Guardian

Vendor Communication

Guardian New Systems Go-Live Important Notice to Suppliers

Last Updated: 13-07-2016

Important Notice – New Systems Launch in Guardian

To our Valued Suppliers,

Guardian will go-live with new merchandising and financial systems on 1-Sep-

2016. There will be changes to our data format and operation processes after the

systems go-live. These changes will be stated clearly in this presentation.

Moreover, during the cutover period in the month of August 2016, interruption to

new product creation, new promotions, order placing, deliveries and invoice

submission will be expected.

Therefore, we urge our suppliers to read this presentation carefully. Otherwise,

this may result in payment delay or issues in order receiving etc.

If you have any questions please email to DFSGFeedback@dairy-farm.com.sg

Important Dates to be Mindful

• For Normal Vendor Pg. 4 to 11

• For Consignment Vendor Pg. 4, 5, 10, 11only

Important Date - Vendor, Product, Price and Cost

From 1-Aug-2016 to 31-Aug-2016, The following data-freeze will take place for:

• New product listing • New vendor code • Cost change • Normal retail price change

Vendors are advised to submit any new item listing, potential new vendor

code requirement, cost change and normal retail price change that will be

effective in August-2016 to the Guardian Merchandising team, latest by 25-

July-2016. This will allow us to maintain all changes that need to occur into

the system in advance.

Resume normal after 1-Sep.

Important Date – Supplier Managed Product Range

From 6-Aug-2016 to 31-Aug-2016, no changes to supplier-managed product range will be allowed.

Going forward with the new systems, all supplier-managed product range will

need to be reported to Guardian on a store-by-store basis or store group

basis.

This is due to the new feature of “range control”, which will be in place after

1-Sep-2016, when new systems go-live. When a product is not in-range, no

orders can be placed by the store. Also, we will be measuring the out-of-

stock KPIs for individual stores and therefore, we encourage suppliers to

provide accurate and most up-to-date product range by store to Guardian.

Therefore, we urge all suppliers who have counters or dedicated displays in

Guardian stores to provide the most-up-to-date product range information,

latest by 25-July 2016.

Important Date – Distribution Centre (DC) Blackout

31-Aug-2016 Guardian GDC will be closed for 1 day

Guardian GDC will be closed on 31-Aug-2016 for 1 day and there will be no

activities on that day. There will be no supplier deliveries to DC, and no

deliveries from DC to stores.

Normal GDC operation will resume on 1-Sep-2016.

Important Date – Return to Vendor (RTV)

17-Aug-2016 Last RTV PO issue to Suppliers by Guardian 29-Aug-2016 Last RTV PO collection by Suppliers

All outstanding Return-to-Vendor (RTV) goods will need to be collected from

Guardian DC (DC lines) or direct from Stores (DSP lines) on or before 29-

Aug-2016. So that Guardian can empty the Return Warehouse Location and

prepare for systems go-live.

Any uncollected RTV goods will be disposed of without further notice, and

charged to vendor accordingly.

In order to comply with the 10 business days agreement, the last RTV PO

issued to suppliers by Guardian should be on 17-Aug-2016.

RTV activities will resume normal on 1-Sep after systems go-live.

Important Date – PO Issuing from Guardian to Suppliers

21-Aug-2016 Last DSP PO issue to vendor 25-Aug-2016 Last GDC PO issue to vendor

The ordering team will work with different suppliers on the last delivery date

and determine the last PO issue date. Our deadlines for PO issuance will be

on 21-Aug for DSP POs and 25-Aug for GDC POs.

The above deadlines are soft deadlines. As long as agreement can be made

between the supplier and the store or GDC that they can deliver the POs,

latest by 29-Aug, purchase orders can still be issued after these dates.

Any orders which cannot be delivered by 29-Aug will be cancelled.

Ordering will resume normal by 1-Sep.

Important Date – Distribution Centre (DC) Receiving

29-Aug-2016 (AM) Last receiving date for suppliers deliveries

The last date of GDC or Stores accepting supplier deliveries before our

system go-live will be on 29-Aug-2016.

GDC deliveries will be accepted up to 2pm on 29-Aug-2016.

DSP deliveries will be accepted on 29-Aug-2016 based on normal delivery

receiving hours.

