Orchard Supply Hardware

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Orchard Supply Hardware

Import Routing Guide

Revised: 2017

Table of Contents

Topic / Pages
Overview of International Shipping Transportation / 2-5
Booking / 6
Carton Marking, Labeling & Container Loading Requirements / 7-13
Document Requirements & UPS Contact Information / 14-28
Container Loading Requirements
(Consolidation & Non Consolidation Requirements) / 29-30
Air Freight & Shipment Samples / 31
Yellow highlighted sections indicates important revisions

Orchard Supplier – Import Routing Guide – Overview of International Shipping & Transportation

Overview

/ The Import Routing Guide provides shipping and transportation requirements for direct import shipments to Orchard.
Content includes
·  supplier’s booking to forwarder
·  shipping terms
·  product testing
·  carton marking
·  container loading
·  shipping document requirement
For additional resources regarding Orchard shipping requirements please refer to:
http://www.osh.com/SPGlobalSourcing
Please email any questions to:

/ ·  Prior to being issued an import Purchase Order (PO), the supplier will be responsible for submitting a completed Import Offer sheet (IOS) in an excel file format per merchandise item to the appropriate Global Sourcing Merchant.
Please use the current version of the IOS found at http://www.osh.com/SPGlobalSourcing
·  Orchard’s forwarder receives electronically transmitted PO details from Orchard and uses the PO information to verify import supplier booking.
·  Vendor is required to complete and return Orchard’s CTPAT vendor’s agreement, and supply a completed Factory Vulnerability Self-Assessment for each factory. Every factory must submit annually either new CTPAT Self-Assessment, or provide an acceptable third party CTPAT audit conducted within the previous 12 months.

Supplier Responsibility

/ The Supplier is responsible for:
·  Booking cargo timely: 21 days in advance of first shipping window date on PO. 28 days in advance of first shipping window date for priority hot shipments.
·  Resolving all order variances and changes prior to booking.
·  Scheduling Quality Assurance (QA) inspections at least 10 days prior to the “ship after date” on the purchase order. Orchard recommends scheduling QA inspections as early as possible- see Orchard QA Manual for details.
·  Notifying UPS when cargo will be ready.
·  Delivering cargo to the agreed upon location( Port or UPS CFS station) to ensure cargo sail by last ship date of PO shipping window
·  Providing Importer Security Filing(ISF) data to UPS 72 hours prior to estimated vessel departure(ETD)
·  Providing all required and complete shipping documentation to UPS within 3 calendar days of vessel departure
·  Complete all required export customs at origin.
·  Verified Gross Mass (VGM) form must be submitted to UPS prior to the carrier specific cutoff(refer to SOLAS compliance)

United Parcel Service (UPS) Services

/ United Parcel Service (UPS) is Orchard’s designated freight forwarder and supplier management provider. All commercial shipments must be booked in advance, and coordinated via UPS.
UPS will be responsible for:
·  Cargo booking
·  Document collection
·  Document verification: Data content and required documents
·  Document forwarding
·  ISF Filing
·  Consolidation

International Shipping Terms (INCOTERMS)

/ Orchard’s use of international shipping terms (such as FOB or FCA) are as per INCOTERMS 2010.
For specific definition of any trade term used by Orchard, refer to INCOTERMS 2010 (http://www.iccwbo.org/incoterms/).

Orchard’s Primary Term

/ ·  FOB (Free on Board): Supplier is responsible for delivering goods packaged and prepared for export, cleared through export Customs, and loaded onboard a vessel chosen by Orchard, at the named port on the Supplier’s side. This is Orchard’s default purchase term.
Supplier will be responsible for delivering goods to the port or consolidation point designated on Orchard’s PO, providing any required documentation, and ensuring that any required export customs clearances are completed.

Shipping Window

/ Last Ship date = Cargo must be on vessel and depart by Last Ship date.
Supplier must comply with, and ship as per the agreed upon terms of the Orchard PO. The PO indicates the “First Ship Date” and “Last Ship Date” (also called the “shipping window”).
The supplier must plan and coordinate with UPS to book with the cargo ready date (ship date) within the shipping window.

Cargo Ready

/ The Cargo Ready date is defined as the date the shipment has:
·  Current and compliant test report as approved by Orchard QA
·  Completed production.
·  Completed and passed Orchard’s required QA Pre-Shipment Inspection.
·  Cargo is physically ready to be loaded.

