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T H E H O M E D E P O T C A N A D A | S U P P L I E R R E F E R E N C E M A N U A L 1
THE HOME DEPOT CANADA
SUPPLIER REFERENCE MANUAL
T H E H O M E D E P O T C A N A D A | S U P P L I E R R E F E R E N C E M A N U A L 2
Contents
Introduction .............................................................................................................................. 10
How to use this Manual ........................................................................................................ 10
Key Take-Aways ................................................................................................. 12
Vendors shipping Collect ................................................................................................... 13
TMS-enabled vendors only................................................................................................ 13
Basic Cross Dock shipments ............................................................................................. 13
Invoicing Requirements ..................................................................................................... 14
Reconciliation / Disputes ................................................................................................... 14
On-time Fill Rate and Total Fill Rate – all vendors ............................................................. 14
Ready To Ship (RTS) and Ship Date – TMS-enabled vendors .......................................... 15
Corporate Policies ............................................................................................... 16
2.1 Ethical Standards ....................................................................................................... 16
2.2 Former Associates’ Relationships with the Home Depot’s Suppliers Policy: ............... 16
2.3 Supplier Alert line Information: ................................................................................... 17
2.4 Social and Environmental Responsibility (SER) ......................................................... 17
Transparency: ................................................................................................................... 17
Age Requirements: ........................................................................................................... 17
Forced Labor: .................................................................................................................... 18
Fraud: ............................................................................................................................... 18
Compensation and Work Hours ........................................................................................ 18
Non Discrimination: ........................................................................................................... 18
Environment, Health and Safety: ....................................................................................... 19
2.5 Conflicts of Interest: ................................................................................................... 20
2.6 Gifts and Entertainment:............................................................................................. 20
2.7 Foreign Corrupt Practices Act Policy: ......................................................................... 20
Policy: ............................................................................................................................... 21
2.8 Sanctions: .................................................................................................................. 21
2.9 Adequate Records; Adequate Controls: ..................................................................... 21
Manufacturing & Product Development ............................................................... 23
3.1 Product Engineering ................................................................................................... 23
Quality Assurance and Audits ............................................................................. 24
4.1 Quality Assurance Program: ...................................................................................... 24
4.2 Supplier Requirements: .............................................................................................. 24
4.3 Measurement and Enforcement: ................................................................................ 25
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4.4 Corrective Actions / Preventive Actions (CAPA): ........................................................ 25
Electronic Commerce Overview .......................................................................... 28
5.1 Electronic Data Interchange (EDI) .............................................................................. 28
5.2 Required / Mandatory Transaction Sets ..................................................................... 30
Basic Cross Dock EDI Requirements ................................................................................ 30
5.3 EDI Implementation Guide ......................................................................................... 30
Inbound Documents .......................................................................................................... 30
810/Invoice Requirements ................................................................................................. 31
Outbound Documents ....................................................................................................... 32
Production Communication IDs ......................................................................................... 33
5.4 Ship Notice (ASN) ...................................................................................................... 34
Basic Cross Dock ASN Communication Service Level ...................................................... 35
Rapid Deployment Center ASN Communication Service Level ......................................... 35
Shipping Guide – General Merchandise .............................................................. 36
6.1 Introduction ................................................................................................................ 36
6.2 General Shipping Instructions .................................................................................... 36
Expedited shipments ......................................................................................................... 37
Facility Closure.................................................................................................................. 37
Upon Arrival at the Store or DC’s ...................................................................................... 37
6.3 Basic Cross Dock Shipments ..................................................................................... 38
6.4 Shipping Platform Standards ...................................................................................... 41
Exhibit A ............................................................................................................................ 43
Sealing Containers ............................................................................................................ 47
Age Sensitive Goods ......................................................................................................... 47
6.5 Shipping Label ........................................................................................................... 47
Consolidation Label Format............................................................................................... 49
6.6 Shipping Documents Required ................................................................................... 51
Bill of Lading (BOL) ........................................................................................................... 51
6.7 Loading Instructions ................................................................................................... 52
6.8 Collect Suppliers: The Home Depot Pick-up ............................................................... 53
6.9 Pre-Paid Suppliers: Receiving by Appointment at DC’s .............................................. 55
Shipping Guide – Bulk ......................................................................................... 56
7.1 Introduction ................................................................................................................ 56
7.2 General Shipping Instructions .................................................................................... 56
7.3 Guidelines for loading flatbed trailers ......................................................................... 56
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The Flatbed Trailer - Terminology ..................................................................................... 61
Strapping and Tarping ....................................................................................................... 61
7.4 Distributing weight ...................................................................................................... 63
Maximum Axle Weight ....................................................................................................... 64
Side-to-Side Distribution .................................................................................................... 64
Bulk product ...................................................................................................................... 65
7.5 Shipping Documents Required ................................................................................... 65
7.6 Shipping Label ........................................................................................................... 65
Label Placement ............................................................................................................... 65
7.7 Collect Suppliers: The Home Depot Pick-up ............................................................... 65
7.8 Pre-Paid Suppliers: Receiving by Appointment at DC’s .............................................. 66
Purchase Orders ................................................................................................. 66
8.1 Regular Stock Orders ................................................................................................. 66
8.2 Back-order policy (Domestic) ..................................................................................... 67
8.3 Substitutions and Unapproved Products .................................................................... 67
8.4 Vendor Turn Time (VTT) and Transit Time ................................................................. 68
8.5 Supplier Minimums ..................................................................................................... 69
8.6 Supplier Vacation and Holiday Closings ..................................................................... 69
8.7 Expedited Shipments ................................................................................................. 69
8.8 Special Orders ........................................................................................................... 69
Direct Delivery to the Customer ......................................................................................... 69
Ordering and Shipping Process ......................................................................................... 70
Store Environment .............................................................................................. 70
9.1 Consumer Literature .................................................................................................. 70
9.2 Displays and Fixtures ................................................................................................. 70
9.3 In-Store Activities/Services (Domestic) ....................................................................... 70
9.4 Safety Standards........................................................................................................ 71
General Safety Standards ................................................................................................. 71
Ladders ............................................................................................................................. 71
Fall Protection Equipment ................................................................................................. 71
Powered Lift Equipment .................................................................................................... 71
Power Tools ...................................................................................................................... 72
Machine Maintenance ....................................................................................................... 72
9.5 Merchandising Safety Standards ................................................................................ 73
Securing Displays (Fastener Standards) ........................................................................... 73
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Racking Standards ............................................................................................................ 73
Hazardous Waste .............................................................................................................. 76
Manufacturing Excellence ................................................................................ 80
10.1 Supplier Requirements ............................................................................................... 80
10.2 Measurement and Enforcement ................................................................................. 80
Corrective Actions / Preventive Actions (CAPA) ................................................................ 81
Factory Development ........................................................................................................ 81
WHMIS ............................................................................................................................. 83
Material Safety Data Sheets .............................................................................................. 83
Packaging Engineering ..................................................................................................... 83
Packaging Communication Attributes ................................................................................ 83
Package Info ..................................................................................................................... 84
Barcodes ........................................................................................................................... 84
Languages ........................................................................................................................ 84
Conformity Assessment .................................................................................................... 84
10.3 Shipping Containers ................................................................................................... 85
Finished Retail Packages .................................................................................................. 85
10.4 Packaging Point of Purchase Displays ....................................................................... 85
Covers .............................................................................................................................. 85
Floor Stand ....................................................................................................................... 85
10.5 Packaging Loss Prevention Attributes ........................................................................ 85
Security Tags .................................................................................................................... 85
10.6 Packaging Environmental and Disposal Attributes ..................................................... 85
Inks ................................................................................................................................... 85
Environmental / Recycle Symbols ..................................................................................... 86
Solid Wood Packaging ...................................................................................................... 86
Cleanliness ....................................................................................................................... 86
10.7 Packaging Distribution Attributes ................................................................................ 86
Certification ....................................................................................................................... 86
Master Shipping Packages ................................................................................................ 86
Shipping on a Pallet .......................................................................................................... 87
Corrugated Shipping Containers ....................................................................................... 87
Freight Loading ................................................................................................................. 87
Solid Wood Packaging ...................................................................................................... 87
Over 150 lbs ...................................................................................................................... 87
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Corrugated ........................................................................................................................ 87
Pallet Standards ................................................................................................................ 87
Total Weight ...................................................................................................................... 87
Heavy Duty ....................................................................................................................... 87
Size Requirements ............................................................................................................ 88
Minimum Pallet Construction Requirements ...................................................................... 88
10.8 Import Pallet Label ..................................................................................................... 89
Pallet Exception Request Process..................................................................................... 89
Supplier Pallet Return Project ........................................................................................... 89
Pallet Standards for Door and Window .............................................................................. 89
Paper/Corrugated Pallets .................................................................................................. 90
Plywood/Manufactured Wood Pallets ................................................................................ 90
Stretch Wrap/Banding Standards ...................................................................................... 90
Stretch Wrap ..................................................................................................................... 90
Banding ............................................................................................................................. 91
10.9 Packaging Ceramic Tile and Natural Stones .............................................................. 91
• UPC Code ....................................................................................................................... 91
• Master Carton UPC Code ............................................................................................... 91
• Tile and Natural Stone .................................................................................................... 91
Unitization ......................................................................................................................... 92
Crates ............................................................................................................................... 92
Separation ......................................................................................................................... 93
• Pallets for Ceramic tile and Natural stone ....................................................................... 93
• Ceramic Tile and Natural Stone ...................................................................................... 93
10.10 Packaging Lumber and Plywood ............................................................................ 93
• Barcodes......................................................................................................................... 93
• Plywood .......................................................................................................................... 93
10.11 Canadian Market Packaging ................................................................................... 94
Packaging Inserts – All markets ........................................................................................ 94
10.12 Import Master Shipper – Canada ............................................................................ 94
Customs Compliance ...................................................................................... 95
11.1 Canadian Customs Requirements .............................................................................. 95
Canada Customs Invoice .................................................................................................. 95
Other Documentation Requirements ................................................................................. 96
Post-Entry Documentation Requirements .......................................................................... 96
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More Information ............................................................................................................... 96
11.2 Customs – Supply Chain Security .............................................................................. 96
Trailer / Container Security ................................................................................................ 97
11.3 Factory/Warehouse Physical Security ........................................................................ 97
Factory/Warehouse Physical Security ............................................................................... 98
Factory/Warehouse Access Controls ................................................................................ 98
Factory/Warehouse Personnel Security ............................................................................ 98
Factory/Warehouse Education and Training Awareness ................................................... 98
Information Technology Security ....................................................................................... 98
Third Parties ...................................................................................................................... 98
On-Site Reviews ............................................................................................................... 98
Home Depot Security Requirements for Imports from High-Risk Locations ....................... 99
Personnel Security ............................................................................................................ 99
Factory/Warehouse Education and Training Awareness ................................................... 99
Corrective Action ............................................................................................................... 99
More Information ............................................................................................................... 99
Transportation ............................................................................................... 100
12.1 General Instructions ................................................................................................. 100
12.2 Terms and Responsibilities ...................................................................................... 101
Freight Terms .................................................................................................................. 101
Ship Origin ...................................................................................................................... 102
Shipping Documents Required ........................................................................................ 103
12.3 Transportation Management System (TMS) ............................................................. 103
12.4 Routing Guidelines - Prepaid Vendors ..................................................................... 104
Shipments originating from domestic/USA to Canadian Stocking Distribution Centres (SDC) ........................................................................................................................................ 104
12.5 Routing Guidelines - Collect Vendors ....................................................................... 104
Shipments to all Stocking Distribution Centre (SDC) ....................................................... 104
Shipments to all Cross Docks (XD) sent to HD Stores ..................................................... 105
From USA ....................................................................................................................... 105
Pick up appointments ...................................................................................................... 105
Inbound Load Appointments (Prepaid to Cross-dock Vendors) ....................................... 106
12.6 Small Parcel (Courier) Shipments ............................................................................ 107
12.7 Routing Guidelines - Imports .................................................................................... 108
Procedure ....................................................................................................................... 111
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Accounts Payable .......................................................................................... 115
13.1 Invoicing Requirements ............................................................................................ 115
13.2 Payment Policy / Terms ........................................................................................... 119
13.3 Invoice Reconciliation/Dispute Process .................................................................... 121
13.4 Correspondence ...................................................................................................... 126
13.5 Returned Goods ....................................................................................................... 126
Specifications for Credit Memos ...................................................................................... 128
13.6 RTV Reconciliation/Dispute Process ........................................................................ 129
13.7 Out for Repair .......................................................................................................... 130
13.8 Invoicing Requirements (Import Only) ...................................................................... 130
Documentation for U.S. Customs Clearance and Payment ............................................. 130
Import Shipments ............................................................................................................ 131
Returns .......................................................................................................... 132
14.1 Returned Goods ....................................................................................................... 132
Restocking Charges ........................................................................................................ 132
Supplier Measurements ................................................................................. 134
15.1 Introduction .............................................................................................................. 134
15.2 On-time Fill Rate and Total Fill Rate ........................................................................ 134
Total Fill Rate (TFR) ........................................................................................................ 134
On-time Fill Rate (OTFR) ................................................................................................ 134
15.3 Collect Vendors ........................................................................................................ 135
Roles and Responsibilities .............................................................................................. 135
Life of a PO ..................................................................................................................... 135
On Time Compliance: OPT and RRF Submission ........................................................... 136
On Time Compliance: RTS Submission (TMS-enabled only) .......................................... 136
15.4 Prepaid to Store Vendors ......................................................................................... 137
Roles and Responsibilities .............................................................................................. 137
Life of a PO ..................................................................................................................... 137
15.5 Prepaid to Cross Dock Vendors ............................................................................... 138
Roles and Responsibilities .............................................................................................. 138
Life of a PO ..................................................................................................................... 138
On Time Compliance: OPT and Transit Time .................................................................. 139
15.6 Vendor KPI Report ................................................................................................... 140
Summary Page ............................................................................................................... 140
Homedepot.ca ............................................................................................... 143
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16.1 Home Depot Direct Ship Program Definition ............................................................ 143
16.2 Home Depot Direct Product Registry Setup and Maintenance ................................. 143
16.3 Direct Ship Fulfillment Program ................................................................................ 143
Direct Ship Fulfillment Inventory Availability .................................................................... 143
Direct Ship Fulfillment Backordered Product Availability .................................................. 144
Direct Ship Fulfillment Order Processing ......................................................................... 144
Direct Ship Fulfillment Purchase Order (PO) ................................................................... 144
Direct Ship Fulfillment Order Status Update .................................................................... 144
Direct Ship Fulfillment Shipment Confirmation................................................................. 145
Direct Ship Fulfillment Backorder .................................................................................... 145
Direct Ship Fulfillment Cancelled Order ........................................................................... 145
Direct Ship Fulfillment Service Levels ............................................................................. 146
Direct Ship Fulfillment Packaging .................................................................................... 146
Direct Ship Fulfillment Vacation Closings ........................................................................ 146
DIRECT SHIP FULFILLMENT BRANDING ..................................................................... 146
Direct Ship Fulfillment Logo and Name Usage ................................................................ 146
Direct Ship Fulfillment Packaging List ............................................................................. 147
Direct Ship Fulfillment Branded Shipping Cartons/Boxes ................................................ 147
Direct Ship Fulfillment Shipping ....................................................................................... 147
Direct Ship Fulfillment Delivery Standards ....................................................................... 148
Direct Ship Fulfillment Shipping Label Specifications ...................................................... 148
Direct Ship Fulfillment Freight Claims .............................................................................. 148
Direct Ship Fulfillment Returned Goods........................................................................... 149
Direct Ship Fulfillment Return-to-Vendor ......................................................................... 149
Direct Ship Fulfillment Defective or Mis-Shipment ........................................................... 149
Direct Ship Fulfillment Restocking Charges ..................................................................... 150
Direct Ship Fulfillment Product Knowledge ...................................................................... 150
Appendix A: MH10 Label Example ......................................................................................... 151
Relationship between MH10 Label, EDI 850 PO and EDI 856 ASN ....................................... 154
Appendix B: Routing Request Form ....................................................................................... 155
Appendix C: Identification Label for Dangerous and/or Freezable Goods ............................... 158
Appendix D: Sample Pallet and Loose Piece Label ................................................................ 159
Appendix E: Distribution Centre Contact Information .............................................................. 160
Appendix F: Vendor KPI Report ............................................................................................. 161
All Active Article (SKU) Breakdown, by Rolling 13-Week Total Fill Rate .......................... 165
T H E H O M E D E P O T C A N A D A | S U P P L I E R R E F E R E N C E M A N U A L 10
Introduction The Home Depot Canada’s (THDC) Supplier Reference Manual is a policy document covering the full spectrum of The Home Depot Canada-Supplier relationship from ethical responsibility to quality assurance to THDC product lifecycle. The Home Depot Canada constructed these policies to reflect an ongoing commitment to conduct business in a manner that is not only legal but respects the contributions of the stakeholders: customers, associates, suppliers, and investors.
Policies and standards, however, respond to change in business conditions and stakeholder concerns. This transformation necessitates a commitment from The Home Depot Canada to periodically update the Supplier Manual. In response, The Home Depot Canada expects suppliers to diligently review the updated manual and adjust practices accordingly.
How to use this Manual
The Home Depot Canada Supplier manual is organized to guide a supplier through five major phases of The Home Depot Canada - supplier relationship: Operating Standards, Manufacturing Cycle, Ordering Cycle, Financial Cycle, and Supplier Feedback.
The five major phases are broken down into 16 sections.
Section 1: Key Take-Aways
• Operating Standards:
Section 2: Corporate Policies
Supplier Alert Line Information
• Manufacturing Cycle:
Section 3: Manufacturing and Product Development
Section 4: Quality Assurance and Audits
• Ordering Cycle
Section 5: Electronic Commerce Overview
Section 6: Shipping Guide – General Merchandise
Section 7: Shipping Guide – Bulk Merchandise (including lumber)
Section 8: Purchase Orders
Section 9: Store Environment
Section 10: Manufacturing Excellence
Section 11: Customs Compliance
Section 12: Transportation
• Financial Cycle
Section 13: Accounts Payable
Section 14: Returns
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• Supplier Feedback
Section 15: Supplier Measurement
Section 16: Homedepot.ca
The Table of Contents follows this structure and allows the user to link directly to the sections, sub-sections, and/or appendices of interest.
HomeDepotLink
Suppliers receive official information through The HomeDepotLink portal https://homedepotlink.homedepot.com. The Home Depot Canada expects its suppliers to visit the site frequently as is required by the business conditions, but no less than once per week.
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Key Take-Aways The Home Depot expects all suppliers to be fully engaged and compliant with the requirements outlined in this document. For details, please refer to the respective section. Below is the outline of some highlights:
Electronic Commerce
Suppliers are required to setup and maintain an environment to facilitate electronic exchanges based on the appropriate governing standards body as specified in the EDI Programming Guide
Full details on the EDI requirements: https://homedepotlink.homedepot.com > Log In > Business Operations > Electronic Data Interchange (EDI) > Merchandise Suppliers (CAN) and Carriers.
Your company has a choice of either:
Utilizing a third party Value-Added Network (VAN) to manage the EDI
Using an internal EDI solution directly between you and The Home Depot
A web-based solution (via Sterling Web Forms).
The five core documents that all Suppliers will need to test in order to become compliant are:
Purchase Order (850)
Invoice (810)
Charge Back Return to Vendor (812)
Electronic Remittance (820)
Advance Shipping Notice (856)
E-SBA
Prior to doing business with the Home Depot Canada, suppliers are required to provide
contractual information about their business such as (but not limited to):
Ship location
Product type
Banking information
Payment information
RTV information
Suppliers will use the Home Depot Canada’s E-SBA web application to fill out the required
information, as well as sign and submit the form electronically.
Full details on how to access, complete and submit the form using the ESBA web application
can be found in the Canadian Merchandising Supplier E-SBA Training Guide located on the
Home Depot Link portal (https://homedepotlink.homedepot.com).
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Shipping Guide
All shipments to Home Depot facilities (stores, DC, etc.) must:
Have an appointment date / time for delivery o Appointments for pick-up of collect store orders which are cross docked through
the DC are to be made at least 24 hours prior to the delivery date
Show the Purchase Order number and Trailer Seal number on the Bill of Lading
Have a packing slip accompany all shipments Each PO shipped must be accompanied by individual packing slip (or ASN) Full description of goods being delivered (UPC codes, article numbers, related
PO#, article description, quantities, TDG regulated quantities, any special temperature and handling requirements)
Adhere to any applicable legislation regarding identification and transfer of dangerous goods.
Comply with labeling, palletizing, shrink wrapping and paperwork requirements
Vendors shipping Collect
Vendor sends a Routing Request File (RRF) to THDC Transport to request pick-up of shipment from Vendor’s shipping location
o Deadline for RRF submission is 11am of the day prior to pick-up day (11am 48hrs prior to pick up day if going to DC 7275 in Vaughn, ON).
Expected pick-up day is on ‘Ship No Later’ date indicated on the EDI 850 PO (DTM*038*CCYYMMDD). If Ship No Later date is not available on the PO, pick-up day is based on the agreed upon vendor turn time (VTT), unless communicated otherwise by THD.
TMS-enabled vendors only
Mark orders as Ready To Ship (RTS) no later than 11 am two days prior to pick-up day
RRF requirement same as above
Expected pick-up day is on ‘Ship Date’ indicated on the PO (DTM*038* segment)
Have products available for pickup during regular working hours confirmed with THD
For detailed information on TMS visit: https://homedepotlink.homedepot.com > Log In > Business Operations > Transportation & Logistics > Home Depot Transportation (CAN) > Canada TMS Vendor Guide.
Basic Cross Dock shipments
RRF and TMS (if applicable) requirements are same as above
Submit one Master BOL per trailer. o If a trailer includes shipments for multiple stores, submit individual BOL per store.
Submit an individual Advanced Shipment Notice (ASN) per Store PO through EDI 856. o ASNs must be received prior to physical delivery of the shipment at the THD DC. o For vendors within 2 hours transit distance from THD DC, a tolerance for ASN
receipt at DC is 2 hours.
Vendor must comply with alternate routing instructions provided by THD Transport, including shipping with a parcel carrier.
All shipping containers shipped to THD DC must be labeled with MH10 / GS1 shipping label, containing the UCC/EAN 128 Serialized Shipping Container Code.
o The electronic ASN must contain the associated barcode.
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Purchase Orders
Auto-Replenishment – driven by SAP Forecast & Replenishment (F&R) system. Key input parameters: procurement cycle (i.e. order frequency), lead time and minimum order quantities.
Manual Orders - may not always follow parameters maintained in SAP.
Purchase orders transmit daily via EDI. Subsequent PO revisions, if any, are auto-faxed.
Review all orders for accuracy (costs, lead times, etc.) and inform THD of any discrepancies in a timely manner.
o Lack of verification of the order could result in inaccurate and untimely payments.
The Home Depot does not accept back orders on any replenishment stock orders. o Auto-generated orders will be closed if not delivered within reasonable time frame. o Do not ship orders after ‘cancel by’ date – contact IPR to either get a delivery date
extension or secure a replacement order.
Inform IPR and merchant of any supply constraints so adjustments to replenishment can be made as soon as possible.
For any holiday shut downs or facility closures, a 90-day prior notice to [email protected] is expected
Accounts Payable
Invoicing Requirements
Submit invoices electronically (via EDI, or through the browser-based Sterling Web Forms). o Contact [email protected] to initiate an electronic invoicing
solution. o Paper invoices are subject to a processing fee of $25.00 USD, $35.00 CAD.
One invoice per purchase order per shipment per store/DC.
Payment is made per the terms stated on the purchase order.
Reconciliation / Disputes
3 steps for account reconciliation: Identification, Root Cause Analysis, and Resolution.
Submit disputes through Merchandise Payables Self Service Portal (MP-SSP) o https://my.directcommerce.com/Login.jsp?customer=homedepot.
MP-SSP disputes are processed in the order in which they are received (first in/first out).
Only reconciling items that are submitted with the 12 month timeframe will be addressed.
Supplier Measurements
All suppliers have their performance measured and monitored. o Provide on time, accurate and consistent service to the stores.
Review your scorecard weekly (it is posted on Monday) and action any deficiencies.
The Vendor KPI report is found in https://homedepotlink.homedepot.com > Log In > Reports > Weekly Canadian Supplier Scorecard.
On-time Fill Rate and Total Fill Rate – all vendors
Both are measured in ordered units.
Total Fill Rate - % of ordered units received in our stores
On-Time Fill Rate - % of ordered units received in our stores on or before the PO due date
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Ready To Ship (RTS) and Ship Date – TMS-enabled vendors
RTS on time = submitted by 11 am two days prior to pick-up day
Ship on time = on ‘Ship Date’ indicated on the PO (DTM*038* segment) Vendor’s roles and responsibilities
Be aware of dates shown on the PO and what they mean o E.g. due date is the date the PO must be delivered at the store, not shipped from the
vendor’s facility.
Do not hold PO until you have sufficient inventory to fill the entire quantity – ship what is available on time.
Prepaid Vendors
Plan shipments based on transit lead time o Deliver PO at the destination store on or before the due date.
Collect Vendors
Send RRF and mark RTS on time (by 11 am 48hrs prior to pick-up day)
Have product available for pickup during regular working hours confirmed with THD
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Corporate Policies
2.1 Ethical Standards
The Home Depot, its affiliates, divisions, and subsidiaries strive to conduct business in a responsible manner. As we expand our business activities abroad and work with suppliers globally to meet customers’ needs, it is important to preserve our collective commitment to human rights in the workplace as well as a safe work environment.
The Home Depot expects that all suppliers will abide by all applicable local laws, rules and regulations in the manufacture and distribution of merchandise or services provided to The Home Depot. All suppliers are strongly encouraged to exceed The Home Depot’s guidelines and promote continuous improvement throughout their operations.
All suppliers must be able to demonstrate compliance with these requirements at the request of The Home Depot. The Home Depot will conduct annual Social and Environmental Responsibility (SER) audits at factories producing licensed branded or exclusive products. For all other suppliers of merchandise, The Home Depot will evaluate their SER or corporate responsibility program to ensure that it is consistent with The Home Depot’s compliance areas listed below. If you do not have an SER program or corporate responsibility program, The Home Depot will work with suppliers to ensure that they are building their internal capabilities to monitor compliance at their facilities. The Home Depot reserves the right to audit any supplier’s operations involved in the manufacture, distribution of merchandise or services provided to The Home Depot. The Home Depot expects that any changes to the supplier’s company/factory or manufacturing location will be communicated in writing to The Home Depot for evaluation. In addition, the manufacture of The Home Depot products must not be relocated from approved facilities without the prior approval of The Home Depot Quality Assurance team.
These guidelines provide an introduction to the minimum requirements that all suppliers must meet in order to conduct business with The Home Depot. These requirements are part of all new and/or renewed commercial agreements with The Home Depot.
2.2 Former Associates’ Relationships with the Home Depot’s Suppliers Policy:
The Home Depot will not do business with Former Associates working for a supplier supplying product or services to The Home Depot for a period of one (1) year after the Associate’s separation from The Home Depot (“Cooling Period”).
The purpose of this policy is to eliminate any risk that the Former Associate will use its relationships with current Home Depot associates to improperly influence the parties’ business dealings and further safeguard Home Depot proprietary and confidential information that the Former Associate acquired during the course of employment that would inevitably be compromised.
During the Cooling Period, the Former Associate will not have any access to The Home Depot facilities. The Former Associate will not be allowed to participate in any meetings with current Home Depot associates working with the Former Associate’s new supplier employer. In addition, Former Associates have an independent obligation not to use or disclose Home Depot Confidential Information.
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This policy applies at all times and the cause of the Former Associate’s separation from The Home Depot (i.e., voluntary departure, Company reduction, etc.) does not change this policy.
The Vice President over the Former Associate’s previous department may authorize an exception to the current policy or may designate a Senior Director to review and approve exceptions. All exceptions must be approved in advance and must be submitted to the Corporate Compliance Department at [email protected].
2.3 Supplier Alert line Information:
If you become award of a situation where you think The Home Depot’s values or compliance with the law may be compromised, you should immediately bring this to our attention by contacting the Supplier Alert Line at: https://www.integrity-helpline.com/hdsupplier.jsp or by contacting the following locations:
United States and Canada – 7-800-435-3152
Mexico – 001-888-765-8153
China – 10-800-711-0714 or 10-800-110-0654
2.4 Social and Environmental Responsibility (SER)
Transparency:
Suppliers are required to provide transparency into their operations, policies, processes, and relevant records to The Home Depot or its designated third party.
Suppliers are required to disclose conditions that may be in conflict with any Home Depot Standards or any applicable regulations or laws in facilities that manufacture, inspect, package, store or handle THD goods. Access must be provided to Home Depot or designated third party representatives to conduct an assessment of the facility manufacturing THD products. This includes access to the facility, confidential employee interviews and any documentation necessary to complete an SER assessment and validate compliance to these Standards.
Suppliers must disclose the identity, physical location and ownership of all factories that will manufacture or come in contact with THD goods, including the use of sub-contractors. Any proposed change from one factory to another or the use of sub-contractors must be approved by The Home Depot before production begins.
Age Requirements:
Suppliers will not employ any person(s) under the age of 16 Suppliers will not use child labor as legislated by the country were The Home Depot product
is manufactured. We expect our suppliers to hire employees who meet at least the local minimum age requirements for employment. Were no laws exist that govern such a requirement workers employed may not be hired under the age of 16.
If Apprentice programs exist, suppliers must observe all legal requirements for the work of minor(s) (age15 through 17) they must be in compliance with all applicable conditions as outlined in local laws and regulations.
Exceptions to this apply only to family or small-scale businesses which do not regularly employ hired workers.
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Forced Labor:
The Home Depot will not accept or tolerate the use of any forced or involuntary labor, either directly or indirectly by our suppliers, contractors or subcontractors. Employment must be voluntary. Forced, slave, bonded or indentured labor will not be used to
produce merchandise for Home Depot or any of its subsidiaries. This includes the use of slave labor, bonded labor, indentured labor or involuntary convict labor. Workers cannot be required to surrender their identity papers or other original personal documents or pay deposits as a condition of employment. Workers must be free to leave the workplace at the end of their shift and to resign without repercussion. All overtime should be voluntary and should not be in excess of legal limits.
Workers hired through contract work agencies, including migrant workers shall be employed by our suppliers in strict accordance with relevant international agreements between the receiving and sending countries.
Fraud:
Supplier will not willfully conspire to deceive during the course of business with THD Suppliers must guarantee that all merchandise sold to The Home Depot does not infringe on any patent, trademark, or copyright and will provide, upon request, all necessary licenses. Suppliers must ensure that all merchandise is accurately marked or labeled with its country of origin and other labeling information in compliance with the laws of the country in which the merchandise was manufactured and the countries in which the merchandise will be sold. Suppliers must ensure that all timecards, payroll and overtime documentation and other records at the facility accurately reflect manufacturing conditions at the facility Supplier providing fraudulent documentation, or statements with a willful intent to deceive will be in direct violation of these standards
Compensation and Work Hours
Suppliers must comply with all country wage and compensation requirements as defined under national labor laws for regular work, overtime, maximum hours, production rates and other elements of compensation and employee benefits. Suppliers must have a system in place to verify and accurately record payroll, deductions and
the hours worked by employees as mandated by local laws. All workers, including trainees, must be paid at least the cash equivalent of the minimum legal
wage. Workers must be paid directly on a regular basis per a published schedule. At a minimum, legally mandated benefits must be provided to all employees without onerous, unjust, or disproportionate deductions from their compensation.
Employees must have access to their accurate and complete personal earnings records, kept according to generally accepted accounting principles
Workers must not work more hours in one week than allowable under applicable laws or 72 hours per week, whichever is less.
Workers must be properly compensated for overtime work as required by and should be voluntary and within the local limits.
Employees must be allowed at least one uninterrupted, 24-hour rest period after every 6 consecutive days worked
Non Discrimination:
Employment should be based solely on the person’s ability to perform the job requirements and not personal characteristics. This should include but not be limited to hiring, salary, benefits, advancement, discipline or termination.
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Home Depot requires that its suppliers treat their employees with respect and dignity. Suppliers must provide a work environment free of physical punishment in any form.
Suppliers shall not discriminate on the basis of race, color, national origin, gender identity, sexual orientation, religion, disability, age, parental status, pregnancy, or other similar factors in hiring practices or any other term or condition of work, including assignment of work, occupational training, advancement, promotion, wages and other compensation, granting of social benefits, discipline or termination.
We expect our suppliers to have a commitment to basic principles of human rights. Suppliers must treat all workers with respect and dignity. Suppliers must not use or permit corporal punishment or any other form of physical or psychological coercion including verbal abuse and sexual harassment. Suppliers shall implement reasonable procedures for disciplining and/or terminating workers including maintaining appropriate documentation.
Suppliers shall not use monetary fines as a punitive disciplinary practice.
Environment, Health and Safety:
The Home Depot requires that its suppliers provide a safe and healthy working environment in accordance with applicable local laws and shall have a comprehensive set of employment/personnel policies and procedures that are fully communicated to their workforce. Suppliers must recognize and respect the right of workers to freedom of association and to
bargain collectively as required by law. Workers must not be subject to intimidation or harassment in the exercise of their right to join or to refrain from joining any organization. In addition, suppliers must foster and maintain conditions in which workers can freely communicate grievances and expect prompt and reasonable action.
Employers who offer residential facilities must ensure that these facilities also provide their inhabitants with a safe and healthy living arrangement, in accordance with all-applicable laws and regulations.
Employers are required to provide and make available appropriate personal protective equipment for hazardous work conditions at no cost to all applicable employees .All required environmental permits (e.g. discharge monitoring) and registrations are to be obtained, maintained and kept current and their operational and reporting requirements are to be followed.
Chemical and other materials posing a hazard if released to the environment are to be identified and managed to ensure their safe handling, movement, storage, recycling or reuse and disposal. Records of hazardous materials disposition shall be maintained. Written policies for the minimization of hazardous materials shall be maintained.
Wastewater and solid waste generated from operations, industrial processes and sanitation facilities are to be monitored, controlled and treated as required prior to discharge or disposal. Records of effluent monitoring shall be retained for comparison to permitted discharge levels. Written plans to minimize water use in all operations shall be implemented.
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting chemicals and combustion by-products generated from operations are to be characterized, monitored, controlled and treated as required prior to discharge. Records of air monitoring shall be retained for comparison to permitted emission levels.
Suppliers are to adhere to all applicable laws and regulations regarding Product Content Restrictions prohibition or restriction of specific substances including labeling laws (for both source and end market countries) and regulations for recycling and disposal.
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2.5 Conflicts of Interest:
The Home Depot’s Business Code of Conduct and Ethics Policy instruct The Home Depot associates to avoid conflicts of interest.
o A conflict of interest occurs when an individual’s private interest interferes (or appears to interfere) in any way with the interests of The Home Depot. As conflicting loyalties impair an associate’s ability to make objective decisions, conflicts of interest must be avoided.
o A conflict of interest can result from, but is not limited to, certain relationships between an associate and a customer, supplier, competitor, family member, or friend.
o A conflict exists when the parties to the relationship give or receive (or appear to give or receive) unfair advantages or preferential treatment.
