COUNTDOWN DISTRIBUTION CENTRE PACK

Copyright © 2011 by Progressive Enterprises Limited. COMMERCIAL IN CONFIDENCE. No part of this document may be presented, reproduced or copied in any form or by any means (graphical, electronic or mechanical including photocopying, recording tape or by any information storage and retrieval system) without the express written permission of Progressive Enterprises Limited.

COUNTDOWN

DISTRIBUTION CENTRE

PACK

COUNTDOWN DISTRIBUTION CENTRE VENDOR PACK

Copyright © 2011 by Progressive Enterprises Limited. COMMERCIAL IN CONFIDENCE. No part of this document may be

presented, reproduced or copied in any form or by any means (graphical, electronic or mechanical including

photocopying, recording tape or by any information storage and retrieval system) without the express written permission of

Progressive Enterprises Limited.

PAGE 2 of 16

Contents Page

PEL DISTRIBUTION CENTRE NETWORK ................... ................................. 3

Distribution Centres ............................................................................................................................... 3

Changes for Vendors .............................................................................................................................. 3

ENABLERS FOR DOING BUSINESS WITH PEL .............. ............................. 4

Pallet Labels ............................................................................................................................................ 4

Pallets ....................................................................................................................................................... 5

Pallet Stabilisation .................................................................................................................................. 5

Inbound Service Level ............................................................................................................................ 6

DOING EBUSINESS WITH PEL .......................... ........................................... 6

What is the eBusiness (B2B) Gateway? ................................................................................................ 7

TRANSPORT CHANGES ................................. ............................................... 7

Safety aspects for drivers ....................................................................................................................... 7

Arrival Procedures ................................................................................................................................. 8

Delivery Documentation......................................................................................................................... 9

Carrier Requirements ............................................................................................................................ 9

Chain of Responsibility Requirements ............................................................................................... 10

Pallet Management ............................................................................................................................... 11

Freight Cost Recovery (FCR) .............................................................................................................. 11

DC Receiving Times Matrix ................................................................................................................ 13

FREQUENTLY ASKED QUESTIONS (FAQ’S) ................ ............................. 15






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PEL Distribution Centre Network

Countdown manages an Ambient National Distribution Centre in Auckland and Regional

Distribution Centres in Auckland, Palmerston North and Christchurch. We also run 3 Produce

DCs and contract 3 Chilled / Frozen DCs across the two islands

This Distribution Centre Vendor Pack has been designed to provide you with the required

information that will help you better manage the particular requirements of our DCs.

Distribution Centres The Distribution Centres service approximately 250 stores across New Zealand. They include

our corporate Countdown stores and the owner operated SuperValue/ Fresh Choice franchise

stores.

Changes for Vendors Our modern Distribution Centres are built with safety and efficiency in mind. As such, we

require additional focus from our Vendors to supply ordered products to the correct packaging

specifications, such as:

• Safe Vendor Pack lifting weights. The PEL maximum vendor pack weight is 16 kg; the

maximum pallet weight must not exceed 1000kg)

• Accurately placed Pallet Labels (SSCC Bar Code)

• Accurate Palletisation (Ti-Hi)

• Provide GTIN on cartons (correct quantity, quality and magnification)

• Good quality NZ Standard pallets are used by a PEL authorised provider (no loose

boards etc)

• No stock overhang on pallets

• Proper pallet stabilisation (typically using stretch wrap or cold water based PVA glue)

• High standard pallet wrapping, e.g. no plastic “tails”

The ANDC uses Radio Frequency (RF) bar code scanning technology and you will need to

comply with the PEL Packaging Specifications found on our web site via the following link.






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Our Packaging Specifications:

http://www.countdown.co.nz/media/998070/pel%20nz%20packaging%20specifications%20august%202010.pdf

Our Barcode Specifications:

If you need assistance in meeting PEL barcode requirements, GS1 New Zealand can help

you - http://www.gs1nz.org/home.asp. The adherence to these requirements will assist in the

efficient & timely receipt of your deliveries.

