Logistics Routing Guide- Domestic Distribution Center - Mexico, Missouri

Logistics Routing Guide- Domestic Distribution Center - Mexico, Missouri Table of Contents Overview... 2 Vendor Requirements... 4 Routing Guidelines... 10 Vendor Violations... 13 Returns to Vendors... 17 Vendor Compliance Acknowledgment... 18 Advance Shipment Notification (ASN)... 19 8/29/2017

Summary of Changes to Routing Guide Date of Change Page Description of Change Change Requested by 01/01/2017 ALL 05/12/2017 3, 23 06/05/2017 9,10 08/29/2017 10, 11 Revised 2010 version to bring current Updated Logistics Contact Phone Numbers Adjusted weight breaks for small parcel, LTL & TL Removed FedEx Account Number Stacey-Jo Cram Julie Giniewicz Mike Shutt DC Logistics 2

Overview Introduction The Brookstone Logistics Routing Guide has been developed for domestic suppliers to provide guidelines for shipping, packaging and marking merchandise that is shipped to Brookstone locations. Objective It is the objective of the Logistics Routing Guide to provide the best service possible, both to our Customers and to Brookstone. By best service possible we mean maximizing Distribution Center efficiency to increase sales. Benefits The benefits of achieving our objective are that Brookstone maximizes its sales and profits and, in doing so, sells more of our Vendors products. Noncompliance All transportation costs, detention charges, storage fees or other expenses incurred by Brookstone because of the vendor s non-compliance with the terms and conditions of the Logistics Routing Guide shall be charged to the vendor. Questions For questions regarding the Logistics Routing Guide, please contact the Brookstone Logistics Department at (573) 253-2155 or (573) 253-2184. 3

Vendor Requirements Introduction This section details the policies to which Vendors must adhere for ALL Brookstone shipments regardless of purchase terms. Item ticketing All individual units must be marked with the Brookstone six-digit SKU number and an approved bar code (UPC-A). Barcodes will NOT be provided. Please contact the Merchant Team with questions about ticketing. Carton labeling All master cartons must be labeled with the following information: Brookstone purchase order number; Brookstone item description; Brookstone six-digit SKU number; AND, Carton quantity (cartons with odd quantities must be clearly marked as PARTIAL with Partial Quantities Listed.) Carton labeling for FEDEX shipments All master cartons must be labeled with the following information when shipping via FedEx: Brookstone purchase order number; Brookstone item description; Brookstone six-digit SKU number; Vendor s name and address; Brookstone s name and address (1677 Bassford Drive, Mexico, MO USA 65265); Carton numbering sequence (EXAMPLE: 1 of 3, 2 of 3, etc.); AND, Carton quantity (cartons with odd quantities must be clearly marked as PARTIAL with Partial Quantities Listed.) *Failure to mark cartons properly will result in chargebacks. Continued on next page 4

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Overview, Continued Loose carton marking for LTL shipments If shipments are not palletized and shipped via LTL, ALL master cartons must be labeled with the following information: Brookstone purchase order number; Brookstone item description; Brookstone six-digit SKU number; Vendor s name and address; Brookstone s name and address (1677 Bassford Drive, Mexico, MO USA 65265); Carton numbering sequence (EXAMPLE: 1 of 3, 2 of 3, etc.); AND, Carton quantity (cartons with odd quantities must be clearly marked as PARTIAL with Partial Quantities Listed.) Pallet labeling Bills of lading All pallets must be labeled with the following information in addition to the carton markings stated above: Brookstone purchase order number; Brookstone six-digit SKU number; AND, Pallet sequence number. Each shipment must have a bill of lading (BOL). In order for the carrier to make an appointment at Brookstone s Distribution Center the Vendor must provide the following information to the carrier for each delivery: Purchase order number, if more than one purchase order all purchase orders must be listed; Item/SKU number; Description of Merchandise and NMFC classification; Weight of shipment; Total cartons by purchase order (itemized by SKU number); Delivery Notification Required must be specified; AND, Special handling requirements/instructions (fragile glass, hazmat) All truckload shipments must be sealed, and must be listed on the bill of lading. IMPORTANT: When forwarding more than one order/shipment on the same day to one location, create one master bill of lading that references all purchase orders, SKU s, and quantities. All purchase orders shipping the same day must be consolidated into one bill of lading. It is important that you plan your shipments to consolidate and not ship on consecutive days. The billing address for carrier invoices is: Brookstone Stores, Inc., 1655 Bassford Drive, Mexico, MO USA 65265. 6