Conflicts of interest also arise when an associate or a member of his or her family receives improper personal benefits as a result of his or her position with the Company. Having such a conflict arouses suspicion about an associate’s integrity and can cause damage to the reputation of The Home Depot.
The Home Depot expects all suppliers to be aware of this policy and to avoid contributing to a conflict of interest or the appearance of a conflict of interest. Any involvement by a supplier in any conflict may be grounds for a termination of business
2.6 Gifts and Entertainment:
The Company has a zero tolerance policy for receiving gifts and entertainment when there is any chance that the purpose is to: improperly influence the recipient; violate the Company's Policies; or violate the law. Gifts and entertainment apply to anything received as a result of an actual or potential business relationship and for which the recipient does not pay face value.
In the event that the recipient is willing to pay face value for a ticket or other gifts and entertainment, when in fact the market value is significantly higher than the face value (e.g. Super Bowl or Masters Tournament tickets), the associate must still have the item approved in advance in accordance with this policy.
Examples of gifts and entertainment include: meals, travel and travel accommodations for business or vacation purposes, tickets to sporting or cultural events, discounts not available to the general public, gift certificates, supplier product samples for personal use, wine or alcohol and any other merchandise or services.
For the purposes of this policy, the following shall not be considered gifts and entertainment and may be accepted within reason: continuing professional education or development opportunities; meals provided or paid for by suppliers or suppliers, during traditional business hours, where business discussions or negotiations are the main purpose; mementos or other similar awards provided or paid for by suppliers as recognition for service on a particular matter where such memento or award has no intrinsic value; and other industry events where multiple clients or potential clients are invited or which are open to the public.
2.7 Foreign Corrupt Practices Act Policy:
The U.S. Foreign Corrupt Practices Act (the “FCPA”) is a criminal statute which prohibits the corrupt payment of money or giving of things of value, i.e., “bribes,” to foreign officials in order to obtain or retain business. The Home Depot’s commitment to the highest ethical standards and to
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open and fair business conducted worldwide clearly encompasses compliance with applicable U.S., Canadian and international laws, including the FCPA.
The Home Depot’s employees and agents should understand that any actions taken by them on behalf of the Company in violation of the FCPA create criminal exposure for themselves, the Company and, in certain circumstances, its foreign subsidiaries. The Home Depot trusts in the integrity of its employees and expects each to comply willingly and completely with the FCPA and this Policy.
Policy:
Suppliers may not offer or give anything of value to a foreign official, a foreign political party official, a foreign political party or a candidate for foreign political office that might be considered a bribe.
To the extent permitted by applicable local law and regulation, suppliers may make certain permissible payments under the FCPA – expediting or facilitating payments, gifts and entertainment, political contributions and charitable contributions – only with the approval of a The Home Depot Compliance Coordinator (Compliance Coordinator). Suppliers may not enter into any agreement with a foreign attorney, foreign accountant, foreign consultant, foreign subcontractor or other third party without obtaining the prior written approval of a Compliance Coordinator. Suppliers must make accurate and complete entries in their records and follow generally accepted accounting procedures as required by local law. Suppliers may not make any false or misleading entries on their books and records.
2.8 Sanctions:
Criminal sanctions for violations of the FCPA for individuals include fines of US$250,000.00 or more (which cannot be reimbursed by the employer/principal) and six years imprisonment.
Individuals subject to the FCPA and its penalties include: Employees and agents of U.S. companies, regardless of nationality U.S. nationals who are employees or agents of foreign subsidiaries Non-U.S. employees and agents of foreign subsidiaries who perform actions within the United
States or use any of the U.S. interstate facilities, e.g., telephone, fax or e-mail, in furtherance of a bribe.
Criminal sanctions for violations of the FCPA for corporations include fines of US$2,000,000.00 or more. Companies subject to the FCPA and its penalties include: U.S. companies for actions taken by their employees or agents either within or outside of the
United States and regardless of the nationality of the employee or agent Non-U.S. companies, e.g., foreign subsidiaries of U.S. companies, for actions taken by their
employees or agents that occur in the United States or that include the use of interstate facilities, e.g., telephone, fax or e-mail.
2.9 Adequate Records; Adequate Controls:
The FCPA also imposes a statutory duty on public reporting companies such as The Home Depot to maintain accurate books and records and an adequate system of internal accounting controls. This duty also extends to ensuring that the subsidiaries, domestic and foreign, of public companies such as The Home Depot also comply with these records and controls requirements.
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Manufacturing & Product Development
3.1 Product Engineering
Product tests, inspections, and evaluations will be conducted, where deemed appropriate by The Home Depot, to ensure product meets or exceeds all applicable requirements. These evaluations can be conducted on an announced or unannounced basis and can be conducted in the factory on incoming components, work in process, or finished goods; or by pulling product out of the supply chain or The Home Depot stores for evaluation. Relevant requirements can include:
• Safety standards • Industry standards • Regulatory requirements • Performance and other claims made by the supplier • Specific The Home Depot requirements
Suppliers are required to comply with the instructions received by The Home Depot or its designated service provider, to include:
Submission of required samples (e.g., pre-purchase, production, returned goods, or samples involved in legal claims)
Submission of required forms (e.g., safety listing files and product claim forms) Submission of product-related data (e.g., specifications, production records, product
quality data) Payment of fees (process may require pre-payment of test fees before lab initiation)
To the maximum extent practical, product-specific expectations will be shared with the supplier by The Home Depot or the approved service provider prior to conducting the evaluation (e.g., test, inspection, document review, etc). The objective is to reach agreement on defect classifications and acceptable tolerances prior to conducting the review, especially for unregulated products or product attributes. New suppliers, new factories, and new products will be treated differently than those with historical records available to The Home Depot.
Consistently positive quality results will lead to a reduced number of tests and inspections by The Home Depot, whereas negative quality results will be cause for increased levels of measurement efforts.
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Quality Assurance and Audits
4.1 Quality Assurance Program:
The Home Depot’s Quality Assurance (QA) program is in place to:
Support the supplier and product selection process
Evaluate supplier performance in the areas of factory, product, and packaging quality
Facilitate the continuous improvement efforts of The Home Depot’s suppliers
To protect the company, our associates, and our customers
The Home Depot QA program is NOT a replacement for any quality control procedure required by the supplier to manufacture and deliver compliant product.
4.2 Supplier Requirements:
Ensure that all changes to previously approved PROPRIETARY BRAND or DIRECT IMPORT products be communicated in writing to The Home Depot for approval, prior to implementation.
Detailed Quality Assurance requirements for Direct Import Suppliers can be found in The Home Depot Import Supplier Handbook.
An Engineering Change Notice, or ECN, process has been developed and is referenced in more detail in Package Engineering.
Report all “substantial product hazards” as defined and required by the 1985 Canadian Hazardous Products Act (laws.justice.gc.ca/en/H-3/index.html), as applicable. In addition, suppliers who are made aware of potentially reportable product hazards by anyone other than by The Home Depot personnel (e.g. customers or safety listing agencies) are required to immediately notify The Home Depot at [email protected].
Suppliers must focus on the prevention of quality issues, not just their correction.
Quality cannot be inspected into a product or package after it is manufactured. Quality must be designed into the item. The sooner a design is evaluated for compliance to specifications, safety requirements, performance requirements, material handling characteristics, and manufacturability, the more cost-effective the entire process becomes. Once the design is validated, the manufacturing process should also have defect prevention solutions embedded throughout the process in order to be the most cost effective.
Even when The Home Depot provides suppliers product requirements, specifications, or other forms of expectations (e.g. form, fit, or function), the supplier is responsible for complying with all applicable laws and regulations.
The Home Depot suppliers are required to comply with Section 2 of this manual. In addition to those requirements, suppliers cannot offer bribes to Service Providers and Home Depot employees in the effort of receiving preferential treatment. In the same spirit, Service Providers and Home Depot employees cannot request “gifts” from suppliers. Suppliers must notify The Home Depot immediately if this situation occurs.
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4.3 Measurement and Enforcement:
To ensure proper implementation of, and compliance with, these standards, The Home Depot will undertake appropriate measures, such as auditing, testing, and inspection of suppliers’ factories, products, and packaging.
The Home Depot reserves the sole and exclusive right to determine the appropriate scope, frequency, and timing of said affirmative measures and to interpret and enforce these standards. The supplier is responsible for providing the necessary data access and support to The Home Depot representatives in order for them to carry out all related responsibilities. This will include providing The Home Depot product and packaging test data and specifications on request (i.e., Bill of Material, drawings, material analysis and weights, relevant certificates of conformance, patent information, photos, and assembly / operating instructions).
The Home Depot has the sole authority to select, direct, and manage all third party services associated with the QA program. This includes conformity assessment agencies (e.g., Underwriters Laboratories (UL), CSA, or ETL), factory evaluation services, test labs, inspection companies, engineering service firms, and any others deemed necessary by The Home Depot. For all product sold to The Home Depot that is eligible for a safety listing, the supplier is required to sign over legal access to conformity assessment files to The Home Depot, upon request.
If the supplier chooses to pursue independent accreditation or certifications for their facilities and/or products that are over and above the minimum standards set by The Home Depot, they will be taken into consideration as the appropriate affirmative measures to implement are determined. For example, if a supplier chooses to pursue a relevant, independent accreditation for an on-site test laboratory, The Home Depot will look favorably on this action and incorporate these capabilities into the quality control plan, to the maximum extent reasonable.
4.4 Corrective Actions / Preventive Actions (CAPA):
If it is determined that a factory utilized by a supplier for the manufacture of product for The Home Depot, or the product or packaging itself, is found to be in non-compliance, the supplier must take corrective actions. In addition, the supplier is required to define preventative measures that will be put in place to ensure the event does not occur on future shipments.
Actions must:
Be documented in The Home Depot’s CAPA Form.
Correct the non-compliance in the specified timeframe.
Prevent future non-compliance issues.
Failure to meet defined requirements can result in delayed shipments, deficient ratings on Supplier Scorecards, canceled purchase orders, and further repercussions as defined by The Home Depot.
Contact Information
For more information on this document, or more detailed Standard Operating Procedures, contact your appointed QA service provider (if already selected) or The Home Depot’s QA team at [email protected] and you will receive a response within 3 business days.
Globally-based QA team members are also available to answer questions at the following telephone numbers:
Shanghai, China 86-21-6164-8000
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Shenzhen, China 86-755-8370 9288
Monterrey, Mexico 52-81-8155-7143 or 52-81-8155-7163 or 52-81-8155-7191
Naples, Italy 39-347-552-2878
Factory Development
Suppliers to The Home Depot are required to document the following steps in the product’s lifecycle and have that documentation available for The Home Depot upon request.
Design Review – Confirmation from an accredited third party or accredited in-house laboratory that the product meets all applicable federal, provincial and local laws, in addition to all THD performance and functional requirements.
Quality System Assessment – Documentation of regular, random inspections of manufacturing process by an accredited third party or accredited in-house auditor. The audits should document that quality assurance systems are in place to assure that the product meets all applicable federal, provincial and local laws, in addition to all THD performance and functional requirements. These systems include, but are not limited to:
Supplier Management and control
Process control
Calibration and Maintenance of machinery and test fixtures
Organizational structure
Document Management
Corrective Action Process
Continuous Improvement activities
Manufacturing Process Control – Verification that the factory in which the product is being produced has adequate quality procedures and capacity. Points for verification include but are not limited to:
Incoming component and raw material inspections
In-line/In – Process quality inspections
Finished product inspection and testing
Capacity Analysis
Change Management – Documentation of all approval processes (internal and external approvals) for modifications to the product that affect:
Aesthetics/Cosmetics
Safety
Material Substitution
Packaging
Performance
Graphics / Copy Text (packaging)
Alternative components
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Suppliers are also required to have the factory, handling and intermediate distribution points information available upon request for The Home Depot. This information may be required if there are quality issues or violations of government regulations. If the factory information is requested, the supplier is required to submit all information related to the factory including, but not limited to the information referenced above.
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Electronic Commerce Overview The Home Depot Canada is using electronic commerce technology to support supply chain improvements, resulting in improved customer service and reduced costs, while we grow our business. Utilizing electronic commerce technology will reduce the time that it takes to exchange information, increase the accuracy of the information and will result in improved on shelf availability of product for the customers to purchase.
5.1 Electronic Data Interchange (EDI)
The benefits of conducting business electronically, instead of manually faxing or mailing paper, are lower costs from reduced manual data-entry errors and postage costs, timeliness due to rapid exchange of business data, accurate information and audit trails of transactions as well as flexibility of the technology. As we look for ways to drive down the cost of doing business, we are pleased to extend electronic trading programs to all of our business partners to gain efficiencies across the supply chain. Your company has a choice of either:
• Utilizing a third party Value-Added Network (VAN) to manage the EDI (Electronic Data Interchange) between you and The Home Depot
• Using an internal EDI (Electronic Data Interchange) solution directly between you and The Home Depot Canada
• A web-based solution to trade business documents electronically (via Sterling Web Forms).
Core Documents - The five core documents that all Suppliers will need to test in order to become compliant are the Purchase Order (850), Invoice (810), Charge Back Return to Vendor (812), Electronic Remittance (820) and Advance Shipping Notice (856). All Suppliers are required to have the ability to transmit these documents electronically within 90 days of becoming a Supplier. If your company fails to fulfill this requirement, you will be subject to compliance offsets. The Home Depot requires that you receive payments via electronic funds transfer and must provide valid ACH banking details (routing and account numbers)
Electronic Data Interchange (EDI) is an exchange of business transactions utilizing a standard format. EDI is Home Depot’s preferred method for electronic exchanges of business transactions. The Home Depot EDI program relies on the standards and conventions as developed by the American National Standards Institute (ANSI) that are common across the industry and used by most major retailers. There are two ways to access the EDI information:
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Via EDI VAN (Value Added Network)
Web Based Solutions - A web-based solution allows partners the ability to trade business documents electronically via the Internet through a VAN partner pre-selected by The Home Depot. These solutions allow you to participate in the exchange of business transactions if you do not possess the technical or capital resources to purchase and support an EDI system.
Via Sterling Web Forms
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5.2 Required / Mandatory Transaction Sets
The Home Depot Canada expects all suppliers, at their expense, to maintain the appropriate systems and software to facilitate the electronic exchange of information pertinent to the respective business relationship.
The Home Depot Canada expects all suppliers to be fully engaged and compliant with the requirements of the Business to Business (B2B) electronic exchange program within 90 days of becoming a supplier to The Home Depot Canada. Suppliers are required to visit the web site for full details on the requirements: https://homedepotlink.homedepot.com > Log In > Business Operations > Electronic Data Interchange (EDI) > Merchandise Suppliers (CAN) and Carriers.
Suppliers are expected to review the requirements, and ensure compliance in all aspects, of the EDI Programming Guide for the electronic program specific to their business relationship with The Home Depot.
Suppliers are required to setup and maintain an environment to facilitate electronic exchanges based on the appropriate governing standards body as specified in the EDI Programming Guide
Suppliers are required to maintain a transmission schedule to support the business as specified in the respective EDI Programming Guide
Upon receipt of an electronic document from The Home Depot, suppliers are required to transmit an electronic acknowledgement within the set time to support the business, as specified in the respective Implementation Guide(s). The electronic acknowledgement will certify and establish evidence that the electronic document has been properly received.
Suppliers are required to monitor the receipt of acknowledgements from The Home Depot for electronic documents sent by the supplier and take prompt action to resolve issues relating to unacknowledged electronic transmissions.
Suppliers are required to maintain electronic document version numbers, which are compatible with The Home Depot’s implementation.
Basic Cross Dock EDI Requirements
For detailed EDI related specifications, vendors must refer to THDC BXD 850 PO and 856 ASN Mapping Specs documents. These can be found on the HDLink website at: https://homedepotlink.homedepot.com > Log In > Business Operations > Electronic Data Interchange (EDI) > Merchandise Suppliers (CAN) and Carriers.
For orders that cannot be processed via EDI communication as per THDC BXD requirements, vendors are not expected to provide an ASN.
5.3 EDI Implementation Guide
Inbound Documents
The Home Depot’s Inbound Documents (810/Invoice, 855 Purchase Order Acknowledgement, 856/Advance Ship Notice, 753 Routing Request, 997/Functional Acknowledgment)
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A successful validation test per document will be required as part of the “Domestic Merchandise Suppliers – EDI Program” with The Home Depot using Commerce Desk. The deadline date for testing is detailed in the “My Programs” tab. Please start testing as soon as possible, as it may take you several tests to complete the validation tasks.
The validation tests will verify that the documents meet these mapping specifications. Software needed to test on our Testing application – Notepad or other .TXT or .DAT file
application. All test data should be copied from the Partners’ live environment. Paste raw EDI data in
Notepad; be sure to remove any Unicode (unprintable) characters. Testing will be complete when The Home Depot can successfully translate all inbound
documents.
855/Purchase Order Acknowledgement Requirements
The purchase order acknowledgement must be sent within 2 business days of receiving the Purchase Order from The Home Depot Canada
The PO acknowledgement may be sent at a header level, if you are accepting the Purchase order as sent
If you are unable to fill the purchase order, as received, you need to send the detailed lines, indicating the revised quantity, date or cost for the line item.
753/Request for Routing Instructions
Multiple Purchase Orders can be mapped per Request for Routing instructions for one location.
856/Advance Ship Notice (ASN) Requirements
Multiple Purchase Orders can be mapped per ASN for one location. All ASN scenarios used by the partner must be tested.
ASN transactions are required for all regular merchandise orders. The ASN shipment detail must match the physical shipment.
The ASN must include the following accurate information:
Pro Bill # SCAC Pack Size Store Number
Purchase Order Number (PO)
Universal Product Code (UPC)
Shipped Quantity DC Number
Supplier Part Number Stock Keeping Unit (SKU)
Bill of Lading Number UCC128 label barcode
Unit of Measure Unit Cost Lading Quantity Ship Date
ASN’s must be transmitted at the time of shipment. This is based on the need for the ASN to arrive at the store or distribution center prior to receipt of goods. One ASN per shipment. If multiple loads are being shipped, then an ASN must be built for each shipment being sent. Rejected or erred ASN’s must be corrected and re-sent within a timely manner with the same doc trace ID.
810/Invoice Requirements
Valid payment terms must be mapped in accordance with ANSI standards. Map the payment terms according to the terms of your Supplier Buying Agreement. A payment terms matrix is provided in this document to assist in mapping.
Invoice date must be less than or equal to the current date.
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Currency type must be in accordance with the terms of your Supplier Buying Agreement.
Appropriate hash total calculations to sum the number of line items and total quantity.
All charges and allowances must be mapped at the summary level SAC segment of the invoice using the retail method of accounting (refer to the mapping specifications).
The invoice total must include any SAC segments.
Rejected or erred invoices must be corrected and re-sent within 5 days with the same doc trace ID (invoice number).
The invoice must include the following accurate information: Unit Cost
Supplier Part Number
Stock Keeping Unit (SKU)
Universal Product Code (UPC)
Invoice Date
Store Number
Unit of Measure
Purchase Order (PO)
Line Item Quantity
Accounts Payable Number
Merchandise Supplier Number
997/Functional Acknowledgement requirements
• The 997 must be at Transaction Set Level (include the AK2 and AK5 segments). • Home Depot requires a 997 within 12 hours of receipt of all outbound documents.
Outbound Documents
The Home Depot’s Outbound Documents (820/Remittance Advice, 850/Purchase Order, 997/Functional Acknowledgment, 864/Text Message) Generic data for the outbound documents is available on the Commerce Desk testing system. These documents need to be downloaded and processed through the Partner’s applications to ensure that they will process correctly.
• 820/Remittance Advice
The 820 is required for Electronic Funds Transfer (EFT) Electronic Funds Transfer (EFT) is not available in Canada at this time. The Home Depot uses a different ISA ID for the 820. Please note that 997’s need to be
sent to this ID for the 820 document.
•• 830/Planning Schedule
The 830 is provided weekly, with a 26 week outlook The quantities provided are to be used for planning purposes only
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The quantities represent a time phased view of what The Home Depot Canada expects to purchase to fulfill the sales plan. The quantity provided incorporates promotional requirements and any changes to the network.
850/Purchase Order
A duplicate Purchase Order check is required to ensure Purchase Orders are not processed multiple times. This check must be based on Purchase Order number and ‘ship to’ location (store number). This is required for Purchase Orders only.
The Home Depot requires that all Purchase Orders be picked up within 12 hours after posting to the VAN.
997/Functional Acknowledgment 864/Text Message Reconcile 997’s to any transactions and resend documents where The Home Depot has
rejected a transaction or The Home Depot has not received the documents. The 997 will note errors for ANSI standards. Error codes for the 997: ‘E’ – Conditional ANSI error. The Home Depot will try to process the document. Be sure to
monitor for an 864. Any errors need to be corrected on future documents. ‘R’ – Document Rejected. The Home Depot could not process. The document will need to
be corrected and re-sent.
• 864/Text Message
The 864 document contains The Home Depot proprietary errors on the original document. Any document receiving an 864 message needs to be corrected and resent within a timely manner.
The Home Depot will also send the 864/Text Message in the case of a duplicate interchange. If you receive such notification and the transactions within the interchange had not previously been sent, retransmit the interchange using a unique interchange control number.
• 754/Routing Instructions
The 754 document contains The Home Depot Canada’s routing information for collect suppliers, including the carrier information and the pickup date and time.
Production Communication IDs ISA06/08 ISA05/07 GS02/03
US 0722717110100 14 072271711
Canada 072271711CAP 14 072271711C
820 072271711USAP 14 072271711USAP
Invoice Payment Terms Matrix
The following is a matrix providing examples for calculating the 810/Invoice payment terms using the nominal and prox due date procedures.
Terms Type Code Examples
Terms Type Code
Terms Basis Date Code
Terms Disc Percent
Terms Disc Due Date
Terms Disc Days Due
Terms Net Days
Terms Disc Amount
Day of Month
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ITD01 ITD02 ITD03 ITD04 ITD05 ITD07 ITD08 ITD13
DAYS Definition: Due date is determined by counting the day specified per agreement. Counting begins at an agreed point (i.e. invoice date, ship date, etc.)
Example # 1 Net 30 Days Basis: Invoice Date
01 3 N/A N/A N/A 30 N/A N/A
Example # 2 2% 30 Days Net 45 Basis: Delivery Date
01 2 2 N/A 30 45 N/A N/A
PROX Definition: Prox invoices are due on the 10th of the month. The month is determined by applying a cutoff date of the 25th. The cutoff is based either on the invoice receipt date or goods receipt date. Receipt dates prior to 25th are due on the 10th of the following month. Goods received after the 25th are due the 10th of the following month plus 1 month
Example #1 Net 10th Prox Basis Invoice Date
09 3 N/A N/A N/A 10 N/A 25
Example # 2 2% 10th Prox Net 11th Basis Delivery Date
09 2 2 N/A 10 11 N/A 25
5.4 Ship Notice (ASN)
A Ship Notice is an EDI formatted notification (packing list) of pending inbound deliveries to THD. In addition to the information included on the BOL, the document provides the THD shipper ID number, BOL number in the reference section, and the lading quantity. The ship notice will provide shipping container content detail, detailing the contents of each shipping container.
The lading quantity is expressed as either the number of visible outer cartons and/or number of master cartons (larger uniform shipping carton for smaller packages or cartons). Failing to populate the ASN with the required elements equates with failure to send an ASN and negatively impacts Supplier Performance.
The timing of the ASN is critical; the supplier must transmit the ASN to the THD facility prior to the physical arrival of the shipment. ASN information will be used to plan transportation and DC requirements and will help to ensure that loads are collected and processed through to stores in a timely & cost efficient manner.
Suppliers should conduct an internal evaluation to determine company capability to comply with the timing standard. Areas of concern include:
Proximity of shipping location to THD facility
System processes of order close out and shipment confirmation
System timing of ASN creation
System timing of ASN transmission
Frequency and timing of outbound EDI cycles
For complete ASN requirements and EDI transmission guidelines refer to the section Electronic Commerce Overview.
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The ASN contains all the information required in the standard EDI transmission and suppliers are tested prior to on boarding. The THD B2B and Supplier Performance teams lead the pre-certification efforts.
The supplier’s BOL number for each shipment must be reported on the ASN in the BOL field. Failure to accurately populate the BOL number in the ASN will be treated as the equivalent of failing to send an ASN.
Basic Cross Dock ASN Communication Service Level
Individual ASN (Advanced Shipment Notice) per Store Purchase Order (PO)
ASN’s must be received at the THDC prior to physical delivery of the shipment
You must send the ASN no later than the actual pick-up of the shipment at your location by Home Depot Transport
The EDI PO relating to a Basic X-D shipment will be identified by a X-D PO Type (3-series PO)
An expected “Vendor Pick-Up Date” will be provided - You MUST NOT split the PO across multiple trailers
o Exception: If a PO cannot be contained on a single trailer Vendors can split the PO on multiple trailers , as long as Split POs are covered under separate ASNs and Master Bill of Lading per the respective trailer
Rapid Deployment Center ASN Communication Service Level
Individual ASN (Advanced Shipment Notice) per trailer
ASN’s must be received at the THDC prior to physical delivery of the shipment
You must send the ASN no later than the actual pick-up of the shipment at your location by Home Depot Transport
The EDI PO relating to an RDC shipment will be identified by RDC PO Type (4-series PO)
An expected “Vendor Pick-Up Date” will be provided - You MUST NOT split the PO across multiple trailers
o Exception: If a PO cannot be contained on a single trailer due to size vendors can split the PO on multiple trailers , as long as Split POs are covered under separate ASNs and Master Bill of Lading per the respective trailer
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Shipping Guide – General Merchandise
6.1 Introduction
This shipping guide has been developed for domestic, North American Suppliers who ship to Home Depot Canada, its subsidiaries and/or affiliates within Canada. All Sections of this guide apply to all Suppliers regardless of their FOB or freight payment terms.
All transportation costs, detention charges, storage and handling fees or other expenses incurred by The Home Depot because of the Supplier's non-compliance with the terms and conditions of the Supplier Buying Agreement shall be charged to the Supplier.
6.2 General Shipping Instructions
Listed below are general instructions to follow when shipping merchandise to Home Depot.
All shipments to Home Depot facilities (stores, DC etc) must: o have an appointment date / time for delivery
appointments for pick-up of collect store orders which are cross docked through the DC are to be made at least 24 hours prior to the delivery date, 48hrs if DC 7275 (see end of this section for prepaid shipments to DC)
RRF process kicks in…..24 hours pick up upon receipt of submission all delivery appointment changes must be confirmed with the DC (cross dock,
flow though, frt consolidation, DC stock) or store (DSD) inbound department at least 2 days prior to the scheduled appointment date (note: for standing appointments, changes must be confirmed at least 1 day prior)
o show the Purchase Order number on the Bill of Lading o have a trailer seal applied once loading is completed and the trailer doors are closed.
The seal number must be recorded on the bill of lading (BOL). All POs for all merchandising departments
must have high fill rates (no short ships, no backorders)
must have high order accuracy (ship the articles ordered)
must have on time delivery performance and adherence to strict appointment scheduling and routing
UPC coding accuracy and scanability
DC & store friendly (e.g. 1 article per layer, labeling – orientation, fragility, hazardous etc (note: incompatible dangerous goods must be segregated and not palletized together on the same pallet)
are in article order quantities equivalent to the vendors case pack and / or pallet tie or layer quantity, if the order does not conform to this rule then vendor should check with the merchant / IPR to see if the order can be adjusted
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that are shipped LTL on the same day to the same destination (THD store, DC, etc.) must be on a single Bill of Lading.
Multiple carton shipments must be numbered in the format: 1 of 5, 2 of 5, etc
A packing slip must accompany all shipments
each PO shipped must be accompanied by its own individual packing slip (or ASN if DC / store is able to use it for receiving)
must be clear, legible, accurate, in English / French ( Quebec) full description of goods being delivered (UPC codes, article numbers, related
PO#, article description, quantities, TDG regulated quantities, any special temperature and handling requirements
must be presented by the carrier together with all shipping documents (B/L, TDG doc etc). Shipping documents must show any special temperature (e.g. freezable) and handling requirements (fragility, orientation, stackability, clampability, segregation from other products etc.)
All DSD, cross dock, freight consolidation shipments MUST show the store number (e.g. The Home Depot Canada, 7040) in all documents and on pallets / loose cartons (note: letter sized sheet of paper must be attached to each pallet / loose case – all pallets must be stretch wrapped - which shows THD Store #, store PO#’s and cases on the pallet, ship unit count – pallets & loose cases such as 1of 3. A separate bill of lading and TDG shipping document (where applicable) is required for each store shipment (note: vendors are responsible for identifying products with dangerous goods designations and for providing DG product information (DG indicator, shipping name, class, sub class, UN number, packing group/risk group, package contents and packaging information, special provisions, explosive limit and limited quantity Index. Vendors are also responsible for providing current versions of MSDS (material safety data sheets) for any controlled products being ordered by THD.
Expedited shipments
All priority shipment requests that require additional freight charges over and above normal service (such as air freight or expedited-ground) must be approved prior to shipping. Any expedited shipment coming from a supplier (inbound shipment to The Home Depot) will require approval from The Home Depot Transportation Department.
If the request for expedited shipment originates from a store it will require the Store Manager’s approval, prior to Transportation Department approval.
If the request for expedited shipment originates from a source other than a store (e.g. merchant, host order, etc) it will require Buyer or Merchant approval, prior to Transportation Department approval.
Any expedited shipment coming from a DC, or other HD facility (outbound shipment from The Home Depot) will require approval from the manager of the facility, prior to Transportation Department approval.
Facility Closure
If your facilities are closed for extended times other than national holidays, please notify the appropriate Product Merchant and Inventory Analyst up to 90 days before the closing to secure order placement and to guarantee delivery.
Upon Arrival at the Store or DC’s
After trailers are backed into a designated door or dropped at a DC yard the driver is to wait in a designated area and notify the receiver if leaving that area. Tractors are not to be left idling and all wheels are to be chocked if docks are not equipped with tail bar safety restraints. Trailers are not to be pulled away until directed by the receiver. All
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drivers must wear CSA (Canadian Standards Association) approved safety shoes and fluorescent vests on all THD premises.
The trailer seal must be intact upon arrival at Home Depot and Home Depot (or its security designate) must confirm it is intact. If the trailer seal is not intact, or it does not match the seal number on the bill of lading, the shipment may be refused.
Excess freight charges incurred by The Home Depot through unauthorized deviation from these routing instructions will be charged back to the supplier.
Home Depot reserves the right to refuse loads for the following reasons:
Product overages, damages, quality, poor packaging / labeling, improper pallets
Products w/o approved PO
Products belonging to other DC’s / stores
Unscheduled / late shipments
Unsafe to unload
NOTE: Home Depot will not pay any accessorial charges on prepaid shipments. Any charges such as notification, storage, re-consignment, inside delivery, sorting/ segregating, etc. will be the sole financial responsibility of the Supplier.
6.3 Basic Cross Dock Shipments
For any questions during a Vendors BXD implementation phase, contact the group email address at [email protected].
BXD orders are store-specific Purchase Orders that are consolidated into truck load / trailer load for shipment to THDCs Distribution Center (DC herein) that services designated groups of stores. This may include regular and promotional orders. The basic cross dock program provides a systemic solution that addresses the current process limitations:
Visibility to orders from the time the order is created to the time the order is delivered to the store
Vendors electronically integrated
Electronic PO: Pallet label ( UCC-128 )
The different process steps involved in BXD are as follows: 1. THDC electronically sends POs to vendor, via EDI 850, which includes data elements such
as “Expected Ship Date”, “Ship to DC” and “PO Type: Crossdock”.
Ship To DC = Store facing Manhattan WMS site
Ship To DC in the BXD PO is NOT supplier routing instruction
Home Depot Canada has 3 Cross Dock DC’s (WMS sites):
1. Vaughan Facility # 7275
8966 Huntington Road
Vaughan, ON L4H 3V1
WMS site for MB, ON, QC, NB, PEI, NS, Nfld stores
2. ST Facility Calgary – 7292
Unit 121, 5555 – 69th Ave SE
Calgary, AB T2C 4Y7
SK, AB, Cranbrook (BC) stores
3. Vancouver SDC (relo) – 7283
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7003-72nd Street
Delta, BC V4G 0A2
BC Stores except Cranbrook
2. For every THDC store, the vendor builds multi item pallet(s) for shipment to a specific THDC
store. Vendors label pallets utilizing MH10 labels to help THDC identify which store to direct
the shipment to.
3. Destination on the PO is a THDC Store but order is shipped to and cross docked through a
THDC DC.
4. The Vendor sends a Routing Request File (RRF herein) to THDC Transport to request pick-
up of shipment from Vendor’s shipping location. The pick-up date should match the pick-up
date on the EDI 850 PO (DTM*038*CCYYMMDD).
5. THDC Transport picks up cross dock shipment from Vendor’s shipping location and
transports to THDC DC. At the time of pick-up:
Vendor provides a Bill of Lading (BOL herein) that is utilized as a pallet level Proof of
Delivery (Pallet POD herein) document by THDC Transport.
Any pallet level freight claim (overage, shortage and/or damage) is measured by
THDC against the contents of the Vendor provided BOL.
Vendor simultaneously sends Advance Shipment Notification (ASN herein). The ASN
is transmitted electronically through EDI 856.
6. Upon arrival at the DC:
Automated pallet level receipt of shipment is measured against the ASN and manually
against the BOL. The automated pallet level receiving is executed utilizing THDCs
Warehouse Management System (WMS herein).
THDCs WMS generates an inbound exception report, for any discrepancies (overage,
shortage and/or damage) identified at pallet level receiving against the shipment details
in the ASN. This exception report is utilized by THDC as a supporting POD (in addition
to the BOL) for processing any pallet level freight claim identified at the time of arrival at
the DC.
7. BXD pallets are immediately cross docked through and directed for shipment to the specific
store identified on the PO.
8. The PO is not received into inventory at the DC; it is received upon arrival at the final store
destination.
9. THDC store receives the BXD pallets.
Basic Cross Dock Shipping Requirements
Vendor must submit one Master Bill of Lading per trailer. If a trailer includes shipments for multiple stores, Vendor must also submit individual Bill of Lading per store.
Vendor must submit an individual Advanced Shipment Notice (ASN herein) per Store Purchase Order.
o ASNs must be received at the THDC DC prior to physical delivery of the shipment at the THDC DC. As a best practice, Vendor must send the ASN no later than the actual pick-up of the shipment at the Vendor’s location by THDC Transport. The EDI PO relating to a BXD shipment will identify an “Expected Ship Date” and the ASN transmission date should not be later than this date.
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o If Vendor is within 2 hours transit distance from the Home Depot DC, a tolerance for ASN receipt at DC of 0 to +2 hours (from the time shipment leaves the Vendor dock) is acceptable.
Vendors must send an RRF to THDC Transport to request pick-up of shipment by THDC from Vendor’s shipping location.
The RRF must be sent to Home Depot at least 24 hours prior to the expected ship date, 48 hrs if headed to DC 7275.
If a Purchase Order can be contained on a single trailer, Vendors must not split the PO across multiple trailers. This ensures that the PO will reach stores on-time, intact and 100% complete.