Enablers for Doing Business with PEL

Pallet Labels

Since January 2005 it has been a preference for deliveries to any PEL DC to have a Pallet

Label (SSCC label) applied as per our specification

• The pallet label is your “key” that unlocks the doorway for your pallets to be received in

an efficient and timely manner into our supply chain. There must be a pallet label with

unique SSCC numbers applied to each of the fork entry sides of your pallet. Therefore

two identical pallet labels are required per pallet. There should be no duplicates across

multiple pallets.

• The pallet label must utilise the GS1-128 symbology

• The receiving process will occur through the use of radio frequency scanners. Accurate

receipt will require vendors to have compliant pallet labels. Stock may be rejected if a

compliant pallet label is not applied as it is difficult to receive this stock manually.

Common issues for vendors to review include:

1. Poor quality of the printing of the bar codes on the label – this renders the label unusable

as it cannot be scanned. Please check the quality of the labels and printers prior to

application.

2. Stock not palletised as per correct Ti-Hi

3. Printing on Pallet Labels is not centred – the printing is running off the edges of the label

stock, therefore the bar code cannot be scanned. The printer needs to be adjusted to re-

centre the printing.

4. Pallet labels not applied as per our specification. (Summary of specification: 50mm to

100mm from the right-hand vertical edge on the fork entry side and between 400mm and

800mm from the ground with no more than 5 degree tilt from vertical and not overlapping

multiple cartons).






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Pallets Pallets must be New Zealand Standard and by an approved PEL provider.

• Pallets cannot be used if there are missing pallet boards and the dimensions of tunnel

and runners are not to specification.

• Any deterioration of quality in your pallets supplied may cause OH&S issues within our

DC and may result in the rejection of your order and re-delivery at your cost.

It is advisable that in advance of your deliveries coming into the ANDC, you discuss these

requirements with your pallet provider so as to ensure there are no issues from your first

receipt.

Pallet Stabilisation • All inbound pallets need to be stable and secure, with no overhang or load shift

• There are several acceptable methods for pallet stabilisation, for example cold water-

based glue (PVA) between layers, stretch wrap or stretch tape. All pallets need to be

wrapped, without exception.

• Where PVA glue is used, glue dots on the top of cartons must be between 3 to 5 mm in

diameter; any greater than this will require excess force to move the carton and may

result in injury when moving the carton.

Do not use hot melt glue to secure layers of carton s on a pallet - Hot melt glue requires

too much force to remove a trade unit from a pallet and may lead to injury of staff.

• Where pallets are stretch wrapped, care must be taken to ensure that it extends down to

and include the wooden pallet, but no more than the top one-third. The plastic tail end of

the stretch wrap must also be secured adequately so it does not come loose during

handling and transit. Serious safety issues can arise if the end piece is loose and

becomes tangled in racking or other materials handling systems.

Refer to Section 3 in the Packaging Specifications document for more details.






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Inbound Service Level The vehicle with your purchase order may only arrive up to a maximum of 30 minutes prior or

30 minutes after your Expected Delivery Time. Any vehicle arriving outside of this receiving

window will NOT be permitted to enter the site, at the discretion of the DC Management.

• Your delivery must be made within the specified time window of 30 mins before and 30

mins after your Expected Delivery Time that is displayed on your Purchase Order. For us

to control on site parking and queuing we need strict adherence to these timeframes.

• Our Vendor Quality Compliance (VQC) system captures arrival and departure times at the

gatehouses which are then used for your Inbound Service Level (IBSL) calculation

against the original Purchase Order (PO) date and time.

• Carriers will be required to notify their arrival via intercom at the truck entrance and

provide specific information (see Arrival Procedures on Page 11).

Doing eBusiness with PEL

The eBusiness system allows you to do business with PEL electronically. Our eBusiness

capabilities extend to the exchange of business documents and the sharing of key business

information through our Trade Partner Portal.

We have been working with Vendors to expand the use of electronic trading (referred to as

B2B). All eBusiness capabilities have been developed in line with Global Industry Standards

and best practice. As such, the PEL preferred means of doing business is electronic and

Trade Partners are encouraged to leverage our eBusiness capabilities for mutual benefit.

