Depot Dry Receiving Guidelines. Standard Operating Procedure TABLE OF CONTENTS
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1 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 1 of 13 Depot Dry Receiving Guidelines Standard Operating Procedure TABLE OF CONTENTS PAGE 1. INTRODUCTION Key Information Location Contact Phone Number Website Operating Hours 4 2. DEPOT REQUIREMENTS 2.1 Booking a Delivery Depot Safety Visitors Driver Safety Palletised Deliveries Palletised goods requirements Pallet Management Oversized wood pallet requirements Package engineering requirements Minimum stacking strength requirements Vehicle Specifications Delivery Vehicle Type Pitbull Restraint System Making a Delivery Delivery Paperwork Procedure upon arrival at Costco Depot Rejection of Delivery 12
2 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 2 of 13 INTRODUCTION SCOPE The scope of this document is to instruct our vendors on the Depot requirements. Our goal at Costco continues to be to provide quality products to our members at great value. To achieve this, we continue to focus on opportunities to lower costs. By utilising Costco s Depot Receiving Guidelines, you will help to lower costs and ensure that our products arrive safely, without damage to our warehouses. Costco s depots are managed as cross dock facilities and therefore do not hold or store inventory at these sites. Products are received and shipped out to warehouse locations, the same day they are received. Packaging must be engineered to maintain its structural integrity throughout Costco s entire supply chain.
3 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 3 of KEY INFORMATION LOCATION Depot Location for Dry Costco Wetherill Park Depot Warehouse 2, 3 Davis Road Wetherill Park NSW CONTACT NUMBER Receiving Office Contact Phone Number WEBSITE
4 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 4 of OPERATING HOURS The Wetherill Park Depot Business hours of operation are as follows: Monday Friday 5:00am 9.30pm Category receiving hours of operation: Domestic Dry Receiving Monday Friday 5:00am 11:00am International Dry Receiving Monday - Friday 1.30pm 9.30pm
5 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 5 of 13 DEPOT GUIDELINES 2.1 BOOKING A DELIVERY o Bookings can be made Monday to Friday 5.00am to 12.30pm via . o bookings directly by to: - For Dry deliveries: d05192-appointment@costco.com.au o Delivery request s must include the following information: - Booking PO Number Department Delivery Date Request Delivery Time Request Number of Pallets Freight Company Name (if applicable) o o Booking Confirmation will be made via within 24 hours of the booking request . Consolidating Loads: in some cases you may be required to deliver multiple PO per vendor or in the case freight companies delivery for multiple vendors. If you have a booking for 8.00am for one vendor you need to advise the Appointment Clerk of your existing booking to ensure that you have been allocated satisfactory dock time.
6 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 6 of DEPOT SAFETY Safety protocols MUST be adhered to at all times VISITORS For Visitors that need to enter the depot facility; o Complete a site induction overview prior to gaining access to the building o Wear high visibility clothing & safety footwear o Sign in and out at the gate house o Conduct themselves in an appropriate manner at all times o Remain within the designated areas and utilise safety pathways at all times o Smoking is only permitted in the designated area of the facility DRIVER SAFETY o Remain in their vehicle while waiting to be unloaded o If at any time you have to get out of your vehicle, remain within the designated areas and utilise safety pathways at all times o Wear high visibility clothing & safety footwear o Conduct themselves in an appropriate manner at all times o Adhere to the speed limits imposed o Smoking is only permitted in the designated area of the facility Failure to comply with safety protocols and engaging in unsafe practices will result in the delivery being refused or terminated. Further action may also be taken.
