us inbound supply chain overview - qvc
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US Inbound Supply Chain Overview
Transportation of Product to QVC’s Distribution Center Network
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This document highlights the key requirements for shipping product to our Distribution Centers. It does not replace Inbound Supply Chain Manual which can be obtained once
full access to the QVC Vendor Portal is given.
Summary
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
• Goal: Provide a high level over view of the QVC US
Inbound Supply Chain process and freight terms
• What is covered?• About QVC US Inbound Supply Chain
• Freight Terms
• Compliance to Policy
• Vendor Chargebacks
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About QVC US Inbound Supply Chain
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
5
1,100+100M+ units received into our distribution centers annually
active vendors with open purchase orders (“POs”)
distribution centers (“DCs”)
• QVC ships product
into all 5 distribution
centers
• The DC is noted on
the QVC PO
• If product is going
into multiple DCs, a
separate PO will be
created for each DC
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Freight Terms
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Purchase order freight terms are negotiated with your buying office
IMPORT COLLECT (FOB)for QVC managed international transportation
DOMESTIC COLLECT (FCA) for QVC managed domestic transportation
PREPAID (DDP or DAP)for vendor managed transportation
Let’s explore these freight terms
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Responsibility by Freight Term: OVERSEAS PRODUCTION
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Export
CustomsImport
Customs
Point of
Departure
Point of
Destination
Inland
TransportationOcean
Transportation
Loading of
GoodsQVC' Distribution
Center Yard
Vendor’s Overseas
Factory
Merchandise Price = Based upon delivery occurring at QVC distribution center
Vendor managed shipments. QVC takes ownership/responsibility of product at the distribution center yard.
The vendor is responsible to manage all processes and costs associated with importing product to this point.
Vendor is responsible to deliver product to the “point of hand off” between the dates indicated on the QVC Purchase Order.
= Vendor’s responsibilities = QVC’s responsibilities
Inland
Transportation
Prepaid(DDP or DAP)
Merchandise Price = Based upon delivery occurring at the domestic facility
QVC managed domestic shipments. QVC takes ownership of product at the vendor’s domestic
(US) location and pays all freight costs thereafter.
Domestic
Collect(FCA)
Vendor’s Domestic
Facility (Domestic
Collect Only)
Merchandise Price = Based upon delivery occurring at the named origin port or freight forwarder/consolidation facilityNote: we do not need to know the vendor/factory’s “first cost”
QVC managed international shipments. QVC takes ownership/responsibility of product at the named
origin port or freight forwarder/consolidator and pays all freight costs thereafter
Import Collect
(FOB)
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Responsibility by Freight Term: DOMESTIC (US) PRODUCTION
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Merchandise Price = Based upon delivery occurring at QVC distribution center
Vendor managed shipments. QVC takes ownership/responsibility of product at the distribution center yard.
The vendor is responsible to manage all processes and costs associated with importing product to this point.
Merchandise Price = Based upon delivery occurring at the domestic facility
QVC managed domestic shipments. QVC takes ownership of product at the vendor’s domestic
factory and pays all freight costs thereafter.
Vendor’s Domestic
FactoryInland
Transportation
Vendor is responsible to deliver product to the “point of hand off” between the dates indicated on the QVC Purchase Order.
= Vendor’s responsibilities = QVC’s responsibilities
Prepaid(DDP or DAP)
Domestic
Collect(FCA)
QVC' Distribution
Center Yard
Compliance to QVC Policy by Freight Term
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QA Pre-shipment Qualifiers
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
On-time delivery
QA pre-shipment qualifiers must be completed to proceed with these steps
Failure to complete QA pre-shipment qualifiers will negatively impact
your ability to ship or deliver on time
• Refer to the QA requirements for more information on how to comply with
the QA pre-shipment qualifiers
QA first piece sample submitted and approved
Preshipment Finished Goods Audit (PSFGA) inspection approved, when required(
(
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Compliance to Policy: Prepaid
Process Requirement
Submit an ASN
(Advanced Ship Notice)
Create a Load
Secure Delivery Appointment
Submit a Shipment Notice
Deliver Product to QVC’s DC
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
NOTE: QVC does not have EDI–all required information must be entered manually in QVC’s vendor portal
Submit an ASN Create a LoadSchedule a Delivery
AppointmentUpdate Shipment Notice Deliver Product to QVC’s DC
QA pre-shipment qualifiers must be completed to proceed with these steps
At least 10 days prior to DO NOT DELIVER AFTER date on PO.
Can be completed anytime after PO approval date.
Create load number(s) through the Shipment Notice application. Load number is required to schedule a delivery
appointment.
Unique load number required for each trailer/container.
Trailers – At least 10 days prior to DO NOT DELIVER AFTER date on PO.
