Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
Vendor Guide
Sobeys Retail Support Centre (RSC)
      Receiving Guidelines
         (Non-Produce)

          Version 2.4 (Jan 20, 2017)
Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

                                                             Table of Contents
INTRODUCTION .......................................................................................................................................... 4
    OVERVIEW .........................................................................................................................................................4
    CONFIDENTIALITY ..............................................................................................................................................4
SOBEYS INBOUND SHIPMENT STANDARDS........................................................................................ 5
    A)   PALLET REQUIREMENTS ..........................................................................................................................5
      1)   Maximum Pallet Weight ................................................................................................................5
      2)   Pallet Identification (Labelling) ...................................................................................................5
      3)   Compliant Pallet Types .................................................................................................................5
      4)   Product Overhang ..........................................................................................................................6
      5)   Pallet Shifter in Trailer (Lean) ......................................................................................................6
      6)   Securing the Pallet (Stretch Wrap) .............................................................................................7
      7)   Adhesives .........................................................................................................................................7
      8)   Pallet Pattern ...................................................................................................................................7
      9)   Pattern Gap (Holes) Within a Layer............................................................................................8
      10)     Case Orientation ........................................................................................................................9
      11)     Multi-Product Pallet ...................................................................................................................9
      12)     Half Pallet Displays / Display Ready Products .................................................................10
      13)     Type of Cases ...........................................................................................................................10
    B) CASE REQUIREMENTS ...........................................................................................................................11
      1)   Case Strength ................................................................................................................................11
      2)   Best Before Dates .........................................................................................................................11
      3)   Case Bar Codes ............................................................................................................................11
    C) PRIVATE LABEL REQUIREMENTS ...........................................................................................................13
    D) PRODUCT REQUIREMENTS ....................................................................................................................13
    E) PURCHASE ORDER REQUIREMENTS (PO / BILL OF LADING) ................................................................13
SOBEYS INBOUND SHIPMENT POLICIES ............................................................................................ 14
    A)  UNLOADING / LUMPING (SWAMPING).....................................................................................................14
      Vendor Controlled and Sobeys Controlled Loads ...............................................................................14
      Fees (Unloading / Lumping (Swamping)) ........................................................................................14
    B) NON COMPLIANCE .................................................................................................................................15
    C) VENDOR RETURNS.................................................................................................................................15
      Non-Produce ...........................................................................................................................................15
SCHEDULES .............................................................................................................................................. 16
    SCHEDULE 1 – NON-COMPLIANCE FEES (PALLET CONFIGURATION) ............................................................16
    SCHEDULE 2 – NON-COMPLIANCE FEES (APPOINTMENTS) ...........................................................................17
    SCHEDULE 3 – FEES (UNLOADING) ................................................................................................................18
APPENDICES ............................................................................................................................................. 19
    DELIVERY INSTRUCTIONS ................................................................................................................................19
      1)    Appointment Scheduling ............................................................................................................19
      3)    Unloading Mode ............................................................................................................................19
      4)    Security Policies at Sobeys RSC’s ..........................................................................................20
      5)    Proof of Delivery Merge with Missing BOL ...........................................................................21
    RETAIL SUPPORT CENTRE (RSC) LOCATIONS/CONTACT INFORMATION ......................................................22
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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

  RETAIL SUPPORT CENTRES (SPECIAL REQUIREMENTS)...............................................................................23
    Automated (Dry / Fresh / Frozen) ..........................................................................................................23
    Weight per Layer ....................................................................................................................................24
    Maximum Case Size ..............................................................................................................................24
    Minimum Case Size ...............................................................................................................................25
    Height to Width Ratio ............................................................................................................................25
    Length to Width Ratio ...........................................................................................................................26
    Packaging Type ......................................................................................................................................26
    Corrugated Cardboard Cases .............................................................................................................26
    Corrugated Cardboard Trays ..............................................................................................................28
    Shrink Overwrap Systems ...................................................................................................................29
    Bags ...........................................................................................................................................................29
  DAIRY / MEAT ..................................................................................................................................................31
    Best Before Dates (Required Information Examples) ...................................................................31
    Detailed Weight List ..............................................................................................................................32
    Compliant Weight Labelling ................................................................................................................33

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

                                Introduction

                                          Overview

The purpose of this document is to illustrate the requirements, specifications,
policies and rules pertaining to all inbound loads in order to increase the receiving
efficiencies of the Sobeys Retail Support Centres. As well, it will also detail the pallet
and case characteristics necessary for all inbound products in order to optimize the
receiving operations in all Sobeys Retail Support Centres.

