to enable them to be used within our Target stores. This section describes the minimum standards expected for each format of carton. SRP sign-off will always include the outer marketing as well as the 5 Easy s described earlier in this document. Typography Museo Sans 300 is to be used for the product description Font size if to be 30pt. Museo is supplied with this Standards Manual in the links folder Unless using another style guide, fonts must never be substituted with a different font. Do not alter the appearance of these fonts. 26

27 Artwork Templates When creating artwork for front of SRPs, please follow the steps below: STEP 1: Choose a template from the three options below STEP 2: Using the specified fonts and sizes, strip in the correct product description and price. 27

28 Promotional Display Units under 16 kgs SRP type 5 This type of Promotional Display Unit (PDU) should be used for off-shelf store locations for promotional or event SKUs. These will be within weight and size tolerances for manual handling, and as such not require any mechanical equipment to flow through the supply chain or display in stores. Details Benefits Increased sales potential due to stronger execution by our store teams, and clearer value communication to our customers Target teams are able to plan off-shelf location space more effectively, given a standard size of PDU Greater end-to-end stock flow efficiency, including the crucial last 50m in stores Sign off Product must be suitable for the PDU solution (consult your buyer for clarification) The proposed PDU must be signed off by the buying office (buyer, supply chain, store operations): o Agree the PDU product suitability and in-store dates with the buyer o Agree the supply chain channel and PO dates with the Merchandise Planner o Confirmation from supply chain and store operations that the product is suitable to be sent into stores through the proposed channel and in the selected PDU o Any supplier artwork must be approved by Target marketing o Photography of a filled PDU from each side will be made available 8 weeks before the product lands in Australian ports, or at a Target DC (Australian local product only) o All supply chain, marketing, and store operations requirements must be adhered to To support simplicity for our suppliers and stores, we have an approved PDU design shown later in this section. This will enable a quicker and easier sign-off process Ticketing All shelves must have a data strip affixed for the display of shelf edged labels Where only one product will be displayed per shelf, this should be a minimum of 105mm (length) and 39mm (height) Where two or more products will be displayed per shelf, this should be the length of the shelf and 39mm (height) Durability Supply Chain Requirements PDUs must be supplied with a water resistant clear coating. This is to ensure they do not become damaged by daily floor cleaning activities, which could compromise the safety of the fully stocked PDU A. Pre-filled PDU This refers to fully or partially stocked PDUs that will be delivered through any part of the Target supply chain, in Australia or internationally. The following standards are a minimum requirement: Each unit can weigh no more than 16kg as they will be manually handled in our DCs and stores Each unit should be secured within an outer carton, or have a securely attached hood that will not be dislodged during handling Each shelf has a load bearing suitable for 150% of expected stock weight, up to a maximum of 16kg Labelling for the unit should comply with our Easy to identify section of this document, but also include the Remove by date specified by store operations as the end date for store display There should only be one unit per outer carton, unless agreed as part of the sign off process with your buyer, supply chain, and store operations B. Flat packed units / Empty units This refers to empty units that will be delivered through any part of the Target supply chain, in Australia or internationally, to be filled by our individual store teams. The following standards are a minimum requirement: Each unit can weigh no more than 16kg as they will be manually handled in our DCs and stores Each unit should be secured within an outer carton (i.e. not simply wrapped in plastic) Each shelf has a load bearing suitable for 150% of expected stock weight, up to a maximum of 16kg Labelling for the unit should comply with our Easy to identify section of this document, but also include the Remove by date specified by store operations as the end date for store display Exceptions If the product does not suitably fit within the display dimensions of Target s specified PDU design, approval to use a non-standard size design can be requested through the sign off channel highlighted previously (buyer, supply chain, store operations). However, the PDU must still comply with all other aspects of our listed requirements 28

