Wal-Mart Supplier Module

Bharti Wal-Mart Pvt. Ltd. Confidential 2010 Page 1 Version – 1.0 / Date-23rd Mar’10

Vendor Information Manual



INDEX

WELCOME TO THE BHARTI WAL-MART PVT. LTD……………5

CHAPTER - I INTRODUCTION ………………………………….……6 INTRODUCTION..................................................................................7

BHARTI WAL-MART ETHICAL TRADING POLICY.......................................8 BHARTI WAL-MART GIFT AND GRATUITY POLICY....................................9

BHARTI WAL-MART OPEN DOOR POLICY................................................10

CHAPTER - II ELECTRONIC INFORMATION EXCHANGE ………...12 COMMUNICATING ELECTRONICALLY WITH BHARTI WALMART ................13 ONLINE RETAIL BUSINESS INFORMATION TRANSFER (ORBIT) ...............13

ELECTRONIC DATA INTERCHANGE (EDI) .............................................14 WHAT IS EDI? ...........................................................................................14

HOW DOES EDI WORK? ..............................................................................14 BHARTI WAL-MART EDI POLICY....................................................................15

RETAIL LINK® - OVERVIEW...............................................................15 VENDOR PERFORMANCE EVALUATION USING RETAIL LINK® .................16

CHAPTER – III ITEM CREATION & REVISIONS ............................17 BHARTI WAL-MART ONLINE ITEM FILE (OIF).........................................18 DETAILED DESCRIPTION OF THE OIF FIELDS ........................................18

ITEM CREATION VARIABLES ...............................................................26 ITEM TYPES................................................................................................26

BHARTI WAL-MART PRICE / COST CHANGES.........................................28 GUIDELINES TO COMPLETNG THE PRICE / COST CHANGE SHEET.............28

CHAPTER – IV – MERCHANDISING SUPPORT FUNCTIONS............30 BHARTI WAL-MART MODULAR PLANNING REQUIREMENTS ......................31 BHARTI WAL-MART MODULAR IMAGE ACQUISITION ........................................32 LAYOUT CENTER .........................................................................................39

RULES FOR CREATING MODULARS ................................................................40

BHARTI WAL-MART PURCHASE ORDER GUIDELINES ..............................41 PURCHASE ORDER ISSUE.............................................................................41 PURCHASE ORDER DELIVERY........................................................................41



UPC GUIDELINES ..............................................................................43 UPC GENERAL GUIDELINES ..........................................................................43

UPC’S AT BHARTI WAL-MART.........................................................................46 VENDOR CHARGE-BACK GUIDELINES.............................................................46

COMMON UPC PROBLEMS.............................................................................48

BHARTI WAL-MART REPLENISHMENT OVERVIEW ...................................50

VENDOR EXPECTATIONS / REPLENISHMENT GENERAL GUIDELINES .........50 BHARTI WAL-MART ACCOUNTS PAYABLE DEPARTMENT OVERVIEW ..........51

CHAPTER – V – GENERAL PACKAGING GUIDELINES .........................52 GENERAL PACKAGING GUIDELINES – NON-FOOD ............................................53

ENVIRONMENTAL SUSTAINABILITY – MATERIALS LIST ....................................54 GENERAL PACKAGING GUIDELINES – FOOD....................................................68 GENERAL GUIDELINES.................................................................................68

PACKAGED FOOD MARKING..........................................................................68

CHAPTER – VI – DISTRIBUTION CENTERS...........................................69 DELIVERY TO BHARTI WAL-MART DISTRIBUTION CENTERS..............................70 DIRECT-STORE-DELIVERY (DSD) PROCESS....................................................75

MASTER PACKS..........................................................................................75 PURCHASE ORDER PROCESSING CONSIDERATIONS ......................................79 GENERAL CARTON QUALITY AND MARKING REQUIREMENTS ...........................80

MARK ON CARTON .....................................................................................80 MARK SAMPLE ...........................................................................................80

DISTRIBUTION CENTER HANDLING...............................................................81 DISTRIBUTION CENTER CONVEYABLE BOX ....................................................81 DISTRIBUTION CENTER NON-CONVEYABLE BOX..............................................81

ADDITIONAL CONSIDERATIONS:...................................................................82 CARTON MARKING AND LABEL REQUIREMENTS...............................................82

CARTON MARKING GUIDELINES....................................................................83 PALLETS ....................................................................................................84

STRETCH WRAPPING REQUIREMENTS:...........................................................84 PREVENTIVE MEASURES FOR DISTRIBUTION CENTER PROBLEMS .....................86

I. BILL OF LADING.............................................................................86

II. PACKING SLIP .............................................................................86 III. LABELING...................................................................................86

IV. OVERAGES .................................................................................86 V. OVERAGES -- ONE ON ONE LINE, SHORT ON ANOTHER LINE..............86 VI. SUBSTITUTIONS ........................................................................86

VII. WRONG PACK............................................................................86 VIII. NOT IN SYSTEM (PO NOT IN DISTRIBUTION CENTER SYSTEM).......87

DISTRIBUTION CENTER ADDRESS & LOCATION MAP......................................87

ANNEXURE – BHARTI WAL-MART TERMS & GLOSSARY ...................................89

BHARTI WAL-MART TERMINOLOGY LISTING..................................................90



WELCOME TO THE BHARTI WAL-MART PVT. LTD.

VENDOR INFORMATION MANUAL – 2010

Dear Vendor: We have the potential to achieve tremendous growth and success together - a success that is unparalleled in the retail industry. If you become a vendor of Bharti Wal-Mart, we have the potential to create future growth by working together, having a passion for lowering costs and never losing focus on our customers. Contributing to Every Day Low Price (EDLP) is everyone‟s business. Understanding our procedures and standards is of prime importance to moving freight efficiently and economically through the supply chain. Please ensure that this Vendor Information Manual is shared with and understood by appropriate individuals within your organization, including those persons in your organization who would be responsible for shipping product to Bharti Wal-Mart through our distribution centers or direct to retail outlets. If you have any questions, please feel free to contact the specific department involved (merchandising, logistics, accounting, etc.) for a quick response. Thank you for your continued co-operation and the opportunity to build a mutually rewarding business relationship. Sincerely, Raj Jain Mike Cockrell Director & Chief Executive Officer Executive Vice President & Head of Merchandising Bharti Wal-Mart Pvt. Ltd., Tower A, II Floor, First India Place, Mehrauli - Gurgaon Road, Gurgaon, Haryana - 122002



CHAPTER - I

INTRODUCTION



INTRODUCTION Working with the Vendor Information Manual Receipt of this Vendor Information Manual by a potential vendor does not obligate Bharti Wal-Mart to do any business with such vendor. This Vendor Information Manual is designed to provide information allowing vendors to understand Bharti Wal-Mart‟s business environment and business requirements. Effectively supplying products either through distribution centers or directly to the retail outlets is contingent on understanding our business environment and expectations. Please ensure that the right people within your organization have reviewed this Vendor Information Manual. The following functions within your organization should have access, subject to the restrictions set forth on the prior page, and should review the Vendor Information Manual: • Distribution Center operations • Traffic operations • Sales organizations • Accounting organizations If you become a vendor of Bharti Wal-Mart, you should set up a time with your buyer or any of our distribution merchandising coordinators to ensure you fully understand how we operate before shipping your first order. A combination of touring a distribution center and fully reading this Vendor Information Manual will help with your understanding of our logistics network requirements. Throughout this Vendor Information Manual we have highlighted key obligations and requirements that vendors of Bharti Wal-Mart would be responsible for complying with and completing.



BHARTI WAL-MART ETHICAL TRADING POLICY Bharti Wal-Mart bases its relationships with vendors on lawful, efficient and fair business practices. The selection of vendors will be made on the basis of objective criteria, including quality, price, delivery, adherence to schedules, product suitability, maintenance of adequate sources of supply and Bharti Wal-Mart‟s purchasing procedures. Bharti Wal-Mart vendors will be treated with respect, fairness and honesty and will not be taken undue advantage of by using Bharti Wal-Mart‟s business influence. Bharti Wal-Mart expects vendors to follow all applicable legal requirements as per the laws of the land in their business practices. A vendor or potential vendor shall not encourage or offer employment for the immediate family members of any Bharti Wal-Mart associate. Immediate family members include (whether by birth, adoption, marriage or domestic partnership or Civil Union, if recognized by the state or other local law) spouse, children, parents, siblings, mothers and fathers-in-law and brothers and sisters-in-law. Any vendor found to be violating or attempting to violate the Bharti Wal-Mart Ethical Trading POLICY will immediately have his Vendor Agreement terminated. Below is a list of examples of violations by vendors of the Ethical Trading Policy. This list is not a complete and comprehensive list of possible Ethical Trading Policy violations; however, it gives a basic understanding of how Bharti Wal-Mart has identified certain non-compliance issues in relation to the Bharti Wal-Mart‟s Vendor Standards. LABOUR PRACTICE - FORCED LABOUR • Involuntary labour (prison, bonded or forced) • Purchasing supplies from state entities using prison labour • Terminating workers who will not work over-time hours • Disciplining workers who will not work over-time hours LABOUR PRACTICE - CHILD LABOUR • Age Violation (Child Labour) • Historical Child Labour - Child Labour occurred during a 6 month time period when no Bharti Wal-Mart business was processed. • Workers‟ children allowed in the factory compound except for child-care facility.



WAL-MART GIFT AND GRATUITY POLICY Bharti Wal-Mart has a strict policy which forbids and prohibits solicitation, offering, or acceptance of any gifts, gratuities, or any form of “pay off” or facilitation fee as a condition of doing business with Bharti Wal-Mart, as a form of gratitude, or as an attempt to gain favour or accept merchandise or services at a lesser degree than what was agreed. Bharti Wal-Mart believes in delivering and receiving only the total quantity agreed. Examples of gifts or gratuities include the following: • Free Goods • Tickets to sporting or entertainment events • Kickbacks in the form of money or merchandise • Discontinued or no-longer-used samples • Vendor-paid trips • Liquor or meals • Tips • Personal services or favors • Gifts in cash or in kind during festivals like Christmas, Diwali, New Year, etc., or for special occasions such as birthdays, anniversaries, etc. Any vendor, factory, trading company or manufacturer that violates such policy by offering or accepting any form of gratuity to any associate, employee, agent or affiliate of Bharti Wal-Mart will be subject to all loss of existing and future business, regardless of whether the gift or gratuity was accepted. Failure to report such information will result in severe action against such vendor, factory, trading company or manufacture, including but not limited to termination of all existing and future business relationships and monetary damages. Global Ethics Helpline: Contact : 000-117 then (800-613 3704) Email : [email protected] Internet : walmartethics.com

mailto:[email protected]



BHARTI WAL-MART OPEN DOOR POLICY Bharti Wal-Mart has an Open Door Policy for our associates, stating that associates may address any member of management to resolve an issue, without fear of repercussions. This policy also applies to our vendors. We feel strongly about our vendor relationships and want our vendors to feel comfortable addressing a member of Bharti Wal-Mart senior management if they feel they have been or are being treated unfairly. The integrity of our vendor relationship is extremely important to us. If you are dealing with a buyer, Division Merchandise Manager (“DMM”), distributor, assistant or anyone in our corporate offices and feel that you are not being treated fairly, please address the next highest level of management until you feel that the issue has been resolved. As professionals, we should treat you with the same common courtesy and respect with which we expect to be treated. You are important to our business and we believe in this policy. Please feel free to use the Open Door Policy, without fear of any negative impact on your business.



EDLC = EDLP

Every Day Low COST = Every Day Low PRICE

This Vendor Information Manual contains the rules, conditions, policies and procedures we require vendors to follow, in order to efficiently flow product from the vendor‟s manufacturing or distribution facilities through to Bharti Wal-Mart distribution centers (or direct to retail outlets). Compliance with these rules, conditions, policies and procedures will directly contribute to lower costs, thereby positively impacting our Every Day Low Prices and maintaining our commitment to offer lower retail prices to our customers. If you become a vendor of Bharti Wal-Mart, your assistance in helping us to maintain EDLP is critical. Please familiarize yourselves with the details of this Vendor Information Manual. Comply with each component accurately, avoid costly noncompliance cost recovery charges, supply exactly that which is requested on our purchase orders (no more, no less, no substitutions, and honour the “SHIP” and “CANCEL” windows, accurate UPC‟s, etc.). The bottom line is, just Do It Right the First Time. If you become a vendor of Bharti Wal-Mart, commit to Total Quality and you will be amazed at how 100% compliance with the instructions in this Vendor Information Manual will minimize total overall distribution costs (ours and yours), thus enabling us to further improve on our Every Day Low Price strategy. The Vendor Information Manual is intended to assist vendors‟ ability to „Do It Right the First Time‟ and avoid costly errors and delays. It contains important procedures that your distribution and shipping personnel need to follow if you become a vendor of Bharti Wal-Mart. This document also provides you with certain key contact names and numbers which may be helpful.