Respecting the requirements in this guide will help us reduce the associated
handling and administrative costs that will ultimately allow both parties to share in
the benefits and mutually grow the business relationship.

Sobeys distribution network is comprised of both conventional and automated Retail
Support Centres. In the general section of this guide, you will find specifications,
requirements, and policies that apply to all of our Retail Support Centres. If there is
something unique to one or more Retail Support Centres, that will also be illustrated
in a reference section outlining all the specific requirements that will apply to that
site.

Please make sure to share the information in this guide with anyone in your
organization who could be responsible for the shipping of goods to any of the
Sobeys Retail Support Centres.

If you have any questions about the information in this guide, please contact the
Inbound Receiving Manager of the concerned Retail Support Centre.

                                      Confidentiality

This document is the property of Sobeys Capital Inc. Its content is strictly
confidential and is for the sole use of the intended recipient (s). Any unauthorized
review, use, disclosure, or distribution is strictly prohibited.

.

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Sobeys Inbound Shipment Standards
   A) Pallet Requirements

       The pallets must meet the following requirements at receiving to avoid non-
       compliance fees.

           1) Maximum Pallet Weight

               Pallet weight must not exceed 1136 kg including the wooden pallet.

               Automated Facilities
               Pallet weight must not exceed 1180 kg; this does not include the
               wooden pallet.

           2) Pallet Identification (Labelling)

               If there is more than one delivery in a trailer, the Sobeys destined
               pallet needs to be properly identified and reachable at all time without
               moving the other customers pallets.

               To avoid potential issues when the system de-palletizes cases off a
               pallet, the vendor should ensure all pallet labels are affixed on an
               individual case of the pallet. A label that connects two or more cases
               could potentially compromise the depalletization process and would
               then require a manual intervention by our technicians. Non-compliance
               fees would be charged in such a situation.

               Pallets with plastic overwraps to stabilize their content should have a
               label affixed to the plastic overwrap

               Dairy / Dry / Meat / Frozen

               To optimize the RF receiving process, Sobeys requires UCC-128/GS1-
               128 bar codes on each case. Please see case bar code section for
               more details.

           3) Compliant Pallet Types

               Products need to be received on either CHEP or PECO pallets which
               are required to be in excellent condition. A vendor may change the

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

               pallet type if authorized in advance by the Inbound Receiving Manager
               of the concerned Retail Support Centre.
               Automated Facilities
               Since all pallets used in automation are identified and linked to a
               system pallet, it is important to inform Sobeys of any changes to avoid
               unnecessary handling procedures and non-compliance fees.

           4) Product Overhang

               Pallet overhang is when the layer of products overhangs one of the
               four edges of the pallet. (Figure 1)

                Figure 1                         Débordement positif

               The overhang of products cannot be greater than 5 cm (1.97 inch) total
               for all sides of the pallet (if there is 2cm on one side you cannot exceed
               3cm on other side or 1cm on each of the other side). This overhang
               will take into consideration the use of a slip sheet that exceeds 5
               cm each side of the pallet. The layer of product must be centered on
               the pallet. This element is important in order to be able to receive
               directly without handling and to avoid non-compliance fees.

           5) Pallet Shifter in Trailer (Lean)

               The vendor must ensure that the pallets are properly secured to
               guarantee stability while transporting throughout the supply chain and
               the security of our staff when the products are moved in our facility.
               Products leaning (Figure 2) on a pallet are a sign of pallet instability.
               Pallets may be refused and non-compliance fees may apply.
               Automated Facilities
               The lean of the pallet counts in the calculation of the overhang. In most
               cases, a leaning pallet will have to be corrected prior to induction and
               non compliance fees will apply.
                Débordement positif

               Figure 2

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

           6) Securing the Pallet (Stretch Wrap)

               Stretch wrap must be applied tightly, ensuring that the end of the wrap
               is secured to the pallet. Other types of wrap could be considered.
               Please contact the Inbound Receiving Manager of the concerned
               Retail Support Centre for authorization.

               Automated Facilities
               Please see the RSC Special Requirements section for details.