Containers – At least 10 days prior to ESTIMATED PORT ARRIVAL date.
Parcel shipments do not require a delivery appointment
The appointment must fall within the DO NOT DELIVER BEFORE and DO NOT DELIVER AFTER dates on the PO
Using a QVC Preferred Carrier will allow the vendor to obtain a “drop” appointment. Otherwise, a “Live”
appointment will be assigned. There are a limited number of Live appointments available at each DC and goods
must be delivered within 1 hour of the live delivery appointment.
Must be submitted once a Load has left the vendor’s facility and before it reaches QVC. This will update
the Load’s status to ‘IN TRANSIT.’
Shipments must deliver between the DO NOT DELIVER BEFORE and DO NOT DELIVER AFTER dates to the
appropriate QVC distribution center
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Compliance to Policy: Domestic Collect
Process Requirement
Submit an ASN
(Advanced Shipment Notice)
Have Product Available for Pick-up
Submit a Shipment Notice
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
QA pre-shipment qualifiers must be completed to proceed with these steps
Submit an ASN Have Product Available for Pick-up Update Shipment Notice
At least 10 days prior to DO NOT SHIP AFTER date on PO.
Can be completed anytime after PO approval date.
Product must be ready to be picked up by a QVC carrier between the DO NOT SHIP BEFORE
and DO NOT SHIP AFTER on the QVC Purchase Order.
QVC or QVC’s carrier will provide the estimated pick up date/time, carrier information and the
Load Number to the vendor’s primary/key contacts.
SHIP FROM address on PO must reflect where QVC will pick up product.
Must be submitted once a Load has left the vendor’s facility and before it reaches QVC.
This will update the Load’s status to ‘IN TRANSIT.’
NOTE: QVC does not have EDI–all required information must be entered manually in QVC’s vendor portal
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Compliance to Policy: Import Collect
Process Requirement
Enter a Booking Request
Receive Authorization to Ship
Deliver Product to QVC’s Freight Forwarder /
Consolidator
Submit Import Documentation
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Submit a Booking Receive Authorization to ShipDeliver Product to QVC’s Freight
ForwarderSubmit Import Documentation
QA pre-shipment qualifiers must be completed to proceed with these steps
Submit booking request to QVC’s freight forwarder at least 21 days prior to DO NOT SHIP
AFTER date on PO.
Can be completed anytime after PO approval date.
Vendor must receive authorization to ship from QVC’s freight forwarder prior to delivering
product to QVC’s designated Freight Forwarder/Consolidator.
Shipments must be delivered to QVC’s Freight Forwarder / Consolidator between the
DO NOT SHIP BEFORE and DO NOT SHIP AFTER dates on the QVC Purchase Order
prior to the provided vessel sailing cut off date.
Vendor must provide import documentation to freight forwarder within 5 days of vessel sailing.
NOTE: QVC does not have EDI–all required information must be entered manually in QVC’s vendor portal
Vendor is responsible to pay costs associated with transporting and delivering product to the named location. QVC will take possession of the
freight at the named location and manage transportation from that point forward. QVC’s freight forwarder will partner with QVC to determine
the vessel/flight selection and container consolidation configuration.
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Import Collect – Ports Serviced
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Origin
1 Hong Kong
2 Xiamen
3 Shanghai
4 Shenzhen
5 Ningbo
6 Tianjin
7 Jakarta
8 Busan
9 Manila
10 Colombo
11 Taiwan
12 Laem Chabang
13 Ho Chi Minh City
14 Hanoi
15 Nhava Sheva
16 Cambodia
17 Chennai
Haifa (Israel)
Dublin (Ireland)
Leixous (Portugal)
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Vendor Chargebacks
Conf i den t i a l – For i n fo rmat i on purposes on l y , no t fo r d i s t r i bu t i on , a l l r i gh ts express l y reserved .
Failure to comply with policies will result in Vendor Chargebacks (VCBs)
• First time shipments will be exempt from VCBs. Vendors will be contacted to review the policy
to ensure they understand and are able to comply moving forward.
• Vendors who maintain a 95% or better compliance rate will remain at the baseline fee
• At the start of each calendar year, all vendors who are at a higher VCB threshold will be reset
to the baseline VCB rate.
Infraction Baseline Fee After 5 occurrences After 10 occurrences
Failure to submit ASN on time
$250 per occurrence $500 per occurrence3% of PO Value,
max $5000 per PO
Inaccurate ASN
Missed Live Appointment
Unsafe Load
Unauthorized Partial Shipment
Non-compliance with pack slip instructions
Non-compliance w/freight instructions
Non-compliance w/ “Ship To” instructions
Over Shipment
VCB + inbound & outbound freight costs incurred
Late Shipment 0.5% of PO for each day late, max $10,000 per PO
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