Orchard Supplier Import Payment Process (Updated April 26, 2018) Overview Effective 04/26/2018, the Import Payment Process for our Suppliers has been revised as indicated in this document to reflect the acceptance of Certificate of Inspection(IC) as a replacement for the ATS. The Orchard payment process: 1 Uses e-mail submissions and eliminate the use of the paper pouch. 2 Clearly defines the submission timeline, and when you can expect payment. 3 Provides a standard worksheet and examples that will be easy for you to follow. Simplified Process As a Supplier, you will only need to do the following: 1. Fill out standard Payment Request Sheet 2. Attach five supporting documents. 3. E-mail the sheet and supporting documents to Orchard Supply Hardware A/P @ accountspayable@osh.com. Refer to Step 7 in the document to initiate a Payment Request. Note: The Supplier is required to send a payment request by E-Mail Only. Orchard no longer will accept payment request by paper pouch. DO NOT send both an e-mail request and paper pouch. Definitions The following are definitions of items that will be used throughout this document. For additional information refer to the FAQs on pages 3-4. Item Orchard Supplier A/P FCL LCL CFS CY FCA FCR ATS/IC Definition Refers to Orchard Supply Hardware. Sometimes called vendor, the entity that Orchard directly does business with and issues a Purchase Or Different from a factory. Accounts Payable, an Orchard Supply Hardware department who processes supplier payment request a supplier. Full Container Load. Less than Container Load. Cargo Freight Station warehouse where forwarder receives LCL cargo and consolidate in order to mak container load. Container Yard in port terminal, when cargo is FCL, supplier will deliver laden container to CY, instea Free Carrier, a buying term that defines seller and buyer responsibility. Forwarder's Cargo Receipt. Authorization To Ship, this is Quality Assurance (QA) permit that is issued by Orchard Quality Assura department- superceded by the LGS Certificate of Inspection(IC) 1
Chart of Actions 1 Book to Orchard s Forwarder UPS 21 Days in advance. Deliver cargo within the Ship Window. Cargo Delivery is considered as: 2 Ocean FCL factory (cy/cy) àfca port s terminal. Ocean LCL consol load (cfs/cy) àforwarder CFS warehouse. Supplier Airfreight cargoàforwarder s designated warehouse. E-mail document package to Forwarder (including Invoice & Packing List and other 3 documentation). Note: In FCL, Supplier may provide document within 3 days after vessel sailing Carrier NA Cargo departs for US Port. 4 Review document & settle origin charges with Supplier. Forwarder 5 Issue FCR and Waybill (Sea Waybill or Air Waybill if airfreight) to Supplier. 6 Scan and post Supplier s documents, FCR, Waybill image in Forwarder s website. Supplier requests for payment by e-mailing to accountspayable@osh.com. The e-mail Subject must start with Import Supplier Payment Request then the Supplier Name Supplier will fill out Payment Request Sheet and e-mail the sheet along with the five supporting documents: o FCR (Preferable scan in full color, instead of black & white.) Supplier 7 o Waybill (Preferably scan in full color, instead of black & white.) Sea Waybill if shipped by ocean or Air Waybill if shipped by freight. o Certificate of Inspection or ATS (Authorization to Shi- This is a QA permit and authorized to ship.) o Commercial Invoice o Packing List Refer to the Import Supplier Payment Request Sheet example in this document 8 Reply to the Supplier to let them know their request has been received. Orchard Accounts 9 Review payment request & supporting documentation. Payables(A/P) Check against PO profile and UPS FGV shipping record. Provide feedback and resolve any discrepancies with the Supplier 10 Pay Supplier according to the agreed payment term, from FCR date or Payment Request Sheet submission date 2
Import Suppliers Paid by Wire Transfer FAQs Q1 Is the Supplier required to make one payment request per PO? A1 No, the Supplier payment request is based on per shipment, which is per FCR. "Shipment" refers to cargo that the Supplier books to the Forwarder as one booking, deliver and sail (or airfreight) out in same time, and arrival to US in same time. One request could have multiple POs and containers. Q2 Does Orchard allow partial PO shipment? A2 No, as a general policy, Orchard doesn't allow partial shipments; PO should ship in its entirety. Q3 If the Supplier's delivery is late compared to the Ship Window, how does it affect the Supplier payment? A3 The entire timeline (Waybill & FCR issuance, sailing time, payment request time and