If a PO cannot be contained on a single trailer, Vendors can split the PO on multiple trailers but must ensure that the split POs are covered under separate ASNs and Master BOLs per the respective trailer.
THDC Transport may provide alternate routing instructions, including shipping with a parcel carrier. Vendor must comply with these instructions.
Basic Cross Dock Shipping Vendor Communicated Promotional Orders
Vendor Communicated Promotional Orders are promotional activities that are run by THDC Merchants only for a specific short period of time in specific stores. Vendors are informed about such promotional orders directly by THDC Inventory Planning & Replenishment (IPR herein) teams.
For any such orders, all EDI requirements for Regular Orders are applicable.
Vendors must utilize the current accepted THDC format, for identifying THDC Promotional Orders with a paper label.
Label must identify the Article(s) / SKU(s) and Store. (“Article” is the term used for a “SKU” in THDC terminology).
Basic Cross Dock Liability for Damages
Concealed damage is always the responsibility of the vendor.
If a THDC store notes carton level Vendor damage upon receipt, the store will file a claim against the Vendor.
If THDCs DC notes pallet level Vendor damage upon receipt, the Vendor will be informed of the damage receipt by Home Depot Distribution Centre. Any damaged product will be sent to the respective THDC Store, who will then file a claim against the Vendor.
The following POD documents will be utilized by THDC for any pallet level freight claims:
POD at the time of arrival at the DC: Vendor provided BOL and THDCs WMS generated inbound exception report.
Each vendor must follow its own respective claims investigation processes and communicate to THDC if there is any need for Vendor specific POD documents.
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Basic Cross Dock Product Types
Dangerous and Live Goods
THDC has the discretion to allow dangerous and live goods to flow through BXD.
Vendors must adhere to any applicable legislation regarding identification and transfer of dangerous goods.
Vendors must utilize the current accepted THDC format, for identifying any dangerous goods. See example in Appendix B: Routing Request Form.
Vendors must ensure that the label is physically readable by THDC associates.
Freezable Goods
Vendors must identify freezable goods, utilizing the current accepted THDC format. See example in Appendix C: Identification Label for Dangerous and/or Freezable Goods.
Vendors must ensure that the label is physically readable by THDC associates.
6.4 Shipping Platform Standards
Shipping Platform Standards have been implemented to improve safety in Home Depot’s stores and DC’s. Suppliers are required to use pallets that meet size, design, and quality standards. Suppliers with special needs can apply for exceptions to the standards (e.g., suppliers with non-standard sized pallets that still meet safety requirements).
Suppliers must use safe shipping platforms when transporting products to Home Depot stores, distribution centers and other facilities. Suppliers are ultimately responsible for ensuring acceptable platform performance, however all domestic and import pallets must meet the following minimum standards for size and construction. Total pallet weight, including product, must not exceed 3500 lbs. When putting multiple layered items on a single pallet, separate each different product by a piece of corrugated or craft paper (SDC only). Keep like items together wherever possible. See Exhibit A.
General Palletization
The Home Depot requests that high volume (more than a few cases) suppliers to ship on pallets to facilitate material handling and storage. Some exceptions may exist for transportation efficiency. Please contact the DC if you feel that your products should be floor loaded (SDC only). Note: if products are shipped floor loaded w/o authorization from the DC / store receiving department then any extra time incurred to unload / palletize / receive the order will be charged to the vendor
Pallets to be assembled in accordance to Home Depot standards o Maximum 1” over hang on all 4 sides (where possible) o Pallets must have a flat top
Suppliers are responsible for properly securing their product(s) to pallets or understructures. Polypropylene, polyester, nylon or fiber bands are always acceptable. Steel banding is only acceptable for extremely heavy, unstable products.
Incompatible dangerous goods must be segregated and not palletized together on the same pallet (e.g. corrosives TDG class 8 - acids and alkalis)
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Clear stretch wrap and shrink-wrap are acceptable for unitization and be in accordance to Home Depot standards (3 times round the bottom of the pallet, 50% overlap up the pallet and 3 times around the top of the pallet) Note: For bagged products, corrugate top and bottom sheets plus corner protectors should be used under the stretch wrap to mitigate bag rips and tears during the handling process in THD supply chain
Pallets must be in good condition and free of all defects. Suppliers will be charged a lumping fee if the pallet configuration does not conform to these specifications
Pallets must meet the following requirements:
Pallet design: flush, partial 4-way, non-reversible
Pallets must be of all wood construction
Top and bottom boards (items 2 and 3) must be a minimum of 5/8" thick
Top boards (item 2) must have a maximum spacing of 3-1/4” for (1- 1/2 Heavy Products*)
Bottom lead deck boards (item 4), a minimum of 5-1/2” wide
Bottom deck boards (item 3), a minimum 3-1/2” wide (5-1/2” wide for Heavy Products*) o Heavy Products defined as: Roofing (shingles, rolled roofing), Sealers / coatings
(driveway, roof), concrete bagged goods, ceramic and stone tile, brick, block, pavers, edging and stone (including bagged stone), and countertops
No missing or broken top or bottom boards o Stringers (item 1) must be a minimum of 1-1/2” wide x 3-1/2” high o There must be no protruding nail heads or points
Pallet Terms Definition: 1. Stringers (3 min – 1-1/2” x 3-1/2”) 2. Top deck boards (max spacing of 3-1/4”) 3. Bottom deck boards 4. Bottom lead deck boards
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Exhibit A
Basic Cross Dock Palletization
Basic Cross Dock Palletization Requirements
1. Pallets are to be CHEP or equivalent disposable 4 way design. THDC DC Management
must approve use of skids or alternate pallet style or dimension.
2. Maximum palletized height should not exceed 94” (89" of product plus 5” of pallet) and
the weight should not exceed 3500 lbs. THDC DC Management must approve any
exceptions.
3. Product overhang on pallets must not present a safety or damage risk.
4. Max SKU's per pallet is 1 unless qty ordered is less than pallet qty. If less than pallet qty
then SKU's for the same Home Depot department can be palletized together if SKU's are
layered together and separated with paper or corrugate.
5. Multiple orders for the same store can be palletized together on the same pallet if for 1
Home Depot Department.
6. Different departments must not be mixed on the same pallet.
7. If total order qty for a store is courier size (i.e. 1-2 small cartons, less than 2 cu ft / 200 lbs)
then this can be shipped loose and / or palletized together on the same pallet with other
stores that have similar order quantities / sizes. Each carton or piece for each store that is
either palletized or shipped loose per must be labeled using the Home Depot pallet label
template. The pallet label must also be the Home Depot template and must show: all store
#'s, respective PO's for each store and quantity pieces for each store. Note: for small high
value items each piece or carton should also be sealed with security tape.
Pallet with Mixed Products
Exhibit A
Mixed pallets (SDC only):
Each article / item forms a tier on the pallet, and is separated by paper or cardboard from the adjoining article/item.
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8. Palletized products must be secured to the pallet with stretch wrap to prevent load shifting
during shipping and handling. Refer to section 2.4 Shipping Platform Standards for stretch
wrap requirements.
9. Pallets must be labeled using THD label format / template provided and taped or glued to
the outside (not inside the stretch wrap) of the shipping unit (pallet) in the top left hand
corner on the MHE handling side (e.g. 40" facing on a CHEP or equivalent disposable
pallet). If not palletized (i.e. loose pieces such as carton / bdle / roll) then The Home Depot
shipping unit label is to be glued or taped to the side. The shipping unit label must show:
Store number, PO #s, Home Depot Dept #, general product description, shipping unit # of
total for each store and vendor name. See Appendix D: Sample Pallet and Loose Piece
Label for label template. Please use (exclusively for non-Basic Cross Dock orders only)
"orange" paper stock for the pallet label so that it stands out from other labels and markings
used in the shipment and other customers orders.
10. Pallets must be labeled using THDC MH10 label format, with the label placed on top right
hand corner on the MHE handling side of a pallet (the 40” facing on a CHEP pallet). Refer to
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11. Appendix A: MH10 Label Example for the MH10 label requirements.
12. Packaging, cartons and unitization must be capable of withstanding the normal rigors of
transportation. THDC has the right to refuse any substandard packaging.
13. All bagged products are to be palletized with top and bottom corrugate sheet and corner
protection.
14. Each Store order must have a packing slip attached to 1 carton in the order that is highly
visible. Do not attach packing slip to stretch wrap. A copy can also be attached to the BOL.
15. Large regular (flat / rectangular) shaped carton or framed products must be packaged to
facilitate handling by forklift or by squeeze (clamp) lift material handling equipment.
16. Large irregular shaped and/or small qty long products such as carpet rolls and tubed
products may be shipped loose but must be reviewed and approved by THDC DC
Management.
17. Single window / shower door or other fragile / glass products in a store order must be
shipped vertically and strapped to trailer wall using logistics straps / trailer wall logistics
tracks if the items cannot be framed vertically on a pallet.
Basic Cross Dock Palletization Exceptions
1. For individual articles, if less than a pallet quantity is ordered by the Store, then articles for
the same THDC department can be palletized together as long as articles are layered
together.
2. If more than a pallet quantity is ordered by the Store, vendor must try to consolidate the
same article to a single pallet as much as possible.
If total order quantity for a Store is significantly less than a pallet quantity (for example, 2 or 3 small cartons, less than 5 cubic feet), then multiple PO’s for the same store can be placed on one pallet. NOTE THAT ORDERS FOR MULTIPLE STORES CANNOT BE PLACED ON THE SAME PALLET. Vendor should:
Bundle the cartons together (if more than 1)
Apply an MH10/UCC-128 label on the carton/bundle for each PO, representing a
“virtual pallet.”
Several virtual pallets (bundles) can be co-loaded on the same pallet, representing a
“master pallet” as long as they are for the same store.
Three purchase orders, each order bundled together as a virtual pallet, each virtual pallet with a unique MH10 label, all co-loaded on the same pallet.
All virtual pallets have an MH10 label affixed. Master pallets do not have any associated
MH10 labels.
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3. If total order quantity for a Store is 1 carton, or the order quantity is significantly less than a
pallet quantity but not conducive to bundling due to physical characteristics, then the vendor
should:
Apply an MH10 label to each carton, representing a “virtual pallet.”
Several virtual pallets (cartons) can be co-loaded on the same pallet, representing a
“master pallet” as long as they are for the same store.
Same store, three purchase orders, each carton is a virtual pallet, each virtual pallet with a unique MH10 label, all co-loaded on the same pallet.
All virtual pallets have an MH10 label affixed. Master pallets do not have any
associated MH10 labels.
4. This Palletization Exception Procedure applies when Home Depot Canada has authorized
a supplier to consolidate multiple store orders on a pallet and is absolutely required due to
shipment size. The following Procedure must be followed:
Mix store orders on pallets for Ontario, Nova Scotia, New Brunswick, PEI and Newfoundland together
Mix Quebec store orders on pallets together
Mix Manitoba store orders on pallets together
Mix store orders on pallets for Alberta, Saskatchewan and Cranbrook (BC) together
Mix BC store orders, except Cranbrook, on pallets together
All cases are to have an MH 10 Label on them. Each Pallet is to be shrink wrapped and a pressure sensitive Placard identifying the province should be placed on the outside of the Shrink Wrap
Provincial Placards should be no less than 4” by 6” and should be placed on the top right hand corner on the MHE handling side (i.e.: 40” facing on a CHEP) of a pallet.
Packaging
The Home Depot needs packaging that remains intact and safeguards the product during the shipping, material handling and storage processes in THD supply chain. The packaging must be safe, of good quality, cost effective and environmentally responsible.
Packaging must be clean and look new. The appearance of a package can influence the customers buying decision.
Forms of packaging prone to infestation will not be accepted.
Only recyclable types of packaging should be used.
It is the supplier’s responsibility to ensure that all packing materials conform to international standards and product weights conform to the corrugate test weights of the containers being used. All vendor pack cartons should conform to corrugate standards set out in the American and Canadian Freight Classification (i.e. specs to ensure the package can withstand the rigors of handling throughout the supply chain – on / off trucks, crush resistance with stacking, impact resistance to dropping etc. Each box should be stamped by the box maker confirming that it meets these requirements.
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Square or rectangular shaped cartons should be used to facilitate stackability and cube utilization in THD supply chain.
BBQ or grill packaged products must be capable of being stacked 16-20 ft and sustain a clamp pressure of 2000 lbs across the package surface (rigid angle board should be used inside the shipping carton to provide the required clamping and strength requirements). Stack height and orientation arrow symbols must be placed on the bottom right corner of all 4 sides of the carton
Fragile products should be protected by the appropriate inserts and / or padding (e.g. corrugate, bubble wrap, Styrofoam (Styrofoam peanuts and shredded paper should be avoided as filler / cushioning material)
Shrink Wrap Standards
To stretch wrap merchandise properly to the pallet follow these steps: 1. Attach wrap to pallet 2. Lead wraps half way down the pallet and cover corners. 3. Unroll wrap along the side of the pallet and pull wrap taut. Ensure all four corners of the
pallet are covered and there are 3 layers of wrap. 4. Wrap merchandise from bottom to top, overlapping the previous layer 50% until you
have reached the top. 5. Wrap the top of the pallet with 3 layers 6. Tear the film and wipe the tail against the pallet for good adherence.
Sealing Containers
Carton flaps must be sealed by means of clear, reinforced tape, glue, staples or stitching. Carton flap seals must be able to maintain carton integrity (i.e. does not open) through all of the handling processes in THD supply chain.
Crates must be sealed properly with nails or staples.
Plastic bags must be sealed to retain product.
Plastic containers sealed by means of lug or friction closures require a second form of closure, such as shrink-wrap or tape for the prevention of pilferage and to ensure proper containment.
Age Sensitive Goods
The packaging that has age sensitive goods in it must be clearly marked as age sensitive, with the date clearly marked on the product packaging.
The packaging must clearly indicate whether the date is a sell by date, the date the product was packaged, product expiry date.
Any product that has less than 70% of its life expectancy left, based on the expiry date information, will not be received by The Home Depot.
6.5 Shipping Label
Basic Cross Dock Label Format and Information
The Home Depot Canada requires all shipping containers (e.g. stretch wrapped pallets, loose cartons) be labeled with an industry standard MH10 / GS1 shipping label, containing the
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UCC/EAN 128 Serialized Shipping Container Code. UCC-128 labels are a requirement for all pallets and cartons shipped by LTL or TL to a Home Depot DC.
As well, the electronic ASN must contain the associated barcode. Refer to the section Electronic Commerce Overview for specific instructions regarding ASN requirements. Loose cartons and floor loaded product must also have an individual UCC128 label. A shipping container can be any container containing product, including a pallet, cage, box, carton, barrel or roll.
The THDC BXD pallet level label is a 4”x6” MH10 label with a UCC-128 barcode representing an individual PO, as shown in
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Appendix A: MH10 Label Example with:
1 PO on a single pallet, represented by 1 label
1 PO on multiple pallets, multiple pallet labels ( i.e. pallet 1 of X )
The MH10 label must contain the following information:
From: Vendor Name, Vendor Address (Address, City, Province, Postal Code, and Country).
To: Home Depot DC (DC Name), Address (Address, City, Province, Postal Code, and Country).
Carrier Information: Carrier Name, PRO Number, BOL Number
Home Depot Store Information: Store Number.
PO Number.
PO Type.
Pallet Number (i.e.: Pallet 1 of 3, 2 of 3, etc.). This number can be handwritten as it is not sent via 856 ASN.
UCC-128 barcode and number, per GS1 standards (sometimes referred to as an SSCC18 barcode).
The UCC-128 barcode must represent all articles on the pallet.
Pro# and carton count are optional on label (Pro # would still be transmitted in the 856 ASN)
Consolidation Shipments
For all collect store orders which are cross docked / freight consolidated through a Home Depot DC and / or it’s designated service provider’s DC each shipping unit (pallets and loose cartons) must have a letter sized sheet of paper attached (under the stretch wrap) to each pallet / loose case – all pallets must be stretch wrapped - which shows THD Store #, store PO#’s and cases on the pallet, ship unit count – pallets & loose cases such as 1 of 3.
Consolidation Label Format
Consolidation Pallet Label (See Appendix D: Sample Pallet and Loose Piece Label)
8” x 11”
Store Number Font: 72
Purchase Order Font Size: 36
Paper requirements: Orange
(Consolidation pallet label not required on Basic Cross Dock pallets once vendor have passed the QA process)
Barcode Specifications
The barcode has a minimum element width of 20 mils. The background should highly contrast with the barcode, preferably a white label with black ink. The technical specifications are as follows:
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Code 128 bar code symbology
The bar code’s height to length ratio equals 15% of the length or 0.50-inch (1.3-cm), whichever is greater.
The X-axis may range from 10 mils (.025-cm.) to 40 mils (.1-cm.).
When the X-axis is between 10 and 16 mils, the Y-axis equals 0.50 inches.
When the X-axis is between 17 and 40 mils, the Y-axis equals 1.25 inches.
For use with most hand-held scanners and in-line scanners, print the bar code at 12 points font size and an X-axis of 10 mils (0.10-in.).
Label Placement-Pallets
Place the UCC-128 label close to the top of the pallet; top right hand corner on the MHE handling side (i.e.: 40” facing on a CHEP) of a pallet
Pallets to be labeled on both sides
Labels placed on top of the pallets provide no value, and are therefore not acceptable.
The label should face the rear of the trailer.
Label must be applied on top of stretch wrap, to avoid any readability issues.
o Placing the label under stretch wrap may result in making the label non-readable to the human eye in the case of excessive stretch wrapping.
o Stretch wrap on top of label may make it reflective and may not be scannable.
Label must not be applied over or near any vendor internal labels, to avoid scanning errors.
Label Placement-Cartons/ Bundles
Place the UCC-128 label on the long side of the carton, not top or bottom and unobstructed by packing tape, shrink-wrap or any other label.
Carton Labeling / Special handling icons
All cartons must be marked or labeled according to applicable regulations (e.g. Consumer Chemicals and Containers Regulation, Workplace Hazardous Materials Information System, Transportation of Dangerous Goods etc). Note: Regulated consumer commodities are to be marked “Consumer Commodity” on the shipping carton. Regulated Dangerous Goods must have specific TDG markings (DG labels, PIN, TDG shipping name, flashpoint if flammable etc). Case UPC, contents description / qty / weight / volume, carton # of total for each SKU, country of origin If special handling or storing methods are required for products then the carton and pallet should be labeled or marked with the necessary symbol. Some examples are shown below:
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6.6 Shipping Documents Required
Bill of Lading (BOL)
In all instances, the shipper must provide a copy of the BOL to the driver, carrier, and THD destination. LTL shipments necessitate physically attaching an additional copy of the BOL to the shipment. Suppliers that load drop trailers/containers are responsible for ensuring that the BOL accurately reflects all required BOL information, including “Shipper Load and Count”. The shipper is responsible for all fines, penalties, and/or fees associated with an inaccurate BOL or any other shipping associated regulatory violation.
THD and its core carriers require an EDI VICS (Voluntary Inter-industry Commerce Standards) standard BOL. For general information on the EDI Bill of Lading (211) standards, refer to the Uniform Code Council web site at www.uc-council.org. VICS also has a web site at www.vics.org.
Generally Bill of Ladings has or contains the following: Unique, non-repeating numeric identifier
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Relevant purchase orders numbers Applicable store and distribution facility numbers Shipment origin and destination address Carrier name Number of handling units tendered to the carrier Commodity description with weight Freight terms Trailer Seal number
If products and / or quantity being shipped is not exempt from TDG regulations then dangerous goods information needs to be on the shipping document (e.g. proper TDG shipping name, primary class, every subsidiary class, product identifier number, packing group, 24 hr emergency number, indication if placards are required, total weight and number of regulated consumer commodities and dangerous goods respectively).
This information is duplicated on the Ship Notice (ASN). Certain transportation modes require additional BOL elements. In addition to the standard elements, full truckload Bill Of Lading list carrier, trailer number and seal number.
All purchase orders for all merchandising departments that are shipped on the same day to the same destination (THD store or DC) must be on a single Bill of Lading. Subtotal the shipping units by P.O. and provide a grand total. Ship one Bill of Lading per store when shipping direct to the store.
6.7 Loading Instructions
On collect shipments it is expected that the cube of the trailer will be properly utilized when loaded by the vendor. There are various patterns that can be used to minimize load shift and optimize cube. If unsure of the pattern to use contact the DC inbound department for direction. Any unnecessary transport and DC handling costs associated with bad loading will be assessed against the vendor involved.
Look over the load and determine how many double or triple stacks are needed for the load to fit.
Note* If you are loading a trailer that requires no stacking of pallets ensure that you leave enough space between the pallets to accommodate over hang and shifting of the merchandise
Ensure that heavy pallets are used for the base pallet and lighter pallets are stacked on top of heavier pallets (i.e. Tile pallets on the bottom, lighting pallet on the top)
Ensure that when double stacking that the top pallet’s lead deck board (see Figure #3) is resting on the bottom pallet. This will eliminate the top pallet from leaning and reduce the potential for the pallet to shift and fall off the bottom pallet and cause damage.
Load the pallets into the trailer, placing them to either side of the trailer as close to the trailer walls to allow for overhang of the pallet next to it.
*Note: Avoid pin wheeling the pallets inside the trailer if they are not on 4 way pallets. This will help maximize the efficiency of the stores when they are off loading the trailer.
Ensure that the double stack is “blocked in” by the pallet in front of it (The height of the pallet + the merchandise in front should be at least the height to cover the just the pallet itself, to ensure that the top pallet will not shift and cause damage.
Ensure when loading merchandise that is longer then the pallet that you leave space between the pallets you are loading and the one behind so that the merchandise is not pushed into the other pallet causing damage.
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Ensure that bundles/loose pieces are loaded in such a manner as to avoid damage (e.g. on top of another pallet or on the floor.
6.8 Collect Suppliers: The Home Depot Pick-up
Home Depot shall make transportation arrangements for the pick-up, transport and delivery (“Delivery”, or “Deliveries”)) of products from the Vendor at the premises designated by the Vendor in accordance with the terms and conditions the SBA. Home Depot may select and sub-contract the services of for-hire motor carriers (the “Motor Carriers”) for Deliveries from the premises agreed upon by the parties to destinations marked on relevant bills of lading. However, it is agreed that The Home Depot’s may, at its sole discretion, use its own transport fleet for any or all of the Deliveries.
MOTOR CARRIERS
All Motor Carriers retained by The Home Depot in relation hereto shall be duly licensed and insured to provide for-hire motor carrier transportation services in accordance with all applicable laws. The Home Depot shall provide the Vendor with a copy of any operating license or insurance certificate upon written request.
MOTOR CARRIER EQUIPMENT
Home Depot shall ensure that the Motor Carriers provide at all times equipment in compliance with the following standards: All trailers must be standard and be free of odors, damage, holes, leaks, nails, and debris. All equipment must meet or exceed all applicable regulatory requirements in Canada and, for US points of origin (“Cross-Border Shipments”), the United States. All equipment must be of sufficient size to permit the safe loading of a full order.
The Vendor reserves itself the right to reject any trailer if it is unable to ship a full order on one pick-up due to trailer condition, size or contents.
PICK-UP APPOINTMENT
The Vendor and Home Depot shall schedule pick-up appointments for all Deliveries 24 hours in advance of the expected pick-up date for domestic shipments and 48 hours in advance for loads shipping from the U.S. Each Purchase Order shall contain a specific pick-up appointment date.
All vendors who are enabled on the Home Depot Transport Management System (TMS) must submit a Ready To Ship (RTS) by 11:00am local time two business days prior to the requested pick-up date. It is expected the vendor will ship purchase orders in accordance to the Early Ship Date that is transmitted on the PO. Compliance to the Early Ship Date will be measured. The vendor is required to provide accurate aggregate cube and weights on the RTS. Vendors that provide inaccurate cube or weight data that result in excess costs or missed pick-ups may be held responsible for those costs incurred by Home Depot.
ON TIME PICK-UP PERFORMANCE
FOR LIVE LOADING: The Home Depot shall instruct its Motor Carriers to pick-up orders on the scheduled appointment date in order to achieve and maintain efficient loading schedules. The on time pick-up performance shall be recorded as the arrival of the motor carrier at the time of arrival at the premises of the Vendor. The Vendor and Home Depot agree to develop a mutually beneficial pick-up appointment time schedule.
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The Vendor shall provide Home Depot feedback on CPU performance for assistance in maintaining timely pick-up performance.
FOR DROP TRAILERS: The Home Depot shall instruct its Motor Carriers to drop empty trailers at the premises of the Vendor within in a reasonable time prior to the agreed scheduled loading time in order to achieve and maintain efficient drop lot operations and loading schedules. Damage to equipment while in possession of the vendor or their agents will be the responsibility of the vendor. The on time pick-up performance shall be reported as sufficient trailer availability to meet order demand prior to the scheduled loading time and recorded at the security check-in point at the premises of the Vendor. The Vendor and Home Depot agree to develop a mutually beneficial pick-up appointment time schedule. The Vendor shall provide Home Depot feedback on CPU performance for assistance in maintaining timely pick-up performance.
Vendor shall be responsible for any detention-waiting charges arising from any delay caused by the Vendor or third parties authorized by the Vendor to access the premises of the Vendor including but not limited to traffic congestion at the premises of the Vendor, appointment errors and shipment errors. Under such aforementioned circumstances, the Vendor shall reimburse The Home Depot for any missed pick-ups or detention-waiting charges levied by any Motor Carrier, or where The Home Depot utilizes its own transport fleet, such reasonable detention-waiting charges as The Home Depot generally imposes.
If The Home Depot’s Motor Carrier is late, the Vendor shall use its best efforts to proceed with the loading of goods as soon as possible or, to reschedule an appointment within a reasonable time frame.
The Vendor shall confirm arrival and departure times-dates of each The Home Depot Motor Carrier entering or leaving its premises by applying a time stamp on the Motor Carrier’s transportation documents.
Upon notification of a missed appointment, The Home Depot shall have a period of forty-eight hours to reschedule the appointment pending which the Vendor shall not ship any Order direct to The Home Depot via a carrier selected by the Vendor with-out written consent from The Home Depot.
FREIGHT CLAIMS
Any loss, shortage and or damage to goods collected must be communicated to the Vendor and confirmed within 60 days of receipt from the Vendor. Drivers are to verify the pallet count and apparent good condition of the shipments upon pick-up for Less than Truckload (LTL) pickups. In the case of Full Loads will be sealed and the count and condition will be the responsibility of the vendor. In any event at no time is Home Depot responsible for the count of items on or within a pallet until count is verified by detail receipt at the final HDC destination of the shipment.
All transportation costs, storage and detention fees or other expenses incurred by The Home Depot because of the vendor's non-compliance with the terms and conditions of the SBA shall be charged to the Vendor.
PALLETS
The Home Depot has implemented shipping platform standards to improve safety in the supply chain. Suppliers are required to use pallets that meet size, design, and quality standards. As long as non-standard pallets meet safety requirements, suppliers with special needs can apply for exceptions to the standards; any variance in the pallet construction criteria is subject to the advance written approval of The Home Depot MVP
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or Global Product Manager. In all cases, however, total pallet and product weight must not exceed 3,500 lbs for “Heavy Duty” pallets and 2800 lbs for “Regular Duty” pallets.
DRIVER PICK-UP
Upon arrival at the Vendor location, The Home Depot drivers will be required to present a shipment number for the Order(s). All drivers are required to comply with the Vendor’s security procedures, while on Vendor’s property.
The vendor will ensure all applicable health and safety regulations are followed and adhered to in the locations frequented by Home Depot employees or their agents.
The Vendor shall not release any shipment until it has properly verified the identity of the truck driver and the proper transportation documents authorizing the pick-up of goods. In particular, the Vendor shall request and review the following: (a) Purchase order(s); (b) Shipment Number; (c) Bill of lading; (d) Truck driver’s license and identification; and (e) verification of equipment number
All inbound full truckload shipments are required to have a trailer seal and the trailer seal number listed on inbound paperwork. Unless required to do so by a governmental authority, The Home Depot will require that the Motor Carrier guarantees it will not break the seal from origin to destination without the written consent of The Home Depot. In the event the seal is broken by government inspectors during the course of delivery, the search should be noted on the Bill of Lading and, to the extent possible, signed by the government authority conducting the inspection. The trailer will be resealed following the inspection and the new seal number noted on the Bill of Lading.
EQUIPMENT LOADING
The Vendor is responsible for ensuring that trailers/containers used to transport The Home Depot merchandise are loaded in accordance with applicable Canadian Ministry of Transport and/or U.S. Department of Transportation, provincial, state, and local government’s rules and regulations pertaining to safety, load limitations and load security.
The vendor must utilize generally acceptable loading, bracing and securing techniques appropriate for the transport equipment and products being transported to ensure the safety of persons and security of the items being transported. The vendor must load Equipment to optimally use the capacity of the equipment in respect to weight and cube. If the vendor persistently causes excess expense through waste of capacity or rework required as a result of inappropriate loading the Home Depot may recover those excess costs from the vendor.
6.9 Pre-Paid Suppliers: Receiving by Appointment at DC’s
All inbound shipments for our distribution facilities must have an appointment made with The Home Depot DC’s, providing PO, number of pieces, weight and cube. The appointment must be made at least 5 working days in advance of the specified due date shown. Some suppliers will be assigned standing appointments, as required.
See Appendix E for DC contact information.
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Shipping Guide – Bulk
7.1 Introduction
This section has been developed for domestic, North American Suppliers who ship to Home Depot Canada bulk DC, its subsidiaries and/or affiliates within Canada. The bulk DC handles building materials such as lumber, sidings, pipes, wood panel, fencing, doors, etc plus long items such as ladders etc. All Sections of this guide apply to all Suppliers regardless of their FOB terms.
All transportation costs, detention charges, storage fees or other expenses incurred by The Home Depot because of the Supplier's non-compliance with the terms and conditions of the Supplier Buying Agreement shall be charged to the Supplier.
7.2 General Shipping Instructions
The general instructions to follow are the same as the shipping instructions in the section Shipping Guide – General Merchandise .
7.3 Guidelines for loading flatbed trailers
Improperly secured cargo causes damage and injury every day across Canada. Sometimes proper cargo securement is required by law. Laws regulate how freight must be secured. To be able to comply, you must understand the cargo securement regulations.
There’s another set of laws of which you also need to be aware. These are the laws of physics. To do a good job of cargo securement, you must know about the physical principles and forces that are present during cargo transport.
The injuries are fatal. What caused every incident isn’t always precisely known however investigations consistently show that almost every case of lost or shifting cargo is preventable. Everyone involved in transporting cargo should be aware of the risks involved and comply with the applicable safety regulations. Taking responsible and deliberate action to secure cargo properly avoids exposing anyone to unnecessary and avoidable risk.
When it comes to cargo securement, the ultimate responsibility often lies with the driver. Carriers and shippers also have responsibilities. Carriers must ensure that all of their personnel who handle cargo do it safely and according to regulations.
Shippers have a critical role also. Shippers must make sure their freight is properly bound, wrapped or banded, packed in boxes, cartons or containers, using methods that are strong enough to secure the cargo and meet the rules.
Shippers are also often involved directly in loading and securing cargo. They must ensure that they and their employees understand the new requirements and exercise safe loading procedures at all times.
Basic Principles
Simply stated, proper cargo securement means doing what it takes to ensure that the cargo stays put. To do this, it helps to understand the forces that might cause cargo to shift, slide or fall off. Understanding these forces will also help explain the reasoning behind the regulations.
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In the past, cargo securement regulations have generally required only that drivers and carriers prevent cargo from becoming lost from a vehicle. These regulations did not provide detailed requirements on how to secure the cargo.
Canada has cooperated in adopting more uniform cargo securement regulations. These were developed through joint efforts of the regulatory agencies across North America. The new requirements are performance-based. They include minimum strengths for the methods, devices and vehicle structures used to secure the cargo. They also include specific requirements for different cargo commodities.
Forces That Cause Cargo To Shift
In transport, cargo is subject to forces that can cause it to move from where it was placed on a vehicle. If it moves far enough, the cargo can fall off the vehicle. If the cargo is heavy enough and moves far enough, the vehicle can become unstable and even roll over. Drivers often report that “load shift” was a factor in vehicle rollover accidents. Keep in mind however that most rollover accidents occur as a result of excessive speed and not shifting cargo. To operate your vehicle safely, you must understand these forces and how they affect both the vehicle and the cargo itself.
The forces affecting cargo result from changes in vehicle speed and direction. These changes occur during breaking, cornering and acceleration. To understand these forces you must know the basic principles of physics. One principle is inertia. An aspect of inertia is that something in motion tends to stay in motion. When a vehicle stops, any cargo it is carrying has a tendency to continue traveling at the same speed and in the same direction. In other words, your vehicle may come to a stop, but if the cargo isn’t secured, it may keep on going.
The strength of the force that makes articles slide forward or sideways depends on the weight of the article. A heavy article needs much more force to hold it in place during a stop under heavy braking than a much lighter article will require.
The forces of a heavy article and a light article are different from each other yet they are actuall directly related to the weight of each article. An article that is twice as heavy as another will develop exactly twice as much force during the braking or turning maneuver. Therfore, the methods used to hold cargo in place must be based on the cargo’s weight.
Securing Dresses Lumber & Similar Building Materials
Products and materials in this category can include: rough and dressed softwood, and hardwood lumber, as well as structural panel products made of wood and composite materials such as plywood, particle board, fiberboard, MDF, oriented strand board (OSB), “masonite” and “door-core”. These products may have a raw or bare surface or they may be treated, finished or coated. Gypsum board or “drywall” is also included in this commodity.
Following the securing requirements in this section will result in compliance with the regulations when these products are unitized into bundles. When products you are hauling are not bundled or unitized you may secure them in accordance with the general provisions, but the load will be more difficult to secure. With the exception of gypsum board, it is recommended that the products listed in this section are transported only after being properly bundled.
Strapping is commonly used to tie individual articles together to form a bundle. The bundles are normally rectangular with various lengths, widths and weights. These bundles must be unitized so they will stay intact for this cargo to be transported safely.
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Products that are transported inside a crate rather than being bundled can also be secured according to the general requirements.
Other products may also be secured using the requirements of this section. These could include manufactured assemblies of wood or lumber products that can be bundled into discreet units. If these units have weight, rigidity and other physical characteristics comparable to the products described above, they can be secured using the same methods.
Products not included in this category are;
• Manufactured assemblies of wood or lumber products that cannot be bundled into rectangular shapes.
• Products that could crush or collapse when strapped to a vehicle.
• Bundles with angled, sloped or other non-rectangualr surfaces.
Shingles and metal products are not included in this category. These products may be transported on the same vehicle used for lumber and similar products and secured according to the general provisions.
Transport Vehicles
Lumber and similar products are usually transported on open-sided flatbed vehicles. Some of these products may also be transported inside cargo vans or containers.
When you transport these products inside a vehicle, secure the cargo either according to the general provisions or to this commodity specific section. Most cargo vans or containers do not have facilities for tying down loads of lumber or wood-based panel products. Consider the strength of the vehicle structure and body before deciding to transport these products inside a van or container. The integrity of the bundles is also a greater concern when you transport bundles inside a van or container where you won’t be able to use tiedowns.
