CROSS DOCK PROGRAM “OVERVIEW” What is Cross Dock? Replenishment Program of processing/receiving purchase orders Multiple store orders are consolidated into one weekly purchase order. Merchandise is delivered to an Exchange Distribution Center (DC) and quickly distributed to the stores. Only vendors with physical shipping points in the 48 contiguous states are permitted on Cross Dock. 2 Cross Dock Goals Reduce transportation costs Reduce store workload expenses Minimize total lead times from order to store sales floor Reduce inventory Provide PO full visibility tracking 3 Types of Cross Dock Cross Dock 2 (XDOC) Preferred Method – 95% fill rate by PO – Supplier picks/packs by line store allocations – No individual store or PO line minimums – Supplier repacks by store as necessary in conveyable cartons: • Minimum: 9x9x4 3# • Maximum: 36x24x24 70# – Each case is required to have the barcoded UCC128 shipping label Cross Dock 3 (XD3) 95% fill rate by PO – – – – 4 Large bulky items Supplier picks full case packs/items No individual store or PO line minimums Each case is required to have the barcoded UCC128 shipping label Processing Cross dock orders are fill/kill Ship inventory that is on hand involving no multi shipments/backorders  Casepack, date extensions or other changes to a Cross Dock PO are not authorized once it has been transmitted If a purchase order cannot be filled on time according to supplier FOB status, it must be canceled in full & the buying team/TMS team notified so the replenishment ordering patterns are not skewed 5 Common XD Pitfalls Not notifying the Exchange a PO has been canceled – The replenishment system will not reorder the merchandise for at least 21 days if open due-in’s are not canceled in our system Ship date changes – If not shipped by the correct date a non compliance fee will apply and TMS might not be able to route FOB Destination vendors comply with the PO 1st destination date FOB Origin vendors comply with the PO requested ship date Holding a PO while awaiting backorders to arrive – The PO will go into pending status and will not be allowed to route (Backorders are not allowed in Cross Dock) 6 Common XD Pitfalls (continued) Advance Shipment Notice (1 ASN per PO with 1 ship date) Must be transmitted as soon as the carrier picks up Deviations result in vendor non-compliance assessments Crossdock POs may only have 1 shipping point. POs closeout after initial receipts Deviations result in vendor non-compliance assessments Crossdock cases must each have the required UCC128 shipping labels Deviations result in vendor non-compliance assessments 7 Questions? Contact: zzHQ [email protected]