Coppel Guide for Vendors

INDEX

COPPEL GUIDE FOR VENDORS

I. ARTICLES

I. Samples

II. Labels for Official Mexican Standards (NOM)

III. Care Labels

IV. Price Labels

V. Hangers

VI. Clothing Photographs

VII. Credits

II. PACKAGING

I. Packaging of Merchandise

II. Carton Measurments

III. Carton Label Information

III. PURCHASE ORDER

I. Origin of Purchase Order

II. Proforma Invoice

III. Documentes for Freight Confirmation-Shipment

IV. CLOTHING DOCUMENTS

I. Invoice

II. Packing List

III. Bill of Lading

III.I. Master

III.II. House

IV. Certificate of Origin

V. Letter of Authorization-Free Sale

V. SHIPMENT OF GOODS

I. Carrier

II. Freight Bill

III. China-Shenzhen

IV. Ports of Entry

IV.I. Long Beach, USA

IV.II. Lázaro Cárdenas, MX & Veracruz, MX

VI. GLOSSARY

I. ARTICLES

I. SAMPLES

Coppel considers a sample an article that is evaluated for study, and based on that, it is decided whether or not it is a viable purchase for the sale to Coppel customers.

Samples may be acquired through different means:

·  Provided directly to the Buyer at a business meeting with the Supplier.

·  Aquired at an exhibition or a market, by our Purchasing department.

·  Sent by the Supplier, via courier, directly to our Purchasing offices.

The Supplier must provide Coppel the necessary samples to perform the classifying, grading laboratory analysis and verification of goods for delivery. The number of samples will be defined in negotiations between Buyer and Supplier.

The types of samples used are:

Selection: The sample taken by the Buyer for the development of the garment or footwear.

Pre-Production: The sample provided by the Supplier to the Buyer in order to compare with the Selection sample, and decide whether the quality and fit are similiar.

II. OFFICIAL MEXICAN STANDARDS-(NORMA OFICIAL MEXICANA or “NOM”)

The NOM's (Normas Oficiales Mexicanas) are regulations and legal restrictions that are issued by the Ministry of Economy in Mexico, to give structure and support to certain operations, and technical aspects or elements that are necessary for commercial and industrial activities of Mexicans. In the case of NOM, it describes the rules that are mandatory for use, handling, description, maintenance, and product safety of goods.

The NOM is determind by a classification. At the time the goods have been classified, the assigned tariff code and the NOM that should be applied are provided to Coppel. Coppel then develops a prototype care label, using the classification as a guide and provides the supplier with the label. This label is then used as an example and the labeling of the products is initiated.

This is the one of the sections of the NOM's that applies to our Purchasing Department:

·  ANCE (Association, Standardization, and Certification ): Certification of electrical appliances, toys, or electronics, is necessary when an electronic will be imported. To gain certficiation laboratory tests are performed on the product. Once the article complies with the standards for its import a ANCE certificate is provided for said product.

III. CARE LABELS

The Care label is that which the Supplier must add to the product during the manufacturing process. This label is unique to eac product and model. Coppel designs the prototype label with all necessary information, which for legal reasons should not be omitted by the Supplier.

Coppel's Traffic department will provide the necessary information to the Supplier of goods with the intention that the Supplier print and add the labels to the products. Contact between the Traffic department and the Supplier will be through the Buyer

Necessary Information for the Care Label:

·  Importer: Name of the company acquiring the product.

·  Address of Importer: Address of the company that made the purchase.

·  Exporter: Name of product provider.(ESTE DATO YA NO ES NECESARIO, FAVOR DE ANALIZAR)

·  Brand: Graphical representation that distinguishes the product in the market.

·  Model: Name which is used to recognize the product in the market

·  Composition of the article: These are the compounds that form the goods, such as fibers and percentages that make up the article.

·  Care Instructions: These are the washing and drying recommendations made by the Supplier, in order to maintain the product in optimal conditions

·  Country of Origin: Specifies the country where the product was manufactured.

Note: The measurments of the label should be (3x2”), in case of any questions or comments contact the Buyer, since under no circumstances should goods be sent with labels not previously authorized by Coppel.