Products that have very low friction between their layers such as melamine must be properly unitized and blocked to be transported safely inside a cargo van or container. Blocking that spreads out the force of the load at the front is very important. Point loading from individual pieces within a bundle can cause them to penetrate through the vehicle body. Once a small failure like this occurs, a much larger failure will develop very quickly.
Loading
Make sure your vehicle’s anchor points, tie downs and other securing devices are in good working order before you begin loading.
You need to know the weight carrying capability of your vehicle and the weight of your load. This will allow you to plan how to position the load on your vehicle.
You must decide where to place bundles to properly distribute the weight and to be able to get the maximum possible payload. Loads will consist of a quantity of bundles that will be transported in one, two or more layers.
As you plan your loading procedure you need to think about how you will be securing the load. Depending on the number of layers involved, you may need to use tie down straps between the layers. This means you need to place the bundles on each side so that their tops are the same height.
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If your vehicle has a front end structure you need to decide if you will be using it as part of the securement and then you will need to place the bundles against it. You must also decide if you’re going to place bundles against other bundles in the load to block against forward movement.
Securing
The cargo securement regulations use terms such as “immobilize”, “contain” and “restrain” to define how cargo might be secured on or within a vehicle. These three terms really describe different ways of making cargo secure.
Immobilize means “not moving” or “incapable of being moved”. Cargo that’s immobile would be the most secure. Immobilized cargo doesn’t move at all. Unfortunately, testing has shown that it is almost impossible to immobilize cargo so that absolutely no movement occurs. Any efforts to immobilize cargo will have imperfect results. There will almost always be spaces between cargo and restraining devices. Slight shifting will always occur.
The most common way to secure cargo is to restrain it. Restraining cargo means to limit or hold back any movement. Cargo that is restrained normally has no area free of movement. Movement in any direction is held back in some way. Restrained cargo will still move to a certain extent, so it’s not the same as immobilizing it. Even though it may be able to move, cargo is secure when it is restrained in a way that it can’t be lost from a vehicle. Cargo is also considered secure if it isn’t able to shift such that it impairs vehicle stability.
Another way to secure cargo is to contain it. Containing cargo may involve packaging, vehicle structures and body panels, other cargo and shipping containers of various types. Cargo that is contained is generally able to move freely within a space or zone, but it can’t leave that space. Contained cargo could move around inside the container therefore the container itself must be able to withstand the cargo’s movement.
Lumber and similar products are almost always secured using indirect tie downs. The correct number and location of these tie downs will depend on the following factors;
• Whether or not stakes or other sideways restraint is used in addition to tie downs.
• The size and weight of the bundles.
• Whether or not a bundle is blocked against forward movement.
There are several basic rules that apply to determining the tie down requirements. The rules are different when you only use tie downs to secure the load than when you use stakes, blocking or high friction devices to prevent the load from moving sideways.
The minimum tie down requirement for loads secured only with tie downs depends on the number of layers in the load.
Single Layers
When a load consists of a single layer of bundles secured with tie downs over the bundles, the following tie downs are required;
• A bundle shorter than 5 ft. requires only 1 tie down per bundle.
• A bundle 5 to 10 ft. long that weighs 1,100 lbs. or less requires 1 tie down per bundle.
• A bundle 5 to 10 ft. long that weighs more than 1,100 lbs. can be secured with 1 tie down when it’s blocked and requires at least 2 tie downs when it’s not blocked.
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• A bundle longer than 10 ft. requires only 1 tie down in the first 10 ft. when it’s blocked, and requires 2 tie downs in the first 10 ft. when it’s not blocked.
• A bundle that is longer than 10 ft. also requires 1 additional tie down for every additional 10 ft., or part of 10 ft. of length.
• The minimum number of tie downs for articles longer than 10 ft. is one in the first 10 ft. plus one additional tie down for every 10 ft. of length or any portion of 10 ft.
Double Layer Stacks
When a load consists of two layers of bundles secured with tie downs, you can secure the load with the following tie downs over the top layer of bundles;
• A bundle shorter than 5 ft. requires only 1 tie down per bundle.
• A bundle 5 to 10 ft. long requires only 1 tie down when it is blocked, and requires 2 tie downs when it is not blocked.
• A bundle that is longer than 10 ft. requires only 1 tie down in the first 10 ft. when it is blocked, and requires 2 tie downs in the first 10 ft. when it is not blocked.
• A bundle that is longer than 10 ft. also requires 1 additional tie down for every additional 10 ft. of length.
You can also use additional tie downs over the bottom layer for added security.
Stacks with Three or More Bundles
When the load consists of three or more layers of bundles secured with tie downs, you must secure the load with tie downs over the top layer of bundles and tie down straps between the layers. The quantity of straps needed over the top and through the middle of the load is the same and is based on the length of each bundle.
• The straps between the layers must be over the second layer when there are 3 layers, and over a layer that is no more than 6 ft. above the deck when there are more than 3 layers.
• Straps between the layers always go over the middle layer when there are 3 layers in a stack and go over a layer below 6 ft. when there are more than 3 layers.
• A bundle shorter than 5 ft. only requires 1 tie down over the top and 1 tie down over the middle layer.
• A bundle 5 to 10 ft. long requires only 1 tie down when it is blocked, and requires 2 tie downs when it is not blocked.
• A bundle that is longer than 10 ft. requires only 1 tie down in the first 10 ft. when it is blocked, and requires 2 tie downs in the first 10 ft. when it is not blocked.
• A bundle that is longer than 10 ft. also requires 1 additional tie down for every additional 10 ft., or part of 10 ft. of length.
Stacks Restrained Against Side Movement
Loads that are restrained sideways with stakes, blocking or high friction devices can be secured with tie downs over the top layer of bundles only, no matter how many layers there are.
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The number of tie downs required for each stack of bundles that is restrained to prevent sideways movement is the same as it would be if each stack was a single bundle.
Spacers Between Layers
When you use blocks or spacers between the layers of bundles in the load, there are some rules you have to follow.
• The spacers must be long enough to provide support to all of the pieces in the bottom row of the bundle resting on the spacer.
• Rectangular spacers must be placed so that the widest surface is in contact with the bundle. Square spacers can also be used.
• Spacers must be made of a solid material such as wood or material that has properties similar to wood, or made of layers of material that are joined together giving it properties similar to a solid piece of wood.
The Flatbed Trailer - Terminology
Strapping and Tarping
Strapping
Strapping is the primary method of securing loads on flatbeds.
When something is “flat” on the top, strapping tends to place the most pressure on the corners. Strapping too tightly on a bundle of PCV will compress (or even crack) the pipes in the bundle.
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Belly Banding
Belly banding is a technique used when items on the top of a stack can be damaged by strapping. For example, a unit of PCV that’s on top of a unit of plywood can’t be strapped securely by strapping down on the top of the PVC alone: By the time the strapping is tight enough to secure both, the PVC is crushed.
By belly banding, straps first secure the wood to keep it secure, then the PVC is strapped tight enough to keep it secure, but not so tight that it’s damaged.
Straps and horizontal movement
Because of strapping, vertical movement is not much of a problem in flatbed loads. It is horizontal movement that’s the problem. Units should generally be positioned against one another when loaded to prevent the horizontal movement.
Tarping
Tarps should be used to protect products from rain and snow.
Stacking
You generally will not stack something heavy on top of something light, unless the bottom item is exceptionally strong. It’s also important to consider the material itself. For example, vinyl products
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are prone to cracking (particularly worse in cold weather), so nothing very heavy should be stacked on top. Also, place small items on top of large, unless the small item is too heavy. For example, units of foam insulation are large and light, and would be suitable over shingles.
7.4 Distributing weight
A load with proper distribution has its weight distributed through the middle of the trailer, keeping the front and back ends lighter than the rest. There are two reasons for this
• Overall stability of the load
• Uniform weight at the axles
Load Stability
A tractor-trailer behaves something like a see-saw. When weight is placed at the ends, it makes the trailer more difficult to maneuver. In the illustration shown here, you can see how hard it would be to tilt this see-saw.
Placing the weight in the “true” middle of the trailer as in the illustration below would make the trailer easy to maneuver; however, it could cause excess stress on the chassis.
A far better method of distribution is to distribute the weight “throughout the middle” of the trailer, as in one of these illustrations below.
You can see that when we talk about the middle of the trailer, it usually doesn’t mean the exact middle!
When roads are icy, you should put a little more weight at the nose of the trailer. This results in more weight on the rear tires of the tractor, and better friction on the road.
Correct
Correct
WRONG APPROACH
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Maximum Axle Weight
Other reasons why weight distribution is important are the federal and provincial regulatory requirements. Because weights are taken at each axle or each tandem*, it’s important that weight be distributed so that any one axle or tandem does not take on too much weight. The illustration below shows the federal legal maximums, in pounds, for a three-axle tractor with a spread-axle trailer. (The front axle, not shown, carries 12,000 pounds.)
For trailers that have rear tandem axles, the maximum is 34,000 for the pair. Even if the entire truck is under maximum gross weight, if any one axle or tandem weighs over the maximum allowed, the truck may be required to return to the facility and be unloaded and reloaded. Keeping the weight properly distributed ensures weight is evenly distributed among the axles.
Side-to-Side Distribution
Similarly to front-to-back weight distribution, you need to maintain side-to-side distribution as well. For example, six units of shingles at 2000 lbs. each across from two units of 2-inch PVC at 3000 lb.total will cause a very uneven load.
While slabs of shingles across from PCV is easy to spot (as it’s obvious the shingles are far heavier), some differences in weight may be harder to pick out. For example, a unit of OSB and a unit of pine board may look quite similar, but the OSB is far heavier.
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Two units of each, stacked on either side of a flatbed, would put 6530 pounds across from 3490 . . . a difference of more than 3000 pounds.
Bulk product
Lumber bundles must have a minimum of 2 banding and 2 stringers, no smaller than 2”x3”, banded to the bundle.
Item identification must be clearly visible on each bundle before it is taken off the flatbed.
All bundles, packs or palettes must maintain the standard pack size according to the VBA. Any changes must be notified to the Product Merchant 90 days prior to change.
Other bulk merchandise must have proper strapping, banding, heavy plastic cover or strong crating to prevent any loose parts, to be able to withstand heavy strapping as well as high speed wind on a flatbed trailer. If plastic cover is used, it needs to be secured under the banding to prevent tearing.
7.5 Shipping Documents Required
For Shipping Documents required, refer to the section Shipping Guide – General Merchandise.
For complete ASN requirements and EDI transmission guidelines refer to Electronic Commerce Overview.
7.6 Shipping Label
For Shipping label requirements, refer to the section Shipping Guide – General Merchandise.
Label Placement
Place the UCC-128 label directly on the article, or on a tag attached to the article. The label should face the rear of the trailer or be easily visible from the side of the flatbed.
7.7 Collect Suppliers: The Home Depot Pick-up
The general instructions to follow are the same as the Home Depot Pick-up instructions in the section Shipping Guide – General Merchandise
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7.8 Pre-Paid Suppliers: Receiving by Appointment at DC’s
All inbound shipments for our distribution facilities must have an appointment made with The Home Depot DC’s, providing PO, number of pieces, weight and cube. The appointment must be made at least 5 working days in advance of the specified due date shown. Some suppliers will be assigned standing appointments, as required.
See Appendix E for DC contact information.
Purchase Orders
8.1 Regular Stock Orders
Once you are set up as a Supplier and your articles are set up as active, you are ready to receive orders. Generally your first order will be a “push” order from the Toronto Store Support Center (SSC) to the field to load the stores. After that the store will replenish in 1 of 2 ways described below.
Order Types A purchase order is required to ship product to The Home Depot Canada. Within the Home Depot organization, there are two types of purchase orders that are generated. This section will introduce you to them and provide insights into when and why each order type is used.
Automated Replenishment – Used for vast majority of orders. The Home Depot of Canada uses SAP Forecast & Replenishment (F&R) system. The system uses demand forecast (based on sales history) to calculate orders needed to maintain a desired inventory position for each article in each site (store or DC). The key input parameters within the F&R system are: procurement cycle (i.e. order frequency), lead time and minimum order quantities. For new items, a sales history is copied from a “sister” article which displays similar behavior.
Manual Replenishment – Used for new product introductions, seasonal set-ups, customer requests, special orders, one-time buys, off-shelf events and other exceptions where automated replenishment may be deemed unsuitable. Since these types of orders require manual inputs they may not always follow parameters maintained in SAP (e.g. lead time, order minimum, etc.). Any deviation from terms outlined in the Supplier Buying Agreement (SBA) should be explicitly communicated and agreed upon by both, supplier and The Home Depot.
Order Origins Depending on the vendor set-up, purchase orders may be generated by store associates or by the Inventory Planning and Replenishment (IPR) team in the Toronto SSC.
Purchase Order Transmission Generally, all auto-generated orders (originating both, at stores and at SSC) transmit daily via EDI. Subsequent PO revisions, if any, are auto-faxed to a number maintained in the vendor master in SAP.
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Vendors who are non-EDI compliant will receive both, the initial and revised orders by fax. Select consignment vendors supplying Bulk Distribution Centers (BDCs) receive POs via e-mail.
Store purchase orders can be placed by telephone, fax, auto-fax, mail, and electronically. When taking orders or changing orders via the telephone, suppliers are required to get a follow-up hard copy of the purchase order with a valid purchase order number (prior to shipping).
Lack of verification of the change(s) in the order could result in inaccurate and untimely payments. For telephone orders, suppliers should also receive part numbers and/or article numbers.
Purchase Order Number Structure
All Home Depot purchase orders are a unique 10 digit number, starting with either 6 or 3 (depending of the flow channel).
3-series POs are reserved for Basic Cross-Dock and Cartonization channels.
6-series POs are used for all other PO types (Prepaid and Collect).
Purchase Order Destinations and Dates
Each Home Depot PO includes a final destination site – either a store or a distribution center.
There are several dates worth noting:
Document Date - a date when PO was created
Delivery Date (aka Due Date) - a date when the PO is expected to be received at its final destination (e.g. at a store)
Ship Date (aka Early Ship Date) – a date when supplier is expected to ship the order. Note: this date is currently available only for 3-series PO types (shown as segment DTM*038*CCYYMMDD on EDI 850 PO)
8.2 Back-order policy (Domestic)
The Home Depot does not accept back orders on any replenishment stock orders. Auto-generated orders will automatically close if merchandise is not delivered within 14 days of the due date. Supplier inventory levels should not delay P.O. shipment. If a supplier has insufficient inventory to fulfill an order, process the order with the available quantity on hand. For any inventory not shipped with the original purchase order, suppliers should secure a new purchase order, if necessary. Suppliers are requested to inform IPR and merchant of any supply constraints so adjustments to replenishment can be made as needed.
This policy does not apply to special orders or new store orders.
8.3 Substitutions and Unapproved Products
Written Merchant approval is necessary for all substitute products shipped to The Home Depot. The Home Depot will not pay for shipment of substituted or unapproved products. Supplier is responsible for any expenses incurred by The Home Depot that result from the receipt, handling, and return of such product. The supplier must secure approval before enacting changes to previously approved product.
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8.4 Vendor Turn Time (VTT) and Transit Time
Sufficient Inventory levels are necessary to meet customer satisfaction. Those levels are maintained through successful management of Vendor Turn Time (aka Order Processing Time or OPT) and Transit Time (TT).
Vendor Turn Time is measured from the date supplier receives the purchase order until the goods are shipped from the supplier’s facility. VTT may vary in duration depending on PO type and origin.
Collect vendors (6-series POs) are expected to adhere to a 3 business day VTT unless informed otherwise. E.g. a manual order for an off-shelf event may be created well in advance providing supplier with additional lead time. In this case, in order to prevent delivery ahead of the event, IPR would communicate a desired ship date.
Collect vendors (3-series POs) are expected to ship POs on the Ship Date indicated on the PO (segment DTM*038*CCYYMMDD on EDI 850 PO). This date is calculated backwards from the Due at Store/DC Date taking into consideration Transit Time.
Prepaid suppliers are expected to manage transportation points and methods to minimize transit time and delay in receipt of purchase orders.
The Home Depot also expects import suppliers to meet VTT expectations. The Home Depot defines import VTT as Purchase Order create-date to ship window.
The Home Depot defines Total Lead Time as the number of calendar days from the time an order is placed to the time it is received at its destination.
Merchandise must be shipped to arrive at the “Ship To” destination by the expected delivery date. Product substitutions are not permitted and orders should not be held in order to improve
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fill rates. Merchandise must not be shipped for receipt before the specified delivery date unless agreed upon in writing by a Merchant.
8.5 Supplier Minimums
Expressed in either product quantity or monetary terms, supplier minimums are defined as the smallest shippable purchase order. If the “minimum order” is negotiated as a dollar amount, the financial constraint must be explicitly specified to be set in either retail dollars or COGS.
Suppliers should refer back to the originating source for any replenishment order received for less than the contracted minimum. If the supplier accepts and ships such an order, the supplier is responsible for any additional costs.
8.6 Supplier Vacation and Holiday Closings
THD expects domestic suppliers to maintain lead-time and turn time though judicious planning of vacation and holiday closings. If suppliers anticipate facility closings for greater than three business days, 90-day prior notice is expected. Notification to the Inventory Planning & Replenishment team representative secures order placement and guarantees delivery.
As many domestic vendors shut down around Christmas holidays, The Home Depot Vendor Programs team facilitates the process of data collection in October. Vendors are requested to submit a timely response with specific closure details at that time in order to make adjustments to the ordering calendar and ensure uninterrupted availability of product at our stores to be sold through the holiday season. Contact e-mail: [email protected]
8.7 Expedited Shipments
Prior approval is necessary for any priority upgrades to inbound or outbound shipments. Authorization requirements are as follows:
Store originating requests involving inbound merchandise require Store Manager’s approval.
Non-store originating requests require approval of IPR manager.
8.8 Special Orders
Direct Delivery to the Customer
Orders often require delivery of merchandise directly to customers. THD expects the supplier to efficiently distribute THD compliant merchandise.
The THD Merchant coordinates freight terms for special orders. The supplier can facilitate payment by including on relevant documents the following information:
Customer’s name and address
THD store number and address
Customer Order Number
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Ordering and Shipping Process
The cost of special orders must be confirmed at the time the order is placed to avoid any chargebacks. If a cost discrepancy occurs, or if a purchase order has no cost, suppliers must contact the store expeditor by end of the business day following date of receipt of the special order to obtain a corrected hard copy of the purchase order, prior to shipping or invoicing. All special orders must be clearly labeled “Special Order” with the customer’s name for easy identification.
All special orders must have a Special Order Label affixed to every carton. Suppliers may purchase special order labels (HDI-168) at a minimal charge by contacting the following companies:
For Canadian Suppliers
Identico - Telephone 770-410-4767 Fastforms, Inc. - Telephone (800) 265-8312
Store Environment
9.1 Consumer Literature
Suppliers must provide all consumer literature to the Merchant. The Merchant determines the appropriateness for THD stores and if suitable provides a THD identifier for inclusion on the piece. Restocking these items rests with supplier representatives or service groups.
9.2 Displays and Fixtures
The Home Depot does not pay for displays or fixtures. Installation of displays requires pre-approval though the display authorization process and product must continue to follow all current THD display standards.
Please refer to “Securing Display” below for further requirements regarding displays.
9.3 In-Store Activities/Services (Domestic)
THD recognizes the cost associated with Supplier Service and requires suppliers to negotiate with their Merchant concerning the level of service provided to THD stores.
The following services are often negotiated into the Supplier Buying Agreement: o Maintain displays and Point of Purchase materials. o Monitor in-stock conditions by addressing out of stocks, backorders, and overdue
orders. o Coordinate Return To Suppliers. o Give informal product knowledge training with new department associates on each
visit. o Provide formal product knowledge training. o At the request of the Merchant, re-set product line. o Remove current stock and displays, construct new displays, rework beams, and
clean up debris for re-sets.
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o Coordinate buy backs, markdowns, and sell-through program for discontinued merchandise.
o Construct beams, displays, POP, and Depot Dons. o Merchandise, label, and sign product. o As approved by the Merchant or New Store Merchant, write backup orders.
9.4 Safety Standards
THD complies with all federal, local, and provincial ordinances including Workplace Hazardous Materials Information System (WHMIS), Department of Transportation (DOT), Environmental Protection Agency (EPA), National Fire Protection Agency (NFPA), and National Electric Code (NEC) regulations.
General Safety Standards
General in-store safety requirements are as follows: o Suppliers should report any THD store hazards to the manager on duty. o Suppliers and their designated representatives are required to sign into the
Supplier/Visitor Log (please see Appendix D1 EHSMS_Sign-In-Out_Log) o THD stores provide suppliers or their representatives with a numbered badge
worn prominently throughout the visit. o Unless in designated smoking areas, smoking is strictly prohibited. o Supplier representatives maintain control of tools and equipment and never leave
unattended tools, equipment, chemicals, or any other potentially hazardous substances on the sales floor
o Professional behavior is expected at all times o Adherence to WHMIS standards www.hc-sc.gc.ca for more information
Ladders
Ladder safety rules include the following: o Representatives may utilize fiberglass stepladders only when working in the
light/fan cloud or with electricity. Platform ladders may also be used in this capacity.
o Step stools and other unapproved ladders are prohibited. o Electric ladders are restricted to individuals who have received appropriate
training. o Supplier representatives should place barricade gates in the working aisle a
minimum distance of two full bays, or 16 feet, on either side of the electric ladder.
Fall Protection Equipment
Fall protection standards are as follows: o All suppliers will comply with all applicable THD fall protection standards. o THD requires representatives to use supplier-provided fall protection equipment. o Before each use, representatives must visually inspect all fall protection and travel
restraint equipment
Powered Lift Equipment
Powered lift equipment safety rules include:
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o Suppliers are prohibited from operating THD powered lift equipment. o Suppliers comply with all THD safe work practices, policies, and procedures
including barricade gates, spotters, and the “zone of safety”. Suppliers are responsible for designing and operating safety programs meeting THD and regulatory standards.
o Representatives maintain a zone of safety around all moving lift equipment. This zone minimally extends 10 feet in the direction of travel and 4 feet on all remaining sides.
o If individuals enter the safety zone, the operator immediately ceases equipment movement.
o Place barricade gates a minimum distance of two full bays, or 16 ft, on either side of the lift equipment. (Working and opposite aisle)
o Suppliers can not act as spotters for THD associates o Limit store business hour use of scissors lifts
Suppliers must comply with all applicable local, federal, and provincial regulations covering lift truck operation.
Power Tools
Manufacturer’s specifications govern use and maintenance of portable power equipment. The operator will employ all manufacturer-provided safety guards and devices.
Additional THD power tool policies include: o Representatives use appropriate personal protective equipment as specified by
CSA Standards, THD Business life cycle and other regulatory agency requirements.
o Unplug unattended portable power equipment. o Secure or tape down electric cords presenting a potential trip hazard. o Remove extension cards after each shift. o Refer to Power Strips for more information on the proper handling of electrical
cords.
Demonstrations involving power equipment require the presence of a supplier representative or THD associate. All parties involved in the live demonstration including supplier representatives, THD associates, and customers wear appropriate personal protective equipment (PPE).
Permanently installed power tool demonstration areas have additional safety requirements: o Unsupervised equipment posses a keypad with a timed shutoff. o Remove the blade of any unsupervised battery powered saw. o Remove batteries and blades of displayed cordless planers. o Screw guns, drills, and oscillating/orbital sanders are exceptions to the previous
rules. The following safety guidelines, however, do apply to unsupervised equipment:
o Provide eye protection such as safety glasses or safety goggles. o To promote child safety build a display at least 48 inches high.
Machine Maintenance
Equipment usage requires the following safety policies: o Immediately remove all non-functioning equipment. o Inspect all equipment such as ladders, saws, and other power equipment. o Suppliers or their authorized representatives may not disassemble or repair any
machines or equipment.
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o Supplier representatives should avoid contact with any equipment that is locked, tagged out of service, or under repair.
9.5 Merchandising Safety Standards
While on store premises, suppliers and representatives should observe merchandising safety standards, please review per department.
Department 21 Department 22 Department 23 Department 24
Department 25 Department 26 Department 27 Department 28
Department 29 Department 30 Department 59
Securing Displays (Fastener Standards)
Display and side cap fixtures require specific safety rules: Secure side cap fixtures, shadowboxes, and similar weight-bearing merchandise displays
to racking uprights, not cross braces, using “drop-in fasteners,” washers with bolts and nuts, or washers with self-tapping metal screws.
Hang displays, merchandise, or signs from roof joists require Visual Merchandising approval.
Protect side cap fixtures or other displays using peg-hooks by boxing them in with side panels and installing uprights. Peg-hooks cannot extend beyond the shadowbox/side panels/uprights.
Secure toilets, toilet tank lids, and similar merchandise displayed on sloped decking. To prevent tipping, secure displays of top-heavy merchandise.
Racking Standards
Upright Columns
Suppliers are prohibited from modifying or maintaining upright columns and “H” or “Z” bracing on pallet racking. Prohibited modifications include welding, cutting, drilling or self-tapping. Provided that the holes are spaced a minimum of 3” apart, it is permissible to drill one hole (1/4” maximum diameter) horizontally in each face of an upright post and drill multiple holes (1/4” maximum diameter) vertically.
All uprights over 69” high (including end caps) require anchoring of both the front and rear column to the slab with at least one 3/8” minimum by 3 ¾” minimum wedge anchor bolt with a 3/8” minimum washer. [Whiz nuts are an acceptable alternative to washers.] Contractors should install anchors with a net embedment of at least six times the diameter into the slab. Approved contractors will install all anchors.
Beams
All front and back beams will posses an engaged, operable manufacturer supplied safety clip, sliding or gravity locking pins, or attached with grade 5 bolts. If bolted to the uprights or the spring clips are replaced and engaged, front and rear beams with missing or broken safety clips are usable. Do not drill holes in the top or bottom surfaces of beams. Provided the holes are spaced a minimum of 3” apart, it is permissible to drill one hole (1/4”
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maximum diameter) vertically on the front or back face of a beam and drill multiple holes (1/4” maximum diameter) horizontally.
All bays require a minimum of two shelf levels for structural safety and support. Bays possessing only two shelf levels will have the levels spaced a minimum of 24” between beams except racking over receiving dock doors; the minimum changes to 12”.
With all product categories, beams installed at floor level use 3” high beams. If the distance between shelf level beams is more than 36”, the lower of the two shelf levels must have 5” high beams or greater unless otherwise noted in the NRIS.
Racking with 24” or 36” deep uprights can have 3” high beams, except for the top shelf level which must have a 5” minimum high beam. Do not store pallets with 24” or 36” deep uprights.
Racking with 51” long beams can have 3” high beams. Unless otherwise noted in the NRIS, the top shelf level should have 5” minimum high beams. If the lowest shelf level is higher than 52” from the floor to the top of the beam, the requirement is a bolted rear beam (grade 5 bolts) set approximately 18” off the floor.
Racking with 192” uprights must have the first shelf level no higher than 120” from the floor to the top of the beam. All other NRIS rules apply.
Gutless racking and V-rack can have 3” high beams, except the top shelf level which requires 5” minimum high beams. Do not store pallets.
Three inch high beams are permitted for safety retainer beams, other non-load bearing beams, and beams installed at floor level.
• Six inch high beams are acceptable for beams at least 126” long containing hand stacked product, but palletized categories require at least 6-1/2” high beams made with a minimum 14 gauge steel.
• Six inch high beams are permitted for beams 156” long containing hand stacked product, but palletized merchandise require at least 7” high beams manufactured with hot rolled steel.
• Exterior applications such as the Outdoor Garden Center exclude the use of slotted beams (beams with a series of holes in the top of the beams).
• Five inch high beams are acceptable for front and back beams eight feet and higher and over 87 inches in length.
The exceptions include:
Bolted safety beams and toe beams
Hand-stacked products within a 24” gap between top-of-beam to top-of-beam.
Beams 5” in height or higher are required for racking supporting molding, boards, and palletized ceramic tile
• At every height, extra heavy palletized product requires fastening front and rear beams with a grade 5 bolt, those products include:
Concrete products
Garden bagged goods
Brick, block, pavers, and stone
Flooring (ceramic tile, vinyl tile, wood)
Roofing materials (shingles, rolled roofing, coatings)
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Sheetrock mud
4’ x 8’ sheet goods (if in pallet racking)
Salt pellets
A grade 5 bolt is required to fasten all top beams higher than 60 inches
• To prevent excess spreading, all shelf level beams longer than 108 inches necessitate a minimum of one centrally positioned crossbar. Crossbars are attached to the front beam using tek screws.
• All beam levels that support heavy pallets must have a minimum of two evenly spaced, flanged crossbars per pallet position. Screw down all crossbars to the front beam using self-tapping screws. Wire decking with integrated cross bars is acceptable.
• To prevent torquing of beams that underpin accessories supporting weight such as tool holders and trays, it is necessary to attach the beams to uprights with a grade 5 bolt. The minimum beam height is 5”.
• For structural safety, all bays require a minimum of two levels, or four beams, of support. Bays with two levels of beams necessitate spacing the levels at least 24”.
• Roofing, concrete products, ceramic tile and masonry products require the top of the first set of beams not exceed 52” from the floor; the upper limit is 54” for roof coating and driveway sealers. Any first beam level between 52“and 96” for locations above receiving doors, RTV cage, and doorways requires a bolted back base beam set a maximum of 18” off the floor.
Decking
Decking usage requires the following: Wire decking is required for the top level of pallet racking above 96 inches. To allow for water flow in case of fire, all shelf levels below 96” within versa racking or 2”
beams requires either wire decking or wood stickers spaced 2 inches apart. Install metal sticker spacers vertically on the step of the beam.
Pallets must either span both front and rear beams or must have two evenly spaced crossbars installed under each pallet position. If using non-waterfall wire decking, screw down all crossbars to the front beams using tek screws. Extra heavy palletized product rests on two crossbars per pallet position.
Waterfall wire decking with integrated crossbars remains an acceptable alternative to crossbars. It is not necessary to screw down crossbars with integrated waterfall wire decking.
For all decks constructed using wood stickers install space stickers a minimum of 2” apart. When there is a high potential of employees walking on the decks to stock and/or retrieve
products, install wire decking in lieu of the wood stickers. Construct all Outside Garden racking with wire decking. Due to the flammability of shingles and rolled roofing/felt roof coatings, install wire decking
for all levels. Pallet storage supported by wire decking must either span both front and back beams or
have two crossbars installed under each pallet position along with the wire decking. THD prefers wire decking with integrated crossbars. Horizontal applications exclude the use of pegboard or other solid sheet goods. Merchandise that would fall through the 2-inch spaces of the wood stickers such as slab
doors, windows, and standup stick goods require the use of Fire Department approved deck (perforated metal decking).
THD prefers wire decking to wood stickers.
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Install spacers vertically on the step of the beam.
Stores with Seismic (Earthquake) racks
Seismic raking standards require the following: Space permitting, install row spacers. Do not tie end caps to adjacent racks. Maintain a minimum of 3” clearance between the end cap upright and adjacent racks. Do not connect racking to the building structure.
Cantilever Racking
Cantilever rack requires the following: Racking equipped with appropriate crossbeams/decking is necessary for storage of
palletized freight. Always use safety poles to ensure that loose, unbanded products do not fall out of the
racks.
Hazardous Waste
Based on federal, local, and provincial regulations, the store management team is responsible for identifying, storing, managing and verifying all waste generated as result of resets, re-merchandising of THD product, or any other work performed on the premises. Suppliers manage and dispose of any regulated waste generated while performing work for The Home Depot.
Chemical Spill Management
Follow the following standards for chemical spills:
In the event of a chemical spill, suppliers are held responsible for 1. Securing the area and 2. Paging the manager on duty.
Store personnel direct the cleanup.
THD retains the right to charge suppliers for any costs incurred as a result of representative activities.
Blood borne Pathogens
Treat exposure to blood or bodily fluids with the “universal precaution.” Immediately contact the manager on duty to determine appropriate measures.
Fire Protection
File protection standards are as follows: Do not extend pallets or other merchandise into the flue space. Including breakaway doors, all fire exits must remain unlocked, clear, and unobstructed,
inside and out. Maintain clear and unobstructed pathways to exits; pathway equals or exceeds the fire exit width.
Store products a minimum of 18’’ below sprinkler heads. Allow a 36” clear and unobstructed perimeter surrounding sprinkler risers, fire hose
cabinets, fire department connections, and electrical panels and rooms. Maintain clear and fully accessible fire extinguishers. Maintain clear and unobstructed exit signs.
Electrical Standards
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General electrical standards include: A licensed electrician is responsible for installing all displays and other items requiring
permanent electrical power. Tape down or otherwise secure all electrical cords that enter walkways or create a
potential trip hazard.
Power Strips
A power strip is permitted under the following conditions: Constructed with a built-in circuit breaker and a cord no more than 6 feet long. Constructed with 14-gauge wire and a 3-prong plug, contain two wires with a ground, and
maintained in good condition with no visible frays, splices, or damage. Plugged directly into an wall outlet One strip to one wall outlet. Powered down at the close of each business day. Used for a maximum of 90 days. Suppliers should remove from service any damaged or non-approved cords.
Accident Reporting
Immediately report any incidents to the manager on duty. The supplier’s organization is expected to develop a formal accident reporting procedure which conforms to workers’ compensation, general liability, and property damage claims standards. This policy must adhere to all applicable Workers’ Compensation reporting guidelines, Workers’ Compensation Law, and as otherwise required by law.
Emergency Evacuations
Suppliers will learn emergency evacuation routes and follow emergency evacuation procedures. If an emergency occurs, suppliers must immediately evacuate the building, assemble in the evacuation area, and await further instruction.
Visual Merchandising
Please see the document: Visual Standards Guideline.
Signage and Fixture Design Process
THD has developed a signage and fixture design process which covers project conception to store implementation.
The Home Depot Signage Governance and Approval Process
Prior to placement in THD stores, all permanent and temporary signs undergo a review process. Suppliers wishing to place any sign, brochure, or marketing materials must comply with this process.
Depending on the intention and nature of the sign, suppliers will work with one of the following two teams: Permanent Signage or Promotional Signage. [Permanent signage includes directional signage regardless of funding source.] The assigned Implementation and Planning Merchandiser will contact the appropriate THD group. Both of these functional teams expedite development and present the design to the Signage Governance Executive Review Committee for approval.
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Once signage approval is granted, THD will issue a unique item number and approval stamp for placement on the signs. Store management will not allow installation without the stamp of approval.
Sign Design Standards
All signage is printed in two languages, English and French.
The Home Depot Approved Sign Stamp/Universal Product Code
Approved signage includes a Home Depot Approved stamp/UPC displayed on the final print. THD personnel will discard any signage arriving in the stores without the approval stamp/UPC.
Dedicated Receiving Bay for Point of Purchase (POP) Signage
For easy location of POP signage by ISS and factory representatives, Home Depot stores maintain a dedicated bay in the receiving area. The POP bay mirrors the color scheme of the merchandise departments.
Promotional Signage
To provide continuity with marketing strategy, the Merchandising Marketing Manager (MMM) manages the approval process for promotional signage. Once a promo is approved, the MMM works with the Promotional Signage team to develop the necessary in-store signage. After development, it is presented to the Sign Governance Committee for final approval. A THD-designated fulfillment supplier prints and packages the material.