pay time. etc) is postponed because of Supplier's delay. Furthermore the Supplier's delay is subject to Orchard s Merchant approval. Generally on time delivery is required and encouraged. Q4 If the Supplier doesn't book 21 days in advance to forwarder, how does it affect the Supplier payment? A4 Advance booking is a policy. Late booking can possibly result in late sailing and document issuance that could affect the timely payment process. Q5 Can the Supplier submit a payment request before the cargo departs origin for the US? A5 Possibly. Especially for LCL (CFS warehouse delivery) cargo if Orchard holds such cargo in origin for an extended time. The Supplier can request payment as long as the Supplier fulfills other obligations (including the settlement of origin charges with Orchard's forwarder). Q6 How does the Supplier interpret payment terms "Wire at Sight" and "Net 30 days ROG"? A6 When the Supplier (1) delivers cargo to Orchard Named Place* in origin, (2) submits required documents, and (3) clears local export customs the cargo is considered to be an officially delivered ROG. The timeline starts for "Wire at Sight" right after "ROG", as for payment term "Net 30 days ROG". This is counting 30 days forward after "ROG". *Named place is ocean terminal if FCL or Orchard Forwarder warehouse if LCL. Q7 If a Supplier s term is "Net 30 days ROG", the Supplier delivers on time and receives FCR and Waybill from forwarder in a timely manner however doesn't make a payment request until 25 days later, when can the Supplier expect to get paid? A7 When a Supplier receives needed supporting documentation (e.g., FCR & Waybill from Forwarder), the Supplier is encouraged to make a payment request ASAP. The day that Orchard A/P receives the Supplier payment request, the request is counted as "Day 1" for "Net 30 days ROG"; however they will use their discretion to expedite processing and payment in this case. Q8 Will UPS issue original Bill of Lading (OBL) to Supplier? A8 No. UPS will issue the Waybill to the Supplier. FYI: The Waybill is non-negotiable, while OBL (representing cargo ownership) is negotiable. 3
Import Suppliers Paid by Wire Transfer FAQs, continued Q9 Does payment request supporting documentation need to be originals? A9 No, the Supplier doesn't need to provide original documentation to Orchard. Photocopies (such as attachments in e-mail) are acceptable. FCR and Waybill scanned and e-mailed preferably in FULL color, the Supplier does NOT need to provide documentation other than five documents described for payment request purpose. Document requirements from the Forwarder regarding shipping are separate and different from the payment request's document requirements. Q10 How does the Supplier resolve document discrepancies? A10 A Commercial Invoice and Packing List submitted for payment should match the one that was submitted by the Supplier to the Forwarder. This should reflect how the cargo is packed, shipped, and manifested. Generally speaking, documents should be in line with actual shipping. Q11 If PO has multiple SKUs (items), does the Supplier need to list all items? A11 No. The Supplier can list the first items, and then make a note indicating the total item count. "Quantity Shipped" should equal the sum of all items. "Total $" should also equal the sum of all items, e.g., First Cost for all "Quantity shipped". See example below. Q12 What should the Supplier fill in for "Delivery Type" on the Payment Request Sheet? A12 There are three choices: FCL, LCL and Airfreight. If the cargo is Full Container Load and the Supplier does factory load and deliver cargo directly to terminal, the Supplier should fill in "FCL". If the cargo is Less-than-container-load and the Supplier delivers cargo to forwarder's CFS warehouse for consol, then the Supplier should fill in "LCL". Q13 Can the Supplier e-mail the same payment request repeatedly to push for a payment? A13 No. This practice is strongly discouraged. This will only slow down the payment process to the Supplier, because Orchard A/P has to cross reference such requests. If supplier finds a mistake in a previously e-mailed request, the Supplier can resend the corrected package. The Supplier must clearly state in the body of their e-mail that this is a corrected request and define what has been corrected. Attachment Import Supplier Payment Request Sheet Examples FCR (Forwarders Cargo Receipt) Waybill ATS (Authorization To Ship) Certificate of Inspection (replaces ATS) Commercial Invoice Pack List 4
5 Orchard Supplier Import Payment Process -Page 5 of 15 Issued: 7/30/12
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