Subject to the restrictions set forth herein, please pass this Vendor

Information Manual on to those who are responsible for shipping your

product to Bharti Wal-Mart distribution centers or direct to the retail outlets



CHAPTER – II ELECTRONIC INFORMATION EXCHANGE



If you become a vendor of Bharti Wal-Mart, it is important to be familiar with the preferred methods of electronic exchange of information with Bharti Wal-Mart. COMMUNICATING ELECTRONICALLY WITH BHARTI WAL-MART Bharti Wal-Mart encourages its vendors to communicate electronically for all their business correspondences including and not limited to purchase orders, price changes, invoices, payments, etc. This will result in the following benefits to Bharti Wal-Mart and its vendors: • Faster and easier response time • Reduces paper usage, resulting in EDLC • More economical, as it calls for less record maintenance • Enables faster and quicker decision There are two options for Bharti Wal-Mart‟s vendors for electronic exchange of data: Option # 1 – ORBIT (Online Retail Business Information Transfer) Option # 2 – EDI (Electronic Data Interchange) ONLINE RETAIL BUSINESS INFORMATION TRANSFER (ORBIT) The ORBIT system requires the following system criteria: • The vendor has an internet connection • The internet connection is stable and is available 24x7 • The vendor does not process more than 3500 purchase orders or invoices in a year The ORBIT application will consist of Online Electronic forms which allow its vendors to electronically receive purchase orders and return the appropriate invoices to Bharti Wal-Mart for payment. Doing business electronically through ORBIT is similar to doing business on paper. The main difference is that the documents are transmitted electronically rather than packaged and couriered or sent by post. ORBIT was designed to reduce time in the ordering and billing cycle. Once you become familiar with the ORBIT application, you will find it much more efficient and accurate than the previous processes. With ORBIT you can do the following: • Print purchase orders • Storing purchase orders • Creating invoices • Print invoices • Electronically send an invoice to Bharti Wal-Mart



Both invoices for existing purchase orders as well as fresh invoices can be created using ORBIT. Using the ORBIT application to do business enhances the traditional paper processing of purchase orders with specific electronic capabilities. There are certain advantages to this method: • By validating information and providing warnings, ORBIT offers greater accuracy in processing purchase orders and creating invoices. • ORBIT adds the reliability of automatic, electronic acknowledgement of each document that is exchanged • ORBIT reduces vendor‟s cost of meeting Bharti Wal-Mart‟s Electronic Data Interchange (EDI) requirements • ORBIT electronically integrates purchase orders & invoices • ORBIT allows for paperless document processing • ORBIT reduces lead times • OBRIT reduces the risk of documents being lost or mis-directed • ORBIT improves document accuracy and provides quick response ELECTRONIC DATA INTERCHANGE (EDI) WHAT IS EDI? EDI is the electronic exchange of data between the vendors‟ and Bharti Wal-Mart‟s computers using standard formats. Bharti Wal-Mart uses AS2 standards of business documents. AS2 is an internet communication protocol used by Bharti Wal-Mart for data transmission. The EDI Standard will be X12 or EDIFACT. HOW DOES EDI WORK? EDI works through the direct connection between Bharti Wal-Mart and a vendor. The data travels through Bharti Wal-Mart‟s system and is placed in a mailbox on our computer. The data is then automatically sent to the vendor using AS2 communication through the internet. AS2 is “push” technology which means that every time data is available for a vendor it will automatically be pushed to the vendor. It does not require the vendor to come and get it as long as the vendor‟s AS2 communication is active and available. To obtain system documentation and begin EDI implementation, please e-mail our EDI helpdesk at: [email protected]



BHARTI WAL-MART EDI POLICY Bharti Wal-Mart considers EDI as the most efficient way to conduct business. EDI allows us to improve customer service, lower expenses, and increase productivity levels. We require all vendors to electronically transmit invoices. The pre-requisites for using EDI directly are: • The vendor has an internet connection • The internet connection is stable and is available 24x7 • The vendor has a static IP address • The vendor has EDIINT AS2 • The vendor is willing to dedicate IT staff to directly interact and understand EDI requirements with the Bharti Wal-Mart ISD Team. EDI Invoicing is a pre-requisite for: 1. Line Level matching (invoices related to distribution center shipments). 2. EFT: Electronic Funds Transfer 3. Electronic Claims Transmission 4. ASN: Advance Ship Notice. RETAIL LINK® - OVERVIEW Retail Link® is a Bharti Wal-Mart specific communications and data retrieval package that provides a direct link to Bharti Wal-Mart product data through an internet connection. Data sharing and shared ownership with our vendors is a key to the success of both Bharti Wal-Mart and its vendors. Activation and daily usage of Retail Link® is a necessity for doing business with Bharti Wal-Mart. Retail Link® gives our vendors access to current and historical information on the performance of their items within various areas of Bharti Wal-Mart. With Retail Link® you can: • Request sales forecasts • Find out which invoices have been paid or are about to be paid • Build a history of sales for each of your products • Plan your purchases to better fit into your production and demand cycles • Streamline your distribution • Become more active in deciding the best mix of products and get accurate results when testing new products • Schedule reports to run automatically Vendors will have access to 104 weeks of summarized data (Company Summary) and 65 weeks of detailed daily information encompassing: • Point of sale information (POS) • Collaborative planning forecasting and replenishment (CPFR) • Accounts payable reference guide • Business unit information (retail outlet/distribution center address listings)



• Item history information – markdowns/sales/turnover/gross profit/etc… • Market basket information – What sells with my item, purchase frequency, sales by hour & more! • Specialized preset reports (SWAS) to report on such things as – In-stock, Global Top Sellers, Vendor Performance, retail outlet etc. • B2B – (business to business) a reverse auction • Many more options By using Retail Link®, vendors and Bharti Wal-Mart can work more effectively together to meet the needs of customers. Retail Link® allows vendors to better know the marketplace. Retail Link® will also let you know what kind of decision customers are making every day – a decision that ultimately determines how well any product performs. Retail Link® allows our merchants and vendors to put the “Right Product” in the “Right Place”, at the “Right Time”, with the “Right Quantity”. VENDOR PERFORMANCE EVALUATION USING RETAIL LINK® Vendors will work out a set of Key Performance Indicators (KPI‟s) with their respective buyers at the beginning of each year or season or whenever the vendor or the buyer determines a need for the same. Once the KPI‟s are decided, the Retail Link® will be used as a tool to measure the performance of each of the vendors on the basis of its KPI‟s. The following are a few of the examples of the KPI‟s for Vendor Performance: • Sales • Margins • Markdowns • Turns • Fill-rate • In-stock

For any further information / doubts you can call at Retail link helpdesk number: 0124-4623666 or e-mail at [email protected]




CHAPTER – III ITEM CREATION

& REVISIONS



If you become a vendor of Bharti Wal-Mart, it will be important to be familiar with Bharti Wal-Mart‟s item creation and revision processes. BHARTI WAL-MART ONLINE ITEM FILE (OIF) The Online Item File (OIF) captures important and crucial information regarding a particular product in the Bharti Wal-Mart system and provides the key and support functions awareness. The OIF template is available in downloadable Excel file format through Retail Link®. Whenever the vendor is required to furnish information about products being supplied to Bharti Wal-Mart, the vendor must download the OIF template from Retail Link®, complete the OIF template in its entirety and notify the buyer regarding the same. OIF may be updated from time to time; vendors should not use any previously downloaded worksheets. Vendors should avoid normal Excel file practices of cutting, copying & pasting of rows and/or columns, insertion of rows and/or columns, dragging of cells, which will result in errors when updating the system. DETAILED DESCRIPTION OF THE OIF FIELDS UPC – The 12 digit UPC Code located on the merchandise. This is scanned through the register. [If the vendors do not have a UPC number, the vendor should contact GS1 India for further information. Contact details of the GS1India organization is given in the following pages.] UPC Check Digit – The 1 digit number which is part of the UPC to identify the vendor. Vendor Stock Number (also called Vendor Style No.) - This number is assigned by the vendor to identify the merchandise. The maximum is 15 characters. Item Description – The field contains the description of the item to help identify / understand the merchandise better. The maximum is 20 characters. Colour – This field is used to describe the color (if any) of the concerned item. The maximum is 6 characters. Size – This field is used to describe the size (if any) of the concerned item. The maximum is 6 characters.



UOM Code – This field represents the code for the unit of measurement. The maximum is 2 characters. A list of common UOM Codes is listed below: FO-FLUID OUNCE GA-GALLON GH-HALF GALLON LT-LITER PT-PINT PV-HALF PINT QT-QUART FT-FOOT IN-INCH YD-YARD EA-EACH GR-GRAM LB-POUND OZ-OUNCE KG-KILOGRAM CF-CUBIC FEET CM-CENTIMETER ML-MILLILITER UOM Quantity – This value in this field tells the customer how much is inside the package he/she is purchasing and gives price per unit on shelf label. Item Description 2 – This field captures the product description. The maximum is 20 characters. UPC Description – This information in this field appears on the cash register receipt (Customer Bill). The maximum is 12 characters. Signing Description – This is a long description of the product that will print on an advertising flag at the retail outlet level to draw the customer‟s attention towards the product. The maximum is 40 characters. Brand – This field contains the brand name (if any) for the item by which it is recognized by the customers. Shop / Ticket Description – This field is only for the Apparel items and Footwear. Shop describes the various groupings of clothing such as sportswear, casual wear, etc. The maximum is 20 characters. PLU Number (Price Look Up Number) - This field is only for non-barcodeable items like fresh food, produce, fish, meat. The maximum is 5 characters. Case UPC Supplier Pack – This is the UPC number which is listed on the Vendor Pack.



Supplier Pack Quantity – This field refers to the total number of pieces that are shipped in a supplier pack to a distribution center; this quantity is expressed in eaches. Supplier Case Length – This is the length of the Vendor Case. This field is required to calculate the cube for shipping. The value must be in centimeters. Supplier Case Width – This is the width of the Vendor Case. The field is required to calculate the cube for shipping. The value must be in centimeters. Supplier Case Height – This is the height of the Vendor Case. This field required to calculate the cube for shipping. The value must be in centimeters. Supplier Case Weight – This is the weight of the Vendor Case. This field is required to calculate the cube for shipping. The value must be in kilograms. Minimum Order Qty – This field is usually the same as the Vendor Pack Quantity unless otherwise specified by the vendor. Warehouse Pack UPC –This field captures the UPC number that is printed or pasted on the Distribution Center Pack (also known as Inner Pack). Warehouse Pack Quantity – This field contains the total quantity delivered to retail outlets in each of the WP (inner pack/distribution center pack). Warehouse Pack Length – This is the length of the Distribution Center Pack. This field is required to calculate the cube for shipping. The value must be in centimeters. Warehouse Pack Width – This is the width of the Distribution Center Pack. This field is required to calculate the cube for shipping. The value must be in centimeters. Warehouse Pack Height – This is the height of the Distribution Center Pack. This field is required to calculate the cube for shipping. The value must be in centimeters. Warehouse Pack Weight – This is the weight of the Distribution center Pack. This field is required to calculate the cube for shipping. The value must be in kilograms. Max Warehouse Order Quantity – This field represents the maximum quantity that a retail outlet can order from the distribution center. The value is in cases for Grocery and eaches for Hardlines. In Hardlines, the quantity must be a multiple of the Distribution center Pack. Pallet Ti – This is the number of Vendor Packs per layer on each Pallet. Pallet Hi – This is the number of layers on each pallet.



Pallet Round Pct – The value in this field represents the percentage of a full distribution center pallet that will trigger a full pallet pull for the retail outlet. For example, if the rounding figure is 80% and the retail outlet order is 80%, the retail outlet will receive a full pallet of merchandise. This value must be between 80 and 100%. Warehouse Area – The code in this field represents an area of the Bharti Wal-Mart Distribution center for storing certain types of merchandise. The various area codes are: 1 – Fresh Meat 5 – Ice Cream 2 – Fresh Deli 6 – Dry Grocery 3 – Fresh Dairy 7 – Wet Produce 4 – Frozen 8 – Dry Produce Conveyable – This field denotes whether the item can safely travel on a conveyor belt system through a distribution center. This field defaults to „Y‟ (for Yes) if selection is not made. Master Carton Ind – If „Y‟ (for Yes) selected, this field indicates that several Vendor Packs have been put in a single big carton together to be shipped to the distribution center. Crush Factor – 1, 2 or 3 must be selected. This field basically represents how prone an item is to being crushed. ● Selecting 1 means that the carton that the item is packed in is the strongest carton. This means that the carton can be stacked in the bottom. ● Selecting 2 means that the carton that the item is packed in a less strong carton. This means that the carton should not be stacked in the bottom. ● Selecting 3 means that the carton that the item is packed in is the weakest. This means that the carton should be stacked in the top. Warehouse Rotation – This field indicates how an item is rotated in a distribution center. 1 or 2 must be selected. ● Selecting 1 means that the item can be rotated (moved) normally. ● Selecting 2 means that the item should not be rotated (moved) frequently. Unit Cost – This field captures the price that Bharti Wal-Mart is paying the vendor per unit. Base Unit Retail – This field indicates the price at which the item is sold to the customer. Supplier Pack Cost – This field indicates the cost that Bharti Wal-Mart pays for the item per Vendor Pack. Manufacturer Pre-Price Retail – This field is used when a product has a price printed on the package.



Example for a pre-price retail Mfg Suggested Retail – The field indicates the amount listed by the manufacturer on the product as the “Suggested Retail Price”. This is also known as the “List Price”. Maximum Retail Price – This field captures the maximum retail price of the item. Tax Category – This field captures the tax category under which the item falls. A list of Tax Categories specific to Bharti Wal-Mart Tax Master will be circulated to all our vendors soon. Item OPP (Opening Price Point) - This field that indicates the item is an opening price point for the category. Warehouse Pack Calculation Method – The method used to level pricing between distribution centers when price changes occur, which will default based on the item type: 20, 22, 40, 42, 50 will default to „A‟ (Average Price); 03, 07, 33, 37, 43 will default to „R‟ (Recent Price). Department – This field denotes the Bharti Wal-Mart department in which the item number will be created. Sub-Class – This field denotes the Bharti Wal-Mart sub-class in which the item number will be created. Supplier Number – This number will be a 9-digit number provided by the Bharti Wal-Mart Vendor Set-Up Manager. The first 6-digits is the actual Vendor Number, followed by the 2-digit Department Number and the last digit sequence number. All new vendors can leave this column blank till such time they receive a Vendor Number from the Vendor Set-Up Manager. Item Type – This field indicates how the product is supplied to the retail outlets. A list of the various Bharti Wal-Mart item types include: PROMOTIONS: • 03 – domestic • 07 – direct store delivery • 43 – Imports WEEKLY REPLENISHMENT: • 33 – distributed through Bharti Wal-Mart distribution center • 37 – shipped directly to retail outlets STOCKED IN DISTRIBUTION CENTERS: • 20 – year round domestic • 22 – seasonal domestic • 40 – year round import • 42 – seasonal import • 50 – just in time; daily supplier orders



Item Sub Type – This field explains the order method on shelf label. The list of Bharti Wal-Mart sub types is below: • 00 – regular items • 87 – supplier managed, POS replenishment • 97 – supplier managed, no retail outlet review • 01 – replenishable item order on hand held • 04 – Large Formats • 05 – Distribution center - Priority Assembly • 14 - Ship and Bill Direct - Modular Item Fine Line – This field is assigned by the buyer. The fine line field is used to group like items. Shelf / Consumer Item Number – This is an item number listed which is an identical item to the customer but may be a different source to supply the product. This field is used by the Grocery department only. Product Number – This is an item number listed which is considered to be similar merchandise to the customer, but may vary in size or colour. Used in apparel department only. Projected Yearly Sales Quantity – The total number of units (volume) expected to sell in a one-year time period for all valid retail outlets including Small Formats, Medium Formats and Large Formats. Send to Store Date – This is the date on which the file information has been sent to the retail outlet. Item Effective Date – This is the date replenishable items will start generating purchase orders. This field will not affect the non-replenishable item types. Item Expiration Date – This date is used to remove an item from the retail outlets and eventually purge from the item file. The date defaults to „12/31/2049‟ (mm/dd/yyyy) if not selected. Performance Rating – This field is used to set a ranking on replenishable item types and ensures that replenishment is met for the ranking level. The following are the Performance Rating codes: 0 – Used for Department 38 only (Pharmacy) 1 – Important 2 – More Important 3 – Very Important All replenishable items must be a 2 or 3. If not selected for replenishable items, then this field automatically defaults to 2.



