Published on November 6, 2007
Slide1: Lowe’s Canada Vendor Requirements Agenda: Agenda Walk through Vendor Package 4 Phased Approach for Vendor Requirements: Phase 1: Prior to first Purchase Order Receipt Phase 2: Scheduling and Shipping Phase 3: Post Purchase Order Receipt Phase 4: Future Expectations Vendor Package: Vendor Package Vendor Education Presentation Appendix A: EDI Quick Reference Guide Appendix B: HAZMAT Legend Appendix C: Cross Border – Description of Documentation Appendix D: Sample Process Appendix E: Shipping Specifications Appendix F: Label Placards Appendix G: Ontario Exempt Certificate Appendix H: Summary of Container Information Phase 1:Prior to First Purchase Order Receipt: Phase 1: Prior to First Purchase Order Receipt LowesLink ® EDI Initial Order Forecasts Canadian Standards (CSA) Certification HAZMAT Electronic Article Surveillance Barcoding Cross Border Requirements Vendor POP Signage LowesLink ®: LowesLink ® Available at www.loweslink.com LowesLink ®: LowesLink ® Informational web tool available for Lowe’s vendors Primary method of communication for all business areas Key Documentation: Transportation Routing Guide Distribution & Packaging Requirements Barcoding Requirements Packaging Requirements HAZMAT Vendor Compliance IT Requirements Key Applications: Electronic Data Interchange – View purchase orders and invoices Product Content Management - flow & accuracy of product data Vendor Inquiry - vendor payment information and history Store Lookup – store location information LowesLink ®: LowesLink ® To Register: www.loweslink.com click Register Here under Getting Started The registration section includes: System Requirements Digital Certification Agreement Registration Form Your vendor number is also required to register Important: It is the vendors responsibility to stay up to date with information posted on LowesLink ® For more detailed information about LowesLink ®, please see the FAQ at: www.loweslink.com/pubdocuments/Canada%20FAQs.pdf EDI: EDI Vendors are required to have EDI capability Exceptions will be made if minimal negative impact will result Exception vendors must use Lowe’s EDI web forms Stock & SOS Purchase Orders POs can be issued via EDI several times each day Vendors are required to check for POs at least once a day to ensure lead times are adhered to Advance Shipping Notice (ASN) In the near future, Lowe’s Canada will require ASN’s for all shipments Vendor’s will be communicated to in advance of this requirement All EDI information is available on LowesLink ® www.loweslink.com/edi.htm EDI – New Vendors: EDI – New Vendors To Register: All existing & new Lowe’s vendors are required to register for Canada Click EDI Vendor Registration under EDI on LowesLink ® : www.loweslink.com/pubdocuments/EDI_VENDOR_REGISTRATION.xls The following information is required to register: Vendor Home Office & Remit Numbers Are you a consigned inventory vendor? Are you a reverse PO vendor? Are you shipping VPXD? Are you transacting in CDN or USD currency with Lowe’s Canada? Validate the above with your Merchant and Supply Chain Analyst For more information, visit Communication to New Vendors: www.loweslink.com/pubdocuments/Letter_to_New_Vendors.pdf EDI – Existing Vendors: EDI – Existing Vendors Type 1 – NOT changing sender/receiver ID’s Retest NOT required Type 2 – Changing sender/receiver ID’s Retest required Submit an EDI Vendor Registration Form Visit Communications for Existing Vendors on LowesLink® www.loweslink.com/pubdocuments/Letter_to_Existing_Vendors.pdf EDI Setup & Testing: EDI Setup & Testing Lowe’s EDI team will contact you once registration is complete Vendors will be required to test 4 documents PO Invoice ASN EFT EDI team will walk vendor through requirements An “Invoicing Agreement” to sign and return will be issued once a clean test occurs For EDI questions and support, refer to the EDI Quick Reference guide in Appendix A EDI Web Forms: EDI Web Forms Webforms gives non EDI vendors a web based solution for receiving POs and submitting Invoices To Register: Online registration at www.loweslink.com under Getting Started Complete and submit the Subscriber Agreement Your vendor number is required to complete this form Each subscriber receives a digital certificate number allowing only them to view on-line information EDI team will contact vendor to validate test POs and Invoices The