Supply Chain Services Handbook - KOST USA, Inc.

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
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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