Replenishable Order Book – This field is used to make the item number replenishable for the retail outlets. Lead Time Days – This is the number of days required for production lead time and shipping time from vendor to Bharti Wal-Mart distribution centers. Range can be anywhere between 1 and 365. Country of Origin – This field indicates the country where the product has been manufactured. (A list of Country of Origin ID’s is attached along with the OIF spreadsheet.) Factory ID – This is an optional field. Warehouse Alignment – This field indicates the distribution center types and can be used only after the approval of the Inventory Analyst. This field defaults automatically based on item type. The following are the various Distribution center Alignment codes available: DI – For all non-replenishable item types (03, 07, 43) WH – For all distribution center item types (20, 22, 40, 42, 50) AS – For all assembly item types (33, 37) Warehouse Stocked – This field is to be used only when specific distribution centers within the alignment are stocking the merchandise. Small – This field indicates that the item is meant for only the Small Format retail outlets. Medium – This field indicates that the item is meant for only the Medium Format retail outlets. Large Formats – This field indicates that the item is meant for only the Large Format retail outlets. Online – This field indicates that the item is meant for e-business or sales through the Bharti Wal-Mart website. Send Traits – This is an optional field that helps to group retail outlets where the merchandise would be available for sale. Omit Traits – This is an optional field that helps to group retail outlets where the merchandise would not be available for sale. Replaces Item – This field is used to notify the retail outlets that this new replenishable item is replacing another item number or product. Change Reason Code – This field contains retail outlet comment codes for replenishable items.



Comment – Buyers can use this field to send extra information to the retail outlets about the product. The maximum is 120 characters. Item Length – This is the length of the item. Value must be in centimeters. Item Width – This is the width of the item. Value must be in centimeters. Item Height – This is the height of the item. Value must be in centimeters. Item Weight – This is the weight of the item. Value must be in kilograms. Guaranteed Sales – If „Y‟ (for Yes is selected this field), denotes that the merchandise can be returned to the supplier if it does not sell. Electronic Article Surveillance Ind – If „Y‟ (for Yes is selected this field), notifies the retail outlet that the particular item will be received at the retail outlet with a source tag. Temp Sensitive Ind – If „Y‟ (for Yes is selected this field indicates that), means the item will freeze or melt if not maintained at the required temperature. Shelf Rotation – If „Y‟ (for Yes) is selected, this field indicates that the old merchandise should be moved to the front of the shelf when stocked in the retail outlets. Modular Batch Print – If „Y‟ (for Yes) is selected, this field generates a shelf label when a retail outlet prints their sets of labels to set a modular. Retail Unit of Measurement – This field denotes how the item is sold when scanned at the register. Example: EA for Eaches, LB for Pounds, etc. Item Scanable Ind – This field indicates that this item is sold through the Point of Sale (POS) register. This field defaults to „Y‟ (for Yes) if not selected. Backroom Scale Ind – If „Y‟ (for Yes) is selected, this field indicates that the item is weighed and packed at the retail outlet backroom. The value in this field defaults to „N‟ if not selected. Sold by Weight / Replenished by Unit – If „Y‟ (for Yes) is selected, this field indicates that this item is replenished by eaches and not by weight. This is needed for variable weight measurement. This field defaults to „N‟ if not selected. Shelf Life Days – This field indicates the minimum number of days that must remain in the life of the product in order to receive it at the distribution center. The value for this field can vary between 0 and 365. Minimum Warehouse Life – This field indicates the maximum amount of days that a product can remain in the distribution center. The value for this field can vary between 0 and 365.



Variance Days – This field indicates the minimum allowable days between the distribution center Receiving Date‟ and the „Sell by Date‟. The distribution center may reject the merchandise if there is less than the guaranteed number of days remaining in the life of the product. Supplier Pack Weight Format – This field represents if the Vendor Pack weight is fixed or variable. This field value defaults to „F‟ if not selected. (F) ixed means that the weight of the Vendor Case is consistently the same. (V) ariable means that the weight of the Vendor Case entered is an average case weight and the actual case weight of each Vendor Case may be higher or lower. Import Item Ind – If „Y‟ (for Yes) is selected, this field indicates that the item is imported. This field defaults to „N‟ if not selected. Variable Comp Ind – If „Y‟ (for Yes) is selected, this field indicates that the item which is scalable at the front register can be competitively priced at the register. Season Code – This field indicates the Bharti Wal-Mart season code Season Year – This field indicates the Bharti Wal-Mart season year. Hazmat Ind – Items that contain hazardous materials as specified by the Indian and International Laws must be marked as „Y‟ (for Yes) in this field. Zone Pricing Traits – This field enables the buyers to price the particular product differently for different zones or regions. ITEM CREATION VARIABLES When working with the buyer to create items, there are a few considerations to take into account in order to ensure proper freight flow. These include the following: ITEM TYPES There are four types of merchandise handled by distribution centers (D) Distribution items are ordered by the buyer, cross-docked through the distribution centers and generally are in and out of the facility within 24 hours. (A) Assembly items are ordered by the retail outlets‟ POS system, cross docked through the distribution centers and generally are in and out of the facility within 24 hours. (SS) Staple Stock items are ordered by basic inventory management and stored in the distribution centers where merchandise for retail outlets‟ orders are pulled. WPM items are ordered by the buyer, then received and processed in the distribution centers, and finally allocated to the retail outlets. **Note: A fifth type of merchandise, Direct Store Delivery (DSD) items, is not handled by the distribution centers. This type of merchandise is shipped from the vendor directly to the retail outlets.



The different item type codes that are keyed into the item file indicate whether an item is D, A, SS, WPM, or DSD. Distribution Item Types: • 03 – General • 43 – Import • 53 – Tab Assembly Item Types: • 33 – Assembly type POS Replenishment • 73 – POS Replenishment - DISTRIBUTION CENTER • 93 – PAD (Priority Assembly Distribution) Distribution center Item Types: • 20 – Regular • 22 – Seasonal • 40 – Import • 42 – Import Seasonal • 50 – Just in Time (JIT) WPM Item Types: • 10 – General • 12 – General Seasonal • 14 – Import • 16 – Tab Direct to Store Item Types: • 07 – General • 37 – Assembly type POS Replenishment • 57 – Tab • 67 – New Retail outlet • 77 – POS Replenishment



BHARTI WAL-MART PRICE / COST CHANGES Bharti Wal-Mart prefers and recommends that vendors not indulge in frequent changes in cost or in retail as it confuses the customer and results in severe sales spikes. However, if this type of a change is inevitable, then the same needs to be communicated in writing to the respective Bharti Wal-Mart buyer or DMM. After the consent of the appropriate Bharti Wal-Mart buyer or DMM, the Bharti Wal-Mart Price / Cost Change sheet has to be completed, signed and stamped by the vendor. In addition, Price / Cost Change Sheet must be signed by the Bharti Wal-Mart buyer and DMM. GUIDELINES TO COMPLETNG THE PRICE / COST CHANGE SHEET Vendor No. – The 6-digit Vendor Number Vendor Name – The name of the vendor as in the Bharti Wal-Mart Vendor Agreement Buyer Name – The name of the buyer who is in-charge of the respective department. Dept No. – The department number to which the item belongs. Dept Name – The department name to which the item belongs. UPC No. The UPC number of the item for which the price / cost change is effective. UPC Description – The UPC Description of the item for which the price / cost change is affecting. Item No. – The item number of the item for which the price / cost change is affecting. Item Description – The description of the item for which the price / cost change is affecting. Existing Prx / Cost – The current existing retail or cost in Rs. of the item. New Prx / Cost – The revised retail or cost in Rs. of the item. Existing Margin % - The current existing margin % of the item. New Margin % - The revised margin as an effect of the revision in price / cost of the item. Margin Difference – The increase or decrease in Margin % (the difference between the Existing Margin % & New Margin %).



Allowances – Additional allowances, if any. Reason for Change – The reason for the price / cost change. Reasons need to be specific and qualitative. All such price change documents need to have the vendor‟s signature and the vendor‟s company seal along with date. Any price change document without the vendor‟s company seal, the vendor‟s signature, the buyer‟s signature or the Bharti Wal-Mart authorizer‟s signature will be considered “invalid” and such price changes will not be affected.



CHAPTER – IV MERCHANDISING

SUPPORT FUNCTIONS



If you become a vendor of Bharti Wal-Mart, it will be important to be familiar with Bharti Wal-Mart‟s expectations related to merchandising support functions. BHARTI WAL-MART MODULAR PLANNING REQUIREMENTS What is a Modular? A modular is a systematic merchandise layout plan for categories within a department that communicates the following: • The buyer‟s merchandising strategies • Item addition and deletion lists • Markdowns • Initial orders • Product placement • Fixture changes Benefits of Using Modular’s The following are benefits of using modular‟s to merchandise product in the retail Outlets: Increases Sales – Increase in sales can be achieved by keeping all related merchandise together and giving more space for fast selling items and less space for slow moving items. Improves In-Stock/Decreases Overstock – The use of modulars helps ensure that we give each item a definite selling space so that we only order merchandise which can fit into the assigned selling space and any out-of-stock items are easily recognized. Better mix of merchandise Fewer Markdowns – Modular‟s help ensure that we have the right product in the right the place at the right time. Consistency – Modular‟s help ensure that a particular product is found at the same place every time the customer comes shopping. This means that the customer will find it much easier to find the product that he/she wants. Maintains Safety – Modular‟s maintain the weight balance on both sides of the gondola even and helping ensuring the stable stacking of merchandise. Decreases Expenses – Using modular‟s ensure that stocking and zoning require as little time as possible and hence result in decreased expenses. The main purpose of the Modular Planning Department is to produce modular drawings of basic replenishable merchandise in retail outlets.



Vendors play an important role in assisting and advising buyers in setting up and maintaining modular‟s. In some cases, vendors manage the categories at the retail outlet level. This occurs especially in rapidly changing categories (e.g. computer, software, video games, etc). Modular planning ensures that replenishable items have a permanent home, that modular‟s are credible, safe, and consumer-friendly. The Bharti Wal-Mart modular planning team uses the computer software Modular Image Acquisition to capture the measurement of products and Profloor and Prospace to produce the Plano grams sent to the retail outlets. For information about any of the software, contact the Modular Planning Department. BHARTI WAL-MART MODULAR IMAGE ACQUISITION As imaging becomes more cost effective and personal computers become fast enough to handle large blocks of data, it is useful to incorporate item images into modular drawings. These drawings expose errors in product dimensions and packaging while the modular drawing is still in the conceptual stage. With this in mind, we need your help as vendors in acquiring images and dimensions for modular presentation. Your images will be seen on modular‟s, so it is in your best interest to provide the clearest, most precise images possible, while adhering to the image guidelines. In the following sections you will find the characteristics of the images and how to take the measurements of each one. DESCRIPTION OF IMAGE FILES, CHARACTERISTICS AND MEASUREMENTS



The image must be cropped as shown in the diagram below:

In the editing process you will have to make sure that the image is cropped down to the actual product. If it is not done this way then when the image is pulled up in a modular it will look smaller than the actual dimension of the product and/or it will have the appearance of floating above the shelf fixture. Image Size Image size will slightly vary depending upon the item being imaged. The goal is to create a clear, readable image, while keeping the file size to a minimum. Resolution versus file size should be the main limiting criteria. When looking at the image files with a file explorer such as Windows Explorer, JPEG images should be between 50Kb and 90Kb. TGA images (of Adobe Photoshop) will vary from 100Kb to 495Kb. Another, and possibly easier, way of determining the correct size of an image is to look at its “Pixel Dimension”. “Pixel Dimension” means how many pixels compose an image. This number will stay the same no matter what format it will be saved in. The Pixel Dimension of an image, regardless of it being a JPEG or TGA format, needs to be about 200Kb. This will put the size in the middle of the road for both JPEG‟s and TGA‟s. When saving the JPEG file, you will need to save it at medium quality/compression. This is to ensure that the quality is acceptable while keeping the image size to a minimum. TGA Files



When the product is not square shaped and there is going to be areas of the image that is not part of the product, those areas need to be deleted and set as an “Alpha Channel”, meaning that it needs to be saved as a TGA extension image file. We do this because Prospace treats the area that is a “Channel” as transparent. So we can see only the part of the image that is the product. To make a TGA image with an Alpha Channel select the area of the image those is not part of the product and delete that area. When you save the file make sure it is saving as a TGA file and that you have the Alpha Channels selected in the Save options. Then the program will ask you at what bit rate to save the file: 16bit, 24bit or 32bit. Select 32bit is needed to save with an Alpha Channel. To help keep track and organize the image files, the file by the product‟s UPC. When looking at a product‟s bar code with a 12-digit UPC, you will see that the digits are separated into a 1-5-5-1 pattern. Out of these digits, we will use all of them except for the check digit at the end of the code. Alpha

Therefore, if the UPC is: 0 12800 46216 3 Then the file name is: 01280046216 Orientation



Normally, we take three images of a product: the front, the side and the top. The way that we differentiate the different views is to add an orientation extension of the file name. We take our UPC: 01280046216 Add: 1 for front - 01280046216.1 2 for side - 01280046216.2 3 for top - 01280046216.3 The front of the product is generally determined by taking the largest surface area, not by which side it is merchandised as. Sometimes this is not the case - if the front is obviously something other than the largest surface area, it probably is. It can be a bit of a judgment call. Some product is merchandised so that the bottom (or the base) of the product is faced out. For instance a 50lb. bag of dog food. On these occasions, the bottom needs to be imaged instead of the top. The extension for the bottom image is 9. Examples and criteria for measurements



Typical Measurements The photograph or image must be clear; here are some examples of typical Images: PPAREL Pack Front View Hanger must Hanger must Top

be included be included View

Front View

JEANS, TROUSERS OR APPAREL THAT IS DISPLAYED FOLDED MUST BE UPLOADED WITH BOTH THE IMAGES, TOP AND FRONT VIEW

HANGER MUST BE TOP AND FRON VIEW LATER VIEW HAS TO BE INLUDED IF DRESS SHIRTS AS DISPLAYED IN



INCLUDED IN IMAGE THAT HOW IT WILL BE DISPLAYED THE MODULAR

HANGER MUST BE FRONT VIEW OF PACK NCLUDED IN IMAGE

Apparel images must be by color. If several sizes of the same item need to be displayed together, then the smallest size must be taken in the image. For images of products like mattresses, carpets, bath accessories, bed linen, etc., the image must be that used on the display of the modular, front, lateral or top view. All products that are displayed folded must come with the two images, top & front view, as shown. GENERAL MERCHANDISE The images of the General Merchandise items must include the image of the product itself to be displayed and also the product pack if it will be displayed in the modular:

ELECRICAL APPLIANCES MUST INLCUDE THE MESURAMENTS OF THE PRODCUT ITS SELF AND THE PRODUCT PACK



IMAGES MUST BE CLEAR

GROCERY The images of Grocery products must be clear. Always the top view and the front view must be included as shown:



Vendors can contact the Bharti Wal-Mart Modular Planning Department regarding any doubts or queries at the following address: Bharti Wal-Mart Pvt. Ltd., Modular Planning Department 4th Floor, orchid centre Sector 543, Golf course Road Gurgaon, Haryana – 122 002

LAYOUT CENTER The Bharti Wal-Mart layout center is located at: 1st Floor, Competent House, A 25, Info city, Sector 33-34, Gurgaon, Haryana Working Hours: - Monday to Friday between 9:00 AM and 6:00 PM The phone number of the layout center is 0124-4030114 or email: - [email protected]



PURPOSE The Layout Center provides an area for buyers and vendors to set up and review the arrangement of products before it is drawn and sent to the retail outlets. The Layout Center is important for the following reasons: 1. Helps ensure accuracy by previewing the presentation of product on the correct fixtures before releasing it to the retail outlets. 2. Enables buyers and vendors to create different size layouts to meet the specific needs of all Bharti Wal-Mart retail outlets. 3. Helps ensure that all products fit on the correct fixtures that the flow is logical and the merchandise presentation is customer-friendly. 4. Allows buyers and vendors the opportunity to adjust the merchandise assortment to obtain optimal inventory levels on each modular set (pack and a half). BASIC GUIDELINES TO BE FOLLOWED AT THE LAYOUT CENTER The following are some of the basic guidelines that the vendors need to follow to enable us to serve you better. Your cooperation in adhering to these guidelines will help us save time, money and efforts both for you as well as for ourselves: 1. All invoices accompanying samples to the Layout Center should be marked “ON RETURNABLE BASIS” or “ON NON-RETURNABLE BASIS”, as applicable. 2. All samples to the Layout Center should be delivered in person by the respective vendor representative or by courier only if the courier charges have already been paid by the vendor. Such samples which are sent by courier without the vendor paying the courier charges will not be accepted at the Layout Center and will be returned back to the concerned vendor on “To-Pay” basis. 3. Prior intimation should be provided to the Layout Center Supervisor or Asset Protection Personnel (the name & contact info of whom would be given at a later date) about the scheduled visit by the vendor to the Layout Center at least 24 hours before the scheduled visit. 4. Vendors will be allowed at the Layout Center only between 10:00AM to 4:00PM between Mondays to Fridays. The Layout Center will not be functional on Saturdays & Sundays or any public & national holidays. 5. All vendor visits to the Layout Center should be authorized in writing by the respective department / category buyer at least 24 hours before the scheduled vendor visit and notification given to the Layout Center Supervisor or Asset Protection Personnel.



RULES FOR CREATING MODULARS 1. All samples entering the Layout Center for modular use are free of charge and become Bharti Wal-Mart property unless arrangements for their return have been made with buyers. 2. All modular merchandise must have correct scanable UPC‟s, with the correct packaging (no mock-ups). 3. Vendors are requested to fill in the shelves or peg-hooks to ensure the maximum capacity and that a case-pack and half fits for inventory purposes. Meeting 1 1/2 pack will help prevent out-of-stock situations at retail outlet level. This will also assist vendors to consider the case-pack of products before packaging and completing the OIF. 4. OIF‟s should be handed to the buyer as soon as modular‟s have been approved to ensure the item numbers are created promptly and that the modular drawings are fully updated. 5. All merchandise coming into the Layout Center should be labeled “NEW MODULAR MERCHANDISE” with the DEPT. #, BUYER‟ S NAME AND CATEGORY #.) 6. All vendors must keep modular information confidential. Vendors are prohibited from taking pictures of modular‟s and are to remain in only their designated set-up area. 7. Vendors are expected to help maintain a tidy work area. 8. Wherever possible and whenever applicable, vendors are requested to send empty boxes/containers/jars/cans, etc. as samples to the layout room instead of physical samples, on approval from the buyer or the modular planning manager.



BHARTI WAL-MART PURCHASE ORDER GUIDELINES PURCHASE ORDER ISSUE The Bharti Wal-Mart purchase order will be issued to the vendors by any one of the following modes as chosen by the vendor at the time of the Vendor Agreement: 1. EDI (Electronic Data Interchange) 2. ORBIT (Online Retail Business Information Transfer) The above options have been listed in the Bharti Wal-Mart order of preference. All Bharti Wal-Mart vendors are advised to go through the purchase orders issued by the Bharti Wal-Mart Replenishment Team and revert to either the Replenishment Team or the concerned buyer for any errors, queries or clarifications in the purchase order within 24 hours of physical receipt of the purchase order. Bharti Wal-Mart will not be responsible for errors discrepancies not reported within the above stipulated time frames. In addition, merchandise received at the distribution centers or at the retail outlets with incorrect purchase orders or merchandise will be rejected and sent back to the respective vendor on “To-Pay” basis. PURCHASE ORDER DELIVERY All Bharti Wal-Mart purchase orders will have an Issue Date, Ship Date and a Cancel Date. Issue Date is the date on which the purchase order was generated by the Bharti Wal-Mart Replenishment Team Ship Date is the date on which the vendor should put the merchandise onto transit to the respective distribution center or the retail outlets that Bharti Wal-Mart would supply to, as set forth on the applicable purchase order. Cancel Date is the date on which the merchandise should reach the destination – distribution center or retail outlet as indicated in the purchase order. Merchandise received beyond this date will not be accepted in the distribution center or retail outlet and will be sent back to the respective vendor on “To-Pay” basis. The total time between the Ship Date and the Cancel Date must include the Total Lead Time including and not restricted to manufacturing / production lead time, processing time at vendor‟s facilities, truck loading, transportation, etc. Please note that no changes on the Ship Date or Cancel Date will be accepted if not reported within 24 hours of purchase order receipt. The location of delivery of the merchandise should be at the receiving location mentioned in the Bharti Wal-Mart purchase order. The receiving location can either be a distribution center or a retail outlet.



If there is a problem or discrepancy with the merchandise prior to delivery, the vendors should contact its Bharti Wal-Mart buyers Replenishment Manager or Merchandise Logistics Manager and inform him / her about the errors or discrepancies prior to the Ship Date of the purchase order. In case the concerned associates approve the shipment of the purchase order with the said discrepancy then a written authorization must be obtained from the respective Bharti Wal-Mart Buyers, DMM‟s, Replenishment Managers or Merchandise Logistics Managers before shipping the purchase order to the destination location. Such shipments will be received at the respective locations only if sent along with the original copy of the authorization and other necessary and specified documents.



UPC GUIDELINES UPC GENERAL GUIDELINES To remain competitive in the industry, it is important to stay on top of sales trends and act accordingly. Tracking point of sale information through UPC coding helps Bharti Wal-Mart accomplish that and sell more of your merchandise. Bharti Wal-Mart is taking a firm stand on UPC coding and asks our vendors to support efforts to properly UPC code all merchandise. In re-examining the way we do business, we have challenged ourselves to improve and “do things right the first time”. In order to begin UPC coding, you need to join the GS1 India (formerly EAN India). There will be a Rs. 25,000/- one-time payment and an annual payment of Rs. 5,000/-. On submitting your application and fee, GS1 India will assign your company a unique six-digit manufacturer‟s number. To receive an application for a manufacturer‟s identification number, please contact the GS1 India Office at: GS1 India, #330, 2nd Floor, „C‟ Wing, August Kranti Bhavan, Bhikaji Cama Place, New Delhi – 110 066. Telephone: (+91) 011-2616 8720 or 721 or 725 Fax: (+91) 011-2616 8730 Email: [email protected] Website: www.gs1india.org The following are some of the general guidelines from GS1. These points are also contained in the application for manufacturer identification number you will receive when you apply to become a member of the GS1. 1. Universal Product Code Consumer Package Code The UPC Consumer Package Code refers to the UPC assigned to the consumer package. It must be sufficient to fully describe the consumer unit. Prefix or suffix numbers or letters to show size, flavor, etc. cannot be accommodated. 2. Universal Product Code Case Code The UPC Case Code refers to the UPC assigned to the shipping container. A unique UPC Case Code should be assigned to each change in pack, size, case, colour, or instance in which it is necessary to distinguish the case as a stockkeeping unit.

http://www.gs1india.org/



3. Assigning a UPC The basic rule for assigning a UPC is that identical consumer packages or identical shipping containers should have the same UPC throughout a manufacturing company. Assigning different UPC‟s to the same consumer package or shipping container places a considerable burden on distributors. For example, some manufacturers assign codes depending on the location of the manufacturing plant. The multiplicity of numbers that result from this practice can create a significant computer storage problem. However, a separate UPC is required to distinguish 250 ml shampoo from 350 ml shampoo or a size 15 shirt from a size 16 shirt, even though the price may be the same. The numbering system does not include any descriptive aspects. For example, the 5-digit number assigned by one manufacturer to a given product does not have to be the same 5-digit number assigned by a competitor to its like product, nor does it have to be in sequence with the next size of the same product. 4. New Product coding Three months advance notice must be given to customers when introducing a new product that requires a new UPC number. A new UPC should be used only when a product is initially introduced or an existing product is substantially changed. Changes in weight, package size, or formulation should be issued new UPC codes as well initially introduced products should have a unique UPC code. Price changes by the manufacturer or distributor or regional price differences are not reasons for assigning a new UPC to a product. The end customer confidence in scanning requires absolute pricing integrity in the retail outlet. Any changes to UPC numbers already in use threaten that integrity. 5. Suffix Code The UPC should not include a reference to date codes, packaging dates, place of manufacture, or other information sometimes included on consumer packages. 6. Multiple UPCs Manufacturers should not assign more than one UPC to the same product. For example, Product XYZ manufactured at locations A, B and C should be assigned the same UPC (i.e. 10980-17385) regardless of the place of manufacture. 7. Multi-Pack Consumer Units Products sold in multi-packs; should carry a UPC Consumer Package Code for the smallest consumer sale unit, and a different UPC Consumer Package Code for each aggregation. For example, a 7-stick pack of chewing gum should have a unique UPC Consumer Package Code (i.e. 12345-00061) and, if a 20-stick package were also offered for sale at the consumer level, that unit should carry a different UPC Consumer Package Code (i.e. 12345-00063). Manufacturers should establish specific levels applicable to each of their products. The basic principle for manufacturers to follow would be to assign a unique UPC Consumer Package Code to individual consumer units within a multi-pack whenever these individual consumer units or aggregates are ordinarily offered for sale at the retail level.



8. Reuse of UPC’s A UPC should be re-used no sooner than 4 years after the last shipment to any distributor. A one-year period should apply to promotion packages such as a price-off label. The rule is that the manufacturers should be sure that pipelines are empty and retailers‟ stocks exhausted before re-using the UPC. 9. In-House Private Label A UPC Consumer Package Code should be assigned by the organization controlling the label, but may be assigned by the manufacturer on the basis of a mutual agreement between the organization controlling the label and the manufacturer. 10. Holiday Packs Products with seasonal modifications should carry a unique UPC to facilitate timely inventory rotation and reorder within the distributor‟s organization. For example, candy over-wrapped for Halloween should carry a unique UPC unless the wrapper can be readily removed and the merchandise sold as regular stock. 11. Velocity Coding If a manufacturer does not require 5-digits to identify all his or her products, additional zeros should be placed in front of the current code to make up a 5-digit field. For example, if an item is currently coded 1234 it should be shown as 01234, not 12340. In the longer term, however, it is conceivable that manufacturers may wish to velocity code their high volume items. Velocity coding implies that the highest volume item would receive code number 00001. Manufacturers should carefully consider this implication on the UPC before the system is widely used, since subsequent changes may be very difficult and costly for distributors to implement.



UPC’S AT BHARTI WAL-MART In order to “do things right the first time” vendors must adhere to the following: 1. Our UPC policy is “No purchase order will be written without a UPC code.” 2. UPC codes must be made up as follows: Number System character: A single digit, assigned by GS1 India, serves to key other numbers as to meaning and category type. “0”, “6” or “7” denotes regular grocery and all general type merchandise, “2” denotes random-weight items such as meat and produce, “3” denotes health related and drug items, “4” denotes in-store, in-house marked non-food items, “5” denotes coupons. � Manufacturers‟ ID Code: A 5-digit number, assigned by the GS1 India. � Item Code: A 5-digit number, assigned by the manufacturer, unique to each item. � Check Digit: 1-digit. Serves as a numerical check of the other 12 digits. 3. Review each purchase order received from Bharti Wal-Mart. 4. If you receive a purchase order from Bharti Wal-Mart with the wrong UPC number, STOP -- DO NOT SHIP -- CALL THE BUYER; the buyer will either send you (a) a corrected purchase order or (b) a fax with his or her signature authorizing you to ship. If you fail to take the above steps when the UPC is incorrect, Bharti Wal-Mart will assume you have accepted the purchase order as written; if a UPC problem occurs from this, Bharti Wal-Mart will adhere to our charge-back cost recovery noncompliance program. 5. If one vendor purchases another vendor, and then ships products with both the old vendor UPC and the purchasing vendor UPC, the purchasing vendor must notify Bharti Wal-Mart. 6. UPC bar codes must be test scanned to ensure the numbers match the bar code. 7. Multi-packs: Ensure that the single pack UPC code is obscured and only the multi-pack UPC will scan. 8. All UPC information given to Bharti Wal-Mart must include the check digit. VENDOR CHARGE-BACK GUIDELINES If a vendor fails to advise Bharti Wal-Mart of discrepancies and a UPC problem occurs due to vendor error, Cost Recovery Non-Compliance claims will be assessed (see detail below).



Errors Subject to Cost Recovery Non-Compliance 1. Vendor substitutes merchandise on a purchase order without authorization from Bharti Wal-Mart. 2. Merchandise received is marked with a UPC assigned to a different SKU. 3. Vendor submits incorrect UPC information. 4. Merchandise received does not have a bar code. (Not applicable for fresh food) 5. Bar codes do not scan (e.g. they are illegible or in a colour that cannot be read by the scanner). 6. Bar code bars and spaces represent a different UPC than the human readable code (numbers below the bars). Cost Recovery Non-Compliance The following Cost Recovery Non-Compliance claims will be assessed for non-compliance by a vendor: 1. First Offense: 10% of total item cost per purchase order. 2. Second Offense: 15% of total item cost per purchase order. 3. Third Offense: 20% of total item cost per purchase order. Points to Remember Bharti Wal-Mart has found that minor UPC coding errors can become major problems. Below are points to keep in mind concerning the production, placement, and detail of the UPC codes on your products: 1. Distinguish between UPC and all other bar codes: UPC is the only bar code used for point-of-sale scanning. Therefore, the UPC code on the product must be easily distinguishable from any other bar code such as those that are only used for internal purposes. 2. Submitting the UPC code for a new item: You must include the number system character, the 10-digit manufacturer‟s UPC code, and the check digit (12 digits in all). 3. Sufficient white space around bar code (3/32” or 1 mm) must be allowed to both the right and left of the bar code. Without this space the bar code will not scan. 4. Size of bar code: Bharti Wal-Mart requires each vendor to use a nominal size of .85 to 1.40 magnification factor, which means a symbol which is a minimum of 1.25” wide by .75” tall, to a maximum of 1.75” wide by 1.25” tall. 5. Contrast and Colour: Most point of sale scanning devices are a red laser type, which cannot see red and most shades of purple and blue. Therefore, these colours must not be used in producing UPC bar codes without consulting a reputable UPC symbol producer. Failure to comply with this requirement may result in package changes at vendor‟s expense. Laser scanners read the spaces between the bars of the symbol. (Black bars on a white background are best.)



6. Bar Code Placement: Placement of the bar code is very important. The following is a table of suggested placements:

Container Type Barcode Placement Small Boxes (Can be picked by one hand)

Bottom

Large Boxes (Takes two hands to lift)

Side or Bottom (Depending upon Weight)

Cans Side Packaged or Bagged Back Apparel Hang Tag

(Hang Tags must be securely attached to

merchandise) COMMON UPC PROBLEMS 1. Vendor substitutes merchandise on a purchase order without authorization from Bharti Wal-Mart, causing a not-on-file problem. 2. Merchandise received is marked with a UPC assigned to a different SKU. 3. Vendor submits incorrect UPC information. 4. Merchandise received does not have a bar code. 5. Bar codes do not scan (e.g. they are illegible or a colour that ‟can‟t be read by the scanner). 6. Bar code bars and spaces represent a different UPC than the human readable code (numbers below the bars). Note: When a UPC problem occurs because of vendor error, Bharti Wal-Mart will adhere to its Vendor Charge-back Policy. The UPC charge-back is not applicable to Fresh Food and Bharti Wal-Mart Pre-Ticketed (Pre-Bar coded) Merchandise.





BHARTI WAL-MART REPLENISHMENT OVERVIEW VENDOR EXPECTATIONS / REPLENISHMENT GENERAL GUIDELINES Vendors must deliver complete orders to the Bharti Wal-Mart distribution centers on or before the purchase order Cancel Date. If this cannot be done, then the vendors must discuss the purchase orders with the Replenishment Manager and the push purchase orders with the Buyers. Vendors must deliver 100% of the purchase order. If vendor cannot deliver within this time frame, notification in writing should be given within 24 hours of the receipt of the purchase order. No back orders will be accepted without the authorization of the Replenishment Manager (for Distribution center purchase orders) or buyer (for Push purchase order‟s type 03, 07, 10 and 11). All Assembly Orders (purchase order Types 33 and 37) will be created by the Bharti Wal-Mart Replenishment Team. Merchandise must be delivered as it is mentioned in the purchase orders. Retail outlets & Bharti Wal-Mart distribution centers will not accept any item that does not have the exact Bharti Wal-Mart item number, color, size, UPC or pack configuration. The pack configuration includes quantities, bonus packs, model changes or any other substitutions. There will be no exceptions without prior approval from the Replenishment person responsible for the particular order. Any item that does not match the purchase order will be returned to the vendor at the vendor‟s expense. Such returns of merchandise to the vendor must be accompanied by a standard Return Authorization. All price discrepancies must be communicated to the buyer responsible for the category prior to shipment of the merchandise. Vendors who are on EDI will not receive hard copies of the purchase orders after they have been completed by the Bharti Wal-Mart ISD testing schedule. Vendors who are on EDI should notify the replenishment person responsible that Bharti Wal-Mart ISD testing schedule has been completed. This will ensure that all e-mail transactions for sending purchase order copies purchase are turned off. Vendors currently not on this program should respond immediately to the Replenishment Manager or buyer with an expected EDI implementation ate. This is very important as all it is mandatory for all Bharti Wal-Mart vendors to be on EDI. We will give the contact details of the Bharti Wal-Mart EDI team soon. [COMMENT: mandatory for EDI?] All EDI transmissions should have a functional acknowledgement within 6 hours of receipt of transmission. If the vendor has any queries regarding the purchase orders or replenishments, vendor should contact the respective buyer or the Replenishment Managers at: [email protected]




BHARTI WAL-MART ACCOUNTS PAYABLE DEPARTMENT OVERVIEW Bharti Wal-Mart will pay its vendors as per the payment terms agreed by them at the time of signing the Vendor Agreement. The frequency of payment will be as selected by the vendor in the Schedule C of the Vendor Agreement. Vendors will be paid on their respective payment due dates by any one of the following methods: • EFT (Electronic Funds Transfer) • RTGS (Real Time Gross Settlement) • ECS (Electronic Clearance System) All vendors are requested to give a photocopy of a cancelled cheque along with the Vendor Agreement. This will facilitate identification of the supplier‟s bank account number, IFSC code and MICR code, which are required in order to process the payment by EFT or RTGS or ECS, as the case may be. All vendors who have their bank accounts with non-scheduled or co-operative banks should compulsorily open an account with one of the scheduled banks so as to facilitate e-payment. All bank charges deducted by payee‟s banks will be on account of the vendor. Bharti Wal-Mart does not take the responsibility of bearing such deductibles by the payee‟s banks. If the due date happens to be a holiday, payment would be made on the immediate following working day. The company would confirm payments through e-mail to the e-mail ID provided by the vendor in the Schedule C of the Vendor Agreement. Bharti Wal-Mart does not prefer payments through cheques. Vendors are requested to submit the following documents along with each and every delivery to the Bharti Wal-Mart Accounts Payable Department for timely and hassle-free processing of the payments: 1. Copy of original invoice and 2. Proof of delivery at the respective Bharti Wal-Mart facilities Vendors may send these documents directly to the following address: Bharti Wal-Mart Pvt. Ltd. Accounts Payable Department 4th Floor, Orchid centre, Sector-53 Golf course road, Gurgaon - 122002 Email: [email protected]




CHAPTER – V GENERAL PACKAGING

GUIDELINES



If you become a vendor of Bharti Wal-Mart, it will be important to be familiar with Bharti Wal-Mart‟s general packaging guidelines. GENERAL PACKAGING GUIDELINES – NON-FOOD Remove Packaging • Eliminate unnecessary packaging, extra boxes or layers of packaging Reduce Packaging • “Right-Size” packages and optimize material strength. • Design package appropriately for contents and merchandising requirements. Reuse Packaging • Pallets • RPC – Reusable Plastic Containers Renew (Remove Packaging) • Eliminate unnecessary packaging, extra boxes or layers of packaging Reduce Packaging • “Right-Size” packages and optimize material strength. • Design package appropriately for contents and merchandising requirements Reuse Packaging • Pallets • RPC – Reusable Plastic Containers

As Bharti Wal-Mart continues to focus on being more environmentally sustainable we need to focus on packaging that is good for the environment and good for business. Product and package quality does not need to be compromised in order to deliver a environmentally sustainable package. Use these following principles and work with the category buyer to focus on business criteria, a better package design for our customer and the Environment will be achieved.



Renew (able) Packaging • Use materials made of renewable resources • Select materials that is biodegradable or compostable Recycle (able) Packaging • Use materials made of highest recycled content without compromising quality • Use Post Consumer Recycled Material (PCR) where appropriate • Components should be chosen based on recycle ability post use • Build packaging out of single material components for easy sorting and recycling ENVIRONMENTAL SUSTAINABILITY – MATERIALS LIST Wood / Paper Fiber Preferred Materials: • Highest recycled content without compromising required strength and quality • Virgin-wood fibers certified by an independent, third-party sustainable forestry organization • Corrugated constructed with wax replacement materials Less Desirable Materials: • Do not use ancient forest fibers • Do not use heavy metals or other toxins • Reduce usage of hazardous chlorine compounds • Wax impregnated Medium, Curtain Coated Corrugated, Cascade Boxes Plastics Preferred Materials: • High-Density Polyethylene (HDPE) • Low-Density Polyethylene (LDPE) • Poly ethylene Teraphthalate (PET) • Recycled Polyethylene Teraphthalate (RPET) • Ethylene Vinyl Acetate (EVA) • Polypropylene (PP) • Polylactic Acid (PLA) Less Desirable Materials: • Polyvinyl Chloride (PVC) • Polyurethanes (PU) • Polystyrene (PS) • Acrylonitrile Butadiene Styrene (ABS) • Polycarbonates (PC) • Acrylic



Blister Packaging This type of packaging has very good performance if Vendor / Co-Packer take the necessary Quality Control steps during the assembly process. Proper adhesion of Blister to Card is imperative and must be tested periodically during the package assembly process. Failure to perform proper testing throughout the process can result in blister separating from the backer card and merchandise spilling out. Trapped air pockets between the card and the blister are obvious signs of less than acceptable quality. Proper adhesion testing should yield a destroyed card when blister is removed, i.e. card should delaminate pulling substantial amounts of material from the card. It is not recommended the small high price point merchandise to be placed in this type of packaging. Note: Minimum material caliper for the blister packaging should be 10mil

on 4” surface area or smaller. Material caliper will increase exponentially as surface

area increases.



Clamshell Packaging Poly Vinyl Chloride (PVC) is currently the most common material used in blister packaging, clamshell and other types of plastic packaging. Note: Bharti Wal-Mart as taken a leadership role in Environmental Sustainability and is requesting merchandise suppliers to discontinue the use of PVC in favor of environmentally compliant materials (RPET / PET / PLA). Higher price point items such as toner cartridges (small items) as shown below should be placed in RPET / PET / PLA packaging. This can be accomplished in one of the two methods, fully heat sealed or using water based adhesive for permanent closure. This type of packaging is more secure than folding carton design and still has good consumer appeal. Benefits are lower shrinkage in categories as designated by the Asset Protection (AP) coordinators and your buyer.

Note: A minimum of 16mil is required on Clamshell Packaging

Note: This is not a preferred packaging format due to high usage of plastic



Clamshell Packaging / Friction Lock Using friction buttons or stapling a clamshell to close / seal is not permitted. All Clamshell packaged merchandise should be completely sealed. It can be sealed in such ways as heat seal, water based seal etc. for permanent closure. Note: Minimum caliper on Clamshell packaging is 16mil

Note: This is not a preferred packaging format due to the high usage of plastic



Clamshell with Insert

Photo below shows merchandise placed in a securely sealed clamshell utilizing a card insert. This type of packaging is secure, low risk, and still maintains adequate presentation for customer appeal.

Note: Minimum caliper on Clamshell packaging is 16mil



Blister with Sliding Backer

High risk Sliding Backer & Blister as shown below are easily defeated. Corrective action

should require a fully sealed Clamshell or Blister type packaging.

Do NOT use this type of packaging



Zipper Bagged Packaging

Product packaging utilizing a zipper bag requires a nylon or equivalent locking device to prevent other merchandise from being placed in the bag.



Multi-Pack Packaging Multi-Packed items will have a single UPC code on the outside of the pack. If possible individual items within the multi-pack should not have individual UPC Codes. When packaged in the Multi-Pack, individual UPC must be placed in such a manner that they CANNOT be seen, or scanned at the register.



Shrink-wrap Film

Merchandise utilizing a shrink-wrap film for security, should also bear the manufacturers logo or other graphic in a repeated format as shown below. Using this type of security film cannot obscure the UPC Code in any way.



Packaging Security Tape

Where possible, all box flaps should be permanently sealed using hot or cold set glue. Where gluing is not possible and taping is required, ensure tape is adequate for the application and weight of product. High risk merchandise should use a Safety Tape with a repeated logo or

other artwork that will show tampering when an attempt to open the packaging is made.



UPC Code Placement

Our Associates handle thousands of pounds of merchandise every day at retail outlet registers. Some of the merchandise is heavy, bulky and troublesome to check through registers. UPC locations are not always in an appropriate location for scanning ease at the register, which slows down the efficiency of checking customers through in a timely manner.

We need your support in implementing a program to place UPC’s in strategic location on your

packaging of heavy or bulky items. Extremely large items will require a removable UPC. See some examples below of heavy, bulky items requiring multiple UPC locations.

NOTE: Please review your current product packaging formats, and adopt a

strategic UPC Placement program similar to examples as noted in illustration above to assist. EAS source tagged merchandise cannot have multiple barcodes.



Adhesive UPC Labeling

Permanent UPC’s: Where possible, UPC’s should be permanently attached or printed to the

merchandise, or merchandise packaging. Exception to this would be gift items where a temporary adhesive can be used.

Temporary UPC’s: When UPC’s are adhered to merchandise packaging, or directly to the

merchandise using an adhesive label, the merchandise becomes a high risk item. Meaning the UPC can be removed and placed on other merchandise. To prevent this, all temporary UPC labels must have tamper cut surface. Tamper cutting makes it extremely difficult to remove the

entire UPC without damaging or destroying it.

NOTE: When using cutting UPC labels it is imperative that the tamper cuts do not come in

contact with the UPC / Bar Code.



UPC Sizing Standards GS1 India allows different size symbols, known as magnifications. All include the clear areas before and after the bar code known as Light Margins. The minimum size of the barcode is 80% and the maximum size is 200%. When 100%, the dimension of the barcode should be 37.3

mm by 26.3 mm. The “clear areas” or Light Margins should be a minimum of 11 times the

width of the narrow bar within the bar code on the left side and 9 times on the right for EAN-13 Barcode. All Point of Sale scanning devices are Red Laser and these scanners blind to Red, Blue, Yellow and Shades of Purple, included but not limited to Pastel Colors. Do not use these colors when producing UPC codes. Should you have any further questions or queries please contact: GS1 India,

330, II Floor, “C” Wing,

August Kranti Bhavan, Bhikaji Cama Place,

New Delhi – 110 066.

Phone: +91-11-26168720 / 21 / 25 Fax: +91-11-26168730 Email: [email protected] Website: www.gs1india.org

NOTE: At 100%, the size of the EAN-13 bar code is 37.3mm by 26.3 mm



Alternatives to Traditional Packaging Environmentally Sustainable packaging and theft deterrent packaging can be achieved together in most instances and are encouraged. Technology advances in recent times have made it possible to achieve the best of both worlds at minimum or even lesser costs than that of traditional packaging, and should be pursued where possible. Corrugated Materials, Shrink Films and select Plastics (RPET / PET, PLA, etc) can be recycled. Corrugated Container Solutions offer tremendous increase in performances for stacking strength and custom design features for in store displays.