Subscriber Agreement as well as other information can be found at the following site: www.loweslink.com/pubdocuments/WebForm_Intro_FAQ.pdf Initial Order Forecasts: Initial Order Forecasts Emailed to the vendor by a Lowe’s Forecast Analyst Process to begin Mid-June First point of contact for questions about the forecast is the FA Canadian Standard Certification: Canadian Standard Certification Vendors are legally obliged to comply with all Canadian Laws and Standards Certifying goods: Recommended for vendors new to Canada Vendors must submit products to a nationally recognized testing lab: CSA (Canadian Standards Association) UL (underwriters lab) Intertek testing services Article 8 of your Master Standard Buying Agreement (MSBA) contains details of your agreement with Lowe’s Canada HAZMAT: HAZMAT Hazmat Identification Vendors are responsible for identifying Hazardous products according to the codes provided in Appendix B Lowe’s will not deliver or store Level 3 or 4 items. These items must be delivered to Lowe’s Prepaid Direct to Stores MSDS sheets Required for ALL Lowe’s Canada items Canadian specific MSDS sheets must be submitted every 3 years Infotrac, Lowe's MSDS 200 N. Palmetto, Leesburg, FL 34748, USA. Rules for HAZMAT items are available on Loweslink ® : www.loweslink.com/llmain/pubdocuments/Hazmat_Products.pdf Questions regarding HAZMAT, should be directed to: [email protected] Electronic Article Surveillance - Source Tagging: Electronic Article Surveillance - Source Tagging What is Source Tagging? Disposable anti-theft labels Incorporated into merchandise according to pre-approved specification Lowe’s Canada has the same source tagging policy as Lowe’s US Product already approved for Lowe’s US will not require re-approval Source tagging policy can be found on Loweslink ® : www.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdf To determine if your products require source tagging: www.loweslink.com/llmain/pubdocuments/source_tagging_guidelines.pdf Electronic Article Surveillance - Certification: Electronic Article Surveillance - Certification To certify product new to Lowe’s that requires source tagging: Complete ADT / Sensormatic’s Product Submission Form For submission form contact Lisa Greer at: [email protected] Forward it, along with the item to be tested, to one of Sensormatic’s Certification Labs. The Lab will determine where the tag should be located & provide certification Certification is sent by ADT to Lowe’s EAS Source Tag Mgr for approval Finally, vendor submits a commitment form to Lowe’s Commitment form is available at: www.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdf Vendors will also receive commitment from via email from EAS team Vendors must fax commitment form to Fax # 1 704 757 6098 Source Tagging questions should be directed to: [email protected] Electronic Article Surveillance - Audits: Electronic Article Surveillance - Audits Weekly internal audits on committed source tagged SKU’s Minimal 85% source tag compliance requirement Failed Audits: Lowe’s will notify you if there are failed audits Items with failed audits will be rechecked 45 days later Failed second audits result in non compliance Recourse for non-compliance will be: Determined by Lowe’s Merchandising and Loss Prevention Mgmt Handled on a case-by-case basis Barcoding: Barcoding Lowe’s uses both UPC & I 2 of 5 bar codes at its stores and DC’s All items sold to Lowe’s must have valid bar codes Bar Code Issues: 60 day advance notice required for all bar code changes or additions Report problems with barcodes immediately to your Merchant Lowe’s Barcoding guidelines can be found on LowesLink ® : www.loweslink.com/llmain/pubdocuments/Bar_Coding_Header_page.pdf Barcoding – UPC’s: Barcoding – UPC’s Each sellable unit at Lowe’s stores requires a UPC label UPC’s must have legible numbers, scan bar, and description 100% scan rate is required on all UPC labels Vendors are expected to follow specifications set out by the uniform code council UPC Barcoding requirements can be found on Loweslink ®(2-7): http://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdf Barcoding – I 2 of 5’s: Barcoding – I 2 of 5’s Standard shipping containers must be labeled with I 2 of 5 codes A standard shipping container is anything greater than a selling unit and contains fixed multiples of the same item: Master cartons Bundles Inner packs