29 Bulky Icon - for individual items or multi packed merchandise packed in transit cartons (weighing up to 16kg) where the carton size is larger than 0.13 cubic metres, and must be lifted by 2 people to avoid injury. Moderate Weight Icon - for individual items or multi packed merchandise packed in transit cartons 10kg up to 16kg Note: 16kg is maximum weight for transit cartons through Target Distribution Centres Remove by 24/01/2017 should be printed in 5cm high font on the rear, bottom left of the PDU (exact date should replace the example in italics) 29

30 Display Pallets SRP type 6 Details Benefits This type of display unit should be used for off-shelf store locations for promotional or event SKUs Increased sales potential due to stronger execution by our store teams, and clearer value communication to our customers Not all displays are practical within weight and size tolerances for manual handling (SRP type 5 option), and as such require mechanical equipment to flow through the supply chain and display in stores Reduced operating cost, from factory to customer Increased safety of our team members by reducing the amount of manual handling Target teams are able to plan off-shelf location space more effectively, given a standard size pallet size specification Greater end-to-end stock flow efficiency, including the crucial last 50m in stores Sign off Product must be suitable for the display pallet solution (consult your buyer for clarification) The proposed display pallet must be signed off by the buying office (buyer, supply chain, store operations): o Agree the pallet display product suitability and in-store dates with the buyer o Agree the supply chain channel and PO dates with the Merchandise Planner o Confirmation from supply chain and store operations that the product is suitable to be sent into stores through the proposed channel and in the selected pallet display format o Any supplier artwork must be approved by Target marketing o Photography of a filled pallet display from each side will be made available 8 weeks before the product lands in Australian ports, or at a Target DC (Australian local product only) o All supply chain, marketing, and store operations requirements must be adhered to To support simplicity for our suppliers and stores, we have an approved pallet display format shown later in this section. This will enable a quicker and easier sign-off process Ticketing All shelves must have a data strip affixed for the display of shelf edged labels Where only one product will be displayed per shelf, this should be a minimum of 105mm (length) and 39mm (height) Where two or more products will be displayed per shelf, this should be the length of the shelf and 39mm (height) Durability Supply Chain Requirements Exceptions Cardboard pallet bases must be supplied with a water resistant clear coating. This is to ensure they do not become damaged by daily floor cleaning activities, which could compromise the safety of the fully stock ed display pallet All display pallets should be supplied fully stocked if they are to will be delivered through any part of the Target supply chain, in Australia or internationally. The following standards are a minimum requirement: Each unit must be able to be moved with the mechanical handling equipment in our DCs and stores Each unit should be secured with an outer carton hood that will not be dislodged during handling The display unit must be securely fastened to the pallet base to ensure they do not separate during handling or transportation Where shelves are used, each shelf has a load bearing suitable for 150% of expected stock weight, up to a maximum of 16kg Labelling for the unit should comply with our Easy to identify section of this document, but also include the Remove by date specified by store operations as the end date for store display There should only be one display unit per pallet base, unless agreed as part of the sign off process with your buyer, supply chain, and store operations If the product does not suitably fit within the display dimensions of Target s specified pallet display design, approval to use a non-standard size design can be requested through the sign off channel highlighted previously (buyer, supply chain, store operations). However, the display pallet must still comply with all other aspects of our listed requirements 30

31 Each unit must be able to be moved with the mechanical handling equipment in our DCs and stores Each unit should be secured with an outer carton hood that will not be dislodged during handling The display unit must be securely fastened to the pallet base to ensure they do not separate during handling or transportation Where used, each shelf has a load bearing suitable for 150% of expected stock weight, up to a maximum of 16kg Labelling for the unit should comply with our Easy to identify section of this document, but also include the Remove by date specified by store operations as the end date for store display TARGET approved pallet display format Maximum 1200mm To support simplicity for our suppliers and stores, this is the Target approved pallet display format. This is provided to enable a quicker and easier signoff process 100mm 580mm 120mm 400mm 120mm 400mm 120mm Remove by 24/01/2017 should be printed in 5cm high font on the rear, bottom left of the pallet (exact date should replace the example in italics) 31