           7) Adhesives
              Adhesives such as glue must not be used between the different layers
              of a pallet. Pallet stability must be achieved by other means.
              Exceptions are to be managed, and authorized, on a site by site basis
              prior to arrival.

               If packing tape is used to secure the flaps of a case, it must be
               properly affixed so that it does not adhere to the other cases.

           8) Pallet Pattern

               Each horizontal layer of a pallet must not interlock between layers. The
               example in Figure 3 shows two cases oriented sideways in layers 1
               and 2, and the same on layers 3 and 4. These cases interlock on two
               different layers; this technique is not acceptable at any of Sobeys
               Retail Support Centres.

                   Figure 3

               In order to stabilize the pallet, the layers may be built using an
               interlocking pattern as per the figure below (Figure 4). Any type of
               layering scheme is acceptable (with the exception of the scheme
               shown above in Figure 3) but the width and length of each layer must
               remain identical.

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

                

                       Figure 4

               An acceptable pallet pattern is a pattern in which the number of boxes
               per row and their layout is constant from layer to layer. It is possible to
               cross the layer.
               Automated Facilities
               Please see RSC Special Requirements section for details.

           9) Pattern Gap (Holes) Within a Layer

               You may use a pallet pattern with a gap within a layer. The gap must
               be consistent from the bottom to the top of the pallet. Please make
               sure to not fill the gap with anything.
               Automated Facilities
               The total surface area of the gap cannot total more than 300cm 2
               (46.5in2) on each layer. A larger total surface area may be acceptable
               but it must receive the approval of the Inbound Receiving Manager of
               the automated Retail Support Centre.

                                                   
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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

           10) Case Orientation

               Cases must be oriented on the pallet with their maximum compression
               strength vertically. This will ensure that these cases will be on their
               correct side when shipped to the stores and will be able to support the
               weight that may be placed on it. This will not apply if, and only if, the
               strength and the quality of the shipping case will not allow it.

                                                 (Vers le haut)

                                                                         (Vers le haut)

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                                                                                                                                                                               (Vers le haut)
                                                        (Vers le haut)

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                                                                                                                                                                               (Vers le haut)
                                      Figure 5

           11) Multi-Product Pallet

               Any product received at one of the Sobeys Retail Support Centres
               must be placed individually on a CHEP or PECO pallet. A vendor pallet
               with multiple products on the same pallet will require rework and, as
               such, will subject to a $35 per vendor pallet fee.

               Note that this practice will be considered only for products that
               were purchased per layer quantity. If the purchase quantity is less
               than a layer for one or more products, multi-product pallets will
               be allowed.

                        

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Vendor Guide Sobeys Retail Support Centre (RSC) Receiving Guidelines (Non-Produce) - Food & Consumer Products of Canada
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

           12) Half Pallet Displays / Display Ready Products

                  No cases can be overhanging from pallets
                  Pallets are to be wrapped in plastic
                  Rigid corner posts are required on all four sides of pallets
                  Two rigid corner posts are required on top part of pallets
                  Nylon straps fastening products into a pallet are required - It should
                   be noted that the straps are to be inserted in the pallet holes
                  All half-pallets are to be combined and shipped in pair on CPC or
                   CHEP Standard pallets
                  All displays exceeding 25 kilograms need to be shipped on half-
                   pallets and are required to respect the 6 points above

               Should any of the above-mentioned not be adhered to, Sobeys
               will have the right to refuse your merchandise or reach an
               agreement for the rework of the shipment.

           13) Type of Cases

               The chosen type of case must fit the product and have enough
               structural integrity to sustain the weight and stress that could occur
               during handling, thus avoiding any product damage.

               Automated Facilities
               Please see RSC Special Requirements section for details specific to
               loads destined for Sobeys automated facilities.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

   B) Case Requirements
       1) Case Strength

           The case must have sufficient compression strength to resist deflection
           and humidity variations throughout the supply chain.

       2) Best Before Dates

           Best before dates must be printed on each case. Sobeys retains the right
           to refuse any cases at time of receiving that do not respect Sobeys shelf
           life requirements. Please contact your Category Manager for Best Before
           policy specifics.

           Dairy
           Please see the Dairy section for details.