Any orders which cannot be delivered by 29-Aug will be cancelled and new

POs will be raised starting 1-Sep.

Receiving will resume normal on 1-Sep-2016 afternoon.

Important Date – Vendor Invoices Submission

30-Aug-2016 Deadline for invoice submission

All invoices for supplier deliveries received on or before 29-Aug-2016 need to

reach Guardian Finance department by 30-Aug-2016.

Any delay in invoice sending will result in delay of payment.

This is because during the systems go-live, Guardian will need to ensure all

outstanding invoices are matched in the old systems. We will not carry over

any outstanding GRN and invoice information to the new systems.

Will resume normal after 1-Sep-2016.

Important Date – Vendor Portal Blackout Time

31-Aug-2016 6pm to 12am Vendor Portal Blackout for all Banners

On the cutover night, the vendor portal will be down for 6 hours from 6pm to

12am on 31-Aug-2016.

This will apply to all DFSG businesses including Guardian, Giant,

ColdStorage and 7-11.

Please note any invoices that are required to transmit to Giant, ColdStorage

and 7-11 need to be done before 6pm on 31-Aug-2016.

Will resume normal on 1-Sep.

Important Data Format / Information Changes

• For Normal Vendor Pg. 13 – 16

• For Consignment Vendor Pg. 13 – 15

Important Data Changes – Guardian Product Code

Guardian Product Code will change from the existing 6-digit code to 9-digit code

All Guardian item codes with item code number less than 600000 (e.g.

123456) will be padded with 3-digit prefix to comply with the new 9-digit

format (e.g. 151123456).

While all existing item codes from 600000 onwards will have new 9-digit item

code assigned. (e.g. 123456 151000001)

The old and new item code mapping will be available, latest by 1st week of

August. The new codes will be effective from 1-Sep-2016 onwards, please

make sure the information is updated in your internal systems accordingly.

Important Data Changes – Guardian Vendor Code

Guardian Vendor Code will change from the existing 5 alpha-numeric code (e.g. 1234A) to a 8-digit code (e.g. 87654321)

All Guardian vendor codes will change from the existing 5 alpha-numeric code to an 8-

digit code.

Please note that this vendor code change will only apply to the Guardian Vendor code

and DOES NOT affect the Food banners (e.g. Coldstorage, Giant, 7-11).

Therefore, suppliers will be using new vendor code for Guardian and old vendor code

for Giant, Coldstorage and 7-11. While the portal login ID will remain unchanged.

The old and new vendor code mapping will be available, latest by 1st week of August.

The new codes will be effective from 1-Sep-2016 onwards, please make sure the

information is updated in your internal systems accordingly.

Important Data Changes – List Cost and Invoice Cost

List Cost and Invoice Cost will change from the existing 4 decimal places to 2 decimal places

Please note that all product list cost or invoice cost will need to be submitted

in 2 decimal places ONLY.

Any variance will result in rounding and this may have impact to tax

calculation.

Important Data Changes – Guardian Warehouse Code

Guardian Warehouse Code will change from the existing code “08” to “03”

Guardian warehouse code will change from the existing code “08” to “03”.

Therefore, suppliers delivering to our warehouse will need to take note of the change

in our warehouse site code in our purchase orders issued from 1-Sep-2016.

The new Guardian warehouse code will be effective from 1-Sep-2016 onwards, please

make sure the information is updated in your internal systems accordingly.

Other Changes

• For Normal Vendor Pg. 18 - 21

• For Consignment Vendor Pg. 18 - 19

Other Changes – Promotion Rebate Agreement

All Promotion rebates or lump sum monetary support will have a system-generated agreement number for tracking. Agreement number will be shown on the reconciliation in future for easy reference and is available for monthly settlement

Please ensure that you obtain the agreement number from the Category

Managers after an agreement has been reached for promotional trade terms.

On a monthly basis, during the month end rebate settlement, a reconciliation

report will be generated by the system and sent to suppliers through emails

to explain the claims in the debit memo.

The reconciliation report will show the details of the claim for each

agreement number to facilitate the settlement process.