32 Locally supplied merchandise How will product flow end to end? Supplier builds product on to display ready pallet to 1.2m Supplier delivers display ready pallet to X-dock X-dock Delivers to store Store places pallet on show 32

33 Overseas supplied merchandise How will product flow end to end? Supplier builds product on to display ready slip sheet to 1.2m Container loaded, double stacked on slip sheets Product ships to Target DC s Store places pallet on show DC delivers pallets to store DC unload container and slide slip sheet merchandise on to pallet 33

34 Considering Material Performance Material Performance Details Examples Carton Design and Sustainability Product must be suitable for SRP solution (for clarification, please consult your buyer) The proposed carton must be suitable for the weight and quantity of the product within If the product does not add support to the SRP then additional carton strength may need to be considered Board Grade and Strength It is critical to ensure an appropriately strong and robust board grade is selected and used. Different thicknesses are used to suit the product however triple walled cases should not be used for SRP Carton board is preferred for most Target SRPs. It is usually easier to open in store and is most suited for lightweight products, product with substantial primary packaging strength, and SRPs which transit in outer cases Corrugated is preferred for heavy / large carton size products. The board grade prevent cartons from bowing/warping under their own weight (consider the cartons on the lowest layer of a full pallet) Board with a greater percentage of longer, virgin fibre will generally be stronger than board with a high percentage of shorter fibre, recycled content. 34

35 Transit Packaging- Not looks good. Transit Packaging- What looks good 35

36 Please refer to Target s International Supply Chain Operating Procedure document for details regarding shipping the completed cartons 36

37 Quality Processes & Specifications Before physical deliveries into our Freight Forwarders, it is mandatory for the shipment to go through final quality inspection by our Quality Control team. Apart from the product specifications imposed by our Quality Assurance teams, the following supply chain requirements will also be assessed in the inspection: Carton markings. Please refer to Outer Carton Marking session of this document for the exact requirements. Carton quality. The general principle is that cartons must be able to withstand handling and arrive in stores in good condition. You can refer to the table below for our minimum acceptable requirements. Packing accuracy. 100% compliance to packing specifications listed on Purchase Orders is expected. Overage, Underage and Product Substitution are not allowed. Filling efficiency. Cartons are expected to be filled economically while not compromising product quality. Overfill or Underfill of cartons are not allowed. Information accuracy. Information present on the carton markings is expected to align of actual contents of the carton. Deviation of information is not allowed. Proper application of Packaging. Use of packaging and filling such as shrink wrap or fillers should not be excessive while not compromising product quality. Product placement within carton. It is expected that products are placed in accordance to requirements communicated to you via our merchandising teams. Position of Care Labels, Barcodes etc will be assessed. Refer to Appendix 5 for Checklist to be assessed around supply chain for exact quality criteria. Requirements Single Walled C-Flute / Carton board Bursting Strength: 979 KPa ECT: 7.2 KnM 37

38 Maximum Weight The maximum weight of cartons must not exceed 30 kilograms, except where a single product item is contained in the carton, or unless the appropriate lifting signage is on the cartons. Use the following table as a guide when packaging merchandise in cartons. Carton Guidelines Carton measurement Minimum dimension Maximum dimension Height 150mm 800mm Width 150mm 750mm Length 200mm 1500mm Weight 0.25kg 30 kg (50 kgs for Heavy & Bulky It is the Supplier s/3rd party Service Providers responsibility to ensure that the above standards are adhered to. In order to maximise carton size and capacity, it is at the Supplier s discretion in consultation with the Sourcing Merchant /QA team to determine the appropriate quantity of products to be packed into a carton whilst at all times preserving presentation of the product. This will vary between different product types and Store allocations. Under no circumstances are cartons to be over-packed leading to crushing/creasing of products thus adversely affecting the floor ready presentation once products are unpacked at Store level. Similarly, under-packing a carton can result in excessive movement of the product within during transit. 38

