SHIPPING GUIDELINE FOR SUPPLIERS...1.4 Logistical processing form Cross Docking 2 (CD 2) Compliance with the following requirements is mandatory to ensure a smooth logistical process:

SHIPPING GUIDELINE FOR SUPPLIERS

Standards for goods deliveries

in the logistical processing

form Cross Docking 2

The KaDeWe Group GmbH

Katharina-Heinroth-Ufer 1

10787 Berlin

Germany

(Version 1.2)

CONTENTS

1. Delivery information .......................................................................................................... 4

1.1 Master data ................................................................................................ 4

1.2 Delivery date .............................................................................................. 4

1.3 Partial delivery ............................................................................................ 4

1.4 Logistical processing form Cross Docking 2 (CD 2) ................................................... 5

2. Goods labelling .................................................................................................................. 6

2.1 Folded garments .......................................................................................... 6

2.2 Hanging garments ........................................................................................ 7

3. Packaging of folded garments ............................................................................................ 9

4. Loading tools ................................................................................................................... 10

4.1 Packages ................................................................................................. 10

4.2 Pallets .................................................................................................... 10

5. Shipping process .............................................................................................................. 11

5.1 Free deliveries ........................................................................................... 11

5.2 Delivery condition ex works ............................................................................ 12

5.2.1 Collection from the EU .............................................................................. 12

5.2.2 Collection from third countries ..................................................................... 12

6. Shipping papers ............................................................................................................... 13

6.1 Delivery note ............................................................................................ 13

6.2 Waybill ................................................................................................... 15

6.3 Customs documents ..................................................................................... 16

7. Hazardous goods .............................................................................................................. 19

8. Rejection of goods and complaints ................................................................................... 20

8.1 Quality faults and reasons for rejection ................................................................ 20

8.1.1 Goods delivery ....................................................................................... 20

8.1.2 Delivery documents and master data ............................................................... 20

8.1.3 Transport label and/or barcode ...................................................................... 20

9. Analysis and settlement/offsetting .................................................................................... 21

Preface

Guaranteeing that workflows run smoothly down to the organisation of the floor space in the

branches is largely dependent on the quality of the goods delivered by our suppliers – in compliance

with this Shipping Guideline. Steps must be taken to ensure that the requirements defined in this

document relating to the information flow and the shipping of goods, including goods labelling and

the accompanying papers, are met in full.

The following logistical requirements for all goods deliveries to The KaDeWe Group GmbH form

an integral part of the purchasing contract with The KaDeWe Group GmbH. All earlier versions of

the Shipping Guidelines are obsolete.

Any deviations to this standard must be approved in writing by The KaDeWe Group GmbH. Also,

only The KaDeWe Group GmbH is allowed to amend this standard.

The supplier undertakes to inform his internal departments and any service providers that process

orders about the Shipping Guideline, which also forms the basis for any contracted work.

Additional costs incurred due to noncompliance with or deviations from this Shipping Guideline,

for which the supplier is responsible, will be charged to the supplier plus a processing charge.

1. Delivery information

1.1 Master data

It is essential that the delivered goods can be assigned to the relevant master data. Therefore, the

supplier must ensure that all master data is made available to the respective purchasing department

and the purchasing process organisation of The KaDeWe Group GmbH. Any changes to the

supplier’s master data must be communicated promptly, punctually and voluntarily.

Contact: Purchasing process organisation

[email protected]

1.2 Delivery date

The supplier has a general obligation to meet the delivery date agreed with The KaDeWe Group

GmbH.

The KaDeWe Group GmbH accepts deliveries delivered maximum 10 work days before the agreed

delivery date. In this respect, The KaDeWe Group GmbH reserves the right to refuse such deliveries

and/or to return the goods to the suppliers, if they have been delivered more than 10 work days

before the delivery date. All costs incurred will be charged to the supplier.

If the agreed delivery date cannot be met, the respective purchasing department at The KaDeWe

Group GmbH must be contacted to agree on the further course of action.

1.3 Partial delivery

The goods delivery must correspond precisely to the ordered quantity.

mailto:[email protected]

1.4 Logistical processing form Cross Docking 2 (CD 2)

Compliance with the following requirements is mandatory to ensure a smooth logistical process:

The supplier delivers the goods on the agreed delivery date in a form that ensures that the

previously agreed Value Added Services (VAS) can be carried out smoothly in the

warehouse process.