Product Testing and Pre-Shipment Inspection

/ Orchard is committed to providing quality merchandise to our customers.
·  To safeguard the quality of purchases and to ensure merchandise will meet our customer’s expectations; Orchard requires that all merchandise meet Federal, State and Local U.S. laws and regulations, as well as our expectations for product quality and packaging.
Important: For all items, Orchard reserves the right to ensure products are tested and inspected prior to shipment.
Supplier In-House Testing
·  Orchard recommends suppliers perform in-house product pre-testing prior to submitting product for testing at a third party test lab.
·  If failures or damages occur, most can be easily analyzed and fixed in-house within a short amount of time.
Third Party Testing
·  To ensure product testing covers Federal and California regulations, and industry requirements related to performance, reliability, quality and safety, product must be tested with an independent, accredited third party test lab.
·  Orchard strongly suggests that the Supplier submits test results at least 8 weeks prior to their scheduled ship date.
o  Doing so will allow for proper organization and implementation of testing and will help to avoid last minute issues and problems.
o  This will also guarantee that sufficient time is allotted to take corrective action for failed test results.

Pre-Shipment Inspection (PSI)

/ A Pre-Shipment Inspection (PSI) is required for all shipments prior to shipping.
Pre-shipment inspections are conducted by Orchard’s third party inspection company, CSA.
Supplier must contact CSA directly at to arrange inspection
The PSI will look at workmanship of the product to ensure it meets quality standards.
Inspections will also include but are not limited to review of:
Documentation for Federal and State Regulations, Industry Certifications, product and package quality, assessment of corresponding functional attributes, case count, and labeling.
The initial inspection will be paid by Orchard. If the inspection does not pass or requires corrective action, all subsequent inspections will be paid by Supplier.
For more information on Orchard’s QA testing program please refer to:
http://www.osh.com/SPGlobalSourcing

Lead time Overview (based on a 90 day lead time)

Booking Requirements

/ Orchard Supplier – Import Routing Guide – Booking
·  Suppliers are required to submit bookings 21 days in advance of the first date of the shipping window, by using UPS’ booking sheet (example below) 28 days prior to first ship date for priority hot shipments.
·  Booking requests are emailed to UPS and must include the following information.
1.  PO Number
2.  Total Number of Cartons per PO
3.  Total Number of CBMs by PO
4.  Total Number of Kilograms by PO
5.  Total Number of Cartons
6.  Total Number of CBMs
7.  Total Number of Kilograms
8.  Cargo Ready Date
·  Any booking or shipping questions should be directed to the local UPS contact listed in this guide.
·  Oakland is the destination port unless the Orchard PO specifies otherwise.


/ Orchard Supplier – Import Routing Guide – Carton Marking

Carton Marking Requirements

/ Orchard requires that all cartons and pallets be properly marked.
For questions regarding how to properly label or mark Orchard cartons email:

·  Carton markings are required on one side of each box only.
·  Each Carton marking must include:
o  Ship to name and address
o  P.O. number
o  SKU number
o  Item#- also called Stock item# or Suppliers model number or model number.
o  Quantity of sellable units in each carton
o  Country of origin of the items
o  GS1-128- also called SSCC-18 or UCC/EAN-128 Shipping Label
o  Content label
o  Note: If box contains of a set consisting of 1 sellable SKU, add Box numbers, such as Box 1 of 3 below the country of origin.
o  Inner packs should have model and quantity, and have a UCC-14 barcode.
/ Orchard Standard Carton Markings Example

Shipping Label Creation GS1-128

/ Shipping labels are used to provide Orchard with ship from, ship to and purchase order information for each shipping container.
Orchard’s shipping label guidelines are based on the general label specifications for use with GS1-128 (formally known as UCC/EAN-128 or SSCC-18) identification codes contained in the Application Standard for Shipping Container Codes (ANSI/UCC6-1996).
·  Use GS1-128 Shipping Labels
·  The GS1-128 label can be generated by the vendor through these EDI providers:
o  SPS Commerce- or
o  Liason- or
o  by any vendor selected third parties
·  GS1-128 can be either legal size(216x356 mm) or A4(210x297 mm)
·  For cartons 8 inches or more high- see chart below for label size
Size of paper / Mm / inch / size of each sticker
Legal size / 216 x 356 mm / 8.5 x 14 inch / 4.25 x 7 inch
A4 size / 210 x 297 mm / 8.3 x 11.7 inch / 4.15 x 5.85 inch
·  When the package is less than 8 inches high, use the 3 inch high by 8-inch wide format.

