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COTY Delivery Routing Guide

Regulations for deliveries to Coty’s German Distribution Centers

In Düren and Weilbach

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1. Glossary & Definitions ..................................................................................................................... 3

2. Purpose and Scope .......................................................................................................................... 4

3. Delivery ............................................................................................................................................... 4

3.1. Delivery address ........................................................................................................................... 4

3.2. Opening hours ............................................................................................................................... 4

3.3. Documents requirements ........................................................................................................... 4

3.3.1. Packing List, Invoice, Delivery Note ................................................................................... 4

3.3.2. Declaration .................................................................................................................................. 4

3.4. Accounting ...................................................................................................................................... 4

3.4.1. Invoice .......................................................................................................................................... 4

3.4.2. Bill of Lading ............................................................................................................................... 5

3.4.3. Freight charges .......................................................................................................................... 5

3.5. Pre advise ........................................................................................................................................ 5

4. Shipper/Carton requirements ....................................................................................................... 5

4.1. Dimensions ..................................................................................................................................... 5

4.2. Marking ............................................................................................................................................ 6

4.2.1. Factory goods............................................................................................................................. 6

4.2.2. Marketing goods (POSM) ........................................................................................................ 6

4.3. Packing ............................................................................................................................................. 6

5. Pallet requirements .......................................................................................................................... 7

5.1. Dimensions and composition .................................................................................................... 7

5.2. Marking ............................................................................................................................................ 7

5.3. Packing / Loading ......................................................................................................................... 7

6. Document accompanying merchandise material ................................................................... 8

7. Disclaimer ........................................................................................................................................... 8

Appendix 1 ............................................................................................................................................... 9

Appendix 2 ............................................................................................................................................. 10

Appendix 3 ............................................................................................................................................. 11

Appendix 4 ............................................................................................................................................. 12

Appendix 5 ............................................................................................................................................. 13

Appendix 6 ............................................................................................................................................. 14

Appendix 7 ............................................................................................................................................. 16

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1. Glossary & Definitions

C-Label: Carton label (Appendix 3)

EAN: European Article Number – 13 digit number

IRC: Item Reference Code – 11 digit number, also called “ref.” or “SKU” (stock keeping

unit)

Inner pack: the optional intermediate handling unit, mostly used for picking.

Material Number: an 11 digit code, also referred to as IRC

Outer pack (Master): the handling unit, as it generally appears on the pallet, also

called shipper

P-Label: Pallet Label (Appendix 7)

PO: Purchase Order.

POSM: point of sales material SSCC: Serial Shipping Container Code – 18 digit number used by Europe only

TPM: Third party manufacturer – Coty subcontractor who performs final assembly on

specified items

TUC (TUC-code): Trading unit code, in case of inner pack

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2. Purpose and Scope

The purpose of this procedure is to establish the required guidelines for the delivery of goods to the DC’s in Weilbach and Düren.

This procedure applies to all contract manufacturers, TPM’s and Coty Manufacturing or Distribution sites. It ensures that all product shipments are uniform and conform to Coty

requirements for acceptance at the distribution center.

Should discrepancies be noted to this specification during the receiving process, an administrative fee and charge-backs may be deemed to apply, to the supplier’s account.

3. Delivery

3.1. Delivery address

• arvato distribution GmbH, Willi-Bleicher-Str. 36, 52353 Düren / Germany

• CEPL Michelstadt GmbH, Reuboldstrasse 13, 63937 Weilbach / Germany

3.2. Opening hours

• Goods can be delivered to Düren Monday to Friday 06.00h – 18.00h

• Goods can be delivered to Weilbach Monday to Friday from 06.00h to 19.00h. We can only accept trucks with a loading height of about 130 cm (no low-loader!). Offloading from the side is not possible.

3.3. Documents requirements

3.3.1. Packing List, Invoice, Delivery Note

A packing list, invoice and delivery note showing cartons, units, articles and reference numbers must be attached to each consignment.

3.3.2. Declaration

A long term suppliers’ declaration must be sent with the invoice for the first time of shipment – only for merchandise produced inside Europe (Appendix 1). Updates are

required for each reference on a yearly basis and on any changes.

3.4. Accounting

3.4.1. Invoice

Send your invoice with the correct and visible purchase order number to the following address:

Coty Services and Logistics GmbH, Rheinstrasse 4E, 55116 Mainz / Germany VAT No. DE811564813 Invoices without purchase order number will be returned to the supplier and will not be

paid until the correct and visible Purchase order number is printed on the invoice.

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3.4.2. Bill of Lading

Bill of lading cannot be split over several containers, thus at least one BoL per container is required.

3.4.3. Freight charges

Any additional charges to the invoices are not to be paid by Coty.

3.5. Pre advise

Each delivery to the warehouses needs to be pre advised and confirmed by the

warehouse at least 48 hours in advance to reroute and inform alternative shipping

destinations.

If you need to deliver more than one truck at once, please ask for the maximum number of trucks that can be received at your preferred date. Unannounced trucks will be

refused. Please also note that a delivery prior the delivery date given on the PO is not

possible.

for Düren: Please fill out the pre booking form (Appendix 2) and send your request to

coty.inbound@bertelsmann.de You will find the latest version of the pre booking form on the internet:

http://www.arvato-hightech.eu/coty

for Weilbach:

Please send an eMail with the following information to the below mentioned address and have the warehouse confirm:

Name of supplier, forwarder and driver; license plate of truck and trailer; preferred day

of delivery; number of pallets or cartons and the Coty PO number.

email : wareneingang.weilbach@cepl.fr, carmen.erbeldinger@cepl.fr, Tel. 0049 9373

2068 173 Fax 0049 9373 2068 192 (Tel/Fax only for extraordinary contacts)

4. Shipper/Carton requirements

4.1. Dimensions

Whenever possible we would like to receive cartons within the following dimensions:

Minimum: length 30 cm width 20 cm height 12 cm

Maximum: length 40 cm width 27 cm height 35 cm

The maximum weight per carton is 12,5 kg. If exceptionally other size must be used

because of product specification, please ask for derogation to Coty, giving the new size of cartons.

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4.2. Marking

4.2.1. Factory goods

Each shipper cartons must have the C-Label (Appendix 3), showing the Coty reference number, EAN code on unit level, description of goods, and quantity per carton. The EAN

code must be shown as a figure and also as a bar code in EAN 128. (MUST BE PRINTED

IN C128 FORMAT!)

Each item has to be labelled with the EAN code or alternatively has to be tagged with a

label which shows the EAN code. The picking unit has to be labelled:

a. for Coty Prestige products with the EAN code b. for Coty Beauty products with the EAN at TUC level

Cartons / Products that are not showing the required Barcodes, will be relabelled in the warehouse and billed back to the supplier.

Partial cartons must be clearly marked in RED as “partial carton” (Appendix 4) and

placed at the top of the pallet and on the outside for quick and easy visibility. Where applicable a dangerous goods label (size: 100x100mm and can be reduced down

to 50x50mm for small cartons) needs to be printed on every carton.

The supplier is responsible to ensure that his shipment complies with regulations on Dangerous Goods during international transport: all packing and marking has to be in

line with International transport regulations (IATA / IMDG).

Any deviation from carton marking requirements may result in an expense charge back.

4.2.2. Marketing goods (POSM)

The C-label requirements for factory goods also apply for the cartons of POSM and

marketing material. A difference is the batch code, which can be printed as “000000”. The placement of this label has to be on the length side of the carton, on the lower left

In addition all POSM material needs to be labelled with a barcode showing the EAN or EAN at TUC level for the Weilbach warehouse. If there is a polybag or shrinkwrap,

containing more than one product, a special label with the EAN and number of pieces

needs to be applied in addition. If the content is a set and is not supposed to be split,

the word “SET” replaces the Quantity. (Appendix 5).

If your shipment does not contain dangerous goods, please make sure the carton does

not show any markings (LQ and Arrows).

Any deviation from carton marking requirements may result in an expense charge back.

4.3. Packing

Cartons need to be packed according to the fixed number of units per cartons for the reference. If there are remaining units, one partial carton will be accepted.

IRC’s and batch codes should never be mixed within a shipper.

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Supplier has to ensure that cartons are in good selling conditions when they arrive at

the Coty Warehouses. Cartons without correct shape may present a danger for pallet stability during handling and storage operations and jeopardize operations efficiency. All

loads / cartons presenting such a default may have to be reworked, the expenses will be then charged back.

All packs have to be sealed. Recommended seal method is a warranty tape or polypropylene strapping. Blind tape and removable adhesives are prohibited.

