3/21/11 Marcia Jackson-Finn DRAFT

2001 Bryan Street Suite 2700 Dallas, Texas 75201 (214) 820-2405 www.BaylorHealth.com

Baylor Health Care System (“BHCS”) Company Store

Marketing and Supply Chain Management Policy and Procedures

DRAFT as of 3/21/2011

Boundless Network Inc. (“BN”) is the BHCS preferred supplier for providing promotional products, including print collateral, premiums, and other BHCS-branded and or co-branded products (“Products”). In consideration of this “preferred” contractual status, BN will build and host an online company store for BHCS (See Exhibit A). Below are unique accommodations to facilitate BHCS requisitioning and purchasing from BN. All procedures were developed in cooperation with Marketing,Supply Chain Management and customer stakeholders to encourage stewardship and appropriate use of the BHCS Company Store. All procedures are developed in compliance with departmental policies/procedures as listed below.

Please refer to myBaylor/Support Services/Supply Chain Management/Policies and Procedures:

Corporate Procurement Overarching Policy (#SCMPUR102.0) for overarching requirements related to all product procurement.

Receiving Process (#SCMMMM109.0) for overarching receiving processes.

Products Returns To Vendor For Credit (#SCMMMM102.0) for overarching returned goods process.

I. Definitions

a. Requestor – This is an individual within a BHCS department that has been authorized by management to requisition promotional products on behalf of their facility and cost center.

b. Approver – This is an individual with management authority to approve requests made by the Requestor.

c. Buyer – This is an individual within the BHCS Supply Chain Management - Corporate Procurement area authorized to issue and/or change BHCS purchase orders.

d. SCM – BHCS Supply Chain Management Department e. Store – BHCS Company Store f. MMIS – Supply Chain Management Informatics team g. Receiving – Supply Chain Management Operational staff responsible for receiving

packages at the facility docks and delivering them to internal locations.

II. Security a. BN will maintain a secured portal to the Store. b. To obtain access to the Store, a Requestor must:

i. Be approved by appropriate BHCS director(s) and vice president(s to requisition products on their behalf and their cost centers.

ii. Be able to maintain a unique password on the store site. This password should not be shared with any other person.

c. To establish an individual as an authorized Requestor, the followings steps must be followed:

i. The Requestor should complete a “Baylor Online Company Store Internet Ordering Setup Form” request form. (see Exhibit B – “Baylor Online Company Store) and forward the form to their director or vice president for processing.

ii. The Requestor’s director/vice president must: 1. Request and authorize the Requestor access to Lawson RSS

through myID (see myBaylor homepage). 2. Authorize and forward the the “Baylor Online Company Store Internet

Ordering Setup Form” request form to MMIS. iii. MMIS will facilitate both the Lawson RSS set up completion and the store set

up. MMIS will place all data in the appropriate BN format. (Any requested changes to this form will be mutually agreed to by SCM Contracting, SCM MMIS and BN.) MMIS will forward all appropriate information to BN when ready and complete. MMIS will process these requests, on average, in three working days.

iv. BN will send an email to the Requestor to inform them that their initial setup has been completed and will provide the Requestor generic password.

v. MMIS will provide the user RSS training. BN personnel will provide store training as needed.

vi. The Requestor should login to the store and change the password when they first enter the store.

vii. Any questions regarding the security process should be directed to MMIS at MMIS@baylorhealth.edu or 214-820-1995.

d. MMIS will periodically audit the BN access list and ensure it is in compliance with this procedure and BIS security related procedures.

e. In future stages, the BN store will include requisitioning approval for store orders. This will be accomplished after the initial “go live” processes.

f. If the Requestor or their department changes physical location, this information must be forwarded to MMIS to ensure accurate deliveries.

