GENERAL OBSERVATIONS

In order to present a consistent procedure to all Ace Hardware suppliers, the following policies and procedures were developed. With the cooperation of the Ace merchandising department, Ace suppliers, Ace traffic and the Ace Retail Support Centers. Our intent is to manage the inbound traffic to satisfy our dealers' demands our products and services.

It is the responsibility of every Retail Support Center manager to make certain that these procedures are implemented on a timely basis, so that Ace Hardware can realize the following benefits:

1. Reduced inventory
2. Reduced cube
3. Shorter lead times
4. Management of labor hours
5. Increased service to dealer
6. Increased operating efficiencies

Definition of Truckload Supplier — One supplier making one shipment to the RSC of a complete trailer load by cube or weight, which may include one or more purchase orders.

PREPAID SHIPMENTS

1. Upon the receipt of the RSC purchase order, the supplier will contact the Ace RSC receiving department for a receiving appointment.
2. The supplier will provide the RSC with the following:

• Shipment weight
• Number of pieces
• Number of pallets
• Purchase order number
• First available delivery date (Production lead time + Transit Time to RSC = First Available)

3. The Ace RSC will provide a set appointment (date and hour) for the receipt of the merchandise.
4. Prior to loading the freight, the supplier will fax the RSC a copy of the shipping manifest with the appointment time and date identified.

COLLECT SHIPMENTS

1. Upon receipt of the RSC purchase order, the supplier will contact the Ace Corporate Traffic Department (630) 472-4040, fax (630) 990-9198 for routing instructions.
2. The supplier will provide the following:

• Shipment weight
• Number of pieces
• Number of lines (SKUs)
• Purchase order number(s)
• Pallet quantity
• Total Cube
• First available pick up date

3. The Ace Corporate Traffic Department will provide a set appointment to pick up the product from your facility.
4. Prior to loading the freight the supplier will fax the RSC a copy of the shipping manifest with the appointment time and date identified.

ACE RETAIL SUPPORT CENTER

1. Receiving clerk plus an alternate will coordinate the incoming of supplier calls and appointment log.
2. Every RSC will have this phone manned between the hours of 6:30 a.m. and 4:00 p.m. (local time). (This number will be published to all truckload suppliers.)
3. The RSC will assign appointments based on:

• The supplier's first available delivery date
• The average time required to work the shipment
• The man hours available to receive the merchandise
• Merchandising department priority

MERCHANDISING DEPARTMENT

1. Identify potential truckload suppliers.
2. Enforce strict adherence to these policies.
3. Coordinate seasonal and promotional purchases with traffic department and RSC receiving managers based on these policies and procedures.
4. Review deviations from policies with the offending supplier.
5. In order to allow the RSCs to coordinate receipts of promotional and seasonal goods as close to the date needed as possible, the buyer will communicate all shipping information to the RSC primary contact:

• Number of truckloads
• Weight, pieces, lines
• P.O. number
• Pallet size/Quantity
• Date(s) needed to have product in stock
• First available delivery date
• Any special circumstances