Other Changes – Promotion Rebate Settlement

All Promotion Trade Terms / Agreements will be settled on a current month basis

For example:

promotion cycle # 7 started from 16/07/2016 and end on 12/08/2016. An

agreement had been made between supplier and Guardian on a scan deal

basis, where a 1% rebate will be given to the amount of each sales

transaction.

On the 31/07/2016 (month-end) the system will calculate the rebate amount

for the period 16/07/2016 to 31/07/2016 and charge the vendor for the rebate

based on the current month sales.

While on 31/08/2016 (month-end) the system will calculate the rebate

amount for the period 01/08/2016 to 12/08/2016 and charge the vendor for

the rest of the promotion period.

Other Changes – DSP PO Deliveries

In future, only Guardian system printout Good Receipt Note (GRN) will be recognized as the proof of goods received.

For DSP PO deliveries, vendor must obtain a copy of the Guardian store

system generated GRN as the proof of delivery. The GRN should be

stamped and co-signed by both parties.

We will not accept any co-signed copies of vendor delivery note or vendor

invoices as proof of deliveries.

Other Changes – Debit Note Issuing Frequency

In future, debit note will be sent to vendor on a daily basis instead of monthly basis.

In order to ensure more efficient process for Finance to clear through all debit

memo. Instead of sending monthly debit note, the frequency will increase to

daily.

Portal suppliers are urged to check for new debit notes in portal on daily

basis to avoid backlog.

Key Dates Summary

Key Dates Summary (1/2)

# Data Freeze Period

Notes to Vendor

1 Vendor Master 1 – 31 Aug Make sure all new product, cost change or price change that will occur in August are submitted to Guardian by 25-July for system input before the freeze period.

2 Product Master 1 – 31 Aug

3 Cost Change 1 – 31 Aug

4 Retail Price Change 1 – 31 Aug

5 Planogram (POG) 4 – 31 Aug

6 Store Range (without POG) E.g. Counter, GE etc.

6 - 31 Aug Please provide detail item range list by store for other vendor managed counter or GE.

7 Last RTV PO issue date (both DC and DSP lines)

17 Aug To provide vendor a 10 business days window for collection.

8 Last RTV PO Pick Up date (both DC and DSP lines)

29 Aug Last date for supplier to pick up returned goods is on 29-Aug. Any uncollected returned goods will be written off and debit to vendors.

Key Dates Summary (2/2)

# Data Freeze Period Notes to Vendor

10 Promotion Price Change 29 – 31 Aug

11 Complex Promotion Setup 29 – 31 Aug

12 DC Shut Down 31 Aug DC will be closed for 1 day only.

13 Last Purchase Order Issue (DC Line) 25 Aug No DC PO will be issued after 23-Aug and only resume on 1-Sep-2016 after SAP go-live.

14 Last Day of Goods Receiving (DC Line) 29 Aug 2pm Any DC PO which is not received by 29-Aug will be considered cancelled.

15 Last Purchase Order Issue (DSP Line) 21 Aug Guardian will not issue any DSP PO after 22-Aug and only resume on 1-Sep-2016 after SAP go-live.

16 Last Day of Goods Receiving (DSP Line)

29 Aug Any DSP PO which is not received by 29-Aug will be considered cancelled.

17 Vendor Invoices 30-Aug All vendor invoices must reach Guardian by 30-Aug for payment.

25

Aug. Sep.

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Timeline

System

Go-Live

DC ACTIVITY FREEZE PERIOD

P9 Promotion: Aug.11 - Sep.7 P8 Promotion: Jul.14 - Aug.10

TRADE TERM FREEZE PERIOD

VENDOR FREEZE PERIOD

ARTICLE FREEZE PERIOD (Including Item Master, List Cost, Retail Price)

STORE FREEZE PERIOD

PROMOTION PRICE FREEZE

POG FREEZE

25/7- 29/7

W-5

PROMOTION PRICE FREEZE (For pilot -1)

PROMOTION PRICE FREEZE (For pilot -2)

DC Close Period

Last DSP Ordering (Soft deadline)

Last DSP GR (Hard deadline)

Last RTV PICK UP

DSP Vendor Delivery Lead Time: 7 days

Last DC Ordering (Soft deadline)

Last DC GR (Hard deadline)

DC Vendor Delivery Lead Time: 4 days

Last Invoice Received from portal

Last RTV order issue