By establishing an eBusiness relationship with PEL, your organisation can benefit from:

• Faster, more efficient and more accurate procurement

• Improved Service Levels & Compliance

• Improved overall Supply Chain visibility & efficiency

• Collaborative business process






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What is the eBusiness (B2B) Gateway? Our B2B Gateway enables the exchange (two-way) of key business documents between PEL

and Trade Partners. Documents transferred over the eBusiness Gateway can include

Purchase Orders, Purchase Order Response, Remittance Advice, Advance Shipping Notices

and Invoice.

The two methods available are:

1. WebForms

Messages can be presented via our FREE OF COST webforms system. Accessible via a

standard web browser, webforms allows all Trade Partners to engage in the exchange of

electronic messaging irrespective of their technical capabilities.

2. Electronic Data Interchange (EDI)

Messages can be exchanged directly with Trade Partners using traditional electronic

messaging solutions (EDI).

Our B2B Gateway is continually evolving to take advantage of the latest Industry trends and

opportunities.

Contacting the eBusiness Team We have a dedicated team of eBusiness Specialists ready to assist you with your eBusiness

setup. Contact us today to discuss the next steps in doing eBusiness with PEL.

Email: [email protected]

Telephone: +61 2 8885 3100

Additional information on eBusiness with PEL is available on the following website:

http://www.progressive.co.nz/PELB2B/

Transport Changes Listed below are our requirements relating to all transportation and deliveries:

Safety aspects for drivers • No passengers (other than Transport Company offsiders or drivers in training) are to

accompany the driver onto the dock.

• Personal protective equipment (PPE) must be worn at all times:






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o The site is a safety vest/high visibility clothing designated area. Anyone visiting

the area must have safety vest/high visibility clothing for the duration of their visit.

o Drivers / offsiders must wear safety footwear (enclosed steel capped boots) at all

times.

• Whilst unloading is in process, the Driver / offsider is to remain outside the vehicle in the

designated area adjacent to their vehicle or otherwise as directed by the receiving teams.

• Children on site policy: For everyone’s safety, no children under the age of 16 are

permitted on the site.

• Cell phones are not permitted to be used whilst driving on site. They are to be used only

in designated locations

Arrival Procedures • All purchase orders have a specified appointment time. The vehicle may ONLY arrive up

to a maximum of 30 minutes prior or 30 minutes after your appointed time.

• It is critical that vendors and their transport providers understand the potential for

congestion to occur and the adherence to time slots will be crucial for all parties.

• Upon arrival, the following ten pieces of information must be provided to the gatehouse to

assist in reducing truck turn around times:

1. All Purchase Order Numbers (POs not registered at the Driver Sequencing Office

will receive a “miss” for In-Bound Service Level).

2. Number of pallets to be delivered

3. Number of pallets to stay on the truck

4. Vehicle registration number

5. Number of passengers, including driver - confirm names

6. Transport details - carrier name

7. Truck type (e.g. Curtain-side or B-train)

8. Pick Up load (if applicable)

9. Chain of Responsibility (how many work hours does the driver have left on the

current shift)

10. Driver’s / offsider’s name for our Site Driver Induction and mobile phone number

in the event of a queue call up






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• If the delivery is running late or will not be delivered on the scheduled day, the Transport

carrier must contact the Vendor who is responsible for notifying the PEL Replenisher prior

to the scheduled arrival time on the date of arrival.

• An alternate appointment time and/or day may then be organised for the delivery to be

made, provided our DC has the capacity to do so. No Shows lead to out of stocks in

stores and are treated seriously by PEL, and will be followed up for explanation by the

vendor. (Explain Who will follow-up)

Delivery Documentation • Two identical packing slips must be presented (one copy will be retained by PEL and one

copy will signed and returned to the driver as proof of delivery).

• Consignment notes or run sheets will not be accepted for receipting purposes.

• The invoice must include the PEL purchase order (PO) number, the Vendor’s business

name, address and Vendor ID Number and transport company name.