39 Supply Chain Requirements The carton must be able to withstand the impacts of an automated supply chain. These impacts may include conveyors, sortation trays, chutes, robotic picking and forklift transportation Pallets of SRP product should never be double-stacked as they generally cannot withstand this pressure. SRP product pallets should be marked Top Load Only. The carton must be safe and easy for team members to pick from a pallet. It should be able to be safely stacked with other products on a mixed pallet of products Shrink wrap around the pallet creates weakness in the corners of the SRP carton and must not be too tight to avoid this Cartons must be of deemed fit for purpose. Merchandise must not be crushed into cartons, over filling or empty spaces (over 2cm in length, width or height). It must be of sufficient strength and quality to be able to withstand double pallet stacking without creasing or collapsing. Carton size must be chosen to closely fit the volume of contents within. Merchandise must not be crushed into cartons, over filling or empty spaces left in the top of the cartons are not acceptable. Second hand cartons are not acceptable Cartons may be taped closed, providing they do not block any identification or opening operations Ensure the labelling/markings are as per requirements Event label is required to various event. Please refer to Appendix 3 Ensure the carton does not display any misleading information or unrelated printed matter, for example, brands or product names unrelated to the cartons content. Ensure that packages form a stable unit when loaded Ensure that cartons are adequately sealed to support the content DO NOT use brown paper wrapping DO NOT use any form of strapping DO NOT apply stapling (Exceptions: Staple is accepted for the heavy / bulk carton with tape on the top to cover staple) For Bulk FCL, cartons have to be stacked in sequence by PO & by CPID at container loading. 39

40 Target Pallet Standards Distribution Centre to Stores Palletised loads are received, built, despatched and transported throughout our Supply Chain. This standard outlines the minimum requirements for the lifecycle of a pallet from a safety perspective, including the pallet build, wrapping, handling and storage. Standard pallet A standard pallet consists of articles which do not exceed the constraints of the pallet. Pallet contents must be shrink wrapped securely see next page for further information. Articles should be stacked, to ensure they do not pose a risk of falling when the shrink wrap has been removed. Articles which weigh in excess of 15kgs must not be stacked over 1.5m (this is measured from the bottom of the carton) Where possible the Ti-Hi (tier/height) configuration should be interlocking to avoid tower stacking and instability (see pics above). Avoid using tape to adjust the stability of a load. The pallet should be restacked if it becomes unbalanced. Pallets must not be double stacked. All cartons are to stacked flat with arrows and writing pointing up. No cartons to be laid on their side or upside down. 7kg 16kg 21kg 13kg 2kg Any cartons stacked above 1.5m must be less than 15kg 17k 1.5m Pallets need to be stacked in a safe and presentable manner. Do not stack on damaged or crushed cartons. Heaviest items to be placed towards the bottom of the pallet. Pallets maximum weight of 500kg (including pallet weight). Pallets should be built in layers, maximising the total space of the pallet footprint to increase load stability. Layers should be even and square as much as possible to provide stability. Articles should be stacked in a way that does not overhang the bounds of the pallet. Pallet height Pallet height is to be built to a maximum of 1.8m from bottom to highest point. Some stores (e.g. Small Format Stores) have physical restrictions on height that can be received in store. For nominated stores, pallets must be built below the nominated maximum height. 40

