3RD PARTYLOGISTIC (3PL) FORWAREHOUSE

CONTENTS

ABOUT THIS MANUAL

SUPPLIER QUALITY APPROVAL PROCESS

CONTROL OF RECORDS

PEST CONTROL

CO-SHIP/CO-STORE TAINT

QUARANTINE STOCK

BLOCK & RELEASE

TRACEABILITY

PICKING

PALLET ASSEMBLY

STRETCH WRAPPING

PALLET QUALITY NON-CONFORMANCE REPORTING

- ABOUT THIS MANUAL

SCOPE

- This manual has been written for use by all 3P Warehousing Providers. A Warehouse Provider, in the context of

this manual, is identified as a company which is contracted to:

- Receive deliveries of Finished Goods (FG) from any of the following locations:- Unilever Sourcing Unit’s (SU’s)- Unilever Distribution Centers (DC’s)- Third Party Manufacturers (3PM’s)- Re-packers- Suppliers- Store the FG’s according to Unilever requirements - Despatch the FGs according to Unilever requirements

Each topic is described using Golden Rules. These rules consist of a poster listing the Golden Rules and showing

pictures of good and bad examples of each rule. Then there is a booklet that accompany’s each poster which gives a

bit more detail about each of the rules if needed.

Clicking on the poster or booklet icons takes you to where these documents are stored so you read/print them out.

SUPPLIERQUALITY APPROVAL PROCESS

SQA it is a process to assure compliance of suppliers to manufacture, store or transport product in a safe and legal

way through certification issued by recognized external certification bodies (audit companies).

Each of your warehouses must successfully complete this qualification step and subsequently maintain their approved

status in order to supply Unilever with warehousing services.

Our Supplier Quality Assurance process uses Certification Audits against globally recognized Certification Standards.

Certification audits are conducted by licensed audit companies, not by Unilever personnel.

Our SQA process is managed through the Unilever Supplier Qualification System (USQS). USQS is administered by a

third party contracted by Unilever. You will be asked to register each of your warehouses in USQS. Thereafter, all

steps in the SQA process will be managed in the USQS system.

Each warehouse will have a risk classification dependent on their size (number of pallets handled annually), and what

they store:

High Risk Warehouse:

temperature controlled ie: frozen or chilled storage

> 20,000 pallet capacity at any temperature

hub warehouse (combined (FG/RM/PM)

Low Risk:< 20,000 pallet capacity

Ambient Temperature

SUPPLIER QUALITY APPROVAL PROCESS

A warehouse will have a risk classification dependent on its size (number of pallets handled

annually), and what it stores. The flow chart below illustrates the SQA process for warehouses:

3PL LOGISTIC

Unilever Supplier Qualification

System - USQS

Risk Classification

High Risk Warehouse:

3 Frozen / Chilled Warehouse3 Temperature Controlled Warehouse3 Hub Warehouse3 (combined FG/RM/PM)

Medium Risk Warehouse

3 Ambient Temperature Warehouse

Low Risk Warehouse

3 NONE

SQA AUDITHigh Risk

Medium Risk- Annual Audit

- Every 2 Years

3PL Logistic Approved

Approval for SQA Means: Certification based on

Accepted Audit Protocol

Business Case for Dispensation: Required if Non-Approved

supplier needs to be used

• Temporary Dispensation• Long Term Dispensation

CONTROL OF RECORDS

All records required as part of your WMS or local management system, including those

that demonstrate the effective control of product safety, legality and quality, must be kept

for a minimum of 3 years or in line with local requirements, whichever is longer

All records, whether paper or electronic, must be identifiable using a unique numbering

system. They must be stored in such a way that the risk from damage, deterioration and

loss is minimized. The records must be legible and easily retrievable.

Obsolete paper copies of records/documents must be disposed of in a controlled manner

which is appropriate for the content of the record/document.

Obsolete records/documentation must be disposed of by permanent deletion from the

network/relevant database

PEST CONTROL

A complete pest control management programme must be in place and maximum

attention be given to prevent pest occurrence in the Site.

If you decide to use a professional third party company to manage pest control,a service contract must be clearly defined and reflect the pest control activities which

have been put in place for the Site.

Where a site manages their own pest control, it must ensure that all pest control

operations are undertaken by trained, certified and competent staff with sufficient

training to select appropriate pest control chemicals, application methods and

understand the limitations of use.

should an infestation be identified, immediate action should be taken to eliminate the

hazard and this should be documented. You must inform your Unilever contact

immediately. Action shall be taken to identify, evaluate and authorize the release of

any product potentially affected.

For more detail see the GWT section 2.12. Go to Supporting Documents to view

Global Warehouse & Transport Standard, section 2.12, for more details about Pest

Control requirements.