• Each delivery will consist of one PO to one invoice. More than one PO can be delivered

on one vehicle but one PO cannot be delivered over multiple vehicles.

• Product descriptions on the paperwork must match those on the PO, the carton quantities

and the Pallet (SSCC) and Logistics Labels where used.

• The sequence of products appearing on the invoice should be the same as on the PO.

Carrier Requirements • Dangerous goods - All relevant Legislation, standards and documentation must be

adhered to.

• All deliveries must use a side unload vehicle at ANDC.

• Maximum vehicle height for side loaded trailers is 4.6 metres with the minimum deck

height at 1 metre.

• Maximum vehicle height for side loaded drop deck trailers is 4.6 metres with the minimum

deck height at 0.5 metre.

• Maximum overall vehicle height for rear loaded trailers is 4.3 metres and the minimum

deck height is 1 metre and the maximum deck height is 1.5m.

• All deliveries must be delivered as secured palletised loads with no hanging string, plastic

“tails” or poor quality wooden pallets.

• Pallets must be delivered in the correct Ti Hi configuration as required by PEL.






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Chain of Responsibility Requirements • All loads must be secured in accordance with the New Zealand Transport Agency

guidance for load anchorage standards.

• Ensure that drivers delivering product have sufficient hours available to affect the delivery

within the permitted driving and work hours as defined by the Transport Regulations.

• All vehicles must not exceed the permitted maximum axle loading weights and dimension

limits.

• All vehicles must be in a roadworthy condition with current COF and RUC licensing.

Mixed items on a pallet PEL will accept a maximum of 4 line items on a single layer pallet where each item is less

than 3 cases. Vendors need to affix one pallet label to one of the trade units for each of the

individual line items – ensure that these labels are facing outwards on the fork entry side of

the pallet where it can be easily scanned. The remainder of the cartons should be grouped

together behind the corresponding carton containing the pallet label.

The Load After arriving at the ANDC, an inspection will be carried out on the load and checked for the

following types of issues:

• Non existent Pallet Labels,

• Poor Quality Pallets – Pallets must be of good quality and be to the New Zealand

Standard by an approved PEL provider e.g. No broken boards, no faulty tunnel or runner

boards

• Carton overhang

• Cardboard overhang (slip sheets)

• More than 4 line items on a single layer pallet

• Excessive stretch-wrap

• Stretch-wrap covering the fork entry areas

• Loose or unravelling stretch wrap

• Damaged cartons

• Incorrect Pallet Ti Hi

• Poor load stabilisation






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• Inadequate load restraint

Serious non-conformances could lead to a rejection of your delivery.

Pallet Management Vendor’s Responsibility:

• PEL will manage ALL transfer paperwork to and from the PEL account.

• New Zealand Standard pallets not issued by an approved PEL provider will not be

returned or exchanged.

For full information on the Pallet control model, please refer to the Freight section.

Queries

Any queries regarding pallet transfer/control can be directed to the ULD Specialist:

Anthony Vercoe

ULD Specialist – Auckland National Distribution Centre

Progressive Enterprises Ltd

09 275 2849

[email protected]

Replenishment Requirements • All deliveries must be delivered as secured palletised loads with no hanging string, plastic

tails or faulty wooden pallets.

• Pallets must be delivered in the correct Ti Hi configuration as required by PEL - this is

displayed on the Purchase Order

• To ensure data integrity, please contact your appropriate Replenisher as per details on

your purchase order, regarding the above points or for further information.

Freight Cost Recovery (FCR) • All vendors must have an agreement in place prior to delivery

• You must contact the Freight Cost Recovery team for full details prior to product ranging

to understand fully the freight cost recovery process.

Email: [email protected]






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Checklist

�� Area

Ten points of information are required for registration at the DC Gatehouse:

1. All Purchase Order Numbers (POs not registered at the Driver Sequencing Office will receive a “miss” for In-Bound Service Level).

