Containerboard & Kraft Warehouse Standards & … SOP_july2017.pdfBring awareness to continually...

©2017 Georgia-Pacific Containerboard LLC. Confidential and Proprietary Information. Do not distribute or copy without prior consent. All rights reserved. | 1

Containerboard & Kraft Warehouse Standards & Guidancev. 2017


This material is the property of Georgia-Pacific Containerboard LLC. The material contained herein represents substantial creative

effort and may include trade secrets, confidential information, and other proprietary concepts, techniques, ideas and expressions.

This material may not be reproduced, altered or transmitted in any form or by any means (including, without limitation, electronic,

mechanical, photocopying, or recording means) or in connection with any information storage or retrieval system, and may not be

used in any manner whatsoever, without the express written consent of Georgia-Pacific Containerboard LLC. All trademarks are

owned or licensed to Georgia-Pacific Containerboard LLC. Your possession of this material constitutes your acceptance of these

conditions. If you do not agree with these conditions, immediately return the material to Georgia-Pacific Containerboard LLC.

Confidentiality


Table of ContentsPart 1 – Introduction1. Goals of this document 5

Part 2 – Product Stewardship, Quality, Housekeeping, Security1. GP Containerboard & Kraft Expectations 72. The Perfect Order 83. Vendor Ownership & Accountability 9

Part 3 – Quality Control1. Product uses 112. What to Watch Out For 123. Housekeeping General Expectations 13

Part 4 – Facility Conditions1. Handling and Storage Conditions 152. Material Handling Equipment (MHE) Requirements 163. Housekeeping Expectations 174. Housekeeping Best Practices 185. Container / Dry Van Inspection Procedure 216. Rail Car Inspection 25

Part 5 – Handling1. Handling and Unloading Guidelines 272. Unloading Containerboard & Kraft Rolls 28

Part 6 – Storage1. Storage Guidelines 302. Storing GP Containerboard & Kraft 313. Inbound and Outbound 324. Example Shipping Manifest 335. Example BOL 34

Part 7 – Damage1. Criteria for Reporting Damage 362. Identifying and Reporting Roll Damage 373. Examples - CAN ship vs DO NOT ship 394. Notification of Non-conforming / Damaged Product 415. IR Damage: Excel Form 426. Port Warehouses – Damage Process 437. International / Bonded Warehouses – Damage Process 448. Rail Damage Procedure 459. Railroad Contact Information 46

Part 8 – Repair1. Roll Repair Process 482. Example of GP Containerboard Label 49

Part 9 – Customer Service1. Customer Service 51

Part 10 – EDI Set-Up1. EDI Set-Up Guidelines 532. EDI Systems Flow 543. EDI Profile 55

Part 11 – Inventory Management1. End of the Month Inventory Procedure 57

Part 12 – Supplier Performance1. Supplier Performance 592. Quarterly Review Agenda 603. Warehouse On-Site Visit Evaluation Forms 61

Part 13 – Invoicing & Payment1. Invoicing and Payment Terms 642. Invoicing Instructions 65

Part 14 – Vendor Set-Up1. Vendor Set-Up and Address / Name Changes 672. Truck Transportation 68

Part 15 – Physical Audits1. Reconciliations and Audits 702. Physical Inventory Audit Procedure 713. Timing of Inventory / Cutoff Procedures 724. Physical Location Preparation 735. Team Selection 746. Process Physical Inventory 757. Forms and Recording of Information 768. Count Sheet Template 779. Reconciliation 78

Part 16 – Training & Compliance1. Timing and Documentation 80

Part 17 – Contacts1. Escalation Path – Management Responsibility 82


Introduction

Part 1


1. Quality is EVERYONE’S business. This document should be understood in it’s entirety.

2. We want to help you understand how our success is directly related to increasing customer loyalty and supply chain excellence.

3. Bring awareness to continually rising customer expectations within the various industries that we serve.

4. To ensure that GP sets the highest market standards for our product, regardless of facility, warehouse or transport mode involved.

5. To illustrate how to handle, store, repair and ship our product to meet or exceed customer expectations

6. To assist vendors and facilities in reaching and / or maintaining superior standards that are vital to doing business with GP

7. To help us produce, ship and deliver a SUPERIOR product to our customers.

8. To illustrate how our success is an extension of your operational success.

Goals of this document


Product Stewardship, Quality, Housekeeping, SecurityPart 2


1. A defective product is a broken promise to our customer.

2. Superior service is achieved when the customer is not affected by any defect in the product itself.

3. We must continually enhance our capabilities and optimize our resources.

4. We must do everything possible to eliminate waste from the supply chain.

5. We expect the same high-standards from our partners as we do ourselves . A product with defects is not a product we want our customers to receive.

6. Safety and Integrity are key to attaining a superior supply chain.

7. Make sure that training, communication and knowledge sharing is constant and evolving.

GP Containerboard & Kraft Expectations


The Perfect Order

Perfect Order Fulfillment (Weighted avg. of below)

On-Time(To Request and/or

Commit)

Delivery/Ship Time= +/- Tolerance

CustomerRequest Date

Date of ActualDelivery

AcceptableTolerance

Right Quantity (Fill Rate)

Delivered Quantity =Cust. Req. Quantity

= +/-Tolerance

Customer Requested Quantity

Actual DeliveredQuantity

Acceptable materialtolerance

RightDocumentation

CompleteSupportingDocuments

BOL

L/C

Pre-assignments

Invoice value =Delivered value

Invoice Value

Delivered Value

Pricingcomponents

RightQuality

Delivered Material=Ordered Material

% First Quality

% Delivered On-Spec / Clean

CustomerCommit Date

RightContainer

To summarize the above, what makes a Perfect Order is…Shipment on

Time Right Quantity Right Documentation Perfect Quality


Training & Compliance

• Facility Certifications

• Self-Audit Status

• Familiarity with GP Warehousing Guidelines

• Training on handling of reject product

• Equipment operator certification

• Understanding of GP communication channels

Vendor Ownership and Accountability

Quality Control

• Inspection process for inbound product

• Segregation of reject product

• Understanding of product repair tolerances

• Correct area and tools for product repair (if applicable)

• Outbound vehicle checks

Facility Conditions

• Overall cleanliness

• Condition of floors & roofs

• Pest control

• Facility signage

• Integrity of walls and doors

• Smoking, Food, and Drink policy

• Odor levels

• Fire protection

• Trash / waste receptacles

• Condition of loading / unloading docks

• Overall culture of operators


Quality Control

Part 3


The material YOU handle goes into a wide variety of finished goods and packaging. We are deeply focused on quality because of the sensitivity of these end products

Product uses


• Glass or Metal pieces • Bugs or Insects • Oil and Grease.• Pieces of paper from manufacturing processes such as Core Dust, Tab Scrap• Wood splinters• Damp or wet areas

Keep this in mind at all times

What to watch out for


• Housekeeping and warehouse cleanliness are underestimated, but crucial aspects of superior warehouse management.