41 Oversized pallet An oversized pallet consists of articles which extend beyond the constraints of the pallet. Articles which weigh in excess of 15kg should not be stacked over 1.5 metres. Articles should be placed in the centre of the pallet length ways with an equal amount of overhang on each side of the pallet. Heaviest articles to be placed at the bottom of the pallet to avoid an unstable load. Avoid placing heavy items directly on the overhanging product. Avoid placing articles upright without being properly supported within the pallet. Standard pallet size is 1165mm (L) x 1165mm (W) x 150mm (H) and a dynamic carrying capacity of 2 tonnes (2,000kg) Standard pallets must have 4 leading edge boards (see image below) and at least 1 middle board on the underneath side of the pallet, it is recommended all 3 middle boards are present. Deck Board Damage Deck board damage should not exceed the following; A 25mm wide chip extending through the full board depth and exceeding a length of 600mm Shrink/stretch wrapping Full depth splits having a length exceeding 300mm The following specifications are the minimum standards for stretch wrap when transporting or storing palletised loads: Where possible, the use of an automaticwrapping machine is preferred over manually wrapping due to: ~ Decreased manual handling risk ~ Superior wrapping tension Stretch wrap must be tied/secured to the bottom of the pallet and wrapping is to cover all four corners (as far down the pallet as possible). Stretch wrap must have sufficient tension to make the wrap effective. Stretch wrap revolutions: ~ 3-5 around the base (ensuring each corner is well covered). ~ 50% overlap of wrap between rotations. ~ Minimum of 2 rotations for storage. ~ Minimum of 3 rotations for transport. Full depth cracks / broken boards over the whole or part width. Bearer Damage Bearer damage should not exceed the following; End splits shall not exceed 100mm Pallet standard and condition Only wooden pallets that comply with the dimensions and tolerances stipulated in AS Flat Pallets for Materials Handling can be placed into our racking system. Nail Holding Nails must be completely hammered into the timber and cannot be protruding in anyway. Pallet Specification Pallets must meet the following minimum standards for size and construction: 41

42 Appendix 1: Transit Tapes Note: No colour taping is required on Easy to Shop/ Easy to Replenish/ Retail box and all cartons from Department number 800/801/830/875/878/880/980. Baby & Basics Transit Tape Job #I34688_P5 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: mm COLOURS: WHITE BASE 204 C PMS 204 C Toys Transit Tape Job #I34688_P7 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 47.7mm COLOURS: WHITE BASE PMS Violet C 42

43 Homewares Soft Goods Transit Tape Job #I34688_P8 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 89.7mm COLOURS: WHITE BASE PMS 382 C Homewares Hard Goods Transit Tape Job #I34688_P9 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 89.7mm COLOURS: WHITE BASE PMS 340 C 43

44 Beauty Transit Tape Job #I55733_P1 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 87mm COLOURS: WHITE BASE C PMS 219 C General Merchandise Transit Tape Job #I34688_P11 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 144.1mm COLOURS: WHITE BASE 466 C PMS 466 C Accessories Transit Tape Job #I34688_P12 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 90.6mm COLOURS: WHITE BLACK BASE I00% 44

45 Homewares/Glassware Transit Tape Job #I34688_P14 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 158.7mm COLOURS: BLACK BASE PMS 809C fluro Target Chritsmas Transit Tape Job #I34688_P15 Specification STOCK: - White adhesive tape DIELINE: - 48mm (w) - variable length REPEAT: 85.5mm COLOURS: WHITE BASE PMS 711C 45

46 Appendix 2 Handling Symbols Designation Symbol Explanation Fragile, Handle with care The symbol should be applied to easily broken cargoes. Cargoes marked with this symbol should be handled carefully and should never be tipped over or slung. Use no hooks Any other kind of point load should also be avoided with cargoes marked with this symbol. The symbol does not automatically prohibit the use of the plate hooks used for handling bagged cargo. Top The package must always be transported, handled and stored in such a way that the arrows always point upwards. Rolling, swinging, severe tipping or tumbling or other such handling must be avoided. The cargo need not, however, be stored "on top". Keep away from heat (solar radiation) Compliance with the symbol is best achieved if the cargo is kept under the coolest possible conditions. In any event, it must be kept away from additional sources of heat. It may be appropriate to enquire whether prevailing or anticipated temperatures may be harmful. This label should also be used for goods, such as chocolate, which anybody knows should not be exposed to heat, in order to prevent losses. Keep dry Cargoes bearing this symbol must be protected from excessive humidity and must accordingly be stored under cover. If particularly large or bulky packages cannot be stored in warehouses or sheds, they must be carefully covered with tarpaulins. Center of gravity This symbol is intended to provide a clear indication of the position of the center of gravity. To be meaningful, this symbol should only be used where the center of gravity is not central. The meaning is unambiguous if the symbol is applied onto two upright surfaces at right angles to each other. No hand truck here The absence of this symbol on packages amounts to permission to use a hand truck on them. Stacking limitation The maximum stacking load must be stated as "... kg max.". Since such marking is sensible only on packages with little loading capacity, cargo bearing this symbol should be stowed in the uppermost layer. 46

