11

Lowe’s CanadaLowe’s CanadaVendor RequirementsVendor Requirements

22

AgendaAgenda

Walk through Vendor PackageWalk through Vendor Package

4 Phased Approach for Vendor Requirements:4 Phased Approach for Vendor Requirements:– Phase 1: Prior to first Purchase Order ReceiptPhase 1: Prior to first Purchase Order Receipt

– Phase 2: Scheduling and ShippingPhase 2: Scheduling and Shipping

– Phase 3: Post Purchase Order ReceiptPhase 3: Post Purchase Order Receipt

– Phase 4: Future ExpectationsPhase 4: Future Expectations

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Vendor PackageVendor Package

Vendor Education PresentationVendor Education Presentation

Appendix A: EDI Quick Reference GuideAppendix A: EDI Quick Reference Guide

Appendix B: HAZMAT LegendAppendix B: HAZMAT Legend

Appendix C: Cross Border – Description of DocumentationAppendix C: Cross Border – Description of Documentation

Appendix D: Sample Process Appendix D: Sample Process

Appendix E: Shipping SpecificationsAppendix E: Shipping Specifications

Appendix F: Label PlacardsAppendix F: Label Placards

Appendix G: Ontario Exempt CertificateAppendix G: Ontario Exempt Certificate

Appendix H: Summary of Container InformationAppendix H: Summary of Container Information

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Phase 1:Phase 1:Prior to First Purchase Order ReceiptPrior to First Purchase Order Receipt

LowesLink LowesLink ®®

EDI EDI

Initial Order ForecastsInitial Order Forecasts

Canadian Standards (CSA) CertificationCanadian Standards (CSA) Certification

HAZMATHAZMAT

Electronic Article SurveillanceElectronic Article Surveillance

BarcodingBarcoding

Cross Border RequirementsCross Border Requirements

Vendor POP SignageVendor POP Signage

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LowesLink LowesLink ®®

Available at Available at www.loweslink.comwww.loweslink.com

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LowesLink LowesLink ®®Informational web tool available for Lowe’s vendorsInformational web tool available for Lowe’s vendorsPrimary method of communication for all business areasPrimary method of communication for all business areasKey Documentation:Key Documentation:– Transportation Routing GuideTransportation Routing Guide– Distribution & Packaging RequirementsDistribution & Packaging Requirements– Barcoding RequirementsBarcoding Requirements– Packaging RequirementsPackaging Requirements– HAZMATHAZMAT– Vendor ComplianceVendor Compliance– IT RequirementsIT Requirements

Key Applications:Key Applications:– Electronic Data Interchange – View purchase orders and invoicesElectronic Data Interchange – View purchase orders and invoices– Product Content Management - flow & accuracy of product dataProduct Content Management - flow & accuracy of product data– Vendor Inquiry - vendor payment information and historyVendor Inquiry - vendor payment information and history– Store Lookup – store location informationStore Lookup – store location information

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LowesLink LowesLink ®®To Register:To Register:– www.loweslink.comwww.loweslink.com– click click Register HereRegister Here under under Getting StartedGetting Started

The registration section includes:The registration section includes:– System RequirementsSystem Requirements– Digital Certification Agreement Digital Certification Agreement – Registration FormRegistration Form– Your vendor number is also required to registerYour vendor number is also required to register

Important: It is the vendors responsibility to stay up to date with information Important: It is the vendors responsibility to stay up to date with information posted on LowesLink posted on LowesLink ®® For more detailed information about LowesLink For more detailed information about LowesLink ®®, please see the FAQ at:, please see the FAQ at:

www.loweslink.com/pubdocuments/Canada%20FAQs.pdfwww.loweslink.com/pubdocuments/Canada%20FAQs.pdf

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EDIEDI

Vendors are required to have EDI capabilityVendors are required to have EDI capability– Exceptions will be made if minimal negative impact will resultExceptions will be made if minimal negative impact will result– Exception vendors must use Lowe’s EDI web formsException vendors must use Lowe’s EDI web forms

Stock & SOS Purchase OrdersStock & SOS Purchase Orders– POs can be issued via EDI several times each dayPOs can be issued via EDI several times each day– Vendors are required to check for POs at least once a day to ensure Vendors are required to check for POs at least once a day to ensure

lead times are adhered tolead times are adhered to

Advance Shipping Notice (ASN)Advance Shipping Notice (ASN)– In the near future, Lowe’s Canada will require ASN’s for all shipmentsIn the near future, Lowe’s Canada will require ASN’s for all shipments– Vendor’s will be communicated to in advance of this requirementVendor’s will be communicated to in advance of this requirement

All EDI information is available on LowesLink All EDI information is available on LowesLink ®®www.loweslink.com/edi.htmwww.loweslink.com/edi.htm

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EDI – New VendorsEDI – New VendorsTo Register: To Register: – All existing & new Lowe’s vendors are required to register for CanadaAll existing & new Lowe’s vendors are required to register for Canada– Click Click EDI Vendor RegistrationEDI Vendor Registration under EDI on LowesLink under EDI on LowesLink ®® ::

www.loweslink.com/pubdocuments/EDI_VENDOR_REGISTRATION.xlswww.loweslink.com/pubdocuments/EDI_VENDOR_REGISTRATION.xls

The following information is required to register:The following information is required to register:– Vendor Home Office & Remit NumbersVendor Home Office & Remit Numbers– Are you a consigned inventory vendor?Are you a consigned inventory vendor?– Are you a reverse PO vendor?Are you a reverse PO vendor?– Are you shipping VPXD?Are you shipping VPXD?– Are you transacting in CDN or USD currency with Lowe’s Canada?Are you transacting in CDN or USD currency with Lowe’s Canada?

Validate the above with your Merchant and Supply Chain AnalystValidate the above with your Merchant and Supply Chain Analyst

For more information, visit For more information, visit Communication to New Vendors:Communication to New Vendors:www.loweslink.com/pubdocuments/Letter_to_New_Vendors.pdf www.loweslink.com/pubdocuments/Letter_to_New_Vendors.pdf

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EDI – Existing VendorsEDI – Existing Vendors

Type 1 – NOT changing sender/receiver ID’sType 1 – NOT changing sender/receiver ID’s – Retest NOT requiredRetest NOT required

Type 2 – Changing sender/receiver ID’s Type 2 – Changing sender/receiver ID’s – Retest requiredRetest required

– Submit an EDI Vendor Registration FormSubmit an EDI Vendor Registration Form

Visit Communications for Existing Vendors on LowesLinkVisit Communications for Existing Vendors on LowesLink®®www.loweslink.com/pubdocuments/Letter_to_Existing_Vendors.pdf www.loweslink.com/pubdocuments/Letter_to_Existing_Vendors.pdf

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EDI Setup & TestingEDI Setup & Testing

Lowe’s EDI team will contact you once registration is completeLowe’s EDI team will contact you once registration is complete

Vendors will be required to test 4 documentsVendors will be required to test 4 documents– POPO

– InvoiceInvoice

– ASNASN

– EFTEFT

EDI team will walk vendor through requirementsEDI team will walk vendor through requirements

An “Invoicing Agreement” to sign and return will be issued once a An “Invoicing Agreement” to sign and return will be issued once a clean test occursclean test occurs

For EDI questions and support, refer to the EDI Quick Reference For EDI questions and support, refer to the EDI Quick Reference guide in Appendix Aguide in Appendix A

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EDI Web FormsEDI Web Forms

Webforms gives non EDI vendors a web based solution for receiving Webforms gives non EDI vendors a web based solution for receiving POs and submitting InvoicesPOs and submitting Invoices

To Register:To Register:– Online registration at www.loweslink.com under Getting StartedOnline registration at www.loweslink.com under Getting Started– Complete and submit the Subscriber AgreementComplete and submit the Subscriber Agreement– Your vendor number is required to complete this formYour vendor number is required to complete this form– Each subscriber receives a digital certificate number allowing only them to Each subscriber receives a digital certificate number allowing only them to

view on-line informationview on-line information

EDI team will contact vendor to validate test POs and InvoicesEDI team will contact vendor to validate test POs and Invoices

The Subscriber Agreement as well as other information can be found at The Subscriber Agreement as well as other information can be found at the following site:the following site:

www.loweslink.com/pubdocuments/WebForm_Intro_FAQ.pdfwww.loweslink.com/pubdocuments/WebForm_Intro_FAQ.pdf

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Initial Order ForecastsInitial Order Forecasts

Emailed to the vendor by a Lowe’s Forecast AnalystEmailed to the vendor by a Lowe’s Forecast Analyst

Process to begin Mid-JuneProcess to begin Mid-June

First point of contact for questions about the forecast is the FAFirst point of contact for questions about the forecast is the FA

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Canadian Standard CertificationCanadian Standard Certification

Vendors are legally obliged to comply with all Canadian Laws and Vendors are legally obliged to comply with all Canadian Laws and StandardsStandards

Certifying goods:Certifying goods:– Recommended for vendors new to CanadaRecommended for vendors new to Canada– Vendors must submit products to a nationally recognized testing labVendors must submit products to a nationally recognized testing lab::

CSA (Canadian Standards Association)CSA (Canadian Standards Association)

UL (underwriters lab)UL (underwriters lab)

Intertek testing servicesIntertek testing services

Article 8 of your Master Standard Buying Agreement (MSBA) Article 8 of your Master Standard Buying Agreement (MSBA) contains details of your agreement with Lowe’s Canadacontains details of your agreement with Lowe’s Canada

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HAZMATHAZMATHazmat IdentificationHazmat Identification– Vendors are responsible for identifying Hazardous products according to Vendors are responsible for identifying Hazardous products according to

the codes provided in Appendix Bthe codes provided in Appendix B– Lowe’s will not deliver or store Level 3 or 4 items. These items must be Lowe’s will not deliver or store Level 3 or 4 items. These items must be

delivered to Lowe’s Prepaid Direct to Storesdelivered to Lowe’s Prepaid Direct to Stores

MSDS sheetsMSDS sheets– Required for ALL Lowe’s Canada itemsRequired for ALL Lowe’s Canada items– Canadian specific MSDS sheets must be submitted every 3 yearsCanadian specific MSDS sheets must be submitted every 3 years

Infotrac, Lowe's MSDSInfotrac, Lowe's MSDS200 N. Palmetto, Leesburg, FL 200 N. Palmetto, Leesburg, FL 34748, USA. 34748, USA.

Rules for HAZMAT items are available on Loweslink Rules for HAZMAT items are available on Loweslink ®® : :www.loweslink.com/llmain/pubdocuments/Hazmat_Products.pdf www.loweslink.com/llmain/pubdocuments/Hazmat_Products.pdf

Questions regarding HAZMAT, should be directed to: Questions regarding HAZMAT, should be directed to: Damon.M.Chappell@lowes.com Damon.M.Chappell@lowes.com

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Electronic Article Surveillance - Electronic Article Surveillance - Source TaggingSource Tagging

What is Source Tagging?What is Source Tagging?– Disposable anti-theft labelsDisposable anti-theft labels

– Incorporated into merchandise according to pre-approved specificationIncorporated into merchandise according to pre-approved specification

Lowe’s Canada has the same source tagging policy as Lowe’s USLowe’s Canada has the same source tagging policy as Lowe’s US

Product already approved for Lowe’s US will not require re-approvalProduct already approved for Lowe’s US will not require re-approval

Source tagging policy can be found on Loweslink Source tagging policy can be found on Loweslink ®® : :www.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdfwww.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdf

To determine if your products require source tagging:To determine if your products require source tagging:www.loweslink.com/llmain/pubdocuments/source_tagging_guidelines.pdfwww.loweslink.com/llmain/pubdocuments/source_tagging_guidelines.pdf

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Electronic Article Surveillance - Electronic Article Surveillance - CertificationCertification

To certify product new to Lowe’s that requires source tagging:To certify product new to Lowe’s that requires source tagging:Complete ADT / Sensormatic’s Product Submission FormComplete ADT / Sensormatic’s Product Submission Form

– For submission form contact Lisa Greer at:For submission form contact Lisa Greer at:lgreer@adt.com lgreer@adt.com

– Forward it, along with the item to be tested, to one of Sensormatic’s Forward it, along with the item to be tested, to one of Sensormatic’s Certification Labs. Certification Labs.

– The Lab will determine where the tag should be located & provide certificationThe Lab will determine where the tag should be located & provide certification

Certification is sent by ADT to Lowe’s EAS Source Tag Mgr for approvalCertification is sent by ADT to Lowe’s EAS Source Tag Mgr for approvalFinally, vendor submits a commitment form to Lowe’sFinally, vendor submits a commitment form to Lowe’s

– Commitment form is available at:Commitment form is available at:

www.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdfwww.loweslink.com/llmain/pubdocuments/EAS_Source_Tag_Program.pdf– Vendors will also receive commitment from via email from EAS teamVendors will also receive commitment from via email from EAS team– Vendors must fax commitment form to Fax # 1 704 757 6098Vendors must fax commitment form to Fax # 1 704 757 6098

Source Tagging questions should be directed to:Source Tagging questions should be directed to:Jessica.C.Verran@lowes.comJessica.C.Verran@lowes.com

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Electronic Article Surveillance - Electronic Article Surveillance - AuditsAudits

Weekly internal audits on committed source tagged SKU’sWeekly internal audits on committed source tagged SKU’s

Minimal 85% source tag compliance requirementMinimal 85% source tag compliance requirement

Failed Audits:Failed Audits:– Lowe’s will notify you if there are failed auditsLowe’s will notify you if there are failed audits

– Items with failed audits will be rechecked 45 days laterItems with failed audits will be rechecked 45 days later

– Failed second audits result in non complianceFailed second audits result in non compliance

Recourse for non-compliance will be:Recourse for non-compliance will be:– Determined by Lowe’s Merchandising and Loss Prevention Mgmt Determined by Lowe’s Merchandising and Loss Prevention Mgmt

– Handled on a case-by-case basisHandled on a case-by-case basis

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BarcodingBarcoding

Lowe’s uses both UPC & I 2 of 5 bar codes at its stores and DC’sLowe’s uses both UPC & I 2 of 5 bar codes at its stores and DC’sAll items sold to Lowe’s must have valid bar codesAll items sold to Lowe’s must have valid bar codesBar Code Issues:Bar Code Issues:– 60 day advance notice required for all bar code changes or additions60 day advance notice required for all bar code changes or additions– Report problems with barcodes immediately to your MerchantReport problems with barcodes immediately to your Merchant

Lowe’s Barcoding guidelines can be found on LowesLink Lowe’s Barcoding guidelines can be found on LowesLink ® :® :

www.loweslink.com/llmain/pubdocuments/Bar_Coding_Header_page.pdfwww.loweslink.com/llmain/pubdocuments/Bar_Coding_Header_page.pdf

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Barcoding – UPC’sBarcoding – UPC’s

Each sellable unit at Lowe’s stores requires a UPC labelEach sellable unit at Lowe’s stores requires a UPC labelUPC’s must have legible numbers, scan bar, and description UPC’s must have legible numbers, scan bar, and description 100% scan rate is required on all UPC labels100% scan rate is required on all UPC labelsVendors are expected to follow specifications set out by the uniform Vendors are expected to follow specifications set out by the uniform code councilcode councilUPC Barcoding requirements can be found on Loweslink UPC Barcoding requirements can be found on Loweslink ®®(2-7):(2-7):http://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdfhttp://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdf

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Barcoding – I 2 of 5’sBarcoding – I 2 of 5’s

Standard shipping containers must be labeled with I 2 of 5 codes Standard shipping containers must be labeled with I 2 of 5 codes A standard shipping container is anything greater than a selling unit A standard shipping container is anything greater than a selling unit and contains fixed multiples of the same item:and contains fixed multiples of the same item:– Master cartonsMaster cartons– BundlesBundles– Inner packsInner packs– PalletsPallets

100% Scan rate is required100% Scan rate is requiredVendors must follow specifications set out by the uniform code councilVendors must follow specifications set out by the uniform code councilOnly one standard ship unit per vendor, per item, will be accepted at Only one standard ship unit per vendor, per item, will be accepted at our distribution center our distribution center I2of5 Barcoding requirements can be found on Loweslink I2of5 Barcoding requirements can be found on Loweslink ®® (Pg 8-12): (Pg 8-12):

http://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdfhttp://www.loweslink.com/llmain/pubdocuments/BarCodeGuidelines.pdf

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Cross Border Requirements Cross Border Requirements DocumentationDocumentation

The following documents are required to clear product across the The following documents are required to clear product across the US/Canada border:US/Canada border:– Commercial Invoice (Vendor)Commercial Invoice (Vendor)– Canada Customs Invoice (Vendor)Canada Customs Invoice (Vendor)– Packing List (Vendor)Packing List (Vendor)– Bill of Lading (carrier)Bill of Lading (carrier)– Manifest or Cargo Control Document (carrier)Manifest or Cargo Control Document (carrier)– NAFTA Certificate (Vendor)NAFTA Certificate (Vendor)

See Appendix C for details on each documentSee Appendix C for details on each documentPlease refer to Canada Border Services Agency for more details Please refer to Canada Border Services Agency for more details and qualification requirements at http://www.cbsa-asfc.gc.ca/ and qualification requirements at http://www.cbsa-asfc.gc.ca/

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Cross Border RequirementsCross Border Requirements

HAZMAT:HAZMAT:– Lowe’s will not transport any Level 3 or 4 HAZMAT productLowe’s will not transport any Level 3 or 4 HAZMAT product

– Prepaid vendor shipments are requiredPrepaid vendor shipments are required

Controlled products:Controlled products:– Must be identified to Lowe’s by the vendorMust be identified to Lowe’s by the vendor

– Contact your SCA to determine proper channel for shippingContact your SCA to determine proper channel for shipping

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Cross Border RequirementsCross Border Requirements

Prepaid FreightPrepaid Freight– Vendor is the importer/exporter of recordVendor is the importer/exporter of record– Vendor must ensure they:Vendor must ensure they:

Properly classify productProperly classify productObtain the appropriate governmental status & business numbersObtain the appropriate governmental status & business numbersProvide appropriate documentation to accompany shipmentsProvide appropriate documentation to accompany shipmentsEstablish required brokerage servicesEstablish required brokerage services

– All costs are assumed to be imbedded in pre-paid pricing quotesAll costs are assumed to be imbedded in pre-paid pricing quotesCollect FreightCollect Freight– Lowe’s Canada is the importer/exporter of recordLowe’s Canada is the importer/exporter of record– Vendor’s must ensure they:Vendor’s must ensure they:

Share accurate item attributes with Lowe’s to assist in classificationShare accurate item attributes with Lowe’s to assist in classificationEstablish appropriate paperwork to accompany shipmentsEstablish appropriate paperwork to accompany shipmentsLowe’s will establish required brokerage servicesLowe’s will establish required brokerage services

– No duty or brokerage costs should be imbedded in collect price quotesNo duty or brokerage costs should be imbedded in collect price quotes

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Cross Border RequirementsCross Border Requirements

Prepaid Vendor ChecklistPrepaid Vendor Checklist– Lowe’s requires that prepaid vendors communicate when the required Lowe’s requires that prepaid vendors communicate when the required

importing set-up tasks have been completedimporting set-up tasks have been completed

– Checklist and detailed descriptions of each step are located in Checklist and detailed descriptions of each step are located in

Appendix CAppendix C

– All checklists are to be returned to your Supply Chain analyst in order to All checklists are to be returned to your Supply Chain analyst in order to receive your first purchase orderreceive your first purchase order

Lowe’s is providing this detail for information purposes onlyLowe’s is providing this detail for information purposes only

Vendors must work with an accredited broker to ensure they will Vendors must work with an accredited broker to ensure they will satisfy all requirements to flow goods efficiently into Canada at start-satisfy all requirements to flow goods efficiently into Canada at start-up and beyondup and beyond

Refer to Appendix C for list of prepaid cross border shipment Refer to Appendix C for list of prepaid cross border shipment requirementsrequirements

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Cross Border Requirements – Cross Border Requirements – HTS ClassificationHTS Classification

Lowe’s will be classifying all items shipping from the U.S. OTR via Lowe’s will be classifying all items shipping from the U.S. OTR via Freight CollectFreight Collect– Ensure proper duty payment and satisfy Canada Customs compliance Ensure proper duty payment and satisfy Canada Customs compliance

Vendors will receive information package and must follow up within Vendors will receive information package and must follow up within 5 business days 5 business days Item specific info will be requested to properly classify each itemItem specific info will be requested to properly classify each itemThe material is time sensitiveThe material is time sensitiveAccuracy is essentialAccuracy is essentialLowe’s has contracted UPS-SCS for the classification processLowe’s has contracted UPS-SCS for the classification processUPS-SCS may contact vendors for further informationUPS-SCS may contact vendors for further informationVendor contact information will be shared with UPS-SCS Vendor contact information will be shared with UPS-SCS For further questions, please email:For further questions, please email:

CanadaVendorCompliance@lowes.comCanadaVendorCompliance@lowes.com

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Vendor POP Signage Vendor POP Signage

All vendor signage/literature must be reviewed and approved by:All vendor signage/literature must be reviewed and approved by:– Lowe’s Merchant Lowe’s Merchant

– Store EnvironmentStore Environment

Lowe’s Visual Standards Guidelines (VSG) must be followedLowe’s Visual Standards Guidelines (VSG) must be followed

Centralized production (single source) of vendor signage ensures:Centralized production (single source) of vendor signage ensures:– Standardized substrates and consistency in colorStandardized substrates and consistency in color

– VSG VSG experienced help on sign dimensions, layout and hardwareexperienced help on sign dimensions, layout and hardware

– Efficient labelling, packing, and delivery of all store signage in one Efficient labelling, packing, and delivery of all store signage in one shipmentshipment

– Full digital inventory of all signage in-store for future line reviews and Full digital inventory of all signage in-store for future line reviews and merchant communications/planningmerchant communications/planning

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Vendor POP Signage Vendor POP Signage ProcessProcess

Step 1– Email pdfs and checklist of currently approved US signage which will be

leveraged for Canada and new proposed signage to vsgcanada@prattcorp.com

– This will allow Merchants and Store Environment to review and comment.

Step 2– Upload working art files to http://lowes.leapfile.com/

Step 3– Project will be quoted to vendor before redesigning/printing begins

– Please contact vsgcanada@prattcorp.com with any questions/direction regarding this process

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Phase 2: Scheduling and ShippingPhase 2: Scheduling and Shipping

Shipping MethodShipping MethodSample ProcessSample ProcessShipping RequirementsShipping Requirements– Pallets and Slip SheetsPallets and Slip Sheets– Packaging & UnitizingPackaging & Unitizing– LabelingLabeling

Scheduling RequirementsScheduling Requirements– Routing GuidesRouting Guides– Pickup and Delivery AppointmentsPickup and Delivery Appointments– Routing Requirements OverviewRouting Requirements Overview– Small ParcelSmall Parcel

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Determining Shipping MethodDetermining Shipping Method

Channel selected for start up is provided on Appendix HChannel selected for start up is provided on Appendix H– Collect Direct to StoresCollect Direct to Stores– Collect to the DC Collect to the DC – Collect 1XDCollect 1XD– Collect VPXDCollect VPXD

Lowe’s may choose to switch channels as required or for special PO Lowe’s may choose to switch channels as required or for special PO typestypesAdvance notice of channel changes will be provided by SCA Advance notice of channel changes will be provided by SCA Question regarding your channel can be forwarded to you SCAQuestion regarding your channel can be forwarded to you SCASOS PO’s are prepaid direct to store/customer, although exceptions SOS PO’s are prepaid direct to store/customer, although exceptions may existmay existFreight method is determined by order size and product typeFreight method is determined by order size and product type– ie TL, LTL, small parcel, van or flatbedie TL, LTL, small parcel, van or flatbed

Opportunities for improvement should be communicated to SCAOpportunities for improvement should be communicated to SCA

– Prepaid Direct to StoresPrepaid Direct to Stores– Prepaid DCPrepaid DC– Prepaid 1XDPrepaid 1XD– Prepaid VPXDPrepaid VPXD

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Sample ProcessSample Process

Lowe’s may elect to sample new product in order to validate Lowe’s may elect to sample new product in order to validate barcoding, packaging dimensions and weightbarcoding, packaging dimensions and weight

Sample POs will be issued to vendors requesting shipment to our Sample POs will be issued to vendors requesting shipment to our sample facilities in the US or Canadasample facilities in the US or Canada

Sample ProcessSample Process– Ship the full ship unit quantity of the itemShip the full ship unit quantity of the item– Securely attach sample placard to shipmentSecurely attach sample placard to shipment– Ship all samples prepaid to Lowe’s facilityShip all samples prepaid to Lowe’s facility– Product NOT to be returned should have “Free goods” on the packing listProduct NOT to be returned should have “Free goods” on the packing list– Vendors requiring samples to be returned require a return goods authorization # Vendors requiring samples to be returned require a return goods authorization #

(RGA#) to be sent to your SCA prior to shipping the goods(RGA#) to be sent to your SCA prior to shipping the goods– Do NOT issue an invoice for sample goodsDo NOT issue an invoice for sample goods

Further details on the sample process can be found in Appendix DFurther details on the sample process can be found in Appendix D

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SamplesSamples

For US Ship From:For US Ship From:– Ship Samples to:Ship Samples to:

Lowe’s Regional Distribution Lowe’s Regional Distribution Center #960Center #960

711 Tomlin Mill Road711 Tomlin Mill Road

Statesville, NC 28625Statesville, NC 28625

ATTN: Sample Dept. - ATTN: Sample Dept. - Lowe’s CanadaLowe’s Canada

For CAN Ship From:For CAN Ship From:– Ship Samples to:Ship Samples to:

RDC # 1415 Unit ARDC # 1415 Unit A

2750 Peddie Road2750 Peddie Road

Milton ON L9T 6Y9Milton ON L9T 6Y9

ATTN: Sample Dept. -ATTN: Sample Dept. -Lowe’s CanadaLowe’s Canada

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Shipping Requirements –Shipping Requirements –Pallets and Slip SheetsPallets and Slip Sheets

Specific pallet requirements are required at Lowe’sSpecific pallet requirements are required at Lowe’s– Requirements are based on destination of the product and the product Requirements are based on destination of the product and the product

typetype– Requirements include pallet size and orientation, shrink wrap, slip sheet Requirements include pallet size and orientation, shrink wrap, slip sheet

and product height requirementsand product height requirements

All specifications are outlined in Appendix E with contents to be All specifications are outlined in Appendix E with contents to be added to Loweslink added to Loweslink ®®– Store display pallet requirements are essential to ensure uniform Store display pallet requirements are essential to ensure uniform

presentation at the storepresentation at the store– DC pallet requirements are essential to ensure efficient handling and DC pallet requirements are essential to ensure efficient handling and

storage of your product at the distribution centerstorage of your product at the distribution center– Re-work required to address pallet non-compliance may be recovered Re-work required to address pallet non-compliance may be recovered

from vendor if issues persistfrom vendor if issues persist

Lowe’s Canada will not participate in national pallet programsLowe’s Canada will not participate in national pallet programsFor more details, see Appendix EFor more details, see Appendix E

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Packaging & UnitizingPackaging & Unitizing

Packaging requirements are intended to minimize damage and Packaging requirements are intended to minimize damage and enhance stocking and appearance at the storeenhance stocking and appearance at the store– Corrugate specificationsCorrugate specifications– Shrink wrap specificationsShrink wrap specifications– Slip sheet specificationsSlip sheet specifications– Corrugate access holes & tear away requirementsCorrugate access holes & tear away requirements– Desiccant specificationsDesiccant specifications

Unitization requirements are intended to simplify the receiving Unitization requirements are intended to simplify the receiving process which will minimize OS&D claims and costsprocess which will minimize OS&D claims and costs– Trailer loading specificationsTrailer loading specifications– Pallet tier and content specificationsPallet tier and content specifications– Master carton content specificationsMaster carton content specifications

All specifications are outlined in Appendix E with contents to be All specifications are outlined in Appendix E with contents to be added to Loweslink added to Loweslink ®®

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LabelingLabeling

Informational labeling is required on many types of product to Informational labeling is required on many types of product to ensure proper identification and priority handling.ensure proper identification and priority handling.

Product requiring special labeling includes:Product requiring special labeling includes:– NEW STORENEW STORE

– SAMPLESSAMPLES

– VPXDVPXD

– SOSSOS

– Multi-Boxed ItemsMulti-Boxed Items

All specifications are outlined in Appendix E with contents to be All specifications are outlined in Appendix E with contents to be added to Loweslink added to Loweslink ®®

Sample and New Store Placards are provided in Appendix FSample and New Store Placards are provided in Appendix F

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Scheduling RequirementsScheduling RequirementsRouting GuidesRouting Guides

Lowe’s Canada will publish a routing guide that outlines:Lowe’s Canada will publish a routing guide that outlines:– Core carriers for all LTL & small parcel shipments (US & Can)Core carriers for all LTL & small parcel shipments (US & Can)

– LTL carriers are assigned by shipping laneLTL carriers are assigned by shipping lane

– Receiving schedules at Stores & DCReceiving schedules at Stores & DC

Vendors must ensure that core carriers are used for all LTL and Vendors must ensure that core carriers are used for all LTL and Small ParcelSmall Parcel

Benefits include:Benefits include:– Decreased dock congestionDecreased dock congestion

– Improved cross border efficiencies and costsImproved cross border efficiencies and costs

– Improved receiving efficienciesImproved receiving efficiencies

Lowe’s routing guide will be available on LowesLink Lowe’s routing guide will be available on LowesLink ®® in mid April in mid April

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Pick-up & Delivery AppointmentsPick-up & Delivery Appointments

Lowe’s Canada will require all deliveries to have receiving Lowe’s Canada will require all deliveries to have receiving appointments at both the DC and Storesappointments at both the DC and Stores

Some vendors may be invited to participate in a drop trailer program Some vendors may be invited to participate in a drop trailer program at our DC, however this will be limitedat our DC, however this will be limited

Responsibilities for creating pick-up and delivery appointments is Responsibilities for creating pick-up and delivery appointments is dependent on freight method for each given POdependent on freight method for each given PO

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Routing Requirements OverviewRouting Requirements Overview

 Who Selects

Carrier? Pick Up Responsibilities Delivery Responsibilities

TL Collect Lowe's Carrier will schedule pickup with Vendor

Carrier contacts Lowe's facility 24 hrs prior to delivery for appointment

Vendors to notify Lowe's if appointment is NOT made by noon the day before the scheduled ship date

Carrier may drop trailer at DC if approved for drop trailer program

TL Prepaid Vendor Vendor may select TL carrier of choice Carrier contacts Lowe's facility 24 hrs prior to delivery for appointment

Carrier pickups to be scheduled by vendor for scheduled ship date

Carrier may drop trailer at DC if approved for drop trailer program

LTL Collect Lowe's Vendor must use core LTL carrier Core Carriers have standing appointments at DC and stores

Vendor schedules pickup for ship date on the PO

Vendors to notify Lowe's if appointment is NOT made by noon the day before the scheduled ship date

LTL Prepaid Lowe's Vendor schedules pickup for ship date on the PO

Core Carriers have standing appointments at DC and stores

Vendor must use core LTL carrier

3939

Scheduling Requirements – Scheduling Requirements – Small ParcelSmall Parcel

Small Parcel (ex. UPS, Fed Ex, Purolator)Small Parcel (ex. UPS, Fed Ex, Purolator)– <250 Lbs<250 Lbs

– <12 packages<12 packages

– Not >150lbs in an individual packageNot >150lbs in an individual package

– Not > 108" in lengthNot > 108" in length

Small Parcel core carrier will be identified with Lowe’s routing guide Small Parcel core carrier will be identified with Lowe’s routing guide updateupdate

4040

Phase 3: Post PO ReceiptPhase 3: Post PO Receipt

Finance and Accounting Finance and Accounting – Invoice ProcessingInvoice Processing– Ontario Exempt CertificateOntario Exempt Certificate– Discrepancy ResolutionDiscrepancy Resolution– Payment InformationPayment Information– Lowe’s Business LocationsLowe’s Business Locations– Electronic Funds Transfers (EFT)Electronic Funds Transfers (EFT)

852 POS report852 POS reportVendor Performance RequirementsVendor Performance RequirementsVendor ComplianceVendor Compliance– PolicyPolicy– CommunicationsCommunications

Returns to Manufacturer (RTM)Returns to Manufacturer (RTM)Vendor BuybacksVendor BuybacksRecalls Recalls

4141

Invoice ProcessingInvoice Processing

Invoices are required to be submitted via EDIInvoices are required to be submitted via EDI

One invoice per purchase orderOne invoice per purchase order

Invoice only for merchandise receivedInvoice only for merchandise received

Credit memos must referenceCredit memos must reference– Lowe’s store name, number and address, Lowe’s store name, number and address, – purchase orderpurchase order– the original invoice that the credit is applied to provided on vendor’s letterheadthe original invoice that the credit is applied to provided on vendor’s letterhead

Paper Invoices will be accepted and should be mailed to:Paper Invoices will be accepted and should be mailed to:Lowe’s Companies Canada, ULCLowe’s Companies Canada, ULC

Attn: Vendor Invoice PaymentAttn: Vendor Invoice Payment

P.O. Box 1941P.O. Box 1941

North Wilkesboro, NC 28659North Wilkesboro, NC 28659

Product must be received prior to payment being issuedProduct must be received prior to payment being issued

4242

Discrepancy ResolutionDiscrepancy Resolution

Lowe’s will identify deductions and will email vendor to start processLowe’s will identify deductions and will email vendor to start process

Deductions issued with payment when a pricing or quantity Deductions issued with payment when a pricing or quantity discrepancy is identifieddiscrepancy is identified– Vendor invoiced for full order but short shippedVendor invoiced for full order but short shipped

Deduction Dispute Process:Deduction Dispute Process:– Letter explaining why you disagree with the deductionLetter explaining why you disagree with the deduction

– Include the original deduction letterInclude the original deduction letter

– Include copy of purchase order, proof of delivery and bill of ladingInclude copy of purchase order, proof of delivery and bill of lading

– Send dispute package to:Send dispute package to:

Lowe’s Companies Canada, ULCLowe’s Companies Canada, ULC

Attn: Vendor Invoice PaymentAttn: Vendor Invoice Payment

P.O. Box 1941P.O. Box 1941

North Wilkesboro, NC 28659North Wilkesboro, NC 28659

4343

Payment InformationPayment Information

Electronic Funds Transfer EFT – required method of paymentElectronic Funds Transfer EFT – required method of payment– Payments are generated Sunday through ThursdayPayments are generated Sunday through Thursday

– Good funds date is three days from payment release dateGood funds date is three days from payment release date

– Paper checks will not be issuedPaper checks will not be issued

Payments generated based on payment due datePayments generated based on payment due date– Invoice date plus vendor termsInvoice date plus vendor terms

Invoice to Lowe’s Canada will be paid separately from Lowe’s USInvoice to Lowe’s Canada will be paid separately from Lowe’s US

Invoice currency must match PO currency for all ordersInvoice currency must match PO currency for all orders– Currency agreements can be validated with your merchantCurrency agreements can be validated with your merchant

– SOS product must transact in Canadian DollarsSOS product must transact in Canadian Dollars

4444

Electronic Funds Transfer (EFT) Electronic Funds Transfer (EFT) RegistrationRegistration

To Register: To Register: – EFT registration instructions will be sent when EDI registration is completeEFT registration instructions will be sent when EDI registration is complete– Complete the EFT registration formComplete the EFT registration form– A penny voucher will be sent to ensure account activationA penny voucher will be sent to ensure account activation

EFT Production Date will be communicated via email or phone EFT Production Date will be communicated via email or phone

For issues with EFT and for ongoing support, send requests to:For issues with EFT and for ongoing support, send requests to:

canadaap@lowes.comcanadaap@lowes.com

4545

Lowe’s Business LocationsLowe’s Business LocationsSold To: Sold To: Lowe’s Companies Canada, ULCLowe’s Companies Canada, ULC

5160 Yonge Street5160 Yonge Street

Suite 200, P.O. Box 25Suite 200, P.O. Box 25

North York, Ontario M2N 6L9North York, Ontario M2N 6L9

Payer Bill To: Payer Bill To: Lowe’s Companies Canada, ULCLowe’s Companies Canada, ULCEPCAEPCAPO Box 1941PO Box 1941North Wilkesboro, NC 28697North Wilkesboro, NC 28697

Resale Tax ID #:Resale Tax ID #:– Lowe’s GST Number: Lowe’s GST Number:

843347741 RT0001843347741 RT0001

DC Ship To: DC Ship To: DC# 1415DC# 1415

2750 Peddie Road, Unit A2750 Peddie Road, Unit A

Milton, Ontario L9T 6Y9Milton, Ontario L9T 6Y9

  Store Ship To:Store Ship To: TBD as stores are openedTBD as stores are opened

  

4646

Ontario Exempt CertificateOntario Exempt Certificate

Certificate ensures vendors do NOT charge Lowe’s Canada PST on Certificate ensures vendors do NOT charge Lowe’s Canada PST on inventory used for resaleinventory used for resale

Copy of the certificate is found in Appendix GCopy of the certificate is found in Appendix G

4747

852 POS Report852 POS Report

Vendor Dart /Dart LiteVendor Dart /Dart Lite– Application offered to Lowe’s US vendors currentlyApplication offered to Lowe’s US vendors currently

– Application will NOT be available for Lowe’s Canada vendors at startupApplication will NOT be available for Lowe’s Canada vendors at startup

852 POS data available to share POS information852 POS data available to share POS information– Contains sales by item by store (daily, weekly, monthly)Contains sales by item by store (daily, weekly, monthly)

– Requires EDI capabilitiesRequires EDI capabilities

– This report contains non-formatted data that will require manipulationThis report contains non-formatted data that will require manipulation

To register:To register:

www.loweslink.com/llmain/pubdocuments/852FAQ.pdfwww.loweslink.com/llmain/pubdocuments/852FAQ.pdf

4848

Vendor Performance RequirementsVendor Performance Requirements

Purpose of Performance Requirements:Purpose of Performance Requirements:– Ensure smooth flow of product through the overall supply chainEnsure smooth flow of product through the overall supply chain– Ensure product availability to the end consumerEnsure product availability to the end consumer– Minimize total costs in order to offer lowest prices possibleMinimize total costs in order to offer lowest prices possible

Lowe’s Vendors are required to operate above minimum standardsLowe’s Vendors are required to operate above minimum standardsMetrics important to Lowe’s Supply Chain are:Metrics important to Lowe’s Supply Chain are:– On-time shipmentOn-time shipment– Quantity fill rateQuantity fill rate– Barcoding & PackagingBarcoding & Packaging– Core Carrier ComplianceCore Carrier Compliance

Specific metrics are outlined in our vendor requirements document Specific metrics are outlined in our vendor requirements document which be made available via email or Loweslink which be made available via email or Loweslink ®®

4949

Vendor Compliance PolicyVendor Compliance Policy

Lowe’s will encourage vendors to meet performance requirements Lowe’s will encourage vendors to meet performance requirements as outlined in the vendor compliance policyas outlined in the vendor compliance policy

The policy outlines the following:The policy outlines the following:– Resolution process to resolve compliance issuesResolution process to resolve compliance issues

– Financial cost recovery for failed performanceFinancial cost recovery for failed performance

Canadian vs US PolicyCanadian vs US Policy– Compliance is tracked separately for the two businessesCompliance is tracked separately for the two businesses

– Policies differ slightly due to differences in business needsPolicies differ slightly due to differences in business needs

Lowe’s Canada Compliance Policy will be made available via email Lowe’s Canada Compliance Policy will be made available via email or Loweslink or Loweslink ®®

5050

Vendor Compliance Vendor Compliance CommunicationCommunication

2 reports sent weekly to all vendors2 reports sent weekly to all vendorsShipment PerformanceShipment Performance

Fill Rate HistoryFill Rate History

3 reports sent only if compliance failures occurred 3 reports sent only if compliance failures occurred Misrouted PO’sMisrouted PO’s

PO’s ShortedPO’s Shorted

Late PO’sLate PO’s

All other compliance communication will occur as required by All other compliance communication will occur as required by Supply Chain AnalystSupply Chain Analyst

5151

Returns to Manufacturer (RTMs)Returns to Manufacturer (RTMs)

The following options are available to Lowe’s Canada vendors for handling The following options are available to Lowe’s Canada vendors for handling RTMs from Lowe’s stores and DCRTMs from Lowe’s stores and DC

Option 1: Option 1: – Destroyed in field by store personnel or donated or marked downDestroyed in field by store personnel or donated or marked down– Store will bill vendor for full creditStore will bill vendor for full credit– Option is not available for HAZMAT itemsOption is not available for HAZMAT items

Option 2:Option 2:– Returned to vendor via freight collectReturned to vendor via freight collect– Store will bill vendor for full creditStore will bill vendor for full credit– Shipper Number to be provided to all stores if returned via parcel carrierShipper Number to be provided to all stores if returned via parcel carrier

Notes:Notes:– Return authorization requirement will result in 5% add on to each RTMReturn authorization requirement will result in 5% add on to each RTM– Lowe’s CAN will not return goods to US location and vendor must arrange for Lowe’s CAN will not return goods to US location and vendor must arrange for

freight pick up of goods from Lowe’s facilityfreight pick up of goods from Lowe’s facility

5252

Vendor BuybacksVendor Buybacks

Lowe’s Merchandising Return Agreement must be signed by both Lowe’s Merchandising Return Agreement must be signed by both the vendor and the merchantthe vendor and the merchantMandatory information:Mandatory information:– Return method (destroy, donate or collect)Return method (destroy, donate or collect)– Return locationReturn location– Estimated value and payment methodEstimated value and payment method– Items involvedItems involved– AuthorizationAuthorization– TimeframeTimeframe

Unique program tracking number is given to each buybackUnique program tracking number is given to each buybackFor more details on buybacks & RTMs refer to:For more details on buybacks & RTMs refer to:www.loweslink.com/llmain/pubdocuments/Product_Returns.pdfwww.loweslink.com/llmain/pubdocuments/Product_Returns.pdf

5353

RecallsRecalls

Vendors first contact Quality Assurance to begin the recall processVendors first contact Quality Assurance to begin the recall process– Via Email: Via Email: qualityassurance@lowes.comqualityassurance@lowes.com

– Via Phone: 704.757.7472Via Phone: 704.757.7472

Quality Assurance team will support vendor through recall processQuality Assurance team will support vendor through recall process

Vendor must inform the merchant that will be affectedVendor must inform the merchant that will be affected

Legal implications of the recall process are outlined in Article 7 of Legal implications of the recall process are outlined in Article 7 of MSBAMSBA

5454

Phase 4: Future ExpectationsPhase 4: Future Expectations

Vendor On-boarding ChecklistVendor On-boarding Checklist

Operating RequirementsOperating Requirements– PO BackordersPO Backorders

– Item SubstitutionsItem Substitutions

– Adding Items to Shipments (Not on PO)Adding Items to Shipments (Not on PO)

– Expected DelaysExpected Delays

Business AlignmentBusiness Alignment– Discontinued Sku’sDiscontinued Sku’s

– Price ChangesPrice Changes

Supply Chain Analyst Contact ListSupply Chain Analyst Contact List

5555

Vendor On Boarding ChecklistVendor On Boarding Checklist

A checklist will be sent out to all vendors that summarizes the tasks A checklist will be sent out to all vendors that summarizes the tasks required to complete prior to startrequired to complete prior to start

Collect and Prepaid vendors will receive different checklistsCollect and Prepaid vendors will receive different checklists

Checklist will help Lowe’s ensure vendors understand business Checklist will help Lowe’s ensure vendors understand business requirementsrequirements

5656

Operating RequirementsOperating Requirements

PO BackordersPO Backorders– Lowe’s does not accept back orders on Purchase OrdersLowe’s does not accept back orders on Purchase Orders

– Product missing from original PO receipt will be treated as a shortage and Product missing from original PO receipt will be treated as a shortage and subsequent shipments for that PO will be refusedsubsequent shipments for that PO will be refused

Item SubstitutionsItem Substitutions– Requires pre-approval from a Lowe’s Merchant and SCARequires pre-approval from a Lowe’s Merchant and SCA

Adding Items to shipments (not on PO)Adding Items to shipments (not on PO)– Requires pre-approval from SCARequires pre-approval from SCA

– Non Stock Items will be returned via freight collectNon Stock Items will be returned via freight collect

Expected DelaysExpected Delays– 30 Day notification to your SCA is required of any anticipated delays to 30 Day notification to your SCA is required of any anticipated delays to

avoid compliance failuresavoid compliance failures

5757

Business AlignmentBusiness Alignment

Discontinued SKUsDiscontinued SKUs– Minimum 90 Day written notice to your merchantMinimum 90 Day written notice to your merchant

– Vendor will agree to buy back discontinued inventory that was Vendor will agree to buy back discontinued inventory that was purchased within 60 days of discontinuation noticepurchased within 60 days of discontinuation notice

– Lowe’s has 60 days to return goods to vendor at vendors costLowe’s has 60 days to return goods to vendor at vendors cost

– Markdown monies accepted if agreed upon by both partiesMarkdown monies accepted if agreed upon by both parties

Price ChangesPrice Changes– 60 day written notice of any price increase60 day written notice of any price increase

5858

Supply Chain Contact ListSupply Chain Contact List

Product Flow Manager – Nick Product Flow Manager – Nick MaloneMalone– nick.malone@lowes.comnick.malone@lowes.com– 416.730.7346416.730.7346

Building Products – Mike MacInnisBuilding Products – Mike MacInnis– Michael.macinnis@lowes.comMichael.macinnis@lowes.com– 416.730.7347416.730.7347

Building Products – David ShippenBuilding Products – David Shippen– David.Shippen@lowes.comDavid.Shippen@lowes.com– 416.730.7357416.730.7357

Hard Lines – Shawn MacLeodHard Lines – Shawn MacLeod– Shawn.macleod@lowes.com Shawn.macleod@lowes.com – 416.730.7420416.730.7420

Home Decor – Aaron KrauseHome Decor – Aaron Krause– Aaron.J.krause@lowes.com Aaron.J.krause@lowes.com – 416.730.7419416.730.7419

Home and Outdoor Living – Home and Outdoor Living – Jennifer WeberJennifer Weber– Jennifer.b.weber@lowes.com Jennifer.b.weber@lowes.com – 416.730.7423416.730.7423

5959

We’re educated!We’re educated!

Let’s work together towards a successful start Let’s work together towards a successful start up in Canada!up in Canada!