III. Store Requisitioning

a. All orders for promotional products will be expensed against Expense Code 716020 “Promotional Products.”

b. BN will provide for two methods of requisitioning for Requestors: i. Online Store Products ii. Special Quotes

c. Online Store Products are the pre-selected items available in the store. i. The Requestor can access the store by going to myBaylor, Quick Links,

BHCS Company Store (See Exhibit A). The Requestor will create an order using “shopping cart” methodology.

ii. BN receives the order and produces a unique confirmation order number. This number should be used for all future communication regarding that specific order.

iii. BN personnel will acquire proof approval from Requestor (See IV. SPECIAL NOTE).

iv. BN will verify and ship the order. v. The order will be delivered to the appropriate BHCS dock. The packing slip

and external box identification will contain: 1. The BN confirmation order number, 2. Requestor Name, and 3. Requestor Building, Floor, Department Name.

vi. BHCS Receiving personnel will deliver the product to the Requestor in accordance with the SCM Receiving Non-PO delivery process (See “Receiving Process” procedure.)

vii. Requestor will verify receipt against their original order. viii. Requestor will resolve all discrepancies with BN. Discrepancies should also

be reported to Financial Service – Accounts Payable. ix. BN will create a monthly summary billing for all store orders and invoice in the

format agreed to with Financial Services and Procurement. This documentation will be sent to Financial Services – Accounts Payable.

x. Financial Services will pay the invoice and will allocate the expenses as noted on the summary billing.

xi. Copies of the monthly summary billing reports will also be provided to SCM Contracting, Operations, and Procurement.

d. Special Quotes are for Products that are not on the Online Store. i. BN will create a location within the portal to initiate a request for Special Quote

assistance. ii. The Requestor will request a quote. iii. BN personnel will contact the Requestor and assist with specifications and

Product solutions. iv. BN will return a Special Quote to the Requestor. The Special Quote format

will mirror the RSS requisition requirements for ease of data entry. v. The Requestor will login into Lawson RSS and complete the requisition on

line. vi. The requisition will then present to the Buyer for purchase order (“PO”)

placement. The Buyer will issue the PO to BN. vii. BN personnel will acquire proof approval from Requestor (See IV SPECIAL

NOTE). viii. BN will confirm the PO within 24 hours of receipt to BOTH the Buyer and the

Requestor. ix. The order will be delivered to the appropriate BHCS dock. The packing slip

and external box identification must contain the Purchase Order number. x. Receiving will follow SCM procedures for receiving and deliver the product to

the Requestor. xi. BN will issue an invoice for the purchase order and send to Financial

Services – Accounts Payable. xii. Financial Services will match the invoice to the PO and receiving. All

discrepancies will be resolved by SCM personnel.

IV. * SPECIAL NOTE* Promotional orders are considered “custom” product. As such, the Requestor will be asked by BN to approve a “proof” before the product moves into production. If the Requestor has signed off on the proof, further changes to the order will not be accepted. Please see section below related to change order processing.

V. Order Changes Requests – Every effort should be made by the Requestor and BN to confirm the design and quantities before the order is processed. It is recognized that additions, changes and expediting may be required. a. Before order confirmation – All changes can be made directly between the Requestor

and BN until the order confirmation number has been issued. b. After order confirmation – If a change is requested after the order has been confirmed,

it may be better to delete the original order and create a new requisition for the additional amounts or new product designs. This will keep the original order clean for processing. The Requestor must contact:

i. BN representatives directly for “Online Store Product” orders. ii. The BHCS Procurement Buyer for “Special Quote” purchase orders. Buyers

are the only individuals authorized to make changes to BHCS purchase orders.

c. After proof approval – No changes can be made after proof approval. The Requestor has made a financial commitment to BN at this stage.

VI. Procurement a. Corporate Procurement Customer Service - “SCOPES” is available at 214-820-2405

or via email at “SCOPES Request”. A Requestor may contact Procurement at any time to review the progress of an order or request further assistance. A Requestor may have the request escalated by asking to speak with the Corporate Procurement Director or Manager. If the Requestor has their RSS number or PO number for reference, the Customer Service team can quickly connect to the appropriate Buyer for assistance.