Please see the Appendix C: Visual Standards Guideline.
Fixture Design and Approval Process
THD has established Display Authorization Process Design standards for store fixtures, showrooms, adjacencies, and cross merchandising. To ensure the safety and security of displays, suppliers are required to obtain prior approval for installation of store displays and fixtures through the Canadian Dispay Authorization Form (DAF).
DAF Project Initiation
The Merchant or Visual Merchandiser (VM) notifies the Store Planning Manager of an approved project. Depending on the funding source, the THD Fixture Team supports one of two fixture development processes.
When the project is funded by the supplier, the Merchant directs the supplier to contact the VM with all available information about the display or fixture including sketches, renderings, engineering drawings, and photographs. The VM completes the DAF and submits to it and the Project Charter to the Fixture Design Manager. To assist in the development of a fixture solution, a fixture designer is selected to work with the supplier’s design firm or fixture.
DAF Project Development:
In partnership with the VM and Procurement GCL, the Fixture Designer will guide the display/fixture design development through the revisions necessary to arrive at a final concept. The prototype is fabricated and merchandised for review by the DAF committee.
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DAF Project Approval:
A committee consisting of Visual, Fixture Design, Store Planning, Construction, Safety, Procurement, Asset Protection, Operations and Signing conducts weekly DAF approval review at the Innovation Center. Notes are taken at the initial walk through and reviewed by the committee the following business day. The project owner is then notified of provisional approval or project rejection.
In order to achieve full approval, the prototype builder submits to the Fixture Designer production drawings and specifications in AutoCAD and PDF format along with the installation instructions in Word or PowerPoint. Some fixtures may require stamped engineering drawings or UL listing.
Prior approval of the DAF committee and the VP of Store Merchandising is necessary for in-store installation of fixtures/displays. Installations using racking must meet National Racking Installation Standards (NRIS).
Product Placement Standards
Product placement standards have been established for the following:
Vertical Merchandising
Product Reach Points
Base Beam Requirements
Base Requirements for Pallets
Cut Case
Product Displays
SKU Labels
Bay Signs
Clip Strips
Wing Stacks
Featured Endcaps
To meet visual presentation standards and brand consistency, the THD Promotional Signage team develops, produces, and prices all end cap POP. Home Depot pays for creative, consolidation, and shipping costs. Suppliers awarded end caps are required to cover the printing costs of the POP.
Plan-O-Gram
A plan-o-gram (POG) illustrates the display of retail products. The purpose of a POG is to enhance the customer buying experience and provide a safe retail environment. THD associates and suppliers utilize this tool for setting merchandise.
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Manufacturing Excellence
10.1 Supplier Requirements
Each supplier is required to:
• Ensure that all changes to previously approved PROPRIETARY BRAND or DIRECT IMPORT products be communicated in writing to The Home Depot for approval, prior to implementation.
An Engineering Change Notice, or ECN, process has been developed and is referenced in more detail in “Pallet Exception Request Process” of this document
• Report all “substantial product hazards” as defined and required by the 1972 U.S. Consumer Product Safety Act (http://www.cpsc.gov/businfo/cpsa.pdf ) or the 1985 Canadian Hazardous Products Act (http://laws.justice.gc.ca/en/H-3/index.html), as applicable. In addition, suppliers who are made aware of potentially reportable product hazards by anyone other than by The Home Depot personnel (e.g.; customers or safety listing agencies) are required to immediately notify The Home Depot at [email protected]
• Suppliers must focus on the prevention of quality issues, not just their correction.
• Quality cannot be inspected into a product or package after it is manufactured. Quality must be designed into the item. The sooner a design is evaluated for compliance to specifications, safety requirements, performance requirements, material handling characteristics, and manufacturability, the more cost-effective the entire process becomes. Once the design is validated, the manufacturing process should also have defect prevention solutions embedded throughout the process in order to be the most cost effective. Even when The Home Depot provides suppliers product requirements, specifications, or other forms of expectations (e.g., form, fit, or function), the supplier is responsible for complying with all applicable laws and regulations.
10.2 Measurement and Enforcement
To ensure proper implementation of, and compliance with, these standards, The Home Depot will undertake appropriate measures, such as auditing, testing, and inspection of suppliers’ factories, products, and packaging.
The Home Depot reserves the sole and exclusive right to determine the appropriate scope, frequency, and timing of said affirmative measures and to interpret and enforce these standards. The supplier is responsible for providing the necessary data access and support to The Home Depot representatives in order for them to carry out all related responsibilities. This will include providing The Home Depot product and packaging test data and specifications on request (i.e., Bill of Material, drawings, material analysis and weights, relevant certificates of conformance, patent information, photos, and assembly / operating instructions).
The Home Depot has the sole authority to select, direct, and manage all third party services associated with the QA program. This includes conformity assessment agencies (e.g., Underwriters Laboratories (UL), CSA, or ETL), factory evaluation services, test labs, inspection companies, engineering service firms, and any others deemed necessary by The Home Depot. For all product sold to The Home Depot that is eligible for a safety listing, the supplier is required to sign over legal access to conformity assessment files to The Home Depot, upon request.
If the supplier chooses to pursue independent accreditation or certifications for their facilities and/or products that are over and above the minimum standards set by The Home
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Depot, they will be taken into consideration as the appropriate affirmative measures to implement are determined.
For example, if a supplier chooses to pursue a relevant, independent accreditation for an on-site test laboratory, The Home Depot will look favorably on this action and incorporate these capabilities into the quality control plan, to the maximum extent reasonable.
Corrective Actions / Preventive Actions (CAPA)
If it is determined that a factory utilized by a supplier for the manufacture of product for The Home Depot, or the product or packaging itself, is found to be in non-compliance, the supplier must take corrective actions. In addition, the supplier is required to define preventative measures that will be put in place to ensure the event does not occur on future shipments.
Actions must:
Be documented in The Home Depot’s CAPA Form
Correct the non-compliance in the specified timeframe
Prevent future non-compliance issues
Failure to meet defined requirements can result in delayed shipments, deficient ratings on Supplier Scorecards, canceled purchase orders, and further repercussions as defined by The Home Depot.
Contact Information
For more information on this document, or more detailed Standard Operating Procedures, contact your appointed QA service provider (if already selected) or The Home Depot’s QA team at [email protected] and you will receive a response within 3 business days.
Globally-based QA team members are also available to answer questions at the following telephone numbers:
Haryana, India 91-12-4451-4500
Shanghai, China 86-21-6164-8000
Shenzhen, China 86-755-8370-9288
Monterrey, Mexico 52-81-8155-7143 or 52-81-8155-7163 or 52-81-8155-7191
Naples, Italy 39-347-552-2878
Factory Development
Suppliers must evaluate factories capabilities, capacities, quality system, and cycle times before they use them to make products for The Home Depot. Further, this evaluation must be provided to The Home Depot, upon request. The Home Depot will employ a variety of tools to support factory development and promote an environment of continuous improvement.
This includes, but is not limited to:
System audits
Factory records review
Factory operations review (preliminary and in-depth)
On-going performance reviews
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Issue resolution services
Supplier’s factory qualification reports Factory development procedures will be tailored to the appropriate level of detail, as deemed necessary by The Home Depot. Process goals ensure the following attributes are adequate for The Home Depot’s intended use:
Manufacturing capacities
Process capabilities
Quality systems
Cycle times
Once The Home Depot approves the use of a supplier’s manufacturing facility, significant changes to the facility operations, infrastructure, equipment, or administration must be communicated in writing to The Home Depot for evaluation. In addition, the manufacture of The Home Depot products must not be relocated from approved facilities without the prior approval of The Home Depot Quality Assurance team.
Product Engineering
Product tests, inspections, and evaluations will be conducted, where deemed appropriate by The Home Depot, to ensure product meets or exceeds all applicable requirements. These evaluations can be conducted on an announced or unannounced basis and can be conducted in the factory on incoming components, work in process, or finished goods; or by pulling product out of the supply chain or The Home Depot stores for evaluation.
Relevant requirements can include:
Safety standards
Industry standards
Regulatory requirements
Performance and other claims made by the supplier
Specific The Home Depot requirements
Suppliers are required to comply with the instructions received by The Home Depot or its designated service provider, to include:
Submission of required samples (e.g., pre-purchase, production, returned goods, or samples involved in legal claims)
Submission of required forms (e.g., safety listing files and product claim forms) Submission of product-related data (e.g., specifications, production records, product quality data)
Payment of fees (process may require pre-payment of test fees before lab initiation)
To the maximum extent practical, product-specific expectations will be shared with the supplier by The Home Depot or the approved service provider prior to conducting the evaluation (e.g., test, inspection, document review, etc). The objective is to reach agreement on defect classifications and acceptable tolerances prior to conducting the review, especially for unregulated products or product attributes. New suppliers, new factories, and new products will be treated differently than those with historical records available to The Home Depot. Consistently positive quality results will lead to a reduced number of tests and inspections by The Home Depot, whereas negative quality results will be cause for increased levels of measurement efforts.
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WHMIS
The Workplace Hazardous Materials Information System (WHMIS) is Canada's national hazard communication standard. The key elements of the system are cautionary labeling of containers of WHMIS "controlled products", the provision of material safety data sheets (MSDSs) and worker education and training programs.
If the product is a WHMIS controlled product, then the product must be labeled with the appropriate WHMIS labels. WHMIS standards: www.hc-sc.gc.ca for more information
Material Safety Data Sheets
Upon initial delivery of product and in the event of any updates, changes, or corrections suppliers provide Material Safety Data Sheets (MSDS) to the 3E Company and note on the MSDS “For The Home Depot.” Render English and French versions of every MSDS. The MSDS must be within 3 years of it’s preparation date or it does not meet the Canadian requirements
Packaging Engineering
All packaging systems designed for The Home Depot should:
Enhance the customer's shopping experience
Provide protection for product integrity
Serve the customer from pre-purchase through product use and package disposal
Comply with all requirements, as set forth herein
In order to ensure packaging meets or exceeds all requirements, The Home Depot will follow test and inspection processes similar to that described in the Product Engineering section above. Relevant requirements can include:
Structural Standards (including the grade of cardboard required)
Packaging Specifications
Marketing and Labeling requirements
Instruction manuals, if provided
Specific to The Home Depot requirements
Packaging Communication Attributes
The following are requirements for all suppliers. The Reference Codes listed are for internal The Home Depot inspection / compliance purposes.
All proprietary Home Depot branded packages must include The Home Depot SKU number
All retail primary packages must include country of origin
All products making a warranty claim must include a reference to a contact source for the consumer to exercise their warranty rights. If The Home Depot is managing the warranty claim, then The Home Depot corporate address will satisfy the requirement.
All proprietary products are required to have a manufacturer, packager, or distributor name and address on the primary retail package.
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For products sold in Canada, the following address and copy are required when using a Home Depot proprietary brand name.
Home Depot of Canada Inc.
900-1 Concorde Gate
Toronto, Ontario M3C 4H9
All Rights Reserved/Tous Droits Réservés
Package Info
All products are required to have a manufacturer, packager, or distributor name and address on the primary retail package.
For products sold in Canada where The Home Depot is the importer of record, the following address applies:
Imported by/
Importe' par/
Home Depot of Canada Inc.
900-1 Concorde Gate
Toronto, Ontario M3C 4H9
Barcodes
All products are required to have a unique, scannable barcode according to the Uniform Code Council’s specifications for product identification at the sales register. The Home Depot accepts only UPC Version A, UPC Version E, EAN 8, and EAN 13 barcode symbologies at point of sale. In addition, all barcodes must have human readable characters that include a number system character and a check digit.
Barcoding requirements for all suppliers
o All barcode information must be provided to your The Home Depot Merchandising assistant upon agreement to purchase product. A 60 day advance notice of all barcode number changes and additions is required.
o Any problems with the quality, integrity, or application of a barcode must be reported immediately to the bar code support representative at [email protected]
o Any changes to an existing product’s barcode (UPC AND UPC shipping container code) or its quantity must be communicated to a Merchandising assistant prior to change.
o For more detailed information regarding barcoding, refer to http://www.uccnet.org/home.html , http://www.uc-council.org
Languages
All packaging sold in the Canada market will be translated into English and French. The English language will be presented first, followed by French. Translation will include all caution and warning statements and any inserts or instruction manuals.
Conformity Assessment
Product is to be labeled with all applicable conformity assessment marks as required.
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10.3 Shipping Containers
All master shipping containers being handled through The Home Depot Distribution Centers and The Home Depot stores will have:
o a MH10 or GS1 label (see Section 6: Shipping Guide for more information).
o Product description
o Up arrow to indicate stacking direction
o Case pack count
o Case weight (lbs)
o Country of origin
o Pallet pack count
Finished Retail Packages
Finished retail packages will be free of dirt, dents, scratches, scuffs, oil, burn marks, punctures, or other deformations or physical blemishes.
10.4 Packaging Point of Purchase Displays
Covers
Packaging covers used overtop of a display-ready vehicle must be securely attached to the base. The preferred tape method is ASTM D1974.
Floor Stand
Floor-stand point of purchase displays (including ¼ pallets) cannot exceed 24” x 24” x 48” (Including pallet, not including header).
10.5 Packaging Loss Prevention Attributes
Security Tags
Products requiring the use of Sensormatic tags on the package (as determined by The Home Depot) will be placed inside the packaging within 3” diameter of the UPC on the primary retail package. In Situations where a primary retail package uses a hangtag or sticker for specific products deemed by The Home Depot to require such, the Sensormatic tag is to be incorporated into the product itself.
Products that require Sensormatic tags must have only one UPC on the package.
10.6 Packaging Environmental and Disposal Attributes
Inks
All packaging printers must use water-based inks that are free of heavy metals (e.g., lead, cadmium, mercury, and chromium) as defined in the CONEG Act. http://www.coneg.org
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Environmental / Recycle Symbols
All packages containing environmental claims or recycle symbols will comply with applicable government regulations as designated through the FTC and EPA. http://www.ftc.gov/bcp/grnrule/guides980427.htm
Solid Wood Packaging
All solid wood packaging materials (including pallets) will have the appropriate pallet markings to indicate completion of a treatment method to prevent infestation in accordance with 7 CFR 319.40 as published by the US Department of Agriculture.
Recognized solid wood packaging material treatment methods include:
Heat Treatment or Kiln Dry to 56ºC core temperature for 30 minutes
Methyl Bromide Fumigation
Additionally The Home Depot requires Solid Wood Packing Material (SWPM):
1. to be free of bark
2. to be apparently free of insects (infestation, droppings/sawdust, holes)
3. to have a moisture content for SWPM of less than 20% at time of container loading
For more information regarding fumigation treatments and compliance requirements, please reference http://www.aphis.usda.gov/newsroom/hot_issues/wood_packing.shtml (Please reference links to Import & Export requirements) also reference ISPM -15 https://www.ippc.int/servlet/BinaryDownloaderServlet/133703_ISPM15_2002_with_Ann.pdf?filename=1152091663986_ISPM_15_2002_with_Annex1_2006_E.pdf&refID=133703
All treated SWPM materials must be stored in a clean dry location, elevated off the ground (raw earth), and positioned under cover.
Cleanliness
All cargo containers for shipment to The Home Depot are to be free and clear of dirt which can lead to infestation. Dirt clusters on or in the container will not exceed 1 inch diameter.
10.7 Packaging Distribution Attributes
Certification
All products designed for shipment through The Home Depot distribution facilities must be capable of passing an ISTA 1 series test cycle as a minimum. The ISTA 2 & 3 series and the ASTM D4169 test cycles will more accurately simulate The Home Depot distribution channels and are recommended where available. Please see http://www.ista.org, http://www.astm.org
Master Shipping Packages
Master Shipping packages must be designed so they can fit on an approved pallet size +/- 1” overhang with the product vertical orientation according to its intended stack configuration.
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Shipping on a Pallet
Product shipped on a pallet should have a stack height less than 48” (including pallet height) to enable placement in racks. Pallets should be shrink wrapped with clear plastic wrap, with a flat top. Do not stack loose product on the top tier and shrink wrap them together. Suppliers will be charged back for reconfiguring pallets that do not have a flat top.
Corrugated Shipping Containers
Corrugated shipping containers weighing less than 50 lbs. must be securely closed using glue or tape. When tape is used it is to be applied in smooth and consistent manner without wrinkles.
Freight Loading
Freight loading is a critical component to package integrity in distribution. All packages must be tightly stacked into the cargo container or trucks to minimize space for load shifting. Any vacant space in the container is to be filled with an air bag and inflated to the correct pressure to not crush or damage adjacent product. Rope tie-downs and bracing to the floor and wall of the container is an acceptable alternative.
Solid Wood Packaging
All solid wood packaging material (including pallets) will have moisture content at or below 20% at time of container loading.
Over 150 lbs
All items over 150 lbs. will be palletized for machine lift.
Corrugated
Corrugated transit shippers for Home Depot will be compliant to Item 222 of the National Motor Freight Traffic Classifications and Rule 41 of the Uniform Freight Classifications. Packages meeting this performance standard are to be labeled with the box manufacturer’s certificate stamp.
Pallet Standards
Please see Section 6.
Total Weight
Total pallet weight including product; Maximum weight must not exceed
2800 lbs for “Regular Duty”
3500 lbs for “Heavy Duty”
Heavy Duty
“Heavy Duty” pallets are required for following heavy items:
Roofing (shingles, rolled roofing)
Sealers / coatings (driveway, roof)
Concrete bagged goods
Brick, block, pavers, edging and stone (including bagged stone)
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Counter top
Size Requirements
Pallets must meet one of the following size requirements:
40” x 32”
48” x 40”
72” x 40”
96” x 40"
Minimum Pallet Construction Requirements
Pallet design: flush, partial 4-way, non-reversible
Pallets must be of all wood construction. All wood species are acceptable for use, except those in classes 7 and 14 in the Uniform Standard for Wood Pallets, as published by the National Wooden Pallet and Container Association (the Uniform Standard). For additional information please visit http://www.nwpca.com/IndustryStandardsSpecifications/UniformStandardforWoodPallets.pdf
Wood used must be sound (no decay) and square edged. Knots must not be larger than 1/3 the width of the board. No serious cracks or protruding splinters
Top and bottom boards must be a minimum of 5/8” thick
Spacing between top boards on “Regular Duty” pallets must never exceed 3-1/4”
Spacing between top boards on “Heavy Duty” pallets must never exceed 1-1/2”
Bottom lead deck boards must be a minimum of 5-1/2” wide (all pallets)
Bottom deck boards for “Regular Duty” pallets must be a minimum of 3-1/2” wide.
Bottom deck boards for “Heavy Duty” pallets must be a minimum of - 5-1/2” wide.
The minimum number of boards is as follows:
40” x 32” - 4 bottom boards
48” x 40” - 5 bottom boards
72” x 40” - 6 bottom boards
96” x 40” – 8 bottom boards
No missing or broken top or bottom boards
Stringers must be a minimum of 1-1/2” wide x 3-1/2” high
At a minimum, 3 stringers are required. Additional stringers may be needed depending on pallet dimensions
Stringers must have a maximum spacing of 18”
All stringers must be solid and unbroken. No repaired stringers or companion stringers
All stringers must be notched in two places, 9” long, with 2” vertical opening (including thickness of bottom boards) and ½” curved radius corners.
Spacing requirements of notching:
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40” x 32” – Positioned 5-1/2” from each end
48” x 40” – Positioned 6” from each end
72” x 40” and 96” x 40” – centered on pallet, 27”-30” on center
All boards must be attached with a minimum of two 11-12 gauge, 2-1/4” helically or annually threaded nails, staggered, per connection.
There must be no protruding nail heads or points.
Pallet assembly, fastener quality, and fastening schedule must comply with the Uniform Standard.
These criteria are consistent with GMA “Grade A” pallets
10.8 Import Pallet Label
UCC-128 Zone Guidelines UCC-128 Label Format Solid Wood Packaging Materials, Pallet Markings
Pallet Exception Request Process
Suppliers must formally request size variations to these Shipping Platform Standards and receive written authorization from The Home Depot Supply Chain Council. To be considered for use of an alternative platform, the supplier is required to perform the following:
1. Complete the Shipping Platform Exception Form located at:
https://www.formrouter.net/supplierperformance@THD/ShippingStandards/default.asp
Once the form is completed; it is automatically uploaded into The Home Depot’s system. Suppliers will receive an email from The Home Depot confirming receipt of their request within 24 hours of submission.
2. All exception requests must include documentation that the requested platform meets the minimum 2800 lb. load capacity (3500 lb. for Heavy Products as defined in the Reference Manual). One of the following test methods must be used:
Pallet analysis using latest version of The Pallet Design System© (PDS)
ASTM D-1185 “Standard Test Methods for Pallets and Related Structures Employed in Material
3. Please submit the appropriate test method documentation to the attention of Global Supplier Performance – Shipping Platform Standards via:
Email: [email protected]
Supplier Pallet Return Project
Suppliers participating in the Supplier Pallet Return Project must provide markings on sides of pallets, indicating supplier name and the phrase “Fee Pallet”.
Pallet Standards for Door and Window
Doors and windows must be shipped on sturdy pallets or platforms. Conventional pallets used in the packaging system must conform to shipping platform standards outlined above
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Product must be secured to the pallet / platform via stretch-wrap and banding, wood bracing or other means. Stretch-wrap must meet quality and application specifications outlined below
All doors / windows shipped upright on a pallet must be secured together as a unit in such a way as to ensure that as individual units are removed, product left on the pallet / platform will remain upright and stable
A sign (minimum size 8 ½” x 11”) must be placed on all four sides of the pallet that states “Full Pack Out Required if Factory Packaging is Broken”
All pallets of doors and windows that are shipped upright must pass the following tests to ensure adequate load containment and stability
o International Safe Transit Association (ISTA) test sequence 1E
o Force pull test and end unit pull test
Tests must be conducted by an ISTA certified packaging lab. Test results must be made available to The Home Depot upon request and must include a description of any damage to product, cartons, pallets / platforms, banding, bracing or other packaging components. Any of the following conditions constitute a failed test:
o visible cracks or breaks to pallet / platform boards or stringers
o broken cross or lateral bracing, including product coming loose from bracing
o broken bands
o obvious leaning or instability of product
Paper/Corrugated Pallets
o Use of paper or corrugated pallets is prohibited for all Home Depot product or goods. For additional questions regarding the use of paper pallets please contact the Home Depot Package Engineering Department at: [email protected]
Plywood/Manufactured Wood Pallets
Use of plywood or manufactured wood pallets is prohibited for all Home Depot product or goods. (Unless an exception has been granted) For additional questions regarding the use of plywood or manufactured wood pallets please contact the Home Depot Package Engineering Dept. at [email protected]
Stretch Wrap/Banding Standards
Stretch Wrap
o Stretch wrap must be 75 gauge or higher. If product is merchandised/stored in D28 – Outside Garden or other outside environment, UVI protected film is required.
o Stretch wrap must be applied with a 50% overlap
o Must be applied mid-way down over the pallet and cover all 4 corners of the pallet
o Must be applied with 3 full wraps at the bottom (to the pallet) and 3 full wraps at the top of the load
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Banding
A minimum of 2 bands must be used to secure product to the pallet. At least 3 bands are required if product is 12’ or longer
Banding selection and use must comply with the most recent standards published by the American Society for Testing and Materials (ASTM), 100 Barr Harbor Drive, W. Conshohocken, PA 19428:
o ASTM D 3953 – Standard Specification for Strapping, Flat Steel and Seals
o ASTM D 3950 – Standard Specification for Strapping, Nonmetallic (and Joining Methods)
o ASTM D 4675 – Guide for Selection and Use of Flat Strapping Materials
Banding for lumber and engineered building materials must meet applicable Association of American Railroad (AAR) specifications for that product and bear the AAR stamp.
10.9 Packaging Ceramic Tile and Natural Stones
• UPC Code
Each ceramic tile must be individually labeled with the UPC bar code on the back
• Master Carton UPC Code
Each master carton of ceramic tile must have a UPC code that is different than the individual piece UPC described above.
• Tile and Natural Stone
All tile and natural stone master cartons must contain the following graphic requirement as a minimum:
Manufacturers name, brand name, or product name
Product size is English and metric units
Surface area of product per carton in English and metric units
Pattern name and shade number where applicable
Grade of product (for ceramic tile where applicable)
Tone rating (for ceramic tile where applicable)
PEI rating (for ceramic tile where applicable)
Water absorption (for ceramic tile where applicable)
COF rating (for ceramic tile where applicable)
Frost resistant indicators (for ceramic tile where applicable)
Country of origin
Manufacturer, packager, or distributor address
UPC bar code
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These requirements constitute the communication aspect of the primary retail carton and therefore need to be in English and French.
Reference http://www.tileusa.com/profile_main.htm
Unitization
Master shippers used for tile or natural stone are to be constructed of paper or plastic corrugated. All paper corrugated master shippers are to be tightly secured with a polyethylene shrink-wrap for containment.
Crates
All crates for ceramic tiles and natural stone must comply with the pallet designs referenced in the document: Packaging Engineering
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Separation
All unit load layers of ceramic tile or natural stone are to be separated by a double wall C Flute corrugated divider.
• Pallets for Ceramic tile and Natural stone
Pallets for ceramic tile and natural stone will comply with the pallet requirements defined in ME 1.4.6 with the following exceptions:
o 31.0" Wide x 42.0" Deep (Stringer)
o Have a minimum of seven boards on top and five on bottom with three stringers.
o A maximum of 1.0" spacing between boards on top is required.
o All pallets must be able to support the weight of the product being shipped.
o Notch for four-way entry (1.25” off of stringer allowing for 2.0” clearance and 7” width)
o Total unit height (wooden pallet plus tile boxes) should not exceed 32".
• Ceramic Tile and Natural Stone
Ceramic tile and natural stone will comply with the banding requirements defined with the following exceptions:
o Banding: Plastic, Minimum bands to be used is 4
o Shroud/Hood: Pallet must be mechanically heat shrunk with a fitted, 0.15mm, low density polyethylene film made of DuPont "Surlyn" brand wrap or equivalent. Film must have the property as not to stick to the shrink-wrap around the individual tile boxes and a 12 month (2%) UV stabilizer
o Top Protection: Corrugated, fiberboard or wood is required.
o All palletized units must have vertical corner board protectors.
10.10 Packaging Lumber and Plywood
• Barcodes
o Each piece of lumber must be individually labeled with a UPC label or tag
o Each label or tag must contain the product description as well as barcode information.
o Each piece of plywood must have the UPC located on one of the four corners using a heavy duty heat resistant adhesive. Adhesive for the labels should not leave any residual marks on the lumber.
• Plywood
Each shipping unit of plywood must be striped and color-coded on both sides of the shortest dimension from top to bottom.
o Recognized Exceptions are:
o Plywood Siding
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o Pressure Treated Plywood or Cabinet Grade Plywood
If you have a question or a question you believe should be added to this list, please send your inquiry to: [email protected]
10.11 Canadian Market Packaging
English/French packaging for Canada follows the same basic rules as that for the U.S. market except for the use of French as the translated language and the following:
• Order of Languages: English copy should always appear first, followed by the French translation.
• Copy Size: All copy for both English and French is the same size. This applies to all panels including the front panel.
• Copy Color: The color used for French copy can be different from that used for English to help the consumer find the appropriate language copy. However, in selecting alternate colors, both languages should have equal emphasis. Please note that trilingual packaging is permissible for the Canadian market if all specified copy is translated, it meets the basic rules for the U.S. market and it meets the copy size and copy color rules above. The order of languages requirement above does not apply for trilingual packaging.
Packaging Inserts – All markets
Owners’ manuals, instructions sheets, warranty cards, product hang tags and other packaging inserts should mirror the languages used on packaging.
10.12 Import Master Shipper – Canada
Starting in the top left quadrant of the master shipper, the department number will be reversed out with a black background as described in the figure above. Adjacent to the department number will be the SKU number printed in black. For multiple SKU numbers, a sticker can be used as an alternative to direct case printing. In the top right quadrant of the shipper, an up arrow will be used to indicate the stack orientation. A brief description of the product will be located beneath the department number. The purchase order number will be recorded beneath the product description. A sticker can be used to record the PO# when placed adjacent to the direct print text PO#. The country of origin (for example, CHINA) will be placed beneath the PO# as indicated in the rendering above. The bottom left quadrant of the shipper will contain the case count and the case weight (lbs). The case count is indicated by the number quantity followed by the word “Pack” (for example, 24 Pack). The bottom right quadrant of the shipper will contain the I2of5 code. All fonts on the master shipper will be Helvetica Medium (or Regular) or Arial Medium (or Regular) or their equivalents. No distortion of the character will be permitted. All fonts will be a minimum 1.5” high and a maximum of 5” high. Exceptions will be made for small containers.
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Customs Compliance
11.1 Canadian Customs Requirements
Canada Customs, formally known as Canada Border Services Agency (CBSA) is responsible for providing integrated border services that support national security and public safety priorities and facilitate the free flow of persons and goods to and from Canada that meet all requirements under the program legislation.
The Canada Customs Invoice is required on all shipments passing through customs en route to Canada. Commercial shipments to Canada, which are valued at more than $ 2500 (Canadian funds), may be subject to duties and sales taxes and must be accompanied by a Canada Customs Invoice. (CCI)
For more information on importing into Canada and Customs requirements, see Memorandum D17-1-5, Importing Commercial Goods at the following link:
http://www.cbsa-asfc.gc.ca/publications/dm-md/d17/d17-1-5-eng.html
Based on the terms of sale, if The Home Depot is responsible for the customs clearance of the shipment, The Home Depot Canada’s Customs broker is:
UPS Canada Brokerage Contact Information
Email: [email protected] Phone # 1-800-203-8132 / Fax # 1-800-220-6944
All commercial documents you prepare for shipments to Home Depot Canada Inc., should include the notation “For Customs Clearance by UPS Canada Ltd. (OMD)”, and carriers are responsible to surrender Arrival Notice to UPS Canada Ltd. office.
Canada Customs Invoice
The Canada Border Services Agency (CBSA) requires the vendor of the goods to prepare a Canada Customs Invoice (CCI) for all shipments entering Canada. The CCI is utilized for the determination of the classification of the goods, the value for duty, tax and duty rate, and tariff treatment. Each shipment entering Canada must have one copy of the Canada Customs Invoice (or the commercial invoice that provides the required data). For more information on Canada Customs Invoice requirements, see Memorandum D1-4-1.
The Canada Customs Invoice (CCI) must include:
importer name and business number
exporter name
unit of measure and quantity of goods
estimated value of the goods in Canada
detailed description of the goods
country of origin of the goods
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weight, net and gross
You will also need the following documents:
o Two copies of the CCD, which will be provided by your carrier. Note: If you are carrying your own goods, and accounting for them at the time of release, then a CCD is not required.
o A paper copy of all import permits, certificates, licenses or documents required by other government departments (OGDs) and agencies (or an electronic copy for EDI participants with OGDs).
o Proof of origin, when necessary, i.e. Form A - Certificate of Origin.
Other Documentation Requirements
Shipments also require a NAFTA Certificate of origin, which is documentation required to substantiate the origin of goods for import into Canada under the North American Free Trade Agreement.
Whenever THD is responsible for the customs clearance, and the product(s) qualify for a Special Duty Provisions, verify additional documentation requirements with The Home Depot’s Customs broker.
Post-Entry Documentation Requirements
Customs, other government agencies, or The Home Depot’s Global Trade Services or Import Accounting Departments may require more information, documentation or explanations about the shipment after the goods have been imported.
More Information
If you have Canadian Customs issues or questions, please contact Patrick Smith, Customs & Cross Border Operations Manager @ The Home Depot Canada or our Customs Broker.
Home Depot Canada: Telephone: 416 742-9306 extension: 498
The Home Depot email contact is: [email protected]
11.2 Customs – Supply Chain Security
With the increased threats caused by global terrorism, THD participates in the United States’ Customs–Trade Partnership Against Terrorism (C-TPAT) and has implemented a supply chain security program for all shipments entering its network. Other steps include strengthening internal security measures and requiring suppliers to meet security standards. Suppliers are required to have a written security plan. THD reserves the right to review the security plan and execution at each supplier shipping point. Inadequate security measures will jeopardize the business relationship. The supplier community is strongly encouraged to exceed The Home Depot’s minimum security standards, but THD reserves the right to address these additional security measures with the supplier on a case-by-case basis.
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Trailer / Container Security
The following was developed based on the C-TPAT standards. Suppliers must have a container/trailer stuffing procedure in place preventing the unauthorized placement of items and/or persons into the container/trailer. To prevent unauthorized access and/or manipulation to THD containers/trailers, supplier representatives must secure all containers and trailers with a high security seal.
Prior to loading, supplier representatives must perform a 7-point inspection on containers/trailers. In addition to testing the reliability of the locking mechanisms, the following structures are examined:
Front Wall Left Side Right Side Floor
Ceiling/Roof Inside/Outside doors Outside/Undercarriage
In addition, prior to trailer loading, tractor/trailers require a 17-point inspection covering the locking mechanisms and the following items:
Bumper Engine Tires Floor
Fuel Tanks Cab/Storage Compartments
Air Tanks Drive Shaft
Fifth Wheel Outside/Undercarriage Floor Inside/Outside Doors
Side Walls Ceiling/Roof Front Wall Refrigerated Unit
Exhaust
11.3 Factory/Warehouse Physical Security
The Home Depot also requires our Suppliers to meet certain minimum security standards.
Suppliers shall have and comply with processes and procedures to keep unauthorized items or persons from being placed into shipments destined for The Home Depot or any of its Subsidiaries. Accordingly, Suppliers should have a written security procedure plan that addresses as a minimum the standards listed below.
The Home Depot reserves the right to review the Supplier’s security plan and implementation at each factory/warehouse from which merchandise is shipped. Suppliers will jeopardize their relationship with The Home Depot if they have inadequate security measures at the facilities used for The Home Depot production.
The standards set forth below provide the basic minimum requirements that all suppliers must meet in order to conduct business with The Home Depot.
However, The Home Depot recognizes that there are differing businesses environments in which each supplier operates, which may require the supplier to implement security measures that exceed The Home Depot minimum standards. The Home Depot will address these additional security measures with the supplier on a case-by-case basis. All suppliers are strongly encouraged to exceed The Home Depot’s minimum standards and to promote continuous improvement throughout their facilities.
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Factory/Warehouse Physical Security
All buildings should be constructed of materials, which resist unlawful entry and protect against outside intrusion Physical security should include:
o Adequate locking devices
o Adequate lighting
o Perimeter security
Suppliers must have communications systems in place to contact internal security personnel as well as local police where security problems or illegal activities are suspected or detected
Factory/Warehouse Access Controls
Suppliers must have security in place, which prevents unauthorized access to all shipping/loading docks and cargo areas. The Supplier's access controls should include:
o Positive identification of all employees, visitors and vendors and Procedures for challenging unauthorized/unidentified persons.
Suppliers should utilize buildings designed to secure contents. Security features must include adequate locking devices, lighting, perimeter security, and internal/external communication systems.
Factory/Warehouse Personnel Security
Subject to local law, suppliers must conduct pre-employment screening involving background checks and interviews.
Factory/Warehouse Education and Training Awareness
All employees are expected to receive training under a security awareness program focusing on threat awareness and supply chain security.