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Overview, Continued Freight Class Vendor must provide the actual freight class or FAK (freight all kinds) class for each shipment. See the National Motor Freight Classification Guide for class and item number. Misclassification of freight may result in a chargeback to the Vendor. Packing lists All shipments must have a packing list that includes, at a minimum, the following information: Vendor s name and address; Date of the shipment; Brookstone purchase order number; Number of cartons and units shipped for each purchase order; Brookstone s six-digit SKU number for each purchase order; Carrier s name; Any other special instructions. Information on the packing list must be consistent with the information provided on the bill of lading and the actual shipment itself. Palletized shipments Pallets must be standard size 40 x 48 and not exceed the maximum height of 60 inches measured from floor to top of pallet unless authorized by the Brookstone Logistics Department. PO s must not be mixed on pallet unless approved prior to shipping. Inner packs Cartons containing inner packs must maintain consistent inner pack quantities: Inner pack quantities must comply with the quantities specified in the purchase order. Changes in inner pack quantities must be approved by the Merchant and clearly indicated on the packing list. Master cartons that have partial quantities must be clearly marked on the carton and pallet as PARTIAL with Partial Quantities Listed.) Hazardous materials All Vendors must adhere to local, state and federal hazardous materials regulations including all required labels and markings of cartons, air bills, bills of lading or certifications. Your ASN must be received prior to the delivery showing clearly HAZARDOUS MATERIAL and the description for shipping purposes. 8

Overview, Continued Master carton standards All master cartons must meet the following standards: Master carton quantities must comply with the quantities specified in the purchase order. Master cartons that fall within the FedEx guidelines of maximum weight (150 lbs.) and dimensions (dim weight - length and girth no greater than 130 inches) must meet FedEx standards for processing in the small package environment. For FedEx packaging guidelines please visit the following FedEx site, http://www.fedex.com/us/services/pdf/how_to_pack.pdf Each master carton must pass the basic NSTA and environmental tests conducted by the National Safe Transit Association. Contact your local FedEx account executive for these tests, which are free of charge for FedEx customers. These tests are also available for a fee from any independent testing laboratory. Master cartons that do not meet FedEx guidelines should be packaged to withstand the Less Than Truck Load (LTL) environment. It is recommended that a sample item be shipped (in the packaging that is intended for customer shipping) to the Distribution Quality Control department for packaging recommendations and/or approval. Country of origin All products must be marked with the country of origin in accordance with United States Customs guidelines. All carton markings must be legibly written in English. Unauthorized deviations Any deviations from our Vendor Requirements without your Merchant s written consent will incur a vendor chargeback as listed in the Vendor Violations section of this document. Freight Claims Claims for shortage and damage are handled as follows: Vendor files claims for Free on Board (FOB) destination shipments. Brookstone files claims for Free on Board (FOB) origin shipments. 9

Routing Guidelines Introduction Carrier guide Carrier notes: This section reviews the proper carrier to use when shipping FOB Origin to the Distribution Center. Failure to follow routing instructions will result in chargeback of full freight amount. NOTE: There are exceptions on volume loads and the YRC cubic capacity rule. This section does not apply to shipments where freight costs are totally prepaid by the shipper. Vendors whose FOB point is destination or Mexico, MO USA and who ship to Brookstone at their expense can use the freight carrier of their choice. Refer to the table below for the appropriate carrier to use based on shipment weight. For shipments up to 500 lbs or 67 cubic feet, please ship via small package carrier, FedEx Ground shipping to Mexico, MO USA, unless otherwise specified. For shipments that are larger than the maximum small package weight or cubic feet and are less than 5 pallet spaces, 400 cubic feet, and 5,000 lbs, shipping to Mexico, MO USA please ship LTL using carrier YRC. For shipments that are equal to or more than 5,000 lbs, 5 pallet spaces, or 400 cubic feet, please call Pam Arens (Inbound) at (573) 253-2137 or Chris Sanders (Outbound) at (573) 253-2155 for specific routing instructions. Carrier details: FedEx www.fedex.com When shipping via FedEx bill to 3 rd party. Please contact your Inventory Planning Coordinator for the 3 rd Party Account Number. Invoice line items for shipping charges and 3 rd party bills without our account# will no longer be paid. Please add PO# s to the reference lines. (Canadian Vendors shipping via FedEx should ship regular FedEx). YRC www.yrc.com Contact YRC Customer Service: 800-610-6500 Bill freight charges to: Brookstone Stores, Inc. 1655 Bassford Drive, Mexico, MO USA 65265 *** Please request delivery notification from carrier. *** 10