• The nature of GP product is such as warehouse practices and conditions can have a major impact on overall product condition.

• GP views vendor facility housekeeping as an area of high priority.

• Lack of stringent housekeeping could endanger your partnership with GP.

• We take great pride in delivering a superior and, flawless product to our customers and we ask the same from our partners in the supply chain.

Housekeeping General Expectations

Operating Standards

Continuous Communication

Supply Chain Excellence


Facility Conditions

Part 4


• Good operating and storage conditions are important to making sure the customer receives the product in the same condition it was produced.

• When in doubt always STOP, THINK AND ASK. GP will strive to work as a team with outside vendors to make sure we keep the high standard of zero defects.

• From the time a liner board is produced to the time the customer receives it, goes through multiple “touch points”. At these points, the liner has the potential to get damaged, at times beyond repair.

• These “touch points” are key areas to minimize damage, check for defects and also alert GP to issues you are seeing on the ground.

• Your focus on quality every time you unload, store or load containerboard rolls is critical to the process.

• If you see something, say something. Please reach out to GP if you feel the state of the product is not fulfilling our commitment to the customer. Remember, quality is EVERYONE’S business.

• Make sure there is a high level of communication between your facility and GP especially when product arrives damaged. Warehouses will be held accountable for product that is damaged and not reported to GP in a timely manner.

Handling and Storage Conditions


Material Handling Equipment (MHE) Requirements

Roll Grab - Capacity to handle 60” diameter

Rolls- Weight up to #10,000 - Rotating capabilities - A two stage mast

• For more detailed specifications please contact Georgia Pacific Mill or GP Containerboard Supply Chain

• Use a PSI level between 1800 and 2300 on the rolls with clamps to minimize damage (Suggested Requirement varies based on load)

• Inspect every truck or railcar sent to you for safety and damage free condition.


Exterior-Clear Signage outside facility-Adequate Trash and waste containers to provide for clean exterior .-Smoking in designated areas only.-Hazardous substances kept away from building.-No evidence of water collection areas outside facility (breeding of insects).-Exterior docks, walkways, railings and stairwells in good, safe condition.-Proper security access controls

Interior-Floor is clean without cracks, debris, rubble and free of oil and grease.-Storage areas are washed and cleaned regularly.-Windows and doors are in good working order with screens (no cracks or gaps)-Walls are well-maintained with no gaps or holes.-No smoking or Food consumption (except in designated area)-Cleanliness maintained in restrooms inside facility.-Evidence of visible pest control-Heavy equipment is stored in designated areas to prevent contamination of product-Roof is well maintained with no cobwebs or holes.-Lighting is functional and area is well illuminated.-Fire control equipment is functional and well-maintained.-Free of potential sources of contamination (i.e. chemicals, glass, odors)

Housekeeping Expectations


Housekeeping Best Practices

Clean, well-maintained, floors Cobweb-free ceilings Animal droppings Evidence of smokingin facility

Regular cleaningof floors Correct storage of equipment Trash on floors Damagedwalls

Do Do Not



Do Do Not

Clean, well-maintainedfloors - store onlined floor

Well-segregatedproduct

Non-Markingclamp truck tires

Oil-Free , smooth clamps

Sharp edges in storage areas

Oily floors

Heavy dirt / debris on floors

Rubble on flooring



Do Do Not

Clear signage in facility

Marked trash bins

Broken glass / signs Gaps under doors

Weeds inside or outside facility Trash inside facility


• GP Containerboard outside partners and vendors will load shipping containers / dry-vans with product.• The integrity of the trailer is very important for GP

– Integrity of the base rail to which the crossmembers are attached• Hyster 120 with a 6000# roll weighs • 4,500# on the drive axle• Dry vans rated for 20,000#

– Trailer must be in good structural condition and the loader needs to stay in the center of the trailer as much as possible to distribute the load.

• The inspection and monitoring of the quality of these containers / dry-vans prior to loading with product is crucial to making sure the customer receives the product in the same condition it arrived at the facility.

• GP will hold the warehouse and loading facility vendor responsible for product that is damaged due to non-conformity with the inspection of containers and vans.

Preloading Checklist1. Floors - Dirty/contaminated, rusted, wavy, delaminated / broken surface boards, missing fasteners, wet spots, holes, stains 2. Roof - Bent, broken, or missing roof bows, holes cracked or damaged roof sheet3. Nose - Rough/broken surface or bent. No evidence of water leaks4. Sidewalls - Rough or jagged plywood. Examine the exterior sides of the Container for tears or cuts of the skin that exceed

21 inches or that would affect more than one Container side post5. Cross members - Corrosion between mounting clip and base rail, severely bent / cracked cross members, missing /

damaged fasteners6. Post-base rail fasteners - Rivets with heads sheared off, watch for tear which continues and cuts through a side post 7. Base rail / side skirt - Base rail bent or cracked. Side skin cut, torn or otherwise damaged8. Landing Gear - Severely bent or broken bracing, missing or damaged fasteners9. Doors - Gaskets or seals damaged, latch broken. Examine hinges for damages10. Odors - Check interior for odors that are not normal

Container / Dry Van inspection procedure


Container / Dry Van inspection procedure: patching floors

These patches being at the back and only reaching the first seam is high risk to load. All patches should be long enough to be secured to a minimum of 4 Cross Members.

This patch reachingthe second seammakes it a good patchthat we can loadwithout issues.

This patch coversmultiple crossmembers which makesit a good patch that wecan load withoutissues.