       3) Case Bar Codes
           Dry / Dairy / Meat / Frozen

           Case bar codes must follow the ECCNet/GS-1+UCC128/GS1-128
           Canada requirements for particular products that a case contains. For
           further details related to case bar codes, please refer to www.gs1ca.org

           Only the bar code referring to a product in a case must be printed on the
           packaging. Multiple bar codes such as check marks and others only
           detectable by the human eye will not be accepted. If some of your carton
           packaging with pre-printed bar codes were used for several different
           products, unused bar codes should be crossed out to be made unreadable
           by a scanner.

           All bar codes must be both legible and scannable. If the bar code cannot
           be scanned, Sobeys retains the right to refuse the shipment and allocate
           all incurred costs, including non-compliance fees, back to the originating
           vendor.

           Effective May 8, 2016 Sobeys requires that all vendors improve the
           information on the item label to meet UCC128/GS1-128 specifications.
           The main reasons are the followings:
                Greater efficiency inbound
                Rigorous monitoring on product expiration date (FEFO)
                Improved product traceability (Batch)
                Random Weight (if applicable)

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

           Required fields on the UCC128/GS1-128 label:

                                      Data
Code         Description
                                    Length

          Global Trade Item
 01                                    14
           Number (GTIN)

                                  variable, up
 10       Batch/Lot Number
                                     to 20

          Best Before Date
 15                                    6
              (YYMMDD)

Below are the required fields on the UCC128/GS1-128 label (Random Weight):

Code                              Description                     Data length

 01                    Global Trade Item Number (GTIN)                14

 15                      Best Before Date (YYMMDD)                     6

3102                    Random Weight Kg (2 Decimal)                   6

 21                              Serial Number                 Variable (up to 9)

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

   C) Private Label Requirements

       Additional requirements for Private Label Products will be provided by your
       Sobeys contacts. Should a discrepancy be noted between the Sobeys
       Corporate Brands packaging program and this document, the information
       contained within this document will prevail.

   D) Product Requirements

       All products received in our Retail Support Centres are verified for quality and
       temperature control. If the inbound product is not in compliance, the load may
       be subject to refusal and/or penalties.

       Product must be compliant with the requirements set by the buyer when the
       purchase order is placed.

       The respect of these requirements is important. If requirements are not met,
       non compliance fees will apply.

       Please refer to Schedule 1 for an overview of applicable fees and/or charges.

   E) Purchase Order Requirements (PO / Bill of Lading)

       The purchase order (and bill of lading) must reflect exactly what is in the
       trailer and/or the order itself. As well, the associated paperwork must contain
       the purchase order number.

       The driver must have the paperwork in his possession when he arrives to one
       of the Sobeys facilities. It is the driver’s responsibility to timestamp the BOL
       upon arrival at the RSC using the time clock located at the
       appointment/receiving window.

       Sobeys will not accept any back orders. If there is a back order, it will be
       processed as a new order and a new purchase order will need to be
       generated. The carrier will then be required to make another appointment.

       A purchase order needs to be loaded in one trailer only. Sobeys will not
       accept a purchase order split over multiple trailers.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

 Sobeys Inbound Shipment Policies
   A) Unloading / Lumping (Swamping)
       Vendor Controlled and Sobeys Controlled Loads

       Sobeys will make any and all necessary provisions to supply all actual
       unloading services to move the product from the inbound trailer (s) to the
       receiving dock for all Sobeys controlled and vendor controlled loads.

       As well Sobeys will make all arrangements and provisions for all necessary
       lumping (swamping) services.

       Fees (Unloading / Lumping (Swamping))

       Sobeys will charge a fee for the provision of unloading/lumping services.

       This fee structure will apply to both vendor controlled, as well as Sobeys
       controlled, inbound loads.
       As well, vendor cross-docked loads will also be subject to unloading fees.

       A reduced unloading fee will be charged for straight pull style inbound trailer
       loads, defined as one product per trailer containing zero touch vendor pallets.

       Please refer to Schedule 1 for an overview of applicable fees and/or charges.

       Note that the fee will be administered through the issuance of a debit note.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

   B) Non Compliance

       Non compliance fees will be applicable to both vendor, and Sobeys controlled
       loads. Depending on the non compliance issue, Sobeys will invoke a penalty
       fee, or fees, for any non compliance related matters.

       Non-compliance will apply to inbound load configuration and integrity as well
       as appointment related aspects.