If our logistics service provider needs to carry out any manual handling work that was not

agreed in advance as part of the VAS, The KaDeWe Group GmbH will charge these costs to

the supplier.

The supplier delivers the shipping units that are created sorted according to order number.

Every delivery for an order number only has one delivery note number. The delivery

belonging to the delivery note must be consolidated into one shipment.

A shipment may only contain several deliveries for one order number, if this is approved by

The KaDeWe Group GmbH.

However, partial deliveries for one delivery note are not allowed. Also, deliveries comprising

several order numbers are not allowed, nor it is permitted to issue one delivery note for

several deliveries and/or several orders.

The delivery note and the packaging unit identification (label/sticker) must bear the code

‘CD2’.

Hanging and folded garments may not be combined in one delivery. Two separate delivery

notes are required due to the different logistical processes. To prevent confusion, all

packages containing hanging and/or folded garments must be delivered sorted according to

order number wherever there are several order numbers.

If hanging garments are delivered in cartons, the supplier must secure the goods so that they

cannot slip off the clothes hangers.

Deliveries may always only include those items that are stated on the order and the delivery

notification. Alternative products may not be enclosed with the delivery.

‘Free-of-charge’ deliveries are packed separately and noted on a separate delivery note.

2. Goods labelling

Before the packaging units are sent for transportation, they need to be clearly labelled to ensure

unique identification of the packaging unit.

2.1 Folded garments

To ensure a smooth delivery process, the following parts of the packaging unit label are mandatory.

Every box, be it part of a pallet or a single package, must bear the supplier’s and recipient’s address

and also (as a mandatory requirement) the internal address of The KaDeWe Group GmbH. In

addition, the order number (PO number), the delivery note number, the logistical processing form

(CD 2) and the number of packages also need to be stated. The same also applies for the transport

unit and all associated accompanying documents.

In the case of deliveries comprising several packages, all packages need to be numbered, and the

reference to the overall shipment also needs to be clearly stated. For example: 1 of 16 or 1 / 16

packages. Deliveries from a supplier to different departments and/or branches also need to be clearly

labelled.

The internal addresses are formed as follows:

Branch number / department number Branch number 010 KaDeWe (Berlin)

031 Alsterhaus (Hamburg)

173 Oberpollinger (Munich)

Department number acc. to order

2.2 Hanging garments

Orders will stipulate whether or not garments need to be hanging on delivery. Every handle unit

needs to be protected from soiling by a film that is closed at the bottom. Single or multiple items

need to be placed together into a bag that is closed at the bottom. A handle unit may not exceed a

length of 30 cm.

Several clothes hangers in one handle unit must be connected so that they are secured from slipping

during transportation.

No clothes hangers that are open on one side may be used (e.g. hangers for tourers).

If the supplier selects packaging other than the stipulated transport packaging and/or if hanging

garments are not shipped in handle units or without closed, addressed foil bags, the supplier always

bears the transport risk and any additional costs.

Creation of handle units of up to maximum 5 parts:

Coats, also bathrobes, but not dressing gowns

Jackets

Suits and trouser suits

Women’s suits

Children’s clothing

Combinations, overalls and parkas

Tops

Jackets, blazers and blousons

Handle units merged into maximum 10 parts:

Dresses and coordinates

Trousers

Skirts

Waistcoats

Dressing gowns

Night shirts

Pullovers

Home leisurewear

Blouses

T-shirts

Aprons

The handle units are identified analogue to chapter 2.1 Folded garments. A packaging unit label

containing the following information is attached to every handle unit:

Supplier’s address

Recipient’s address incl. internal branch and department assignment

Delivery note number

Order number (PO number)

Number of packages

Logistical processing form CD2

In the case of deliveries that comprise several handle units, all handle units need to be numbered in

a way that allows clear assignment to the overall shipment.

Every handle unit must bear a label stating the internal address (branch and department) etc.

analogue to the packaging unit label of the folded garments.

