Topco Supplier Handbook - 4.1.2011
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Transcript of Topco Supplier Handbook - 4.1.2011
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Topco Associates LLC. Supplier Handbook Page 1 of 44
Supplier Handbook
Version: 1.16 Effective March 31, 2011
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Topco Associates LLC. Supplier Handbook Page 2 of 44
Table of Contents
Introduction ........................................................................................................... 4 Benefits of Topco Business .................................................................................. 6 Supplier Expectations ........................................................................................... 9 Supplier Code of Conduct ................................................................................... 11
Conformity with Applicable Laws and Regulations .......................................... 12 Employment Practices ..................................................................................... 12
Supplier Diversity ................................................................................................ 14 NuVal .............................................................................................................. 15 Requirements for Suppliers ................................................................................ 16
Product Supplier Agreement (PSA) ................................................................. 16 Certificate of Insurance (COI) .......................................................................... 16
Quality Assurance ............................................................................................... 17
Product Approval ............................................................................................. 17 Product Testing ............................................................................................... 18 Coding and Lot Traceability Markings ............................................................. 18 Product Traceability ......................................................................................... 20 Shipping Case Markings ................................................................................. 20 Shipping Documents ....................................................................................... 21 Specialized Product Categories ...................................................................... 21 Package and Label Evaluation ........................................................................ 21 Plant Inspections ............................................................................................. 22
Product Availability .............................................................................................. 23
Recommended Quantities ............................................................................... 23 Product Delivery .............................................................................................. 23 Product Integrity .............................................................................................. 24 Pallet Requirements ........................................................................................ 24 Inspections ...................................................................................................... 24 Accepting of Product ....................................................................................... 25
Liquidation Policy ................................................................................................ 26 Product Updates ................................................................................................. 27 Product Recall or Withdrawal .............................................................................. 28
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Topco Associates LLC. Supplier Handbook Page 3 of 44
GTIN Global Trade Item Number ..................................................................... 29 What is a GTIN ................................................................................................ 29 Key Benefits of the GTIN ................................................................................. 29 GTIN Definitions .............................................................................................. 30 Case Code ...................................................................................................... 31 Assignment of GTINs to Packaging Levels ..................................................... 31 Supplier Responsibility .................................................................................... 32
Invoicing Requirements ...................................................................................... 33
Invoicing Accuracy .......................................................................................... 34 EDI Invoice Policy ........................................................................................... 34
Gifts and Gratuity Policy ..................................................................................... 36 Appendix ............................................................................................................. 37
Product Information Form ................................................................................ 37 Supplier Information Form ............................................................................... 38 Emergency Contact Information ...................................................................... 39 Case Labeling DOMESTIC PRODUCTS ..................................................... 40 Carton Markings IMPORT PRODUCTS ....................................................... 41 Carton Strength Requirements Import Products : ......................................... 43
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Topco Associates LLC. Supplier Handbook Page 4 of 44
Introduction
The principle of this Handbook is to introduce you to Topcos business values
and practices. This will direct and guide you through the processes and
requirements of our suppliers consistent with our approach of having a mutually
beneficial business relationship. Topco at times will amend or update this
Handbook as necessary.
Topcos vision is to be a multi-channel powerhouse in the grocery industry to
enable our Members to level the playing field against the national chains doing
the following:
drive product cost down
drive owned brands penetration up
maximize differentiation from large national chains
enable Topco Member-Owners to differentiate themselves by how we do
business
Topcos focus is to be a premier customer for our suppliers:
first choice for suppliers innovation and ideas
have a communication channel that will notify Topco first of any issues or
concerns
no one pays less than Topco on a comparable basis
Topco Associates LLC specializes in aggregating multi-billion dollar purchases of
its grocery industry Member-Owners in the procurement of a broad range of
products and services including owned brands, national brands, perishables,
equipment, and supplies. Excellent relationships with our Members, Suppliers,
and Topco Associates allow us to work efficiently and effectively to bring quality
and value to our Members and ultimately their consumers. Topco also serves as
a vehicle for its Members to achieve efficiencies of scale in key support areas
such as quality assurance, packaging, innovation, and logistics.
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Topco Associates LLC. Supplier Handbook Page 5 of 44
Many of the leading independent companies in the supermarket retail, wholesale,
and foodservice channels are Members of Topco, making it one of the largest
purchasing organizations in the grocery industry.
Topcos staff of experienced industry professionals collaborates with its Members
and suppliers to work toward the common goals of reducing product and
operating costs, and increasing owned brands penetration and product
differentiation.
Topco is a financially secure company that prides itself on our timely payment
policy.
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Topco Associates LLC. Supplier Handbook Page 6 of 44
Benefits of Topco Business
The Topco Supplier Handbook provides information on Topco guidelines,
requirements, and information to our suppliers. In conjunction with the signed
Product Supplier Agreement (PSA), this Handbook will serve as a source for the
information you will need to conduct business with Topco. In addition to the
requirements of the PSA between Topco and supplier, all Topco suppliers are
expected to adhere to the guidelines described in this Handbook. Adherence to
the PSA and guidelines are important factors in Topcos supplier selection
process.
Topcos desire is to create and maintain supplier relationships that are positive,
productive, and collaborative in providing product and service solutions for
Topcos Members. As a supplier, some of the benefits to working with Topco
include:
Aggregated Volume
With its large and growing Member base, Topcos purchasing volume is among
the largest in the grocery industry. By aggregating volume, suppliers can
increase buying power for raw materials and packaging and increase production
efficiencies to help ensure best supply arrangement.
Single Point of Contact
Topco acts as a single point of contact for our total spend, facilitating the
negotiating, ordering, strategizing solutions, and billing processes for suppliers
and Topco.
Category Knowledge
Topco has category expertise, leveraging resources worldwide to keep abreast of
consumer needs, governmental changes, competitive trends, and evaluating
solutions with our suppliers.
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Topco Associates LLC. Supplier Handbook Page 7 of 44
Quality Assurance
Topcos team of Quality Assurance Associates are dedicated to working with our
suppliers in maintaining strict quality standards established by Topco and its
Members.
Packaging Design Capability
Topcos team in Creative Services works with our Members and suppliers to
create attractive and high-impact packaging that drive sales.
Topco Label Management Program (TLMP)
The TLMP Department leverages the total Topco volume that spans across
multiple packers in order drive down the cost of the packaging material from our
packaging printers (such as Fort Dearborn, Poly Cello, and Hood). The objective
is to manage the purchase and inventory of paper labels, poly bags, pet food
bags, flour bags, etc. We then resell the packaging material to each packer. In
some cases, we are able to use common labels and bags across multiple
vendors, and the TLMP Department monitors the inventory and forecasts (with
the assistance of each members planning group) for all of the products to ensure
that we have an appropriate supply on hand.
The benefit of using our TLMP services is that it provides a seamless approach
to managing Member packaging inventories while holding costs down and
maximizes continuity of design by using a single printer by programs when
possible.
Merchandising Support
The Topco Program Management Team works hand-in-hand with our Members
providing assistance with category management, scan-data evaluation,
merchandising, space planning, promotions, and retail execution, all in the
interest of growing sales.
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Topco Associates LLC. Supplier Handbook Page 8 of 44
Common Goal Alignment
Topco works together with its Members and suppliers to reduce product and
operating costs and increase owned brand penetration. As a result, build
Members market share, drive sales, and profitability.
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Topco Associates LLC. Supplier Handbook Page 9 of 44
Supplier Expectations
Communication is a key success factor. Successful relationships are built on two-
way communication and a collaborative approach to business. Topcos goal is to
continue to delivering excellent customer service to our Members. An important
element of this commitment is the performance of our suppliers and supply chain.
We expect a high level of customer service from our suppliers. We are focused
on selecting suppliers who are highly motivated to increase sales through
product quality, low costs, product delivery, and innovation. Suppliers are
awarded business based on Topcos QCDI (Quality, Cost, Delivery, and
Innovation) approach to doing business.
The expectations of our suppliers and broad measures for success are:
Quality
Quality is determined by meeting Topcos specifications and standards, which is
continuously measured in several ways, including: Topcos QA Department
evaluation of product and packaging, plant audits, SQF certification, buying team
evaluation of product, and consumer and Members complaints and comments.
Cost
Our goal is to provide high quality owned brand products at the lowest total cost
of ownership for our Members. Cost is measured several ways, including: total
cost of goods, competitive cost when compared to other suppliers, economic
value, payment terms, volume incentives, and logistics cost. Suppliers are
required to sign Form 60 detailing the volume incentive agreement. Form 60 will
be initiated by Topco Procurement and signed by both Topco and the supplier.
Delivery
We are committed to delivering the right product, to the right location, at the
agreed to time. Deliveries are measured by on-time delivery to Topco or to Topco
Member, fill rates, quality of loads including product damage, load shifting, pallet
quality, production code quality, shelf life of product on delivery, and case
markings.
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Topco Associates LLC. Supplier Handbook Page 10 of 44
Innovation
It is important that we provide new and innovative products that meet the
changing needs of our Members and products and services that enable our
Members to differentiate themselves from their competition.
Innovation is measured by suppliers ability and level of activity in response to
Topcos ideas and suggestions, as well as to bring new product ideas, product
changes, and packaging improvements to Topco. In addition, innovation is
measured by supplier provided information on category and market trends,
speed to market with new products, process improvements, technical advances,
and a QCDI approach in suppliers business.
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Topco Associates LLC. Supplier Handbook Page 11 of 44
Supplier Code of Conduct
Topco is committed to the highest standards of ethical conduct in all of our
business dealings.
Topco believes that approved suppliers and all subcontractors of approved
suppliers should follow the same philosophy in both written policies and in
practice. Topco recognizes that its suppliers are independent businesses.
However, the actions of suppliers reflect on Topco, its Members and the
community in which we serve. Therefore, Topco expects suppliers to employ the
same level of business values, ethics, and practices as Topco.
For these reasons, Topco has established the following policy. Compliance is
required of all suppliers and it is the responsibility of each supplier to uphold
these requirements. Supplier shall make certain their subcontractors also meet
the terms of this policy. Failure to comply may result in withdrawing suppliers
approval standing.
Topco employees are prohibited from accepting gifts or gratuities from our
suppliers. While our rules do allow for limited exceptions for items of nominal
value, the offer or acceptance of gifts is inappropriate and discouraged.
Under no circumstances will our employees solicit any gift or gratuity. If at any
time, any person believes there has been a violation of the Code of Conduct or
any conduct that maybe considered unethical either by a supplier or Topco
employee, the person is expected to report the activity to senior Topco
personnel.
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Topco Associates LLC. Supplier Handbook Page 12 of 44
Conformity with Applicable Laws and Regulations
Topco believes that all employees deserve to be treated with dignity and respect.
Topco believes in the fair treatment of and fair wages for all employees, and that
no employee is discriminated based on race, color, religion, sex, age, physical
ability, national origin, or any other protected class. Topcos long-standing policy
is to comply with all local and national laws wherever conducting business and to
uphold a high standard of ethics.
Suppliers must conform to all pertinent local and national legal requirements,
customs, and published industry standards pertaining to employment and
manufacturing. If there is a conflict between legal requirements and published
industry standards, at minimum, suppliers must comply with the law that takes
precedence.
Employment Practices
Forced Labor: The use of or forced labor by a supplier is strictly prohibited. The
use of labor under any form of indentured servitude is prohibited, as is the use of
physical punishment, confinement, threats of violence, or other forms of physical,
sexual, psychological, or verbal harassment or abuse as a means of punishment
or control. Suppliers will not engage production facilities that force work to be
performed without pay or to force persons to work against their will. Nor will
suppliers contract for the manufacture of goods for Topco of subcontractors that
condone such behaviors.
Child Labor: The use of child labor by suppliers or a subcontractor of suppliers
is strictly prohibited. Child is defined for the purposes of employment as a person
who has not reached the age of 15 unless the local law allows for the minimum
age of 14. At no times is the supplier to allow individuals under the age of 14 to
be involved in the production or handling of Topcos product. In either situation,
the supplier will not permit individuals between the ages of 14 and 16 to work
during the hours in which the minors are by law required to attend school except
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Topco Associates LLC. Supplier Handbook Page 13 of 44
in situations where the minor is enrolled in a legally approved apprenticeship or
similar program.
Working Hours: Suppliers must guarantee that all individuals working on goods
supplied to Topco do so in conformity with national and local laws pertaining to
the number of hours and days worked.
Compensation: It is Topcos belief that all employees, including suppliers and
suppliers subcontracted employees be given fair wages and benefits, including
compensation for overtime pay, that comply with local and national regulations. If
local and national regulations do not support overtime pay, at minimum,
employees must be paid at regular pay for all hours worked.
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Topco Associates LLC. Supplier Handbook Page 14 of 44
Supplier Diversity
Topco recognizes the importance of differences. It is through differences that we
can grow and prosper. Topco is committed to develop mutually beneficial
relationships with minority and women-owned business. This commitment is part
of our procurement strategy. Topco continually looks for companies that offer
quality, service, low cost, and innovation. Minority and women-owned businesses
offer their own uniqueness and strengths.
Benefits of Supplier Diversity:
The minority population is the fastest growing sector in the United States.
We believe our supplier base should reflect the demographics of our
Members customer base.
Diverse suppliers bring new ideas and products to our business including
ideas and opportunities on how to reach the diverse markets and offers
unique insights to these emerging markets.
Topcos supplier diversity initiative will enhance our supply chain, create
wealth in the communities in which we serve, and better identify with
consumers.
It is good business sense.
Topco recognizes the following certifying agencies:
National Minority Supplier Development Council
Women's Business Enterprise National Council
Association for Service Disabled Veterans
Government Agencies (Federal, State, City or County)
Other certifications may be accepted. Requests can be submitted to Topco.
Topco defines minority and women-owned businesses that are at least 51
percent owned, managed and controlled by one or more members of the
following groups: African Americans, Hispanic Americans, Native Americans,
Asian Pacific Americans, Asian Indian Americans, and Non-Minority Women.
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Topco Associates LLC. Supplier Handbook Page 15 of 44
NuVal
Topco entered into a partnership with Griffin Hospitals in Derby, CT to introduce
the NuVal Nutritional Scoring System. Dr. David Katzs of Griffin lead a team of a
dozen internationally recognized nutritional experts to develop a universal system
for rating nutritional quality across all food and beverage categories. This
algorithm takes nutrient and ingredient information and computes a 1-100 point
nutritional score, with higher scores representing higher nutritional quality. The
goal of the scoring system is to provide consumers with easy to understand
nutritional information to make healthful decisions when purchasing food
products.
The first step in this process is to obtain the required nutritional data from our
suppliers that will allow us to score all of the food and beverage products
procured by Topco. To collect the nutritional and ingredient information, Topco is
utilizing a central web-based product specification database through a service
provided by Marketing Management, Inc. (MMI) called Product Master.
Prior to shipping, suppliers are expected register product into Product Master and
submit nutritional information on all skus procured by Topco and all skus being
considered for commercialization. To begin the process, supplier must send an
e-mail address, name, and phone number of the person at your company who
will manage this initiative to [email protected]. Supplier contact is
typically someone in QA or R&D. MMI will then provide details to supplier on how
to register.
Our goal is to be, at minimum, nutritionally aligned with national brand
equivalents. Topco QA will work with suppliers to address significant nutritional
disparities that require reformulation.
If you are interested in learning more about the NuVal Nutritional Scoring System
visit www.nuval.com.
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Topco Associates LLC. Supplier Handbook Page 16 of 44
Requirements for Suppliers
Product Supplier Agreement (PSA)
Suppliers are required to have a signed PSA on file with Topco prior to shipping
products. This is a legal binding agreement detailing terms and conditions of
conducting business with Topco. The Topco Buyer issues PSAs. Following is a
summary of major PSA provisions. Suppliers need to refer to their PSA for
compliance requirements.
Certificate of Insurance (COI)
A certificate of insurance naming Topco as an additional insured is required prior
to shipping products. This certificate must be updated annually prior to the
expiration of the COI. Failure to provide a current COI will result in payment
being withheld until received. The PSA details minimum insurance requirements
as well as additional insurance matters.
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Topco Associates LLC. Supplier Handbook Page 17 of 44
Quality Assurance
Topco is synonymous with quality. Quality products do not occur by chance. It is
through stringent processes and practices, attention to detail, quality of raw
materials, and collaborative efforts of Topco and our suppliers that Topco can
deliver the best quality products at the lowest price.
Product Approval
Quality approval process begins with establishing a target and developing a
written product specification for every product we offer. Topcos brand standard
philosophy is to provide products that meet or exceed the quality performance
standards and nutritional profile of the target product, which is the brand with the
highest consumer recognition.
Supplier must submit at least two samples of product to Topco QA for initial
approval along with the written finished product quality specification for the
product. All submitted samples must meet all specification requirements in order
for the item to gain initial approval. Following is information that must accompany
the initial set of samples:
Finished product specification (organoleptic, grading criteria, performance
standards, physical, chemical and microbiological limits)
Product shelf life
Minimum shelf life upon receipt of goods by Topco or Topco Member
Code interpretation (full description, all characters) for the lot code portion
of the code
Copy of the most recent (within the preceding 12 months) Global Food
Safety Initiative (GFSI) certification to one of the benchmarked schemes
(food facilities) or second party audit report (non-foods facilities).
Technical label copy: product name, nutrition facts, ingredient statement,
allergen statement, net contents, country of origin, preparation
instructions, storage instructions, warning statement, health or nutrition
claims and supporting information
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Topco Associates LLC. Supplier Handbook Page 18 of 44
Documentation in support of vendor compliance with the FDA Bioterrorism
Act of 2002
Valid certifications related to the product and packing facilities (organic,
kosher, etc.)
Change to an approved product formulation specification or label is
prohibited without prior approval by Topco QA. Additional information,
requirements regarding product testing, and approval can be found in the
Topco Supplier Quality and Food Safety Expectation Guide.
Product Monitoring
Product testing is required for all private label products purchased by
Topco. The testing program is designed and administered by Topco QA
via a risk-based product monitoring protocol and varies by product
category as well as by prevalent industry issues.
Supplier Quality/Safety scorecards are issued every six months. They
report each suppliers overall performance during the latest six-month
timeframe and communicate recommendations to improve scores as well
as required sampling frequency.
Coding and Lot Traceability Markings
All retail units are expected to have markings that clearly identify the specific
packing plant within the producing country along with any additional characters to
identify the container contents, packaging line, etc. The additional markings are
for traceability purposes. In addition, all products with an expiration date are
expected to have a use-by date marked directly on the retail container (can end,
glass jar or metal lid, etc. [not on the label, neckband, or some other removable
part of the packaging]). All coding and lot traceability markings that appear on the
retail unit are also expected to be present on the shipping case. Topco QA
expects to have on file, at all times, the current full code interpretation guidelines
for all of a suppliers products. Products that are represented by an importer or
that are sourced from a plant used by multiple suppliers or importers to Topco
are also expected to reflect the 3-character importer/supplier identifier code at
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Topco Associates LLC. Supplier Handbook Page 19 of 44
the end of the USE BY or BEST BY date line. Topco QA assigns this code. All
code markings must be fully legible and must not interfere with or overlap other
markings on the container.
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Topco Associates LLC. Supplier Handbook Page 20 of 44
Product Traceability Product traceability is a critical element in the establishment of safe quality food.
In the event of a recall, product withdraws, or questions our customers may have
concerning the products we sell, it is important that we are able to respond
quickly and accurately. Accordingly, we expect our suppliers to be able, at any
time, to identify and provide the sources of the ingredients used in the finished
products that they supply Topco or Topco Members. Documentation should be
available by finished product and by (lot) production code printed on the item.
Information is expected to be provided within 48 hours of the inquiry.
Shipping Case Markings
The following elements are Topcos minimum expectations for shipping case
markings. At a minimum, two adjacent sides of the shipping case should clearly
display:
Product name
Product Style, Flavor, etc.
Brand
Pack Size, Type, and Count
UPC numeric (GTIN)
Scannable UPC
Product traceability information
Use by date
Samples of shipping case label requirements are shown in the Appendix section
on pages 38 - 40 of this document.
Other markings as designated by government of importing or exporting country
may be required (i.e., CIQ number and seals for Chinese plants). Printed
markings should be fully legible and must not interfere with or overlap other
preprinted markings on the shipping case.
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Topco Associates LLC. Supplier Handbook Page 21 of 44
Shelf Life: Products are expected to have a minimum of 80% of their total shelf
life upon receipt by Topco or Topco Member. In the case of seasonal packed
product (i.e. canned fruits and vegetables), supplier is expected to closely
monitor negotiated quantities versus actual product movement so that Topco can
start receiving new pack product once it is available.
Shipping Documents
Shipping details should accompany all product shipments and must arrive at the
warehouse along with the product. The contents of each delivered load should
accurately reflect all required lot and code date information, by product. If a
shipment is comprised of multiple code dates of any one item, the breakdown of
quantity by code should be reflected in the shipping documents. All shipments
should be made in compliance with the FDA Bioterrorism Act of 2002.
Specialized Product Categories
Fresh meat, produce, and other perishable products have different quality control
requirements. Topco has experts in the field, including produce inspectors on the
east and west coasts as well as meat selectors and auditors monitoring
production across the country, who provide expertise in highly sensitive product
lines.
Package and Label Evaluation
QA also evaluates package label information. In addition to the labeling
requirements described in the PSA, it is the responsibility of the supplier to
ensure accurate nutritional labeling, ingredient labeling, allergen warnings, and
that all labeling elements are in compliance with all local, state and federal
requirements.
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Topco Associates LLC. Supplier Handbook Page 22 of 44
Plant Inspections
As provided in the PSA, in addition to formal inspections conducted through the
certification process, Topcos QA staff or designated second party company may
also inspect facilities. These plant inspections are for investigative purposes and
to assess that agreed-upon corrective actions have been addressed related to
product quality or safety issues.
If additional non-conformances are identified via this inspection process, the
vendor is expected to submit a written corrective action plan for each identified
non-conformance. Corrective action plans must include timeliness to completion.
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Topco Associates LLC. Supplier Handbook Page 23 of 44
Product Availability
It is the responsibility of the supplier to track the movement of their product(s) to
ensure appropriate label and finished goods inventory is adequate to meet Topco
Members demands. Supplier are expected to work with their Topco Buyer to
determine appropriate inventory levels and production runs to ensure meeting
service level commitments to our Members.
Recommended Quantities
Inventory quantity for finished goods should be generally two weeks and quantity
for labels and packaging should be three months. This is dependent on product
category and final direction of Topco Buyer. Refer to PSA for specific category
information.
Product Delivery
Products must be shipped and delivered in adherence with the requirements
detailed in the Topco PSA or as communicated by the Topco Buyer. The
purchase order states actual ship-to location. In addition, supplier must ensure
that shipments and deliveries adhere to each individual Members requirements.
When shipping or delivery requirements differ between Topco and the Member,
the supplier will follow the Members requirements and notify the appropriate
Topco Buyer of the change.
As with Good Manufacturing Practices, suppliers are expected to have Good
Food Handling Practices established to protect the integrity of the food by
ensuring properly maintained temperatures, proper identification and segregation
of damaged, dated, rejected or product on hold, assurance that no raw products
or packaged products are cross contaminated, and trailer conditions are sanitary
and well maintained.
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Topco Associates LLC. Supplier Handbook Page 24 of 44
Product Integrity
Supplier is expected to ensure that product is shipped in a method to maintain
the physical integrity and quality of the product, shipping case, and pallet
configuration.
Pallet Requirements
Supplier must use CHEP pallet rental system unless otherwise authorized by
Topco or Topco Member.
Topco and Topco Members reserve the right to inspect all incoming pallets and
to reject any pallets that are damaged or not in compliance with specifications.
The driver who delivered the rejected pallets will be required to unload and the
restack the product on acceptable pallet(s).
Inspections
All deliveries are subject to examination for damage and infestation before being
received. Constructive placement on the dock must be done in such a way to
allow sufficient space for a thorough inspection. Pallets may be visually checked
with a flashlight. If there is evidence of possible infestation found all products will
be black-lighted. If loads have any evidence, whatsoever, of infestation the entire
shipment will be returned to the suppliers point of distribution. In such instances,
transportation charges and reprocessing charges will be the responsibility of the
supplier.
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Topco Associates LLC. Supplier Handbook Page 25 of 44
Accepting of Product
Topco and Topco Members will receive products subject to inspection and
approval of its inspectors within a reasonable time after receipt of order.
Payment for products does not constitute approval. If the products or tender of
delivery are defective or do not conform to samples, descriptions and
specifications included on purchase order or otherwise provided to supplier,
Topco or Topco Member may reject all of the products, or accept any quantity of
commercial units and reject the remaining. Supplier will reimburse Topco or
Topco Member in full for products rejected and returned and supplier will assume
all cost of handling. Handling charges include, but not limited to, transportation
costs both ways, employees handling costs, and the difference in cost of
replacement product if cost of replacement product is greater than agreed upon
cost with supplier. Refer to the PSA for further details.
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Topco Associates LLC. Supplier Handbook Page 26 of 44
Liquidation Policy
Topco understands that at times product may need to be liquidated. Suppliers must adhere to the following policy to ensure proper handling of Topco or Topco Members label. At no time will product liquidation be authorized that pose a potential health risk, quality issue, or expired product. Consideration will be given only if product can be liquidated outside of Topco or Topco Members market and Supplier must ensure product will not make its way back to Topco or Topco Members market area. Topco Labeled Product: Prior to product liquidation supplier contacts appropriate buyer with product description, label name, production code, UPC code, expiration code, inventory in cases and units of effected product, and reason for disposition of product. Supplier should provide a recommended solution of liquidation. Topco will have final authority over product distribution. Member Labeled Product: Prior to product liquidation supplier contacts appropriate buyer at Topco and at Topco Member with product description, label name, production code, expiration code, inventory in cases and units of effected product, and reason for disposition of product. Supplier should provide a recommended solution of liquidation. Topco along with Topco Member will have final authority over product distribution.
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Topco Associates LLC. Supplier Handbook Page 27 of 44
Product Updates
Suppliers are expected to contact the appropriate Topco Buyer concerning
opportunities, discussions, questions, and issues. In the event the Buyer is not
available, the supplier can contact the Category Director followed by the Vice
President.
Topco expects our suppliers to provide us with accurate and timely information.
This includes information regarding unit pricing, bracket pricing, promotions,
damage allowance, freight, discounts, quantities, delivery status, and logistic
information including pallet quantity, cases clearly marked with UPC, case
description, pack and size, case length, width, and height, supplier contact
information including customer service, and ship and pickup information.
Information on file must be accurate at the time the order is placed.
When product information changes Topco requires 10 business days to process
changes. This is the minimum amount of time necessary to ensure good flow of
information to our Members.
We understand that at times the information may not be available; however
under no circumstances should receipt of information be subsequent to receipt,
or lack thereof, of product delivery. It is critical suppliers notify Topco prior to a
scheduled delivery of any changes to order, (i.e. order quantity, product cost, or
requested ship/delivery date). Supplier must communicate to the appropriate
Topco Associate so Members can be advised and given options to remedy the
situation.
To ensure accurate information supplier must communicate changes to product
or supplier information via the Product Information Form (PIF) and/or the Supplier
Information Form (SIF). PIF and SIF forms are found on pages 37 and 38 in the
Appendix section of this Handbook. Only fields with changes are to be
completed. In the event of a change to suppliers remit address change must be
submitted on the suppliers letterhead.
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Topco Associates LLC. Supplier Handbook Page 28 of 44
Product Recall or Withdrawal
In the event that a government agency advises supplier that a product recall is
necessary or appropriate, if Topco or Topco Member, or supplier otherwise
determines that it is necessary or desirable to remove any product from sale or
distribution, the deciding party will promptly notify the effected party. Supplier
shall notify Topco of any recall or market withdrawal involving any product
produced at any facility producing Topco or Topco Member products even if a
Topco or Topco Member labeled product is not involved. Supplier shall fully
cooperate with Topco and Topco Members with respect to any recall or
withdrawal of product from sale or distribution, and all product recalls or
withdrawals shall be coordinated through Topcos Recall Coordinator.
Topco and Topco Members reserve the right to charge suppliers a fee for all
costs incurred in connection with a product recall or withdrawal. Costs may
include, but are not limited to, the value of the product, freight costs, handling
costs, loss of sales and profit, and difference in cost of replacement product if
cost of replacement product is greater than agreed upon cost with supplier.
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Topco Associates LLC. Supplier Handbook Page 29 of 44
GTIN Global Trade Item Number
The following is an explanation of GTIN, use of GTIN at Topco, and supplier
requirements.
GS1 has created the standard for use of GTINs. Topco will follow the standard
when ever possible. More information can be found on the GS1 web site:
barcodes.gs1us.org
What is a GTIN
GTINs provide distinctive product recognition worldwide. GTINs are encountered
most often at the point of sale and on cases and pallets of products in a
distribution/warehouse setting. GTINs can be programmed into various types of
GS1 bar codes and Electronic Product Codes (EPC) which are programmed
into Radio Frequency Identification (RFID) tags.
GTINs are generally used on purchase orders and delivery and payment
documents. If used properly, GTINs will distinctively identify our products as they
move through the global supply chain to the end user.
Key Benefits of the GTIN
Facilitates the global flow of trade items (products and services) and
associated information used in electronic commerce
Uniquely identifies trade items at all levels of packaging (item, case, and
pallet)
Allows accurate machine reading of trade items when placed in bar codes
Delivers trade item data in a consistent format and structure
Simplifies supply chain management
GTIN enable the use of GDSN for data synchronization.
(2006 GS1, 2006)
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Topco Associates LLC. Supplier Handbook Page 30 of 44
GTIN Definitions
The GTIN is the unique GS1 System Identification Number used for trade items.
The term trade item refers to any product or service upon which there is a need
to retrieve pre-defined information; this product or service may be priced,
ordered, or invoiced at any point in the supply chain. This includes individual
items as well as all of their different packaging configurations.
GTIN are 8, 12, 13, or 14 digits in length. GS1 recommends that a GTIN be represented in software applications as 14
digits by right justifying and zero filling left, as appropriate.
The four GTINs (8, 12, 13, and 14 digits) can be represented in a bar code. Each
code provides distinctive numbers when right justified and used in a 14-digit
database field:
GTIN 8 (used in EAN-8 bar codes)
Seven digits containing a GS1-8 Prefix and Item Reference
One digit representing the Check Digit
GTIN-12 (used in UPC-A Consumer Code and EPC-E bar codes)
Eleven digits containing a UPC Company Prefix and the Item
Reference assigned by your company
One digit representing the Check Digit
GTIN-13(used in EAN bar codes)
Twelve digits containing a GS1 Company Prefix and the Item
Reference assigned by your company
One digit representing the Check Digit
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Topco Associates LLC. Supplier Handbook Page 31 of 44
GTIN-14 (used in ITF-14, GS1-128 (formerly UCC/EAN-128), Reduced
Space Symbols, and Data Matrix bar codes, plus EPCs)
One digit representing the Indicator digit to indicate packaging level
Twelve digits the GS1 Company Prefix and the Item Reference
assigned by your company
One digit representing the Check Digit
A leading 0 represents the consumer-selling unit. This applies to
product that is scanned at checkout at any level in the hierarchy.
A leading digit between 1 and 8 can represent the product in various
forms such as case pack, shipper count, and pallet count.
A leading digit of 9 represents random weight product.
Case Code
The food industry standard for case identification is a 12 Digit Case Code.
This code is not a GTIN. At no time should additional digits be added to
the 12 Digit Case Code.
Samples of shipping case label requirements are shown in the Appendix section
on pages 35-37 of this document.
Assignment of GTINs to Packaging Levels
The company owning the manufacturer prefix should assign GTINs. Therefore,
for Topco owned brands Topco will assign the GTIN. For Member owned brands
the Member assigns GTINs and notifies Topco of the numbers for input in our
system. This will prevent any product receiving issues while providing data and
traceability of products.
The assignment of the 12-digit UPC Consumer Code (GTIN-12) and placement
on the consumer-selling unit does not change.
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Topco Associates LLC. Supplier Handbook Page 32 of 44
Supplier Responsibility
For Topco owned labels the supplier must contact Topco for assignment of
GTINs for individual product labels and product cases, shippers, and/or pallets.
For Member owned labels the supplier must contact the Member for assignment
of GTINs for individual product labels and product cases, shippers, and/or
pallets.
If supplier is requesting GTINs from a Member who is not assigning GTIN-14, the
supplier should contact Topco for further direction. The supplier should not
assign GTINs.
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Topco Associates LLC. Supplier Handbook Page 33 of 44
Invoicing Requirements
As provided in the PSA, direct billing to Topco is the standard method of
invoicing for all products purchased by Topco. Suppliers are expected to bill via
EDI directly to Topco. Should a supplier be unable to bill electronically, a fee may
be assessed against each purchase order to help offset the cost of manual
processing. As provided in the PSA, Suppliers shall provide monthly, a detailed
statement of account reflecting all outstanding charges and credits.
Following is the minimum information expected on all invoices:
Topco
Topco Member
Purchase Order Number
UPC Case Code
Topco Product Code
In some cases, for operational and other business reasons, a supplier may be
requested to direct bill a Member. This method of billing by supplier is only
acceptable with the expressed written approval by Topco, as set forth in the PSA.
In the rare situations where the supplier directly bills a Topco Member, the
supplier must provide Topco a monthly sales recap of all direct billings within
three (3) business days after the end of each month. The sales recap must
include for each item:
reporting period
UPC case code or Topco product code
complete item description
quantity
billing unit of measure
gross price
promotional allowances
miscellaneous charges
Under direct billing to Members Topco shall have no liability or responsibility for
payment and supplier shall look solely to the Topco Member for payment.
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Topco Associates LLC. Supplier Handbook Page 34 of 44
Invoicing Accuracy
It is the suppliers responsibility to review each purchase order received from
Topco to ensure compliance with all aspects of Topcos purchasing agreement
with supplier, (i.e., per unit pricing, bracket pricing, promotions, damage
allowance, freight, discounts, quantities, delivery requirements, shipping
requirements, etc.). If there is a discrepancy or question, it is the suppliers
responsibility to notify the Topco Buyer (via email, fax or by phone) before the
order is shipped.
EDI Invoice Policy
All suppliers doing business with Topco are expected to be able to transmit an
invoice and month end recap for Member direct billing electronically (via EDI).
Standards: Topco uses Electronic Data Interchange (EDI) as an integral
business tool to increase customer satisfaction. The data interchange standard
used by Topco is UCS. Topco uses value-added networks (VANS) and
occasionally may elect to communicate directly to a partner through other
communications protocols.
Acknowledgements: Transmission of supplier EDI invoices will be
acknowledged according to standard EDI guidelines. The 997 acknowledgement
will be used. It is the suppliers responsibility to verify Topco has acknowledged
transmissions and take appropriate action if the expected acknowledgements are
not received within 24 hours.
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Topco Associates LLC. Supplier Handbook Page 35 of 44
EDI Invoice Requirements: The following are conditions that apply to EDI
invoices:
Invoices must meet the requirements as defined by Topco listed in the
Topco EDI Invoice Mapping section.
Once in production mode, invoices will only be received via EDI. Paper
invoices will not be processed. The supplier may incur a non-compliance
assessment of $92 per paper invoice received by Topco.
Topcos purchase order number on the invoice and the purchase order
must match
Supplier must communicate to Topco any invoice DUNS number or
address change within 30 days of the change
Invalid EDI invoice data may result in an additional assessment
EDI Invoice and Order Mapping information can be found by following the vendor
tab at our website, www.topco.com.
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Topco Associates LLC. Supplier Handbook Page 36 of 44
Gifts and Gratuity Policy
The making or giving of payments, gifts, contributions or other inducements to
any Topco personnel is contrary to Topcos policy unless there is a business
purpose, the amounts expended are reasonable and not lavish, and the
entertainment occurs infrequently. Exceptions to this policy are for items of
nominal value such as memo pads, paperweights, desk calendars and other
similar items. At no times are cash or cash equivalent gifts, such as gift cards or
gift certificates, to be offered.
Please make sure that your salesperson or representative understands Topcos
policy on gifts and that you do not put our employees in the position of having to
refuse gifts, gratuities, or entertainment. Topco appreciates your support.
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Topco Associates LLC. Supplier Handbook Page 37 of 44
Appendix
Product Information Form
Item number:
Item Description
Case Case dimensions:
_____ Height _____ Width _____ Depth Case weight: ______ Pallet configurations: Cases per layer: ______ Layers per pallet: ______ Ship Location:
Street
City/State/Zip:
Phone:
Fax:
Contact Name:
Pickup Location:
Street
City/State/Zip:
Phone:
Fax:
Contact Name:
Can be combined with other products: _____ yes _____ no If yes, list item code and description:
Item Code Product Description
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Topco Associates LLC. Supplier Handbook Page 38 of 44
Supplier Information Form
Supplier Name:
Correspondence Address:
Contact Information: Name:
Contact Information: Address:
Contact Information: Phone/Fax:
Customer Service: Name:
Phone number:
(Remit address or information changes must be submitted on suppliers letterhead.)
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Topco Associates LLC. Supplier Handbook Page 39 of 44
Emergency Contact Information
An emergency is defined as a serious incident where the media or a government agency is involved; a health hazard exists involving your product, etc. Routine business matters, such as late shipments, order changes, etc., do not fall into this category. Supplier Information
Supplier Name:
Street Address:
City, State, Zip:
Telephone:
Fax:
Employee Information
President/General Manager
Name: Emergency #:
Home
Cell
VP Sales Home
Cell
VP Distribution Home
Cell
Private Label Manager Home
Cell
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Topco Associates LLC. Supplier Handbook Page 40 of 44
Case Labeling DOMESTIC PRODUCTS
Topco expects all cases to be labeled with the following information on Length and Width side: See graphic below. A. Package Size: Pack size must be located in the upper left-hand corner of two
panels. Numbers and letters should be the same size. B. Manufacturers UPC Case Code on top right hand corner on length and width
side of the box. C. Topco or retail members brand Food Club, TopCare... D. Product name and description. This must be the same as the name and
description on the consumer label. E. Expiration / Freshness Date:
Cartons requiring an expiration or freshness date must be stated with a MM/DD/YYYY on length and width sides of carton. The expiration date on the carton must match the inner retail unit.
MM/YYYY will be acceptable for HBC items F. Topco Purchase Order number G. 12 Digit Scannable UPC case code (Not UPC Consumer Code) Pallets must be marked as a Mixed Pallet if containing more than one lot, item, or expiration dates. Slip-sheet must be used to separate mixed lot, items, or expiration dates on a pallet.
A) # of inner pks/# of pcs per inner/pk size B) UPC Case Code
C) Insert Topco Brand Name Here
D) Insert Item Description Here
E) Insert EXPIRATION / FRESHNESS DATE: here (when applicable) F) Topco PO #:00000XXXXXXX
G) Scannable Bar UPC Case code (not consumer UPC code)
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Topco Associates LLC. Supplier Handbook Page 41 of 44
Carton Markings IMPORT PRODUCTS
A. Case markings must be printed (imprinted) B. GTIN bar code must be printed on carton, and scannable (stenciled bar
codes are NOT acceptable) C. Product labels are NOT acceptable D. Carton markings must be printed on ALL four side panels of the carton E. Use Black GCMI #90 ink F. Use Sans Serif font (typeface) ONLY G. Print ALL characters in UPPER CASE only H. Use the same size font for all numbers and letters I. NEW item carton markings MUST be approved by Topco Associates LLC
prior to printing* * Re-orders do NOT need to be approved
Pallets must be marked as a Mixed Pallet if containing more than one lot, item, or expiration dates. Slip-sheet must be used to separate mixed lot, items, or expiration dates on
a pallet.
CONTACT FOR IMPORT PRODUCT:
For questions regarding carton markings, contact Bella Levinson at (847) 329-3261 or e-mail [email protected]
# of inner pks/# of pcs per inner/pk size MFR I.D. #: XXXXX CASE ITEM #: XXXXX
Insert Topco Brand Name Here
Insert Item Description Here
Insert EXPIRATION / FRESHNESS DATE: here (when applicable)
Insert MFR LOT #: here (when applicable)
MADE IN (insert county of origin)
TOPCO PO #: 00000XXXXXXX
Insert G-TIN Case Bar Code Here
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Topco Associates LLC. Supplier Handbook Page 42 of 44
Carton Markings IMPORTS Examples: 1) Carton Marking Example:
2) Long and Narrow Carton Marking Example:
G-TIN BAR CODE
EXAMPLE:
Pack Number Item Check
Indicator System Number Digit
Indicator
Manufacturer
Identification
Number
8/12/4PK MFR I.D. #: 11225
CASE ITEM #: 04185
ELECTRIX
AA ALKALINE BATTERIES 4PKEXPIRATION DATE: 05/2015
MADE IN CHINA
TOPCO PO #: 000002956487
8/12/4PK MFR I.D. #: 11225 TOPCO PO #: 000002956487
CASE ITEM #: 04185
ELECTRIX
AA ALKALINE BATTERIES 4PK
EXPIRATION DATE: 05/2015
MADE IN CHINA
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Topco Associates LLC. Supplier Handbook Page 43 of 44
Carton Strength Requirements Import Products: There are two tests used throughout the corrugated industry to determine strength.
Bursting (Mullen) Test refers to the rough treatment and resilience of corrugated material. This test measures the force required to rupture or puncture the face of corrugated board and is measured by a Mullen Tester. It also is indirectly related to the cartons ability to resist external or internal forces and thus to contain and protect a product during shipment. This test is reported in pounds.
Edge Crush Test (ECT) is a newer standard that is a true performance test and is directly correlated to the stacking strength of a carton. ECT is a measure of the edgewise compressive strength or corrugated board. It is measured by compressing a small segment of board on edge between two rigid platens or plates perpendicular to the direction of the flutes until a peak load is established. This is measured in pounds per lineal inch of load bearing edge but is usually reported as an ECT value.
Topco requirements are as follows:
Corrugated Board Strength Equivalencies: Single Wall Corrugated
Bursting Test Minimum Edge Crush
Test
Maximum Suggested Loading Limit Per
Carton
125# 23 ECT 20 lbs.
150# 26 ECT 35 lbs.
175# 29 ECT 50 lbs.
200# 32 ECT 65 lbs.
275# 44 ECT 95 lbs.
350# 55 ECT 120 lbs.
Corrugated Board Strength Equivalencies:
Double Wall Corrugated
Bursting Test Minimum Edge Crush
Test
Maximum Suggested Loading Limit Per
Carton
200# 42 ECT 80 lbs.
275# 48 ECT 100 lbs.
350# 51 ECT 120 lbs.
400# 61 ECT 140 lbs.
500# 71 ECT 160 lbs.
600# 82 ECT 180 lbs.
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Topco Associates LLC. Supplier Handbook Page 44 of 44
The equivalent ECT values are given as a minimum value. Due to the various recipes corrugators use the makeup of each will vary slightly in overall strength. Cases that are subject to severe handling need to have a higher strength. The bursting test will provide a truer measure of rough handling. The supplier is responsible to ensure the case strength will withstand normal handling appropriate for the product.