       Please refer to Schedule 1 for an overview of applicable fees and/or charges.

       Note that vendor cross-docked loads will also be subject to non-compliance
       fees.

   C) Vendor Returns

       Non-Produce
       A period of one week is given for a vendor to make an appointment and pick
       up all product designated for return.

       The time and date scheduled to pick-up the stock has to be respected. If, for
       some reason, you are not be able to attend the scheduled appointment, a 48-
       hour grace period may be granted to pick-up the stock (24 hours for
       perishable commodities). But, this will only be granted if the carrier or vendor
       calls the destination RSC to provide an update and a reason for the “no
       show”.

       Please refer to Schedule 1 for an overview of applicable fees and/or charges.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

                                  Schedules
Schedule 1 – Non-Compliance Fees (Pallet Configuration)

       Non-Compliance (Pallet Configuration)

     $35 per non-compliant pallet
   + $250 per purchase order
   + $250 per previous fines up to $2000

Notes:
   1)      All fees will be billed directly to the corresponding vendor

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Schedule 2 – Non-Compliance Fees (Appointments)

       Non-Compliance (Appointments)

       $500 for 0-4 hours late
       $1000 over 4 hours late or No Show

Notes
   1)      All fees will be billed directly to the corresponding vendor

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

     Schedule 3 – Fees (Unloading)

Unloading Fees

                                                                        1801-              Straight
  Case Count      1-25      26-100      101-300 301-600 601-1800                2401-+++
                                                                        2400                 Pull
Unloading Fee $11.46        $22.66      $62.00        $87.00   $122.00 $158.00 $163.00     $87.00

     Notes:

        1) Straight pull style inbound trailer loads are to be defined as one product
           per trailer containing zero touch vendor pallets.

        2) All unloading fees will be determined by the number of cases per vendor
           purchase order

        3) All fees will be billed directly to the corresponding vendor

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

                                Appendices
Delivery Instructions

Note that it is the responsibility of the vendor to ensure that the carriers are
aware of this policy

1) Appointment Scheduling
     o For Sobeys RSC’s currently using the C3 platform to generate inbound
        appointments, please access the web portal to make an appointment.
        Otherwise, please contact the RSC directly to make an appointment.
     o An appointment must be taken two (2) business days before the delivery
        due date
     o Contact info can be found in the Master RSC List which is located in the
        appendix

2) Respect of Appointment

   The supplier is responsible for the choice of the carrier and its actions. As such,
   Sobeys will only trade/deal/exchange with the vendor regarding the following
   policy.
   Note that it is the vendor’s responsibility to inform the carrier.

   The arrival checkpoint is the appointment or receiving office at the destination
   Retail Support Centre; NOT THE SECURITY GATE.
   Be aware that it could take up to 10 minutes from the security gate to the
   appointment office.

   A vendor’s designated carrier must be available to deliver 24 hours/7days.

   A broken trailer with physical or mechanical damages, too dirty or releasing
   bad odors could be refused (and considered as a “No Show”) at reception for
   health and safety reasons and/or for failing to comply with the standards
   established by the organization for food safety.

3) Unloading Mode
      o Your shipments will be unloaded during the appointment (“live unload”)
        unless carrier or vendor requests a “Drop trailer” exemption
      o Driver will leave the Sobeys RSC with the trailer that was used for the
        shipment

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

4) Security Policies at Sobeys RSC’s

       Driver must obey all signage located on Sobeys properties at all times
       Driver not to exceed posted speed limit
       Drivers must yield to pedestrians at all time
       Drivers must wear a reflective jacket at all time when walking on Sobeys
        properties. Driver will also have to limit their movement solely to work related
        activities
       It is strictly prohibited to throw out anything out in the yard. (wood, cardboard,
        garbage...)
       Drivers must respect parking area
       It is strictly prohibited to back up near a pedestrian or another driver who is
        doing the inspection of his truck and/or trailer
       Drivers must drive with the flashing lights on at all time in the yard
       Drivers to honk 2x prior to backing into doors
       In case of evacuation (fire alarm, gas leak...) vehicle traffic is prohibited
       Drivers are not allowed on the dock area unless authorized in advance by
        Sobeys
       Drivers are not allowed to use any mobile handling equipment or dock
        controls

   Arrival of a trailer to the dock

       Driver must provide shipping document to the receiving clerk
       Driver must have received the authorization from the security guard (if
        applicable) or the reception clerk before backing up to the dock
       Driver must back up the trailer by himself and place the wheel chock when
        needed

   Trailer leaving the dock

       Driver must have received the authorization from the receiving clerk before
        leaving the dock
       Driver must have received the bill of lading before leaving the dock
       Driver must remove the wheel chock by himself
       Driver can only leave the dock when he sees the flashing green light

   Driver cannot leave the dock if the above conditions are not respected.