Overview, Continued Advance shipment notification An Advance Shipment Notification (ASN) containing the following information must be faxed to (573) 581-6344 (Brookstone s Distribution Center) and to (603) 577-8003 (Brookstone s Corporate Merchandising offices in Merrimack, NH) on the day the purchase order is shipped. ASN is required on all shipments regardless of purchase terms. Vendor s name and address; Date of the shipment; Brookstone purchase order number; Number of cartons and units shipped for each purchase order; Brookstone s six-digit SKU number for each purchase order; Carrier s name; Freight bill number; A sample of the ASN form is located on page 17 of this document. FedEx third party billing Any U.S. Vendor who is shipping small parcels (no carton exceeding 150 pounds or 130 inches in length and girth) with the total shipment weighing less than 500 pounds should use FedEx third party billing. Please contact your Inventory Planning Coordinator for appropriate FedEx Account Number. If your company isn't a current FedEx customer, information about setting up a FedEx account may be obtained by calling 1-800-GoFedEx (1-800- 463-3339), dial 0 for a customer service representative. Please add Purchase Order (PO) numbers to the reference lines. Please be aware, all declared value and claims concerning the packages are the responsibility of the shipper of the packages. Invoice line items for shipping charges and 3 rd party bills without our account number will no longer be paid. If the shipper s name differs from the Vendor name appearing on the purchase order, please note it on the Vendor Compliance Acknowledgment form, shown on page 16. NOTE: Canadian Vendors shipping via FedEx should ship regular FedEx. Continued on next page 11

Overview, Continued Delivery appointments ALL CARRIERS, regardless of payment terms, must make a delivery appointment at the Brookstone Distribution Center by calling Brookstone s Receiving Department at 573-253-2196. Advise your drivers or carriers that they must request a delivery appointment at least 48 hours before the expected delivery time. Freight arriving without a delivery appointment will not be accepted. Brookstone is not responsible for any re-delivery or waiting time charges that may result from a carrier s failure to follow this policy. C.O.D. C.O.D. shipments are not accepted. Air freight shipments All airfreight shipments must be authorized through Brookstone s Logistics Department at (573) 253-2137. 12

Vendor Violations Introduction This section covers the penalties assessed to Vendors who violate our shipping, packing, marking and/or routing policies. The penalties are presented first in a table format and then are individually described. Late/early shipments VENDOR VIOLATIONS -- LATE SHIPMENTS The "ship/cancel" date indicated on the front of the Purchase Order is Brookstone's requested Ex-Factory Ship Date. This is the date that the Purchase Order is expected to depart from Seller's factory. Brookstone has the right to terminate any Purchase Order immediately upon written notice to Seller if the Seller fails to ship the Purchase Order on the "ship/cancel" date (Ex-Factory Ship Date) indicated on the front of the Purchase Order. If Seller ships any Purchase Order more than five (5) days after the "ship/cancel" date (Ex-Factory Ship Date) indicated on the front of the Purchase Order without Brookstone's prior written approval, Seller will be charged a fee equal to either (a) 10% of the total amount due under the Purchase Order, or (b) the expedited freight and handling charges incurred by Brookstone to remedy the problem (whichever is greater). VENDOR VIOLATIONS -- EARLY SHIPMENTS The "ship/cancel" date indicated on the front of the Purchase Order is Brookstone's requested Ex-Factory Ship Date. This is the date that the Purchase Order is expected to depart from Seller's factory. If Seller ships any Purchase Order more than five (5) days early in advance of the "ship/cancel" date (Ex-Factory "Ship Date") indicated on the front of the Purchase Order, Brookstone may either (a) return the Purchase Order at Seller's expense for subsequent shipment on the "ship date", or (b) retain the Purchase Order at Seller's expense at such location (including, but not limited to, third-party storage facilities) as Brookstone deems appropriate. Brookstone will postpone payment until payment reaches original due date. 13