Please keep in mind that failure to comply with these packing requirements means that

Coty incurs increased handling and processing expense that may be billed back to your organization.

5. Pallet requirements

5.1. Dimensions and composition

Deliveries must be packed on exchangeable Europallets (Appendix 6) which must

have the following dimensions:

120 x 80 cm, height (incl. pallet): 125 cm, max. weight: 500 kg. Maximum height may

excess 125 cm for marketing items like displays. This comply with industry standards and allows the appropriate storage in our pallet racking as well as being the industry

standard. If deliveries are packed on pallets with different dimensions, please mention

this in loading advice. Pallets must be in good condition (no loose or missing boards, no hanging nails) and must meet ISPM15 sterilization requirements through heat

treatment. (Note that treatment with Methyl bromide is no more accepted when importing goods in

European Union).

Non-Euro-pallets will be repacked in the warehouse for the account of the

supplier.

5.2. Marking

A specific label (P-Label also see appendix 7) is to be attached on each pallet, clearly

visible on the smaller side of the pallet. The carton quantity as shown on the C-Label

now needs to be substituted by the quantity per pallet.

5.3. Packing / Loading

• One pallet should be packed with one reference number and one batch code only.

If there is a need for a mixed pallet to save in shipping cost, the various items on the pallet should be placed in separate layers, at least slip-sheeted or separated

by shrink wrap. The pallet should be clearly marked as a mixed pallet

• Product should not overhang the pallet

• Pallets should be adequately protected for transit, ie. stretch wrapped, banded,

strapped. • When stretch wrap is used, the wrap needs to include the pallet. At least three

layers of wrap should be applied. • Pallets should be layered in a uniform pattern to allow for accurate and

appropriate counting at the time of receipt

• Floor loaded containers will not be accepted unless otherwise specified

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• Pallets loaded in trailer must be configured so as to minimize shifting and

eliminate tipping during transport. Use of load lock to secure load in trailer if necessary

• Pallets can be stacked if the cartons underneath are strong enough, please do not stack cartons vertically

6. Document accompanying merchandise material

• a packing list indicating the number of cartons, quantities and weight, articles

and reference codes by country must be attached to every delivery. It also needs

to show the vendor name and address as well as ship to name and address

• Delivery note including the PO number

7. Disclaimer

Coty reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information

provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.

Any costs born by Coty to destroy, send back, or pay fines resulting from wrong or missing information on expiry date will be recharged to Supplier.

1) Guidelines summarized in the document are subject to CEPL/arvato terms and conditions, while European regulations for deliveries must be respected at any time.

2) Processes not outlined in this document are subject of general European regulations for deliveries

For any questions, suggestions or complaints concerning deliveries to Düren or Weilbach, please contact our Warehouse Process Engineer, Ms. Ulrike Willig:

Tel.:0049 (0) 6131/306-665 Email: ulrike_willig@cotyinc.com

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Appendix 1

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Appendix 2

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Appendix 3

C-Label & Placement

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Appendix 4

Example Marking - Incomplete Carton

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Appendix 5

Inner pack label

To be applied on item or polybag if only one piece is inside.

To be applied when more than one item is in a polybag/shrinkwrap

IRC 00000000000

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Appendix 6

Exchangeable EPAL

To exchange EPAL certified EUR-pallets 800 x 1200 mm, the following exchange criteria

must be observed:

NON-EXCHANGEABLE EUR-PALLETS:

If there is one or more defects on EUR-pallets as below, the pallets are not exchangeable.

They must be repaired as per the UIC-code 435-4. A single upper or lower edge board is damaged so

that one nail or screw shank is revealed.

The EUR mark on the right or i.e. the EPAL symbol

on the left is missing.

A board is missing.

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A block is missing or split to the point where more

than one nail shank is visible.

A board is broken transversely or diagonally.

More than two lower or upper edge boards are

damaged and reveal one nail or screw shank for

each board.

Other characteristics (Poor condition overall):

• The loading capacity can no longer be guaranteed (wood worm-eaten or rotten).

• Contamination is such that products may be soiled.

• Large splinters are coming away from a number of blocks.

• There is evidence that inadmissible construction elements have been used, e.g. boards and blocks that are too weak.

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Appendix 7

P-Label To be applied on the smaller side of the pallet