2. Number of pallets to be delivered

3. Number of pallets to stay on the truck

4. Vehicle registration number

5. Number of passengers, including driver - confirm names

6. Transport details - carrier name

7. Truck type (e.g. Curtain-side or B-Double)

8. Pick Up load (if applicable)

9. Chain of Responsibility (how many work hours does the driver have left on the current shift)

10. Driver’s name for our Site Driver Induction and mobile phone number for queue call up

Pallets are no more than 180cm in height, of good quality and to the New Zealand Standard by a PEL authorised provider

GTIN barcode on cartons

Pallet Labels (SSCC), one on each fork entry side.

Update of PEL master data in your internal systems

Aware of all new requirements in the new ANDC

New EDI location set up

No more that four (4) line items on a single pallet layer

Aware of new delivery address

Lead times reviewed and updated

Carrier aware of safety and delivery requirements

Ensure pallet TiHi configuration is correct to PEL requirements

Supplied your driver induction details






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DC Receiving Times Matrix

Distribution

Centres

What are our

receiving times?

(Receiving window

is 30mins +/- of

Booking time)

What are the

standard pallet

heights in our DCs?

What are the

policies on

Exceptions?

What are our

pallet stacking

policies in terms

of Inbound

trucks?

What are our

receiving

policies –

‘Subject to

check’ or ‘Leave

only upon

checking stock’.

ARDC - 9700.

Address: 80

Favona Road,

Mangere,

Auckland. Ph:

09 2752627.

5pm to 3am with

variations for peak

times.

Standard height 1.4m

with exceptions for

light weight products

Standard as the

above document

Orders received

strictly – Subject

to Check

ANDC – 9722.

Address: 60

Kerrs Road,

Wiri, Auckland.

Ph: 09 2752722.

13.30pm to

19.30pm

Inbound max height

is 1.8m and/or 1025

kg

Stable stacking

and wrapped to

the base boards

with good

quality pallets

Leave only upon

checking stock

Palmerston

North – 9745.

Address: Cnr

Mako Mako

Drive &

Mihaere Drive,

Palmerston

North. Ph: 06

3540200.

Mon-Fri: 5am –

5pm. Sat: 6am –

12pm. NO Sun

except special

request from

buyer.

Pallet Height is 1.4m.

Exceptions are paper

and other light

weight products.

No stacking of

other Vendor

products on top

of ours.

Common sense

in weights and

crushability

when stacking

pallets.

Mezzanine decks

OK.

Orders received


to Check

Christchurch –

9731

9731: 0600 – 1230.

Trucks on time

window is +/-

30mins

Standard pallet

height is 1.8m.

Exceptions apply on

carbonated drinks,

chips, biscuits, cereal

and TP.

Normal and

Chinese stacking

Orders received


to Check

Christchurch –

9795. Address:

146 Shands

Road, Hornby,

Christchurch.

Ph: 03 3440850.

9795: 1300-2100.

Trucks on time

window is +/-

30mins

Standard pallet

height is 1.8m.

Exceptions apply on

carbonated drinks,

chips, biscuits, cereal

and TP.

Normal and

Chinese stacking

Orders received


to Check

Auckland

Chilled/Frozen

DC’s – 9727.

Address: 27

Dalgety Drive,

Manukau,

Auckland. Ph:

09 9683935.

Auckland Chilled:

Mon – Fri: 0300-

1300. Sat: 0300-

1130. Sun closed.

Standard height is

1.2m. Only exception

is butter pats 1.4m

Pallet stacking

can be doubled

up if packaging

can withstand

weight without

causing damage

or H&S issues.

Any pallets with

damages will be

rejected.

Trucks on time

window is +/-

30mins






PAGE 14 of 16

Palmerston

North

Chilled/Frozen

– 9747.

Address: 22-30

Makomako

Road,

Palmerston

North. Ph: 06

3568177.

Palmerston North

Chilled: Mon – Fri:

0600-1300

Standard height is


is butter pats 1.4m

Pallet stacking

can be doubled

up if packaging

can withstand

weight without

causing damage

or H&S issues.

Any pallets with

damages will be

rejected.