   Drivers must agree to the above conditions. They understand that if they do
   not respect these conditions, Sobeys retains the right to eject the driver
   from its property and may also deny any future access to the yard for this
   driver.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

5) Proof of Delivery Merge with Missing BOL

Carriers are responsible for all merchandise entrusted to them. As such, drivers are
required to recover all proof of delivery documentation prior to leaving the Sobeys
RSC.

A charge will be applied if Sobeys has to obtain, or provide, a proof of delivery copy
if not supplied by the driver.

Quebec Region:
The request must be made to: Gestiondesreclamations@sobeys.com

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

              Retail Support Centre (RSC) Locations/Contact Information

                                                                                                                                                     Postal
        City          Prov                   Address                        Phone           Fax Number                          E-mail               Code
   North Saanich       BC     1893 Mills Road                           250-483-1709              n/a         Z#TFReceivingVAARSC@thriftyfoods.com V8L 1W7
       Surrey          BC     #103-5355-152nd street                    604-937-1290        778-571-2139                                           V3S 5A5
      Langley          BC     9385 - 200 Street                         604-881-8301        604-881-1211                                           V1M 3A7
       Surrey          BC     3023 - 188 Street                         604-881-8341        604-881-1212                                           V3S 9V5
     Edmonton          AB     12910 - 156 Street N.W.                 Dry: 780-342-3862   Dry: 780-451-1698        rscgroceryreceiving@sobeys.com   T5V 1E9
      Calgary          AB     3440 - 56 AVENUE SE                       403-720-4506        403-279-1874                                           T2C 2C3
      Airdrie          AB     Rocky View #44                        587-755-5564 ext 6253         n/a                                               T4A 0P9
      Airdrie          AB     Rocky View #44                        587-755-5564 ext 6253         n/a                                               T4A 0P9
     Winnipeg          MB     1800 Inkster Boulevard                    204-631-7317        204-694-5139             rsc.winnipeg@sobeys.com        R3C 3J6
     Winnipeg          MB     1265 EMPRESS STREET                                                 See One Network Below                            R3E 3N9
       Milton          ON     2701 High Point Dr.                       905-876-2100        905-876-2016                                            L9T 5G5
      Whitby           ON     100 Nordeagle Ave.                        905-665-9318        905-665-3954                                            L1N 9S1
     Vaughan           ON     8265 Huntington Road                      905-265-1135        905-265-1720                                           L4H 0W6
       Anjou           QC     9001 du Parcours                          514-493-1717        514-493-1797                                            H1J 2Y1
    Boucherville       QC     1500 Blvd Montarville                     514-324-1010        450-655-2019                                            J4B 5Y3
      Montreal         QC     11281 Boul Albert Hudon                   514-324-1010        514-324-8180                                            H1G 3J5
   Trois Rivieres      QC     3000, rue Tebbutt                         819-372-1010        819-372-6683                                           G9C 0B6
      Quebec           QC     950 Avenue Galilee                        418-681-1922        418-681-9776                                           G1P 4B7
    Terrebonne         QC     1101 boulevard de la Piniere              450-492-0010        450-492-9523                                           H1A 2K6
      Debert           NS     246 Lancaster Drive, Box 237              902-662-2132        902-662-2146                                           B0M 1G0
Grand Falls-Windsor    NF     66 Hardy Ave                              709-292-8225        709-292-8291                                            A2A 2T9
     Thorburn          NS     181 Leil Lane                             902-922-3003        902-922-3218                                           B0K 1W0
     Middleton         NS     12827 Lower Main Street                   902-825-6497        902-825-6785                                           B0S 1P0
     Oromocto          NB     1 Lewis St., Box 320                      506-357-9831        506-357-1844                                           E2V 4K5
     St. Johns         NF     63 Glencoe Drive (Donovans Ind. Park)     709-748-7036        709-364-7832                                           A1N 2C7
     Stellarton        NS     105 North Foord St.                       902-752-8371        902-752-3661                                           B0K 1S0

              Note : for those RSC’s currently on the C3 dock appointment scheduling tool, you
              must access the following web portal to make an appointment :

                      1) Quebec Region

                         To make an appointment go to:

                             https://www.c3reservations.com/sobeys/

                      2) West Region

                         To make an appointment go to:

                             www.onenetwork.com

                         If you are not a member or need assistance the attached One Network
                         Appointment Request Form will need to be filled out and submitted to:

                                canada.appointment@sobeys.com.

                         Note: appointments must be made through One Network 24 hours in advance
                         of the PO due date.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Retail Support Centres (Special Requirements)

Automated (Dry / Fresh / Frozen)

The Sobeys Terrebonne, Vaughan, and Rockyview Retail Support Centres operate
a highly automated system from Witron Automation Technology. This system
enables Sobeys to receive and distribute our vendor products as well as process
and build pallets for store delivery. It is able to build pallets for the specific layout of
our large affiliate and corporate stores to increase efficiency.

Depending on the level of compatibility with our systems, products will be processed
using three different physical levels of automation flows:

      Fully Automated: This process uses the highest amount of automation.
       Products that meet the criteria necessary to be processed within this system
       will be:
           o Stored in an automated high bay warehouse
           o De-palletized automatically using “layer pickers” when the product is
               ordered by a store
           o Re-palletized on a multi-product store order pallet

      Pallet Automation Only: This process will use automation to locate and
       retrieve vendor pallets in the high bay warehouse and will involve a manual
       traditional system for store selection. This system is considered a backup to
       the fully automated system for products that do not meet the automated
       criteria set in this manual.

      No Automation: This process is a manual storage and picking system where
       pallets are put away and store orders are selected manually. This system will
       enable us to process special high volume items and products with physical
       limitations that cannot be handled by the automated equipment in the high
       bay warehouse.

In order to take full advantage of the speed, precision, accuracy and benefits of the
automation, it is extremely important for pallet and case characteristics of a SKU
remain the same between receipts. It is essential that the destination automated
Retail Support Centre be made aware of any changes prior to new receipts.
Please contact the Inbound Receiving Manager of the destination automated Retail
Support Centre for any questions or any modifications related to this document.

                                                                                   Page | 23
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Weight per Layer

The total weight of a layer should not exceed 250 kilograms (635 pounds).

                                                Layer weight = 250kg.

                                                Layer weight = 250kg.

                                                Layer weight = 250kg.

                                           Total product weight = 750 kg.
                                                 (max allowable 1180 kg.)

Figure 6

*Note that this maximum allowable weight does not include the pallet weight

Maximum Case Size

In order for the pallets to be introduced into the automation at receiving, the product
cases must fit within the following strict guidelines.

The case size must be no more than :
                                                400 mm

                                       .
                                  kg
                             25

                                       m
                                 0m
                            66

           460 mm

Figure 7

          Width cannot exceed a maximum of 460 mm (18.11 inches)
          Length cannot exceed a maximum of 660 mm (25.98 inches)
          Height cannot exceed a maximum of 400 mm (15.75 inches)
          Weight cannot exceed a maximum of 25 kg (55.12 pounds)

Any attributes greater than these will cause the product to fail the test. In rare
circumstances, the case may be re-oriented on its side in order to pass the
maximum size thresholds.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Minimum Case Size
To introduce an item in the system and for it to be fully automated, the following are
minimum thresholds associated to a case:

                                        50 mm
                                    m
                               0m
                          15

           100 mm

Figure 8

          Width must be of a minimum of 100 mm (3.94 inches)
          Length must be of a minimum of 150 mm (5.91 inches)
          Height must be of a minimum of 50 mm (1.97 inches)

Any product with attributes under these minimum case sizes will not be fully
automated.

Height to Width Ratio

In order to confirm that a product is stable in a vertical position, the system uses a
ratio between the height and width of a case. The height to width ratio must be less
than 1.7.