Do Do Not


Container / Dry Van inspection procedure: damages*Examples of what NOT to be used for GP product

Damaged floors

Damaged walls

Damaged roofs

Damaged flooring

Hole in roof Leaking roof Hole in roof Leaking roof

Hole in sidewall Mold on sidewall

Damaged flooring Damaged flooringDamaged flooring

Rusty sidewalls Bad wall patch


Container / Dry Van inspection procedure: damages*Examples of what NOT to be used for GP product

SummaryExamine floors = No poorly patched, cracked or dirty areasCheck the Roof = look for areas that might leakInspect the walls = look close for holes, cuts or rusty areas Check for any odorsInspect outside of the containerCheck landing gear and cross membersLook for missing or rusted rivetsCheck the doors for any signs of damageInspect door hingesInspect cross members

Nail not flush with floor Cracked flooring

Bad roof patch Rusting roof Bad roof patch Bad roof patch

Bent cross member Bent cross member

Cracked flooring Cracked flooring

Damaged floors

Damaged walls

Damaged roofs


Rail car inspection guide*Examples of what NOT to be used cars

Summary• Make sure the inside is contaminant

and debris free.

• Check for holes and sharp edges inside the car.

• Check walls for dirt and contaminants.

• Make sure door are undamaged.

• Ensure the rail car doors are properly latched prior to transit.

• Take care to make sure there is no forklift damage to the cars.

This rail car must be rejected dueto wooden walls and floor

This rail car must be rejected due to the metal track along the floor. This car must be rejected due to the amount of contaminants and trash.

This car must be rejected due to the contaminant found on the walls. Unwrapped rolls would certainly become contaminated.


Handling

Part 5


DO• Ensure that unloading area is clean and sanitary, keep area

free of oil and grease from equipment used for unloading.• Make sure rolls are parallel to the floor before setting them

down.• Make sure upward & downward tension on the clamps has

been removed prior to releasing the camps from the package” (This will keep the clamps from sliding down the package when the clamp pressure is released).

• Make sure the package is on the floor before releasing clamp pressure.

• Alert GP and take pictures if a railcar or truck arrives with a loading pattern that is difficult to unload.

• Notify GP Customer Service of any shortages, overages, loss or damaged product within a 24-hour period, unless otherwise specified in the agreed MHA.

• Any damaged material shall be placed in a segregated area until disposition instructions are provided by GP to either Return to Inventory, in which case rolls can be shipped to GP’s customer; or Place on Hold, in which case the Materials shall not be shipped to GP’s customer.

• Communicate to GP immediately if the railcar or truck unloaded is damaged or compromised (dents, leaks, etc.). Failure to do this might make you liable for roll damages.

• Keep re-handling of product to an absolute minimum.• Report to railroad if you receive a class 1 railcar that needs

servicing and immediate attention.• Let GP know the optimal pattern for unloading on your dock.

DO NOT• Try to unload containerboard that has shifted or loaded too

tight in a railcar or truck unless you advise GP prior. (Advise concerned mill and ATL Supply Chain)

• Attempt to handle rolls more than is absolutely required.• Drag or Slide rolls on any surface at any time while unloading.• Unload railcars or trucks in inclement weather, unless your

facility has completely enclosed rail /truck unloading area.• Store unloaded containerboard next to products that generate

dust, odor and debris.• Use more pressure on the containerboard with clamps than

needed.• Ignore dents, holes and damage in railcars or trucks that you

receive. See something….Say something!• Unload product without examining them on the top, sides and

bottom. This is a crucial stage of quality control and must be done with minimum handling of the products

Handling & Unloading Guidelines


Unloading Containerboard and Kraft Rolls

Store on clean surface Report difficult layout to GP

Stage on platform afterunloading

Clean loading / unloading dock

Store near products that could contaminate containerboard materialKeep materials close/near loading and unloading docks

Move parallel to the floor

DO DO NOT


Storage

Part 6


• Store in a contamination free environment always.• Make sure to segregate a clearly visible, preferably

taped off area in a mixed use facility.• Regularly wash and clean floors around GP stored rolls• Make sure that area GP roll stock is stored in is well lit.• Make sure that the GP roll stock is stored on floors that

are in good condition, free of cracks, debris, oil and grease.

• Place rolls in bays with labels facing forward for easy readability.

• Allow at least 3-4 inches of space between the stacks of roll stock to facilitate easy re-handling and prevention of overlapping rolls.

• Store GP roll stock board away from ceiling beams and poles to minimize potential for damage.

• Put damaged roll stock aside in a separate clearly marked area to be examined and/or repaired

• Keep vehicular traffic around areas of stored roll stock to a minimum

• Clearly mark aisles and locations, to ensure roll stock inventory is kept in sync with the inventory system, and meeting FIFO guidelines as applicable.

• Ever store GP roll stock on dirty, debris filled or oily floors. The potential for contamination is very high.

• Stage outbound roll stock that has not been examined during the unloading process or prior to being staged for loading to the customer.

• Stack roll stock on floors that are uneven or have protrusions.

• Ever write on the outer wrap of the roll stock or put unauthorized labels or stickers, unless authorized by GP.

• Place objects of any kind on the top of the roll stock, unless authorized by GP.

• Stage roll stock that has visible damage – Damaged rolls as per Damaged Procedure should be staged in a separate area of the warehouse.

• Store roll stock on wooden pallets or by wooden objects.

• Stack roll stock tightly against walls, ceiling beams or any other hard objects that could damage the rolls

• Store roll stock in any manner that causes moisture or humidity to accumulate on or inside the wrap.

Storage Guidelines

DO DO NOT


Storing GP Containerboard and Kraft

Store on clean floor Labels facing out

Designated bays good vs damaged rolls Floors cleaned regularly

NO writing oncontainerboard

No stacking against pillars

No storage on damaged / dirty floor

DO DO NOT


Inbound• If applicable, GP sends the shipping manifest per load to

the Warehouse (via email, EDI or fax)• Once the GP load is received, the Warehouse scans to

GP Accounting ([email protected]) the manifest stating received or sends back EDI transaction.

Outbound• Safely and securely load and stack the materials in a

clean and waterproof vehicle• Ensure that materials are shipped in accordance with the

deadlines specified by GP and using only carriers approved by GP

• After the materials are shipped, the Warehouse shall promptly submit via EDI, or as directed by GP, the bill of lading or similar document, which shall indicate GP’s release number, the carrier name, customer consignee (ship-to), GP order #, customer PO #, GP roll #, grade of paper, width, weight (pounds), ship date and any other information required by law or GP.