Trucks on time

window is +/-

30mins

Christchurch

Chilled/Frozen:

9797, 9799.

Address: 32

Halwyn Drive,

Hornby,

Christchurch.

Ph: 03 9433930.

Christchurch

Chilled: Mon – Fri:

0630 – 1530. Sat

Closed.

Standard height is


is butter pats 1.4m

Pallet stacking

can be doubled

up if packaging

can withstand

weight without

causing damage

or H&S issues.

Any pallets with

damages will be

rejected.

Trucks on time

window is +/-

30mins

Auckland

Produce

0600-1600 Daily

except

Christmas/Good

Friday

Standard Pallet

Height is 1.8m or

2.2m if split pallet

Pallet stacking is

1.8m

Orders received


to Check

Wellington

Produce

0300-2100. Due

42% Stock being

received from

Auckland: Sunday

to Friday

Standard Pallet

Height is 1.8m or


Pallet stacking is

1.8m

Orders received


to Check

Christchurch

Produce

0800-1600 Sunday

to Friday. Closed

Saturday.

Standard Pallet

Height is 1.8m or


Pallet stacking is

1.8m

Orders received


to Check






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Frequently Asked Questions (FAQ’s) There has been and will continue to be a vast amount of “Change” experienced as we

commission our new National Distribution Centre (NDC) and ramp up our Regional

Distribution Centres (RDCs) to improve end-to-end efficiencies through the PEL Supply

Chain.

The Question & Answers below addresses the most frequently asked questions by Vendors

and hopefully will answer any queries you may have:

Q.1 How do I go about printing or generating the Pallet Label?

A If your IT Department is unable to implement a Pallet Labelling solution, GS1

New Zealand (http://www.gs1nz.org/home.asp) provide a list on their web site

of software and printing providers in each state who can supply a full Pallet

Label printing solution.

Q.2 How & where do I place the Pallet Label containing the SSCC on my full or part

pallets?

A We have posted on our Vendor's Website the Pallet label Specification

document detailing how Pallet Labels should be applied.

http://www.countdown.co.nz/media/1271362/pallet%20label%20specifications.pdf

A brief summary of the requirements: 50mm to 100mm from the right-hand

vertical edge of the fork entry side and between 400mm and 800mm from the

ground with no more than 5 degree tilt from vertical and not overlapping

multiple cartons.

Q.3 How will Inbound Service Levels (IBSL) be affected if the delivery is held up at the

DC’s by PEL?

A Drivers are to check in at the Gatehouse at truck the entrance upon arrival.

This arrival time is used in the service level calculation.

Q.4 If there is a request by PEL and agreement with the Vendor to a delivery time

change, either earlier or later, will the delivery be flagged as “On Time”?

A Yes - if requested by PEL and on authority of DC Replenishment and only if

the new delivery time slot is met.






PAGE 16 of 16

Q.5 If I cannot make the delivery date & time do I need to call anyone?

A Yes - If you are the carrier you must call the Vendor. If you are the vendor

then you must call the PEL Rebuyer/Replenisher. If you do not show up on

the day scheduled without any prior notification then this “No Show” is treated

seriously by PEL and will be followed up for explanation by the vendor.

Q.6 Why are carton GTIN’s required

A ANDC is a new facility utilising the latest product scanning technology. In the

receipt process, the carton GTIN is scanned to verify the product in our WMS

system & then it is checked against the GTIN barcode on your pallet label to

ensure what we ordered has been correctly supplied.

Q.7 What can I do to improve pallet wrapping & pallet stability?

A Ensure that pallets do not have any protruding wrapping dags or loose tails

as this can lead to serious OH&S issues. Ensure that the pallet is wrapped to

the top one-third of the pallet only. String can be used to secure your product,

but it must not have loose tails. The correct cold water-based PVA glue can

be used between layers to secure the load. Check that your trade units do not

exceed the edge of the wooden pallet – i.e. no overhang. Please refer to the

PEL NZ Packaging specification document for further details.

http://www.countdown.co.nz/media/998070/pel%20nz%20packaging%20specifications%20august%202010.pdf