Micron Technology Inc.
Hub Standard Operating Procedures
ModifiedSunday, January 20, 2019
Table of Contents
Purpose
Definitions and Acronyms
Receiving
Process flowchart
Shipping Documents and Labels
Commercial Invoice
Packing List
Mailing Label
3S Label
Inner Box
Advance Ship Notification (ASN)
Damaged Shipments
Timeline
B2B connectivity
Storage
Stock discrepancies
Cycle Count
Physical Stock and Site Visits
Outbound
Process flowchart
First In First Out
Timeline & Cut off Times
Pull Request information
Shipment Addresses
Advance Ship Notification (ASN)
Labeling Requirements
Shipping Documents
Inco Term
Forwarder/Carrier (if applicable)
B2B connectivity
Urgent orders/weekend/overtime requests
Reports
Inventory Report
Shipping Report
Receiving Report
Return from Hub
Invoices and Fees
Invoice Details and Requirements:
Operating Hours
Standard
Holidays
Purpose
The purpose of this Hub Standard Operating Procedure is to outline the processes and operations expected to be performed for management of a hub containing Micron owned inventory stockpile(s).
Definitions and Acronyms
Master container box (MCB):The outer cartons used to pack the inner boxes containing the contents of a delivery. Each MCB will contain one or more inner box.
Inner Box: The box used to pack the products or goods. This box should not be opened at any time.
CPN: Customer Part Number – The part number a specific customer uses to distinguish product. May be different from the Micron Part Number
Contract Manufacturer (CM): A company (or companies) contracted by a company (in this case the customer) to perform manufacturing services for products.
Delivery Note (DN): A number used to identify all of the items shipped under a specific sales order
FIFO (First in First Out): Order for decrementing stock from the consignment warehouse
MPN: Micron Part Number or Marketing Part Number
Receiving
Process flowchart
Shipping Documents and Labels
All deliveries will ship with the following documents and labels
Commercial Invoice
The commercial invoice will contain the following information:
- Seller (e.g. Micron Semiconductor Asia Pte. Ltd.)
- Bill To specifies the customer for which the products are consigned for
- Delivery Note No (416659049)
- Micron Part No (MT18JSP51272AZ-1G6K1)
- Customer Part No. (SAMPLECPN)
- Total No. of Packages (5)
- Quantity (500)
Packing List
The packing list is placed in a plastic envelope on only the first master container box of the delivery (i.e. the master container box number with combination of delivery number + “A1”, e.g. 416659049A1). This document lists the products, quantity, weight and dimensions. It also includes the ship method, inco terms, and country of origin.
Mailing Label
This label includes the ship to and the ship from addresses. One of these labels is placed on each MCB.
3S Label
The 3S label is placed on each MCB. It provides information about the contents of a shipment in barcode format. When receiving in shipments, scanning the (3S) PKG ID (package ID) barcode on this label will receive the full quantity (including all inner box quantities) of the MCB.
Inner Box
The below label is attatched to each box that a batch of product is stored and shipped in. This label is used to track and process the product. The format of this label may vary depending on which type of product is stored in it; component, module or imaging product. The below example is for a module.
In order to receive product under the inner box number, scan the barcode in the upper lefthand corner. This is the batch ID number. You do not have to scan this label if the 3S Label barcode for the MCB in which the inner box was contained has already been scanned.
The inner box also contains the following information
- Country of Orgin
- Quantity of part contained within the box
- Date Code
- MPN
- Product Type
- Material Number
- Fab Facility
Advance Ship Notification (ASN)
Micron is able to send an ASN via EDI or as an automated e-mail if needed.
ASN (if needed) will include the following information:
Damaged Shipments
All boxes are to be visually inspected for damage upon receipt. Damage includes but is not limited to tears, dents, crushed corners, water damage, etc.
If damage is found, notify Micron immediately of damaged product found upon receiving and include photos of the damage. Continue receiving the product, however put “on hold” or “quarantined”(reference inventory reports) and segregate from available inventory until you receive further direction from Micron.
Micron will advise either for return of product, or further action to be taken which may include:
- Opening the outer box to visually inspect the inner boxes for damage.
- File claim with carrier
[More specific information and process flow pertaining to damaged shipments process may be entered]
Timeline
Shipments delivered to the hub warehouse should be processed within 4 hours from physical receipt.