• No product may be released based on Customer request without GP’s prior written approval. In such events, the warehouse shall report the release within 24 hours to GP and include; the carrier name, customer consignee (ship-to), GP order #, customer PO #, GP roll #, grade of paper, width, weight (pounds), ship date and any other information required by law or GP.

Inbound and Outbound


Example of GP’s Shipping Manifest


Example of BOL


Damage

Part 7


Criteria for Reporting Damage for Containerboard & Kraft Rolls

The criteria for reporting damaged product is; excessive tear damage, wet or water damage rolls and rolls that have crush or core damage. If product is received damaged or is damaged while in the Warehouse’s procession, the information must be properly documented.

The following criteria shall apply for reporting damaged materials: a) Crushed cores or other visible core damage. b) Edge tear, abrasion or other damage penetrating the roll in more than six (6) plies

to (12) plies- depending on type of liner/medium, as well as our customers’ requirements.

c) Wet rolls or rolls that have visible signs of having being exposed to wet conditionsd) Visually dirty rolls

The following slides provide specific information on types of damage and criteria to follow in determining when a external warehouse should contact GP to report damage.


Use this template to provide details of the damage

RL- Roll Label- indicate how far the damage is in relation to where roll label is

HD - Header Damage

CC - Crushed Core

ED - Edge Damage

WD - Water Damage

SC - Side Cut Damage

BD - Bottom Damage

BED - Bottom Edge Damage

Identifying and reporting roll damages

HDCC

ED

WD

BED

BD

RL

SC


Action: Notify GP Customer Service, Follow Inbound Damage Claim Procedure- await instructions

Handling and Tear DamageRoll edge dirty


Examples of “CAN” ship VS “DO NOT” ship rollsDO NOT SHIP

Damage to roll end Dirty roll end

Ply damage Ply damage

Water damage outer 2” of plies

Abrasion damage

CAN SHIP


Examples of “DO NOT” ship rolls


GP Mill Owned MaterialNIR: Non Invoiced Rolls• Notification made to GP using GP's Feedback Portal

within 24 hours• The warehouse designated individual needs to access

GP’s Feedback System Reporting Portal• To request access to the Containerboard Feedback

System, send an email to [email protected] with the subject: Request Access to Customer Feedback System

– Provide the following information in the body of the email: Name of warehouse, warehouse address, contact information (Name, email, phone)

• Once you have been granted access to the Containerboard Feedback System, use the link provided to begin reporting damages or missing roll information

• Upon receipt and review, a “welcome” email will be sent with instructions for completing the registration process

• GP communicates the decision to remove/dispose rolls.• If rolls, are not redressed or shipped, GP will ensure

traceability of the process with a Third Party responsible for removal/disposal of the rolls.

• Please follow up with GP Quality and GP Supply Chain for questions related to outstanding credit/debits due to damage/inventory reconciliation.

GP Plant Owned MaterialIR: Invoiced Rolls

• Notification made to GP using Excel Form (see next slide for an example)

• Damage is communicated to the corresponding GP Plant via email.

• Upon receiving the email notification and required information, GP Plant will initiate a claim investigation process

• GP Plant (point of contact) will communicate the decision to remove/dispose rolls.

• In the case of mis-shipments (overages/shortages) or missing/loss rolls, GP will adhere to the existing MHA agreement in place with the 3PL

• GP Plant will ensure traceability of the process with the GP Mill or Third Party responsible for removal/disposal of the rolls, please follow up with GP Supply Chain for questions related to outstanding credit/debits due to damage/inventory reconciliation.

Notification of non-conforming/damaged product

http://gpkggbywebprd01/CustomerFeedback


IR Damage: Notification made to GP using Excel Form

Warehouse Date Entered Order Number Roll Number Basis Weight Weight **PTA / DBO

Damage Amount (Wrap, Inches, Full

Roll)

Damage Reason Carrier Railcar/Traile

r Number Disposition Documentation

Ex. Doe Warehouse 05/01/16 456321 GP226K03421A 26# 5,342 PTA 20 Wraps Handling Damage Schneider Int'l SCNN12345 Shipped to plantPhotos; Driver signed BoL

or Manifest; Copy of email to carrier

**DBO = Done by Operator

**PTA = Prior to Arrival

Warehouse Report to Plant


1. If damage is visible upon opening the truck container door or during the unloading process, please contact the Customer Service Rep at GP and KBX.– Notification made to GP using GP's Feedback Portal within 24 hours– The warehouse designated individual needs to access GP’s Feedback System Reporting Portal

• To request access to the Containerboard Feedback System, send an email to [email protected] with the subject: Request Access to Customer Feedback System

• Provide the following information in the body of the email: Name of warehouse, warehouse address, contact information (Name, email, phone)

• Once you have been granted access to the Containerboard Feedback System, use the link provided to begin reporting damages or missing roll information

• Upon receipt and review, a “welcome” email will be sent with instructions for completing the registration process

• GP will communicate the decision to remove/dispose rolls.• GP will consider the following options depending on the diameter and number of plies involved in

the damaged:– Dispose roll to GP Harmon or another Third Party– Repair Roll, please refer to the Roll Repair Process– Instruct the warehouse to ship the rolls “AS IS”

• The warehouse will mark the rolls with a small “green” sticker• The warehouse will take a picture of the roll- showing the mark and the Roll ID Tag• The warehouse will putaway the roll in stock awaiting shipment instructions

• In the case of mis-shipments (overages/shortages) or missing/loss rolls, GP will adhere to the existing MHA agreement in place with the 3PL to determine due course of action. Please communicate with GP’s Supply Chain Manager for guidance.

• Please follow up with GP Quality and GP Supply Chain for questions related to outstanding credit/debits due to damage/inventory reconciliation.

Port Warehouses – Damaged Process GP Containerboard


• Upon inbound and inspection of materials, the warehouse is expected to notify GP Customer Service of any shortages, overages, loss or damaged product within a 24-hour period, unless otherwise specified in the agreed MHA.

– If damage is visible upon opening the vessel container at the unloading process, please contact GP local office (if applicable) or GP Customer Service.

– If GP determines the damage is caused by the transportation carrier or marine related parties, GP Customer Service will contact GP Marine Logistics for guidance.