Pallets 100% Scan rate is required Vendors must follow specifications set out by the uniform code council Only one standard ship unit per vendor, per item, will be accepted at our distribution center I2of5 Barcoding requirements can be found on Loweslink ® (Pg 8-12): http://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdf Cross Border Requirements Documentation: Cross Border Requirements Documentation The following documents are required to clear product across the US/Canada border: Commercial Invoice (Vendor) Canada Customs Invoice (Vendor) Packing List (Vendor) Bill of Lading (carrier) Manifest or Cargo Control Document (carrier) NAFTA Certificate (Vendor) See Appendix C for details on each document Please refer to Canada Border Services Agency for more details and qualification requirements at http://www.cbsa-asfc.gc.ca/ Cross Border Requirements: Cross Border Requirements HAZMAT: Lowe’s will not transport any Level 3 or 4 HAZMAT product Prepaid vendor shipments are required Controlled products: Must be identified to Lowe’s by the vendor Contact your SCA to determine proper channel for shipping Cross Border Requirements: Cross Border Requirements Prepaid Freight Vendor is the importer/exporter of record Vendor must ensure they: Properly classify product Obtain the appropriate governmental status & business numbers Provide appropriate documentation to accompany shipments Establish required brokerage services All costs are assumed to be imbedded in pre-paid pricing quotes Collect Freight Lowe’s Canada is the importer/exporter of record Vendor’s must ensure they: Share accurate item attributes with Lowe’s to assist in classification Establish appropriate paperwork to accompany shipments Lowe’s will establish required brokerage services No duty or brokerage costs should be imbedded in collect price quotes Cross Border Requirements: Cross Border Requirements Prepaid Vendor Checklist Lowe’s requires that prepaid vendors communicate when the required importing set-up tasks have been completed Checklist and detailed descriptions of each step are located in Appendix C All checklists are to be returned to your Supply Chain analyst in order to receive your first purchase order Lowe’s is providing this detail for information purposes only Vendors must work with an accredited broker to ensure they will satisfy all requirements to flow goods efficiently into Canada at start-up and beyond Refer to Appendix C for list of prepaid cross border shipment requirements Cross Border Requirements – HTS Classification: Cross Border Requirements – HTS Classification Lowe’s will be classifying all items shipping from the U.S. OTR via Freight Collect Ensure proper duty payment and satisfy Canada Customs compliance Vendors will receive information package and must follow up within 5 business days Item specific info will be requested to properly classify each item The material is time sensitive Accuracy is essential Lowe’s has contracted UPS-SCS for the classification process UPS-SCS may contact vendors for further information Vendor contact information will be shared with UPS-SCS For further questions, please email: [email protected] Vendor POP Signage : Vendor POP Signage All vendor signage/literature must be reviewed and approved by: Lowe’s Merchant Store Environment Lowe’s Visual Standards Guidelines (VSG) must be followed Centralized production (single source) of vendor signage ensures: Standardized substrates and consistency in color VSG experienced help on sign dimensions, layout and hardware Efficient labelling, packing, and delivery of all store signage in one shipment Full digital inventory of all signage in-store for future line reviews and merchant communications/planning Vendor POP Signage Process: Vendor POP Signage Process Step 1 Email pdfs and checklist of currently approved US signage which will be leveraged for Canada and new proposed signage to [email protected] This will allow Merchants and Store Environment to review and comment. Step 2 Upload working art files to http://lowes.leapfile.com/ Step 3 Project will be quoted to vendor before redesigning/printing begins Please contact [email protected] with any questions/direction regarding this process Phase 2: Scheduling and Shipping: Phase 2: Scheduling and Shipping Shipping Method Sample Process Shipping Requirements Pallets and Slip Sheets Packaging & Unitizing Labeling