Supplier Packaging and Labeling Compliance Manual

Home , Packaging and labeling, Pallet, Warehouse

Effective Date: March 2013

1 Walmart Stores, Inc. Confidential 2013 General Packaging and Labeling Requirements

The information contained in this document is intended to provide an understanding of the general carton quality and marking requirements for shipping domestic freight into Walmart Distribution Centers. While every effort has been made to provide the Supplier with a clear understanding of Walmart’s shipping requirements, no single resource is capable of identifying every possible scenario. Use the following Supplier Resources (found on Retail Link) to identify other requirements mandated for Direct Imports, Walmart.com, Walmart private label brands and other specific product or technical information not addressed in this manual.

SUPPLIER RESOURCES

Direct Imports shipping label and markings, and for direct import-specific case quality requirements: Retail Link > Site Map > Alphabetical view >Global Direct Importing Information>Shipping Case Requirements for Direct Imports

Master shipping case markings and inner pack markings for Walmart private label brands: Retail Link > Site Map > Alphabetical view >Packaging Toolkits >Master Shipping Icon info

DSDC (Direct Store Delivery Consolidation) requirements: Retail Link > Site Map > Alphabetical view >DSDC Supplier Information Manual

EDI requirements: Retail Link > Site Map > Alphabetical view > E-Commerce/EDI

Packaging Tool Kit (for Walmart Private Brand Suppliers) requirements: Retail Link > Site Map > Alphabetical view >Packaging Tool Kit

In-store Display & PDQ requirements: Retail Link > Site Map > Alphabetical view >Package Design>In-Store Display & PDQ Guide

RFID information (also known as “EPC” (Electronic Product Code) : Retail Link > Site Map > Alphabetical view >RFID information

Sam’s Club case, packaging & pallet requirements: Retail Link > Site Map > Alphabetical view >Sam’s Club Packaging Standards

Shipping and Routing instructions (for collect shipments): Retail Link > Site Map > Alphabetical view > Walmart Supplier Information Manuals>Supplier Shipping & Routing Guidelines

Sustainable Packaging Scorecard help: Retail Link > Site Map > Alphabetical view >Sustainable Packaging Scorecard Help

UPC requirements: Retail Link > Site Map > Alphabetical view > Walmart Supplier Information Manuals>UPC Requirements

Walmart.com case, packaging & pallet requirements: Retail Link > Site Map > Alphabetical view >Walmart Supplier Information Manuals>Walmart.com packaging and labeling guidelines

2 Walmart Stores, Inc. Confidential 2013

TABLE OF CONTENTS

IMPORTANT CONTACT INFORMATION ...... 5 WALMART’S DISTRIBUTION NETWORK ...... 6 Grocery Distribution Network (GDC’s) ...... 6 Regional Distribution Network (RDC’s) ...... 6 Fashion Distribution Network (FDC’s) ...... 6 CARTON HANDLING ...... 6 Pack Types ...... 7 Master Pack ...... 7 Vendor Pack ...... 7 Warehouse Pack ...... 7 Case-pack ...... 7 Break-pack ...... 7 Conveyable Shipping Cartons (Vendor pack cases) ...... 8 Conveyable Cases and Packaging ...... 9 Conveyable Warehouse Packs (Inner-Packs) ...... 9 Non-conveyable Cartons ...... 9 Non-Standard Shipping Carton (Masterpacks or Overpacks) ...... 9 Additional Carton Considerations: ...... 10 Container Surface ...... 10 Adhesives ...... 10 Openings, Gaps & Windows ...... 10 Perforated Cartons ...... 10 Liquids ...... 10 Compression ...... 10 Vibration & Abrasion ...... 10 Glass / Ceramic / Fragile Merchandise Packaging Requirements ...... 10 Shrink-Wrapped Cases (Heat Shrink Plastic) ...... 12 Straps and Bands ...... 12 Case and Pallet Handling Graphics ...... 12 Weight and Size Considerations ...... 12 Hazmat Labeling Compliance ...... 13 DOMESTIC CARTON MARKING AND LABEL REQUIREMENTS ...... 13 Product Identification Information ...... 13 Date Requirements ...... 14 Mixed Dated Pallets ...... 14 Acceptable Labeling of the Vendor Pack case ...... 15 INNER PACK MARKINGS (all break-packs, whether domestic or import orders)...... 15 Polybags for Inner Packs ...... 16 Domestic Shipping Label Requirements ...... 16 Shipping Label Examples ...... 17 Label Placement ...... 17 Shipping Label and Bar Code Verification ...... 17 Pallet Labels ...... 18 3 Walmart Stores, Inc. Confidential 2013 Shipping Labels: LTL shipments – Less than Truck Load ...... 18 Direct to Store Label Requirements ...... 18 SCC-14 Interleaved 2 of 5 Bar Code (ITF-14) ...... 19 SCC-14 Carton Bar Code Location ...... 19 CREATING THE SHIPPING CONTAINER BAR CODE SCC-14 (I 2 OF 5) ...... 20 Example of creating the SCC-14 (I 2 OF 5) ...... 21 PALLET STANDARDS ...... 21 Minimum Pallet Standards ...... 21 Alternative Pallet Materials ...... 22 Global Standards for Wood Packaging Materials (WPM) ...... 22 Approved Pallet Poolers ...... 23 Palletized Height and Loading ...... 23 Pallet Overhang ...... 23 Palletized Bagged Products ...... 24 Pre-Assembled Pallets and Corrugated Display Units ...... 24 Stretch Wrap ...... 25 Slip-Sheets ...... 25 LOADING CONSIDERATIONS (domestic shipments) ...... 26 Column and Interlock Stacking ...... 26 Multi-SKU Pallet Opportunities ...... 26 Item Layer Configuration ...... 27 PO Layer Configuration ...... 28 Unitized Stacking ...... 29 Produce pallets and Reusable Plastic Containers (RPCs) ...... 30 Inbound Pallet loads for Produce and RPCs ...... 30 Examples of Good and Bad Pallets ...... 30 RPC Trailer Loading Instructions ...... 31 PO Trailer Separation ...... 32 Item Trailer Separation ...... 32 Trailer Measurements ...... 33 Trailer Loading Patterns ...... 34 BILL OF LADINGS / PACKING SLIPS ...... 35 Packing Slip ...... 35 GUIDELINES FOR GLN ADDRESS INFORMATION ...... 35 Bill of Lading Requirements ...... 36 VICS Bill of Lading Example ...... 37 Logistics Glossary ...... 40 Frequently Asked Questions ...... 44 Appendix A-1: FedEx Labeling and PO Compliance ...... 45 Appendix A-2: UPS Labeling and PO Compliance ...... 51 Appendix B: Hazardous Package Marking and Labeling...... 54 Appendix C : Plastic Bag Safety Labeling Requirements ...... 55 Appendix D: Shoe Packaging and Labeling Requirements ...... 59

4 Walmart Stores, Inc. Confidential 2013 IMPORTANT CONTACT INFORMATION

Accounts Payable 479-273-4089

ASN requirements 479-273-8888

Carrier Relations 479-273-6554

DC Carton Markings & Labeling 479-273-6332

EDI Help Desk 479-273-8888

General Supplier Info Walmart buyer

Item UPC information 479-273-6260

LTL Traffic Administration [email protected]

Retail Link Help Desk 479-273-8888

Routing Compliance 479-273-6359

Sam’s Club Packaging 479-277-8531

Sam’s Club Logistics 479-277-7847

Traffic Analyst 479-277-9560

GS1 (Global Barcode Standards) http://www.gs1us.org

VICS Bill of Lading http://www.vics.org/guidelines/bol

Walmart DOT COM Packaging [email protected]

Walmart DOT COM Labeling [email protected]

Walmart Warehouse Admin. 479-273-6332

5 Walmart Stores, Inc. Confidential 2013 WALMART’S DISTRIBUTION NETWORK

Depending upon the type of domestic merchandise being sent into the Walmart’s Logistics Network, your cartons will flow through one of the following distribution networks. The Supplier is responsible to ensure that the packaging can sustain the distribution environment from manufacture all the way to the store shelf.

Grocery Distribution Network (GDC’s) The grocery network consists of distribution centers across the U.S. Merchandise shipped to this network should be palletized. After the receiving process, the pallets are generally put away to a reserve location until needed for Orderfilling. Orderfilling takes place via a voice pick process where the Selector moves from pick slot to pick slot building the outbound pallet by store order. Completed store pallets are shrink-wrapped and loaded onto the outbound trailer. The Grocery network handles both dry grocery and perishables (dairy, deli, frozen, meat, and produce). While this network is typically considered conventional warehouse distribution, Walmart has started to incorporate some Automatic Storage and Retrieval System (ASRS) technology into the newest Grocery DC’s. Known as Mechanized Grocery Distribution Centers, these buildings utilize mechanized palletized storage during the receiving process and mechanized retrieval processes during the order replenishment process.

Odd sized pallets are not acceptable when shipping through the GDCs. All product must ship on a standard 48x40 pallet.

Regional Distribution Network (RDC’s) Walmart’s Regional Distribution Network takes advantage of high speed conveyors and sorting equipment to move freight from the inbound process to a specific outbound store trailer quickly and efficiently. This network is designed to ship individual cases via conveyor from multiple induction points through a central merge station and onto the shipping trailer. Walmart has two basic types of RDCs, batch processing centers where stores are grouped into batches for shipping and Door-per- store centers where a shipping door for each store is designated. Regional Distribution Centers process freight in full pallet quantity, individual conveyable case quantity, individual non-conveyable case quantity, and break-pack quantity. Freight is designated as Staple Stock (held in DC inventory) or Distribution (flow through inventory).

The recommended shipping method into the RDC network is palletized. Approval to floor load or slipsheet inbound freight must be obtained through the Sr. Merchandise Support Manager for Packaging at 479-273-6332.

Fashion Distribution Network (FDC’s) These distribution centers combine the latest technology with proven Regional Distribution Center processes to ship both full case and individual SKU to the store network via cross-dock through the RDC’s.

CARTON HANDLING Walmart’s Logistics Network incorporates state-of-the-art technology as part of providing exceptional service to our stores. The physical appearance and structural integrity of the shipping carton is as important to our customer as the commodity itself. The supplier is responsible to ensure proper packaging to protect their product as it moves throughout the supply chain. General corrugated box construction/design should follow the guidelines and recommendations found in: ASTM D5118 (http://www.astm.org) and Fibre Box Handbook (http://wwwfibrebox.org). Walmart requires the following carton specifications to ensure efficient Distribution Center processing.

6 Walmart Stores, Inc. Confidential 2013 Pack Types Master Pack Walmart uses this term to define a package shipped from the Supplier to the Distribution Center that contains multiple vendor packs inside one carton. It is NOT advisable to ship in Master Packs. Purchase orders are written specifying the number of Vendor Packs ordered and that should be the quantity configuration. To ship in a configuration different than what the PO specifies can result in delayed payment, wrong quantities to stores, delayed processing and many other issues.

Vendor Pack Walmart uses this term to define the package shipped from the Supplier to the Distribution Center as specified on the PO. Vendor Pack quantity will be expressed as the total number of selling units in the case the supplier ships to the DC.

Warehouse Pack This term defines the pack that will be shipped from the Walmart DC to the Stores. The Warehouse Pack quantity will be expressed as the total number of selling units in the configuration the DC ships to the Store.

Case-pack Indicates that the item was created with matching Vendor Pack (shipping case) and Warehouse Pack (inner-pack) quantities. The store receives the entire case quantity.

Break-pack If it is not practical to ship an item to the stores in a full case-pack quantity and/or the vendor pack case is too small to be conveyable, your buyer should create the item as a break-pack. A break- pack item is any item with a vendor pack quantity that is larger than the warehouse pack quantity. These items will be ordered from the supplier in the vendor pack quantity. Within the vendor pack, the supplier is required to securely pack the merchandise according to the warehouse pack quantity. The warehouse pack must be contained so that the picks do not come loose during the orderfilling process. Plastic or cardboard bands or sleeves are not recommended. The store receives the warehouse pack in a larger box packed by the DC with other break-pack items for a specific store.

7 Walmart Stores, Inc. Confidential 2013

Conveyable Shipping Cartons (Vendor pack cases) Case pack cartons that fall within the following minimum and maximum case requirements are considered conveyable. Regional DCs and Fashion DCs have conveyors. Grocery DCs do not. Conveyable merchandise must be packaged to withstand normal conditions within a Distribution Center.

Conveyable cases and packaging can be subjected to heavy compression on the rollers and belts as well as vibration, abrasion, temperature and humidity changes during normal DC handling and processing. Conveyable cases and packaging must be able to withstand a standard 3 foot drop test. Cases must stay intact and protect the merchandise within the case. It is highly recommended that a supplier conduct ISTA 3A testing on conveyable cases shipping into the Regional or Fashion DCs.

Minimum Requirements- 9” long, 4” wide, 3” tall, at least 2 lbs.

Maximum Requirements- 48” long, 24“ wide, 30” tall, no more than 55 lbs. OR 36” long, 25” wide, 30” tall, no more than 55 lbs.

Items that do not meet the minimum conveyable case dimensions of 9” long, 4” wide and 3” high and weighs less than 2 lbs. may have to be created as a break-pack item.

8 Walmart Stores, Inc. Confidential 2013 Conveyable Cases and Packaging • Cases cannot have protrusions or any banding on the outer packaging. • Dimensions and weight must meet the requirements on page 8. • Cases or packaging cannot be round or irregular. • Items must be tightly secured within their case or tray. • Hazardous merchandise or liquid merchandise cannot leak if the package is broken. • A supplier’s internal bar code label should not be placed on the top of the case as it may interfere with the conveyor’s scanning equipment. • Corrugate trays wrapped in plastic must have a solid flat base with no loose plastic or loose ends. Plastic must be a thick enough mil so that it does not tear or pull loose when riding the conveyor.

Conveyable cases that are not packaged properly negatively impact the speed and efficiency of freight flow through the DCs. Conveyable items that have to be processed in the non-conveyable area due to poor packaging are manually sorted and brought to the shipping dock. The shipping Associates must manually load the items to the trailer. Poor or insufficient packaging will increase overall supplier costs by adding delays to the store and additional case handling requirements into the shipping process thereby reducing supply chain efficiency.

ISTA 3A testing is highly recommended to evaluate the packaging of your conveyable carton

Conveyable Warehouse Packs (Inner-Packs) If the warehouse pack meets the conveyable case requirements stated on page 8, every effort should be made to set the item up with the buyer as a case pack. It is very inefficient for the DC to handle conveyable freight through the break-pack process.

Non-conveyable Cartons Although we prefer conveyable cases, not all cases and packaging can be conveyed in our Regional Distribution Centers. Certain items are naturally too large or awkward to be conveyable. For example bicycles, outdoor furniture, lawnmowers, large TV’s, tires, garden tools, and long rugs. These items exceed the maximum dimensions and weight for conveyable cases and are acceptable non-conveyable items.

• Non conveyable cartons. The maximum height is 85’’ without a pallet. This is also the maximum height when creating a configuration for a pallet “pull item”. A “pallet pull” is an item that is shipped to stores as an entire pallet. The maximum height is 90” height with a pallet.

Do not ship cartons of merchandise in metal racks or metal crates without the expressed approval of Walmart’s Logistics

Non-Standard Shipping Carton (Masterpacks or Overpacks) A “Masterpack” is a carton that contains more than one “Vendor pack”. Suppliers at times request to combine several vendor packs into one masterpack to save on shipping costs. Since Walmart DCs receive by the vendor pack, Purchase Orders may be received short if “masterpacked”.

WALMART STRONGLY DISCOURAGES THE SHIPPING OF MASTERPACKS TO THE DISTRIBUTION CENTERS. SUPPLIERS SHOULD ONLY SHIP IN THE VENDOR PACK SIZE ORDERED BY THE BUYER.

9 Walmart Stores, Inc. Confidential 2013 If you choose to use Masterpacks, despite our recommendation to the contrary, you should take note of the following:

1) The Distribution Center may receive the Masterpack as a single vendor pack and could possibly send the entire Masterpack to a store as one case. 2) The accounting department and the Distribution Centers have no way of verifying freight once it has been shipped to the stores. 3) Walmart cannot provide a proof of delivery (POD) for masterpacks. 4) Walmart cannot guarantee proper receiving or processing of masterpacks.

DO NOT SHIP IN MASTERPACKS

If a supplier insists on shipping in Masterpacks, they are waiving the right to dispute any claim for any shortages related to this issue with the Walmart DCs and Accounts Payable.

Additional Carton Considerations: Container Surface All cartons and packaging surfaces must be flat and strong enough to support its weight and the weight of other cartons placed on top without distortion, deflection or bending.

Adhesives Since our DC’s are located throughout the United States, flaps should remain secure with an adhesive that can withstand normal handling, compression, humidity and a range of temperatures.

Openings, Gaps & Windows Any openings or windows on a case must be capable of being used as hand holds during the orderfilling process. Any openings in shrink wrap must fully contain the product within the carton or tray.

Perforated Cartons Perforated cartons must be able to withstand warehouse handling without damage.

Liquids All liquids should be marked “THIS SIDE UP” by the supplier and shipped accordingly.

Compression Cases must be able to withstand side-to-side and end-to-end compression that normally occurs on the DC’s conveyor system. Reduce airspace within a case to avoid product damage. If your product is packaged in perforated cartons, ensure they comply with the proper compression standards.

Vibration & Abrasion Conveyable containers will ride several miles of rollers and belts on the conveyor system, quality packaging is required. This is particularly important for: • Heavy merchandise with relatively small footprints that concentrate pressure on a very small area of the container. • Containers with shrink-wrap or film for containment. • Items packaged in glass containers.

Glass / Ceramic / Fragile Merchandise Packaging Requirements Items packaged in glass containers should have a corrugate divider in between the glass to reduce damages from compression and vibration. • Product should never be shipped in a carton/container/primary packaging where it is in direct contact with like product within the same container. No glass on glass contact. • Corrugated partitions or equivalent are required to be used for this type application. (See Photo and Graphic Illustration Below)

10 Walmart Stores, Inc. Confidential 2013 • Partitions & layer barriers should be manufactured of a substrate capable of protecting merchandise from impact damage from normal handling and transportation. • All cartons containing fragile merchandise should be clearly marked with a graphic icon depicting the fragility of the merchandise (See Graphic Illustration below)

ISTA 3A testing or equivalent is highly recommended on any fragile or glass product shipping through the Regional DC network.

Sustainability goals should not compromise the packaging needed to protect the product through the supply chain

11 Walmart Stores, Inc. Confidential 2013 Shrink-Wrapped Cases (Heat Shrink Plastic) Cartons may be contained with shrink-wrap as long as the mil (thickness) is sufficient enough to withstand abrasion, stacking, or protrusions encountered in normal handling, conveying, as well as the loading and unloading process. The carton base must be flat and rigid with a corrugate tray or pad. Plastic must fit tightly around the case with no loose ends. Bullet holes on the ends of the containers should be small enough so that the product does not fall out of the case during normal distribution center handling.

Straps and Bands Straps or bands are not allowed on conveyable merchandise. Straps and bands are only allowed on produce pallets and non-conveyable items such as swing-sets, tables, or other heavy type merchandise over 55 pounds. Metal banding and clasps are not acceptable. Banding together multiple vendor pack cases is not allowed.

Case and Pallet Handling Graphics The exterior of the shipping unit carton should be marked with ONLY the applicable symbols or icons. These symbols will assist the shipper, our Distribution Centers, and stores in determining proper handling necessary for the shipping carton to arrive at destination in good condition. The graphics and description must be large and easy to read by the handler. Additional seasonal or department bands and icons may be required by the Walmart Private Label Packaging Team.

Weight and Size Considerations Keep these general guidelines in mind: Avoid designing a box that will be stood on edge when displayed. Place graphics on the box so that it can be stacked and still allow the customer to view the graphics. Consider placing handhold cutouts in the box to make handling easier for heavy cases. A "Team Lift" graphic is required on heavy boxes greater than 50 lbs or when one side of the carton dimensions is greater than 44 inches. Team lift logo should be placed on 3 sides of the carton (1 on the top panel and 2 side panels) Cases shipped in the Grocery DCs should not exceed 50 lbs unless approved.

12 Walmart Stores, Inc. Confidential 2013 Hazmat Labeling Compliance Shipping cartons containing hazardous materials must be marked within DOT regulations. See Appendix B of this document for additional details. • Cartons that are shipped to Walmart that do not comply with DOT regulations must be re- labeled prior to shipping to the stores at the supplier’s expense. • Hazmat markings cannot be obstructed or covered by any other labeling. • Hazmat labels cannot be folded over the edge of the shipping carton.

Hazmat Marking Obstructed UN number Obstructed

DOMESTIC CARTON MARKING AND LABEL REQUIREMENTS Walmart established these guidelines to improve our processing accuracy and get the freight to the stores more efficiently. Walmart requires the following information on all standard shipping cartons:

Product Identification Information Shipping or Pallet Label SCC-14 Shipping Container Bar code (Interleaved 2 of 5 format)

Standard shipping cartons are full vendor pack cases containing one or more retail selling units (“eaches”). Non-standard applies to pre-assembled displays, non conveyable merchandise and specially packaged merchandise.

Product Identification Information All vendor pack cartons must be printed with the following human readable information:

• Vendor Stock Number (supplier’s internal item number) • Product Description • Sell by Date (if applicable) • Temperature control instructions (if applicable) • Color, Size or Style (if applicable) • Pack (number of selling units in the carton) • Walmart Item Number if an assortment, shoes or apparel. • Country of Origin (COOL) – required on all unprocessed meat and produce. • SCC-14 Interleaved 2of5 bar code (required for cartons containing multiple selling units) • Selling unit UPC (only applies to single packed items with one selling unit in the vendor pack case such as a TV or computer) 13 Walmart Stores, Inc. Confidential 2013 Date Requirements Perishable products must be dated with a pack date or sell-by date. If the pack date is used as a reference, the supplier must provide guidelines to maintain freshness and quality. If the item contains a sell-by date on the retail unit, the outside of the carton should be clearly marked with the sell-by date. Walmart recommends the format of pack dates and sell by dates to be MM/DD/YYYY, with a minimum of ½ inch font.

Dated perishable products are received under strict rotation by one of the following dates:

• Receiving Date-The date product was received, including all frozen products, fresh beef, pork, and poultry. • Sell-by Date- The date indicated on the product that it must be sold by at retail (This must be included on the outside of the case if the selling unit contains a sell-by date. This includes produce, deli and dairy products.) • Pack Date-The actual date the product was processed.

The original purchase order due date will be used to determine date compliance for receiving acceptance. If the actual receiving is delayed due to Walmart, SAM’S CLUB or distribution direction, product acceptance will still be governed by the original purchase order due date.

Mixed Dated Pallets We strongly discourage the mixing of dates on a pallet. If there is a need to mix dated product on a pallet, then the following steps must be followed:

o The pallet should be stacked with the oldest date on the top of the pallet. o The dating on the case should be turned outward on the pallet. o A slip sheet should be placed between each layer where the date changes. o The pallet should be clearly marked with an additional 8.5 by 11 inch label on all four sides of the pallet stating “Mixed Dated Pallet” o The label should also include the number of cases per date that is contained on the pallet.

Carton markings should not be confused with Shipping Labels. Carton markings identify all information that is specific to the shipping carton while the shipping label identifies information that is specific to purchase order.

Carton marking information may be printed directly on the corrugated carton or printed on a label and applied to each shipping carton. The Product ID information should then be placed on at least two sides of the carton with one side facing outward on the pallet. If stenciling is the only means to mark the cartons, then a minimum of one quarter inch (1/4”) lettering must be used. Exceptions pertain only to bagged products or non-corrugated packaging (i.e. potting soil, bagged dog food, ladders, etc.) where the information is visible on the bag or stickered on the product itself.

14 Walmart Stores, Inc. Confidential 2013 Acceptable Labeling of the Vendor Pack case

Printed on Carton Product ID Label

Shipping Label SCC-14 Bar Code Shipping Label SCC-14 Bar Code

Product ID Label Enlarged

INNER PACK MARKINGS (all break-packs, whether domestic or import orders) Inner packs are warehouse packs that will be broke out and sent to individual stores by the DC. Inner packs must be properly secured so the eaches do not come loose during orderfilling. Plastic or cardboard bands or sleeves are not recommended.

Inner Packs required markings:

• Scannable item UPC (With exception to Direct Imports) • Pack Size • Visible Product Description • Walmart Item Number and/or Vendor Stock Number • For Walmart private label orders, please also include any other markings required by the relevant Packaging Tool Kit.

Note: Inner Pack requirements for shoes- See Appendix D

The SCC-14 bar code is not to be applied to the Inner or Warehouse Packs

15 Walmart Stores, Inc. Confidential 2013 Polybags for Inner Packs Polybags may be used for inner packs. The polybag must be sealed shut, so the product does not fall out of the bag during orderfilling. Hangers must be enclosed within the polybag for replenishment apparel sets. Articles packaged in plastic or poly bag that are less than one mil require a warning statement to be printed on the bag to caution consumers that the bag is not a toy and could cause suffocation if used improperly.

Warning: To avoid danger of suffocation, keep this plastic bag away from babies and children. Do not use this bag in cribs, beds, carriages or playpens. This bag is not a toy.

See “Plastic Bag Safety Labeling Requirements Appendix C” for additional details.

Outer poly bags for apparel should be Clear Polyethylene at least 1.25 mil thick with the following specifications: Low Density, Virgin Polyethylene Medium Slip, HI Anti Block (a super floss additive that prevents poly bags from sticking together) No BHT (BHT is Butylated Hydroztoluene prevents garments from yellowing) Puncture Resistant Import – PE 04 Polyethylene bags are acceptable

Unacceptable poly bags are Dry Cleaner bags and Import poly bags made from Polypropylene commonly referred to as PP.

Domestic Shipping Label Requirements Suppliers are required to use the standard shipping label format shown on page 17. Walmart does not provide a template for this label. It is the supplier’s responsibility to create the label in the format seen on the following page.

See appendix A1 and A2 for FedEx and UPS small package labeling instructions.

Shipping labels are recommended to be 4X6 inches when including the bar code information, but can vary with different size boxes as needed. The standard shipping label must contain the following:

• “Ship From” Address — Suppliers address, city, state, zip code • “Ship To” Address — Walmart DC address, city, state, zip code including expanded GLN address • Postal Bar code — (optional) • Carrier Name- (if available) • Pro Number — (if available) • Bill of Lading Number — (if available) • Facility / Location— 5 digits (Walmart DC number i.e. 06094) • Purchase Order Type — 4 digits (PO TYPE i.e. 0020) • Department Number — 5 digits (Walmart DEPT number i.e. 00013) • Purchase Order Number — 10 digits (ORDER #) • Walmart Item Number- (WMIT #) • 14-Digit Shipping Container Code (SCC) Bar code

If the SCC-14 bar code is pre-printed on your carton or on a separate label, use example shipping label “A”. The SCC-14 bar code can be part of the shipping label if not pre-printed on the case or applied on separate label. See example label “B”.

16 Walmart Stores, Inc. Confidential 2013 The SCC-14 bar code must be on each vendor pack carton, whether on the shipping label or on the printed directly on the carton.

Shipping Label Examples Example shipping label “A” Example shipping label “B”

Label Placement Place your shipping label left of center on the case if possible. See example on page 15. This label should be on the long side of the box with the bottom of the case laying flat. If the height of the case does not allow for this placement, place the label on the top of the case, making sure the label does not straddle any seams, could be damaged by tape, or obscured in any other manner. If your SCC- 14 bar code is part of your shipping label, place the SCC-14 bar code as instructed on page 19 and fold the rest of the label over the top of the case.

Shipping Label and Bar Code Verification Walmart recommends that new suppliers fax or email a sample shipping label and SCC-14 bar code for review. Walmart will review to ensure that all the required information is on the shipping label and that the bar code scans in the correct format. We are not verifying that the information on the label is correct. This is the supplier’s responsibility.

Please only send one sample label. It is not necessary to send in multiple samples. Sample label should be emailed or faxed a minimum of 3 days prior to your ship date. You will receive a response to your label status within 24 hours (Monday-Friday).

Fax: 479-277-1604 or e-mail: [email protected].

Please include “Bar code Verification” and the Walmart department number in the subject line.

Label approval is for Walmart DC labels only and does not apply to Sam’s Club, Direct Imports, Walmart dot com or Direct to Store shipments.

17 Walmart Stores, Inc. Confidential 2013 Pallet Labels A pallet label may be used in lieu of a shipping label on each case only when shipping unitized pallets to the DC in full truckload quantity. A unitized pallet is a pallet of at least 40” in height with items on the same PO going to the same DC. The Pallet label requires the same format and information as the shipping label. The pallet label must also include the total number of cases on the pallet. The SCC-14 bar code should only appear on the pallet label when the item is a full pallet pull or pallet display.

A “pallet pull” is an item that is shipped to stores where the entire pallet is considered one case. A PDQ is a pre-assembled pallet or display ready for the store floor. An 8x11 inch placard should also be used to identify “pallet pull” and “PDQ” display shipments. These types of pallets should be labeled: “Pallet Pull DO NOT BREAK DOWN” or “PDQ DO NOT BREAK DOWN” • If a unitized pallet made up of one item, the label should list the Walmart item number below the purchase order number. If more than one item is on the pallet, the WMIT field should read “Mixed Pallet”. • Pallet labels should be placed on at least 2 adjacent sides of the pallet on the upper left side in between layers of shrink-wrap. • Pallet label can be an 8” x 11” placard or a 4x6 label.

Orders shipped as individual cases (floor loaded or LTL loads) must have a shipping label on each case.

Shipping Labels: LTL shipments – Less than Truck Load If you ship collect LTL, you must label each carton with a shipping label. Walmart Consolidation facilities reserve the right to break down any pallet or pallets moving through their facilities to assist in maximizing overall trailer cube. Pallets must be able to withstand another pallet of merchandise or assorted cartons of merchandise stack on top of the pallet.

Any exceptions to labeling every carton must be approved by the GM Consolidation team. The GM Consolidation team will approve or disapprove the request based on sufficient or insufficient justification. All approved pallets (not being broken down) will be clearly marked with a detailed placard approved by the GM Consolidation team. Unless you have written approval from GM Consolidation team in Walmart Corporate Traffic for an exception to this guideline, all POs are to be separated on the floor and/or separated on individual pallets.

It is not acceptable to load POs for multiple DCs on the same pallet or mixed them throughout the trailer. The consolidation facilities process freight by PO number only. Maintaining DC and PO segregation helps to ensure the accurate shipment to the correct DC’s.

Unique circumstances may allow suppliers to load multiple DC shipments on the same pallet. Written exception approval must be given by the GM Consolidation team. Please send all questions and request for exceptions to the GM Consolidation team at [email protected] . Additional information regarding Walmart Consolidation shipments can be found on Retail Link in the document titled “Shipping and Routing Instructions for Walmart Stores, Inc.”

Direct to Store Label Requirements Direct to Store (DTS) shipments bypass the distribution centers and go directly to the stores. Shipping labels for Direct to Store Shipments should use the same label format and information required for shipping through the distribution centers.

Each store shipment must include a packing slip affixed to the outside of the carton. 18 Walmart Stores, Inc. Confidential 2013 SCC-14 Interleaved 2 of 5 Bar Code (ITF-14) Walmart requires an SCC-14 bar code on all vendor pack cases that contain multiple selling units when shipping to a Walmart Regional Distribution Centers, Specialty Distribution Centers, Grocery Centers and Fashion Centers

• All PDQ’s and pallet displays that are packed with multiple quantities of the same items, must have an SCC-14 interleaved 2 of 5 bar code.

• All PDQ’s and pallet displays that are packed with assorted multiple items must have a unique assortment SCC-14 interleaved 2 of 5 bar code.

NOTE: Single packed items with one selling unit in the vendor pack case do not require a SCC-14 Bar Code. The item UPC should be put on the cartons and visible on the item when it is received. If you use a removable UPC or tear off UPC label it must be applied so it can withstand the conditions of the warehouse receiving systems so it does not come off.

The SCC-14 interleaved 2 of 5 bar code is not required to be provided to Walmart before it is received in the distribution center. Each individual DC catalogs the bar code information into their system when they receive the merchandise upon first receipt.

Interleaved 2 of 5 is a numbers only bar code. The high density code is 14 characters in length with the final digit as a check digit. The “interleaved” part of the name comes from the fact that a digit is encoded in the bars and the next digit is encoded in the spaces. The encoded digits are “interleaved” together. More information regarding the SCC-14 Interleaved 2 of 5 bar code and bar code generating software can beSHIPPING found throughCONTAINER internet CODE searchFORMAT engines.

0 00 12345 67890 5 PIPI NNNN MMMM IIII C C Packaging Number System Manufacturer Item ID Check Digit IndicatorPackaging CharacterNumber UPCManufacturer Number Item Check Indicator System UPC I.D. Note: Walmart recommendsNumber black Digitbars with a white background. Red Laser scanning devises are blind to Red, Blue, and Brown, andCharacters shades of Purple.Number DO NOT use these colors when creating your barcode label.

SCC-14 Carton Bar Code Location The shipping container bar code location should be located right of center on the longest side of the shipping carton or facing outward on the pallet. The bottom of the bars must be no less than 1.25 inches above the container's natural bottom and no more than 3.0 inches above the containers natural bottom. The outer edge of the right quiet zone must be no closer than 0.75 inches to the right edge of the vertical face. It is important to maintain these locations to prevent damage of the

19 Walmart Stores, Inc. Confidential 2013 bar code due to "edge crush". Applying the SCC-14 bar code on multiple sides of the carton is highly recommended. The bar code is recommended to be .75” in height and 3” long.

CREATING THE SHIPPING CONTAINER BAR CODE SCC-14 (I 2 OF 5) It is the supplier’s responsibility to create the SCC-14 bar code. Walmart does not provide the tools or software necessary to create bar codes. The 14-digit bar code (Interleaved 2 of 5) provides a unique SKU identification number that is cross-referenced at the DC to a specific Walmart item and pack. The SCC-14 is very similar to the 12-digit UPC product code. Both symbols use a unique manufacturer’s number that identifies the merchandise producer or labeler and a 5-digit item number assigned by the manufacturer to a specific product. The SCC-14 provides additional pack level identification for any given carton.

SCC-14 Character Identification First Digit - Packaging Indicator The packaging indicator can be any number from 0 to 8. When the vendor pack contains a pack of all the same item UPC, use a packing indicator ranging from 1 thru 8. For example, 1 may represent a pack of 12, 2 may represent a pack of 36, etc. The packaging indicator must be unique only within the same item UPC. It is not necessary to maintain the same PI across different items. When a carton contains more than one selling unit of multiple different UPC’s, use a packaging indicator of 0 is required. A new item number must be assigned for a standard assortment. The assigned item number must be unique from any other item in your category of products.

Second & Third Digits - Number System Character The number system character is assigned by the Uniform Code Council as the first digit in each manufacturer’s 6-digit UPC identification number. A zero is always inserted before the number system character. For example:

• If your selling unit UPC is 0 12345 67890 5 — the NN is 00. • If your selling unit UPC is 6 12345 67890 7 — the NN is 06.

Note: If the SCC-14 bar code is based off the EAN-13 you should not insert a zero. Digit’s Four Thru Eight - Manufacturer’s UPC Number This 5-digit number is always the manufacturer’s UPC identification number. When the number system character is added, the complete manufacturer’s ID number is six digits long.

Digit’s Nine Thru Thirteen - Item ID There are two ways of assigning an item ID: 1. Use the same 5-digit number assigned to the UPC of the item in the carton. Bonus packs, promotional packs, special displays, and product containers that have matching UPC item numbers and standard pack replenishment item numbers must be identified by a unique item number used in conjunction with a PI of 0. On these items, a unique packaging indicator may be used to differentiate these products. 2. Use a unique 5-digit number for each level of packaging of the same product. A unique item number must always be used to identify assortments with more than one consumer package UPC inside the inner carton or shipping container. When the item number is different than the product inside the shipping container, you must use 0 as the packaging indicator.

Digit Fourteen – Check Digit The check digit is based on the data from the other 13 digits and the following formula: Shipping Container Code 0 0012345 67890 5 1. Starting with the packaging indicator, add all the characters in the odd positions. 0+0+2+4+6+8+0=20 2. Multiply the sum by three. 20 Walmart Stores, Inc. Confidential 2013 20x3=60 3. Add all the characters in the even positions. 0+1+3+5+7+9=25 4. Add the product from the second step to the sum of the third step. 60+25=85 5. The check digit will be the number that gives the next highest multiple of 10 when added to the sum of step 4. 85+5=90 The check digit is 5. Use verification equipment to test the shipping container code. Be sure to verify all 14 digits, including the check digit.

Example of creating the SCC-14 (I 2 OF 5) Below is an easy way to create the SCC-14 bar code from your 12 digit item UPC. Example: 6 pack of canned corn. 12 digit item UPC – 0 12345 67890 5

1) Drop check digit on item UPC and add a leading zero- 00 12345 67890 (do not add leading zero if using an EAN-13 to generate the SCC-14 bar code) 2) Establish the PI. Cans of corn in case are all the same. Six pack is the smallest pack size for this item, so your PI would be 1 00 12345 67890 3) Calculate a new check digit following the steps above. 1 00 12345 67890 2

ASN SSCC-18 Serial Shipping Container Code This is an optional bar code placed on shipping cartons. Currently, only PO types 73 (DSDC) and PO type 07 (DTS) use the SSCC-18 bar code for receiving purposes. Suppliers may use internal SSCC-18 bar codes. These bar codes should not interfere with or replace the required SCC- 14 bar code.

Additional Information For more detailed information on shipping container codes, contact the GS1 US in Dayton, Ohio at (937) 435-3870 or www.gs1us.org

PALLET STANDARDS For domestic orders, the preferred method of delivery into a Walmart DC is on a pallet. For direct import orders, cargo must be floor loaded unless otherwise instructed in the PO.

Walmart requires that all pallets shipped into Walmart DCs meet or exceed the Grocery Manufacturers Association (GMA) Grade “A” pallet standards. Product may be stored in a standard rack on a supplier’s pallet for an extended period of time. Pallets must support the weight of the product shipped on them.

Fees or chargebacks may be enforced for pallets that fail to meet the below requirements

Minimum Pallet Standards Width: 40-inch Length: 48-inch Material: GMA, Group III or IV, hardwood, clean saw Deck Coverage: Top Deck 63% Bottom Deck 47% Grade: Grade A, 4-way, flush and non-reversible • Sound material, free of knots. • Minimum 7 top boards, Minimum 5 bottom boards, and 3 stringers.

1) No missing or broken boards on top or bottom. 2) No double stringers, patched boards or metal repair plates. 21 Walmart Stores, Inc. Confidential 2013 3) All stringers are solid, not broken and/or having cracks visible from three sides and longer in run than one inch. Weathering cracks which are not continuous and not visible from three sides are allowable. 4) Pallets are not required to be bleached white but should be clean and odor free. Clean pallets are free of debris and stains, but discoloration due to aging is acceptable. 5) No cracks on the top or bottom boards greater than 1/8" wide and 15" inches in length. 6) No exposed splinters greater than 3 inches in length. 7) No tapered breaks with a depth of greater than 1 inch along a ten inch or more run. If at the ten inch distance, the depth is less than inch, the pallet is good. The pallet is unacceptable if the one inch depth runs the entire length of board. 8) Nail heads or nail points are not to exceed 1/8" exposure from the surface of the wood. Pallets will not be rejected because of exposed nails unless the top or bottom board surface between nail head and stringer has been destroyed. 9) No partial footings. Partial footings occur when 1/4 of a stringer board width or length that connects it to a bottom board has been removed or when securing nail shanks are exposed in the stringer.

Odd sized pallets are not acceptable when shipping through the GDCs. Product must ship on a standard 48x40 pallet.

Any non-standard size or alternate material (non-hardwood) must be approved by the Walmart Sr. Merchandise Support Manager for Packaging at 479-273-6332.

Alternative Pallet Materials Walmart supports the use of alternative pallet materials such as plastic, metal, etc., however, all alternative materials must be approved by Warehouse Administration. Approval may require proof of structural capability and/or fire rating. All standard pallets must be edge rackable. Corrugate pallets are not acceptable pallets to ship into the Walmart DCs.

Global Standards for Wood Packaging Materials (WPM) Global standards for Wood Packaging Material (WPM) addresses the proper treatment requirements for WPM shipped into Walmart. This document can be found on Retail Link by following the path below. Walmart’s Global Requirements regarding Wood Packaging Material supports the ISPM 15. All regulated wood packaging material shipped into Walmart must be properly treated by heat treatment or methyl bromide fumigation.

2,4,6 tribromophenol (TBP) is banned in the United States, Europe, and Canada. TBP is not a registered pesticide with the Environmental Protection Agency (EPA). Therefore, it is not legal for 22 Walmart Stores, Inc. Confidential 2013 sale or use in the United States. TBP is not recognized as a wood preservative by the American Wood Protection Association (AWPA).

Retail Link > Site Map > Alphabetical view >Wood Packaging Material Requirements

Approved Pallet Poolers All Walmart suppliers have the option of leasing a pooled pallet (wooden or other composition) from any number of service providers, or purchasing a one-way “White Wood” pallet. Walmart does not endorse or recommend any specific pallet manufacturer or pooling service. All pallets must meet or exceed the GMA Grade-A specifications identified on the previous page.

Approved Pallet Poolers www.chep.com; www.igps.net; www.pecopallet.com

Palletized Height and Loading When shipping merchandise on pallets your first concern should be cubing out the trailer. Total pallet height (single stack or double stack) inside a Walmart trailer with rollup doors should not exceed 96”. For outbound shipping purposes from a Walmart DC, a “pallet pull” to the store should not exceed 84” for perishable items and 96” for dry grocery and general merchandise. A “pallet pull” is an item that is shipped to stores where the entire pallet is considered one case.

Common DC slot sizes to consider are 32”, 40”, and 72”. Suppliers are required to properly block and brace all shipments to withstand the rigors of transportation from their ship point location to the DCs. Cases must be secured to the pallet with stretch wrap. Perishable product that requires unrestricted airflow must be secured to the pallet with ventilated stretch wrap or corner boards with plastic banding or straps.

Pallet Overhang If your merchandise is placed on pallets, ensure there is no freight overhanging the edge of the pallet. Merchandise must be configured to fit within a 48x40 pallet footprint. Pallet overhang is not acceptable or approved. 2/3 of the overall compression strength of the container is based on the four corner support of the container. Example, 1" of overhang (2.54cm) will result in a 32% or more loss in top to bottom compression of the container. Overhang, as well as, underhang can lead to damaged product and under-utilized trailer cube.

23 Walmart Stores, Inc. Confidential 2013 Palletized Bagged Products Bagged products such as dog food, potting soil and fertilizer must be layered on the pallets with no overhang. These pallets should have a protective cardboard sheet that lips from the bottom layer up around the bottom two layers or at least 4 using a minimum of 200 lb. corrugate. All layers should interlock to provide stability.

Pre-Assembled Pallets and Corrugated Display Units Display pallets must be assembled to arrive intact at the store. These display units must be placed on an approved pallet with a protective cardboard shroud around the display. The cardboard shroud must not cover access to the pallet jack openings. The shroud should be labeled “Display Unit DO NOT BREAK DOWN”. Store display units should not exceed 48” in height unless approved by your buyer.

Prototype testing and evaluation is critical and should be conducted by a certified testing facility. While static appearance is important, it is not an indicator of how well the merchandise will be protected or the unit’s ability to withstand the rigors of the supply chain. Design considerations must be thoroughly evaluated and tested against known forces that the unit may encounter during its life cycle which include but not limited to: dynamic compression, double stacking, impact, vibration, and temperature and humidity changes. Poorly constructed displays maybe rejected and returned to the supplier to be reworked. ISTA 3E testing is highly recommended.

See the In-store Display & PDQ requirements on Retail Link for additional details: Retail Link > Site Map > Alphabetical view >Package Design>In-Store Display & PDQ Guide

24 Walmart Stores, Inc. Confidential 2013 Note: All displays shipped through the Grocery DC network must ship on a standard 48x40 pallet. No exceptions.

A corrugated base may be used in lieu of a pallet if the base is incorporated within the construction of the display unit. The corrugated base must function in the same manner as a standard pallet. A corrugated base must be accessible with openings that will accommodate standard power lift equipment and pallet jacks.

Top deck must be solid and secured to the rest of the display unit. Bottom deck sheets must have openings that allow the pallet jack wheels floor access between the posts.

Note: Corrugated based display units are not acceptable for staple stock inventory or items shipping through the Grocery DC network.

Stretch Wrap Merchandise placed on pallets or slipsheets must be stretch wrapped to contain and prevent damage during shipping. Stretch wrap specifications should be based on the containment force requirements outlined below. If testing equipment is not available, stretch wrap must be of top quality and a minimum 80 gauge, 15” wrap. Wrap from the bottom of the pallet upwards in an overlapping pattern. Ensure that the bottom layer is double wrapped. Double wrap while overlapping every 2-4 inches. Pallet labels must be properly secured between layers of stretch wrap.

Containment Force Containment Force is the amount of force the film exerts on the load to maintain its integrity. This is extremely important measurement when down gauging or when converting and qualifying new films. This measurement, in pounds, will show that the load has the same or greater containment force to increase the load security for successful shipments, time after time. Containment Force is the most important criteria in measuring stretch film performance. It is the only consistent measurement that can be taken regardless of the gauge of film, manufacturer of film, type of equipment or hand application.

Slip-Sheets Slip-sheets can be used for certain approved items when trailer cube utilization is a significant factor. If your item weighs out before it cubes out on a trailer, a pallet is required.

• Slip sheets must have at least 3” flaps on two adjacent sides and made of quality corrugated paper or plastic, which can be pushed or pulled repeatable without damage. • You must use slip sheets that allow you to stack the merchandise on a 48”x 40” footprint with no overhang so the load can be placed on a 48” x 40” pallet and moved within the Distribution Center. • Stack merchandise on slip sheets as you would pallets using the same standards.

Any products shipped on slip-sheets must be approved prior to shipping by the Walmart Sr. Merchandise Support Manager for Packaging at 479-273-6332

25 Walmart Stores, Inc. Confidential 2013 LOADING CONSIDERATIONS (domestic shipments)

Column and Interlock Stacking Column Stacking: The best stacking arrangement for box compression strength is vertical columns (see Figure 1). Column stacking is the best pallet pattern for strength but is less stable than interlocking. When stacking in columns as shown in Figure 1, care must be taken to insure that boxes are properly aligned. If boxes are misaligned as little as 1/2" (1.27cm) in a three stack arrangement, stacking compression performance will drop by as much as 29%.

Interlock Stacking: Interlocking pallet patterns are much more stable platforms than column stacking. Each layer is arranged in opposing directions and boxes do not align, resulting in reduced compression strength of the box. The four corners of the container do not all align; in fact three of the four sides rest on the side panel of container below. The result of this type stacking is a 45% to 55% loss in compression strength.

The pallet pattern chosen will depend on the individual tray/case design and material selection. Ship testing should be conducted to determine the most suitable pallet pattern for the package.

Multi-SKU Pallet Opportunities To assist the DCs in receiving your product, ensure that that your vendor stock numbers are large enough to be easily read and/or color code the cases if applicable. If shipping multiple SKUs on the same pallet, use a slipsheet or similar barrier placed between the items.

Vendor Stock Number Differentiation – Change the Vendor Stock Numbers printed on each case to make the multiple item numbers identifiable. – Change Color and Size for each variation.

IN02000K34 IN01000K34

IN02003K34 IN01003 K34

26 Walmart Stores, Inc. Confidential 2013 Item Layer Configuration All freight must be loaded by PO first then by item. When loading multiple items on a pallet, items must be loaded complete by layer before starting the next item on the PO. Slipsheets can be used to separate multiple items on the pallet. All pallets must be secured with shrink-wrapped.

Multi Item Pallet Configuration (Side View of Pallet)

Correct Item layers are kept SKU SKU SKU together on the pallet 2 2 2 and have a slip – sheet between items

SKU SKU SKU 1 1 1 Slipsheet

SKU SKU SKU 1 1 1

Pallet

Incorrect SKU SKU SKU Item layers are not kept 1 1 1 together on the pallet

SKU SKU SKU 2 2 2

SKU SKU SKU 1 1 1

Pallet

If you are shipping items in less than layer quantities, it is acceptable to stack the different items within the same layer. Plastic sheeting may be used to separate mixed items within the same layer. However; all like items must be kept together within the layer.

Note: This only applies if an item cannot make up a complete layer. A pallet should not have several layers of the same mixed items.

27 Walmart Stores, Inc. Confidential 2013 PO Layer Configuration Suppliers may load multiple POs for the same DC on the same pallet. POs can be separated by a slipsheet to aid in receiving accuracy. When loading multiple POs on a pallet, the first PO must be loaded complete before starting the next PO.

Staple Stock and Distribution POs must be separated on the trailer with truckload shipments.

Stable Stock and DA POs cannot be mixed within the trailer or on the same pallet.

Staple Stock should be loaded in the nose of the trailer with Distribution loaded on the tail of the trailer. Staple Stock freight is product that is held in the DC’s inventory. Distribution freight is product that already has store distribution allotted to the freight. Distribution freight flows through the DC and is not held in inventory at the DC.

Note: Please review page 18 for direction specific to LTL shipments.

Multi PO Pallet Configuration (Side View of Pallet)

PO PO PO Correct B B B PO’s loaded complete and separated by a slipsheet Slipsheet

PO PO PO A A A

Pallet

Incorrect PO PO PO PO’s are not loaded A A A in sequence order

PO PO PO B B B

PO PO PO A A A

Pallet

28 Walmart Stores, Inc. Confidential 2013 Unitized Stacking To stack merchandise using pallets and slip-sheets, the following diagrams illustrate proper heights and widths when shipping inbound on a dry trailer with swing doors.

Exception: 96” is the maximum height when shipping on a Walmart trailer with rollup doors.

3’-4” 3’-4”

4’- 4’- 0” 0”

8’- 5” 8’- 0”

4’- 4’- 0” Slip Sheet 0”

3’-4”

4’- 0” Pallet

8’- 10”

4’- 0”

Double Stacking Pallets may be double-stacked in the trailer, providing the weight and/or height permits, without risk to the packaging or product integrity.

ISTA 3E testing is highly recommended on all unitized pallet or slipsheet product

29 Walmart Stores, Inc. Confidential 2013 Produce pallets and Reusable Plastic Containers (RPCs) RPCs are used to ship produce to Walmart Supercenters. Suppliers should only use RPC suppliers approved by Walmart. Suppliers are required to properly block and brace all shipments to withstand the rigors of transportation from their ship point location to the DCs. The RPCs must be secured to the pallet to prevent shifting.

Inbound Pallet loads for Produce and RPCs Stack 5 RPCs per layer on a 48x40 pallet that meets Walmart’s pallet standards (page 21) Ensure that all RPCs interlock for a more secure pallet Cross-stack when applicable for greater pallet security Cases must be able to withstand clamping equipment Secure pallet using stretch wrap or corner boards with plastic bands Stretch wrap must conform to Walmart’s stretch wrap requirements (page 25) Use of metal bands and clip seals are prohibited Use of netting and twine for pallet containment is prohibited Product that requires unrestricted airflow must be secured to the pallet with ventilated stretch wrap or corner boards with banding straps. Use corner boards, stretch-wrap and/or strapping to increase pallet stability o Start corner boards at the base of the pallet and secure to the pallet o Straps should be placed at a minimum at the base, middle, and top of the pallet o Shipments may be refused or rejected if not properly secured on the pallet Less than layer case quantities must be secured to the pallet Pallets should be pinwheeled to reduce trailer airspace and prevent shifting Single pallet positions should be loaded to one side of the trailers and secured with airbags, dunnage, and/or load locks.

Examples of Good and Bad Pallets

-Corner boards used -Nothing securing the RPC to the pallet -Strapped and stretch wrap used -No stretch wrap, corner boards, or straps

30 Walmart Stores, Inc. Confidential 2013

-Unsecured loose case -Good use of corner boards and strapping

-No netting. Safety Issue!!! -Substandard pallet. Safety Issue!!!

RPC Trailer Loading Instructions

Pallets should be loaded wide-by-wide with the 48” side facing outward. This will minimize the air space between pallets and prevent shifting in transit. When loading a single pallet, position the pallet on the 48” side with the pallet flush with one side of the trailer. Position and inflate airbags or load locks between the pallet and trailer side wall. Single pallets should never be loaded on the tail end of the trailer.

31 Walmart Stores, Inc. Confidential 2013 PO Trailer Separation If there are multiple pallets for the same purchase order, all pallets of the same purchase order must be kept together throughout the trailer. Note: Overweight axle concerns may prevent some pallets from being separated by PO. PO Pallet Trailer Configuration (Top View of Trailer)

Correct Incorrect Pallets of same PO / Pallets of same PO / item item are kept together in are mixed throughout the the trailer trailer

PO PO PO PO A A A B

PO PO PO PO A B B C

PO PO PO PO B B D A

PO PO PO PO C C B D

PO PO PO PO D D C A

Item Trailer Separation If there are multiple pallets for the same item, all pallets of the same item and PO must be kept together throughout the trailer. Note: Overweight axle concerns may prevent some pallets from being separated by Item. Item Pallet Trailer Configuration (Top View of Trailer)

Correct Incorrect Pallets of same PO / Pallets of same PO / item item are kept together in are mixed throughout the the trailer trailer

SKU SKU SKU SKU 1 1 1 1

SKU SKU SKU SKU 1 2 1 2

SKU SKU SKU SKU 2 2 3 2

SKU SKU SKU SKU 3 3 4 1

SKU SKU SKU SKU 4 4 3 2

32 Walmart Stores, Inc. Confidential 2013

Trailer Measurements

53’ Swing Door Dry Van (L 636 x W 102 x H 110) Max loadable internal space: (L 630 x W 96 x H 104) [Floor Stacked 3,640 Cube] Straight single stacked: 26 Pallets Double stacked: 52 Pallets Pin-wheeled & Single stacked: 28 Pallets Double stacked: 56 Pallets 48” Wide load single stacked: 30 Pallets Double stacked: 60 Pallets

53’ Rollup Door Dry Van (L 636 x W 102 x H 108) Max loadable internal space: (L 626 x W 96 x H 98) [Floor Stacked 3,408 Cube] Straight single stacked: 26 Pallets Double stacked: 46 Pallets Pin-wheeled & Single stacked: 28 Pallets Double stacked: 50 Pallets 48” Wide load single stacked: 30 Pallets Double stacked: 54 Pallets

48’ Rollup Door (L 576 x W 99 x H 108) Max loadable internal space: (L 566 x W 93 x H 98) [Floor Stacked 2,985 Cube] Straight single stacked: 22 Pallets Double stacked: 38 Pallets Pin-wheeled & Single stacked: 24 Pallets Double stacked: 42 Pallets 48” Wide load single stacked: 26 Pallets Double stacked: 46 Pallets

53’Swing Door Reefer (L 636 x W 102 x H 110) [Up to 3 reefer units] Max loadable internal space: (L 628 x W 96 x H 104) [Floor Stacked 3,608 Cube] Straight single stacked: 26 Pallets Double stacked: 49 Pallets Pin-wheeled & Single stacked: 28 Pallets Double stacked: 53 Pallets

53’ Rollup Door Reefer (L 636 x W 102 x H 108) [Up to 3 reefer units] Max loadable internal space: (L 624 x W 96 x H 98) [Floor Stacked 3,377 Cube] Straight single stacked: 26 Pallets Double stacked: 43 Pallets Pin-wheeled & Single stacked: 28 Pallets Double stacked: 47 Pallets

33 Walmart Stores, Inc. Confidential 2013 Trailer Loading Patterns Using one of the suggested loading patterns and a reduction in air space will result in reduced freight damage.

53’ Trailers Impact of Pin-wheeling 26 28 28 30 40” 40” 40” 48” 40” 48” 48” 48” 1 14 1 14 1 15 1 16 2 15 2 15 2 16 2 17 17 3 18 3 16 3 16 3 18 4 19 4 17 4 17 4 18 19 5 20 5 18 5 5 19 20 6 21 6 19 6 6 20 21 7 22 7 20 7 7 21 22 8 23 8 21 8 8 22 23 9 24 9 9 22 9 23 10 25 10 24 10 23 24 10 25 11 26 25 11 11 24 11 12 27 26 26 12 13 28 12 25 12 27 13 27 14 29 13 26 13 28 14 28 15 30

26 Pallet Pattern Perpendicular Pattern Pinwheel Pattern 30 Pallet Pattern

34 Walmart Stores, Inc. Confidential 2013 BILL OF LADINGS / PACKING SLIPS

Packing Slip A packing slip must be attached to the outside of the last box loaded on the trailer. The packing slip must be facing outward on the pallet or box in clear view of the unloader. A second packing slip should be made available to the carrier with the bill of lading and the freight bill, to be presented at the transportation office at our warehouse. If shipping LTL, a packing slip must be attached to the outside of one carton for each purchase order.

The packing slip must contain the following information: - Purchase order number. - P.O. type number. - Location number. - Department number - Shipper’s name and address. - Vendor Stock number and/or Walmart item number. - Case count per item. - Total case count shipped.

GUIDELINES FOR GLN ADDRESS INFORMATION The following Ship To addresses will be used for all US and Canada purchase order shipments to our Walmart Distribution Centers. Below is a cross-reference table that identifies our purchase order type that will be associated with the actual delivery address that must be used on all Bills of Lading and Shipping Labels.

DC GLN ADDRESS / PO TYPE CROSS-REFERENCE GLN SEQ Regional DC’s PO Types Included Under This Address 1 WALMART DC 60XXR-REGULAR 0020, 0022, 0040, 0042 2 WALMART DC 60XXG-GENERAL 0003, 0043 3 WALMART DC 60XXT-TAB 0006, 0016, 0045, 0053 4 WALMART DC 60XXD-DSDC 0073 5 WALMART DC 60XXJ-JIT 0050, 0083 6 WALMART DC 60XXP-PAD 0093 7 WALMART DC 60XXW-WPM 0010, 0011, 0014, 0015, 0018, 0019 8 WALMART DC 60XXI-IMP ASM 0023 9 WALMART DC 60XXA-ASM DIS 0033

EXAMPLE: GLN DC ADDRESS CROSS-REFERENCE

GLN SEQ DC GLN Address Line 1 Address Line 2 City State Zip Nbr 1 6094 0078742035222 WALMART DC 6094R-REGULAR 5821 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 2 6094 0078742035239 WALMART DC 6094G-GENERAL 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 3 6094 0078742035246 WALMART DC 6094T-TAB 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 4 6094 0078742035253 WALMART DC 6094D-DSDC 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 5 6094 0078742035260 WALMART DC 6094J-JIT 5821 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 6 6094 0078742035277 WALMART DC 6094P-PAD 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 7 6094 0078742035284 WALMART DC 6094W-WPM 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 8 6094 0078742035291 WALMART DC 6094I-IMP ASM 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 9 6094 0078742035307 WALMART DC 6094A-ASM DIS 5841 SW REGIONAL AIRPORT BLVD BENTONVILLE AR 72712 35 Walmart Stores, Inc. Confidential 2013

The address information is available via EDI (816) or Retail Link. For EDI updates contact the HELP DESK at 479-273-8888. On Retail Link-Lookup: Retail Link > Site Map > Alphabetical view >Store/Club/DC & GLN Lists

Bill of Lading Requirements A separate Bill of Lading must be filled out for each delivery address (GLN Address Line 2) for full truckload shipments. All purchase order numbers must be listed on the Bill of Lading with the appropriate Location Number (DC number), Purchase Order Type and Department Number, with total cases by purchase order. Use supplemental pages for additional purchase orders if needed. In order to eliminate any delays in timely processing, proper delivery and segregation of these shipments, the above GLN address information MUST be used on the Bill of Lading – Ship to Address. NOTE: For LTL shipments, multiple PO types shipped from the same origin shippoint to the same Distribution Center on the same day can be listed on the same BOL. The “Ship To” address used should be Wal-Mart DC 60XXG-GENERAL

Staple Stock and distribution freight must be separated on the trailer, they cannot be mixed. Pallets, slips and boxes must be loaded by item and PO, not mixed within the trailer.

The bill of lading must show the proper classification description as stated in the National Motor Freight Classification tariff. Each bill of lading must list all purchase orders being shipped and the number of cartons for each purchase order.

When a carrier’s driver signs a bill of lading, they are signing for a specific number of shipping units (cases or pieces for floor loads, or shrink-wrapped pallets) not “eaches”. With this in mind, you must record the quantity of shipping units and all purchase order numbers on the bill of lading. If the shipment is palletized, the drivers are to sign for the number of pallets, not the number of cases or pieces. Purchase orders for the same Walmart DC address should be shipped on one bill of lading. At many Walmart facilities, distribution and staple stock purchase orders have different addresses. Full truckload shipments delivered to one of these split address locations must be shipped on separate bills of lading if the GLN line 2 address if not the same. If there are multiple purchase orders on a truckload shipment each purchase order must be loaded separately. A master bill of lading must be used when shipping to a Walmart centerpoint or consolidator.

Prepaid to consolidator suppliers must mark the bill of lading “Prepaid to Consolidator” when assigned a consolidator for routing.

The bill of lading must have the carrier name and pro number. If a trailer number is available, please include it on the bill of lading. If Walmart is to pay freight charges, the bill of lading must be marked “collect”.

If a Walmart Load Number is available, it must be designated on the BOL in the SID field.

The Must Arrive By Date should be specified on the bill of lading (Must Deliver By Date field) so that the carrier clearly understands the delivery date expectation.

For BOLs that have multiple POs and different MABDs, the earliest MABD should be specified.

36 Walmart Stores, Inc. Confidential 2013 VICS Bill of Lading Example Walmart’s long-term strategy is to support implementation of the VICS Standard Bill of Lading. For more information please go to www.vics.org.

Required Bill of Lading information

1. Shipment ID # (SID #- Walmart Load # required if available) 2. Ship From Address 3. Ship To Address 4. Consignee ID Number (CID) 5. Bill of Lading Number 6. Carrier Information: Trailer #, Seal #, SCAC & Pro # 7. Select payment terms for Freight Charges 8. Check box when using Master Bill of Lading 9. 10-digit Purchase Order Number 10. # of Packages 11. Weight of packages 12. Indicate if product is unitized (pallets or slips). 13. 5-digit Destination Number (WM facility #) 14. 4-digit PO Type 15. 5-digit Dept. # 16. Provide any additional details or comments. 17. Unit and commodity information. 18. General description of the product. 19. National Motor Freight Classification item # 20. NMFC Freight Class 21. Shipper’s Signature protecting consignee default. 22. Carrier’s Signature indicating receipt of product listed on BOL on Specified date. 23. Select party that counted freight. 24. Select party that loaded freight. 25. Shipper’s Signature indicating BOL accuracy. 26. Must Deliver By Date (MABD = Expected DC Delivery/Arrival Date)

37 Walmart Stores, Inc. Confidential 2013 Date: MASTER BILL OF LADING Page 1 of ______SHIP FROM Name: ABC Company Bill of Lading Number: 0123456789 Address: Any Street Load #: 45625652 City/State/Zip: Any City, ST, 12345 BAR CODE SPACE SID#: 0123456 FOB:  SHIP TO CARRIER NAME: ______Scully______Name: Center Point Address Location #: ___69XX_____ Trailer number: 123456 Address: Any Street Seal number(s): 123456789 City/State/Zip: Any City, ST, 12345 SCAC: SCLY CID#: 012346 FOB:  Pro number: 12345678 THIRD PARTY FREIGHT CHARGES BILL TO: Name: BAR CODE SPACE Address: City/State/Zip: Freight Charge Terms: (freight charges are prepaid unless marked otherwise) SPECIAL INSTRUCTIONS: Prepaid ______Collect __X_____ 3rd Party ______

 Master Bill of Lading: with attached underlying (check box) Bills of Lading CUSTOMER ORDER INFORMATION CUSTOMER ORDER # WEIGHT PALLET/ Must 5-Digit 4-Digit PO 5-Digit Additional Shipper Info NUMBER cases SLIP Deliver Destination Type Dept. (CIRCLE ONE) By Date Number Number Number

6501841926 10 785 (Y) N 07039 0033 0009 1 pallet 0751862267 20 698 (Y) N 06006 0033 0009 2 pallet 0251729748 40 640 (Y) N 06017 0033 0009 4 pallet 7251728330 30 948 (Y) N 06024 0033 0009 3 pallet 6351832935 30 876 (Y) N 06039 0033 0009 3 pallet 9106633566 20 38 (Y) N 06038 0003 0009 2 pallet Y N Y N GRAND TOTAL 150 10348 CARRIER INFORMATION HANDLING UNIT PACKAGE COMMODITY DESCRIPTION LTL ONLY Commodities requiring special or additional care or attention in handling or stowing must be so QTY TYPE QTY TYPE WEIGHT H.M. marked and packaged as to ensure safe transportation with ordinary care. NMFC # CLASS (X) See Section 2(e) of NMFC Item 360 15 plt 150 cases 10348

RECEIVING STAMP SPACE

15 150 10348 GRAND TOTAL Where the rate is dependent on value, shippers are required to state specifically in writing the agreed or COD Amount: $ ______declared value of the property as follows: “The agreed or declared value of the property is specifically stated by the shipper to be not exceeding Fee Terms: Collect:  Prepaid: 

______per ______.” Customer check acceptable:  NOTE Liability Limitation for loss or damage in this shipment may be applicable. See 49 U.S.C. . 14706(c)(1)(A) and (B). RECEIVED, subject to individually determined rates or contracts that have been agreed upon in writing The carrier shall not make delivery of this shipment without payment of freight between the carrier and shipper, if applicable, otherwise to the rates, classifications and rules that have been and all other lawful charges. established by the carrier and are available to the shipper, on request, and to all applicable state and federal regulations. ______Shipper Signature SHIPPER SIGNATURE / DATE Trailer Loaded: Freight Counted: CARRIER SIGNATURE / PICKUP DATE This is to certify that the above named materials are properly classified, Carrier acknowledges receipt of packages and required placards. Carrier certifies packaged, marked and labeled, and are in proper condition for  By Shipper  By Shipper emergency response information was made available and/or carrier has the DOT transportation according to the applicable regulations of the DOT. emergency response guidebook or equivalent documentation in the vehicle.  By Driver  By Driver/pallets said to contain Property described above is received in good order, except as noted.  By Driver/Pieces 38 Walmart Stores, Inc. Confidential 2013 Date: BILL OF LADING Page 1 of ______SHIP FROM Name: ABC Company Bill of Lading Number: 0123456789 Address: Any Street Load #: 45625652 City/State/Zip: Any City, ST, 12345 BAR CODE SPACE SID#: 0123456 FOB:  SHIP TO CARRIER NAME: ______Scully______Name: DC Address Location #: __7039_____ Trailer number: 123456 Address: Any Street Seal number(s): 123456789 City/State/Zip: Any City, ST, 12345 SCAC: SCLY CID#: 012346 FOB:  Pro number: 12345678 THIRD PARTY FREIGHT CHARGES BILL TO: Name: BAR CODE SPACE Address: City/State/Zip: Freight Charge Terms: (freight charges are prepaid unless marked otherwise) SPECIAL INSTRUCTIONS: Prepaid ______Collect 3rd Party ______X_____ Master Bill of Lading: with attached (check box) underlying Bills of Lading CUSTOMER ORDER INFORMATION CUSTOMER ORDER # WEIGH PALLET/ Must 5-Digit 4-Digit PO 5-Digit Additional Shipper NUMBER cases T SLIP Deliver Destinatio Type Dept. Info (CIRCLE ONE) By Date n Number Number Number

6501841926 10 785 (Y) N 07039 0033 0009 1 pallet Y N Y N Y N Y N GRAND TOTAL 10 785 CARRIER INFORMATION HANDLING UNIT PACKAGE COMMODITY DESCRIPTION LTL ONLY Commodities requiring special or additional care or attention in handling or stowing must be QTY TYPE QTY TYPE WEIGHT H.M. so marked and packaged as to ensure safe transportation with ordinary care. NMFC # CLASS (X) See Section 2(e) of NMFC Item 360 1 plt 10 cases 785

RECEIVING STAMP SPACE

1 10 785 GRAND TOTAL Where the rate is dependent on value, shippers are required to state specifically in writing the agreed or declared value of the property as follows: COD Amount: $ ______“The agreed or declared value of the property is specifically stated by the shipper to be not exceeding Fee Terms: Collect:  Prepaid: 

39 Walmart Stores, Inc. Confidential 2013 Logistics Glossary

Aged Inventory: An item that has been in DC inventory for 90 days or greater.

ASN: Advanced Ship Notice

Assembly: A method by which stores replenish basic merchandise. Normal orders are in cycles, most weekly. The stores and quantities are consolidated by warehouse and a Type 33 purchase order is generated automatically by the system, and sent to the supplier.

Backhaul: Process where merchandise is transported from a vendor to a DC via Walmart truck.

Bill Of Lading: Document received and sent with merchandise to prove shipping and/or receiving.

Breakpack: A carton received in the warehouse with two or more inner selling units that can be broken down and shipped to the stores.

Case Pack: Merchandise shipped in full cases. Cartons cannot be broken into smaller cases.

Claim: Action taken against a carrier, supplier, or individual for lost and/or damaged freight.

Consolidation Facility (Center Point): A central location that receives a trailer load of mixed freight. The freight is sorted by Distribution Center and reloaded on a trailer bound for that Distribution Center.

Consolidator: A point where Walmart freight is accumulated consolidated and forwarded to the Distribution Center.

Corporate Traffic: An area responsible for contracting carriers, carrier claims, and freight payment, lease car department, and tab tracing.

Cross Docking: Process of LTL (less than truck load) suppliers consolidating their loads with other suppliers. This merchandise is then delivered to the warehouse, where they split it based on store number to be shipped to. This is also referred to as distribution receiving.

Cube: The amount of space an item of merchandise takes up.

Direct to Store (DTS): Merchandise that travels directly from the vendor to a retail store.

Direct Store Delivery Consolidation (DSDC): A program developed to provide an efficient channel to replenish our stores in less than case pack quantities.

Drop: A location where a trailer stops to load/unload merchandise.

Drop & Hook: An empty trailer is dropped at a supplier or warehouse and a loaded trailer is picked up.

40 Walmart Stores, Inc. Confidential 2013 E

EDI: Electronic Data Interchange - The process of sending orders and invoices electronically from computer to computer versus mailing paper copies.

EOQ: Economic Order Quantity - The order size that balances handling costs with inventory.

FOB (Domestic): Free on Board or Freight on Board - the point at which the ownership of merchandise passes to the purchaser. Used to indicate that the seller provides transportation from the factory to trucks, railcars or consolidators after which the buyer pays all the carrier charges.

GLN: Global Location Numbers - Also referred to as EAN location codes, ANA numbers, ILN numbers.

IDC: Import Distribution Center - A facility designated to hold import merchandise until closer to a particular selling season. The facilities are located across the nation.

Imports: Merchandise brought in from another country.

Item Number: A nine-digit number assigned to an item of merchandise. This is the Walmart identification number for the items carried in the store and through out our replenishment system.

LT: Lead-Time - The number of days between order creation and when the product is available to ship to the stores.

LTL: Less than Truckload - mixed freight, not all the same supplier or purchase order.

MABD: Must Arrive by Date - The date in which a PO must be received at the warehouse.

Manifest: List of all materials included in a shipment, provided by seller.

Master Carton: Several cases being shipped in one package. These can be broken down into the individual cases and sent to stores.

Master Pack: Carton received that contains more than one vendor pack or shipping unit inside it.

Minimum/Maximum: The minimum constraint that must be met for a vendor to ship product. The maximum constraint that will legally fit on a tuck for the vendor to ship the truck.

Out Of Stock (DC): When available inventory at DC level can not support the pulls from the stores, then DC will show an “out” to show the lack of inventory.

Outside Storage: A facility, other than the main picking warehouse, used to hold merchandise. 41 Walmart Stores, Inc. Confidential 2013

Overage: An amount of inventory stock that exceeds the inventory expected.

Overflow: Process where a trailer to be shipped is filled before all of the merchandise has been loaded. The remaining merchandise is loaded on another trailer.

Pallet: Movable platform used to stack cases or boxes. Also called a ‘skid’.

Pallet Pull: A “pallet pull” is an item that is shipped to stores where the entire pallet is considered one case.

Pick Slot or Prime Slot: the location in the DC where product is selected for store orders.

PO: Purchase Order

PO Type: A two-digit code that describes the types of purchase orders that may be written. These codes are the third and fourth digit of the purchase order number.

Distribution 03 - General Distribution 04 - WPM Import Sample 05 - Domestic Sample Distribution 06 - WPM Import Tabloid 09 - WPM Domestic Sample 10 - WPM General Distribution 11 - WPM Domestic Break Pack 14 - WPM Import Order 15 - WPM Import Break Pack 16 - WPM Tabloid Order 33 - General Assembly Distribution 53 - Tabloid Distribution 73 - Quick Response Distribution 83 - 2-Tier 83 - Variable Pack (2-tier) 93 - Priority Assembly Distribution Staple Stock 20, 22 - Regular Staple 40 - Import Staple 50 – Just-in-Time Seasonal Staple Direct to Store Order Types 07 - General 17 - WPM Order 37 - Assembly Order 57 - Tabloid/Circular Order 67 - New Store Order 77 - Quick Response Order

Return Center: Processes defective merchandise returned from the stores. This is a central collection point used to consolidate defective merchandise for return to the suppliers, the return center issues credits to the stores.

Return To Vendor: Merchandise that is being returned to the vendor from the DC per instructions from the buyer or group managers. Usually returned due to overages, wrong items or wrong warehouse pack, etc. These problems are identified at the time of receiving.

42 Walmart Stores, Inc. Confidential 2013 Rotate Date: For a frozen item the rotate date is the date the product is received at the warehouse. For a perishable item, this is the sell by date of the item.

Ship Date: The first possible date a truck can be called in for routing. This is the do not ship before date.

Shortage: When less then the amount of freight noted on the freight bill arrives at the distribution center.

Slot: A DC location in a rack where pallets of merchandise are stored. Each slot has a number associated with it.

Staple Stock: Merchandise stocked in the warehouse on a regular basis (type 20 and 50 items).

TI/HI: Also called Pallet Pattern. TI refers to the number of cases that make up a tier or layer on a pallet. HI refers to the number of tiers or layers on the pallet. A pallet holding five cases of an item on a layer, stacked four high has a TI/HI of 20.

Traffic: Department of Walmart responsible for routing merchandise to the DC’s. Also an area within the DC that processes inbound trailers.

Trailer Manifest: Document produced by the distribution center traffic department that tells what is on every trailer that enters the distribution center trailer lot.

Two-Tier: Automated replenishment system located in sub-system PL of Inforem that allows for buffer stock in the DC.

Vendor Pack: Original packaged quantity or merchandise as shipped from the vendor.

VICS: Voluntary Inter-Industry Commerce Standard; an EDI and BOL standard primarily used by the Retail Industry. Walmart supports these standards.

WPM: Walmart Pre-marked Merchandise - Apparel merchandise that is ticketed prior to reaching the stores.

43 Walmart Stores, Inc. Confidential 2013 Frequently Asked Questions

1) Do cartons shipping into a Grocery DC need to be conveyable? a. No. Only Regional and Fashion DCs have conveyor systems.

2) Can I ship on Slipsheets instead of Pallets? a. If you weight out before you cube out, you must ship on pallets. Suppliers must contact the Sr. Merchandise Support Manager for Packaging for approval before shipping on slipsheets.

3) Does Walmart require a specific brand of pallet such as Chep or Peco? a. Walmart does not endorse any specific brand of pallet. Pallets must meet or exceed the minimum pallet standards on page 21.

4) My item does not fit on a standard 48x40 pallet. Can I ship on an oversized pallet? a. The shipping carton should be designed to fit within a standard 48x40 pallet footprint. If the dimensions of the item exceed the footprint of a standard pallet, contact the Sr. Merchandise Support Manager for Packaging for approval at 479-273-6332.

5) Is a VICS Bill of Lading required? a. A VICS Standard Bill of Lading is preferred when shipping into a Walmart DC.

6) Can I masterpack or consolidate vendor packs in one shipping carton to save on freight costs? a. No. Walmart DCs receive by the vendor pack. You should only ship in the vendor pack size set up by the buyer. Walmart cannot guarantee proper receipt when items are masterpacked.

7) Can I band multiple vendor packs together when shipping UPS or FedEx? a. No. Multiple vendor packs cannot be banded together. This is considered masterpacking and may cause receiving errors.

8) Can I ship multiple items on the same pallet? a. Yes. Items from the same PO can be loaded on the same pallet. You should also load by PO by item. Freight should be layered by item and not spread throughout the pallet.

9) Is an SCC-14 bar code still required when sending ASNs? a. Yes. The SCC-14 bar code identifies the shipping carton. The SCC-14 bar code is required on each vendor pack that has more than one selling unit in the carton.

10) Do I have to have a shipping label on each carton? a. Depends on if you shipping floor loaded into a centerpoint or building unitized pallets. See page 18 for when a pallet label can be used in place of a shipping label.

11) Can I put all the required markings and shipping information on one label? a. Yes. Your product identification information can be included on the shipping label? See shipping label example “B” on page 17. Label must be on each carton when using only one label.

12) My vendor pack does not meet the minimum conveyable case requirements, should I increase the dimensions of my carton to meet the conveyable case requirements? a. No. You should not add unnecessary packaging to your carton. If your item does not meet the minimum conveyable requirements on page 8, work with your buyer to increase the case-pack size or set the item up as a break-pack.

44 Walmart Stores, Inc. Confidential 2013 Appendix A-1: FedEx Labeling and PO Compliance

Walmart Supplier Instructions for PO Compliance and Address Standardization for small packaging FedEx shipments

In an effort to improve shipment visibility, Walmart has started an initiative for suppliers to transmit accurate PO and store address information to FedEx. To reach compliance with this initiative, Walmart is asking that all suppliers upload their PO values electronically to FedEx using the standard PO field. In addition, Walmart is asking all suppliers to use a standard address format for each store using the store file provided in the Walmart Retail Link website. To reach full compliance you are required to upload your shipment data to FedEx at the end of each shipping day.

These instructions will provide you with the requirements to properly ship a Walmart package with FedEx. FedEx provides several different automation platforms that will facilitate sending the Walmart PO on each shipment. Each platform’s shipping screen is illustrated below, with the required PO field highlighted.

If you are not using FedEx automation and are using a third party system (e.g., Pitney Bowes, Kewill) or transmitting EDI without FedEx hardware, please contact your third party provider, or refer to “Non FedEx Automated EDI/EPDI” instructions below on how to transmit electronically to FedEx.

Common Address Format Walmart is asking all suppliers to use a common address format for shipments to reduce shipment errors that can result in additional charges and charge backs.

When shipping to Walmart, please put the store name in the Company Name or Company Name equivalent field. When using a store name make sure you use the correct store names as listed below, followed by their store number. Walmart #XXX Supercenter #XXXX Sams Club # XXX Sams Club DC # XXX Walmart DC # XXX Walmart Neighborhood Market # XXX

Next put the store address in the address line 1 or address line 1 equivalent field.

An Example of a correct format would be Company Name – Walmart #XXX Address 1 – 2110 West Walnut City – Rogers, State – Arkansas, Zip – 72756

If you need an updated standard store file please visit the Walmart Retail link website. If you use FedEx automation FedEx can provide you with instructions and the formatted file to import the Walmart stores in your system.

45 Walmart Stores, Inc. Confidential 2013 PO Field All FedEx small package shipments must display the 10 digit Walmart PO # and the PO data must be uploaded to FedEx electronically. The only exception to this is for fixture shipment PO’s which will be 6 digits in length. Listed below are the types of automation and screen visualizations of where the PO must be placed to reach compliance.

If you would like to ensure that your PO information is uploading correctly to FedEx you may go to www.fedex.com. From there track a shipment that you have shipped to a Walmart location. On the results screen you should see a field called “Purchase Order Number”, and your valid PO information should be displayed on that screen. If this information is not displayed then your PO information is not uploading correctly. Below is an example of a package that has uploaded correctly.

Non FedEx Automated EPDI/EDI

The PO number must be 10 digits (store fixture Po’s are 6 digits). PO must be in the Detail Record. The PO number examples would be 1234567890 or 123456.

X12 215:

Use L1101 (PO Number) and L1102 (PO Qualifier) in the 240 Loop. (See page43)

Proprietary Flat file:

You may choose either D132-133 (PO Qualifier) with D134-163 (10 digit number) or D164-165 (PO Qualifier) with D166-195 (10 digit number). If you are currently not using either of these positions in the D record, then you will want to use D132-133 and D134-163. (See page 17) EPDI Support Team 1-800-546-5222 (EPDI Support Option) Or email [email protected]

46 Walmart Stores, Inc. Confidential 2013 EDI Support Team 1-800-546-5222 (EDI Support Option) or email [email protected]

FedEx Automation – All FedEx automation by default comes with a standard PO field. The field is mapped correctly to upload to FedEx when the day has been closed out. It is crucial for you to end your shipping day and ensure the transmission to FedEx was successful in order to transmit the PO to Walmart.

FedEx.Com – FedEx.com’s standard PO field is located on the second screen. You can reach the second screen by selecting the “Go to options” button as displayed below.

On the second screen the PO field is displayed on the right side of the screen as listed below. This is the location where the Walmart PO will be inputted.

FedEx Ship Manager (Café) Hardware/Software – FedEx Ship Manager is a hardware or software provided Solution, If you have been provided a computers system, or have installed software on your own system then the screen shots below will provide the location for the Walmart PO. To get to the PO field you will need to enter all shipment information. Next select the “Options” tab as listed below.

47 Walmart Stores, Inc. Confidential 2013

After selecting the options tab, you will now be able to enter the Walmart PO data in the field as shown below.

48 Walmart Stores, Inc. Confidential 2013 FedEx Ship Manger MC – This system has been retired, but many vendors may still have old systems that have yet to be migrated. Below is a screen shot of the MC system with the default PO layout. If your screen looks different from the below then you will need to contact the FedEx help desk to ensure you are correctly shipping.

49 Walmart Stores, Inc. Confidential 2013 General FAQs for Walmart Suppliers

If I already have a FedEx account number, do I need to set up a new account specifically for shipping for Walmart? No. You can use an account in good standing to ship FedEx to Walmart.

How do I ensure my packages make it to the stores damage-free? Make sure you have approved ISTA packaging (www.ista.org). FedEx provides package testing at no cost to you. Please work with your local FedEx account executive to have your packaging tested. Ensure your shipping labels are PO-compliant by using a FedEx automated system to process your packages. Do not place labels on seams or underneath plastic tape, or obscure the label in any way. Please click here for proper packaging instructions.

Where do I go to get information on PREPAID shipments with FedEx? Call Customer Account Services at 1.800.622.1147 to find out how to ship prepaid packages FedEx Ground or FedEx Express. Also, consult the website fedex.com for detailed information on the many FedEx Service Options.

Why is it important to "close out" my shipping system? Closing out your shipping system DAILY ensures that the specific package information, including pickup date and UCC Carton ID#, is transmitted to FedEx and Walmart in a timely manner. This will also help suppliers avoid Walmart chargeback’s.

Where do I go for the most up-to-date Walmart store list or new locations? For an up-to-date Walmart store list, please consult the Walmart vendor site at https://retaillink.Walmart.com/home. You may download the address to your automation device. For assistance, contact the Customer Automation Help Desk at 1.800.356.2323, select the correct automation device and ask for assistance in importing an address list. Please be sure to inform them you are a supplier for Walmart.

Who do I contact to ask questions about a FedEx automation device that I already have on the premises? Please review the Walmart vendor instructions for shipping collect, or for technical support, call 1.888.670.8981 during the following hours: Monday–Friday, 7:00 a.m.–10:00 p.m. CST and Saturday, 7:00 a.m.–7:00 p.m. CST. Please be sure to inform them you are a vendor for Walmart.

Who do I contact if I have problems with my FedEx automation device? Please call the FedEx hotline that corresponds with your automation device, or contact your local FedEx account executive. For questions regarding Ship Manager at fedex.com or Quickship Software, call 1.800.257.0109. For Ship Manager Software device, call 1.888.670.8981. Please be sure to inform them you are a supplier for Walmart

Who do I contact for Retail Link questions or set up? Retail Link Help Desk; 479-273-8888

50 Walmart Stores, Inc. Confidential 2013 Appendix A-2: UPS Labeling and PO Compliance

Walmart Supplier Instructions for PO Compliance and Address Standardization for UPS small package shipments

In an effort to improve shipment visibility, receiving accuracy and the application of freight payment, Walmart is requesting all suppliers shipping small package (UPS) to Walmart Stores, Sam’s Club/DC’s and Distribution Centers include the 10 digit Walmart purchase order (fixture po’s are 6 to 7 digit) number associated with the shipment in the reference 1 field. This information should be transmitted electronically to your small package carrier at the end of each business day. Each PO must be sent electronically and must appear on each package. If shipments are being sent consignee billing, suppliers must be approved consignee billing shippers and should use the approved address listing found on Walmart’s Retail Link website to avoid chargebacks.

Included in this manual are instructions to properly ship a package to Walmart using UPS WorldShip®. UPS WorldShip® is a full featured, Windows-based, shipping software application for customers with high volume shipping needs. If you are not using UPS WorldShip®, please contact your software provider for detailed instructions on how to import the PO number into the Reference 1 field.

If you have any questions about the instructions listed in this manual, please refer to the Help icon on the UPS WorldShip toolbar. If you have other specific questions regarding using UPS WorldShip for shipping to Walmart, please contact the UPS Walmart support team at 479-927-4042, or by email at [email protected]. Please visit www.ups.com for information about additional UPS services.

Shipment information, including purchase order (PO) numbers, may be keyed in manually, or imported from a database or delimited text file.

Whether the information is input manually into the shipping screen or imported from and external database, Walmart requires that the 10 digit PO number reside in “Reference Number 1:” field as indicated below.

Instructions: 1. Enter the 10 digit PO number provided by Walmart into the Reference 1 Field. The only variation would be fixture PO’s which are 6 or 7 digits. No additional characters such as PO #, PO, P.O. etc. should be included

Refer to the Help button on the WorldShip toolbar for additional information on reference numbers and instructions on how to import shipping information from a database or table.

51 Walmart Stores, Inc. Confidential 2013

52 Walmart Stores, Inc. Confidential 2013 Instructions for verifying Walmart PO number has been entered correctly

1. The PO number has been entered correctly if the 10 digit PO number appears in the reference 1 field on the bottom of the UPS shipping label. Ensure that no letters or symbols appear in this field. Please refer to the label example below.

Label Example

Wal-Mart Address must match exactly as it is listed on Retail Link.

Reference 1 field: No letters or The numeric 10 symbols should digit PO number appear in this should be displayed reference field. here.

53 Walmart Stores, Inc. Confidential 2013 Appendix B: Hazardous Package Marking and Labeling

Notice to all suppliers regarding DOT regulated hazardous materials package labeling.

Wal-Mart Stores, Inc including Sam’s Club are requiring suppliers who ship hazardous materials to any of our facilities to review their package marking and/or labeling to ensure compliance with DOT regulations.

Fully regulated hazardous materials require DOT labeling to indentify the hazard of the contents. The labeling specifications are found in 49CFR172.407. This regulation gives specific guidelines for these labels including durability, design, color, and size. If your company preprints the required labeling on the box instead of using labels, it must also meet the criteria defined in the regulations.

Hazardous materials that take the Consumer Commodity ORM-D exception are also being standardized. The requirements for this marking are found in 49CFR172.316. This regulation states the ORM-D marking must be within a rectangle and specifies the space between the rectangle and the required wording. In reviewing supplier package markings, we discovered that the size of the wording is not consistent and in some cases difficult to identify regulated packages. Since the regulations are not specific on font size of the wording, we are requiring the font size be as follows: Arial Black font size 60.

Box markings found in our facilities that we are offering for shipment that do not comply with the DOT regulations listed above will be required to be re-labeled prior to shipment to meet the regulations at the supplier’s expense.

We would like to have the Font size adjusted within the next 3 months. We will update our packaging guidelines to remind suppliers about the DOT hazardous material marking requirements and standardizing the wording font size.

Please call the Wal-Mart Compliance Hot Line at 800-530-9923 with questions.

54 Walmart Stores, Inc. Confidential 2013 Appendix C : Plastic Bag Safety Labeling Requirements

Product Safety and Regulatory Notice

Plastic Bag Packaging and Labeling Requirements

Clarification of Plastic Bag labeling and thickness requirements

ALERT

ATTENTION:  Merchants and Suppliers for Walmart, Walmart.com, Sam’s Club and Samsclub.com  Global Sourcing  Testing Laboratories

August 24, 2010

We have received a number of questions on the notice previously sent out August 9, 2010 (reproduced below) on this subject. In order to address all inquiries and correct a mistake, we are issuing this second Notice to go over Frequently Asked Questions on this matter.

Q: How is the five inch opening measured? A: Per Rhode Island’s law, the five inch opening is the diameter of the opening.

Q: Is the 40 inch (“greater than 40 inches, this warning or an equivalent warning must repeat at 20 inch intervals”) actually supposed to be surface area? A: No, this was a typo. Per Massachusetts law, “In the case of bags whose total length and width (when added) is more than 40 inches, the label shall be repeated at 20-inch intervals.”

Q: What is the timeline for making changes if the verbiage on my bag does not match verbatim? A: The verbiage need not match verbatim. The warning must be present as outlined or something approved as equivalent thereof. If your existing warning is not equivalent to the outlined requirement, do a rolling change to come into compliance as soon as possible.

Q: Does the warning need to be in Spanish? A: No, this warning need not be bilingual.

Q: Can this warning be in multiple languages? A: English is the only language required; however, if you choose to include additional languages, that is acceptable.

Q: On font size chart, is the bag size length x width or length + width? A: The bag size for the purpose of finding the correct font should be calculated by ADDING the length and width (length + width).

Q: My bag is .6 mm thick. Do I need the warning? A: No. The warning is required if the bag is less than one mil (0.001 inch or 1/1000 of an inch) which in metrics is equivalent to 0.0254 mm. If your bag is more than 0.0254 mm, the warning is not required. 55 Walmart Stores, Inc. Confidential 2013

Q: If the plastic bag’s thickness is more than one mil (0.001 inch), then NO need to print warning on bags? A: Correct, if the bag is thicker than one mil (1/1000 inch, 0.001 inch, 0.0254 mm), then no warning is required.

FAQ Continued…

Q: Does the warning need to be printed on both sides of the bag? A: The warning must be “visible” on both sides of the bag. Therefore, if the plastic is clear and the warning can be viewed from both sides, it need not be printed on both sides. If the bag is a solid color, the warning must be printed on both sides in contrasting color.

Q: How big does the bag have to be to have the warning? A: If the bag is less than one mil thick and has an opening of five inches in diameter and is of sufficient size to hold the warning in 10 point font, the warning must appear. There is no “minimum” size bag for this warning.

QUESTIONS OR COMMENTS: Suppliers may submit questions or comments by emailing them to [email protected].

56 Walmart Stores, Inc. Confidential 2013

NOTE: Changes below appear as Purple, Bold and Underlined:

August 9, 2010

BACKGROUND: There are four relevant state laws regarding the thickness and warning label requirements on plastic bags. These laws govern all products. Additionally, there is a thickness requirement for plastic bags outlined in ASTM F963 pertaining to those bags used to package toys. The ASTM F963 requirement differs than the state laws and has caused some confusion with regard to Walmart Product Safety and Regulatory Compliance Standards.

ACTION NEEDED: Merchants – Forward this Notice and its attachments to all suppliers.

Global Sourcing – Amend point H3A01 of the Defect Classification Appendix which QC inspectors utilize.

Suppliers – Take note of the requirements that follow and ensure your packaging complies.

GENERAL REQUIREMENTS:

ALL Products except toys: Plastic bags with a thickness less than one mil (0.001 inch) having an opening size of five inches or more must have the following warning (if the total length and width when added together is greater than 40 inches, this warning or an equivalent warning must repeat at 20 inch intervals):

Warning: To avoid danger of suffocation, keep this plastic bag away from babies and children. Do not use this bag in cribs, beds, carriages or playpens. This bag is not a toy.

The following table sets forth type sizes that will satisfy all four state requirements.

Total Length and Width of Bag Size of Print (added together) 60 inches or more at least 24 point 40 to 59 inches at least 18 point 25 to 39 inches at least 14 point Less than 25 inches at least 10 point

TOY Products: Plastic film bags and flexible plastic sheeting must be at least 1.5 mil (0.0015 in./0.0381 mm) in nominal thickness, but the actual thickness must never be less than 1.25 mil (0.00125 in./0.03175 mm). Therefore, flexible plastic used with toys cannot be thin enough to require the state warning label.

RESOURCES:

To assist in your determination of a toy, Walmart Product Safety and Regulatory Compliance Standards Team has developed a multitude of pictorial guidance and decision trees available on Retail Link:

Retail LinkSite MapProduct Safety and Compliance Library 57 Walmart Stores, Inc. Confidential 2013

For your quick reference, please see the following flow chart “Determination of a Toy”: Is the product primarily intended for use by a child 12 years of age or younger?

YES NO

Is the primary function of the product for purposes such as transportation, sporting activities or This directive recreational such as a trampoline? does not apply to this product as it is not a children’s product and thus cannot be a toy. NO YES

End Is the primary function of the product to help encourage pretend play, stimulate imagination, and/or amuse a child? The product is considered an other article intended for use by children and is YES NO subject to the Children’s Product Safety Standard on Other Articles Intended For Use The product is By Children considered a toy and is subject to this directive. End

End

AUTHORITY: Massachusetts – 105 CMR 630.000 New York – 10 NYCRR § 12.12 Rhode Island – R.I. Gen. Laws § 11-9-16 California – Cal Bus & Prof Code § 22200 ASTM F963

QUESTIONS OR COMMENTS: Suppliers may submit questions or comments by emailing them to [email protected].

58 Walmart Stores, Inc. Confidential 2013 Appendix D: Shoe Packaging and Labeling Requirements Purpose: To provide standardized packaging guidelines for shoe suppliers, enabling accurate shipping of product through the Fashion Distribution Centers.

Shoe Run Example Assortment shipping cartons for shoes must include the size run marking on at least one of the long sides of the shipping case. The printed size run consists of a horizontal row indicating the sizes inside the case (starting with the smallest size on the left, and ending with the largest size on the right). Below the first row is a second horizontal row indicating the number of pairs for each size listed above. EXCEPTION: If a shipping case contains multiple size runs, the supplier does not print the size run marking on the shipping case.

Inner Pack Packaging 1. Plain brown corrugate box (The preferred package) a. These boxes must fit with-in the minimum and maximum dimensions listed below. b. Each individual box should be properly sealed on both ends and have an air hole punched in two sides where one of the holes must be accessible when the master carton is opened. Openings are used to help remove the inner box from master carton. c. Master cartons should be packed for easy removal of product and not so tight to promote the tearing of cardboard, sealing tape, or otherwise damaging the barcode or exposing the pair inside the inner box. d. With box placed on the lowest center of gravity, barcode labels should be centered on the lower edge of side facing the direction of travel. The side facing the direction of travel is usually the side measuring the least width.

2. Poly bags are acceptable as long as they meet the following guidelines. a. Bags must fit tightly around the item with no excess plastic, and sealed securely to ensure product does not fall out of the polybag. b. Bags are best if they are opaque and not highly reflective. c. Shoes must be positioned in the bag in a manner that creates a flat surface on at least one side, allowing pairs to properly travel both powered and gravity conveyors. i. A piece of chipboard placed under the shoe may be necessary to create a flat surface. d. Barcode labels must be centered on top of bag, and work best when placed perpendicular to the direction of travel.

3. Examples of Vendor pack/warehouse pack. a. Packed 6/1 i. Vendor must pack each pair individually. There will be 6 polybag with 1 pair in each polybag. b. Packed 6/2 i. Vendor must pack 2 pair in each poly bag. There will be 3 polybags with 2 pair in each polybag.

4. Shoe Hangers 59 Walmart Stores, Inc. Confidential 2013 a. When shoe hangers are used, the shoes must be placed in a polybag or plain brown corrugate box. Follow the guidelines above for using polybags and plain brown corrugate boxes. b. Do not place hangers separately in the box. Associates at DC level are not responsible for placing the shoes on hangers. Include the hanger in the polybag. 1 hanger for each pair.

Unit Specifications 1. Length Width Height Weight Minimum 6” 4” 2” 6 ounces Maximum 18” 14” 7” 7 pounds Note: There is no tolerance on the maximum height.

Inner Pack Barcodes 1. Barcodes must be EAN13 printed on a 1”X 2” label a. 15 mil Bar Height .625” b. Pattern Length 1.48” c. Examples of Barcode placement

Example: Barcode centered on polybag with cardboard insert. Arrow denotes direction of travel

Example: Barcode centered on polybag perpendicular to direction of travel.

60 Walmart Stores, Inc. Confidential 2013 Example: Barcode bottom left edge on standard shoe box.

Example: Barcode on side of least width on plain brown corrugate shoe box.

61 Walmart Stores, Inc. Confidential 2013