• Criteria for inspection:– Roll has a green sticker, and shows visible damage of 12 plies or less– Roll does not have any sticker- shows visible damage of over 12 plies– Check for overages, shortages or loss/missing rolls

• Warehouse contacts GP CSR’s to evaluate the following options:– For damaged rolls:

• The warehouse to ship the rolls “AS IS” • The warehouse to “shut out”the roll, initiate a claim process using the GP’s Feedback Portal• The warehouse needs to notify GP immediately via GP’s Feedback Portal• Notification made to GP using GP's Feedback Portal within 24 hours• The warehouse designated individual needs to access GP’s Feedback System Reporting Portal• To request access to the Containerboard Feedback System, send an email to [email protected] with the subject:

Request Access to Customer Feedback System• Provide the following information in the body of the email: Name of warehouse, warehouse address, contact information

(Name, email, phone)• Once you have been granted access to the Containerboard Feedback System, use the link provided to begin reporting

damages or missing roll information• Upon receipt and review, a “welcome” email will be sent with instructions for completing the registration process

• GP Corporate will initiate the claim investigation process (refer to Exhibit 2)• GP CSR's or GP Sales communicates the decision to remove/dispose rolls. In the case of mis-shipments or missing/loss

rolls, GP will adhere to the existing MHA agreement in place with the 3PL• GP Supply Chain, GP Quality and GP Customer Service will ensure traceability of the process with the GP Mill or Third Party

responsible for removal/disposal of the rolls.• GP Quality and GP Supply Chain will ensure proper follow up with the warehouse to process credit/debits accordingly

International/Bonded Warehouses – GP Containerboard

http://gpkggbywebprd01/CustomerFeedback


Rail Damage Procedure

1. Immediately notify your serving railroad of the damage and request a railroad inspection. Be sure to document any form of communication that you have with the railroad. The carrier may or may not decide to send someone to inspect the damage, but regardless of their decision, once you have notified the carrier, you have fulfilled your obligation. Not only must the railroad be notified of the damage immediately, but GP must have written proof that this notification occurred.

2. If your serving railroad is not listed below, contact information can be provided by GP Rail Logistics.3. Keep all correspondence (e-mails, faxes, etc.)4. Report any telephone communications you have had with the railroad

5. Take pictures.• One picture must be taken before the rolls are removed from the railcar, the door is open, and the photo is

taken from about 15 feet away from the railcar.• Additional pictures demonstrating representative damage to the rolls and roll label are also required.

Refer to the Notification of Non-Conforming process to complete claim process with GP Mills or GP Plants.

Date/Time GP Contact’s Name

RR Contact’s Name

RR Contact’s Phone #

Communication Notes


Railroad Contact InformationRailroad Process/ Contact

BNSF Railway (BNSF) Report the damage by using one of these methods below:• Email car initial and number with pictures to [email protected] • Call BNSF at (800)333-4686, option 1 to report loss or damage (during normal business hours).

Canadian National Railway (CN) Report the damage by using one of the methods below:• Complete the Damage Notification Report on CN’s website

o If you are new to this website, please click “Register!” to set up an account with CN. http://www.cn.ca/Registero If you are not new to this website, sign in and continue with the Damaged Freight Claims tools. Only use this to

report damage – do not file the claim since Georgia-Pacific will file the freight claim.

CSX Transportation (CSXT)Report the damage by using one of the methods below:

• Complete the “Report Lost or Damaged Freight” form on their website www.ShipCSX.como If you are new to this website, please click “Register Now” to set up an account with CSX.o To file an exceptions report, hover over Resources in the menu bar, click on Claims Management in the drop

down menu, then blue link for “Manage your Freight Claims, and select “Report Lost or Damaged Freight” under the What do you need to do? tab

• File an exceptions report by phone, call (877)744-7279. Select Option #5 followed by Option #5, followed by Option #1. You will be given an Exception Report Number.

Canadian Pacific Railway (CPRS) Let CPRS know that you have shortages and/or damages by filing an Intent to Claim at [email protected] .What you'll need to report:

• State the condition of goods, seal number(s) and container or rail car number.• If railcar has been damaged, provide the type and location of damage—e.g., hole in roof in middle of car.

Kansas City Southern (KCS) Report the damage by using one of the methods below:• By calling 816-983-1825• By emailing [email protected]

Norfolk Southern Railway (NS) • Complete the online Damage Notification Form on their AccessNS website (https://www2.nscorp.com/accessNS). User ID and password are required, click Register if you are new to the site

• The form is located in “My e-Applications” under Damaged Freight. Complete only the Notification form and attach your photos.

Union Pacific Railroad (UP) • Report the damage by calling UP at (800)521-3252 X7735 and request an inspection. If after hours (7:30-4:30 CT), send an email to [email protected]. Include the railcar number and estimated damage dollar amount

http://www.cn.ca/Register

http://www.shipcsx.com/

mailto:[email protected]

http://mygp.srv.gapac.com/c/pkg/SCM/SOPs%20%20Drafts/[email protected]

https://www2.nscorp.com/accessNS



Repair

Part 8


1. Determine which rolls will be repaired based on minimum acceptable diameter, depending on roll actual diameter

2. Using a Repaired Roll log- GP will provide an example of most updated form.

– GP Order Number– Line Item Number– Roll ID– Load ID– Original Weight– New Weight– Number of plies removed– New diameter– Label Due Date (at warehouse)

3. Remove plies, place roll on side and remove label, set aside4. Temporarily tape the old label to the redressed role until the new corrected label is received5. Ensure original label is destroyed6. Secure outermost ply with tape7. Send Repair Log to GP contact within an agreed timeline. If there is an urgent need for a new

label, please contact GP Customer Service.8. GP Mill will issue new label, and send to warehouse9. Once new label is received, place new label onto roll10. A colored sticker might be used to mark as a repaired roll (preferably small round sticker)

Roll Repair Process

GP Order Number Line Item # Roll ID Original Weight New Weight Nr. Of Plies removed New Diameter


GP = Georgia - Pacific21 = Mill/Machine8 = YearP = Month06 = Day04 = Reel Number3 = SetB = Position

Example of a GP Containerboard Roll Label

***A SKU consists of a unique grade/width/diameter combination

Roll Management System (RMS) Roll Numbering System

Example: Roll Number GP218P06043B

Roll Month Codes

Odd Years A B C D E FJan Feb Mar Apr May Jun

Even Years N P Q R S T

Odd Years G H J K L MJul Aug Sep Oct Nov Dec

Even Years U V W X Y Z


Customer Service

Part 9


• Georgia-Pacific Containerboard & Kraft’s Customer Service Team is committed to getting our customers the right product when they need it, where it’s need it, every single time.