3. Packaging of folded garments

All items must be packed in compliance with the specifications in the order (e.g. sorting). Identical

packaging units must contain the same quantity of individual items.

All folded garments must be delivered in transport-proof boxes that can be stacked without causing

damage to the content. Standard boxes that comply with the EURO-pallet dimensions must be used.

Boxes must be sealed with adhesive tape or strapping. The number of straps should be kept to a

minimum and not impede handling or safety.

The volume of the packing materials for disposable transport packaging must be kept to a sensible

minimum. The following points also need to be taken into account:

Use of recyclable packing materials (if possible cardboard, paper carton)

Avoidance of compound packing materials

Recycling is not impeded by adhesive tape, labels, printing inks etc.

No metal clips (also to avoid the risk of accidents!)

No individually packed parts (e.g. textiles) – we endorse packing of 10-50 parts in one

polybag – although this does not apply to high-quality and sensitive textiles

CFC-foamed moulds are always forbidden

The quantity, declaration, shelf-life (if relevant), label according to the Dangerous Substance

Ordinance and/or Hazardous Goods Ordinance and other information must be attached.

It must be possible to collapse and fold empty transport packaging into flat elements quickly

without tools.

It is not possible to deliver goods in reusable containers.

4. Loading tools

4.1 Packages

Packages may weigh a maximum of 31.5 kg with maximum dimensions of 120 x 60 x 60 cm

(LxWxH) because otherwise parcel services will not handle them.

If the volume of packages exceeds 10 a day, it is recommended consolidate these into a logistical

transport unit/pallet and contracting a freight forwarder.

4.2 Pallets

Pallets with several packages always need to be delivered in shrink film or wrapped in film to form

one unit on a standardised load carrier, i.e. EURO pallet.

Basic dimensions: 80 x 120 cm

Maximum height: 180 cm

Maximum weight: 250 kg

The pallets are subject to a visual inspection in incoming goods. If nonconforming or extremely

soiled pallets are delivered and if the goods they bear are affected, The KaDeWe Group GmbH

reserves the right to reject the respective pallet incl. the goods and to immediately return the pallet

to the supplier.

5. Shipping process

5.1 Free deliveries

A ‘free’ delivery is sent to the following address:


Branch / Department

c/o Meyer & Meyer Logistikzentrum Peine GmbH & Co.KG

Lehmkuhlenweg 84 (gate 1 to 3)

31224 Peine

The supplier and/or the freight forwarder is obliged to give notification of the shipment to the Meyer

& Meyer Logistikzentrum in Peine at the latest by 2 pm of the day prior to the delivery day.

Contact data:

Telephone: +49 (0) 5171 / 70 67 – 570

Email: [email protected]

The notification contains the following information:

Name of the supplier

Order number (4600…..)

Number of packages/pallets

Branch/department number

Delivery date and time

Notification does not need to be provided if goods are delivered by a parcel service provider.

Goods can be accepted from Monday to Friday from 7 am to 4 pm. The KaDeWe Group GmbH

reserves the right to also reject deliveries made outside these acceptance times.

Goods must be shipped in good time so that the agreed delivery date can be met.

In the event of non-compliance with a delivery date (premature and/or delayed delivery), all incurred

costs, in particular those for special handling, will be charged to the supplier.

Delivery times and organisational constraints must be strictly observed for all deliveries. The

instructions issued by the staff in incoming goods must be obeyed.

We will not assume any additional costs incurred by the transport companies and/or suppliers

resulting from incorrect deliveries, if these costs could have been avoided by observing the

information provided.

mailto:[email protected]

5.2 Delivery condition ex works

5.2.1 Collection from the EU

The Meyer & Meyer Transport Services GmbH in Osnabrück is contracted by The KaDeWe Group

to collect deliveries within the EU with the delivery condition ‘ex works’.

The following address always needs to be attached to transport units:


Store/ Department

c/o Meyer & Meyer Logistikzentrum Peine GmbH & Co.KG

Lehmkuhlenweg 84 (gates 1 - 3)

31224 Peine

5.2.2 Collection from third countries

The supplier gives the purchasing department at The KaDeWe Group GmbH all information

required for the collection promptly and in full; he is also responsible for ensuring that all documents

required for customs clearance are correct (see chapter 6.3).