Shipping Label GS1-128 general information

/ Contact SPS or Liason directly for assistance in generating the GS1-128
Shipping Label Example
/ Shipping Label Content
1.  Legible Ship From name and address.
2.  Legible Ship To name, unit number and address.
3.  Legible PO#
·  Use a minimum 24-point type size (0.33 inch high).
·  Precede PO# with the text PO.
·  List no more than five POs for the same department on a single shipping label.
·  PO# content included(old content- being phased out):
o  First four#: Ship To location
o  Next Two#: Dept. Number
o  Next Four#: PO#
o  Final Two#: Check Digits for internal use
4.  NEW: Starting December 2016 Orchard purchase orders no longer use the 1570-xx-xxxx-xx format- the new Orchard P.O. Format starts with 1570 followed by 8 digits 1570XXXXXXXX
·  Example P.O. 157000000154
·  Department number is not used for new purchase orders
·  Department number is no longer required on the shipping label.
·  P.O.’s created prior to 12/12/16 will still have the old 1570-xx-xxxx-xx format- but will not require the department number on the label or the ASN
5.  SSCC-18 Barcode (GS1-128 Serial Shipping Container Code)
·  The barcode height must be 1.25 inches.
·  Print legible number above the barcode.
o  The barcode must meet the quality standards specified in ANSI X3.182-Bar Code Print Quality Guideline.
o  To insure 100% first time rate on all barcodes, test the symbols periodically as print quality can change over time.
·  Precede SSCC-18 code with the application identifier “00”.
·  Enclose the Application Identifier (AI) in parentheses.
Barcode Symbol Identifiers
There are 24 characters in total encoded in the SSCC-18 Serial Shipping Container Code. Included are both symbol (machine readable) and data (human readable) characters.
·  There are four symbol characters present in the SSCC-18 symbol, which include the combination START character and the FNCI character, the MOD 103 check character and the STOP character.
·  The remaining 20 data characters are human readable and required for automatic identification of serialized shipping containers.
o  These 20 characters include the Application Identifier (AI) followed by the SSCC-18 code.
o  The human readable interpretation of the AI should be separated from the remainder of the symbol data by use of parentheses.
o  Transmit the 20 data characters in the associated EDI 856-Ship Notice transaction.

Barcode Details

GS1-128 3” x 8” Label Example

Shipping Label Placement / Place GS1-128 shipping label as required below
Cartons / Placement
Place label on the bottom right corner of the long side of the carton.
·  The label should be at least 2 inches from both the right edge and bottom edge of the shipping carton to prevent damage of the bar code due to edge crush.
·  Position the label parallel to bottom edge of the carton.
·  The label should NOT wrinkle during application.
·  The brand identity should NOT be compromised
·  For color retail shipping cartons, which will be on display in stores, carton markings and labels should be placed on the bottom of the shipping cartons. Don’t cover the colored artwork of the carton.
·  For cartons over 39” tall, Place the bottom of the shipping label within a range of 20-30 inches above the natural bottom of the transport package
Pallets / Place the shipping label to the right of center of a vertical face, allowing a minimum of 2 inches from the edge.
·  Place the label in the upper one-half and not more than 60 inches from the bottom of the pallet.
Place the label on the upper right hand corner on the side of the pallet that the forks would enter.
Content ID Label (UCC-14) / Orchard requires a carton level identification at the point of receipt. A carton is defined as any single SKU, carton, or pallet with an outer wrapping and containing a quantity greater than one. Inner packs (cartons) should have a UCC-14 barcode.
Content ID label must be either UCC-14 or ITF-14 or GS1-128 barcode formats.
·  Create content identification labels for every master carton with more than one item in the carton.
·  Barcode label- there are three methods of generating barcodes that are acceptable:
1.  Factory/vendor generated
2.  Third Party generated:
o  SPS Commerce or Liason are two Orchard designated Third Party EDI providers that can generate labels- vendors can use their own EDI providers.
o  Label Generation:
When the purchase order is transmitted by Orchard via EDI to the vendor, the 14 digit bar code number is included.