• By working closely with you to understand our specific business cycles and ordering patterns, we’ll work with our Supply Chain and Logistics departments to find our most efficient, reliable means of shipping.

• Our Customer Service Team expects the warehouse to provide clear and concise information when it comes to: inventory reporting, order history or vehicle information

• The ordering process will be set up either by e-mail (reporting format) or by implementing EDI. The expectation is that our Customer Service team obtains:

– Real-time order status– Transmission of shipment information using electronic data interchange (EDI)– Division-wide online feedback system for any damages/non-conforming product

Customer Service


EDI Set-Up

Part 10


• The Electronic Communication Procedure apply to the receipt and processing of all GP Containerboard, Kraft and Corrugated orders, shipments and inventory managed by an external 3rd Party Warehouse.

• Please contact [email protected] for questions or concerns during EDI implementation, keep GP Customer Service and GP Supply Chain in copy. Contract Relationship: Supply Chain Department – Packaging

• Please note that our preference is X12 EDI (Electronic Data Interchange); however, other formats are available

• The expected Implementation Timeline for EDI is: 4 to 6 weeks.• For Implementation Costs and Pricing approval please refer to the existing Materials

Handling Agreement. Contact the GP Containerboard Supply Chain Department for questions related to implementation costs.

• GP systems are configured to send, receive and process these messages with a two week lead time.

• File Specifications and samples can be provided (approximately 2 weeks turnaround time).

EDI Set-Up Guidelines



EDI Systems Flow

Transaction Step File Format

Advanced Shipping Notice(ASN or 856)

As product ships from a GP supplier or GP location, the vendor’s system should automatically process the ASN and store the inbound shipment and inventory data into the warehouse system.

Please note that taking the product attributes that are included in the ASN to the same precision is important so that weights on paper work that a GP system creates matches to any paper work the warehouse system creates.

X12 856 EDI Versions 3020 through 5010Flat file containing comma separated values

Warehouse Receipt Notification (944)

Warehouse Receipt Notification - When product arrives, your system sends a Warehouse Receipt Notification to Georgia-Pacific to post in the GP system that inventory has arrived. This keeps GP’s systems in sync with the status of each roll

X12 944 EDI Versions 3020 through 5010

Warehouse Shipment Notification (945)

Warehouse Shipment Notification - Warehouse sends a shipment notice to GP system so that inventory can be released. Given the typical close proximity of warehouses to our customer base, it is important that these Shipment Notices be delivered within 1 hour of the vehicle departure.

X12 945 EDI Versions 3020 through 5010Flat file containing comma separated values

The following table describes the types of transactions that are currently supported with our 3rd Party Warehouses.


EDI Profile

TransmissionVAN: Liaison

AS2: Provided as neededSFTP: Provided as needed

Versions Supported: 3020 – 5010Standards Supported: X12

GP Containerboard Group Header InformationTesting EnvironmentISA Qualifier: ZZISA Sender/Receiver ID: GPCBDTGS Sender/Receiver ID: GPCBDT

Production EnvironmentISA Qualifier: ZZISA Sender/Receiver ID: GPCBDPGS Sender/Receiver ID: GPCBDP

Documents Supported846 (Inventory Advice)856 (Advanced Shipping Notification)940 (Warehouse Shipping Order)944 (Warehouse Receipt Advice)945 (Warehouse Shipping Advice997 (Functional Acknowledgment)


Inventory Management

Part 11


• Materials must be stored in a manner to facilitate a “first-in, first-out” usage unless otherwise agreed or instructed by GP and in accordance with an existing MHA.

• Monthly and Cycle roll count each month is encouraged to help identify any obvious errors before waiting for the annual physical inventory

• For the annual physical, GP would attempt to identify a time during the year when the warehouse is at its lowest point

• Roll Stock must be tracked using an inventory system• A real-time on hand inventory report must be kept and provided to GP on a monthly basis or more frequently if

requested by GP. • The inventory on hand report needs to be kept in an electronic format (e.g., Microsoft Excel) on a monthly basis or

more frequently if requested by GP. • The inventory report must include a list of all Materials currently in the Warehouse(s):

– Roll ID– Date Received– Product Description– Customer’s Name (if applicable)– Inbound Load ID– Inbound Order Number– Weight in Tons– Days in Inventory (aging)– Damage Status

• Please email end of the month inventory report to: [email protected] on the last day of each month.

End of the Month Inventory Procedure



Supplier Performance

Part 12


1) GP encourages 90-day physical inspections within 90 days of shipping to a new warehouse to ensure basic operations; roll handling, loading, unloading and trailer inspection adequacy.

2) GP’s mill/corporate staff will support/collaborate with our warehouse partners in helping identify repetitive incoming quality – damage issues we can catch it early.

3) Georgia-Pacific Containerboard’s expectation is that our warehouse adheres to GMP Best Practices as stated in the existing MHA.

4) Document and data retention shall be in compliance with Georgia-Pacific’s Record Retention policy and Quality Assurance Standards as specified in the Material Handling Agreement (MHA).

5) Refer to Inventory Audit, Warehouse Inspections, Record Keeping, Inventory Report as agreed/discussed in the MHA.

6) A supplier quarterly review will be conducted on a quarterly basis to discuss the overall status of the GP-Supplier relationship.

7) Quarterly visits will take place via phone, on site at the warehouse facility or at the GP Center in Atlanta, GA.

8) Quarterly visits will be documented and followed through on a regular basis.

Supplier Performance


Quarterly Review Agenda

Measurement Description Status QR/Date Corrective Action Due Date

Aged Inventory Number of Rolls + X days

Damage Number of claims filedStatus of damaged rollsStatus of disposal

Issue List Process Changes Root Causes Preventive Action Corrective Action

This action list is to be reviewed during quarterly visits to the 3PL site.


Item Element Evaluation Criteria Description Observation Corrective Action (CA) Due Date Completion Date Satisfactory (Y/N)

13rd Party Certification

Evidence of 3rd Party Certification

Does warehouse have a valid 3rd party food grade certification (AIB, SQF, etc.)?

