Supply Chain Services Handbook Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com Introduction At KOST® USA, the team of professionals responsible for managing your account is dedicated to making it easy for you to do business with us. This handbook, which details our standard offerings, was developed to ensure an efficient and effective supply chain for our customers. Supply chain offerings beyond the standard services are available, and we welcome the opportunity to review your requests and provide you with additional options. There are typically nominal fees associated with non-standard requests, which may require additional resources. Our Purpose is to help companies and people mitigate risk in difficult situations. We do so by delivering on our core strengths of excellence in sourcing, and personal yet agile service. Across all markets, our competencies that make up our value proposition include adaptability, problem solving, and passionate service. Our operating model is customer focused and driven. We serve companies and people seeking a trusted relationship to build their private label brands. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com Table of Contents Table of Contents Order Management & Processing Transportation & Shipping Services • • • • • • • • • • • • • • • • • • • Customer Service Hours of Operation How To Place An Order Order Acknowledgement Documentation Order Lead Times Rush Order Lead Times Change Orders Minimum Order Quantities Breaking Pallets Split Loads Bulk Products Payment & Pricing Terms PDS and SDS 1 1 2 2 3-4 5 5 6 7 8 8 8 Shipping Hours of Operation Detention Policy Railcar Shipping Shipping Terms Tanker Cleanliness & Unloading Carrier No Show & Late Charge Pickup Procedure 9 9 10 11 12 13 14 Packaging Services • Drums • Labeling • Palletized, Shrink-Wrap & Banded Drums 15 15-16 17 Service After Shipment • Return Materials • Closing Statement 18-19 20 Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com Order Management & Processing KOST® USA’s Customer Service Centers & Hours of Operation Location Phone, Fax, Email, & Web Office Hours Headquarters 1000 Tennessee Ave. Cincinnati, OH 45229 Phone: (800) 661-9391 Fax: (877) 307-4292 Email: [email protected] www.kostusa.com 8:00am-5:00pm EST How To Place An Order KOST® USA requires the following information when placing an order: • Customer name • Ship To address • Drop ship information, including the customer’s name and address • Customer PO# • Delivery/Offload destination instructions • Freight option–Collect, CPU, Third party, or KOST® USA carrier (prepaid) • Item # or Product Name • Quantity per item Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 1 Order Management & Processing Order Acknowledgement Sales orders can be placed by phone, fax, or email. An Order Acknowledgement and/or Order Receipt along with the Terms and Conditions are provided within 1 business day of receipt of order. Documentation The following documents are standard documents provided by KOST® USA: • Order Acknowledgment • Commercial Invoice • Terms and Conditions • Shipping Documents: Bill of Lading Documentation available upon request • Proof of Delivery • Export documentation • Scale Ticket (weight) • C of A (Certificate of Analysis) Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 2 Order Management & Processing Order Lead Times – Cincinnati, OH (Finished Products) KOST® USA recommends using the following lead times for planning purposes. These lead times reflect the average time necessary to manufacture and prepare customer orders for shipment. Lead times do not include transit time. Please allow additional lead time for new customers or new products. Material Inventory Type Minimum Lead Time Package Blend to Order 7 business days Stock 3 business days Blend to Order 5 business days Stock 3 business days Bulk Order lead time is defined from the date the order has been placed to the requested ship date by the customer. Orders placed after 1pm EST are considered next business day. Lead times are subject to carrier, railcar, tank truck, container, and isotainer availability. Some products may require additional lead time based on material availability or blending equipment. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 3 Order Management & Processing Order Lead Times – Alternate Ship Points (Finished Products) KOST® USA recommends the following lead times for your planning purposes. These lead times reflect the average time necessary to manufacture and prepare customer orders for shipment. Lead times do not include transit time. Please allow additional lead time for new customers and/or new products. Material Inventory Type Minimum Lead Time Package Blend to Order 7 business days Stock 7 business days Blend to Order 7 business days Stock 7 business days Bulk Order Lead Times – All Ship Points (Raw Materials) KOST® USA recommends the following lead times for your planning purposes. These lead-times reflect the average time necessary to manufacture and prepare customer orders for shipment. Lead times do not include transit time. Please allow additional lead time for new customers and/or new products. Material Inventory Type Minimum Lead Time Bulk Stock 3 business days Order lead time is defined from the date the order has been placed to the requested shipping date by the customer. Orders placed after 1 PM EST will be considered next business day. Lead times are subject to carrier, railcar, tank truck, container, and isotainer availability. Some products may require additional lead time based on material availability or blending equipment. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 4 Order Management & Processing Rush Lead Times We understand that business requirements can be unpredictable. In the event a rush order is needed, we will do our best to accommodate but make no guarantees. The following charges will apply to orders requested to ship outside of our standard lead times. Shipment Types Cost Package $250 per order Bulk $500 per order Change Orders Once confirmation has been communicated, KOST® USA considers that order firm. Changes made to orders after the order confirmation has been sent, but before shipment, can create operational issues and should be avoided. Order changes after confirmation will result in a need to reschedule which will reset the lead time and may cause delays. Additional charges may apply. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 5 Order Management & Processing Minimum Order Quantities Certain limitations exist in manufacturing, blending, transportation, and handling, requiring minimum quantities to be set per order item. Order items requested for less than the quantities specified below will be subject to minimum order quantity fees. Material Package Bulk Inventory Type Shipping Locations Cincinnati Alternate Ship Points Blend to Order*** 1 Pallet* 1 Pallet* Stock 1 Pallet 1 Pallet Blend to Order 1000 Gallons 1000 Gallons Stock 1000 Gallons** 1000 Gallons** * Production batches vary by product based on materials and equipment. Consult your Customer Service Representative. ** Based on availability and configuration of the transportation equipment provided for shipment. Note: Due to maximum over-the-road weight limitations, some products in bulk will ship less than 5,000 gallons without the service fee. *** Case goods are subject to private label guidelines. Please consult your Account Representative. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 6 Order Management & Processing Breaking Pallets Standard pallets consists of 4 drums or 36 pails Pallet Breaking Fee Stocked Items $100 per order Made to Order Items Refer to MOQ Pallet Breaking Fee only applies to the following KOST® USA Product Lines. • KOSTChill™ • BIOChill® • KOST® USA Additive Packages All other product lines will be sold in full pallet quantities. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 7 Order Management & Processing Split Load Bulk Products Split loads are available only for bulk products maintained in inventory. Please check with your Account Representative if products are available for split loads. Split Load Bulk Products Split load orders $500 per order for tank trucks $1000 per order for tank cars Payment and Pricing Terms • Standard terms of sale are net thirty (30) days from date of invoice pending credit approval. Pricing is based on the price effective on date of shipment. Documents available via customer self-service: visit www.kostusa.com • Product Data Sheet • Safety Data Sheet (SDS) Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 8 Transportation & Shipping Services Shipping – Hours of Operation Bulk Shipments Monday through Friday – 7am to 7pm EST Based on schedule availability Packaged Shipments Monday through Friday – 7am to 7pm EST Based on schedule availability Detention Policy KOST® USA has selected a limited number of reliable and quality-driven logistics partners to ensure that product is delivered according to customers’ requirements. The area of expertise of these logistics partners spans a range of delivery modes, from package trucks to marine bulk shipments. For bulk shipments, the following time is allowed for loading and unloading: Common Carrier – Typical Free Time Time Free Hours for Bulk Truck Discharge at the Customer 2 hours - unloading Truck detention incurred at unloading location will be billed to the customer by KOST® USA on separate invoice. Customer Pick Up & Customer Arranged Carriers Time Typical time required for Bulk Truck/Isotainer loading at KOST® USA facilities. Applies to single compartment trucks only. 2 hours – loading Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 9 Transportation & Shipping Services Railcar Shipping Railcar Demurrage Time Free Days for KOST® USA Supplied Railcar Determined per railcar agreement Discharge at the Customer KOST® USA supplied railcar detention will be billed per signed railcar agreement. Signed use of KOST® USA trip lease agreement is required for tank cars. Please consult with your Account Representative for additional information. KOST® USA offers industry standards for unloading material. Excess unloading time above free time is customer’s responsibility. Rail Asset Fee KOST® USA maintains a leased fleet of tank cars as a service to our customers. KOST® USA charges a rail asset fee to recoup the cost of this service. Rail asset fee per shipment Determined per railcar agreement Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 10 Transportation & Shipping Services Shipping Terms – Domestic Purchase Term Options KOST® USA Invoice Carrier Selection Carrier Payment FOB Origin Freight Collect* No freight – Buyer pays Customer Customer pays carrier FOB Origin Freight Prepaid and Add** Freight shown as separate amount on material invoice KOST® USA KOST® USA pays carrier Delivered** Freight cost built into price KOST® USA KOST® USA pays carrier Note: Alternate freight billing locations can be identified on the shipping document. This is limited to one alternate billing address per mode of shipment. * Buyer owns goods in transit; buyer files ALL claims ** KOST® USA owns goods in transit; KOST® USA files ALL claims Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 11 Transportation & Shipping Services Tanker Cleanliness and Unloading To ensure tanker cleanliness, KOST® USA requires all carriers to present a clean, dry, odor free tank to the shipping location. Trailers not conforming to the cleanliness requirement will be required to be cleaned and subject to standard late charges as shown below. Our plant tank truck loading requirements are as follows: - Driver must have our pick up number and request KOST® p/u release to enter our facility and have shipment loaded on truck. - Driver must have a calibration chart for loading purposes. - Trailer must be clean, dry and odor free. We do thoroughly inspect all trailers, including valves. - A wash ticket is required for loading. - For private fleets who wish to waive washing, a wash waiver must be signed and on file. - Trailer must be in regulation with all DOT and EPA safety requirements. - Driver must have hard hat and safety glasses. - There is absolutely NO smoking and NO firearms permitted on the premises. - 40 ft hose – standard.* - Air Unload – standard.* *Additional charges may apply Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 12 Transportation & Shipping Services Carrier No Show and Late Charge It is the responsibility of the customer to completely unload contents of bulk container upon delivery. Customers collecting at our facilities will be advised of a specific pick up time by your Customer Service Representative. If customer’s carrier fails to arrive during scheduled appointment, the following fees will be applied: Bulk Arrival prior to scheduled pick up Carrier will be required to wait and no detention period will be recognized until original pickup time Bulk Arrival greater to 1 hour past scheduled pick up time $100 per shipment* Package Arrival not on scheduled pick up date $200 per shipment* * Late is defined as more than one hour past scheduled load/pick up time. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 13 Transportation & Shipping Services Pick Up Procedure A pickup number will be issued for loading purposes. Your pickup number will be advised by your Customer Service Representative, and will be required for release of product to customer. Under KOST® USA’s Safety and Security policies, we reserve the right to refuse entry into a KOST® USA facility. Any and all costs associated with non admittance will not be KOST® USA’s responsibility. KOST® USA’s Cincinnati facility is equipped with truck scales. Public truck scale facilities are available within 30 miles of the terminal. Scales are annually tested and certified. Scale ticket weights are the preferred weight for determining shipping quantities. When scale weighing is not available, each trailer or rail car is equipped with a calibration chart so the quantity can be calculated. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 14 Packaging Services KOST® USA uses only new and KOST® USA procured packaging materials. Drums Drums are filled on a standard net weight based upon 55 gallons at standard gravity. Other types of drums may be used based on the material characteristics; for example, open top drums, lined, etc. Labeling KOST® USA’s standard GHS approved label will be applied to the side of the drum. KOST® USA’s standard GHS approved label can include the customer’s product name and PO; please request this from your Customer Service Representative. GHS Approved Drum Label Includes: Manufacturing Address, Product Name, Product Description, Product Code, Product Features/Benefits, Typical Applications, Hazard Data, Batch Number, and Shipping marks Customer’s product name can be shown on label Transport regulations label and proper shipping name applied for regulated materials Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 15 Packaging Services Label Example KOST® USA drum labels have the capability to show the Customer’s Material Description and Purchase Order Number as required. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 16 Packaging Services Palletized, Shrink-Wrapped and Banded Drums Palletized and shrink-wrapping or banding of drums can be supplied if required. The fee schedule for this additional service is included in the price of the material. Service Cost Comments Pallets with stretch wrap Included Standard wooden pallets (Drums) 48” x 48” with plastic stretch wrapping Standard wooden pallets (Pails/Cases) 48” x 40” with plastic stretch wrapping Pallets with banding Included Standard wooden pallets (Drums) 48” x 48” with plastic stretch wrapping Standard wooden pallets (Pails/Cases)48” x 40” with plastic stretch wrapping Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 17 Service After Shipment Return Materials KOST® USA’s customers may request the return of KOST® USA products to a KOST® USA facility. All product returns must be authorized by KOST® USA prior to returning any material to our facilities. KOST® USA’s standard policy is to accept product returns under the following conditions: • Original drums with seals intact. Partial drums will not be accepted. • Within six months of original purchase. • Product must be able to be used or resold (material cannot be brought back to a KOST® USA facility if it is determined that the only outlet is disposal). • Original KOST® USA production batch number(s) must be provided. • No bulk returns are permitted. • Return of exclusive products will be evaluated on a case by case basis. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 18 Service After Shipment Return Materials (continued) A credit will be issued to the customer upon receipt of the drums less a market value adjustment and a restocking charge as noted below: Material Restocking Fee & Terms of Return Less than six months from Invoice price less 25% restocking; customer pays return date of purchase freight and any customs fees. Market Value Adjustment KOST® USA will asses the market price at the time of the sale and compare to the market value at the time of the return. The credit applied will draw from whichever price is lower less the restocking fee. Customers should direct all requests for the return of material to our Customer Service email address: [email protected]. This team will follow-up with the customer and manage the product return process. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 19 Service After Shipment Closing Statement The services in this document are subject to the Terms and Conditions of any written supply agreement or KOST® USA’s Terms and Conditions of sale; collectively called “Standard Terms.” In the event of a conflict between the Standard Terms and this document, the Standard Terms will prevail. KOST® USA will not be responsible if events beyond the control of KOST® USA prevent or impair KOST® USA’s ability to provide the services indicated. With each shipment, KOST® USA strives for complete customer satisfaction. KOST® USA values input from our customers to help drive continuous improvement. KOST® USA’s Customer Service team is dedicated and focused to help in this effort. Should you have a concern with an order after it has shipped, this team will work directly with you to resolve any issues. Customers are requested to communicate directly with our Customer Service Representatives via email at: [email protected] It’s more than business, it’s personal. KOST® USA, Inc. is a leading manufacturer and marketer of more than 100 premium antifreeze/ coolants, heat transfer fluids, fire resistant hydraulic fluids, chemicals, and natural gas dehydration products. We proudly serve the Automotive and HD retail aftermarket, traditional channel, OEM and Oil & Gas markets throughout the United States, Mexico and Canada. Our Mission drives our behavior every day; we are trusted, entrepreneurial partners with our customers, creating joint growth by providing preferred liquid technologies and passionate service. Antifreeze/Coolants | Heat Transfer Fluids | Fire Resistant Hydraulic Fluids | Natural Gas Dehydration Products 1-800-661-9391 | www.kostusa.com 20
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