7 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 7 of PALLETISED DELIVERIES PALLETISED GOODS REQUIREMENTS o Goods must be palletised on standard AU sized wooden pallets. Plastic pallets are only acceptable by exception and only if permitted by Costco Wholesale Australia. o Furthermore, only pallets which are in good condition will be accepted and goods delivered on sub-standard pallets will be rejected. o Maximum weight on a pallet is 1200kg. o In order to benefit from the economies of shipping, the pallet must not exceed 1300mm in overall height (including the height of the pallet) and must be level stacked on top. o Subject to weight, this should allow double stacking in outbound vehicles. The goods must not protrude beyond the edges of the pallet, as this will hinder the loading and unloading process. o Goods should be shrink-wrapped onto the actual pallet to improve overall stability. The wrap must be clear and transparent [The use of black wrap is only permitted when requested by the buying department] PALLET MANAGEMENT o As a preference, Costco merchandises its inventory on AU standard blue CHEP pallets S1165A Hardwood specifications can be accessed via the following link. ooden-pallet-australian-standard o Costco also accepts AU specification Loscam pallets specifications can be accessed via the following link. 0Australia%20Wooden%20Pallet.pdf o On receiving of goods, pallets will be sorted into their specific Order Number. o Pallet exchange is NOT available at the facility. o With each delivery you must bring along the electronically generated docket issued by your pallet provider. o Costco will accept manual dockets only by exception. o All exchanges must now be made to the following accounts: CHEP ACCT #: Day Delay LOSCAM ACCT#: Day Delay
8 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 8 of OVERSIZED WOOD PALLET REQUIREMENTS o Any products requiring an oversized wood pallet or any deviation to the required pallet standards must be approved by Costco prior to shipment. Please submit the following information to your Costco Buyer for approval: Photo or illustration of oversized wood pallet including specifications Photo or illustration of oversized wood pallet showing product positioned on it o Pallets that are 'purpose built' to accommodate odd-sized merchandise (e.g. long swing sets) and for which the Costco Depot has been provided advance notice is an authorised exception PACKAGE ENGINEERING REQUIREMENTS: o Packaging must be engineered to withstand long haul transit dynamic load factors without damage. o Packaging must be engineered to withstand forklift, pallet truck handling and mechanical layer clamping without damage. o Packaging must be engineered to withstand 80-90% high humidity environmental conditions without failing. o Packaging must be engineered to withstand a minimum of four weeks storage time under load weight without failing MINIMUM STACKING STRENGTH REQUIREMENTS FOR PALLET LOADS SHIPPED VIA COSTCO'S DEPOTS: o Stacking strength is defined as the maximum compressive load that a container can bear over a given length of time under given environmental conditions without failing. o Each pallet load under 340kg must be capable of withstanding 680kg of weight on the bottom product layer without damage. o Each pallet load over 341kg must be capable of withstanding 1130kg of weight on the bottom product layer without failing.
9 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 9 of VEHICLE SPECIFICATIONS DELIVERY VEHICLE TYPES ACCEPTABLE o Rear loaded vehicles which meet standard dock height requirements o Truck with a minimum internal height requirement of 2.2M from truck floor to top of door o Truck to be able to be unloaded with power equipment from the rear of the vehicle o All Trucks to meet the requirements of our pitbull dock restraint system (refer to 2.4.2) o Trucks to have curtain and/or solid sides o All straps, pogos, restraints and obstacles need to be removed prior to reversing onto dock. o Pallet jacks must NOT be placed on top of pallets (safety concern). o Curtains need to be kept secured while truck is on dock (safety reasons). NOT ACCEPTABLE o Tailgate and/or B-Double trucks are not permitted. o Trucks with wooden floor boards will not be accepted o Manual handling of products is not available o Outside unload is not accepted PIT BULL RESTRAINT SYSTEM A Pit Bull is a safety device to guard against premature departure, trailer creep and trailer walk. The Pit Bull has a bite that locks on tight, engaging a trailer s rear impact guard and securing it more effectively than rubber wheel chocks. Pit Bull restraints are most compatible with the new rear impact guards because of their non-impact, low-profile design. The exterior light is green and the internal light is red until the truck is against the dock bumpers. After 60seconds the dual gas springs raise the restraint arm engaging the ICC bar. The internal light turns green when the restraint maintains positive contact with the truck ICC bar and the exterior light remains red until disengaged by the Costco Employee internally. Only at this point can the truck disembark.
10 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 10 of DOCK AND TRUCK HEIGHT: o Internal height of the trailer must be a minimum of 2.2M to allow room for machinery to offload. o All trucks must be less then 4.7M high to allow clearance under structures. o Minimum floor height of the trailer is 1.3M, if the truck is smaller then this we will be unable to offload. If for any reason your truck does not meet these requirements the stock will be rejected.