3Familiar with GP SOPs Knowledge of GP SOPs

Are copies of GP SOPs available for Operators? Are operators knowledgeable of GP Warehouse SOPs?

6 GP Communication

Evidence of Communication with GP Contacts and Knowledge of GP Escalation Contact List

Has appropriate communication with GP occurred for order fullfi l lment? Has appropriate communication occurred with GP for non-confirming product including incoming damage?

Training and Compliance


7 Incoming InspectionRecords of Incoming Inspections

Record Review required. Roll condition documented on incoming including damage and contamination

8Segregation of Non-Conforming Product

Evidence of a designated area for non-conforming product

Clearly marked area(s) for non-conforming product. Visual confirmation that non-conforming product is contained within identified area

9Non-Conforming Product Process

Evidence of knowledge of GP requirements for reporting Non-Conforming Product

Are copies of GP requirements for reporting Non-Conforming product accessible to appropriate staff? Is staff knowledgable of GP requirements for reporting Non-Conforming Product?

10 Rework

Evidence of understanding of Rework requirements, and presence of rework toolkit

Are operators knowledgeable of GP rework requirements including tolerances? Is there a repair toolkit? Is the repair area clean?

11 GMPEvidence of Good Manufacturing Practices

Are GMPs posted within the warehouse? Do GMP training records exist for opearators?

12Outbound Inspection

Records of Outbound Inspections including railcars and trailers

Record Review required. Is there a documented inspection for outbound rolls? Are railcars and trailers inspected prior to loading?

Warehouse On-Site Visit Evaluation Form



13 Exterior Cleanliness

Exterior is free of trash, weeds, standing water, obnoxious odors, and potential contaminents

Perimeter walk. Outside is free of trash, weeds, standing water, obnoxious odors, and potential contaminents.

14 Interior CleanlinessEvidence of good housekeeping practices

Observation that interior cleanliness includes absence of water, debris, excessive webbing, no broken glass, no obnoxious odors, and trash is clearly marked and not

15Interior Walls and Floors

Evidence of structural integrity

Observation that walls and floor are in good repair. No evidence of hole, deep cracks, or peeling paint

16 Roof IntegrityEvidence of structural integrity There are no holes, and no water leaks

17 Pest ControlEvidence of Pest Control Management

p control contractor. Map of control points, current log of control activity including action plans. Compliant with all bait/poison handling requirements. Absence of excessive insect evidence.

18 Windows and DoorsEvidence of screens to prevent contamination

Presence of screens on all open doors and windows including dock doors. Dock doors are closed when not in use.

19 Restricted AccessEvidence that access to warehouse is controlled

Systems that prevent unauthorized entry such as locked doors, badge scanners, monitored entry ways, visitor identification, etc.

20Glass and Brittles Policy

Evidence that l ighting is guarded to avoid contamination

Lighting above product is shatterproof or guarded. Does a glass and brittles policy exist?

21 Appropriate Signage

Evidence of appropriate signage both interior and exterior

Does apprpriate signage exists which identifies designated areas inside and outside? This includes segregation area, smoking, food/drink, and hygiene

22 Designated Areas Evidence of compliance within designated areas

Observation. Evidence that designated areas for smoking, food/drinking, and hygiene exists. Observation that restricted activities are only occuring in designated

23Cross Contamination

Evidence that GP product is stored in a way to prevent cross contamination with other products

Observation. GP product is stored away from potential contaminents including wood pallets

24 Waste ManagementEvidence of appropriate waste management

Observation. Are waste containers clearly identified? Is waste contained to identified containers (containers are not overflowing)?

25 Fire ProtectionEvidence of Fire Protection System

Observation. Presence of sprinkler system, and fire extinguishers. Evidence of inspection on fire protection system

26 Dock Cleanliness Rail Dock ConditionEvidence that houskeeping in rail dock is adequate and contamination is mitigated

27Moving/Handling Equipment

Evidence that moving/handling equipment is clean, safe, and appropriately maintained

p ( p forks, floor, etc.) clean? Is clamp pressure maintained between 1800-2300 psi to avoid damage? Is there a preventative maintenance program to monitor and manage moving/handling equipment?

28 Management Focus

Organizational Commitment to Quality, Product Stewardship, and Safety

Management is aligned with GP commitment to Product Stewardship, and Quality. Presence of safety culture is evident

Facility Conditions

Warehouse On-Site Visit Evaluation Form


Invoicing & Payment

Part 13


• The warehouse invoices GP on a regular basis as agreed in an existing MHA.• GP processes payment as per existing MHA.• Preferred method of payments is: via EFT.• Please complete a GP Supplier Information Form and ACH Request Form- to be provided by

Supply Chain Management to ensure proper and timely payment.• Payment Terms are the conditions under which GP and supplier have agreed when GP will pay

for a good or service.• GP calculates payment from the day that invoice is received in DART

• To avoid delays, suppliers are to submit invoices as per the invoicing instructions provided in a previous slide

• GP’s standard payment term is 1 % Discount at 15 days, otherwise pay NET 60 days, unless otherwise agreed in an MHA.

• Example: 1% 15 NET 60Receive invoice in DART = $50,000IF GP pays invoice by day 15, GP pays at 1% discount = $49,500IF GP doesn’t pay by day 15, GP pays full amount on day 60 = $50,000

Invoicing and Payment Terms


• To ensure that invoices are processed for payment timely submit the invoices to the e-mail addresses below:

– Storage, Handling, Misc. Freight Charges: [email protected]– Truck and Rail Transportation Invoices: [email protected]– Ocean Freight Invoices: [email protected].– For Payment Inquiries contact: [email protected]

• Please notice the following, failure to do follow these instructions will delay invoices from being processed:

– ONLY submit one invoice with back up documentation PER EMAIL. – Do not include a PO on your invoice. Doing so will cause a delay. – Indicate in the email that the invoice is NON-PO– Please notate the Bill To address: Georgia-Pacific Containerboard LLC, 133

Peachtree St. Atlanta, GA 30303• Add the name of your contact person in GP so the invoices get routed correctly

Invoicing Instructions






Vendor Set-Up

Part 14


• Vendor Set-Up:– Please complete a GP SUPPLIER INFORMATION FORM and ACH Set up Form

• Please include an updated W9 and completed Supplier Information Form, follow instructions in the form and email to the email specified in the forms

• Contact GP Containerboard and Kraft Supply Chain to request these forms

• Address Change or Name Changes• Please notify Address or Company Name Changes to: [email protected] and GP

Containerboard & Kraft Supply Chain.• Please include an updated W9 and complete the Supplier Information Form• Contact GP Containerboard and Kraft Supply Chain to request these forms

Vendor Set-Up and Address/Name Changes



• This procedure applies to the setup of Containerboard 3rd Party Warehouses looking to be set up with KBX Logistics (http://kbxlogistics.com)

• Warehouse Start-up Process • GP PKG Supply Chain coordinates initial discussion on the market dynamics and preferred warehouses

operating parameters based of dynamics of potential new warehouse sites being considered (e.g. aligning on receiving hours and capabilities, location relative to final customer, accessibility major roads/highways, etc.)