Scheduling Requirements Routing Guides Pickup and Delivery Appointments Routing Requirements Overview Small Parcel Determining Shipping Method: Determining Shipping Method Channel selected for start up is provided on Appendix H Collect Direct to Stores Collect to the DC Collect 1XD Collect VPXD Lowe’s may choose to switch channels as required or for special PO types Advance notice of channel changes will be provided by SCA Question regarding your channel can be forwarded to you SCA SOS PO’s are prepaid direct to store/customer, although exceptions may exist Freight method is determined by order size and product type ie TL, LTL, small parcel, van or flatbed Opportunities for improvement should be communicated to SCA Prepaid Direct to Stores Prepaid DC Prepaid 1XD Prepaid VPXD Sample Process: Sample Process Lowe’s may elect to sample new product in order to validate barcoding, packaging dimensions and weight Sample POs will be issued to vendors requesting shipment to our sample facilities in the US or Canada Sample Process Ship the full ship unit quantity of the item Securely attach sample placard to shipment Ship all samples prepaid to Lowe’s facility Product NOT to be returned should have “Free goods” on the packing list Vendors requiring samples to be returned require a return goods authorization # (RGA#) to be sent to your SCA prior to shipping the goods Do NOT issue an invoice for sample goods Further details on the sample process can be found in Appendix D Samples: Samples For US Ship From: Ship Samples to: Lowe’s Regional Distribution Center #960 711 Tomlin Mill Road Statesville, NC 28625 ATTN: Sample Dept. - Lowe’s Canada For CAN Ship From: Ship Samples to: RDC # 1415 Unit A 2750 Peddie Road Milton ON L9T 6Y9 ATTN: Sample Dept. -Lowe’s Canada Shipping Requirements –Pallets and Slip Sheets: Shipping Requirements – Pallets and Slip Sheets Specific pallet requirements are required at Lowe’s Requirements are based on destination of the product and the product type Requirements include pallet size and orientation, shrink wrap, slip sheet and product height requirements All specifications are outlined in Appendix E with contents to be added to Loweslink ® Store display pallet requirements are essential to ensure uniform presentation at the store DC pallet requirements are essential to ensure efficient handling and storage of your product at the distribution center Re-work required to address pallet non-compliance may be recovered from vendor if issues persist Lowe’s Canada will not participate in national pallet programs For more details, see Appendix E Packaging & Unitizing: Packaging & Unitizing Packaging requirements are intended to minimize damage and enhance stocking and appearance at the store Corrugate specifications Shrink wrap specifications Slip sheet specifications Corrugate access holes & tear away requirements Desiccant specifications Unitization requirements are intended to simplify the receiving process which will minimize OS&D claims and costs Trailer loading specifications Pallet tier and content specifications Master carton content specifications All specifications are outlined in Appendix E with contents to be added to Loweslink ® Labeling: Labeling Informational labeling is required on many types of product to ensure proper identification and priority handling. Product requiring special labeling includes: NEW STORE SAMPLES VPXD SOS Multi-Boxed Items All specifications are outlined in Appendix E with contents to be added to Loweslink ® Sample and New Store Placards are provided in Appendix F Scheduling RequirementsRouting Guides: Scheduling Requirements Routing Guides Lowe’s Canada will publish a routing guide that outlines: Core carriers for all LTL & small parcel shipments (US & Can) LTL carriers are assigned by shipping lane Receiving schedules at Stores & DC Vendors must ensure that core carriers are used for all LTL and Small Parcel Benefits include: Decreased dock congestion Improved cross border efficiencies and costs Improved receiving efficiencies Lowe’s routing guide will be available on LowesLink ® in mid April Pick-up & Delivery Appointments: Pick-up & Delivery Appointments Lowe’s Canada will require all deliveries to have receiving appointments at both the DC and Stores Some vendors may be invited to participate in a drop trailer program at our DC, however this will be limited Responsibilities