Information Technology Security
Suppliers must possess documented IT security policies and provide the corresponding employee training. Users should access automated systems through individually assigned accounts requiring periodic change of password.
Third Parties
The supplier will use all commercially reasonable efforts to ensure third parties utilized in manufacturing and/or transportation meets all THD security requirements.
Where a Supplier does not exercise control of manufacturing or transportation of goods destined for delivery to The Home Depot; Supplier agrees to use commercially reasonable efforts to ensure that its suppliers and transportation providers implement such recommendations.
On-Site Reviews
To ensure proper implementation of, and compliance with, the standards set for herein; The Home Depot reserves the right to undertake affirmative measures, such as unannounced on-site visits to Supplier’s factories. The costs associated with the assessment will be charged back to the Supplier.
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Home Depot Security Requirements for Imports from High-Risk Locations
THD monitors global security developments and categorizes countries according to risk levels. The Home Depot reserves the right to select third party security contractors for suppliers doing business in high risk locations. The supplier is obligated to enter into a contractual relationship with the THD security vendor of choice.
THD recognizes that contract only after the third party security vendor and supplier have signed the agreement and a copy sent to THD Global Trade Services Manager. The supplier bears all responsibility for payment and remittance terms are 45 day net. The Home Depot will establish the vendor’s audit schedule, provide necessary paperwork, and organize site visits to the supplier’s facilities and port of loading. The security vendor will submit to THD all audit records and/or security documentation regarding the supplier. Any deviation from these security requirements will result in an “Audit Failure.”
Personnel Security
To the extent allowed by local law, Suppliers must conduct employment screening, including background checks and interviews of all prospective employees.
Factory/Warehouse Education and Training Awareness
Suppliers must have or develop a security awareness program, which focuses on threat awareness and supply chain security. All supplier employees must receive training under such a program.
Corrective Action
If it is determined that a particular factory utilized by a supplier for the manufacture of merchandise for The Home Depot or any of its Subsidiaries is in violation of these standards, The Home Depot reserves the right to take any appropriate corrective measures.
The Home Depot retains the sole and exclusive right to interpret and enforce these standards and reserves the right to select a third-party security vendor of our choice to contract directly with the Supplier.
The Home Depot will be responsible for all details regarding audits at the factory or port (including but not limited to providing the security vendor with an audit checklist, scheduling the date and time of the audit at the factory and/or port of loading, etc.)
The Home Depot must be provided with copies of all documentation provided by the third party security vendor to Supplier.
Supplier will bear all responsibility for providing payment to the third party security vendor in a timely manner (45 day net period). The Home Depot will not be responsible for payment to the third party security vendor.
More Information
For any questions about Supply Chain Security or assistance in developing or improving a security program, access the supplier portal. The foundation of the THD security standards, C-TPAT, is found at www.cbp.gov. The Home Depot email contact is [email protected]
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Transportation
12.1 General Instructions
This section has been developed for domestic, North American Suppliers who ship to Home Depot Canada, its subsidiaries and/or affiliates within Canada. It applies to all Suppliers regardless of their FOB terms.
All transportation costs, detention charges, storage fees or other expenses incurred by The Home Depot because of the Supplier's non-compliance with the terms and conditions of the Supplier Buying Agreement shall be charged to the Supplier.
Listed below are general instructions to follow when shipping merchandise to Home Depot.
Do not split POs between shipments. All cartons associated with one PO must be on a
single shipment.
All shipments must show the Purchase Order number on the Bill of Lading
All POs for all merchandising departments that are shipped LTL on the same day to the
same destination (THD store, DC, etc.) must be on a single Bill of Lading.
POs cannot be mixed in a carton or master carton/repack.
Multiple carton shipments must be numbered in the format: 1of 5, 2 of 5, etc.
A packing slip must accompany all shipments
All shipments MUST show the store number (e.g. The Home Depot Canada, 7040)
Expedited shipments: All priority shipment requests that require additional freight charges
over and above normal service (such as air freight or expedited-ground) must be
approved prior to shipping. Any expedited shipment coming from a vendor (inbound
shipment to The Home Depot) will require approval from The Home Depot Logistics
Department.
If the request for expedited shipment originates from a source other than a store (e.g.
merchant, host order, etc.) it will require approval from the “Senior Manager of
Transportation”
LTL drivers are required to assist with unloading. TL drivers are required to tailgate the
load.
The trailer seal must be intact upon arrival at Home Depot and Home Depot must confirm
it is intact.
Excess freight charges incurred by The Home Depot through unauthorized deviation from
these routing instructions will be charged back to the supplier
NOTE: Home Depot will not pay any accessorial charges on prepaid shipments. Any charges such as notification, storage, re-consignment, inside delivery, sorting/ segregating, etc. will be the sole financial responsibility of the Supplier.
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12.2 Terms and Responsibilities
The Home Depot Routing Guide is located at https://homedepotlink.homedepot.com > Log In > Business Operations > Transportation & Logistics > Home Depot Transportation (CAN). Suppliers are expected to adhere to the routing guide. Failure to adhere to the routing guide could result in loss of business with The Home Depot, cancellation or renegotiation of the Supplier Buying Agreement, or financial penalties.
All suppliers are expected to comply with the routing guide and urged to review the routing guide monthly to stay abreast of periodic updates.
Carriers are assigned to shipments based on characteristics such as ship from location, volume, and weight. Specific routing instructions for modes, locations and suppliers are available at https://homedepotlink.homedepot.com > Log In > Business Operations > Transportation & Logistics > Home Depot Transportation (CAN).
Freight Terms
The FOB terms are the contractual terms between a buyer and a seller that defines where title transfer takes place. All freight (prepaid and collect) for The Home Depot Canada is FOB destination. As such, if the supplier is shipping from outside Canada, it is the supplier’s responsibility to clear Canada Customs. See the section Customs Compliance for information on how to clear Canada Customs.
Collect
Definition
The Home Depot Canada arranges transport for collect shipments. A collect shipment is one in which the charges for transportation services, including special services rendered at the request of The Home Depot, or requested by the shipper for The Home Depot, are to be paid by The Home Depot.
Responsibilities
Suppliers that have collect freight terms are responsible for the following:
Load quality (see Shipping Guide in the sections Shipping Guide – General Merchandise and Shipping Guide - Bulk
Having goods ready for the pickup appointment
PO Accuracy - Each supplier MUST ensure the correct POs are loaded onto the correct carrier/trailer
Prepaid
Definition
The supplier arranges for the transportation for prepaid shipments. A prepaid shipment is one in which the charges for transportation services rendered at the request of the supplier, including charges for any special services performed at the request of the supplier, are to be paid by the supplier, including all demurrage charges.
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Responsibilities
Suppliers that have prepaid freight terms are responsible for the following:
Load quality
Booking receiving appointments for DC’s
Booking store delivery appointments (based on availability, first come, first served)
Paying the carrier for the transport of the goods, assessorial and demurrage charges
Carrier discrepancies and carrier claims
Carrier service level (on time for appointments and complete delivery)
Trailer positioning
Ensuring that carriers adhere to all provincial and national regulations that the shipment travels through. For details on provincial and national regulations, please consult the appropriate websites:
British Columbia http://www.gov.bc.ca/tran/
Alberta http://www.transportation.alberta.ca/
Saskatchewan http://www.highways.gov.sk.ca/
Manitoba http://www.gov.mb.ca/mit/
Ontario http://www.mto.gov.on.ca/english/index.shtml
Quebec http://www.mtq.gouv.qc.ca/portal/page/portal/accueil_en
New Brunswick http://www.gnb.ca/0113/index-e.asp
Nova Scotia http://www.gov.ns.ca/tran/
PEI http://www.gov.pe.ca/tpw/index.php3
Newfoundland http://www.tw.gov.nl.ca/
Nunavut - http://www.edt.gov.nu.ca/apps/authoring/dspPage.aspx?page=home
Yukon http://www.hpw.gov.yk.ca/
NWT http://www.dot.gov.nt.ca/_live/pages/wpPages/home.aspx
Canada http://www.tc.gc.ca/en/tc-main.htm
U.S.A http://www.dot.gov/new/index.htm
Ship Origin
All Suppliers regardless of freight terms (Prepaid or Collect) ship from the location specified in the Supplier Reference Agreement (SBA). If a change is contemplated, suppliers must seek approval eight weeks in advance of any change. Suppliers should complete the Supplier Ship Location Change Request Form and submit by email to:
Email: [email protected]
If the collect supplier fails to notify THD eight weeks before a permanent change in ship location, the supplier will arrange and pay for transportation until rate analysis and re-negotiation are complete for the new shipping location. Until negotiations are complete, THD retains the freight
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allowance. Unless it is physically impossible to ship from the SBA specified location, the supplier must continue shipping from the location specified in the SBA. If the supplier does not agree to terms, THD will assign a market rate collect allowance, payable by the supplier or re-assign to prepaid. The Home Depot transportation department will make this decision.
If the collect shipper has a temporary change in ship location, the supplier will arrange and pay for transportation until normal shipping arrangements resume. Until the normal shipping situation resumes, THD retains the freight allowance.
Shipping Documents Required
In all instances, the shipper must provide a copy of the BOL to the driver, carrier, and THD destination.
This information is duplicated on the Ship Notice (ASN). Certain transportation modes require additional BOL elements. In addition to the standard elements, full truckload Bill Of Lading list carrier, trailer number and seal number.
For details on Bills of Lading and ASN’s, please see the section Shipping Guide – General Merchandise.
For complete ASN requirements and EDI transmission guidelines refer to https://homedepotlink.homedepot.com > Log In > Business Operations > Electronic Data Interchange (EDI) > Merchandise Suppliers (CAN) and Carriers.
12.3 Transportation Management System (TMS)
For detailed information on TMS visit: https://homedepotlink.homedepot.com > Log In > Business Operations > Transportation & Logistics > Home Depot Transportation (CAN) > Canada TMS Vendor Guide. The Transportation Management System (TMS) is a powerful tool that shipment planners, vendors, and carriers use to manage inbound transportation (vendor to The Home Depot facilities). The driving purpose behind the system is to optimize utilization of all fleet and carrier assets across the network. The system dynamically links all inbound and outbound movement to eliminate empty miles, reduce expense, and improve service. The below information applies to collect vendors that have been contacted and are currently on-boarded to TMS: Key Points: The Transportation Management System (TMS) is a tool that HD truckload planners, vendors, and carriers use to manage inbound transportation (vendor to The Home Depot facilities)
TMS works in parallel with the Electronic Data Interchange (EDI) process for a number of transportation activities
TMS uses a web interface that provides visibility to the progress of orders and shipments with a high degree of control of each process
Vendors are required to mark POs Ready to Ship (RTS) for the following:
All DC inbound shipments – LTL & TL shipments that are destined to a Home Depot Canada DC or Crossdock.
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12.4 Routing Guidelines - Prepaid Vendors
Shipments originating from domestic/USA to Canadian Stocking Distribution Centres (SDC)
Notice required for inbound appointment:
From Domestic: no less than 1 business day
From USA: no less than 2 business days
o The packing slip/bill of lading must be forwarded to 7029 at [email protected] with indication of expected arrival time as soon as the load is ready for pickup by carrier.
o 7029 will then create an inbound shipment number for the load. o Carrier will then contact SDC 7029 for an appointment via email
[email protected] or phone 905-265-4400 EXT 546 between the hours of 05:30AM to 02:00PM to book an appointment
o The carrier must reference the purchase order and bill of lading/packing slip number when booking an appointment.
12.5 Routing Guidelines - Collect Vendors
Shipments to all Stocking Distribution Centre (SDC)
From Domestic:
Notice required for inbound routing requests: no less than 1 business day
o TMS-enabled vendors - submit the Ready to Ship (RTS) through Vendor Portal
or EDI 753 by 11 AM cut-off time 48hrs prior to pick-up date. The reference pickup day should match the early ship date on the vendor’s purchase order.
o Vendor using Vendor Portal will obtain the routing instructions on the Web portal, while EDI vendors will receive the routing instructions from THD Canada via EDI 754
From USA:
Notice required for inbound routing requests: no less than 2 business days
o TMS-enabled vendors - submit the Ready to Ship (RTS) through Vendor Portal
or EDI 753 by 11 AM cut-off time two business days prior to the pickup date. The reference pickup day should match the early ship date on the vendor’s purchase order.
o Vendor using Vendor Portal will obtain the routing instructions on the Web portal, while EDI vendors will receive the routing instructions from THD Canada via EDI 754
o Carrier to arrange delivery appointment in TMS via Inbound Appointment Scheduling (IBAS)
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Shipments to all Cross Docks (XD) sent to HD Stores
From Domestic
Notice required for inbound routing requests: no less than one business day o Vendor needs to send the routing request form to
[email protected]. o TMS-enabled vendors - submit the Ready to Ship (RTS) through Vendor Portal
or EDI 753 by 11 AM cut-off time two business days prior to pick up date. The reference pickup day should match the early ship date on the vendor’s purchase order.
o Vendor using Vendor Portal will obtain the routing instructions on the Web portal, while EDI vendors will receive the routing instructions from THD Canada via EDI 754
From USA
Notice required for inbound routing requests: no less than two business days o Vendor needs to send the routing request form to the appropriate email address.
See Appendix B: Routing Request Form o TMS-enabled vendors - submit the Ready to Ship (RTS) through Vendor Portal
or EDI 753 by 11 AM cut-off time two business days prior to the pickup date. The reference pickup day should match the early ship date on the vendor’s purchase order.
o Vendor using Vendor Portal will obtain the routing instructions on the Web portal, while EDI vendors will receive the routing instructions from THD Canada via EDI 754
o Carrier to arrange delivery appointment in TMS via Inbound Appointment Scheduling (IBAS)
Pick up appointments
All The Home Depot Distribution Centers and stores require inbound carriers to book appointments for receiving shipments. Suppliers that ship frequently to the distribution centers will be assigned a standing pickup appointment. If you do not have a standing appointment, contact The Home Depot Canada’s Transportation team to request a pickup appointment.
The Home Depot Canada Transportation team may contact you to revise the pickup appointment to improve the inbound flow of goods. The pickup date on the PO represents the earliest date that the goods will be picked up. The pickup appointment may be revised within a 2 day window. For example, if the original pickup date is Tuesday, then the transportation team may adjust the pickup date to be on Wednesday or Thursday of the same week.
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Inbound Load Appointments (Prepaid to Cross-dock Vendors)
Routing Request Form (RRF)
The Routing Request Form (RRF) is a form that vendors that ship to THD Cross Dock are required to populate and submit prior to shipping.
For detailed instructions how to fill out and submit an RRF, see Appendix B: Routing Request Form
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12.6 Small Parcel (Courier) Shipments
The Home Depot Canada chose United Parcel Service Inc. (UPS) as a primary partner for all “collect” small package shipments. This includes USA to Canada and Domestic to Canada. What are Small Package Shipments?
Purchase orders weighing 200 pounds or less (combining all package weights) and
within the UPS size limitations.
Comprised of 10 or fewer cartons with accumulated cube dimension of less than 40 cubic feet
A shipment where the actual weight of any single piece is not greater than 70 pounds.
Any large single package or shipping unit does not exceed 130” (as defined by (2 x Width) + (2 x Height) and does not exceed the maximum size of 165”
NOTE: Shipments exceeding the criteria for routing through the UPS network will continue to ship collect to THD with RRF notification along with LTL and TL shipments.
To ensure your organization is in compliance, or for account set-up and/or technical assistance, please contact Ramesh Dyal 416-433-9122 [email protected]
When shipping Small Parcel (Courier) the following guidelines must apply:
Operational Compliance Shippers should always utilize Ground delivery, unless authorized by a Senior manager
in Transportation or ECOM. Regardless of authorization, air services are not to be
utilized in cases where ground transit time is equal to or better than the stated air service
commitment. Ground transit times can be found on courier’s website.
Vendor packaging must conform to the published requirements of The Home Depot’s
core carriers. Vendors will be held responsible for all damage claims refused by carriers
because of poor or insufficient packaging.
Small parcel labeling requirements are per the standards of The Home Depot’s core
carriers. Additionally, all parcels must have a clearly visible purchase order and store
number on the shipping label, as well as marked “1 of n”, “2 of n”, etc. in cases where
a single shipment is comprised of multiple parcels.
All cartons shipped small parcel must contain a clearly marked packing list. If a
shipment is comprised of multiple parcels, EACH parcel must contain a packing slip
identifying the contents of that individual parcel and its relationship to the entire
shipment.
Multiple, smaller-size cartons (less than 20 pounds each) should be consolidated into
“repack” cartons whenever possible to reduce freight cost and minimize “free astrays”
(i.e. split shipments) on delivery. Repack cartons should be marked as such with
“REPACK” clearly stated on the outside of the carton. “Banding” of cartons for
consolidation purposes is prohibited in The Home Depot network.
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Hazmat products shipped via small parcel are subject to government and carrier
restrictions. Please refer to the core carrier websites for further detail to ensure
compliance.
Small Parcel Data Requirements for UPS Shipments
The Home Depot Shipment Information Requirements for UPS Shipments
Order Destination
Data Element The Home Depot Store The Home Depot Customer
8 Digit Purchase Order Number
Ground Shipments
Eight digit The Home Depot purchase order number in the 1st eight positions (including leading zero where necessary) of the PACKAGE REFERENCE #1 field.
Same as The Home Depot Store Order Destination
4 Digit The Home Depot Store Number
Ground Shipments
Four digit Home Store number (ordering store) in the 1st four positions (including leading zero where necessary) of the PACKAGE REFERENCE #2 field.
Same as The Home Depot Store Order Destination
Company Name Ground Shipments
The Company Name format must include the store number; however, a specific format is not required.
Ground Shipments
The Customer Name must be preceded by HD (ex. HD - John Smith)
Note Suppliers may use additional character spaces available beyond the required spaces (i.e. 1-4 for store number and 1-8 for PO number) for their own purposes if necessary for UPS. Content extended beyond the required HD information should be separated by either a dash (-) or hyphen (/). For example, if you need to include your own order number (ex. “123456”) in the same field as our store number (ex. “1111”), the appropriate formatting would be “1111-123456”.
12.7 Routing Guidelines - Imports
Policy
All shipments must be arranged through the Home Depot’s appointed global third party logistics providers also known as Origin Cargo Managers (OCMs). OCMs are contracted by The Home Depot (THD) and have the responsibility for monitoring and managing transportation of all import purchase orders, training suppliers, providing shipping information and forwarding documents according to THD requirements
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Origin Cargo Managers (OCMs)
Strategic Account Contact by Geographic Region
Origin OCM
China
Damco
(re-branded from Maersk Logistics)
Reade Kidd
Phone: +1.770.433.8211 ext 83285
Fax: 770.384.3037
Australia
Europe
Middle East
South America
Asia (except China, including Taiwan)
Expeditors International
Greta Flynn
Phone: +1.770.991.9333
Fax: +1.201.865.1673
Mexico Unyson Logistics
Richard Dixon
Phone: +1.888.700.2170
All shipments and documents must adhere to customs regulations and requirements of both country of export and country of import
THD Import Terms of Sale
Shipment terms define the financial and legal obligations of the parties involved in the import transaction. Listed below are the different shipment terms listed in the Supplier Buying Agreement. Depending upon which shipment term is agreed upon with your Product Development Merchant, or as otherwise stated in writing and signed to by both parties; your company and Home Depot must follow the obligations for the negotiated shipment term as shown below:
FCA—Free Carrier Named Carrier's, Consolidator's, or Freight forwarder's location in the country of exportation
Goods are delivered and the export is cleared to the buyer at an agreed upon Carrier's yard/port, Consolidator's, or Freight Forwarder's location in the country of exportation.
These rules apply to the sale:
The Supplier:
Is obligated to pay for foreign (origin) inland dray to the Carrier's, Consolidator's, or Freight forwarder’s location.
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Is obligated to pay for export customs duties, fees and taxes.
Is obligated to pay carrier port fees.
Is obligated to pay OCM standard fees as contracted by The Home Depot.
Is obligated to pay CFS receiving fees – if applicable
Home Depot:
Is obligated to pay any consolidation fees.
Arranges the international transportation from the Consolidator's dock or location in the country of exportation, selects the Carrier, and utilizes a Freight Forwarder.
Is liable at the Carrier's, Consolidator's or Freight Forwarder's location.
Is obligated to pay the international freight charges.
Is obligated to obtain a marine cargo insurance policy, pay for the insurance premium, and file any claim.
Is obligated to be the importer of record in the country of importation, and pay duties, fees and taxes upon the importation of the goods.
The term FCA is to be used where Home Depot takes delivery of the goods at any location
other than the seller’s factory or warehouse. These include:
Ocean Carrier’s inland container yard
Ocean port
Airport
Consolidation warehouse
EXW—Ex Works, Ex Factory, Ex Mill, Ex Plantation, Ex Warehouse Named Factory Location in Country of Exportation
Goods are made available to the buyer at the seller's factory location in the country of exportation.
These rules apply to the sale:
The Supplier:
Is responsible for loading of container at factory.
Home Depot:
Is obligated to pay for foreign (origin) inland dray.
Is obligated to pay for export customs duties, fees and taxes.
Arranges the international transportation from the factory in the country of exportation, selects the carrier, and utilizes a Freight Forwarder.
Is liable at the origin factory dock location.
Is obligated to pay the international freight charges.
Is obligated to obtain a marine cargo insurance policy, pay for the insurance premium, and file any claim.
Is obligated to be the importer of record in the country of importation, and pay duties, fees and taxes upon the importation of the goods.
DDP – Delivery Duty Paid
Named Place of Destination in Country of Importation
Goods are delivered to the buyer at an agreed upon place of destination in the country of
importation and cleared through customs by the seller. These rules apply to the sale:
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The Supplier:
Is obligated to pay for foreign (origin) inland dray.
Is obligated to pay for export customs duties, fees and taxes.
Arranges the international transportation from the factory in the country of exportation, selects the Carrier, and sometimes utilizes a Freight Forwarder.
Is obligated to pay the international freight charges.
Arranges and is obligated to pay for domestic (destination country) inland dray to the named place in the country of importation, if the named place is other than an entry port or point.
Is obligated to obtain a marine cargo insurance policy, pay for the insurance premium, and file any claim.
Is obligated to be the importer of record in the country of importation, and pay duties, fees and taxes upon the importation of the goods.
The Home Depot:
Is liable at the destination place in the country of importation. Arranges and is obligated to pay for domestic (destination country) inland dray from the port or place of destination in the country of importation to the final destination, if the named place is other than the final destination.
The term DDP is to be used where Home Depot takes delivery of the goods at any location in
the destination country. These include:
Ocean port
Airport
Overland Border Crossing (i.e., Laredo, TX)
Home Depot Distribution Center
Procedure
Cargo Delivery
EXW suppliers must have the PO completely produced, completed Pre-Shipment inspection and ready to be loaded into the trailer/container for pickup at factory, no later than 1 calendar day before the Early Ship Date (ESD) on the PO. OCMs will provide the pick up date to suppliers based on THD requirements
FCA suppliers must have the PO completely produced, completed Pre-Shipment inspection and ready to be loaded into the container for delivery to the origin port, no later than 1 calendar day before the Early Ship Date (ESD) on the PO. OCMs will provide the delivery date to suppliers based on THD requirements
Timing standards are detailed in Supplier Shipping Guidelines provided locally by The Home Depot’s (THD) OCM
If the supplier chooses to deliver cargo before the ESD on the PO, the supplier must request approval to do so from THD’s OCM. The supplier will be responsible for all costs that may occur for early delivery, including but not limited to, storage and other fees.
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Booking
Suppliers are required to book all POs with THD OCMs no earlier than 21 calendar days and no later than 14 calendar days prior to the Early Ship Date (ESD) stated on the purchase order. Any bookings or booking revisions submitted after the 14 calendar days’ requirement will be subject to an expense offset.
o As an exception to the 14 calendar days’ requirement, POs with Mexico as the country of origin must be booked no later than 7 calendar days prior to ESD. Any bookings or booking revisions for POs with Mexico as the country of origin submitted after the 7 calendar days’ requirement will be subject to an expense offset.
o POs cut less than 21 calendar days prior to ESD will not be subject to an expense offset for late booking.
OCMs will make arrangements with THD’s contracted carriers. OCMs will confirm booking with supplier once carrier confirms booking and space.
All shipments must be booked as instructed within the Supplier Shipping Guidelines provided by OCMs for each country of export
Damco – China
Expeditors International – Australia, Europe, Middle East, South America and Asia (except China, including Taiwan)
Unyson Logistics - Mexico
Transport Mode
Full container load (FCL) and truckload – shipments must be delivered to named port
Consolidated shipments – shipments must be delivered to CFS warehouse
Air shipments – procedures provided when arrangements for air freight are made
Rail Shipments – designated yard
Delivery
Late shipments – a shipment is “late” if the supplier does not deliver the cargo to the port on or before the delivery date. The OCM will provide the supplier the date cargo must be delivered to the port
If delivered to the port after the OCM-advised delivery date, THD reserves the right to refuse any shipment. The supplier is responsible for any additional costs incurred
THD reserves the right to refuse any shipment if it is delivered to the port after the OCM advised delivery date. Any additional costs incurred because of late shipments will be charged back to the supplier. Delivery is based on the terms of sale, as defined below:
FCA terms: Suppliers are required to deliver a loaded container prior to or on the delivery date provided by THD OCMs. The OCM will provide a delivery date to the supplier once a confirmed carrier booking and shipping order is received from THD’s nominated carriers. Suppliers will be subject to an expense offset if the container is delivered after the necessary delivery date given by the OCM. Suppliers will also be subject to an expense offset if they request an ESD revision more than 2 business days after PO creation
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EXW terms: Suppliers are required to load containers or trailers on the confirmed loading date as defined by the OCM. The OCM will provide a container loading date to the supplier once a confirmed carrier booking and shipping order is received from THD’s nominated carriers. Suppliers will be subject to an expense offset if the container is not loaded on the specific loading date. Suppliers will also be subject to an expense offset if they request an ESD revision more than 2 days after PO creation
Expense offsets will not be applied if:
1. Delay is due to a logistics issue caused by the OCM and/or Ocean Carrier (e.g. Equipment Unavailability), or
2. Supplier requests a ship window change within 2 business days from the Purchase Order creation date.
Solid Wood Packaging Materials (SWPM)
All shipments and documents must adhere to customs regulations and requirements of both country of export and country of import
Shipping
Direct Import
The OCM is responsible to ensure that the cargo departs and arrives at the proper destination based on requirements set forth by THD
Forwarder’s Cargo Receipt (FCR)
The Forwarder’s cargo receipt will be released to the supplier only after cargo is delivered, all documents are received, and all origin charges are paid to the OCM
All applicable expense offsets incurred will be listed on the FCR. Do not present the FCR to the banks for payment if there are potential discrepancies with the listed offsets. Please address any DISC discrepancies locally with the OCMs and adhere to the escalation process if additional resolution support is required
Shipping Documents Required
The following documents are required for every shipment and must be submitted to the OCM within the timeline as set forth in the Supplier Shipping Guidelines:
Commercial Invoice
Packing List – must contain statement indicating the use or non use of solid wood packing materials
Container Manifest
Product Inspection Release Notice (unless specifically excluded from inspections by written notice from THD Quality Assurance Team)
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Master Pack Inspection Release Notice (unless specifically excluded from inspections by written notice from THD Quality Assurance Team)
Lacey Act Declaration for US imports (as applicable)
General Certificate of Conformity for US imports (as applicable)
Suppliers must submit all required documents no later than 3 business days after vessel sailing date. If documents are submitted after the 3 business day’s requirement, suppliers will be subject to an expense offset. Required documents are defined by country and port of origin in the Supplier Shipping Guidelines provided by the OCMs. Please reference the Supplier Shipping Guidelines provided by THD’s OCM’s locally in every country of origin for more specific details.
IMPORTS – 7029
o Imported Containers are listed on the Home Depot Imported Tracking Report,
which is updated daily by Home Depot’s customs broker UPS Canada o Containers are booked in based on arrival at the port in Vancouver for 7083 and
at the rail yard in Toronto for 7029
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Accounts Payable This section serves as a guide to map out current business processes with relation to Merchandise Payables for all Domestic and Cross-border Vendors supplying any Canadian Home Depot store with product for resale.
13.1 Invoicing Requirements
The Home Depot requires all merchandise suppliers to submit invoices electronically. Paper invoices are subject to a processing fee of $25.00 USD, $35.00 CAD. Electronic invoices can be submitted via EDI, or through the browser-based Sterling Web Forms. For further information, please see the Electronic Commerce Overview section of this document or contact [email protected] to initiate an electronic invoicing solution.
The Home Depot Canada expects all suppliers to be fully engaged and compliant with the requirements of the Business to Business (B2B) electronic exchange program within 90 days of becoming a supplier to The Home Depot.
If you are a supplier submitting paper invoices, please see the invoice example below, and follow guidelines listed to ensure inclusion of required information. This will prevent rejection of your paper invoice while you are in transition to an electronic solution.
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As an interim solution, paper invoices may be mailed to:
Mailing from Canada: Mailing from US:
The Home Depot The Home Depot
P.O. Box 900, Station D P. O. Box 105454
Scarborough, ONT MIR 5H8 Atlanta, GA 30348-5454 In order to pay suppliers promptly, The Home Depot Canada requires that all paper invoices MUST:
o Be in English (including all attachments)
o Not be a Pro-Forma invoice
o List the Accounts Payable Supplier Number (which is an 8-digit number, beginning with a 25 or 26) in the Bill to address area
o List unique Invoice Number and Date
o Include Purchase Order Number
o Include Department Number
o Include Carrier Name and PRO (PROgressive tracking number) # or Small Package Tracking #
o Include The Home Depot Store Number on the “ship to” address
o Include Payment and shipment terms (DOMESTIC & CROSS-BORDER ONLY)
o Include Ship date
o Include the proper address and location number where the goods are to be shipped
o State the purchase price of each item in the currency of settlement
o Total discounts and show them as a separate line item below the merchandise subtotal
o List all extraneous charges and credits (i.e. freight charges, taxes, fees, discounts, etc.) as separate line items, below the merchandise subtotal. The merchandise amount plus or minus extraneous charges and credits should be summed to an invoice net amount.
o State The Home Depot ARTICLE (SKU) number, corresponding supplier item or part number, and a complete and accurate description of the goods
o State the same unit of measure per ARTICLE (SKU) as shown on the purchase order
o State values accurately, including correct negotiated unit costs, extended costs, exact quantities shipped, and any assists provided to The Home Depot Canada at free or reduced cost
The goal of The Home Depot Canada is to pay all invoices on time and without manual intervention. Our invoice processing system is driven by:
o Purchase order number (valid 8 digit number)
o Facility or Store number (valid 4 digit number)
o Payables Vendor number (NOT Merchandise Vendor number)
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o Dollar amount
o Invoice number (10 digit limit)
o Invoice Date
o Valid shipment tracking information: SCAC (Standard Carrier Abbreviation Code) carrier code, and BOL (Bill of Lading) number, Pro number, or Small Package Tracking number
As required by Ministere du Revenu du Quebec and Revenue Canada, all taxes must be listed as separate summary line items on all items. Do not build taxes into the cost of the merchandise. The Home Depot Canada only pays QST (Quebec Sales Tax) and GST (Goods & Services tax) if the supplier has a QST and GST registration numbers and those numbers should appear on the invoice. Additionally, QST and GST must be reflected on all transactions to include the following:
Invoices
Returns to Supplier (RTV)
Credit or debit memos
Cheque payments
Rebate billings, payments, or credits
Advertising and marketing billings (when taxable), payments, or credits
The Home Depot Canada is not required to pay provincial Sales Tax (PST) on invoices for merchandise intended for resale. This ruling only applies to three provinces – Manitoba, Prince Edward Island and Saskatchewan.
If any of this information is incorrect or missing from the invoice, the AP system will not match and pay the invoice automatically. Further research will be required that might cause a delay in payment, creation of a chargeback or request for proof of delivery.
Best Practices
Ship Complete – Backorder shipments are only allowed for new store or special orders. Supplier inventory levels should not delay P.O. shipment. If an insufficient inventory situation exists, process the order with the available quantity on hand and reflect the actual quantity shipped on the Advance Ship Notice (ASN). Splitting purchase order numbers across multiple shipments is not acceptable for Direct To Store/Customer shipments. A new purchase order is also required for additional product necessary to fulfill a customer order or where a replacement order is required.
Do Not Ship Substitutions – Substitutions and unapproved products should not be shipped as they will not be paid. Prior Written Merchant approval is necessary for all substitute products shipped to The Home Depot Canada. The Home Depot Canada will not pay for shipment of substituted or unapproved products. Supplier is responsible for any expenses incurred by The Home Depot Canada that result from the receipt, handling, and return of such product. The supplier must secure approval before enacting changes to previously approved product.
Complete Bill of Lading - If multiple purchase orders are combined on a bill of lading, list each purchase order number and respective carton count. The Home Depot Canada and its core carriers require an EDI VICS (Voluntary Inter-industry Commerce Standards) standard BOL. Refer to the Routing and Shipping guide. The following information must be duplicated on the ASN.
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Generally a Bill of Lading has or contains the following:
Unique, non-repeating numeric identifier
Relevant purchase orders numbers
Applicable store and distribution facility numbers
Shipment origin and destination address
Number of handling units tendered to the carrier
Commodity description with weight
Freight terms
Pallet Labeling - If shipping pallets, ensure the pallets are marked with the appropriate purchase order number and number of cartons, on each pallet, for each purchase order.
Packing Lists & Carton Labeling - use packaging lists, sub-packing lists when appropriate, and clearly label all cartons.
Tracking Numbers - Include carrier information on the invoice: Carrier name (SCAC) and tracking number, or BOL or PRO number must be listed on the invoice.
Air Freight – Air freight must be approved before shipping. For appropriate approver, refer to the Routing and Shipping Guide.
Purchase Order Number Validation - The Purchase Order number will always be 8 digits and will begin with a 9, 6 or 3.
One Invoice per PO - You must submit one invoice per Purchase Order, per shipment, per store.
Purchase Orders Accuracy – purchase orders should be reviewed for accuracy in costing, prior to shipment. Successful fulfillment of a purchase order constitutes acceptance of the cost on the purchase order. Upon any agreed upon cost changes, or at a minimum, every quarter, suppliers should request a 530 or 531 SKU report to verify that any cost changes have been updated in The Home Depot system. Lack of verification of cost changes could result in pricing chargeback.
Special Order - The cost of special orders must be confirmed at the time the order is placed to avoid any chargebacks. If a cost discrepancy occurs, or if a purchase order has no cost, suppliers must contact the store expeditor by end of the business day following date of receipt of the special order to obtain a corrected hard copy of the purchase order, prior to shipping or invoicing.
Shipping Errors - It is The Home Depot Canada’s policy to not pay for supplier shipping errors resulting in duplicate shipments, shipments of quantities greater than ordered, and mis-shipments.
Invoice Chargebacks - The Home Depot Canada may make a deduction against a paid invoice. Reasons for the deductions are discrepancies between invoice and The Home Depot Canada PO, as it relates to price, terms, or conditions, as agreed upon in writing by the Merchant or in the Supplier Buying Agreement, or Terms and Conditions. Discrepancies between invoiced quantities and The Home Depot Canada received quantities may also result in a chargeback. Procedures for account reconciliation are to be followed for any disputed chargebacks.