Necessary information:

Collection data

Precise collection address

Contact data

Opening hours

Number of packages

Weight and dimensions per packaging unit

Goods value

List of contents

6. Shipping papers

The supplier must ensure that his invoices for the goods we order are not enclosed with the goods,

nor are they sent to the address of our logistics service provider Meyer & Meyer in Peine. The

address of our accounts department is:


Finance

Katharina – Heinroth – Ufer 1

10787 - Berlin

These above-mentioned invoice information should not be confused with the information in the

commercial invoices used for international trade. The contents listed in chapter 6.3 about customs

documents apply in this case.

6.1 Delivery note

The destination addresses in Peine and/or Osnabrück listed in chapter 5 need to be observed when

generating the delivery note.

The delivery note must contain the following information:


Destination address (depends on the delivery condition, see above)

Order number (PO number)

Delivery note number and delivery date

Total quantity of the delivery and quantity per shipping unit

List of individual items. If possible, in the same sequence as the order

Precise and clear item designations

Item number and item-EAN

Cross Docking 2

For shipping purposes, the delivery note must be clearly attached to the outside of the package in an

envelope.

In the case of hanging textiles, the delivery note must

be attached to the last loaded handle unit of a shipment.

Example: Delivery note

6.2 Waybill

6.3 Customs documents

The customs documents need to be enclosed with all goods deliveries from non-EU countries. The

supplier is responsible for ensuring that all documents required for customs clearance are generated

correctly; he is also responsible for handing over these documents to the transportation company.

The customs office demands a commercial invoice for all goods that have a trade value and are

designated for resale. Commercial invoices are always in English and must contain the following

information because only commercial invoices that are completed correctly ensure fast customs

clearance:


Destination/invoice address

Delivery address, as this differs

Invoice number

INCOTERM (e.g.: EXW Hong Kong or DDP Peine)

Currency

Quantity and designation of the individual items with the associated customs tariff number,

the unit price and currency, weight, country of origin

Total invoice value of the shipment

Written signature, block capitals and company stamp of the sender

This information is also mandatory for shipments of samples or gifts and for free-of-cost deliveries.

In this case, a proforma invoice in English is presented to the customs office instead of a commercial

invoice. It also needs to beat a comment such as ‘Samples or gift shipment – value only for customs

purposes’, ‘free of charge’, or ‘supplied free of cost’.

The most commonly used INCOTERMS:

EXW (ex works): The vendor must prepare the goods for collection by the buyer. In this case, the

vendor does not bear any costs.

DAP (delivered at place): The vendor must bring the goods to the agreed destination and make

them available for collection there. The vendor therefore bears all transport costs. The buyer handles

all customs formalities, including customs charges, taxes or any other fees due on imported goods.

DDP (delivered duty paid): The vendor must provide the goods that are ready for importing at the

agreed destination. The vendor bears the costs up to the time when the goods reach the destination;

he is also responsible for all import formalities and paying the customs charges.

Example: Commercial invoice

If there are several packages in a delivery, a packing list needs to be included for every delivery:

Example: Packing list

7. Hazardous goods

The obligations stipulated in the latest versions of the German Law for the Transport of Hazardous

Goods and the subordinate ordinances must be observed and satisfied. This also applies to shipments

that are packed and transported in small quantities.

The hazardous goods that fall under the scope of the ordinance must be filled and/or packed, labelled

and shipped with the correct shipping papers as stipulated.

The supplier gives separate notification of hazardous goods shipments. The supplier is responsible

for ensuring that all necessary hazardous goods papers are complete, correct and available.

A separate delivery note bearing the wording ‘Hazardous goods’ must be created for hazardous

goods shipments. If notification of a delivery containing hazardous goods is sent, it must specifically

state that these are hazardous goods.

Hazardous goods must be delivered separately on pallets. The packages must be labelled as

hazardous goods.

In the case of ex work deliveries, hazardous goods can only be collected in reduced quantities.

The supplier is liable for all damage resulting from non-observance of the statutory regulations.

8. Rejection of goods and complaints

The KaDeWe Group GmbH reserves the right to reject any nonconforming goods.