IV. PRICE LABELS

Coppel is a growing company which due to its size and dynamic growth, requires the acceleration of logistic processes, which will bring the product to the point of sale in a timely manner. For this reason Coppel asks its suppliers to print and place price tags on garments or products on a mandatory basis. This process significantly speeds up the logistics to get products into stores.

Coppel provides the necessary information and training so that the Supplier is able to print and correctly position the Price labels onto the products. To achieve this the Supplier must have direct communication with Coppel via the Purchasing department, who will be responsible for advising the Supplier and providing further information. The Buyer will verify and approve the Suppliers prototype Price label, once they ensure that it meets with the quality, size, and information required of a price tag for items offered in Coppel stores.

V. HANGERS

Currently, all Suppliers for Coppel deliver their goods along with hangers. Below are hangers required by Coppel. It is important to mention that each Buyer must negotiate with it's Supplier as to which hanger is most appropriate and functional for the type of merchandise being purchased and how the cost of the hanger will be included into the final price of the article.

The hanger styles and quantities offered by the company Mainette Group (www.aehangers.com), are consistent with those handled by Coppel. However, these can be purchased with any provider that meets the sepcifications described below.

The recommended hangers:

1)  MEN

·  (Clothing: medium /heavy)

·  (Clothng; light)

·  (Clothing; lower garments)

2)  LADIES

·  (Clothing; medium / heavy)

·  (Clothing; light)

·  (Clothing; lower garments)

·  (Clothing; lingerie).

3)  BOYS

·  (Clothing; light)

·  (Clothing; lower garments)

4)  GIRLS

·  (Clothing; light)

·  (Clothing; lower garments)

5)  BABIES

6)  (Clothing; Hanger for combined garments)

·  (Clothing; lower garments)

VI. CLOTHING PHOTOGRAPHS

To ensure that there is a clear understanding with our Supplier we find that it is necessary to have photographs of the items required or requested for purchase. This is to avoid errors or misunderstandings at the time the purchase orders are generated and assures that what was negotiated between Supplier and Buyer is clearly visible. The photographs should be sent as a (JPG) image in attachments.

The purpose of taking the photographs of the articles, is to maintain an agreeable relationship and successful communication with the Supplier. As mentioned earlier, this avoids errors and misunderstandings between the Supplier and Coppel.

Toys

The requirements for the photographs of toys are the following:

·  Photograph of the name or brand of product.

·  Complete photograph of the toy.

·  In the case where a toy counts with accessories, photographs of the accessories should be taken seperately, and also jointly with the toy.

Footwear

The requirements for the photographs of footwear are the following:

·  Photographs of the shoe from different angles (tip, heel, left and right side).

·  Photographs of the sole, cut, and lining.

·  Photographs of the name and brand of the shoe

·  Photographs of the label inside the shoe, where you find the brand, care instructions, measurments, and country of origin.

·  Photographs that feature the characteristics of the article (if it is a closed shoe or has laces, the style of the shoe, the color, seams, etc.).

Perfumes and Cosmetics

The requirement of photographs of perfumes are:

·  Photograph the name or brand of product.

·  Complete photograph of the product.

·  In situations where the article counts with accessories( i.e. case), take photographs of each and every item included in the case or package, as well as all items together.

·  Photograph the characteristics of the item (color, size, shape, etc.).

Pants

The requirements for photographs of pants (men or womens) are:

·  Photograph the brand of the pant.

·  Photograph the style fo the pant.

·  Photograph the required or negotiated colors.

·  Photograph the care instructions.

·  In situations where the pant counts with an accessory, photograph the items seperately and then together with the pant.

Shirts, Jerseys, Blouses, Sweaters, etc.

The requirements for photographs of shirts, jerseys, blouses, sweaters, etc.. are the following:

·  Photograph the brand or name of the article.

·  Complete photograph of the article.

·  In situations where the article counts with an accessories, photographs must be taken of all items seperately and then together with the article.

·  Photograph the style, color, and characteristics of the article.