for creating pick-up and delivery appointments is dependent on freight method for each given PO Routing Requirements Overview: Routing Requirements Overview Scheduling Requirements – Small Parcel: Scheduling Requirements – Small Parcel Small Parcel (ex. UPS, Fed Ex, Purolator) <250 Lbs <12 packages Not >150lbs in an individual package Not > 108" in length Small Parcel core carrier will be identified with Lowe’s routing guide update Phase 3: Post PO Receipt: Phase 3: Post PO Receipt Finance and Accounting Invoice Processing Ontario Exempt Certificate Discrepancy Resolution Payment Information Lowe’s Business Locations Electronic Funds Transfers (EFT) 852 POS report Vendor Performance Requirements Vendor Compliance Policy Communications Returns to Manufacturer (RTM) Vendor Buybacks Recalls Invoice Processing: Invoice Processing Invoices are required to be submitted via EDI One invoice per purchase order Invoice only for merchandise received Credit memos must reference Lowe’s store name, number and address, purchase order the original invoice that the credit is applied to provided on vendor’s letterhead Paper Invoices will be accepted and should be mailed to: Lowe’s Companies Canada, ULC Attn: Vendor Invoice Payment P.O. Box 1941 North Wilkesboro, NC 28659 Product must be received prior to payment being issued Discrepancy Resolution: Discrepancy Resolution Lowe’s will identify deductions and will email vendor to start process Deductions issued with payment when a pricing or quantity discrepancy is identified Vendor invoiced for full order but short shipped Deduction Dispute Process: Letter explaining why you disagree with the deduction Include the original deduction letter Include copy of purchase order, proof of delivery and bill of lading Send dispute package to: Lowe’s Companies Canada, ULC Attn: Vendor Invoice Payment P.O. Box 1941 North Wilkesboro, NC 28659 Payment Information: Payment Information Electronic Funds Transfer EFT – required method of payment Payments are generated Sunday through Thursday Good funds date is three days from payment release date Paper checks will not be issued Payments generated based on payment due date Invoice date plus vendor terms Invoice to Lowe’s Canada will be paid separately from Lowe’s US Invoice currency must match PO currency for all orders Currency agreements can be validated with your merchant SOS product must transact in Canadian Dollars Electronic Funds Transfer (EFT) Registration: Electronic Funds Transfer (EFT) Registration To Register: EFT registration instructions will be sent when EDI registration is complete Complete the EFT registration form A penny voucher will be sent to ensure account activation EFT Production Date will be communicated via email or phone For issues with EFT and for ongoing support, send requests to: [email protected] Lowe’s Business Locations: Lowe’s Business Locations Sold To: Lowe’s Companies Canada, ULC 5160 Yonge Street Suite 200, P.O. Box 25 North York, Ontario M2N 6L9 Payer Bill To: Lowe’s Companies Canada, ULC EPCA PO Box 1941 North Wilkesboro, NC 28697 Resale Tax ID #: Lowe’s GST Number: 843347741 RT0001 DC Ship To: DC# 1415 2750 Peddie Road, Unit A Milton, Ontario L9T 6Y9 Store Ship To: TBD as stores are opened Ontario Exempt Certificate: Ontario Exempt Certificate Certificate ensures vendors do NOT charge Lowe’s Canada PST on inventory used for resale Copy of the certificate is found in Appendix G 852 POS Report: 852 POS Report Vendor Dart /Dart Lite Application offered to Lowe’s US vendors currently Application will NOT be available for Lowe’s Canada vendors at startup 852 POS data available to share POS information Contains sales by item by store (daily, weekly, monthly) Requires EDI capabilities This report contains non-formatted data that will require manipulation To register: www.loweslink.com/llmain/pubdocuments/852FAQ.pdf Vendor Performance Requirements: Vendor Performance Requirements Purpose of Performance Requirements: Ensure smooth flow of product through the overall supply chain Ensure product availability to the end consumer Minimize total costs in order to offer lowest prices possible Lowe’s Vendors are required to operate above minimum standards Metrics important to Lowe’s Supply Chain are: On-time shipment Quantity fill rate Barcoding & Packaging Core Carrier Compliance Specific metrics are outlined in our vendor