Russell Stover Candies Vendor Compliance Policy
LAST UPDATED OCTOBER 2009
The information outlined below details what Russell Stover Candies expects
from its vendors. The purpose of this updated policy is to communicate what
is required to be a vendor and to help ensure on time delivery of acceptable
supplies for our manufacturing process.
Our goal is to receive supplies, without defect,
in a timely fashion to support our manufacturing facilities, while minimizing
inventory.
In today's manufacturing environment, proper supply chain management
must be in place to meet our customers more demanding terms. This Compliance
Policy has been established to enable Russell Stovers and our Vendors to work
together to optimize our supply chain and meet our end customer demands. The
program identifies areas that can limit the success of proper supply chain
management which results in lost manufacturing time and lost sales and profits
for everyone. As a last result, chargebacks for non-compliance will be issued.
Please read
all information carefully. Your company will be held to these standards.
Russell Stover will automatically deduct for non-compliance using the attached
form "Vendor Non-Compliance Credit Memo Request". Remittance advises will contain
the corresponding deduction code against a purchase order.
Please note that Russell Stover Candies requires that all deliveries
of items on pallets to be on New GMA 40x48 pallets. If you have any questions,
you may contact the company at 816-842-9240.
| A. Merchandise Receipts |
| Requirement |
Non-Compliance Action |
Effective Date |
| 1. |
Shipment must ship on time or deliver
on time, per RSC instructions. |
$500.00 per incident |
Nov. 1, 2009 |
| 2. |
Shipment must be received complete as
ordered, or as approved by buyer in writing. |
$500.00 per incident |
Nov. 1, 2009 |
| 3. |
Amount shipped must fall within tolerance
of 0% under- / +5% overrun to quantity ordered. |
Overage kept, amount invoiced + $500.00 processing run fee
chargeback |
Nov. 1, 2009 |
| 4. |
Samples must be furnished of
all display corrugate prior to shipment unless otherwise approved
by the buyer. |
$500.00 fine per component invoiced |
Nov. 1, 2009 |
| B. UPC Compliance |
| Requirement |
Non-Compliance Action |
Effective Date |
| 1. |
UPC must be of proper quality and scan-ability. |
First occurrence: $ 2,000.00
Second occurrence: $ 5,000.00
Third occurrence: $ 25,000.00 |
Nov. 1, 2009 |
| 2. |
Scan result must match human readable
information. |
First occurrence: $ 2,000.00
Second occurrence: $ 5,000.00
Third occurrence: $ 25,000.00 |
Nov. 1, 2009 |
| 3. |
Merchandise must not be marked
with a UPC assigned to another item. |
First occurrence: $ 2,000.00
Second occurrence: $ 5,000.00
Third occurrence: $ 25,000.00 |
Nov. 1, 2009 |
| C. Shipment Routing |
| Requirement |
Non-Compliance Action |
Effective Date |
| 1. |
No unauthorized air
shipment will be accepted by Russell Stover. |
Freight difference + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 2. |
Ship VIA correct mode of transportation according to weight,
carton, linear footage guidelines and routing instructions provided by
Russell Stover. |
Freight difference + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 3. |
Must not ship collect when
prepaid terms. |
Freight difference + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 4. |
Shipments must be
released with correct carriers as specified in
routing guidelines. |
Freight difference + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 5. |
Shipments must be
made from ship point stated on purchase order. |
Freight difference + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| D. Shipping Requirements |
| Requirement |
Non-Compliance Action |
Effective Date |
| 1. |
Complete and accurate Certificate
of Analysis must be received no later than shipment. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 2. |
Complete packing list must
be provided with shipments as specified in shipping instructions. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 3. |
Bill of Lading information
must be accurate. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 4. |
Carton size and weight must meet specifications. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 5. |
Non-conveyable cartons
must not be shipped without authorization. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 6. |
Cartons must be sealed
properly. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 7. |
Carton corrugated must
meet specifications. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 8. |
Cartons must be received
with proper markings, including core tags on
roll stock. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 9. |
All shipments must be on new 40 x 48 GMA hardwood pallets. |
$50.00 pallet fee + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 10. |
Shipment must be packed
properly by vendor. This requirement includes
using corrugated which meets specifications and properly protecting the
product. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 11. |
Shipment must arrive in acceptable condition. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 12. |
Raw Materials or Pack
and Wrap item for Sugar Free Product must contain
the #347 Green Label on Carton. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 13. |
Raw Materials or Pack
and Wrap item for Low-Carb (Net Carb) Product
must have Red Label on Carton. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 14. |
Raw Materials or Pack
and Wrap item for Calorie Smart Product must
have Yellow Label on Carton. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 15. |
Raw Materials or Pack
and Wrap item for Diabetix/Sucratrol Product
must have Orange Label on Carton. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| 16. |
Orders must be shipped
in full carton quantities—no partial cartons. |
$1.00 per carton + $200.00 processing fee chargeback |
Nov. 1, 2009 |
| E. Invoicing |
| Requirement |
Non-Compliance Action |
Effective Date |
| 1. |
Incorrect Purchase Order
number referenced on invoice. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 2. |
More than one Purchase Order
number listed per invoice. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 3. |
Double Billing requiring
additional time in research. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 4. |
Quantity variance i.e. between
invoice and purchase order/receiver. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 5. |
Price variance i.e. between
purchase order. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| 6. |
Incorrect receiving location listed on invoice. |
$200.00 processing fee chargeback |
Nov. 1, 2009 |
| F. Defective Material |
| Russell Stover Candies' continued success depends upon receiving raw
materials and packaging that meet our specifications on a continuous basis.
Suppliers to RSC will be held liable for all costs associated with shipping
defective materials to us, including any costs generated in the administrative
and legal activities of filing a claim. |
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