·  Photograph the care instructions (may include symbols and/or legends).

Clothing Apparel

The requirements for photographs of clothing apparel ( i.e. coats, jackets, bags, purses gloves, belts, backpacks), are the following:

·  Photograph the name or brand of the article.

·  Complete photograph of the article.

·  In situations where the article counts with accessories, photographs must be taken of the of the items seperately and and then together with the article.

·  Supplier must photograph the exterior of the article and the lining.

Ladies and Men Undergarments

The requirements for photographs of ladies and men undergarments are the following:

·  Photograph the name or brand of the article.

·  Complete photograph of the article.

·  In situations where the article counts with accessories, photographs must be taken of the of the items seperately and and then together with the article.

·  Photograph the number of items included in the package.

·  Photograph the style, color, and characteristics of the articles.

VII. CREDIT

Coppel generates this document and provides it to the Supplier with the purpose of attributing it to a monetary amount. Coppel applies credits to a negotiated amount when the Supplier fails to perform the work previously established. For example, at the time the merchandise arrives to Coppel warehouse and it is subject to inspection, if during these inspections we find an irregularity, such as a shortage, damaged goods, or mislabeled items, the warehous staff informs the Buyer who then fills out the Charge Back Notification format and sends it to the Supplier. If the product is considered a basic purchase, the charge will be applied to the next purchase orders, however if it is a single purchase, the Accounting department will contact the Supplier to request payment.

The following are some reasons why we apply credits:

·  Discontinued merchandise.

·  Delay of goods..

·  When merchandise does not mean with NOM requirements.

·  When the merchandise does not include Price labels.

CREDIT EXAMPLE

II. PACKAGING

I. PACKAGING OF THE MERCHANDISE

In this section Coppel explains that it is necessary to comply with some guidelines for the packing of goods and thereby preventing any damage caused to said goods. This is in an attempt to prevent any complaints from our warehouses after receiving the goods and having to apply credits. In order to achieve the optimal management of goods and logistics, the Purchasing department will indicate the number of articles per carton that should be packed. It is essential that goods be packed in a uniform manner, in packages of the same size, without any variations. It is necessary that each box or carton contain the same quantity of produces, and particularly the same model (same size, same color). This prevents the need to repackage the merchandise and facilitates the logistics aspect.

With the Supplier confirmation that the goods have been packed as Coppel specified, the distribution of the merchandise and sales will become easier.

II. CARTON MEASURMENTS

The cartons must be labeled consistently and appropriately. The information stated must be similar in all cartons: this is to say, in the same location and side of the carton. We also require that the carton information include the three measurments (length, width, and heigh) of the carton. This is in order to have better control with the distribution, storage, arrangement, and transportation of goods.

NOTE: The maximum weight established for each carton should not exceed 12 kilograms, making it necessary for your merchandise, by weight and measurements, be functional for the handling of the goods.

III. CARTON INFORMATION

This section refers to information that must be on the carton in which the Supplier sends the goods to Coppel, for distribution and logistics purposes we require that they include the following details:

A).- Style number of the articles.

B).- Purchase Order number

C).- Quantity of pieces in the carton.

D).- Number of carton from the total cartons

E).- Color

F).- Size

G).- Destination of carton (based on the destination indicated in the Purchase Order)

It is very important to include all numbers and letters of the Purchase order on the carton, these numbers detail information that is necessary in the logistics and distribution of goods.

III. PURCHASE ORDER

I. PURCHASE ORDER (P.O.)

The purchase order is generated by a system based on the sales projection established by the Buyer.
The system generates a sales projection every 28 days. With the information provided by the system, the Buyer forms the sales projection and the purchase order is generated. Suppliers can be from anywhere in the world, based on the the terms agreed, the Supplier ships the goods or Coppel organizes the freight of the goods, this includes transit time and the arrival of the merchandise.
Once the Purchase Orders have been generated, the Supplier shall promptly confirm and send the Proforma Invoice which must detail the goods being sent. The purchase order can be used to verify the details of the merchandise, approve quantities, plan the arrival of goods, and verify dates.

The Purchase Order must detail the following: