Subject: Vendor Compliance Program Purpose: To identify costs incurred for vendors not complying with shipping/packing/marking/bill of lading/return t...
Subject: Vendor Compliance Program Purpose: To identify costs incurred for vendors not complying with shipping/packing/marking/bill of lading/return to vendor/ticketing/palletizing instructions. Background: The Vendor Compliance Program (VCP) is implemented to recover expenses caused by vendors’ noncompliance for merchandise shipped to and through our operations. Vendor’s merchandise will flow through our Distribution Centers and stores and on to the selling floor in a efficient manner, if vendors follow the detailed requirements outlined in this guide. Distribution Centers, and stores, will submit data for the purpose of recovering costs incurred by vendor nonconformance. The Exchange will charge the contractor for any costs incurred as a result of nonconformance. Nonconformance may include but is not limited to the compliance violation(s) below. As detailed in the Vendor Compliance Cost Structure below, Exchange HQ Cooperative Advertising will process charges to recover costs caused by vendor/supplier shipments to our distribution centers and stores that are not compliant with the purchase order terms and conditions. In the event vendors require additional information, the Exchange contact information is provided on each claim.
Army & Air Force Exchange Service Vendor Compliance Cost Structure Updated: 01 August 2010 TAMS Rate Code VC.0
Description
Rate Desc
Base Administrative / Processing fee.
Rate
AAFES Cost $150
Delivery / Shipping Date Compliance $150
VCD.1 VCD.2 VCD.3
FOB Origin PO. ► Shipped >72 hours before/after Scheduled Ship Date - SSD ► Supplier window is 7 days…3 days either side of SSD
FOB Destination PO: ► Rec'd >72 hours before/after Required Delivery Date - RDD ► Supplier window is 7 days…3 days either side of RDD Port of Embarkation / Debarkation Errors ► Customs documentation error(s). Product specifications, quantity, content, nomenclature, etc. ► Insufficient data to manifest shipment.
Per Box Number of POs
$0.464 Calculated $13.660 Calculated $150
Per Box Number of POs
$0.464 Calculated $13.660 Calculated $150
► Multiple / split shipments. Supplier made more than one shipment against the same purchase order or SKU on the purchase order. .
Per Box
► Missed Delivery Appointment. You established an appointment to deliver merchandise at our Distribution Center and did not make delivery in at the agreed appointment time.
Date Appointment made: DD MMM YY Carrier who made appointment: ---------- carrier name here ----------Carrier who actually delivered: ---------- carrier name here ----------Appointment Time/Date TIME DD MMM YY Arrival Time/Date TIME DD MMM YY Offload Time/Date TIME DD MMM YY
Number of POs
$0.46 Calculated $13.660 Calculated
$100
Bill of Lading (BOL) Compliance VCB.1 VCB.2 VCB.3 VCB.4 VCB.5 VCB.6 VCB.7 VCB.8
Failure to consolidate purchase orders into one BOL PO #, carton qty, and/or department number not listed individually or accurately on BOL Failure to list PO # in .Special Instructions. section on BOL BOL error resulting excess freight charge. BOL does not contain contact information Bill of lading marked prepaid should be collect Bill of lading marked collect should be prepaid
Number of POs
$150 $13.660 Calculated $150 $150 Actual $ $150 $150 $150
Style, Colors and or Sizes mixed in a carton (excludes cross dock Boxes Rehandled shipments) Number of POs No packing slip provided. Overshipment Resulting excess freight charge
Size strip tape missing from folded garments (if specified)
Boxes Rehandled Number of POs Return Freight Component If returned, Inbound Freight Component If returned, Return Freight Component Boxes Rehandled Number of POs If returned, Inbound Freight Component If returned, Return Freight Component Boxes Rehandled Number of POs If returned, Inbound Freight Component If returned, Return Freight Component Boxes Rehandled Number of POs
$150 0.464 Calculated 13.66 Calculated Actual $ $150 Actual $ Actual $ 0.464 Calculated 13.66 Calculated $150 Actual $ Actual $ 0.464 Calculated 13.66 Calculated $150 Actual $ Actual $ 0.464 Calculated 13.66 Calculated
No ASN received at time of receipt at Distribution Center
Fee per Box Fee per PO
$0.46 13.66
Inaccurate ASN/Carton contents do not match ASN
Fee per Box Fee per PO
$0.46 13.66
Carton Label not scannable/Defective
Fee per Box Fee per PO
$0.46 13.66
No UCC 128 label on carton/misplaced
Fee per Box Fee per PO
$0.46 13.66
ASN does not include Carton Detail
Fee per Box Fee per PO
$0.46 13.66
Failure to respond to Outbound Transactions with accurate 997 acknowledgement Removed from cross dock to manual processing 810 invoice is technically wrong requiring retransmission 856 ASN Transmission Errors