A notification of chargeback deduction will be sent electronically via the EDI 812 (if supplier has been invited to participate in the EDI Chargeback and RTV Program) or if previously mailed, the chargeback notification can be located on the Merchandise Payables Self Service Portal (MP-SSP).
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If you are EDI capable for invoices and your notifications are not available on the SSP, then you must contact the B2B/EDI team to complete the testing process. No paper documents will be provided.
If a supplier has EDI capabilities for the invoice (810), you are required to also receive the EDI 812 for chargebacks. Contact [email protected] to initiate testing and implementation.
Pricing
The Home Depot Suppliers agree to participate in any and all initiatives designed to un-bundle costs for the purpose of improving supply chain performance and supporting the migration to a DC network. These initiatives will include a requirement to provide:
Freight cost at the purchase order or shipment level for all prepaid shipments to The Home Depot.
Handling and co-ordination costs
The Home Depot Canada may decide to utilize the US and Mexico supply chains to move product to the Canadian network.
Request Address Changes
To make changes to your remittance address or Accounts Receivable information, please call 770-433-8211, ext. 15741, or email [email protected]. Please include your Company Name, Phone Number, Accounts Payable Supplier Number, and a description of the changes.
13.2 Payment Policy / Terms
Payment Policy (Domestic Suppliers)
The Home Depot’s payment policy is based on either receipt of goods or receipt of invoice, whichever is latest. If this procedure differs from suppliers’ normal policies, it is the suppliers’ responsibility to inform their Accounts Receivable Department so as to avoid payment discrepancies.
Submit one invoice per purchase order per shipment per store/DC. Payment is made per the terms stated on the purchase order.
Suppliers must include their Accounts Payable Supplier Number (issued by The Home Depot) in the “BILL TO” address. This Accounts Payable Supplier Number may be different from the Merchandising Number on The Home Depot purchase orders. Multiple “pay to” addresses can affect The Home Depot’s Accounts Payable System. Therefore, to ensure timely payment, suppliers must supply one “Pay to Address” on all invoices.
All extraneous charges and credits (i.e. freight charges, taxes, fees, discounts, etc.) must be listed as separate line items. The merchandise amount plus or minus extraneous charges and credits should be summed to an invoice net amount.
When multiple discounts are involved, it is The Home Depot’s policy to combine the discounts and deduct the total from the gross amount of the merchandise on the order.
For suppliers doing business in Canada, invoices must clearly state in what currency payment should be made (“Canadian” or “U.S.” funds). Payment will be based on the currency, exchange rate, and payment terms that are negotiated by the Merchant.
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Payment Terms
Payment Terms as negotiated on the Corporate Form of the Supplier Buying Agreement will define when the Letter of Credit (LC), Open Account (OA), EFT or check will be released for payment. Example: negotiated payable days + bill of lading date = payment due date.
Electronic Funds Transfer
If your company would like to receive your funds electronically, contact the HelpDesk at 877 316 7475, to initiate the EFT application and testing process.
Pallet Charges
If a supplier charges for pallets, the price and details must be negotiated with the appropriate Merchandising contact. If pallet charges have been negotiated, they must be listed on the invoice as a separate summary line item. The Home Depot stores return pallets back to suppliers at the time of the next shipment and create an RTV for the pallet credit. Do not net the pallet credits against the pallet charges.
New Store Order Policy and Terms
The Home Depot Canada defines a New Store Order as any order placed to support a new store. The discount is applied based on the agreed upon terms and conditions in the Supplier Buying Agreement.
The Home Depot Canada asks all suppliers for new store discounts that are applied “over and above” the allowances, payment terms, discounts, and terms agreed upon for existing stores and markets.
The total New Store Order discount percent is added to all other discounts and is applied to the total amount ordered regardless of completeness of shipment.
If the New Store Order does not arrive before the grand opening of the new store, the discount will be applied when the order arrives at the store.
If a supplier does not have the ability to participate in the store's grand opening, the discount will be taken on the stocking/first order into the store up to six months from the store's opening date.
Orders routed through the crossdock or other distribution facility, and shipped to the new store to support the store's opening are due the discount. New Store Orders must be shipped complete and must arrive on the date stated on the purchase order. Contact the Merchant before the scheduled date of shipment if you are unable to meet these requirements.
Receiving/Payment Based on Tender Type
It is The Home Depot Canada’s policy to receive merchandise as stated on the bill of lading/delivery receipt (pieces, cartons, racks, bundles, or pallets). The bill of lading must detail multiple tender types. If The Home Depot Canada is tendered cartons and signs the carrier’s delivery receipt as the stated number of cartons received, any piece shortages will be charged back to the supplier as concealed. If The Home Depot Canada is tendered pallets and signs the carrier’s delivery receipt as the stated number of pallets received, any piece or carton shortages will be charged back to the supplier as concealed. Boxes shipped via small parcel delivery are treated as carton tendered.
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13.3 Invoice Reconciliation/Dispute Process
Account Reconciliation
The following three steps are required supplier actions for proper account reconciliation to occur between The Home Depot Canada and supplier: Identification, Root Cause Analysis, and Resolution. After reconciling items have been identified, the Merchandise Payables Self Service Portal (MP-SSP) provides suppliers a secure and flexible way to submit disputes. You also have the ability to view invoice payment details, charge back listings, and communicate regarding your dispute package status. Registration for the Merchandise Supplier Dispute Resolution Portal
Register or log into your account by accessing the Merchandise Supplier Dispute Resolution Portal URL (https://my.directcommerce.com/Login.jsp?customer=homedepot). Follow the instructions below to register for the Merchandise Dispute Resolution Portal:
The Credit Manager of your company must register for the new Dispute Resolution Portal and administer the access for additional team members. Two (2) AR team members MUST maintain administrator rights to successfully manage account access for your company. Click on the URL https://my.directcommerce.com/Login.jsp?customer=homedepot
1. Bookmark this URL so you can come back to it in the future.
2. Click on the link under the words "Not registered?”
3. Enter your Pvendor number, located on a remittance advice, on the registration screen.
4. Use a paid remittance advice that is dated within the past twelve months. Select an invoice line item on the remittance advice. Enter the invoice number, EXACTLY as it appears on the remittance advice, including any leading zeros or alpha characters.
Note: DO NOT ATTEMPT TO REGISTER WITH AN UNPAID INVOICE.
5. Enter the invoice date from the remittance advice (not from an invoice copy).
6. Enter the Purchase Order number.
7. Enter your email and user information as directed in the registration screens. After you have successfully registered, you will receive a confirmation email with your user name, temporary password and a Quick Start Guide.
Review all Help Documentation, available on the Home Page of the MP-SSP to ensure that you are fully knowledgeable of all features of the portal.
Features of the MP-SSP
View and download your list of paid invoices.
Submit a Dispute for any open invoices or chargebacks.
Provide Carrier Tracking number for listed Core Carriers, in lieu of POD (proof of delivery).
Monitor the status of submitted items.
Send dialog messages to the associate assigned to your account.
View the complete history of all dialog and activity for a submitted item.
Request an Open Items Report (cash requirements report).
Request an Exceptions Report.
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Reconciliation – Critical First Steps
Be aware of your Payment Terms and what they mean. Having a good understanding of your terms will validate your expected receipt of payment. For example, if terms are dependent on Goods Receipt (GR) Dates, lead times could impact due dates.
Post payment remittance timely-It is not efficient to follow up on invoices too proactively. Allow at least 7 days from your invoice due date for an invoice to appear on a remittance.
Obtain open items (cash requirements) and/or exceptions reports from the MP-SSP. This listing will provide visibility to invoices successfully processed and scheduled for payment on a future due date. Assists in reconciling due date discrepancies.
Reconcile your open AR - Ensure that you have reduced your open AR by reconciling paid and scheduled invoices.
Research and apply credits - Take the time to perform your own research on issues and apply appropriate credit to clear discrepancies.
View details of paid invoices on the MP-SSP. Additional research can be performed by logging into the portal and using Advanced Search (contains many options to filter and define a search) to locate invoices.
Timely Identification of Reconciling Items
It is The Home Depot Canada’s policy to resolve all open invoices and discrepancies within twelve months. In the event that an invoice is not paid or is paid for an amount different than the amount billed, suppliers must notify The Home Depot Canada in a timely manner, by submitting the dispute on the MP-SSP. The timeline for submitting reconciling items is based on shipping, invoice or deduction date, whichever is later. Payment requests must be submitted via the Merchandise Payables Self Service Portal (MP-SSP) within the required timeline and with appropriate documentation. Timely identification of reconciling items is required and strictly enforced to ensure optimal efficiency and effectiveness in the account reconciliation process.
Root Cause Analysis
As reconciling items are identified, it is important that suppliers use all available information to identify the root cause of the issue. Timely identification of the root cause is required to ensure optimal efficiency and effectiveness in the ongoing payment process and the supplier’s receivable process. If your company is finding itself frequently contacting The Home Depot Canada to dispute payment issues, please spend time to track trends and identify root causes. The Home Depot Merchandise Payables department is happy to partner with companies to help rectify reoccurring issues. However, the process is more efficient when time spent addressing root causes has been made prior to any conference calls or in-person meetings have been requested.
Review all SBA Change Forms, updates to BEAR (Back-end Automated Receiving) Policies, and verbal agreements for deductions with your Sales Department. Verify accuracy of EDI mapping for all fields. These are all possible reasons for a deduction discrepancy.
Resolution
Once the reconciling item(s) has been identified and root cause analysis performed, steps towards resolving the issue must be taken. Repayments for issues identified as supplier error will not be addressed until the root cause has been corrected.
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If you determine that a dispute is necessary at this point, you can submit the dispute for invoice chargeback or unpaid invoice with Tracking information or Proof of Delivery (POD). Once submitted, you can then monitor the package status within the portal, by using the dialog message feature. Submit reconciling items via the Merchandise Payables Self Service Portal (MP-SSP).
Issues impacting large numbers of invoices MAY NOT be submitted individually on the MP-SSP. Provide ONE example of the issue and the Accounts Payable team will provide the supplier with instructions to handle, on a case by case basis. Use the dialog feature to clearly state the issue and the research steps you have taken.
Appropriate supporting documentation may be requested for past due invoices, pricing discrepancies, additional billings, shortages, trade discount discrepancies.
Timeline for Submitting Reconciling Items to Accounts Payable
The Home Depot Canada will address only reconciling items that are submitted with the 12 month timeframe. MP-SSP disputes are processed in the order in which they are received (first in/first out).
Please allow 10 to 14 working days for disputed items to be resolved. Suppliers can follow the progress of their dispute packages on the Merchandise Payables Supplier Self Service Portal. Any deviation from the reconciliation procedures will result in delays in processing time and/or denial of payment. If the documentation provided is inconclusive to support payment, The Home Depot Canada may deny payment and/or request additional supporting documentation which may need to be submitted.
Discrepancy Types and Required Documentation for Each Type
Full Open Invoices with Proof of Delivery:
Tracking information must be provided on your EDI invoice. If you are posting invoices in the SSP, and providing tracking information, review your EDI invoice for required segments.
Invoice
For core carriers, only the valid tracking number is required. Choose the carrier from the drop down box and provide BOL, Pro Number, or Small Package Tracking Number.
For carriers not listed in the drop down box, Prepaid or Vendor Truck: Signed proof-of-delivery (POD) (Bill Of Lading and/or Delivery Receipt, depending on FOB [Free On Board] Origin or Destination terms).
Shortage Discrepancies
Shortage chargebacks can be found on the Merchandise Payables Self Service Portal (SSP) and a valid The Home Depot Canada tracking number is required for research purposes.
For core carriers, only the valid tracking number is required. Choose the carrier from the drop down box and provide BOL, Pro Number, or Small Package Tracking Number.
For carriers not listed in the drop down box, Prepaid or Vendor Truck: Signed and Valid Proof of Delivery (must show a discrepancy between tendered quantities and paid quantities for repayment consideration).
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Note: If the FOB point is destination, it is the supplier’s responsibility to file the claim with the carrier. The Home Depot Canada files claims on origin shipments only. Supplemental documentation supporting pieces tendered such as packing list, bill of lading, pick ticket, etc., showing the carton count and repacks, may be requested. Note: Reconciling items must not be submitted for shortages considered concealed as defined in Receiving/Payment Based on Tender Type.
Special Order Pricing Discrepancies
Invoice copy
Purchase Order reflecting invoice cost may be requested
To eliminate pricing chargebacks, resolve cost discrepancies with the store, prior to fulfilling the PO. Request a revised copy of the corrected PO be faxed to you.
Stock Merchandise Pricing Discrepancies
You must review all cost discrepancies with your merchant prior to submitting a discrepancy package. Request a 531 SKU detail report from the merchant to confirm pack size and cost.
Once a quarter, or when a cost change has been executed, contact your The Home Depot Merchant or Merchant Assistant to obtain the “531 SKU Detail” report for each of your Merchandise Vendor Numbers.
This action will synchronize cost, SKU, part number, UPC, and pack size for your company and The Home Depot Canada, thereby eliminating the instance of cost discrepancies, requiring research and follow-up.
Review the report with your Sales Department to ensure all details, such as pack size and cost, are accurate. Communicate any discrepancies to your The Home Depot Canada Merchant or Merchant Assistant.
Data accuracy is a key component to timely and accurate payments.
Since cost discrepancies usually affect large numbers of invoices, follow the guidelines below:
Provide ONE example of the issue and the Accounts Payable team will provide the supplier with instructions to handle, on a case by case basis.
Use the dialog feature to clearly state the issue and the research steps you have taken.
A spreadsheet may be requested.
Your Home Depot Canada Merchant will be engaged for any corrective action and acknowledgement.
Discounts
Review all SBA change forms and confirm terms with your The Home Depot Canada Merchant or Merchant Assistant, prior to submitting a discrepancy package.
Since discount discrepancies usually affect large numbers of invoices, follow the guidelines below:
Provide ONE example of the issue and the Accounts Payable team will provide the supplier with instructions to handle, on a case by case basis.
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Use the dialog feature to clearly state the issue and the research steps you have taken.
A spreadsheet may be requested.
Freight
Freight discrepancies cannot be submitted in the SSP.
Copy Requests
A notification of chargeback deduction will be sent electronically via the EDI 812 (if supplier has been invited to participate in the EDI Chargeback and RTV Program) or if previously mailed, the chargeback notification can be located on the Merchandise Payables Self Service Portal (MP-SSP).
If you are EDI capable for invoices and your notifications are not available on the SSP, then you must contact the B2B/EDI team to complete the testing process. No paper documents will be provided.
Partner with your own EDI team for any missing documents. RTV Discrepancies
See RTV Reconciliation and Dispute Process section of this document. RTV Proof of Return
See RTV Reconciliation and Dispute Process section of this document. Audit Policy and Monthly Statements
Audit Policy – The Home Depot Canada reserves the right to review all payable and receivable transactions for accuracy. The Home Depot reserves the right to deduct any overpayments or under-deductions from payments to suppliers. While it is The Home Depot Canada’s intent to complete such reviews in a timely manner, The Home Depot Canada reserves the right to address historical issues that The Home Depot Canada deems material.
Monthly Statements - The Home Depot Canada requires that a monthly statement be sent to include details as follows: send to: [email protected] OR
The Home Depot ATTN: Statement Audit - B10 2455 Paces Ferry Rd Atlanta, GA 30339
Send an electronic or paper report with all open items including: Invoices, Debits, Credits, Over payments, Unapplied Cash, etc.
Include all divisions of The Home Depot with which you do business including: The Home Depot, HomeDepot.com, The Home Depot Canada, Home Decorators Collection or The Home Depot Home Services.
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13.4 Correspondence
Account Payables Department Contact Information
The Financial Operations Call Center is the main contact should suppliers have any payment related questions regarding their The Home Depot account. The Call Center can be reached by phone at 770-384-2043 or by email at [email protected].
Send Monthly Reconciliation Packages and supporting documentation regarding past due invoiced, pricing discrepancies, additional billings, credits, past due invoices, claims, trade discount discrepancies or freight discrepancies or shortages to:
Accounts Payable Department # __
P.O. Box 105746
Atlanta, GA 30348-5746
13.5 Returned Goods
See the section Returns for details of returned goods handling.
RTV Best Practices
Follow signed RTV Agreement terms.
Disclose valid Return Goods Authorization (RGA) sequence identifiers for RTVs.
Read system alerts on the Merchandise Payables Supplier Self Service Portal (MP-SSP).
Disposition Options (“Return to Supplier”)
Suppliers agree to have RTV merchandise shipped to the Supplier’s designated return location. The Home Depot Canada will manage all transportation from the stores, through a centralized reverse logistics facility, to the Suppliers designated return location on a freight allowance basis rather than Prepaid & Add or Collect terms. The freight allowance will represent costs incurred by The Home Depot Canada to transport merchandise to the Suppliers designated return locations. The Home Depot Canada shall adjust the freight allowance as transportation rates increase.
As an alternative to the freight allowance, Suppliers will have the option to pick up merchandise at each individual The Home Depot Canada store utilizing their own transportation. If a Supplier elects to pick up merchandise directly from a The Home Depot Canada store, the Supplier will agree not to require an RGA (Returned Goods Authorization) or an Inspection on that merchandise covered by that RTV agreement. RGAs and Inspections will only be permitted on merchandise being picked up at a Reverse Logistics Facility. If a Supplier would like to pick up all RTV merchandise from each Reverse Logistics Facility utilizing their own transportation, a new RTV Policy agreement will need to be created.
Due to Department of Transportation and other state environmental regulations, HAZMAT merchandise will be ineligible to flow through a Reverse Logistics Facility. Suppliers of HAZMAT merchandise will need to select Supplier Truck as their freight terms, utilizing their own transportation to make pickups at the store level, or switch to a No Return policy.
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No Return Option (Previously “Destroy in Field”)
Suppliers agree they do not want RTV merchandise returned to their designated return locations, and The Home Depot Canada will determine how the merchandise is handled. The Home Depot Canada will choose the method of disposal including selling the merchandise for salvage on the secondary market, recycling the merchandise, or simply disposing of the merchandise. Any costs incurred through the handling or disposing of HAZMAT merchandise will be passed on to the Supplier. Self Service Policies
Merchandise covered by a Self-Service policy will not be affected by the Reverse Logistics Program. Out For Repair Policies
Merchandise covered by a Repair policy will not be affected by the Reverse Logistics Program. No Policy On File
If a Supplier does not have a policy on file with The Home Depot Canada, the Supplier shall be defaulted to the “No Return” Option. RGAs and Inspections
RGAs (with no inspection) must be obtained within two (2) business days from the time of request, otherwise items will be processed for credit and disputes will be denied.
Inspections must be completed within two (2) weeks from the time of request, otherwise items will be processed for credit and disputes will be denied.
RGAs and Inspections will not be allowed on RTV polices where the designated freight method is Supplier Truck and pickups are made at the individual store level. If pickups are made at a Reverse Logistics Facility, RGAs and Inspections will be permitted and will be conducted at the Reverse Logistics Facility.
Once an RGA is issued to a centralized facility, the supplier will not have the option to dispute the credit The Home Depot received. Acceptance and Agreement
Supplier shall acknowledge the terms of the RTV Policy Addendum above by January 7, 2011. By submitting this RTV Addendum, Supplier acknowledges and agrees that: (a) the terms and conditions of Supplier’s RTV Agreement are incorporated herein by reference; (b) this RTV Addendum will be deemed an addendum to and part of the RTV Agreement; (c) in the event of any conflict or discrepancy between the terms or provisions of the RTV Agreement and this RTV Addendum, the terms and provisions of this RTV Addendum shall control and govern. Restock Fees
It is The Home Depot Canada’s policy not to pay restocking charges for store or customer errors unless negotiated with the Global Product Merchant. Restocking fees are never applicable to mis-shipments or defective product. Any applicable restocking charges will be applied in the Account Payables system based on the negotiated agreement. Associates at the stores do not have the ability enter restocking charges into the system.
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If the supplier does not accept returns of non-defective merchandise, stores will take a markdown or try to sell the merchandise on the sales floor. There is no Destroy in Field for Credit policy option on Non-Defective Merchandise.
By accepting a Purchase Order, supplier acknowledges that some product defects cannot be detected until the product is installed by a customer or by one of The Home Depot Canada’s authorized Installers. Therefore, to satisfy the customer, it may be necessary to pay our Installers an extra charge and/or re-installation fee when such product defects become known.
Freight Charges
Supplier is responsible for both the gross cost of merchandise and all freight charges. Please note that Collect, Prepaid & Add and Supplier truck are the only return freight options available for shipments from a Home Depot Canada store back to the supplier. If you chose Prepaid & Add, small package shipments will be returned via The Home Depot Canada core carriers chosen by the state-to-state routing guide. Collect freight terms gives you the option to chose your carriers. If you do not specify a carrier, then the system will use the same carrier selection criteria as Prepaid & Add shipments. All RTV freight terms are Origin. Pallets
If a supplier charges for pallets, the price and details must be negotiated with the appropriate Merchandising contact. If pallet charges have been negotiated, they must be listed on the invoice as a separate summary line item. The Home Depot Canada stores return pallets back to suppliers at the time of the next shipment and create an RTV for the pallet credit. Do not net the pallet credits against the pallet charges.
Specifications for Credit Memos
In order to accurately determine the validity of Credit Memos, prevent erroneous deductions and enable suppliers to apply deductions appropriately to open receivables, the following information is required on all Credit Memo documents:
o Accounts Payable Supplier Number
o Purchase Order Number
o Original invoice number
o Department Number
o The Home Depot Store Number
o Credit Memo Date
o Credit Memo Number
o Credit price of each item in the currency of settlement
o Discounts totaled and shown as a separate line item
o State values accurately, including correct negotiated unit costs, extended costs, exact quantities credited
o RTV and RGA numbers (If applicable)
o Comments for any other pertinent Credit Memo information (If applicable)
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13.6 RTV Reconciliation/Dispute Process
Supplier Dispute Reconciliation
RTV Disputes may only be submitted via the Canada RTV e-Recon Template. There is an instructions page on the second tab which will provide guidelines. Email [email protected] to make inquiries and to obtain a tracking number.
To dispute an RTV deduction, follow these instructions:
Populate the e-Recon Template with all data for disputed items. All fields must be populated with data transmitted from the EDI 812.
Verify that all data is accurate. Invalid data will result in the rejection of the entire template.
Rejected templates due to errors must be corrected and re-submitted with a "NEW" dispute reference number.
All dispute templates must contain an RTV dispute type in the supplier reference number field and Excel file name. (e.g., Proof of return-POR123456).
One e-Recon sheet per dispute type.
A list referencing dispute types is listed below.
Email the e-Recon Template to [email protected] and you will receive a confirmation acknowledging receipt.
Include the file name and department number in the subject line of the email (ex.POR123456_Dept29).
Record the Supplier-Pkg-NBR of the e-Recon Template on the corresponding e-Recon Cover Sheet. (see #3 above) (This name should be the same as column B in the e-Recon Template).
Dispute templates are worked in the order received.
Any continuing disputes must be re-submitted based on regular FIFO (first in, first out) procedures, and given a new Supplier Package Number.
Account Reconciliation is subject to a 12 month resolution timeline, pursuant to the SBA Reference Manual.
All disputes must contain a RTV dispute reason type:
RTV Dispute Type Type Code
Buyback BB
Duplicate RTV DUP
Invalid RGA INV
Never Shipped/Cancellation NSC
Pricing PRI
Proof of Return POR
Restock Fees RSF
Shortage SHT
Substitution SUB
Wrong Address WRA
Wrong Policy WRP
Wrong Supplier WRS
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Notification of RTV Deductions
Should The Home Depot Canada process an RTV chargeback to your company, the chargeback information will appear on your EDI 812 electronic transmission data. A supplier who is not registered to receive RTV chargebacks via EDI 812 electronic transmission should register by emailing the B2B department at [email protected] to initiate testing. Electronic copies of RTV deductions are available weekly using the Merchandise Payables Self Service Portal for suppliers who are not candidates to participate in the EDI 812 program.
13.7 Out for Repair
Payment Information
It is company policy that Service Providers are set up as ERS (Evaluated Receipt Settlement), meaning payment is issued automatically upon completion of the service. Paper invoice copies are not accepted. If you are not currently set up to receive payments in this manner, please reach out to your merchant to be set up.
Disputes related to out for repair payments may be directed to [email protected].
13.8 Invoicing Requirements (Import Only)
Documentation for U.S. Customs Clearance and Payment
Import Commercial Invoices must contain the following additional requirements:
State the Incoterm and payment terms negotiated. They must match those shown on the Purchase Order State manufacturer's name, address and phone number.
If the supplier is the actual manufacturer, invoice must state, "We certify that we are the original manufacturer of these goods." If subcontractor is used, state the name of the subcontractor. International freight and/or insurance, if included in the commercial invoice amount, must be shown as line item amounts State details of the goods shipped, so that it is clearly stated which SKUs and the quantities shipped in a container and are for which purchase order. The POs should be shown is ascending order, with its associated container number. All SKUs shipped in that container/PO number combination must be shown underneath the container number in ascending order. State a breakdown by weight, value, or other necessary measurement of each component material per item (amount and percentage) State the country(s) of origin per U.S. Customs Regulations (per each item if various countries of origin apply) State only one Letter of Credit number per bill of lading and Commercial Invoice, if Letter of Credit is the method of payment include the Inspection Result Notice which verifies that the shipment has been inspected to The Home Depot covenant standards and passed before leaving the factory Forwarder’s Cargo Receipt (FCR) issued by The Home Depot appointed 3PL. Letter of credit documents must be sent to the supplier’s advising bank or The Home Depot's issuing bank. Open Account documents must be sent to The Home Depot’s issuing bank. Documents using direct payment method must be sent to:
The Home Depot International Payables Department
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Cumberland SCC, 4th Floor
2455 Paces Ferry Road
Atlanta, Georgia 30339-4024
USA
For direct payment terms, the "remit to" name and address on the Commercial Invoice must agree with the Supplier Buying Agreement. Failure to follow the above guidelines may result in delayed payment. Direct inquiries to:
Payments: The Home Depot International Payables Department
Telephone: (770) 433-8211, ext. 14307, 14324 or 87743
Fax: (770) 384-4334
Import Shipments
Import Shipment Reconciliation issues may NOT be submitted to the Domestic Reconciliation PO Box.
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Returns
14.1 Returned Goods
The returned goods policy determines how our stores handle merchandise that is defective or is determined to be a Supplier defect or error. Supplier-specific policies will be negotiated with Home Depot’s Global Product Merchant and documented in the SBA and in the Policy Capture Tool (PCT). Our Return to Supplier (RTV) system uses the PCT to assign a disposition for the product being returned to supplier.
When completing a Returned Goods Terms Worksheet (BEAR RTV), each active Merchandise vendor number (Mvendor number) must have a signed Supplier Level Policy that applies to all merchandises for a Merchandise vendor number. This is the standard RTV Policy Type. You may have a Supplier Level Policy and also submit separate worksheets if you have the need for exception policies based on class/subclass or geographic locations including Alaska, Hawaii, Puerto Rico and/or the U.S. Virgin Islands.
Supplier Freight Claims and Non-Stock Shipments options are only Return for Credit and Destroy in Field for Credit and will usually have the same disposition as the selected choice for Defective Merchandise, except when Defective Merchandise Disposition is either No Credit or Out for Repair. Product shipped FOB Destination that arrives damaged will be returned to Vendor (RTV) to the supplier. The supplier must provide an RGA number within four hours of request. Product shipped FOB Origin that arrives damaged will be processed by filing a freight claim.
If our agreement is to return merchandise, you will be responsible for both the gross cost of merchandise and all freight charges. Please note that collect, prepaid & add and supplier truck are the only return freight options available to you. If you choose Prepaid & Add, small package shipments will be returned via the THD core carrier chosen by the state-to-state routing guide. Collect freight terms gives you the option to choose your carriers. If you do not specify a carrier, then the system will use the same carrier selection criteria as Prepaid & Add shipments.
By accepting a purchase order, you acknowledge that some product defects cannot be detected until the product is installed by a customer or by one of Home Depot’s authorized installers. Therefore, to satisfy the customer, it may be necessary to pay our installers an extra charge and/or re-installation fee when such product defects become known. Reimbursements of these fees (billable at cost) are the responsibility of the Supplier and are deducted through the Return to Supplier (RTV) process.
The Supplier may specify that Home Depot’s store personnel call the Supplier for a Return Goods Authorization (RGA) number before the product can be returned. If this option is chosen, the RGA number must be a sequential number that is tracked in your Accounts Receivable system. Do not use a “generic” name or number in all cases. By using a true sequential tracking number, you will be able to associate a returned shipment with an RTV deduction. Suppliers must abide by the Returned Goods Policy negotiated by the merchant in all respects, store associates are not authorized to override any facet of the agreement negotiated by the merchant.
A Supplier may require inspection of items to be returned to vendor (RTV) by one of their representatives. If this is a requirement and has been agreed upon in the Supplier Buying Agreement, inspection must be made within seven days of the store request.
Restocking Charges
It is Home Depot’s policy not to pay restocking charges for store or customer errors unless negotiated with the Global Product Merchant. Restocking fees are never applicable to mis-
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shipments or defective product. Any applicable restocking charges will be applied in the Account Payable system based on the negotiated agreement. Associates at the stores will not enter restocking charges into system.
If supplier does not accept returns of non-defective merchandise, stores will take a markdown or try to sell the merchandise on the sales floor. There is no Destroy in Field for Credit policy option on Non-Defective Merchandise.
Should Home Depot process an RTV to your company, a Notification of RTV Deduction will be sent electronically (if supplier has been selected to participate in the EDI Chargeback and RTV Program) or mailed to the Accounts Receivable address on file.
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Supplier Measurements
15.1 Introduction
The Home Depot Canada is committed to providing excellent customer service to the end consumer. In order to achieve that goal, all partners in the supply chain must provide on time, accurate and consistent service to the stores. All parties contributing to the customer service, including suppliers, carriers and DC’s will have their performance measured and monitored. Underperforming parties will be required to perform a root cause analysis, and resolve any problems in a timely manner. It is expected that all parties will participate in continuous improvement efforts as The Home Depot strives to make the customer experience even better.
15.2 On-time Fill Rate and Total Fill Rate
Our Common Goal – Getting the RIGHT product on the shelf at the RIGHT Quantity, at the RIGHT Place & at the RIGHT Time.
Total Fill Rate (TFR)
In order to achieve 100% TFR, it is important for the vendor to:
Ensure orders are filled as much as possible with available inventory
Work with IPR/Merchandizing on getting better visibility on future demand
Not hold PO until you have sufficient inventory to fill the entire quantity on the PO line
On-time Fill Rate (OTFR)
To measure our collective ability to achieve the above, THD’s focus is on a key metric called “On-Time Fill Rate”
“On-Time Fill Rate”, which measures % of units ordered by THD, that are received in our stores on or before the PO due date, is the product of two components:
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15.3 Collect Vendors
Roles and Responsibilities
Vendor
RRF On Time
Products available for pickup on time
THD
Picks products up from vendor on time
Ensures products get shipped and received by stores on or before PO due date
Life of a PO
1 The EDI transmission day is not included in the Order Processing Time 2 Vendor Order Processing Time is in business days 3 Transit Time is in calendar days, which includes weekends and holidays based on procurement cycle
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On Time Compliance: OPT and RRF Submission
On Time Compliance: RTS Submission (TMS-enabled only)
In addition to the above requirements of RRF compliance, TMS-enabled vendors (3-series POs) are required to submit a Ready To Ship notification (RTS) by 11am two days prior to the Ship Date indicated on a PO (DTM*038*CCYYMMDD on EDI 850).
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15.4 Prepaid to Store Vendors
Roles and Responsibilities
Vendor
Plan shipments based on transit lead time, and deliver the PO’s to arrive at the destination stores on or before their respective due dates.
THD
Ensures that products are received by the stores on or before PO due date
Life of a PO
1 The EDI transmission day is not included in the Vendor Total Lead Time 2 Vendor Total Lead Time is in calendar days
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15.5 Prepaid to Cross Dock Vendors
Roles and Responsibilities
Vendor
Ensures PO’s are delivered to our Cross-dock facility within your designated lead times (including time required for pick/pack/transit to THD Cross-dock)
THD
Ensures products get shipped out of the Cross-dock facility and received by stores on or before PO due date
Life of a PO
The EDI transmission day is not included in the Order Processing Time 2 Vendor Order Processing Time is in business days 3 Transit Times are in calendar days, which includes weekends and holidays based on procurement cycle
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On Time Compliance: OPT and Transit Time
1 In business days 2 In calendar days
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15.6 Vendor KPI Report
The Vendor KPI report can be found in https://homedepotlink.homedepot.com > Log In > Reports > Weekly Canadian Supplier Scorecard.
Summary Page
Title Information
On the Report Field Name
Description
Week
Week based on The Home Depot Canada’s fiscal calendar, where week 1 is the week including February 1st
Vendor
The Home Depot Canada’s merchandising vendor number, and the vendor name on file
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Performance Measures
On the Report Field Name Description Formula
PO Line Timeliness
(Rolling 13-week measurement)
Percentage of PO lines (with PO Delivery Dates within the L13W) delivered: early (before the PO delivery date) on time – on the delivery date late – after the delivery date
Receipt date – PO Due Date
Avg PO Lead Time Deviation (Days)
(Rolling 13-week measurement)
PO Lead Time deviation, in days, showing the average number of days early and average number of days late. PO lines included are those with PO Delivery Dates within the L13W
Average number of days between PO Due Date & Actual Receipt date.
(Negative = Early)
Weekly Fill Rates (Units)
Fill Rate Percentage and On Time Fill Rate Percentage
On time = on or before the PO Due Date
Total Fill Rates for the last 2 weeks are intentionally hidden as they resemble “On-time Fill Rates”
Fill Rate =% of PO units received / the total units ordered
On Time Fill Rate = % of on time PO units received / the total units ordered
PO type inclusion for both Fill Rate and LT Variance Reporting: Domestic Cross Border
Article Inclusion – All Merchandizing articles that are stocked at The Home Depot are included in the reporting. Excludes special orders.
Additional Notes:
In cases where there are multiple receipts on the same line, only the last receipt is counted towards On Time Fill Rate & LT Variance calculation.
E.g. If Supplier fills 60% of a certain line on time and 40% late, it’s reported as 100% late.
If Supplier fills 60% of a certain line 3 days ahead of due date, and 40% 3 days after the due date, the entire line is considered 3 days late.
Lead Time: The total time that elapses between an order’s placement and its receipt. It includes the time required for order transmittal, order processing, order preparation and transit.
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Fill Rate: The percentage of order items, line items or units that the picking operation actually fills within a given period of time
For additional details and explanations of all KPI Report fields refer to Appendix F.
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Homedepot.ca
16.1 Home Depot Direct Ship Program Definition
The Home Depot Direct Ship facilitates the direct-to-consumer delivery of merchandise to our customers’ designated “Ship To” address. The Program applies to orders placed by our customers via any Home Depot Direct online storefront (e.g., homedepot.ca)
Direct Ship Fulfillment (DS) Program covers merchandise fulfilled and shipped from a supplier’s facility to a Home Depot’s customer designated “Ship To” address.