47 Clamp here Stating that the package may be clamped at the indicated point is logically equivalent to a prohibition of clamping anywhere else. Temperature limitations According to regulations, the symbol should either be provided with the suffix "... C" for a specific temperature or, in the case of a temperature range, with an upper ("... C max.") and lower ("... C min.") temperature limit. The corresponding temperatures or temperature limits should also be noted on the consignment note. 47

48 Appendix 3 Event Label Please contact supply chain team for further details. 48

49 49

50 Appendix 4 Useful contact details Supplier Name Regions Served Contact Ocean Freight Damco Worldwide Alex.Paton@damco.com Air Freight Labelling Damco Cashs Worldwide Greater China Alex.Paton@damco.com Friday Lee Ph: flee@cashs.com.hk Kung Wo Brand Co 777 Yu Chau West Street 2nd Floor, Block A, Wing Hong Factory Building Color Coded Transit Kung Wo Greater China Kowloon Hong Kong (HK) Tapes Ph: Fax: ada@kungwo.com.hk Icons Icons Icons Kung Wo Roda Graphics Petex Trading Greater China Greater China Greater China Same as above Roda Graphics Shop 4, 1 Victoria Road Kinglake VIC 3763 Ph: Fax: rodagraphics@bigpond.com Petex Trading Contact: Kitty Ho Tel: petex@netvigator.com 50

51 Appendix 5 Supply Chain Quality Checklist Primary Secondary Supply Chain Check List on Inspection Faulty Type Sew n in label: Brand Name correct Sew n in label: Size correct Sew n in label: Country of origin correct Sew n in label: Care Instructions correct Sew n in label: Fire w arning Label correct (if applicable) Sew n in label: Fibre content correct Sew n in label size/fonts correct Sew n in label positioning correct Hangtag/Sw ing Tickets correct SKU/Barcode correct, physical scan correct Product Colour/Size correct Product Descriptions correct No creasing/breakage Sell Price Labelling(size/fonts) correct (removable if applicable) Importer information correct Batch/date code correct(if applicable) Hanger correct Gift box/packaging/sleeve correct Clear round sticker label strong enough to seal the product/gift box Security Label/Tag Correct Age Grading/sizing correct GOH: Sticker Label/Outer Marking correct GOH: Correct bundling (2 Red tie used/don't cut the end of the tie) GOH: Packing Method Correct GOH: Max Garment Quantities less than 10 units and 6KGs per polybag No Dirt/Stain/Odour GOH Flat Pack: Elastic bands to be attached to the inner w alls of cartons GOH Flat Pack: Lay the garment flat GOH Flat Pack: Ratio Correct GOH Flat Pack: Folding Method Correct Display box details as Green Tag approved. No creasing/breakage Plastic bag/size correct Poly bag w arning label printing/vent Holes correct Poly bag Labelling correct Inner Marking correct, e.g. key code/shipment#/barcode Amount of Space: Over Packed/Carton size too small Amount of Space: Loose Packed/Too empty of cartons SSCC label for PnP order correct Condition of Cartons: No Wet/Crushed/Burst Cartons Shipping Marking Correct: shipment #/Key code/description Colour type/w eight icons/labels correct Carton information correct, e.g. Actual w eight and size Carton w eight complies w ith Australian Regulations Outer Packing size correct, e.g. No. of inner/no. of Polybag No staples in the cartons/gift box No belt/strap w ith matel buckle fasten the cartons Packing/Packaging strong enough to protect the products No. of faulty products Crtl Maj Min Defect Position/Remarks 51