requirements document which be made available via email or Loweslink ® Vendor Compliance Policy: Vendor Compliance Policy Lowe’s will encourage vendors to meet performance requirements as outlined in the vendor compliance policy The policy outlines the following: Resolution process to resolve compliance issues Financial cost recovery for failed performance Canadian vs US Policy Compliance is tracked separately for the two businesses Policies differ slightly due to differences in business needs Lowe’s Canada Compliance Policy will be made available via email or Loweslink ® Vendor Compliance Communication: Vendor Compliance Communication 2 reports sent weekly to all vendors Shipment Performance Fill Rate History 3 reports sent only if compliance failures occurred Misrouted PO’s PO’s Shorted Late PO’s All other compliance communication will occur as required by Supply Chain Analyst Returns to Manufacturer (RTMs): Returns to Manufacturer (RTMs) The following options are available to Lowe’s Canada vendors for handling RTMs from Lowe’s stores and DC Option 1: Destroyed in field by store personnel or donated or marked down Store will bill vendor for full credit Option is not available for HAZMAT items Option 2: Returned to vendor via freight collect Store will bill vendor for full credit Shipper Number to be provided to all stores if returned via parcel carrier Notes: Return authorization requirement will result in 5% add on to each RTM Lowe’s CAN will not return goods to US location and vendor must arrange for freight pick up of goods from Lowe’s facility Vendor Buybacks: Vendor Buybacks Lowe’s Merchandising Return Agreement must be signed by both the vendor and the merchant Mandatory information: Return method (destroy, donate or collect) Return location Estimated value and payment method Items involved Authorization Timeframe Unique program tracking number is given to each buyback For more details on buybacks & RTMs refer to: www.loweslink.com/llmain/pubdocuments/Product_Returns.pdf Recalls: Recalls Vendors first contact Quality Assurance to begin the recall process Via Email: [email protected] Via Phone: 704.757.7472 Quality Assurance team will support vendor through recall process Vendor must inform the merchant that will be affected Legal implications of the recall process are outlined in Article 7 of MSBA Phase 4: Future Expectations: Phase 4: Future Expectations Vendor On-boarding Checklist Operating Requirements PO Backorders Item Substitutions Adding Items to Shipments (Not on PO) Expected Delays Business Alignment Discontinued Sku’s Price Changes Supply Chain Analyst Contact List Vendor On Boarding Checklist: Vendor On Boarding Checklist A checklist will be sent out to all vendors that summarizes the tasks required to complete prior to start Collect and Prepaid vendors will receive different checklists Checklist will help Lowe’s ensure vendors understand business requirements Operating Requirements: Operating Requirements PO Backorders Lowe’s does not accept back orders on Purchase Orders Product missing from original PO receipt will be treated as a shortage and subsequent shipments for that PO will be refused Item Substitutions Requires pre-approval from a Lowe’s Merchant and SCA Adding Items to shipments (not on PO) Requires pre-approval from SCA Non Stock Items will be returned via freight collect Expected Delays 30 Day notification to your SCA is required of any anticipated delays to avoid compliance failures Business Alignment: Business Alignment Discontinued SKUs Minimum 90 Day written notice to your merchant Vendor will agree to buy back discontinued inventory that was purchased within 60 days of discontinuation notice Lowe’s has 60 days to return goods to vendor at vendors cost Markdown monies accepted if agreed upon by both parties Price Changes 60 day written notice of any price increase Supply Chain Contact List: Supply Chain Contact List Product Flow Manager – Nick Malone [email protected] 416.730.7346 Building Products – Mike MacInnis [email protected] 416.730.7347 Building Products – David Shippen [email protected] 416.730.7357 Hard Lines – Shawn MacLeod [email protected] 416.730.7420 Home Decor – Aaron Krause [email protected] 416.730.7419 Home and Outdoor Living – Jennifer Weber [email protected] 416.730.7423 We’re educated!: We’re educated! Let’s work together towards a successful start up in Canada!