GENERAL PACKAGING GUIDELINES – FOOD Bharti Wal-Mart strives for consumer safety and well-being and hence makes it mandatory for all its packaged food vendors to adhere to the various Indian laws governing the food packaging industry.

GENERAL GUIDELINES All the packaging materials shall meet relevant standards of BIS (Bureau of Indian Standards) pertaining to safety, quality and performance wherever applicable. All materials used in food packaging should be food grade only. The various laws require that manufacturers / re-packers of food use only packaging materials like PET (Poly Ethylene Teraphthalate), glass and aluminum foils for food packaging. All packing material of plastic origin should pass the overall migration and color migration limits as laid down by the various Indian Standards Acts. The preferred packing material for all acid-based food like pickles or foods which contain alcohol or fats (wine, cheese, butter, oil, etc.) is glass only. Bharti Wal- Mart strongly recommends all its vendors who supply such food to use glass as the packing material. In case it is not possible for the vendor to use glass as a packaging material for such products then a food grade plastic as recommended by the BIS (Bureau of Indian Standards) for this type of acid-based products may be used. However the vendor should produce the necessary certifications from Bureau of Indian Standards to support the same.

PACKAGED FOOD MARKING All packaged food shall contain the following information on the outside of the package: • Name, type and style of the product with the brand name, if any • Indication of the source of manufacture • Net mass in grams • Batch or code number, indicating the Month & Year of Manufacture • List of Ingredients in descending order • The words “Best Before”……………….(Month and Year to be indicated) • Any other information required under the Standards of Weights and Measures (Packaged

Commodities) Rules, 1977 and Prevention of Adulteration Rules, 1955. For further details please contact: Bureau of Indian Standards Manak Bhavan, 9, Bahadur Shah Zafar Marg, New Delhi 110 002 Phone - +91-11-2323 0131 / 3375 / 9406 Fax - +91-11-2323 9399 / 4062 Email – [email protected] Web – http://www.bis.org.in



CHAPTER – VI DISTRIBUTION

CENTERS



If you become a vendor of Bharti Wal-Mart, it will be important to be familiar with Bharti Wal-Mart‟s distribution center processes. DELIVERY TO BHARTI WAL-MART DISTRIBUTION CENTERS BOOKING All Bharti Wal-Mart vendors who deliver the merchandise at the Bharti Wal-Mart distribution centers should make an appointment with distribution center Manager at least 24 hours in advance. The vendors can cancel this appointment up to 4 hours ahead of the scheduled appointment. Vendors will be given a grace time of 15 minutes to check-in the distribution center ahead of their scheduled appointment and a grace period of up to 2 hours in case they are late. For example: If a vendor has taken an appointment with the distribution center Manager for 10:00 AM on the 01st of July, he can check-in to the distribution center by 9:45 AM on the 01st of July or by 12:00 Noon on the 01st of July. If the supplier misses the appointment without cancelling it, then he/she would have to make a new appointment as per the guidelines stated above. A Bharti Wal-Mart distribution center will receive late-comers the same day only if distribution center‟s their workload permits. Bharti Wal-Mart does not provide a guarantee of any sort to receive the late comers the same day and the responsibility for late arrivals at the Bharti Wal-Mart distribution centers will only rest with the vendor. Bharti Wal-Mart will notify vendors of the contact telephone numbers at the distribution center through which the appointments have to be taken at a later date. All vendors should provide the following information while contacting the Bharti Wal-Mart distribution center for an appointment: • Purchase order number and company name • Delivery quantity of purchase order • Date and time for delivery at distribution center • Supplier phone number and contact person • Total purchase order and total cases Bharti Wal-Mart distribution center Receiving Timings: 9:00 AM to 6:00 PM from Mondays to Saturday Bharti Wal-Mart distribution centers will remain closed on all Sundays and all public and national holidays. Caution for Appointment Before the appointment, the vendor must ensure that his/her Purchase Order purchase orders are clear in all respects and that the purchase orders to be appointed are active.



This will reduce unnecessary and additional or repeated appointment and operation time. Vendors can ask buyer about their queries if they are in doubt with any of their purchase orders. All vendors must be sure about the delivery date, time & delivery quantity of their respective purchase orders to avoid unnecessary delivery reschedules and cancellations. A 5-digit appointment number will be given to all vendors who book an appointment with the distribution center. The first two digits of this appointment number will be the delivery date and the last three is the Bharti Wal-Mart distribution center appointment sequence number. Only one appointment number will be given to the vendor on a particular day. The vendor should ensure that it is provided with its respective appointment numbers before it finishes the booking of their appointments. Appointment Rescheduling & Cancellations The vendor should call the Bharti Wal-Mart distribution center for all appointment rescheduling or cancellation at least 2 hours before the scheduled delivery time. The vendor should provide the following information for reschedule or cancellation of their appointment: a) Appointment number b) Company name c) Purchase order number d) 9-digit Bharti Wal-Mart Vendor Number e) Reason for reschedule / cancellation f) Supplier phone number and contact person Requirement for unloading Bharti Wal-Mart does not take the responsibility of unloading the goods from the delivery trucks. Ensuring proper and adequate unloading manpower rests with the vendors only. The delivery manpower should be well trained with the Bharti Wal-Mart unloading procedures. Adequate manpower should be sent along with the deliver trucks as per the following guidelines:

Delivery Vehicle Spec Unloader Deliverer

Light Van (< 1 ton) At least 1 (One) At least 1 (One)

Van (>1.25 & <1.5 ton) At least 2 (Two) At least 1 (One)

Truck (>1.5 ton) At least 4 (Four) At least 1 (One)



If there are several trucks being sent for delivery, then the unloading and delivery manpower should be sent as per specification guidelines specified above. Unloading Guidelines • Cartons containing more than one item must be unloaded by purchase • Ensure to unload all the cartons on the Bharti Wal-Mart pallets • Merchandise with React Numbers (item numbers with 9 digits for product categories like Softlines, shoes, bulk food, weigh-up food, etc.) has to be separated from the rest of the merchandise • Merchandise with accessories should be grouped by retail outlet, and the accessories should be on the same pallet with the main body • Ensure the safety of the goods while unloading • Liquid merchandise and merchandise with special specifications should be unloaded as per the arrow specifications • Metal pail oil, plastic packed freight, mini packed freight and colorful packed freight should be placed on a piece of cardboard upon the pallet • Adhesive tape should be used to reinforce the freight which is not firm enough Bharti Wal-Mart Price Tag Placement • Jackets, Outerwear, and Tops & Sweaters: Tag to be placed in neck label. See llustration 1 • Shorts, Skirts, and Pants & Jeans: Tag to be placed in left waistband seam. See Illustration 2 • Maternity: Attach the tag to the middle of the back seam, below the waistband. See Illustration 3 • Ladies‟ Swimwear: Tag to be placed in left armhole seam. See Illustration 4 • Dresses, Robes, Gowns: Attach the tag through the label in the back of the neck. If the label is not inside. See Illustration 5 • Handbags: Tag should be placed around the shoulder strap. Do not place the tag around a detachable strap. See Illustration 6 • Hats: Attach the tag through the top seam OR attach the tag through the inside band OR attach the tag through the inside band on the left side. See Illustration 7 • Gloves: Attach the tag through the point where the pair is joined together or to the header card if available. Caution: If leather, then tag should be placed through the label. See Illustration 8 • Packing Apparel: Pressure sensitive label should be affixed to the upper right hand corner. Be careful not to cover the size. See Illustration 9 • Slipper: Ticket on right slipper‟s bottom with sticker • Packed Children Shoes: Pressure sensitive label affixed to the upper right hand corner. Be careful not to cover the size. • Suit: Tag through the label of in-side pocket



Regulation for Toys There must be only one UPC on every unit of the merchandise, and it must be according to the purchase order. Any other UPC code must be covered in order to make sure that they are non-scanable. The correct UPC must be scanable and should be in accordance with the GS1 guidelines for bar coding. The digits read by the scanner must match the digits on the UPC bar code.



No Show Sometimes a vendor will book an appointment, but doesn‟t keep the appointment which is referred to as “NO SHOW” in Bharti Wal-Mart. This causes a waste of space, and delays other vendors who want to deliver. At the same time, the receiving system has to be kept in waiting status, which brings inconvenience to the entire distribution system. If a vendor cannot ship on time, it is important and necessary to inform the Bharti Wal-Mart distribution center in advance (or as soon as possible). Cancelling a booking could avoid “NO SHOW” problems. When a purchase order is received by the vendor, check to make certain there are no differences between the merchandise to be shipped by the vendor and the purchase order. Pay attention to the UPC/EAN, pack quantity, vendor stock number and the description labels. Any problem should be referred to the buyer as soon as possible. Working together we can solve and avoid such problems. Please remember that the following will lead to rejection and hence non acceptance of deliveries in the Bharti Wal-Mart distribution centers: a) Wrong UPC/EAN bar code b) Wrong pack

• The pack quantity of each case does not match the purchase order • Damaged merchandise, shortage or overage of some shipments • The carton marking does not match the inner pack • The package space is not fully filled with merchandise

c) Other rejection causes • Vendor stock on the merchandise should match the type on the purchase order • Incorrect format of the manufacture date or the expiry date (The correct format of these dates is DD/MM/YYYY)



Safety Rules & Regulations (Do’s and Don’ts)

Do’s

1 All visitors are requested to wear shoes for safety

2 Visitors are required to wear the badges at all times, while inside the premises

3 Visitors to declare any Camera/Laptop and other electronic gadgets at security

4 Pls take signature of the concerned persons on the pass and return to security while exiting

5 Visitors to co-operate with security staff for carrying out the defined operational procedures

6 We have the frisking policy while entering and exiting from the DC

7 The premises follow one way traffic rules. Please follow the guidelines displayed

8 Prior approval from VP Logistics to be taken for entry to the DC

9 Follow traffic rules and no blow of horn

Don’ts

1 Smoking is strictly prohibited in all areas of this site

2 No eating/chewing & spitting is allowed

3 Photography is not allowed in the premises

4 Please allow security to check your belongings at entry and exit

5 Use of mobile phones is not allowed on the shop floor

6 There are some restricted areas where access for visitors is not permitted

7 Trucks will not be allowed to reverse without someone to marshal

DIRECT-STORE-DELIVERY (DSD) PROCESS For DSD vendors, a normal purchase order will be created by Bharti Wal-Mart Replenishment Team. Merchandise will have to be delivered at the respective retail outlet along with a copy of the invoice. The invoice must have the following information on it: 1. The relevant Purchase Order Number 2. Details of applicable taxes (whether VAT or CST) 3. Ship To: address should be of the respective retail outlet mentioned on the purchase order 4. Bill To: address should be of Bharti Wal-Mart The retail outlet will receive the merchandise against the Purchase Order Number mentioned on the invoice. The vendor will be paid based on the actual quantity received by the respective retail outlet. Please note that for accounting purposes, the Proof of Delivery (POD) that you will receive from the retail outlets will have quantity confirmations only.



MASTER PACKS A “Master pack” is a carton that contains more than one “Vendor Pack”. An example would be when a purchase order calls for an item to be packed 6/6 (Vendor Pack 6/Distribution center Pack 6) but instead it is shipped in a carton of 72 (12 cases of 6/6 pack‟s per carton). If you decide to ship in Master packs, despite our recommendation to the contrary, one or more of the following situations may occur: 1) The distribution centers might receive the Master pack as a Case-Pack (see page 104) and could possibly send the entire Master pack to one retail outlet. This would cause inflated levels of inventory being delivered to that particular retail outlet and zero inventories in other retail outlets. 2) In such a case a shortage will appear on the receiving end and a claim will be filed against the vendor for said shortage. 3) Accounting and the distribution centers have no way of verifying freight once it has been shipped to the retail outlets. If you choose to use Master packs you should take note of the following: • Bharti Wal-Mart distribution centers do not have a way to identify and process Master packs. There is no way to identify a Master pack in the Bharti Wal-Mart item file. • If a vendor insists on using Master packs the word “Master pack” must be clearly visible on all sides of each and every Master pack carton along with a label notifying the DISTRIBUTION CENTER that they must breakdown the carton. • The only allowable markings on a Master pack are:

• The word “Master pack” • A shipping address label • A Bharti Wal-Mart 10-digit purchase order number • Do not include any bar codes on the carton • The bill of lading and packing slip must also indicate that the order is being Shipped in Master packs.

***Please be advised that you have been properly notified and are shipping at your own risk***



Important to note for all General Merchandise and WPM Domestic vendors: 1. If the vendor ships in Master packs they are waiving the right to dispute any claim for any shortages related to this issue with Bharti Wal-Mart. 2. Allowable pack types

• Whether an item is SS, D or A, the pack type will indicate how the DISTRIBUTION CENTER processes the items.

There are two different pack types, case-pack and break-pack. WPM items are created like break-pack in the system, but are handled as case-pack.

• Master packs apply to import vendors ONLY. • Master pack notation must be included on bills of lading and packing slips.

3. Case-pack considerations • An item is created with a pack of 1/1, which indicates the vendor will ship one retail unit in a case and the retail outlet will receive one retail unit. • An item is created with a pack of 6/6 which indicates the vendor will ship six retail units in a case and the retail outlet will receive a case of six retail units.

4. Break-pack considerations • If it is not practical to sell an item to the retail outlets in a full case pack quantity and the inner unit is too small to be conveyable, there is also a break-pack area in all distribution centers. • A break-pack item is any item with a Vendor Pack quantity that is larger than the Distribution center Pack quantity. These items will be ordered from the vendor in the Vendor Pack quantity. Within the Vendor Pack, the vendor is required to pack the merchandise according to the Distribution center Pack quantity. The case is then broken down to the Distribution center Pack quantity in the break-pack or distribution center‟s processing area to be re-packed with other break pack items. • Break-pack box dimensions: o 15” Height x 18” Length x 15” Width**

**Do not pack items larger than these dimensions Examples: • An item is created with a pack of 4/1 which indicates the vendor will ship four retail units in a case and the retail outlet will receive one retail unit re-packed with other break-pack items. • An item is created with a pack of 48/12 which indicates the vendor will ship forty-eight retail units packed in four inner cases of twelve in a case. The retail outlet will receive a case of twelve retail units repacked with other break-pack items.





5. WPM considerations

• WPM – Bharti Wal-Mart Pre-Ticketed Merchandise • A WPM item is created as if it was a break-pack, but it is handled in the same manner as a case pack.

Example:

• An item is created with a pack of 12/1 which indicates the vendor will ship twelve retail units in a case, and instead of sending the retail outlets one retail unit, they will receive the entire case of twelve retail units.