CO-SHIP/CO-STORE TAINT

Definition:

Taint- a trace of a bad or undesirable substance or quality.

- to contaminate or pollute something.

Unilever produce many different types of products in hundreds of different types of

packaging. We always want to ensure that our consumers buy the best quality products to

eat, drink, wash or clean with.

One of the biggest challenges we face, because of the diversity of products we

produce, is storing them together without them affecting each other.

All of our Finished Goods are assigned a taint classification based on:

a- the actual product itself

b- what it is packed in.

These taint classifications are based on a product’s ability ‘to taint’ other items or ‘to be

tainted’ by other products.

We have developed a Taint Matrix which clearly shows what can and can’t be stored together.

It is essential that you adhere to the rules defined in the taint matrix

Go to Supporting Documents to view Co-Ship/Co-Store Standard and Guidance

documents and latest version of the Taint Matrix

TAINTGOLDEN RULES FOR SUPPLY CHAIN

Certain types of Finished Goods we produce automatically go into a ‘Quality Inspection’

status as soon as they have been produced. This is because they need testing carrying

out on them, prior to shipping to the customers, to ensure they are safe and fit for use.

This ‘Quality Inspection’ status means that the product is, in effect, quarantined and

cannot be shipped.

It is essential that you manage Quarantine stock effectively to ensure it is not shipped

before the appropriate release or approval to ship has been given.

QUARANTINE STOCK

BLOCK & RELEASE

Quality Block and release is the process by which product is blocked in the system for

a quality related issue and then, potentially, released once the reason for blocking in

the first place has been investigated and the product deemed fit for release.

When product is put into blocked status it is because it has been confirmed/or there is

a possibility that, there are quality issues with the product.

The reason for the block could be anything from a small issue which turns out to not

affect the product and we therefore end up releasing it into the trade for sale. But it

could also be because there is a serious issue with the product which could, in the

very worst case, cause serious harm or even death.

Traceability, in terms of our business, is the ability to be able to trace product so that

we know where it is at any given time.

Being able to trace product is essential in case we need to recall product in the event

of a quality issue coming to light.

TRACEABILITY

PICKING

The order picking or order preparation operation is a fundamental

process of all warehouses.

It involves taking a customer order, which consists of a small number of

packs (ie: not a full pallet) of different sku’s and assembling them onto one

pallet for shipment to the customer.

This makes order picking one of the most controlled logistics processes.

It is important to follow a few basic rules when assembling pick pallets

to ensure that our customers receive good quality deliveries from us

PALLET ASSEMBLY

Poor pallet assembly can lead to many issues in the supply chain and have a huge

impact on the quality of the product that our customers receive from us.

It can cause issues with loading, shipping, receiving and storage. It can

generate stability issues which, in the worst case, can lead to collapsed loads.

Just taking time to assemble a pallet correctly and follow a few simple rules can

make a big difference.

STRETCH WRAPPING

The prime purpose of stretch wrap is to secure the load through the whole supply chain.

Getting your stretch wrapping wrong can be disastrous as the pictures below illustrate.

There are however many benefits to getting it right, including cost saving, carbon footprint reduction and

increased levels of customer service.

Stretch wrap can be applied by automated or semi-automated machines, or manually.

Whichever method you use, there are a set of rules for you to follow to ensure the pallet is wrapped correctly.

If you use an automated machine we also have some rules and guidance to help you ensure that your machine

and the film your are running on it have an optimised set up

STRETCHWRAPPING

PALLET QUALITY NON-CONFORMANCE REPORTING

The quality of the pallets that we produce and ship within Unilever is receiving

increased focus from the business because we know that there is a direct link

between damaged cases and pallets, and the damages to our consumer units that

we see on shelf.

The best place to check the quality of pallets that our SU’s, DC’s and 3PM’s are

producing is at inbound DC. This is why reporting Pallet Quality Non Conformances

is an essential part of a DC’s daily tasks.

The DC is our ‘eyes and ears’, letting us know what the quality of pallets they are

receiving from our SU’s, other DC’s and 3PM’s is like.

Letting us know what these issues are on a monthly basis allows us to produce a

Global Monthly pallet Quality non-Conformance report which is then distributed to

all the quality and logistics people around the globe.

The data in the report allows our manufacturing facilities to see exactly what issues

the pallets they produce are causing. They can they put focused improvement plans

in place to address these issues.

See Supporting Documents to access to guidance on how to complete the Pallet

Quality Data Collection Template and Pallet Quality Standard and to view the Pallet

Quality Standard.

DOCUMENT CONTROL

RevisionHistory

Issue Date UpdatedBy Reason forUpdateRevision

Number

Issue No

Date

AuthorContacts

Evaluator

Approver