VII. Receiving a. If the Requestor offices at Bryan Tower, the orders must be delivered to the Baylor

Distribution Center, 8757 Autobahn Rd., Dallas, TX 75237. Receiving staff will ensure the products are delivered promptly to the Bryan Tower.

b. In the event, the Requestor would like delivery of product to a non-BHCS location, then the “ship to” information must be provided to BN and Procurement at the time of the order. Both BN and Procurement will need a complete shipping address and reason for delivery to a non-BHCS location. The Requestor accepts complete responsibility for BHCS receiving and coordinating the receipt paperwork with their appropriate SCM Receiving area.

c. All non-PO orders will follow steps outlined in the Receiving Process. d. If a BN representative is hand delivering product to a Requestor for a purchase order-

based order, they must acquire a receipt signature and provide this to the appropriate Receiving department.

VIII. Invoicing a. All invoices, regardless of processing type will be sent to Financial Services - Accounts

Payable, 3500 Gaston Avenue, Dallas, TX 75246. b. Invoice payment terms are Net 30. c. BN acknowledges that if the appropriate order identification is not incorporated onto the

packing slips or the invoices, there may be a delay in payment. d. Tax will NOT be calculated in the Store but WILL be added to the invoice for those

facilities that are taxable. e. Boundless will use their own shipping number and include shipping costs on final

invoices. Shipping will be calculated in the store orders.

IX. Store Merchandise Review a. BHCS has created a Stakeholders group to manage the content and merchandising of

the store. This group is chaired by BHCS Marketing Brand Management and BHCS SCM Contracting. Members of the group include Marketing; Human Resources; Administrative Professionals Forum; SCM Contracting, Procurement, and Operations; Tax; and Financial Services.

b. The Store Stakeholders, along with BN account representatives will conduct quarterly merchandising meetings where they will review the store content, product offerings and sales. The Store Stakeholders will make changes to the store and its offerings as appropriate and in compliance with BHCS policies and procedures.

Exhibit A

Quick Links BHCS Company Store

3/21/11 Marcia Jackson-Finn DRAFT

2001 Bryan Street Suite 2700 Dallas, Texas 75201 (214) 820-2405 www.BaylorHealth.com

Exhibit B Baylor Online Company Store – Internet Ordering Setup Form

Please fill out ENTIRE form. INSTRUCTIONS ATTACHED

Is this a new set up or a change?

Requisitioner’s Name:

Username: (Email Address)

User Password: to be completed by Supply Chain/MMIS

generic password which you will change once you sign into the online store

Requisitioner’s Phone Number:

Cost Center(s): i.e. 1000-12345-71620 (Promotional Products – 71620)

Facility Name: i.e. Baylor University Medical Center

Facility “Ship To” Address: Address of Receiving Dock (Hard-coded to your name)

City/State/Zip:

Deliver to Address: (Location where items should be delivered to from the receiving dock, i.e., Building Name, Floor #, etc.)

Deliver to Name: (If different from requisitioner’s name)

Deliver to phone number: (If different from requistioner’s number)

Date submitted:

Manager/Supervisor Name:

Manager Phone Number:

Manager Email Address:

Director or One-up must submit form in WORD FORMAT to MMIS@baylorhealth.edu with approval.

Baylor Online Company Store – Internet Ordering Setup Form

Please fill out the ENTIRE form and make sure your information is in alignment with Baylor Health Care System’s Outlook information. Definition of fields: User Name: Use your Email address as your User Name. User Password: Supply Chain/MMS will be assigning a generic password which you will change once you sign into the Online Store. Cost Centers: Expense code 716020 (promotional items) cannot be changed. Facility Ship to Address: Address of your facility’s receiving dock. This is the first location the order is shipped to. This address will be hard-coded to your name. Deliver to Address: Location where items should be delivered to from the receiving dock, i.e., Building Name, Floor #, etc.