PURCHASE ORDER PROCESSING CONSIDERATIONS 1. Large Quantity Orders

• If a large order is placed and the average quantity going to each retail outlet is the same or close to the number of cases that will fit on a pallet, have your buyer create it as a pallet pull item. The distribution center can process 130 pallets with 50 cases on each pallet much faster than they can unload and label 6500 single cases. • The item number and purchase order must be built accordingly in the system.

2. Purchase Order Changes • Any changes made to a purchase order by a vendor or buyer, after it has been sent to the vendor, MUST be communicated to all parties. Changing the purchase order in the system will not update the information the vendor has. If the vendor has not shipped the merchandise, it will be able to make the necessary changes. • If the vendor has already shipped the merchandise, the vendor MUST contact the appropriate distribution center traffic department and notify them of the changes immediately. If the distribution centers are not informed of the changes, a lot of time will be wasted investigating the discrepancy. The results of that investigation will most likely indicate that the merchandise is a non-compliance order. Also, the vendor will incur non-compliance charges. • If the vendor informs a buyer of a change and it is acceptable, the changes must be notified to the concerned Replenishment Associate and a new purchase order MUST be generated to reflect the change(s). If the change is not made, a lot of time will be wasted investigating the discrepancy. The results of that investigation will most likely indicate that the merchandise is a non-compliance order. Also, the vendor will incur non-compliance charges. However, if the change requested by the vendor is in terms of lesser quantity than was originally mentioned in the purchase order, then the vendor can ship the quantity against the same purchase order.



3. Purchase Order Ship and Cancel Dates

• Every purchase order has a “Ship” and “Cancel” date. The ship date is the earliest date the vendor can ship the purchase order and the purchase order cancel date is the latest date the vendor can deliver the merchandise.

4. Staple Stock Items on a Distribution Purchase Order • On Occasion -- an upcoming promotion for example -- it is necessary to provide the retail outlets with a large amount of a staple stock item; this could be done by creating a „Distribution Purchase Order‟ for the staple stock item. If a distribution order is created with a staple stock item, DO NOT CHANGE THE PACK ON THAT ITEM. The distribution pack quantity must be the same as the Staple Stock pack quantity.

GENERAL CARTON QUALITY AND MARKING REQUIREMENTS MARK ON CARTON The name of the merchandise must be marked on the package and identical with the items inside. Inner Packs description The name of the manufacturer or trader Crispness freight, liquid freight and those need have a specific pose while being delivered must have a warning marking (e.g. arrowhead, limited layers) A list of inner merchandise must be affixed to the surface of carton which contains more than one item and is one kind of special freight received based on consolidation. The list includes: purchase order number, item number and quantity of the merchandise in the case. Merchandise without purchase order, such as single gift, sample etc, which have to be received manually need an outside-marking containing the below information and to be affixed on the carton: MARK SAMPLE



The requirement of Packing • Size of the pack should not be over 90cm x 75cm x 65cm

• Length 90CM、Breadth 75CM、Height 65CM；

• Per cases‟ weight not to be over 25kg • The inner pack quantity must accord with the purchase order except cartons which are filled with more than one item. • Overage, shortage, damage, wrong item, wateriness and qualitative change should be avoided. • Every piece must be complete merchandise. • Stuffing (e.g. thermacol, cardboard, foam, etc.,) must be put between every two pieces of breakable merchandise. • Liquid freight and specific freight must be put as specified. • The carton must be fully filled. • If the carton is filled with several items, each item should have individual packaging and the inner PKS of the items must accord with the purchase order. DISTRIBUTION CENTER HANDLING The Bharti Wal-Mart Logistics Network incorporates technology as part of providing exceptional service to retail outlets. Due to the high volume of freight flow, Bharti Wal-Mart requires the following packaging quality to ensure efficient distribution center processing. DISTRIBUTION CENTER CONVEYABLE BOX Bharti Wal-Mart prefers all merchandise be packaged and able to withstand the normal conditions within a distribution center. Conveyable cases are: Minimum Requirements For All Sites: Minimum 228.6mm Length, 101.6mm Wide, 76.2mm Height – Weight 1.36 Kgs Maximum Requirements For All Sites: Maximum 1066.8mm Length, 609.6mm Wide, 914.4mm Height – Weight 31.82 Kgs Cases and packaging may be subjected to compression, vibration, abrasion and temperature and humidity changes during normal handling and processing. DISTRIBUTION CENTER NON-CONVEYABLE BOX Bharti Wal-Mart prefers that all boxes be conveyable. Boxes/Packages, which fall under the following criteria, are not conveyable and should be avoided whenever possible.



Protrusions: Package has protrusions, plastic banding, or metal

banding on the outer packaging material. Case Size: Dimensions are greater or less than the

conveyable case size requirements. Wrong Package Structure: Bags not enclosed within a box. Shape: Containers are round or irregularly shaped. Strapping: Items are loosely strapped. Hazardous: Liquids hazardous to associates or conveyors if

broken. Weight: Cartons less than 1½ Kgs. or more than 30 Kgs. Fresh fruits and vegetables if routed through the Bharti Wal-Mart distribution centers should be preferably shipped in crates of the following dimensions: For Fruits – 510 x 360 x 310 (L X W X H in mm) For Vegetables – 540 x 360 x 290 (L X W X H in mm) ADDITIONAL CONSIDERATIONS: Container Surface All cartons and packaging surfaces must be flat and strong enough to support its weight without distortion, deflection or bending. Adhesives Since distribution centers are located throughout India, flaps should remain secure with an adhesive that can withstand normal handling, compression, humidity and a range of temperatures. Openings, Gaps & Windows Any openings or windows on a case should be capable of being used as hand holds during the order-filling process. Perforated Cartons Perforated cartons must be able to withstand distribution center handling without damage or the carton opening. Shrink-Wrap Cartons may be wrapped with shrink-wrap as long as the mil is thick enough to hold up to normal distribution center processing (80gauge, 15"). Merchandise that is placed on pallets must be wrapped to prevent damage during shipment. Please do not put labels on the shrink-wrap. Secure labels on the inside of the wrap. CARTON MARKING AND LABEL REQUIREMENTS Bharti Wal-Mart established these guidelines to improve our processing accuracy and get the freight to the retail outlets more efficiently. Bharti Wal-Mart requires the following information on all standard vendor cartons shipped to distribution centers:



� Product identification information (Carton Marking) � Non-standard carton identification (Carton Marking) � SCC–14 shipping container bar code (Label) � Shipping label (Label) � Standard shipping cartons are full cases containing one or more retail selling units (“Eaches”). CARTON MARKING GUIDELINES � All cartons must have the following information printed on at least two sides of each standard pack-shipping container as is described on the following page: � Vendor stock number � Description of product � Color, size or style (if applicable) � Pack (number of selling units in carton) � “Master packs” are not encouraged by Bharti Wal-Mart � The number of cartons that can be stacked on top of this carton Note: Both General Merchandise & WPM Domestic vendors are expected to ship in vendor cases, NOT “Master packs”.



� Carton marking information may be printed directly on the corrugated carton or printed on a label and applied to the shipping carton. If stenciling is the only means to mark the cartons, then a minimum of one quarter inch (1/4”) lettering must be used. Exceptions would only pertain to bagged products or non-corrugated packaging (i.e. potting soil, bagged dog food, ladders, etc.). Carton markings should not be confused with shipping labels. Carton markings identify all information that is particular to the vendor while the shipping label identifies information that is particular to Bharti Wal-Mart such as where the box is being shipped, purchase order number, item number, etc. It is permissible to print all the carton markings on the shipping label. This label should then be placed on at least one side of the product. PALLETS Use of pallets for shipping merchandise from the vendor location to the Bharti Wal-Mart distribution centers is not mandatory as yet. However if some of the vendors shipping bulk merchandise would like to use pallets for shipping then the following guidelines need to be followed. Pallet Standards Width: 3‟4” (40” / 101.6 cm / 1016 mm) Length: 4‟0” (48” / 121.92 cm / 1219.2 mm) Heights: Merchandise must be stacked no higher than the following height to maximize the cube space in all the distribution centers. Overhang: Merchandise must be stacked on pallets, with no overhang of product over the edge of the pallet. Stack by Item: The merchandise must be segregated and stacked on the pallet by item. Double Stacks: Pallets may be double-stacked in the trailer, providing the weight and/or height will permit it. STRETCH WRAPPING REQUIREMENTS: PURPOSE OF WRAPPING: All palletized merchandise must be stretch-wrapped to help prevent merchandise loss or damage during shipment. Please do not put any labels on the stretch wrap. Always ensure all labels are securely placed on cartons, on the inside of the stretch wrap. STRETCH WRAP MATERIAL: Stretch wrap must be of top quality in stretch, memory and retention. Specifications must be 80-gauge 15”, the equivalent of Mobil, Borden, Lineal or other reputed brands.



PROTECTION FROM PILFERAGE: Ensure that the top layer of a stretch wrapped skid is completely covered by a carton sheet or stretch wrap material to prevent cartons of merchandise from being removed from a pallet before delivery. PALLET USAGE Vendors are not required to ship purchase order types 33, 03, or 53 (distribution freight) on pallets to distribution centers. All staple stock products, purchase order types 20, 22 and WPM products, purchase order types 10, 12, 16 can be shipped on pallets. Exceptions can be arranged for oversized merchandise.



PREVENTIVE MEASURES FOR DISTRIBUTION CENTER PROBLEMS Listed below are reasons why problems may arise and steps that can be taken to eliminate problem freight. I. BILL OF LADING Shipping guidelines require that one bill of lading is needed for all orders shipped on one load. However, when we have problems with a vendor, it might be necessary to request the following:

1. One bill of lading for each order shipped. 2. A master bill of lading plus one bill of lading for each order shipped in one trailer. 3. The master bill of lading should have the number of cases per purchase order that is included in that shipment.

II. PACKING SLIP A packing slip should be included with the merchandise attached to the last carton going into the trailer. A second packing slip should be made available to the carrier with the bill of lading to be presented to the manifest office at distribution centers. III. LABELING Please refer to the specifications on carton and shipping labels. IV. OVERAGES Most reported overages traditionally are mis-applied freight that have not been identified on the bill of lading or freight bill (i.e. the freight bill shows one purchase order, but the vendor has two orders on the bill of lading). Having all the proper documentation gives us a better chance of receiving the freight correctly. V. OVERAGES -- ONE ON ONE LINE, SHORT ON ANOTHER LINE If the stock numbers are very similar and the box size is the same, it is easy for the pickers to pull the wrong freight at the vendor‟s distribution center and for slotters to misapply the freight to the wrong line. To keep this from happening, be sure the stock numbers are large enough to be easily read and even color code the cases if applicable. Refer to the specifications on carton marking and shipping labels. VI. SUBSTITUTIONS Authorized substitutions can still be a problem for distribution centers if the orders have not been corrected to reflect the change. In order to correct Bharti Wal-Mart‟s orders before the freight arrives at distribution center, the vendor should contact its buyer for approval. After approval has been received and the changes have been made on the purchase order the vendor should contact the affected distribution centers‟ traffic department. VII. WRONG PACK Any pack that is different from what is on Bharti Wal-Mart‟s order will be a problem for distribution centers. If the pack is changed, or if Bharti Wal-Mart‟s system is wrong, the appropriate buyer must be contacted to correct the problem.



VIII. NOT IN SYSTEM (PO NOT IN DISTRIBUTION CENTER SYSTEM) The Bharti Wal-Mart system releases purchase orders into distribution centers system just prior to the ship date on the order. The order will stay in the distribution center system for four days to forty-five days after the cancel date depending on what type of order it is. It is important that the merchandise is not shipped too early to prevent its arrival prior to the ship date. It is also important that the merchandise is not shipped so late that the order has already dropped off of the distribution center‟s system. In either of these events, the buyer must be notified. He/she will determine what Bharti Wal-Mart‟s needs are and either authorize the change or cancel the order. DISTRIBUTION CENTER ADDRESS & LOCATION MAP Location I Bharti Wal-Mart Pvt. Ltd. Distribution Center # 7401, Chandigarh – Patiala Road, Village & P.O. – Banur, Tehasil – Rajpura, District – Patiala, Punjab – 140 601 India. Location II Bharti Wal-Mart Pvt. Ltd. Distribution Center # 7404, NH-2 Delhi-Mathura Road, Village Mitraul, Tehasil – Hodal, District – Palwal, Haryana – 122001 India In case of any problem with deliveries please email at the following address: Email: [email protected]




Road Map Banur DC:

Road Map Palwal DC:

KMP

Express

Way

NH-2

Highway

AGRA

5 KM

DelhiNorth

PALWAL

DC

KMP

Express

Way

NH-2

Highway

AGRA

5 KM

DelhiNorth

PALWAL

DC

KMP

Express

Way

NH-2

Highway

AGRA

5 KM

DelhiNorth

KMP

Express

Way

NH-2

Highway

AGRA

5 KM

DelhiNorth

PALWAL

DC



ANNEXURE – BHARTI WAL-MART TERMS

& GLOSSARY



BHARTI WAL-MART TERMINOLOGY LISTING If you become a vendor of Bharti Wal-Mart, it will be important to be familiar with Bharti Wal-Mart‟s terminology. The purpose of this list is to provide a convenient reference source for some of the basic terms, abbreviations, acronyms and phrases used in Bharti Wal-Mart. It is not intended to be comprehensive, but rather to offer ready identification of some of the more frequently encountered terminology. Terms Definition 2% 10 N30 A 2% discount is allowed if paid within 10 days of invoice or

payment due in 30 days with no discount AO (33) Assembly Order ACCOUNTS PAYABLE A division of the Bharti Wal-Mart Accounting Department

whose responsibilities include the payment of invoices received from Bharti Wal-Mart vendors

ALLOW Abbreviation for “Allowances” ALLOWANCE Allowances offered by the vendors to Bharti Wal-Mart ANTI-BACTERIAL Any treatment applied to a fabric to destroy single celled and

non-cellular microscopic plants or fungi that cause odour or discoloration

ANTI-MICROBIAL Any treatment applied to a fabric that kills germs ANTICIPATION A discount allowed by some vendors for paying invoices

before due dates ASSEMBLY A method by which the retail outlets replenish basic

merchandise. Normally orders are in cycles, i.e., orders are placed every 2 to 4 weeks. The retail outlets and quantities are consolidated and an Assembly Type purchase order is generated automatically by the system, providing a purchase order with retail outlet distribution to the vendor

ASSOCIATE Bharti Wal-Mart employee B.O.H. Beginning On Hand – the amount of goods received by the

retail outlet or the total number of shipping units in the distribution center

BACK HAUL After a truck is emptied from a retail outlet delivery; it picks up merchandise from a vendor in the same area as the retail outlet to haul back to the distribution center

BACKSTOCK Merchandise held to replenish the side counter BH Abbreviation for “Back Haul Allowance” BILL OF LADING Document received and sent with the merchandise to prove

shipping and/or receiving BILLING TERMS Conditions on which an order is received BOBTAIL Transferring a tractor from one location to another BREAKDOWN A retail outlet distribution made by Fashion Distribution for a

WPM type purchase order designating the retail outlets and quantities the soft goods are to be delivered and billed to

BREAKPACK A carton received in the distribution center with two or more inner cartons that can be broken down and shipped to the retail outlets



Terms Definition BUYER Associate in Home Office who is responsible for buying

merchandise from vendors. Each department has at least one buyer

CUSTOMER COUNTS Number of customers buying the merchandise in a given period of time

C.O.E Correction of Errors C/B Abbreviation for “Charge Back” CANCEL DATE The latest possible date the vendor‟s goods can reach the

Bharti Wal-Mart distribution center or retail outlets without being penalized

CANNED ORDER An order placed for a new retail outlet for all the departments. This is the initial order to stock a new retail outlet with staple stock merchandise. The canned order is issued by the Home Office and filled by the distribution centers

CARRIER Any mode of transport used to carry freight CASEPACK Merchandise delivered in full cases. Cartons cannot be

broken into smaller cases CASH DISCOUNT Allowance granted to the buyer for payment within a specific

period of time as indicated on the purchase order CK Abbreviation for “Cheque” CLAIM Action taken against a carrier, vendor or individual for lost

and/or damaged freight. CLAIMS INVOICE An invoice correcting the billing to the retail outlets for claims

or paybacks that was filed against the distribution center or retail outlet

CLEARANCE TAG Used to identify discontinued merchandise that is to be “moved-out” of the retail outlet COL Abbreviation for “Collect”

COLOURFAST Refers to fabric that that will not fade or bleed during cleaning or laundering

COMMON CARRIER A person or company engaged in the business of transporting Goods. Rail roads, ships and trucks are common carriers. COMPETITION Other retailers operating in the service area of a retail outlet.