Example:
Height = 50 mm
Width = 100 mm

Height/Width=Ratio 50/100=0.5 Acceptable

In rare circumstances, the acceptable ratio may be elevated to 2.2 with prior
approval from the appropriate RSC.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Length to Width Ratio

In order to ensure a product can be pushed by its end in a straight line, the system
has a maximum tolerance between the width and the length of a case. The
acceptable value restricts a case length to being no more than four times the width
of that case.

Example:
Width = 100 mm
Length = 150 mm

Length/Width = Ratio           150/100=1.5 Acceptable

Packaging Type

Retail units are packaged in different type of cases. To be fully automated, your
packaging has to be part of this following list of acceptable packaging types:

          Corrugated Cardboard Cases
          Corrugated Cardboard Cases with holes, (top, bottom or both)
          Corrugated Cardboard trays
          Corrugated Cardboard trays with shrink wrap
          Shrink wrap cases.

Corrugated Cardboard Cases

Cardboard cases remain our first choice as they are most effective especially in
transporting retail units throughout the automation. This is also the packaging that
causes the least impact to the automated system.

The flap of the cases must be properly secured with sufficient packing tape or glue
to:
     successfully contain the retail units from falling through the bottom, when the
       product is grabbed from its sides
     keep the box closed if downward pressure is applied to the top (at the centre
       of the case); and
     maintain packaging integrity throughout the supply chain

For cases with perforated flaps which are removable for display purposes at the
store level, the removable top must be able to withstand the force of handling the
case by its removable flap without compromising the integrity of the packaging.

                                                                            Page | 26
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Examples of unacceptable packaging:

Top of the case is unsecured.

The flap used to secure retail units is loose

Flaps are unsecured
                                                 Page | 27
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Case lacks sufficient support to contain retail units

Corrugated Cardboard Trays

Corrugated cardboard trays without any other means of securing retail units are not
accepted because as they are a cause for breakage.

Unacceptable tray because units inside are not secured

Such cardboard trays may be accepted in rare circumstances where the product is
secured safely by friction or tension to the cardboard tray and with prior approval by
the receiving automated Retail Support Centre.

Corrugated cardboard trays with shrink wrap are recommended and are an
alternative to the cardboard tray.

                                                                             Page | 28
SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Shrink Overwrap Systems

Shrink wrap cases are acceptable when they are supported by a corrugated
cardboard tray.

Example of a tray that was unable to hold one unit of can

If the shrink wrap is open-ended (such as the example above), the shrink wrap must
be of a certain strength to keep its tension when pulled and dragged on a pallet. The
shrink wrap must not be loose on any sides of the case.

Retail units may be shrink wrapped together in order to form a case if the shrink
wrap is strong enough to support the retail units in a rectangular shape (resist
deflection or deformation) while protecting its contents.

Bags

Bags or pouches should be transported in cardboard cases or in a supported shrink
over-wrap. The structural integrity of a product, bag and shrink wrap must be
sufficient to tolerate a load placed above it without deflection or deformation while
keeping the shipping case rectangular (see case strength section for details).

The above picture shows containers that are unacceptable for automation as they do not properly contain retail
units and are not rectangular in shape. This example shows bags that require a tray; if not in a tray, products
should be held tighter in order to stop deflection.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

  
Example of a good case with bags securely kept within the shrink wrap by using a tray and
shrink wrap of sufficient gauge or tightness to maintain structural integrity throughout the
supply chain.

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Dairy / Meat

Best Before Dates (Required Information Examples)

The supplier must provide clear information regarding the best before dates of its
product. Please see examples below:

Example 1:

Example 2:

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Detailed Weight List

For some cheese products (weight billed), the supplier must give the receiving Retail
Support Centre a detailed check list. This list must contain the purchase order
number, the delivery date, the Sobeys product number, the complete description of
the product, the weight of the selling unit, the weight sub-total for each product and
the weight of the whole order.

If a product is ship on multiple pallets, each pallet must clearly indicate the weight of
the product per case on that skid. (See examples below)

Example 1:

Example 2:

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SOBEYS CAPITAL INC. – RSC Receiving Guidelines

Compliant Weight Labelling

As of September 2016, Sobeys will require the cheeses suppliers to have their
cases identified with UCC128/ESG128 compliant stickers. This will help us to
manage the best before dates of these products and also help the billing process
when we are selling these products to our affiliated stores. (See example below).

Cheese Label

Meat Labels

                                                                         Page | 33
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