Overview, Continued Violation types/fees Refer to the table below for a listing of violation types and related fees. Violation Per carton or Minimum Maximum per hour Advance Shipment Notifications N/A $50.00 flat N/A (ASN) fee Carrier violations N/A $50.00 N/A Carton labeling $25.00 per $100.00 $500.00 hour Over/Duplicate shipment $25.00 per $100.00 $500.00 carton Packing list errors N/A $100.00 flat N/A fee Rejected shipment $25.00 $100.00 $500.00 Returns to Vendor plus Freight $25.00 $100.00 $500.00 Expense SKU Rework $25.00 per $100.00 N/A hour Substandard Master Carton packaging $2.00 per N/A N/A carton Ticketing $25.00 per $100.00 $500.00 hour Unauthorized substitutions & rework $25.00 per hour $100.00 $500.00 Continued on next page 14

Overview, Continued ASN Vendors who repeatedly fail to supply ASN forms are assessed a fee of $50.00 per offense. Carrier violation Shipments received from unauthorized carriers are charged back the full freight amount. The minimum carrier violation fee is $50.00 per violation. Carton labeling Cartons that are improperly labeled are subject to a violation fee of $25.00 per hour (rework), with a $100.00 minimum and a $500.00 maximum charge. Over/duplicate Over-shipments and duplicate shipments are assessed a violation fee of $25.00 per carton with a $100.00 minimum and a $500.00 maximum charge. Additionally, over-shipments and duplicate shipments may also be subject to return to Vendor fees. Packing lists Vendors with incorrect or missing packing lists are charged a flat fee of $100.00 per violation. Rejected shipments Shipments that fail to meet Brookstone s quality assurance standards are rejected and returned to the Vendor at the Vendor s cost. Rejected shipment violation fees are $25.00 per carton, with a $100.00 minimum and a $500.00 maximum charge. Substandard packaging Master cartons are required to meet FEDEX standards. Cartons that fail the NSTA basic and environmental tests are subject to a violation fee of up to $2.00 per carton. Ticketing & product rework Vendors who fail to mark items with the Brookstone SKU and UPC Bar code are charged $25.00 per hour with a $100.00 minimum to correct the problem(s). Continued on next page 15

Overview, Continued Unauthorized substitutions Vendors shipping merchandise that is substituted without prior approval from the appropriate Merchant are charged a violation fee of $25.00 per hour of rework, with a $100.00 minimum and a $500.00 maximum charge. Additionally, Vendors may be charged for return to Vendor fees. 16

Returns to Vendors Introduction This section details Brookstone s policies regarding merchandise that is returned to our Vendors due to: Quality rejects; Over/duplicate shipments; Unauthorized substitutions; Cancelled orders. Freight collect Any shipment requiring a return to vendor is shipped back freight collect. The original freight charges to the Distribution Center are also charged back to the Vendor. Return authorization number A Return Authorization Number (RMA) must be supplied to the Brookstone returns requester within two working days of the request. If a Return Authorization Number (RMA) is not supplied within five days, the shipment is returned to the Vendor without one. If a specific carrier must be used for the return of goods, it must be noted on the return authorization. Handling charge A handling charge of $25.00 per carton with a $100.00 minimum and a $500.00 maximum charge are assessed for each shipment returned to the Vendor. Other reasons Returns to Vendors for reasons other than those detailed above are reviewed on an individual basis to determine if chargebacks are applicable. 17

Vendor Compliance Acknowledgment Request Brookstone requests that you acknowledge your receipt and understanding of the Logistics Routing Guide by completing this form. Questions? If you have questions about the policies contained in this document, please contact the Distribution Center Logistics Manager at (573) 253-2184. Submit this form Please complete the rest of this form and submit it to: Brookstone Stores, Inc., ATTN: Logistics Manager, 1677 Bassford Drive, Mexico, MO USA 65265. Vendor information and signature Company Name*** Representative Name: Title: Signature: Telephone Number: Date: Vendor contact Vendor contact for Return Authorizations: Name: Title: Address: Telephone Number: ***If FedEx Shipper name is different from Vendor name on the purchase order, i.e., parent company, supplier drop ships, etc., please list: 18

Advance Shipment Notification (ASN) FROM: PO# SKU# # OF CARTONS # OF UNITS CARRIER (Check one): FedEx YRC OTHER: *Carrier MUST call 573-253-2196 to make a delivery appointment! Deliveries without an appointment will not be accepted. PRO NUMBER: DATE SHIPPED: SPECIAL NOTES: PLEASE FAX THIS FORM TO: (573) 581-6344 ATTN: DC RECEIVING; AND (603) 577-8003 ATTN: INVENTORY PLANNING COORDINATOR 19