Examples of competitors are Reliance, Big Bazaar, Spencers, etc. CONSIGNMENT Merchandise that is not due for payment until it is sold. Unsold

Goods are returned and payment is due for the unreturned portion of goods.

CONSOLIDATION Merchandise that is sent to the distribution center by the manufacturer marked for the retail outlets and gathered for freight savings

CONSOLIDATOR A company accumulating freight from several vendors to make a large load, earning a lower freight rate

CONTRACT CARRIER Carrier under contract to different companies to haul that company‟s freight CONVEYOR Automated system of pulleys and rollers with belts used in the

distribution center to transport merchandise from different retail outlets to the shipping lanes



CO-OP An advertising allowance offered by a vendor, payable upon proof

of advertisement being run COST The price that Bharti Wal-Mart pays for an item

CROSS DOCK Receiving area of the distribution center where merchandise from other distribution centers is processed.

CUBE The amount of space an item or merchandise takes up. To figure cube, multiply Length x Width x Height and divide this resultant figure by 1728

D.S.D Direct Store Delivery DA Abbreviation for “Discounts Defective Merchandise” DEPT. Abbreviation for “Department” DISC. Abbreviation for “Discount” DISTRESSED Substandard merchandise. Items unattractive to the customer MERCHANDISE because of its appearance. DISTRIBUTION Refers to the process by which merchandise is transferred from the

distribution center to the retail outlets. DISTRIBUTION Large storage building where freight is brought in from multiple CENTER destinations and then shipped out to the retail outlets on a regular basis DISTRIBUTOR Sells merchandise made by various manufacturers D.M.M. Divisional Merchandise Manager DOCK Temporary location in receiving and shipping areas where freight is

stacked until slotted in the distribution center or loaded on a trailer DOI Abbreviation for “Date Of Invoice” Drop Shipment A load of supply of merchandise transported directly from the

grower/manufacturer to the retail outlet by truck bypassing the wholesaler

E.O.H Abbreviation for “Ending On Hand” – merchandise still in stock E.O.M End of Month EARLY ORDER A discount allowed for orders placed before a specific date EBD Early Buy Discount – When a vendor or manufacturer allows

merchandise to be purchased in advance at a lower price. The shipping date may not be specified

EDI Electronic Data Interchange – the process of sending orders electronically from computer to computer versus mailing paper copies

EDLC Every Day Low Cost EDLP Every Day Low Price F.C Freight Claim F.O.B Freight On Board – the point at which the ownership of

merchandise passes to Bharti Wal-Mart. Used to indicate that the vendor provides transportation from the factory to the trucks, railcars or consolidators, after which Bharti Wal-Mart pays for all carrier charges

FDA Food and Drug Administration FFA Abbreviation for “Full Freight Allowance” FIFO “First In First Out” – refers to the order in which product is

merchandised and sold



FINELINE Grouping together of like merchandise within a subclass.

Subclasses are broken down into two or more finelines. (Example: If the subclass of an item is Dress Shirts, the various finelines could be long sleeve print, long sleeve solid, short sleeve print, short sleeve solid, etc.)

FOUR WAY Four sided fixture for displaying FREIGHT General term used to describe bulk merchandise FREIGHT COLLECT The point where the merchandise is received is responsible for paying freight charges FREIGHT PREPAID The point where the merchandise is shipped from pays the freight charges FRT Abbreviation for “Freight” G.O. Abbreviation for “General Order” GENERAL ORDER An order generated by the buyer for new items, tab merchandise, seasonal events, etc. G.M.M. General Merchandise Manager GONDOLA Primary merchandising fixture consisting of a base, free-standing

vertical wall and a number of four-foot sections of shelving GROSS MARGIN The difference between the cost and the selling price of an item,

considering all expenses (freight, handling, etc.) incurred in the transition

GUARANTEED SALE The manufacturer agrees to buy back any of his product that does not sell within a specified time. Usually termed as “Sale or Return”

HARDLINES Examples of merchandise in the departments are household paper goods, kitchen utensils, games, lawn equipments, appliances, etc.

INNER PACK The largest pack inside the Vendor Pack INVENTORY To physically and visually count and record all items within a

department which are destined for retail sales. INVOICE A vendor‟s bill for goods purchased by Bharti Wal-Mart in

accordance with the purchase order items ISD Information Systems Division – Bharti Wal-Mart‟s computer

systems support group ITEM NUMBER A seven or nine digit number assigned to an item of merchandise

the first time the merchandise is purchased. This is the Bharti Wal-Mart identification number for the item carried in the retail outlet and through the computer system

JIT Just In Time – fast moving merchandise that is carried in staple stock part of the distribution center with a minimum supply on hand

LANDED COST A term used when a merchandise is imported which is the cost of the merchandise plus the transportation costs

LATE DELIVERY A delivery that arrives after the schedule time for delivery LEAD TIME The amount of time it takes to receive an order. This is calculated

by determining the amount of time it takes to manufacture the goods plus the shipping time to either the distribution center or to the retail outlet destination



LGE Abbreviation for “Large” LTL Less Than Truckload – mixed freight, not all the same vendor or

purchase order M.S.D.S Material Safety Data Sheet – How to handle chemicals, to avoid

hazards and how to clean up these chemicals MARKDOWN Any reduction in selling price (includes advertisements, clearance,

etc.) MARKUP An increase in the initial retail price and mark up of an item MARKUP Percentage of increase from cost to retail. The Markup Percent formula is – Retail minus Cost divided by Retail MASTER Several cases being shipped in one package (Case Pack). These CARTON can be broken down into the individual cases (Break Pack) and

sent to the retail outlets MODULAR Blueprints of a 4-ft. section of a gondola indicating for the

associates the proper placement of the merchandise on the counter MTD Month To Date NET 30 Invoice Payment is due 30 days from the date of invoice NET INCOME The balance left over after all operating expenses and deductions

have been made from the gross income NET PROFIT Amount of profit realized after deducting operating cost NET SALES Gross Sales minus Returns and Allowances NET WEIGHT The weight of a product without the packaging materials i.e., food, detergents, etc O.H. On Hand – The total quantity of an item in a retail outlet. This

includes on the counter and stockroom totals O.I. Abbreviation for “Off-Invoice” ONLINE Having direct access to the computer. Changes, additions and

deletions are immediately updated OPEN ORDERS Purchase orders not yet received at the Bharti Wal-Mart facilities OPP Opening Price Point – The lowest price point in a category or sub

category. The OPP should be the best VALUE. Value is a function of both price and quality

OTC Over The Counter OUT-OF-STOCK Items empty on a side-counter. Must have an out VENDOR

of-stock label applied to the shelf OVERAGE An amount of inventory stock that exceeds the inventory expected P&L Abbreviation for “Profit & Loss” P.A. Abbreviation for “Payment Authorization” P.I. Perpetual Inventory. Tracks Inventory P.O.D Abbreviation for “Proof of Delivery” P.O.P Point of Purchase. Applied to special displays, promotional

materials and is used to feature items on the sales floor P.O.S Point of Sale. Products ordered at point of sale instead of

manufactured orders PACKING LIST List, included with most vendor purchase orders, which itemizes

each order, the number of cases shipped, and how it is packed. PALLET Movable wooden platform used to stack cases or boxes for storage PDQ Way of merchandising items easily displayed and zoned



PLU Price Look Up. A number assigned to an item that does not have a

UPC on each item or random weight (weighable) items. e.g. apples, meat, fish

PO Purchase Order PO TYPE A two-digit type code that describes the types of purchase orders

that may be written. These codes are the third and fourth digit of the purchase order number

PPD Initials on freight bill that mean “Pre-Paid” (shipping cost has been paid)

PREPACK Containers with the exact amount of merchandise to be shipped to the retail outlets

PREPAID Payment for a benefit to be received at a later date EXPENSES PREPAYMENT Payment made with an order to earn lowest price, insure, or

guarantee delivery PRICE When retail is adjusted (either up or down) to make a new price ADJUSTMENT point. (Example: to meet competition prices) PRICE Any fluctuation in the wholesale cost of the product either upward MOVEMENT or downward PRIME A manufacturer that sells only items they make MANUFACTURER PRIVATE LABEL or A retailer‟s brand sponsored by seller rather than manufacturer PRIVATE BRAND of an item (Example: STOP by Shoppers‟ Stop, HAANI by

Pantaloons, etc.) PURCHASE ORDER An official authorization for ordering merchandise, which may also be used by retail outlets to check in merchandise. PYMT Abbreviation for “Payment” QTY Abbreviation for “Quantity” QUALITY Denotes characteristics that are permanent, such as size and

shape. Produce quality is affected by appearance and condition, which it affects sales either favourably or unfavourably

R.O.G Abbreviation for “Receipt of Goods” RATE OF SALE Amount of stock sold from one ordering week to the next (an

ordering term) RECEIVING A sequential number assigned to each purchase order and NUMBER each Receiving. Different series of numbers are used for different

types of purchase orders REPLENISHMENT The process of moving Staple Stock merchandise from reserve

racks or locations to prime picking slots RESERVE SLOT or Storage rack in the distribution center used to retail outlet RACK staple stock merchandise until the computer replenishes to the

pulling stocks RETAIL The selling price of merchandise in the retail outlets RETURN ON The amount of return in profit for each rupee invested INVESTMENT (Example: If a Rs. 100 profit were made on a Rs. 100

investment, the return would be 100%)



RETURN Merchandise that is being returned to vendor as per instructions TO VENDOR from Buyer or group Managers. Usually returned due to overages,

wrong items, wrong distribution center pack, etc. ROS Rate of Sale. ROTATION The process of receiving into and shipping out of a specific

distribution area within a distribution center S.K.U Stock Keeping Unit – one individual item of merchandise SEASONAL Term used to denote merchandise which is sold only during certain

periods of the year SELL PACK The package size which is sold to the customer SHELF PACK A package designed which dispenses products from a display shelf SHIP DATE The date the vendor is to ship the merchandise SHIPPING POINT The location merchandise is shipped from SHORTAGE When less than the amount of freight noted on the freight bill

arrives at the distribution center SHRINKAGE The difference between the Inventory that should be on hand

according to the books and what is actually on hand SIGNING Identifying (marking) all products with clear, accurate description

correct prices. An important task in all departments. If done improperly, causes customer confusion and loss of sales

SLOT A location in a rack where pallets of merchandise are stored. Each slot has a number associated to it

SLOT Physically moving merchandise from one slot location to another MAINTENANCE and then updating the move in the system before the next day‟s workload is processed SOFTLINES Refers to all merchandise in Departments Apparels, Baby Care,

Footwear, Home Furnishing & Home Furniture STAPLE STOCK Merchandise stocked in the distribution center on a regular basis STOCK Overstock merchandise returned in equal value exchange for other BALANCING items or for credit STOCK Moving older stock in front and putting new stock behind ROTATION SUBCLASS Grouping of like merchandise within a Department (Example: A

subclass could be shirts with finelines in that subclass such as long sleeve, short sleeve, etc)

T.B.A Tyres, Batteries & Accessories TAB Tabloid advertisement included in a newspaper or mailed

individually to households TERMS Condition of Payments of goods agreed upon by both buyer and

seller TI & HI TI = How many cases on a layer on the pallet

HI = How many layers on a pallet. Tells the unloader how to stack each item on the pallet

TRAIT A characteristic of an item or retail outlet TURNS Number of items inventory is replenished within a given period of

time, calculated by dividing annual sales by average inventory



UPC Universal Product Code – a pattern of lines and bars on a product

that are read by a scanning device at the scanning register. Also known as bar code

VENDOR A seller of merchandise VENDOR A nine-digit number created by Bharti Wal-Mart for each vendor. NUMBER This number is used in purchase orders and for payments of invoices VENDOR PACK Original packaged quantity of merchandise as shipped by the

vendor VENDOR STOCK Code used by manufacturer for identification of item NUMBER VNDR Abbreviation for “vendor” VNDR QTY Vendor Pack VOLUME Rebate discount allowed for the purchase of a large volume DISCOUNT W.P.M Wal-Mart Pre-Ticketed Merchandise; Also known as Wal-Mart Pre-

Marked. Apparel merchandise that is ticketed prior to reaching the sales floor

DISTRIBUTION Bharti Wal-Mart owned facility used for distributing and storing CENTER merchandise WH or WHSE Abbreviation for “Distribution center” WHOLESALER Can be distributor and/or jobber, who buys and resells merchandise.

All distributors and jobbers are, by nature, wholesalers WTD Week To Date YTD Year To Date

Date post:	27-Apr-2015
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Wal-Mart Supplier Module

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