11 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 11 of MAKING A DELIVERY DELIVERY PAPERWORK The following paperwork must be presented with each delivery; o 1 Chep / Loscam docket per delivery / consolidated load o Packing list / Invoice, which must quote the following information; Item description/s Quantity delivered Costco AU purchase order number (PO) o Costco Sydney Depot PO s are 10 digit numbers, commencing in 192 o Apparel Merchandise: all apparel merchandise require the following information by case: Purchase order Quantity Costco item number. o All paperwork must be handed over to our gate house receiving staff on arrival PROCEDURE UPON ARRIVAL AT COSTCO DEPOT On arrival to the Wetherill Park facility, you will need to enter via our gatehouse and proceed to the loading dock. Gatehouse The gate house staff will check that the driver has the following; o A copy of the packing list which clearly states a purchase order, description of goods being delivered along with quantity. o A time slot booked in our system o An electronically generated pallet exchange docket o The truck is set for the required product temperature, ie chilled / frozen Receiving The receiving bay check to ensure that: o The correct items have been supplied in accordance with the Purchase Order o Order quantities are correct o Date marking is in line with Costco s acceptance requirements (ie. use-by & best before) o Paperwork is stamped for the POD (subject to count, refer to 2.5.3) o Pallet transfer paperwork is signed and the pallet transfer is accepted o Items are confirmed as received
12 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 12 of REJECTION OF DELIVERY There may be some occasions where a delivery may be refused. If for reasons outlined below a delivery order is rejected or cancelled, the vendor must notify the relevant Costco Buying Department. Notification is not made to the supplier if a rejection has been made. The transport company is responsible to take action of any refusal. Examples of reasons for refusal: o Goods not booked in; Deliveries that have not been booked in will be refused. o Truck does not meet Depot specifications and or deemed unsafe to unload; i.e. Pitbull does not clip in, truck too low to safely drive the forklift in. o Substandard Pallets; White Pallets, brown boards, broken or damaged pool pallets, dirty or infested pallets. Shipments received on substandard pallets will be refused. At Costco s discretion, goods may instead be restacked onto acceptable pallets at the vendor s expense. o Paperwork; Costco purchase order number not on the paperwork, packing slip not available, o Late arrival of the Vehicle; There is a 15 minute allowance given for deliveries after the allocated timeslot. Where a vehicle is going to be more than 15 minutes late checking in, if the main office is contacted on to advise of the problem and expected arrival time, every endeavour will be made to receive the goods subject to not delaying other vehicles which arrived on time. Beyond 30 minutes, without a phone call to advise of the situation, the delivery is likely to be refused. o Incorrect freight presentation / not palletised; Some deliveries are pre-agreed to be floor loaded and this is reconfirmed at time of booking to ensure adequate time is scheduled to offload the container. Deliveries that are not correctly palletised without prior agreement and confirmation at the time the booking is made will be refused. o Freight Damaged; Depot is not scheduled to be able to sort through goods that are damaged. Goods damaged because of movement in transit are likely to be refused. Photographs will be taken to assist in communicating the problem to the Costco buyer. o Mixed Pallets; As per Costco standard, there must be only one item per pallet. Mixed items on a single pallet will not be accepted unless requested by the buying office. Mixed pallets must be stacked one item per layer.
13 I s s u e d a t e D o c u m e n t N o. Costco AUS SOP-209 P a g e 13 of 13 o Outside agreed shelf life; Goods that do not meet the minimum amount of shelf life agreed to by Costco will be refused. o Outside agreed quality specifications; Every effort will be made to check products against the agreed quality specifications prior to acceptance of the goods, but in some instances time constraints may prevent this. Where goods are received based on pallet count, the quality specification check will be completed prior to the dispatch of goods to our warehouses. In either case, the product must meet the agreed specifications in terms of size, weight, colour, grade, packaging, quality of manufacture, origin, method of manufacture or production. Goods falling outside the agreed quality specifications will be refused. Where goods fail a specification after the delivery vehicle has left the premises, the vendor will be contacted to arrange collection of the goods. o Anti-Social Behaviour; Costco will not tolerate rude, abusive or aggressive behaviour towards its employees o Mixed Trucks: The depot will not accept chilled/frozen and dry on the same truck.
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