MASSEY'S SHIPPING, RECEIVING, and PURCHASE ORDER POLICIES

Message to Trading Partners
Purchase Order Requirements
Ticketing
Packaging
Packing List
Labeling
Return To Vendor (RTV)
Non-Merchandise Shipments:
Samples, Displays, Promotional Materials, Etc.
Routing/Transportation
Invoices
Massey's Guide General Inquiry & Exception Request Procedure
Massey's Guide Violation Inquiry Policy
Massey's Guide Violation Chargeback Schedule

Message to Our Partner Vendors [TOP]

Massey's has created a guide in order to provide our vendors an up-to-date, comprehensive reference to our shipping/receiving/purchasing strategies. We have posted this document on the Internet in order to provide a convenient method for communicating our requirements.

This revised guide is effective 7/19/08 and supersedes all previously issued or posted instructions.

Thanks for helping us be as efficient as possible in serving our staff and customers.

PURCHASE ORDERS [TOP]

1. Make sure your Purchase Order is valid.
   
   It is important to make sure that the PO is valid prior to shipping merchandise. Telephone orders, verbal commitments, handwritten orders, or worksheets are not valid purchase orders and will not be honored.
   
   
2. All Purchase Orders must arrive at the Massey's DC within the Delivery Windows
   
   Massey's specifies a delivery window as the period between the ‘Ship’ date and the ‘Cancel’ date. This is clearly noted on the PO. The ‘Ship’ date on the PO is the first day that we will accept your shipment at our warehouse. Shipments arriving at our warehouse before or after the delivery window will VERY LIKELY be refused. We will not pay any freight or restocking charges on purchase orders refused for shipping too early or past cancel.
   
   
3. All Purchase Orders must be shipped complete:
   
   Ship all PO's complete. If you cannot ship a PO complete, it is encumbent upon the rep or the CSR to notify our buyers as soon as possible.
   
   In the event items are backordered, Massey's WILL NOT pay an additional freight charge. DO NOT ship these as Bill To our account. We will inspect the backorders for the shipper's ID and chargeback any backorder charges plus a reasonable fee to process.
   
   
4. All Purchase Orders must be shipped AS WRITTEN:
   
   Substitutions, quantity changes, or ship date changes must be obtained from the Buyer in writing in the form of an updated valid purchase order. A verbal approval or confirmation is not sufficient. Please see the section above titled ‘Make sure your Purchase Order is valid’ for further information. Item received that cannot be matched to PO's will be held for vendor call tag and are subject to processing charges.
   
   
5. PO numbering Mechanism:
   
   Our PO's follow a very specific format. Starting for Spring 09 Preseasons, our PO will consist of the following format.
   [OUR VENDOR CODE]-[STORE CITY ABBREVIATION]-[SEASON]-[BUYERS INITIALS]-[DELIVERY NUMBER]
   For example; a Patagonia PO for delivery to New Orleans consisting of Men's clothing, would look like:
   PAT-NO-S09-DS-01.
   
   If you have a PO that looks like Camelbak#2 or Rep Name 3, it is not valid. We will reject it at the door.

The PO number must be Included on EVERY document, shipping carton and/or correspondence relating to the PO.

Special Orders for our customers are exempt from these requirements and will consist of the customer's name.

Ticketing [TOP]

In our continuing effort to move merchandise through our DC to the sales floor as quickly and efficiently as possible, we STRONGLY request the use of barcodes on all merchandise. Substantial deferrence will be paid to manufacturers who use barcodes vs. suppliers that don't.

To process UPC codes efficiently, and get your products out to our sales floor quickly, we need delivery of either a MASTER LIST of UPC codes EACH SEASON or a filtered list of UPC codes for the items we have on order.

PLEASE EMAIL UPC CODES TO BUYERS@MASSEYS.NET on either an Excel Spreadsheet, comma or tab delimited file, or text document. PDF IS NOT an acceptable format for data entry.

Packaging [TOP]

Massey's goal is to take advantage of all available technology to enhance our efficiencies and improve upon our supply chain. We currently can process both cross-dock (store destined pre-pack) and bulk orders.

Cross Dock means a shipment that is 100% ready to be re-routed to one of our stores. The PO is on the box, the packing is 100% accurate, and documents are attached to the OUTSIDE of the box. This is our preferred method for initial deliveries in each season. Cross Dock shipments CANNOT be shrink wrapped or palleted with other Cross Dock orders.

Our secondary PO's will usually come inthe form of Bulk Order PO's that we will process and separate in our warehouse.

The third type of PO we might submit is DROP SHIP. These are usually fulfillment of internet originated orders. These PO's will be destined for the final customer and need to include agreed upon paperwork in the box. We will also need to work with your warehouse to determine the ideal method for transfer of tracking data.

Lastly, each of our stores has the authority to place special orders on behalf of their customers. These will usually be single item orders that use the customer's last name as the PO. There will be no paperwork or email associated with these orders.

Both Cross Dock and Bulk Orders have the same packaging requirements:

• Do not combine or mix multiple PO’s in the same carton or on the same pallet.
• All sets and coordinates sold as one UPC must be packaged together, top/bottom on same hanger or bundled in a clear poly bag.
• Any shipment containing more than 20 cartons must be shipped on pallets, stretch wrapped.
• We require that all orders be palletized so that minimal handling is required to sort and process your orders. If cartons for more than 1 PO are stacked on the same pallet the cartons must be organized by PO#. DO NOT mix random PO’s on multiple pallets.
• Mark all fragile cartons with a fragile label. Use corrugated packing materials of at least 225# and a container that will prevent product movement and breakage.
• Do not use any of the following materials when packing: Pins, excessive tissue paper, or excessive cardboard or any other material that will require additional handling or disposal.

SAFETY NOTE: Do not use safety pins, straight pins, or pins of any type.

• Seal cartons securely with tape. Do not place bands, straps, or string on cartons.
• Use a shipping carton that fits the shipment. Do not over-pack cartons.
• Carton strength should be a minimum of 32 ETC (edge test crush) to prevent crushing during transit. Large or heavy cartons may require a higher ETC.
• Massey's does not pay packing, shipping or handling charges.
• Massey's does not pay for packaging materials.

Packing List [TOP]

Requirements:

• A Packing List must be included with every order.
• Any box that contains a Packing List should be clearly marked
• There must be a separate Packing List for every PO# within a shipment.
• Contents labels or markings on the outside of the cartons are not packing lists.

The Packing List must include the following information:

1. Our PO number
2. Line for every item or grid for each style containing style #, description, size, color and quantity shipped.
3. Total # of units contained in the shipment associated with that PO.
4. Total # of boxes for the PO.

Carton Labeling [TOP]

A Shipping Label and a Carton Contents Label must be attached to every carton. One label including all information is acceptable.

Shipping Label Requirements:

• Massey's requires that you affix a shipping label to each carton.
• The shipping label must contain the following accurate information:
• Ship To and From addresses
• Purchase Order #
• Sequential carton count (1/6, 2/6, etc.) for the PO #
• Carton Contents Labeling Requirements:
• Must list the UPC
• Style number
• Description
• Quantity of each UPC # enclosed in the carton
  

Returns [TOP]

Massey's processes 2 types of merchandise returns:

1. Non-Ordered (Overage & Substitution)
2. Damaged/Defective

Non-Ordered Merchandise (Overages & Substitutions) Returns:

• Massey's may accept the non-ordered merchandise at its discretion.
• Massey's will inform the vendor of its intent to return the merchandise and request return authorization (RA).
• All freight associated with these returns will be charged to the Vendor.
• Massey's will ship via a Vendor’s preferred carrier on the Vendors’ account number if requested in writing when Return Authorization is submitted.
• If the RA is not received with-in 10 days of the request, Massey's will asses a storage fee of $50 per day not to exceed the value of the merchandise.
• Vendor will be subject to Massey's Guide Violation Chargebacks.

Damaged/Defective Merchandise Returns:

As a full service customer driven store, Sun & Ski Sports is committed to ensuring that goods sold are of the highest quality and free of defects. Goods not meeting these criteria will be returned to vendors as follows:

Customer-Owned Merchandise

• Customers will be directed to return defective goods directly to vendors for repair or replacement. Sun & Ski Sports will not return goods on customers’ behalf.
• Companies need to supply processing instructions for their warranty service to their Massey's Buyer. Instructions will be published on Massey's s Intranet site for stores to reference.
• The ‘warranty ’intranet directory will be established March 1, 2005. Vendors may request being added or deleted on 10 days advance written notice. Massey's reserves the right to reject vendor’s instructions if they are unreasonably burdensome to customers or RCI

Massey's -Owned Merchandise

Freight and handling cost for defective merchandise can be burdensome. Massey's is willing to establish a defective allowance with vendors. If such allowance has not been established, Massey's will return defective goods to vendors for credit based on the following:

• Vendors need to provide to their Massey's Buyer the ‘ship to’ address and email contact information for obtaining a Return Authorization (RA).
• All returns will be assessed a freight charge for actual costs to return the goods and a charge for processing. Vendors can avoid such charges by issuing a credit for the defective goods in lieu of return and Massey's will discard the goods.
• If a request for Return Authorization is not responded to within 30 days, Massey's will discard the goods and take a credit against amounts due for the cost value of the goods plus a processing fee.
• Defective goods are returned only for credit. Replacement goods will not be accepted.

All merchandise returns are subject to the following requirements:

• All returns are for CREDIT ONLY. Massey's does not accept repaired or replacement merchandise.
• All shipping charges associated with RTV merchandise will be charged to the vendor. This includes original inbound and inter-company shipping charges.
• Shipments weighing 300 pounds or less will be returned to the vendor via small parcel carrier prepaid (at the vendors’ expense).
• Shipments weighing over 300 pounds will be returned to the vendor via common carrier, freight collect.
• Massey's will not accept Call Tag returns. Massey's will ship via a Vendor’s preferred carrier on the Vendors’ account number if requested in writing when Return Authorization is submitted.
• Any RTV shipment refused by vendor will be abandoned to carrier for salvage. We will not be responsible for re-payment of these goods.
• Vendors are responsible for filing claims with the carrier when a return shipment is delivered short or damaged.
  

Non-Merchandise Shipments: [TOP]

Items such as product samples, promotional materials, point-of-purchase displays, etc. are considered by Massey's as non-merchandise items. These items should not be shipped to any Massey's location without prior written authorization from the Massey's Buyer or Visual Merchandising Department. These items are subject to the following restrictions:

• Vendors are required to request shipping/routing instructions via e-mail for each of these type shipments.
• Massey's does not pay for these type items.
• Massey's does not pay shipping charges associated with these type items.
• Massey's does not return these type items
• Before shipping catalogs or product promotional materials, a sample must be approved by Massey's .
• These items are to be shipped to the Massey's Distribution Center unless instructed otherwise in writing.
• Employee purchases constitute an agreement between the vendor and the employee. Massey's is not liable for any expenses or costs associated with employee purchase transactions.

Routing/Transportation [TOP]

All shipments are to be consigned to the Massey's Distribution Center unless instructed to ship to another location in writing. Do not ship to our corporate office/billing address.

Retail Concepts, Inc. Distribution Center

4330 Bluebonnet
Stafford, TX 77477

Massey's addresses Routing and Transportation as 4 separate elements:

1. Freight Payment responsibility
2. FOB/Shipment Ownership responsibility
3. Shipment Logistical Requirements
4. Routing

Freight Payment Responsibility:

• If the Terms and Conditions of Purchase require Massey's to pay the freight charges, vendors are required to ship via our preferred carrier, ‘Freight Collect’. UPS is the only carrier that requires a Massey's account number. Contact the DC via e-mail at rciguide@retailconcepts.cc to request our UPS account number.
• If the Terms and Conditions of Purchase require the vendor to pay the freight charges, the vendor may ship via their preferred carrier. The vendor & carrier must adhere to the Shipment Logistics requirements below. The shipping charges must be pre-paid independent of the carrier used.
• Massey's does not pay freight charges for backordered merchandise. Shipper is responsible to ship these items pre-paid, FOB Massey's Distribution Center. All freight charges assigned to Massey's for backordered merchandise will result in violation charges and the full cost of freight for the backordered shipment(s).
• Massey's will not be responsible to pay any assessorial charges including but not limited to:

1. Reweigh and Inspection Fees
2. Notification or Appointment Fees
3. Storage Charges
4. Single Shipment Charges

FOB/Shipment Ownership Responsibility:

As per our Terms & Conditions of Purchase on our Purchase Order, ownership of shipments consigned to any Massey's location is the property and responsibility of the shipper until accepted at the Massey's location. Any damage or loss claims associated with these shipments must be filed by the shipper. Massey's reserves the right to refuse any damaged freight. Massey's reserves the right to deduct the actual cost of the damaged merchandise from invoice remittance.

Shipment Logistical Requirements:

Shipments to Massey's require that the following logistical considerations be addressed:

• Vendors are required to assist in keeping freight costs to a minimum. To that end if there are multiple shipments/PO#’s that can be shipped together to reduce the total freight expense the vendor must ship accordingly. All excessive freight expense will be charged back to the vendor for failure to ship via the most economical method.
• Any shipment containing more than 20 cartons must be shipped on pallets, stretch wrapped.
• We require that all orders be palletized so that minimal handling is required to sort and process your orders. If cartons for more than 1 PO are stacked on the same pallet the cartons must be organized by PO#. DO NOT mix random PO’s on multiple pallets.
• The PO #(s) must be noted on all cartons, pallets and carrier documents.
• For a shipment containing multiple PO #’s, every PO # and the number of cartons for every PO must be listed on the carrier documents.
• Non-preferred carriers are required to secure an appointment time to make deliveries to Massey's . Carriers must call 281-494-3100 between 8:00 am & 5:00 pm CST. They are to ask for receiving, they must give the PO# and the number of cartons to be delivered. An appointment date and time will be given. Massey's does not accept deliveries from non-preferred carrier without a valid appointment. Massey's will not pay for redelivery charges for shipments that are re-delivered due to not having an appointment. Massey's does not pay notification or appointment charges.
• The Massey's Distribution Center does not accept HAZARDOUS MATERIALS merchandise such as cooking stove fuel. These items are to be shipped directly to our retail store as prescribed by the buyer. HAZARDOUS MATERIALS shipments presented for delivery at our DC will be refused. The shipper will be responsible for any charges related to refusal of these type shipments.
• All cartons shipped via UPS must have the Retail Concepts PO# listed in Reference Field #1 or #2.

Routing:

Shipments that Massey's is responsible to pay freight charges must be shipped on our preferred carriers. These routings apply only to points serviced direct (no interline shipments) by the preferred carriers. Shipper is responsible to verify that their facility is serviced direct by our preferred carriers. These shipments must be shipped ‘Freight Collect’ on Massey's s account number (if applicable). Carriers closely monitor shipments for violations to the Linier Foot and Density Rules in their tariffs. Vendors will be charged the full cost difference versus regular freight if in violation of these rules and/or the routing below.

The 3 routing maps below give details for the carriers to use when shipping to our different distribution facilities, Stafford, TX, Chantilly, VA, or Plainview, NY. Please use the correct routing map and follow the appropriate instructions.

All shipments via UPS Parcel Service must be less than 300 pounds BILLABLE WEIGHT.

It is the Vendors responsibility to determine if the billable weight for a parcel shipment is greater than 300 #’s regardless of the actual weight being less than 300#’s. If the billable weight is greater than 300# then the L-T-L carrier option should be used to route the shipment. Please remember that large cartons typically are billed via dimensional weight which is always more than actual weight. UPS also measures every carton that travels through their system for dimensional weight adjustment.

Invoices [TOP]

All invoices are to be mailed directly to our Accounts Payable department. Invoices should NEVER be included with a shipment. Mail to:

Retail Concepts, Inc.
4001 Greenbriar, Suite 100
Stafford, TX 77477
Attention: Accounts Payable

Massey's Guide General Inquiry & Exception Request Procedure [TOP]

Massey's understands the challenges our vendors face in working with a wide variety of compliance issues from multiple retailers. As partners we want to work with you to accomplish our mutual goals.

Massey's accepts General Inquiries and Requests for Exceptions to items in this guide via e-mail at rciguide@retailconcepts.cc. We may call to discuss your inquiry. We will provide a written response, via e-mail.

Inquiries and requests must include the following information:

• Company Name, Contact Name, telephone number and e-mail address.
• Nature of the inquiry or request. Reference the specific section of Massey's Guide pertaining to your inquiry.
• If possible, offer one or more potential solutions that will work for your situation.
• Provide any additional information that will assist us in considering your inquiry.

Massey's Guide Violation Inquiry Procedure [TOP]

Inquiries and disputes must be submitted in writing via e-mail at rciguide@retailconcepts.cc. Faxes and phone calls will not be accepted.

Inquires and disputes must include the following information:

• Company Name, Contact Name, telephone number and e-mail address.
• Nature of the inquiry or dispute.
• PO #, Receipt # & CI # referenced on the Non-Compliance Chargeback Report.
• Provide any additional information that will assist us in considering your inquiry.

Inquiries and disputes will be researched and a written response will be returned via e-mail. If we determine that the charge is valid, Massey's will provide a written explanation. If we determine that the charge was in error, Massey's will provide a written explanation and will issue the payback.

Massey's Guide Violation Chargeback Schedule [TOP]

Our Violation Chargebacks are designed recover freight, administrative and labor expenses associated with non-compliance of these guidelines. Our goal is to partner with our vendors in order to find reasonable methods and solutions for the efficient handling of goods throughout the supply chain.

If a Violation Chargeback has been issued to your company, contact our Compliance Department via e-mail at rciguide@retailconcepts.cc to arrange for assistance in improvement. If corrective actions has been taken and communicated to us in writing with-in 30 days of the chargeback, penalties may be subject to reduction or dismissal at Massey's s discretion (excludes freight charges or repeat offenses).

Charges are calculated on a per occurrence basis. For example, if the vendor fails to put a PO # on the shipping cartons, the freight bill and the packing list, they will be charged, at minimum, $150($50. per occurrence x 3). Charges will be deducted from invoice payments. Repeated violations will be addressed in writing and may be assessed higher violation charges.

Violation Chargeback Schedule [TOP]

Substitutions-Styles, Colors and/or Sizes other than what was ordered
If not accepted the charge will be 10% cost value of returned items plus full freight charge in and out as well as a $50.00 administration fee.
Overages-Any quantity over the amount ordered
If not accepted the charge will be 10% cost value of returned items plus full freight charge in and out as well as a $50.00 administration fee.
Incorrect or Incomplete Price Tickets
$.50 for every unit with-in the incorrect style
Incorrect Hangers
$25 per hour to replace with correct hangers 2 hour minimum charge
Incorrect Packaging
$25 per hour to rework or correct the problem 2 hour minimum charge
Missing or Inaccurate Packing List
$25 per hour to manually check shipment contents 2 hour minimum charge
Incomplete or Inaccurate Carton Labels
$25 per hour to manually verify shipment integrity 2 hour minimum charge

Non-Merchandise Shipment Violations
$25 per hour to research and process 2 hour minimum charge plus full freight in and out
Routing/Transportation Violation
$25 per hour for administrative processing 2 hour minimum charge plus full cost of excess freight charges