8.1 Quality faults and reasons for rejection

If The KaDeWe Group rejects the goods, our Supply Chain Management informs the supplier

immediately about the reason for the complaint and the further course of action is agreed. If goods

are damaged or soiled, a decision is made as to whether to return the goods to the supplier at his

expense, or to destroy the goods. The supplier bears all additional costs incurred for all other quality

faults for which he is responsible (e.g. additional costs for manual intervention into the logistics

process).

In the event of a complaint or if goods are rejected, the supplier also bears any resulting follow-on

costs e.g. logistics costs, administrative processing fees, destruction costs etc. These will be invoiced

for the specific case in question.

The following are criteria subject to charges; they are sorted according to error group with possible

quality faults and any resulting rejection reasons.

8.1.1 Goods delivery

Damaged or soiled goods on delivery

Fragmented delivery of the goods on one delivery note

Goods are delivered outside the delivery times, without prior agreement

Hanging garments that are not delivered in handle units

Hazardous goods that are not delivered separately

8.1.2 Delivery documents and master data

Delivery note is missing

Missing/inaccurate information on the delivery note

Master data incl. VAS are inaccurate

8.1.3 Transport label and/or barcode

Packaging unit label is missing

Missing/inaccurate data on the label

Barcode or item information on illegible, inaccurate or cannot be assigned

In the event of warehouse/process damage, the supplier is informed by the respective department at

The KaDeWe Group GmbH and the further course of action is agreed.

9. Analysis and settlement/offsetting

The KaDeWe Group GmbH lists the respective quality faults and cases of quantity deviations (over

or under-deliveries) and incorporates these in the supplier evaluation; these may be offset/settled on

a monthly basis.

No

. Error group Quality fault Detailed description Recording Action/sum

1 Goods

delivery

Damage or soiled

goods

The delivered pallet

and/or protective film on

the handle unit is so

damaged or soiled that

the goods can no longer

be sold

Per transport unit

(pallet or handle

unit)

Not

accepted/returned at

the expense of the

supplier

2 Goods

delivery

Delivery outside

acceptance times

Without prior agreement,

deliveries are made

outside the defined

delivery times

Per transport unit

(pallet or handle

unit)

Not

accepted/returned at

the expense of the

supplier

3 Goods

delivery

No handle units

for hanging

garments

Hanging garments are

delivered without any

handle units

Per part € 3,-

4 Goods

delivery

No separation of

hazardous goods

Delivery von hazardous

goods together with non-

hazardous goods

Per delivery € 50,-

5 Goods

delivery

Shipment

identification not

clear

Confusion with other

logistical processing

forms (CD 2,

warehousing) and/or

delivery not sorted by

order number


6 Goods

delivery

Delivery outside

acceptance times

Precise identification and

assignment of the items

is not possible

Per part € 5,-

7 Goods

delivery

Fragmented

delivery

Packages belong to a

delivery (delivery note)

are delivered in

fragments

Per shipment € 200,-

8 Delivery

documents

Delivery note is

missing

The delivery note is

missing in the delivery


Possible rejection of

goofs, unless

goods, new delivery

papers are sent

immediately

9 Delivery

documents

Incorrect or

missing

information on

the delivery note

There is necessary

information missing on

the delivery note or the

information is inaccurate


10 Master data Master data is

inaccurate

The master data in the

system do not correspond

Per part € 5,-

to the physical data of the

item (e.g. inaccurate

EAN)

11 Transport

label

Packaging unit

label is missing

There is no identification

label attached to the

transport unit

Per transport unit

(pallet or handle

unit)

€ 50,-

12 Transport

label

Incorrect or

missing data on

label

Necessary data is missing

for the goods

identification and/or the

data on the label is

inaccurate

Per transport unit

(pallet or handle

unit)

€ 50,-

13 Barcode Barcode illegible The item barcode is

illegible (e.g. due to poor

printing quality)

Per part € 5,-

14 Hazardous

goods

Incorrect or

missing label

The hazardous goods

were shipping illegally

Per transport unit No

acceptance/liability

on by the suppliers

Documents

SHIPPING GUIDELINE FOR SUPPLIERS...1.4 Logistical processing form Cross Docking 2 (CD 2) Compliance with the following requirements is mandatory to ensure a smooth logistical process: