tion Doing Business with Academy January 2019 All information contained in this publication is proprietary. No reproduction, distribution or use of the material is permitted without the express permission of Academy Sports + Outdoors. © 2019 Academy, Ltd. All rights reserved. Private and Confidential - Do Not Distribute 1 Table Of Contents Product Safety & Compliance………………………………………….……………………………………………..……….…….45 Supplier Onboarding Guide Federal Regulations……………………………………………………………………………………..…….50 State Regulations………………………………………………………………………………………….……..51 About Academy Sports + Outdoors 3 Product Recall/Corrective Actions…………………………….…………………………....52 Brand Management and Packaging……………………………………………………………………..…………………….4 Legal……………………………………………………………………………………..………………………………………………………………………….57 FCPA……………………………………………………………………………………………………………………………...59 Vendor Management………………………………………………………………………………………………….………………………..6 Ethics and Code of Conduct Policy & New Supplier Set-up……………………………………………..………......................................7 Vendor Code of Conduct…………………………..………………………………………..……….. 70 EDI…………………………………………………………………………………………………………………….……….…...8 Quality Assurance 75 Risk Management………………………………………………………………….……………………………………………….………………9 Product Testing…………………………………………………………………….……………………………….77 PLI…………………………………………………………………………………….…………………………………………….10 Business Rules…..........................................................................................................83 Inspections……………………………………………………………………………………………………………….92 Factory Compliance……………………………………………………………………………………………………………….……………..15 Factory Set-up………………………………………………………………………………………………………..16 Customs Compliance………………………………………………………......………………………………………………………….….105 Security Compliance (C_TPAT)………………………………….………………………………..19 Document Checklist…………………………………….………………….…………………………………107 Social Compliance….................................................................................................20 Factory Audit Process……………………………………………………………………………….………26 Import Logistics……………………………………………………………………………………………………………………………..……….113 Cargo Booking Rules………………………………………………………………….……….…………….121 Global Sourcing 30 Import Documents & Payment Instructions……………………………………123 ClearTrack…………………………..……………………………………………………………………….……………32 Air Freight………………………………………………...……………………………………………..……………..126 Work In Progress (WIP) 36 Case Dimensions 38 Chargeback…………………………………………………………………………………………...………………………………..…………………127 Ship On-Time Timeline 39 Supplier Scorecard 41 Appendix………………………………………………………………………………………………….……………..……………………..……………132 PLM………………………………………………………….……………………………………………………………………42 Key Contacts & Links……………………………………………………………….……………………….133 SMART Guide…………………………………………………………………………….………….……..……….134 Acronyms……………………………………………………….………………………………………………………..136 Private and Confidential - Do Not Distribute 2 About Academy Academy Sports + Outdoors is a premier sports, outdoor and lifestyle retailer. The Texas-based company operates over 250 stores throughout the South, Southeast and Midwest United States. Over the last several decades, the company has grown substantially from its small beginnings. Today, annual sales exceed $4.6 billion. Everyday Low Price: Consistent Every Day Low Price (EDLP) Customer Service: Delivering exceptional customer service Convenience: Easy-in, easy-out shopping experience Private and Confidential - Do Not Distribute 3 Brand Management & Packaging Private and Confidential - Do Not Distribute 4 Brand Management and Packaging The Academy Private Brand Packaging Quality Management (PQM) program is being implemented to: 1. Assist product suppliers, product manufacturers and corrugate carton suppliers in optimizing the performance from supplier to Academy Distribution Centers and, ultimately to the Academy stores and consumers. 2. Ensure brand consistency across all of our private branded products. It will increase the customer perception of quality in our brands, products and stores. This program is key to Academy Private Brands’ continued growth in sales and penetration. We appreciate the support of our supplier partners. Graphic Measures International (GMI) China has been contracted to implement and manage the Academy PQM program. Execution of the program includes establishing standards, certifying a print packaging supplier’s ability to control the print process and monitoring print packaging supplier performance through measuring printed packaging. Primary packaging is required to be printed by GMI certified printers for printing in China and be approved through the GMI color management process Use of GMI certified printer is not required for printing from all other countries. Packaging printing must still be approved through the GMI color management process Information on the GMI approval process can be found on Clear Track Document: Packaging Color Approval process for Private Label – English Document: Packaging Color Approval process for Private Label – Chinese ArtechPMS is Academy Prime Preferred Printer for China, Vietnam and Cambodia which is exempted from GMI. ArtechPMS: [email protected] GMI contact: [email protected] Questions for packaging: [email protected] This is for primary packaging and the supplier is to consult the SMART Guide for hanger and carton information. Private and Confidential - Do Not Distribute 5 Vendor Management Private and Confidential - Do Not Distribute 6 Supplier Setup Objective: Create vendor ID to allow for Item and Purchase Order Creation Requirements: Term Agreement Supplier Fact Sheet Non-disclosure Agreement W-9 for companies based in the United States. W-8 for companies not based in the United States. Documents to be completed according to our Academy Terms and Conditions of Purchase found on vendor.academy.com. Other Supplier Maintenance: Supplier Name Changes Supplier Address Changes Supplier contact changes Point of Contact: Vendor Management Team – [email protected] 7 | Private and confidential - Do not distribute Private and Confidential - Do Not Distribute 7 EDI Requirements Objective: Automatic electronic communication between Academy and its vendors Details: Required for all vendors Vendor may choose their own EDI provider Upon vendor setup, Academy EDI team will contact you for setup (Future state: SPS will contact you) Required Documents: 850 – Purchase Order 856 – (ASN) Advanced Shipping Notice used with the UCC 128/GS1 Label. 810 – Invoice 860 – Purchase Order Change ((Current use is for PO Cancelations only)) 855 – Purchase Order Acknowledgement ((Future document)) SPS Commerce: [email protected] EDI Support (Academy internal resource): [email protected] 8 | Private and confidential - Do not distribute Private and Confidential - Do Not Distribute 8 Risk Management Private and Confidential - Do Not Distribute 9 Business Rule: Product Liability Insurance (PLI) Academy has a multi-tiered insurance requirement based on varying product risks: • Category 1: $2M Per Occurrence, $4M Aggregate • Category 2: $5M Per Occurrence, $5M Aggregate • Category 3: $10M Per Occurrence, $10M Aggregate Examples include: Category 1 Category 2 Category 3 - $2M per Occurrence - $5M per Occurrence - $10M per Occurrence - $4M General Aggregate - $5M General Aggregate - $10M General Aggregate - $4M Products & Completed Operation Aggregate - $5M Products & Completed Operation Aggregate - $10M Products & Completed Operation Aggregate Examples include: Examples include: Examples include: - Apparel (excluding infant and children’s sleepwear) - BBQ Grill (non gas) - Bows & Crossbows - Footwear (excluding protective footwear) - Bikes - Firearms - Fishing Equipment - Fitness Equipment (electric, collapsible, folding) - Trampolines - Sports Equipment (bats, racquets, etc.) - Helmets - Tree stands (hunting station) - Tents - Footwear (protective, steel toed boots, etc.) - Ammunition - Toys (non-electric, non-infant) - Scooters - BBQ Grills (propane, gas) - Swing Sets / Bounce Houses - Heaters - Toys - electric or rechargeable - Towables (including infant toys, projectiles, launching, ride-in /on) - Apparel - infant, children's sleepwear Private and Confidential - Do Not Distribute 10 Business Rule: PLI Requirements Detailed PLI requirements are listed in Section 9.5 and Appendix 8 of the Academy Ltd. Terms and Conditions of Purchase, which are available for your reference at http://vendor.academy.com. Renewal certificates must be uploaded prior to PLI expiration date to avoid a disruption in shipping. For PLI questions, please contact the Risk Management team at [email protected]. If your renewal certificate of insurance will not be available in time to book your shipment, send an email to Risk Management and include the following information: . a status of your insurance renewal, along with any changes to your program that would affect Academy . Vendor name and products purchased by Academy. Private and Confidential - Do Not Distribute 11 Business Rule: PLI – Insurance Certificates 1. Supplier name 1. 2. General Liability Limits 3. Umbrella Liability Limits (if necessary) 2. 3. Private and Confidential - Do Not Distribute 12 Business Rule: PLI – Insurance Certificates 1. 1. Additional Insured 2. Waiver of Subrogation 3. Academy, Ltd as certificate holder 2. 3. Private and Confidential - Do Not Distribute 13 Business Rule: PLI Requirements Supplier requirements regardless of the Category include: Listed on the insurance certificate: Academy, Ltd., d/b/a Academy Sports