16.2 Home Depot Direct Product Registry Setup and Maintenance
The Home Depot Product Registry is a master database where all Home Depot Direct Ship product attributes are setup and maintained. A ‘product’ is defined as an Article (individual selling unit). Product attributes for all required fields must be provided for each article. Product attribute data includes but is not limited to part numbers, wholesale cost, and suggested retail price, product name, descriptions, specifications, images, features, and warranty, installation and order management characteristics.
The Home Depot Online Category Manager is responsible for final product selection, approval and activation/deactivation of all of a supplier’s data in the Product Registry.
Suppliers are responsible for input and maintenance of all appropriate attribute fields defined by The Home Depot in the Product Registry. The wholesale cost includes all related costs to receive, store, pick, pack and stage the product for shipment.
Suppliers must provide a 90-day notice to your Online Category Manager for any product attribute changes that require The Home Depot intervention and approval (e.g., pricing changes or discontinued model). Please consult your Online Category Manager for more details regarding the Product
16.3 Direct Ship Fulfillment Program
Direct Ship Fulfillment Inventory Availability
Suppliers are required to provide daily in-stock inventory availability updates for each Article. The Supplier is responsible for properly setting up and maintaining the inventory information provided to The Home Depot.
Suppliers are required to provide the following Article inventory data: Vendor Merchandising (MVendor) Identification Number, Supplier Part Number, and Quantity.
The merchandise assortment in the Product Registry includes only build-to-stock products with pre-defined dimensions and pricing and where finished goods inventory quantities at the supplier’s fulfillment center can be provided.
The DS program does not currently support Custom/Special Order products that are custom made or require configuration.
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Suppliers will ”guarantee” 100% availability of the in-stock quantity provided to The Home Depot Suppliers will maintain a positive in-stock inventory position across their product assortment 95% of the time throughout the calendar year.
For products featured in any Online catalog, Suppliers are required to meet the following conditions: 1. 50% of the total forecasted demand in-stock at the fulfillment center 10 business days prior to the catalog drop date. 2. 100% availability of the forecasted quantity throughout the lifecycle of the catalog.
The Home Depot will time stamp all inventory updates provided by supplier
Direct Ship Fulfillment Backordered Product Availability
The Standard replenishment lead-time applies to all Fulfillment articles available for sale. A backordered Article is expected to have a positive in-stock quantity available within ten (10) business days from the date the supplier submits an article inventory availability quantity of zero (0) to The Home Depot. If replenishment of an Article falls outside the ten (10) business day threshold, suppliers are required to notify The Home Depot Online Category Manager and Direct Ship Specialist within one (1) business day of submitting the zero (0) in-stock inventory quantity.
Expedited replenishment lead-time Applies to articles available for sale during the holiday season (October through December), in a catalog or part of a promotion. A backordered article during any expedited replenishment lead-time period is expected to have a positive in-stock quantity available within three (3) business days of the stock-out date.
Direct Ship Fulfillment Order Processing
All order processing messages (purchase order, order status update) are required to be transmitted electronically between The Home Depot and suppliers. Suppliers have the option of transmitting messages via EDI or using a web-based browser for message transmission with The Home Depot. The Home Depot is not responsible for costs incurred to use a 3rd Party order broker used to facilitate the electronic order processing interfaces.
Direct Ship Fulfillment Purchase Order (PO)
The Home Depot transmits purchase orders to suppliers automatically throughout the day and night and on weekends. A single Home Depot Direct Ship customer order may have several supplier purchase orders associated with it. The PO includes of all the information needed to fulfill and ship the Home Depot Direct Ship customer order.
Purchase orders that are outstanding for greater than 10 business days will be cancelled.
There are no minimum order quantities for a PO.
A PO can consist of a single line item for a single quantity or multiple line items with multiple quantities for each line item.
Each PO has only one “Ship To” address and one shipping service level type designation.
The Direct Ship Fulfillment Program does not currently support custom and special order fulfillment service levels with longer lead-times.
Standard Fulfillment lead-time requires the line item to ship complete within two (2) business days of PO receipt.
Direct Ship Fulfillment Order Status Update
Suppliers are required to provide an order status update of Shipped, Backordered or Cancelled for each line item on a PO.
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A partial shipment of a multi-line PO is allowed.
Partial shipments at the quantity level for a line item are not allowed.
The line item quantity in the orders status must equal the line item quantity requested on the PO.
Suppliers may submit multiple order status updates per PO until an order status has been associated with each line item.
An Open PO without an order status after three (3) business days from PO receipt is subject to cancellation by The Home Depot.
Suppliers must submit a single, complete electronic invoice per PO.
Paper invoices are not accepted and Home Depot will only reconcile financials per the electronic invoice.
Direct Ship Fulfillment Shipment Confirmation
A Shipped status means the supplier shipped the line item complete with all associated quantities.
An order status message to The Home Depot identifying the item as Shipped is expected within one (1) business day of the shipment date
An order status message to The Home Depot confirming the line item Shipped must be made within one (1) business day of shipment day and include the carrier’s SCAC (Standard Carrier Alpha Code as assigned by the National Motor Freight Traffic Association) and the tracking number(s).
The tracking number is defined as the small package tracking number, the PRO number or Bill of Lading (BOL
The Shipped status message must include the physical address of the shipping location
Direct Ship Fulfillment Backorder
A Backordered status means that the supplier has insufficient in-stock inventory to fulfill the line item complete within the fulfillment service level designated on the PO. This is considered an unexpected backorder. An order status message to The Home Depot identifying the line item as backordered is expected within one (1) business day of the PO receipt. Suppliers are NOT permitted to make product substitutions. Pursuant to the Participant Requirements on the Supplier Buying Agreement Home Depot Direct Merchandise Program Sign-Up Form
Direct Ship Fulfillment Cancelled Order
A “Cancelled” status means that the supplier cannot fill the line item as requested on the PO. This status is often associated with transmission errors, unrecognizable article or incorrect costs.
An order status message to The Home Depot identifying the line item as Cancelled is expected within one (1) business day of the PO receipt.
The supplier must submit one of the following reason codes along with the Cancelled status to identify why the order was cancelled: Unexpected Data error, Unrecognized Part Number, Invalid Ship Method, Invalid Cost, or Item No Longer Available.
Suppliers should notify The Home Depot Direct Ship Specialist immediately if the problem is related to the Product Registry.
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Direct Ship Fulfillment Service Levels
Suppliers must pick, pack and ship all articles from a fulfillment center located in Canada or the contiguous United States.
Splitting a PO to fulfill and ship articles located at different fulfillment centers is acceptable as long as the supplier adheres to the partial shipment guideline in the Direct Ship Fulfillment
Order Status Update section and the single invoice guideline in the Direct Ship Fulfillment Order Status Update section.
• All line items on a PO fulfilled from the same location should ship together.
• Combining multiple purchase orders with the same Ship To address is not acceptable. A single line item, single quantity Article may consist of several shipping cartons. Suppliers are expected to meet 98% order fulfillment service level for Standard and Expedited fulfillment of in-stock inventory purchase orders as defined in the Direct Ship Fulfillment Purchase Order (PO).
Direct Ship Fulfillment Packaging
In addition to packaging design and testing guidelines applicable to direct-to-consumer shipments outlined in Section 10: Manufacturing Excellence - Package Distribution Attributes of the Supplier Reference Guide to prevent in-transit product damage, the following guidelines apply to Home Depot Direct DS shipments:
All packaging must also be able to withstand outbound and return shipment in the same packaging materials – Home Depot Direct Ship customers are requested to use the original packaging for returns if available.
Multiple, smaller-size cartons should be consolidated into “repack” cartons whenever possible to reduce freight cost and minimize split shipments on delivery to a single “Ship To” customer.
Direct Ship Fulfillment Vacation Closings
If a supplier fulfillment center is closed for any day other than national holidays, please provide your Direct Ship Specialist 90 days’ notice and a list of all fulfillment centers closure dates for the calendar year, including national holidays. The Home Depot expects suppliers to have a plan in place to resolve vacation closings that would cause any order from being fulfilled outside the standard fulfillment turnaround time.
DIRECT SHIP FULFILLMENT BRANDING
Suppliers must comply with The Home Depot branding standards for all Home Depot Direct Ship products shipped via the Direct Ship Fulfillment Program. The Home Depot must approve all Home Depot Direct branded documents prior to use. Home Depot will provide suppliers with the appropriate specifications and files to produce the logos, shipping labels, packing lists, inserts and stickers to meet the Direct Ship Fulfillment Program branding standards via a 3rd Party order broker..
Direct Ship Fulfillment Logo and Name Usage
The Home Depot logos provided to the supplier cannot be altered and must maintain the specified colors, fonts, formats and proportions.
Usage of The Home Depot corporate names must follow the specified formats and be approved prior to use by the supplier.
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Direct Ship Fulfillment Packaging List
Suppliers are required to generate and include a branded packing list in every shipment.
The homdepot.ca logo must always appear on the packing list.
The pack list must be consistent with the field, text and format layout. The Home Depot Return Instructions must be printed on the reverse side of the packing list. The Return Instructions provided to the supplier cannot be altered and must maintain the specified fonts, formats and proportions.
Subsequent packing list pages must follow the same format as page 1.
Suppliers must populate all required fields on the packing list.
The packing list must NOT include any cost or retail pricing, sales tax, freight charges or supplier information other than ‘Ship From’ street address, city, province and postal code.
Direct Ship Fulfillment Branded Shipping Cartons/Boxes
In addition to packaging guidelines applicable to direct-to-consumer shipments outlined in Section 10: Manufacturing Excellence – Package Communication Attributes of the Supplier Reference Guide, the following packaging guidelines apply to Home Depot Direct Ship Fulfillment shipments:
Supplier branding and marketing information (e.g., phone number, website address) must not appear on the outermost shipping carton. Suppliers may be required to cover selected content or modify the shipping cartons. The Home Depot must approve all shipping cartons with supplier related copy prior to use.
Packing list should be placed either on the top of the product and INSIDE of shipping carton or in clear plastic adhesive envelope attached to the outside of the shipping carton.
Inserts, other than manufacturer instructions and warranty information, cannot be included without prior authorization from The Home Depot
Direct Ship Fulfillment Shipping
It is the supplier’s responsibility to ensure the products arrive to the Ship To customer’s home in “as ordered” (excellent and working) condition. The supplier’s involvement in The Home Depot’s Direct Ship Fulfillment shipping process should remain transparent to the “Ship To” customer.
All Direct Ship Fulfillment supplier shipments terms are decided by the vendor and the Online Category manager and can include Free On Board (FOB) origin terms or Free On Board FOB destination terms. The “Ship To” address may be a residential home or business within Canada
Direct Ship Fulfillment freight payments are 3rd Party Bill to The Home Depot except where Prepaid (Freight Included) shipping terms are agreed to in writing
Suppliers that are prepaid are responsible for carrier selection and must adhere to The Homedepot.ca Routing Guide for selecting approved carriers for 3rd Party Bill shipments. Vendors that are Free OnBoard (FOB) origin must adhere to the Homedepot.ca routing guide and be set up by the Homedepot.ca Operations specialist.
Use of non-approved carriers will not be reimbursed and unauthorized service upgrades are subject to a full charge back of the freight cost plus an administrative fee to the supplier.
The Freight Included shipping is defined as flat freight cost for Direct Ship Fulfillment shipments that is included in the wholesale cost paid by The Home Depot to the supplier.
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The Home Depot Online Category Manager will authorize a supplier to ship “Freight Included” when The Home Depot approved carrier network cannot support the delivery needs of the product.
The shipping service level promised to the customer is defined by the supplier and should be included in the product marketing copy to set customer delivery expectations.
Information for setting up the Direct Ship Fulfillment 3rd Party Bill freight accounts will be provided by The Home Operations specialist representative.
Direct Ship Fulfillment Delivery Standards
Standard small package delivery is at the doorstep with no signature required.
Standard Common Carrier / Less-than-Truckload (LTL) delivery is curbside
Note: LTL delivery is an appointment delivery and the customer must be home to accept an LTL delivery
Under no circumstances should the “Ship To” customer have to pay any additional fees to a carrier to have a shipment delivered.
Direct Ship Fulfillment Shipping Label Specifications
In addition to shipping label guidelines applicable to direct-to-consumer shipments outlined in Section 10: Manufacturing Excellence – Package Communication Attributes of the Supplier Reference Guide, the following shipping label and/or Bill of Ladings (BOL) guidelines apply to Home Depot Direct DS shipments:
Always state “Prepaid” or “3rd Party” when using The Home Depot approved carriers. Common Carrier / LTL shipments must include all additional services if required (e.g.,
Residential Delivery, lift-gate) on the BOL for completing the applicable delivery standard to the “Ship To” customer.
Must identify the appropriate Home Depot Direct Program entity as the shipper and follow the corporate name usage standards.
The ‘Ship To’ customer’s name, address, phone number, purchase order No and Customer Order No. must be placed on all shipping labels and/or BOL.
Use of a supplier branded logo or the supplier’s name on the ship label is NOT permitted.
The aforementioned guidelines to all cartons in multiple carton shipments.
Direct Ship Fulfillment Freight Claims
Per Freight Claims, the supplier/shipper files all freight claims.
The Home Depot will provide information for claim filing to the supplier.
The supplier’s process for handling freight claims should not inconvenience the “Ship To” customer.
For damaged product that has been delivered to the “Ship To” customer (i.e. no longer with the carrier), suppliers are required to make arrangements to pick up the product within two (2) business days of receiving notification.
A new purchase order is required for additional product necessary to fulfill a customer order when a product is damaged in-transit.
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Suppliers are responsible for arranging and paying any return freight charges for damage products as well as any damage claims refused by carriers because of poor or insufficient packaging.
Damage rates beyond 5% for any SKU may result in the product being removed from the Direct Ship Fulfillment Program until packaging improvements or alternate shipping methods are implemented.
Direct Ship Fulfillment Returned Goods
In addition to returned goods policies applicable to direct-to-consumer shipments outlined in Section 14: Returned Goods, the following guidelines determine how a supplier handles merchandise returns for Home Depot Direct DS shipments: Suppliers agree to support The Home Depot’s 90-day customer return policy, for any reason, for all Direct Ship Fulfillment shipments.
Homedepot.ca is responsible for qualifying and issuing a Return Merchandise Authorization (RMA) to suppliers for Direct Ship Fulfillment customer returns. No supplier-issued Returned Authorization (RA) number or form is required to initiate or process a Direct Ship Fulfillment customer return. All “accepted” RMA returns as defined later in this section result in a Chargeback against the supplier’s original invoice amount for the product returned. A new purchase order is required for additional product necessary to fulfill a customer order when product is defective or mis-shipped.
Direct Ship Fulfillment Return-to-Vendor
Return-to-Vendor (RTV) returns apply to buyer-remorse customer returns. Buyer-remorse customer returns are defined when merchandise is returned “like new,” in re-sellable condition and in the original packaging.
All “accepted” RMA the Home Depot will arrange and pay for RTV shipping for buyer-remorse returns. Return freight is FOB Destination from the ”Ship To” customer to the supplier The Home Depot will notify suppliers of a new RMA within one (1) business day of the return shipping arrangements being made.
Suppliers agree to receive Direct Ship Fulfillment customer returns into their fulfillment centers even if The Home Depot has yet to assign a RMA
Suppliers are required to notify The Home Depot Direct Ship Specialist of unassigned RMA returns within one (1) business day of receipt. Suppliers are required to arrange shipping within one (1) business day of the RTV return notification. Suppliers are expected to inspect the return with an assigned RMA and notify The Home Depot of the condition (accept or reject) within two (2) business days of receiving the returned product or obtaining a valid RMA from The Home Depot, whichever is later. The RMA Chargeback is generated upon the RTV return “Accept” status update. Rejected RTV disputes will be resolved with The Home Depot Direct Ship Specialist and/or escalated to the Inventory & Fulfillment Specialist for resolution. Delinquent RTV inspections and status updates may be subject to the RTV return being considered “accepted” by the supplier.
Direct Ship Fulfillment Defective or Mis-Shipment
Defective and mis-shipped RTV product returns are the responsibility of the supplier. The supplier’s process for handling defective, short shipments and mis-shipped products should not inconvenience the “Ship To” customer.
For defective and mis-shipped product delivered to the “Ship To” customer, suppliers are required to make arrangements to pick up the product within two (2) business days of receiving notification.
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Suppliers are responsible for arranging and paying return freight charges for defective and mis-shipped products.
Use of The Home Depot 3rd Party Bill carrier account is not permitted.
Suppliers are required to provide The Home Depot with shipment information (carrier name, tracking number) within one (1) business day for any replacement parts sent to the “Ship To” customer to correct defective, short shipments or mis-shipped products.
The RMA chargeback is generated upon notification of the RMA to the supplier.
Direct Ship Fulfillment Restocking Charges
In addition to the no restocking charges policies outlined in - Restocking charges, no restocking charges for buyer-remorse returns apply to the Direct Ship Fulfillment shipments. Any applicable restocking charges desired by the supplier must be included in the wholesale cost negotiated with the Online Category Manager.
Direct Ship Fulfillment Product Knowledge
Suppliers are required to provide The Home Depot customer support centers with a Product Knowledge Frequently Asked Questions (PK) sheet. Suppliers may also be required to provide onsite training at the customer service centers if requested. The PK sheets are expected to include information to assist in the selling of the product, answering product specification inquiries and qualifying a return and its disposition.
Home Depot Direct Brands Policies and Guidelines Web and Catalogue Sales Direct Ship Fulfillment (DS) & Distribution Center Fulfillment (DCF)e PC Formats
Home Depot Direct Brands – Policies and Guidelines Direct Ship Fulfillment (DCF) Only Home Depot Direct Brands – Policies and Guidelines Direct Ship Fulfillment (DS) Only
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Appendix A: MH10 Label Examples
Cross Dock PO:
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RDC Flow-Thru PO:
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Relationship between MH10 Label, EDI 850 PO
and EDI 856 ASN
Data Element Label Field EDI 850 Element EDI 856 Element
Vendor Name From: Vendor Name Not sent N1 02 when N1 01= SH
Vendor Number Not required REF 02 when REF 01=MR
Not sent
Shipping Address From: Shipping Address Not sent N3 01 when N1 01= SH
Shipping City From: Shipping City Not sent N3 02 when N1 01= SH
Shipping Postal Code
From: Shipping Postal Code Not sent N3 03 when N1 01= SH
Shipping Country From: Shipping Country Not sent N3 04 when N1 01= SH
DC Name To: DC Name N1 02 when N1 01= ST N1 02 when N1 01 =ST
DC Address To: DC Address N3 01 when N1 01= ST N3 01 when N1 01= ST
DC City To: City N4 01 when N1 01=ST N4 01 when N1 01=ST
DC Postal Code To: Postal Code N4 02 when N1 01=ST N4 02 when N1 01=ST
DC Country To: Country N4 03 when N1 01=ST N4 03 when N1 01=ST
Carrier Name Carrier Name Not sent TD5 05
PRO Number PRO Number Not sent REF 02 when REF 01=CN
BOL Number BOL Number Not sent REF 02 when REF 01=BM
Store Name Store Name N1 02 when N1 01= OB N1 02 when N1 01= OB
Store Number Store Number N1 04 when N1 01= OB N1 04 when N1 01= OB
Store Address Store Address N3 01 when N1 01= OB N3 01 when N1 01= OB
Store City Store City N4 01 when N1 01= OB N4 01 when N1 01= OB
Store Postal Code Store Postal Code N4 02 when N1 01= OB N4 02 when N1 01= OB
Store Country Store Country N4 03 when N1 01= OB N4 03 when N1 01= OB
PO Number PO Number BEG 03 PRF 01
PO Type PO Type REF 02 if REF 01= 4C Not sent
Number of Pallets Number of Pallets Not sent Not sent
Number of Cartons Number of Cartons Not sent Not sent
Pallet Barcode # Pallet Barcode # Not sent MAN 02
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Appendix B: Routing Request Form
Part 1: Saving and Emailing the Routing Request Form (RRF)
A shipper that has freight to move to Home Depot must email a completed Home Depot Routing
Request Form (RRF) as an Excel attachment to the appropriate Home Depot address (see
below). This should be completed one business day prior to pick-up for Domestic shippers and
two business days prior to pick up for U.S. shippers.
Home Depot Cross Dock
facility:
Email your RRF to:
Toronto (7275) [email protected]
Montreal (7282) [email protected]
Calgary (7285) [email protected]
Vancouver (7293) [email protected]
Notes on saving and e-mailing the RRF:
1) The RRF must be saved and emailed as an .xls file only (Microsoft Excel, version 2003 or older).
DO NOT send as an .xlsx file (version 2007). The system cannot accept this version and the RRF will bounce back to the sender.
2) Do not add/modify/delete any rows/columns on the RRF. The Home Depot system will reject any form that has been modified and the pickup request will not be processed or scheduled.
3) Do not add any foreign characters if changing the file name when saving a newly completed RRF. Some examples of foreign characters that should not be used are '/©,À,É,€,Ç,Í
4) All RRFs MUST be submitted via email. 5) Since the RRF has limited space for PO line entry, use a 2nd RRF when shipping more
than 99 PO’s, in which case two separate emails will be necessary. The system will not process an email with more than one RRF attached.
If you must submit more than one RRF due to the number of POs included in the routing request, please call Home Depot dispatch immediately to let them know that the two (or more) email submissions equal one pickup request.
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Choose the appropriate vendor name from the drop-down menu.
Part 2: Filling Out the RRF
Correct date and time formats must be used.
When multiple PO’s are loaded on a pallet
PO Numbers/Store Numbers – Mandatory entry on each line
Pallets – enter “1” on the first PO line. Enter “0” on the balance of the PO’s on that same pallet
Loose Cartons – enter the # of pieces being shipped for each PO.
Weight – enter for each PO.
When multiple PO’s are loaded on multiple pallets
Same as above, plus:
Pallets – enter “1” on the first PO of each new pallet that you “start”
Enter the date that freight is ready to be picked up. This field is NOT for the date that the RRF is being submitted. Note that “Pick-Up Date” must be at least 24 hours before the time you submit RRF (i.e. 24-hr advance notice is required).
When no information is necessary, do NOT leave the cell blank. Instead enter N/A
When 1 PO is loaded on a pallet
PO Number/Store Number - Mandatory entry
Pallets – enter “1” on the first line
Loose Cartons – enter “0”
Weight – enter for the PO.
When 1 PO is loaded on multiple pallets
PO Number/Store Number - Mandatory entry
Pallets – enter the number of pallets on the first line
Loose Cartons – enter “0”
Weight – enter total weight for all PO’s.
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Part 3: RRF Mandatory Field List
Below is a list of mandatory fields to be filled out on the RRF. Failure to populate any of these fields will
result in the rejection of RRF by the system.
Field Name Format
Vendor Name Drop Down Menu
Vendor Address Free text
Contact Name Free text
Contact Phone # Free text
Destination Transit Facility # Prepopulated (do not modify)
Pick-Up Date: mm/dd/yyyy
Load Ready At: hh:mm AM/PM
Pick-Up Closed At: hh:mm AM/PM
Live Load/Switch Drop Down Menu
Vendor Pick-Up # Prepopulated with “N/A”
Free text (vendor overwrite as necessary)
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Appendix C: Identification Label for
Dangerous and/or Freezable Goods
The identification label for dangerous and/or freezable goods should be a standard 8-½” by 11” sheet.
Place a tick mark in the appropriate box (or boxes) when applying the label.
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Appendix D: Sample Pallet and Loose Piece Label
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Appendix E: Distribution Centre Contact Information
ID Facility Name Telephone Address City Prov Postal Code
7019 Mississauga BDC (905) 672-0072 6740 Professional Court Mississauga ON L4V 1X6
7029 Toronto SDC (416) 742-9306 2233 Sheppard Ave W Toronto ON M9M 2Z7
7068 Edmonton BDC (780) 452-3212 14810 131st Avenue Edmonton AB T5L 4Y3
7072 Vancouver BDC (604) 532-9473 19930 Fraser Highway Langley BC V3A 4E3
7198 Montreal BDC (450) 963-8418 175 Boul Bellerose West Laval QC H7L 6A1
7275 Vaughan RDC (905) 265-4400 8966 Huntington Road Vaughan ON L4H 3V1
7275 Vaughan XD (905) 265-4400 8966 Huntington Road Vaughan ON L4H 3V1
7282 Montreal XD (514) 422-9400 10765 Ch De La Cote De Liesse Dorval QC H9P 2R9
7283 Delta SDC (604) 952-6413 7003 72nd Street Delta BC V4G 0A2
7285 Calgary XD (403) 279-6036 5555 69th Avenue Calgary AB T2C 4Y7
7292 Calgary SDC (403) 279-6036 5555 69th Avenue Calgary AB T2C 4Y7
7293 Delta XD (604) 952-6413 7003 72nd Street Delta BC V4G 0A2
7294 Port Coquitlam Transload (604) 552-4303 1275 Kingsway Ave
Port Coquitlam BC V3C 6R8
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Appendix F: Vendor KPI Report
Freight Information
On the Report Field Name
Description
INCO Freight Terms
Includes the FOB point, where the ownership of the goods are transferred, as well as indicating whether the supplier (prepaid) or The Home Depot Canada is responsible for the payment of the freight (collect)
Breakdown of Supplier Article (SKU) information
On the Report Field Name Description Formula
DSD
DC
Direct Store Delivery
DC – Distribution Centre
Active The number of articles that are currently active, and the $ value, based on Cost of Goods Sold (COGS) of the articles in inventory (stores and DC’s) on the as of date.
Sum of all COGS, in all stores & DC’s for all articles from this supplier that are active and number of articles in active status
Clearance The number of articles that are currently in clearance status, and the $ value, based on Cost of Goods Sold (COGS) of the articles in inventory (stores and DC’s) on the as of date.
Sum of all COGS, in all stores & DC’s for all articles from this supplier that are being cleared and number of articles in clearance status
Discontinued The number of articles that are currently discontinued, and the $ value, based on Cost of Goods Sold (COGS) of the articles in inventory (stores and DC’s) on the as of date.
Sum of all COGS, in all stores & DC’s for all articles from this supplier that are discontinued and number of articles in discontinued status
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Exit The number of articles that are currently being removed from the assortment, and the $ value, based on Cost of Goods Sold (COGS) of the articles in inventory (stores and DC’s) on the as of date.
Sum of all COGS, in all stores & DC’s, for all articles from this supplier that are in exit status and number of articles in exit status
Cost of Goods Sold (COGS): The amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time, determined in accordance with Generally Accepted Accounting Principles (GAAP).
Operating Statistics - for the Week, Year to Date (YTD) & vs. Last Year (∆LY)
On the Report Field Name Description Formula
WOS (N13) – Weeks of Supply
Weeks of supply on hand, based on last year’s sales for the next 13 weeks
Units currently in inventory / weekly sales, in units
WOS (L13) – Weeks of Supply
Weeks of supply on hand, based on the previous 13 weeks of sales
Units in inventory / weekly sales, in units
Instock Percentage in stock, for the last 13
weeks, based on reported out of stocks Percentage of article/site combinations with inventory values greater than zero
Over PS Over PS is over presentation
stock. Presentation stock is a type of safety stock value that can be manually set in SAP to maintain a minimum stock level at our stores. If a store’s inventory is greater than 0, then they are instock. If they are greater than the presentation stock, then we say that they are over PS
Percentage of article/site combinations with inventory values greater than presentation stock quantity
Sales For the Current Week (Monday to Sunday), Year to Date (YTD) & ∆LY
Sales in units and retail dollars for the current week, year to date (YTD), and change from same week last year, as of the date on the report
Sum of all sales, in all stores, for all articles from this supplier
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Average Inventory For the Current Week, Year to Date (YTD) & ∆LY
Inventory being held by The Home Depot Canada, in units and cost of the inventory (COGS), in Canadian dollars, as at the end of the current fiscal week, the average of every fiscal week ending to-date, and change from same week last year
Sum of all inventory, in all stores, for all articles from this supplier
Orders For the Current Week and Year to Date (YTD)
Purchase Orders placed this week, year-to-date, and change from same week last year, in units and in Canadian dollars
Sum of all orders, from all stores and DC’s, for all articles from this supplier
Receipts For the Week and Year to Date (YTD)
Purchase Orders received, this week, year to date, and change from same week last year, in units and PO cost in Canadian dollars
Sum of all receipts, in all stores and DC’s, for all articles from this supplier
District Breakdown
District Name Coverage
Manitoba / Northern Ontario
All stores in Manitoba and North Western Ontario (west of Sault Ste Marie)
Calgary City of Calgary, Stores north to Red Deer and South to Okotoks
Ontario South South Western Ontario, including Hamilton, Kitchener, Niagara Falls & St Catharines
Ontario East Stores east along the 401 (from Morningside in Scarborough to Belleville) and Peterborough
Toronto South Toronto Stores south of the 401 and west of Morningside and the 401, and west to Etobicoke
Greater Vancouver Greater Vancouver area and stores south east to Abbotsford and North East to Squamish
Central Ontario Stores in Barrie and North to North Bay, east to Bracebridge and west to Owen Sound
Ottawa, Kingston, Gatineau
Ottawa, Cornwall, Kingston and Brockville
Ontario South West SW of Toronto, from Brantford, along 401 corridor to Windsor & Sarnia
Edmonton City of Edmonton and St Albert and Fort Saskatchewan
Halton Peel Brampton, Mississauga, Milton and Oakville
Toronto North North of 401 & South of Barrie, including Orangeville and Bradford
Quebec 1 City of Montreal, west end and Montreal / Ottawa corridor, including St Constant
Quebec 2 East end of Montreal (Anjou), Montreal South Shore (including St Bruno and St Jean Sur Richelieu) and corridor to Quebec City
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BC Island Vancouver Island
Atlantic Canada Eg: Nova Scotia, New Brunswick, Newfoundland, Prince Edward Island
West Rural Markets Central Prairies, including Regina, Saskatoon, Lloydminster, Cranbrook, Grand Prairie and Lethbridge
BC Interior BC Interior
Rolling 13 week Fill Rate Metrics by District
On the Report Field Name Description Formula
Fill Rate (Units)
Expressed as a Percentage
The percentage of the units received versus units ordered
Units received / units ordered
On Time FR (Units)
Expressed as a Percentage
The percentage of the units filled on time (prior to and on the PO Delivery Date).
Units received on or before the PO Delivery Date
Fill Rate > 2 days
Expressed as a Percentage
The percentage of the units received within 2 days after the PO Delivery Date
Units received up to 2 days after the PO Delivery Date
Fill Rate > 4 days
Expressed as a Percentage
The percentage of the units received within 4 days after the PO Delivery Date
Units received up to 4 days after the PO Delivery Date
Fill Rate > 6 days
Expressed as a Percentage
The percentage of the units received within 6 days after the PO Delivery Date
Units received up to 6 days after the PO Delivery Date
Totals for all districts
Fill Rate metrics at the division level
Rolling 13 week Lead Time Metrics by district
On the Report Field Name Description Formula
System LT System Lead Time, in calendar days
System Lead Time is used for populating PO Delivery Date on all system-generated replenishment PO’s
N/A
PO LT Purchase Order Lead Time, in calendar days
The number of days between the PO Creation Date & PO Delivery Date as shown on the PO
PO Delivery Date –PO creation Date
Actual LT Actual Lead Time, in calendar days
The number of days between vendor’s receipt of the PO & PO’s arrival at the store
Receipt (GR) Date – PO creation Date
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PO Lines Early Purchase Order Lines Early
Expressed as a percentage
Percentage of PO lines arrived at the store before the PO Delivery Date
# Lines arrived before PO Delivery Date / Total number of PO Lines
Days Early (Avg) Days Early (Average)
Expressed in days
Average number of days early for PO lines that arrived before the PO Delivery Date
Sum of all the days for all PO lines arrived before PO Delivery Date/ sum of all occurrences
PO Lines On Time
Purchase Order Lines On Time
Expressed as a percentage
Percentage of PO lines received on time
# Lines arrived on the PO Delivery Date / Total number of PO Lines
PO Lines Late Purchase Order Lines Late
Expressed as a percentage
Percentage of PO lines arrived at the store after the PO Delivery Date
# Lines arrived after PO Delivery Date / Total number of PO Lines
Days Late (Avg) Days Late (Average)
Expressed in days
Average number of days late for PO lines that arrived after the PO Delivery Date
Sum of all the days for all PO lines arrived after PO Delivery Date/ sum of all occurrences
Total for all districts
Lead Time Metrics at the division level
All Active Article (SKU) Breakdown, by Rolling 13-Week Total Fill Rate
On the Report Field Name Description Formula
Article Article Number in THD System N/A
Description Description of the article N/A
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Department Number
Merchandizing department in which the article belongs (see list of department numbers)
N/A
Department Class
Subdivision of the department N/A
Class Description
Description of the class. For example, the Hardware department (department 25) is subdivided into:
Class 1 - Hand Tools
Class 3 - Fasteners
Class 9 - Portable Power Tools
N/A
Status Status of the Article - Active - Clearance - Discontinued - Exit
N/A
Source of Supply
DSD - Shipped direct to store
DC - Shipped through the DC
N/A
Fill rate, in units for the rolling 13 weeks
Fill rate in units, for orders with PO Delivery Dates within the last 13 weeks
Fill Rate =% of Total PO units received / the total units ordered
Total Quantity ordered (R13)
Total units ordered in the last 13 weeks
Sum of quantity ordered (in units) on all PO’s in the last 13 weeks
Total Quantity received (R13)
Total units received in the last 13 weeks
Sum of quantity received (in units) against all PO’s in the last 13 weeks
Total Quantity received on time (R13)
Total units on PO lines with PO Delivery Dates within the last 13 weeks, that were received on or before the PO Due Date
Sum of quantity received (in units) on time for all PO’s in the last 13 weeks
In Stock % (Stores & DC’s)
Percentage in stock (Inventory > 0) Percentage of article/site combinations with inventory values greater than zero versus the total number of articles stocked
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Over Presentation Stock %
Over PS is over presentation stock. Presentation stock is a type of safety stock value that can be manually set in our system to maintain a minimum stock level at our stores. If a store’s inventory is greater than 0, then they are in stock. If they are greater than the presentation stock, then we say that they are over PS
Percentage of article/site combinations with inventory values greater than presentation stock quantity
Sales Dollars (Last 4 weeks)
Total sales $, at retail price, for the last 4 weeks
Sum of quantity sold, in units, in the last 4 weeks
Sales Dollars (Current week)
Total sales $, at retail price, for the current week
Sum of quantity sold, in units, for the current week (Mon to Sun)
Inventory Dollars
Total inventory in Canadian Dollars, as at the end of the current fiscal week, based on COGS
Sum of units on hand in all stores * COGS for each article
WOS (N13) – Weeks of Supply
Weeks of supply on hand, based on last year’s sales for the next 13 weeks
Units currently in inventory / N13W weekly sales, in units
Department Listing
Dept Number Description
21 Lumber
22 Building Materials
23 Flooring & Storage
24 Paint
25 Hardware
26 Plumbing
27E Electrical
27L Lighting
28 Seasonal
29 Kitchen, Bath & Accessories
30 Millwork
59 Décor