B2B connectivity
All receipts should be communicated via HITS or EDI (whichever is applicable) within four (4) hours of the product being physically received. For EDI communications being sent once daily, all product physically delivered more than four hours prior to EDI signal sending should be communicated via EDI same day, otherwise they should be communicated no later than the next day.
Storage
[Enter reference to storage in contractual agreement if applicable.]
Stock discrepancies
If, during the course of business, Micron discovers a discrepancy between inventory quantities being provided by the warehouse and what exists in Micron system. Micron may ask Provider to help investigate the discrepancy. In order to investigate, Micron may ask for any of the following information to be provided in a timely manner:
Stock in/out report on a carton or box basis
Stock out report with carton number and customer PO reference
Physical count if needed to reconcile with system
Efficient and effective collaboration is expected from provider to help resolve any stock discrepancies that may exist.
Cycle Count
[TBD, please enter policy relating to cycle count (if applicable)]
Physical Stock and Site Visits
[Insert references to contract if applicable]
Outbound
Process flowchart
First In First Out
Product should be pulled from stock on a first in first out basis.
Timeline & Cut off Times
[Provider to state target estimated timeline for completing above pull process.]
[Provider to provide cut of times to receive pull notice to accomplish same day delivery.]
Pull Request information
The following information will be provided on a pull request:
- Requested Delivery Date
- Supplier
- CPN
- Quantity
- Ship to location Name
- Ship to location address
- Receiver
- Telephone
Shipment Addresses
[To be inserted here
Advance Ship Notification (ASN)
[If required, provider to send an ASN to receiver.]
Labeling Requirements
If bulk boxes are broken in order to ship quantity specified for the pull, or if the outer carton is damaged, product inner boxes will need to be repacked in a new outer carton and relabeled according to the following specifications:
[Insert relabeling requirements if applicable]
Shipping Documents
[Please provide an example of the shipping documents that will be provided with shipments out of the hub]
Micron commercial invoice and packing list template below:
Inco Term
[To be inserted here]
Forwarder/Carrier (if applicable)
[Specify forwarder or carrier if applicable]
B2B connectivity
All pulls should be communicated via HITS or EDI (whichever is applicable) prior to the product being physically shipped. For EDI communications being sent once daily, all pulls should be communicated the same day the product is physically shipped.
Urgent orders/weekend/overtime requests
Micron may request special service including but not limited to urgent shipments, weekend scope of work, or request for overtime etc.
[Please provide information regarding these value added services here]
Reports
Daily inventory, shipping and receiving reports should be generated daily by system and sent to specified Micron and customer e-mail distribution groups or users at a determined time. The reports should include the following information at minimum:
Inventory Report
Micron Part Number
Customer Part Number
Total Quantity
Available Quantity
Hold Quantity
Shipping Report
Quantity
Micron Part number
Customer part Number
PO number from customer associated with the shipment
Pull date
Receiving Report
Quantity received
Package ID and or Delivery #
Micron Part Number
Customer Part Number
Waybill
Receive date
Return from Hub
Micron may at any time, for any reason ask for product to be returned to Micron from the hub stockpile. Micron contact will request the hub:
- Select the appropriate part number quantity and or boxes to be returned
- If for a HITS hub, scan the boxes to a “TOMICRON” status
- Send all boxes to be returned to the address given by the Micron contact with ATTN: RMA Clerks RMA#______.
- Ship boxes within 24 to 48 hours of receiving the return request.
- Send the waybill # for the return back to the Micron contact for reference.
Invoices and Fees
Invoice Details and Requirements:
All invoices should include:
- The company name and address to be payed
- The Micron entity who will be paying
- A description of the services (e.g. hub/ warehousing fees) and identification of which customer the charges are for
- Breakout of the charges by category (e.g. inbound, outbound, tax, etc.)
- Attached details of all charges listing line items (e.g. shipments in/out of the hub by delivery or carton ID, customs fees per delivery, or trucking per delivery, etc.)
- Agreed upon payment terms per contract
All charges should be billed in USD$
Charges should be billed monthly
For quickest processing e-mail a soft copy of invoice and attached charge details to
Operating Hours
Standard
[Insert warehouse provider’s standard operating hours]
Holidays
[Insert warehouse provider’s differing hours of operation (or closures) during holidays.]
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