• KBX groups involved: Relevant regional manager/team leads, business liaison• Start-up call between GP, KBX ops, and warehouse contacts• KBX groups involved: Relevant regional manager/team leads, business liaison • Location IDs (if known or to be created for both shipper and receiver(s))• KBX groups involved: Ops manager/team lead and TOPS admin• Shipper/Receiver(s): address, contacts, appointments set-up (FCFS, call, email), hours of operation, pre-

load/live load, drop trailers, other miscellaneous important notes • KBX groups involved: Ops manager/team lead and TOPS admin • Freight account set-up: SAP G/L account, cost center, Loc IDs again, which location is responsible for

billing • KBX groups involved: Ops manager/team lead and trans rating• Choose carriers: Dedicated (depending on location, volume, long-term/short-term warehousing use, and

whether or not an existing fleet can be used or a new one is needed) or OTR (how large a carrier base needed, contact carriers for rating). If any Rail shipping (which lanes, car types, etc.) that is set-up as express lanes in TOPS so that rail loads are captured.

• KBX groups involved: Ops manager/team lead, trans pricing, TOPS admin • Route initial loads and monitor to ensure systems are working and all parties involved are satisfied with

the process • KBX Groups involved: Ops team lead and transportation planner• Please contact PKG Supply Chain- Georgia Pacific with questions or concerns

Truck Transportation

http://kbxlogistics.com/

http://mygp.srv.gapac.com/c/pkg/SCM/SOPs%20%20Drafts/Escalation%20Path-%20Management%20Responsibility.pptx


Physical Audits

Part 15


Upon GP’s request, and in accordance with an existing MHA, GP and the warehouse will perform a joint audit of GP's inventory of Materials at the Warehouse(s).

GP accounting personnel will compare the inventory report provided by the warehouse with GP’s records.

GP and the warehouse will cooperate to reconcile any differences between the physical inventory and each party’s inventory records.

Refer to the existing MHA for the Record Retention Policy as agreed with GP. In most cases, GP would ask for records to be kept at the warehouse for (3) years following expiration or termination of an Agreement.

• The warehouse is expected to maintain accurate books, records, documents and other evidence concerning materials, billing and service records.

Audits may comprise of:

• Physical count of inventory• Inspection of Warehouse facilities• Review of product condition• Billing records• Compliance with the warehouse operating guidelines

Reconciliations and Audits


A Georgia Pacific accounting employee or a designate could conduct a physical inventory a minimum of once per year.

Inventory Method•A wall to wall approach will be used for roll stock inventories.

•In the wall to wall approach the entire inventory is counted at a point in time.

•Supply inventories may be counted one day prior to the first day of the month, as long as they are not going to be used prior to the month end cut off.

•Count teams should conduct the inventory taking process, rather than one individual.

•The warehouse will provide a layout of the off site location (s), and identify the different the sections and areas where GP material is located.

Physical Inventory Audit Procedure


The physical inventory includes all product received through 7:00 a.m. on the first day of each month.

Cutoff procedures are:

• No receiving during the count if possible• No shipments during the count if possible

Evaluate alternating shipping schedules, so as to avoid interruptions during the count.

Propose an inventory freeze, with a system cutoff time, such as, between 8:00 and 9:00 p.m.

• Shipments that take place between 8:00 p.m. the last day of the month and 7:00 a.m. the first day of the month may need to be added to the accrual for the prior month

• A review of the system’s daily shipments report for the day before and the first day of the new month will identify those shipments and they should be compared to the list of shipments secured from the guard for the same time period.

Timing of Inventory/Cutoff Procedures


Physical location preparation should include:

• (1) organizing work areas and storage locations• (2) identifying and segregating items• (3) ensuring that all inventory items have labels or identification, • (4) verifying that items are in the correct location, • (5) pre-counting slow moving items, and • (6) identifying excess/obsolete inventories.

Organizing and cleaning the warehouse should be complete before the count begins.

Misplaced materials should not be moved while the count is in progress.

The physical inventory (counting) process and the reconciliation of the inventory to the book inventory record should be performed by an independent person, if at all possible.

An independent person is not the person who:

• Receives inventory into the facility.• Is responsible for the daily security or accountability of the inventory.

If this segregation of duties is not feasible, count teams should conduct the physical inventory and an independent person should verify the counts at a minimum on a quarterly basis.

It’s an overall best practice that a reconciliation must be performed by an independent person.

Physical Location Preparation


GP’s accounting team will select teams, review procedures, and handout inventory sheets with GP designated counters.

It’s expected that the warehouse management will do the same with their counters.

One member of a count team includes a person independent of the area being counted.

Suggestion is no more than 4 per team

• Physical count teams (2 people recommended)• One to count and one to record using both the count sheet and the barcode reader.• Possibly add instructions on how to set up the barcode reader• Verification team (2 people recommended)• Check throughout and around the shelf for parts in the wrong location • Review sign out sheets to ensure item was not used in the facility.• If a part is found to be in the wrong location move to correct location and verify the quantities of the parts in both locations are

listed correctly.• Download coordinator (1 person recommended)• Download all barcode readers• Process all data• Instruct all teams

Implement annual training for the individuals involved in inventory counts.

Team selection


1. Process Physical inventory (download coordinator)

a. Download barcode reader to MP2 b. Print inventory verification barcode log (1) c. Open physical inventory table d. Print inventory verification report(4)

Assign report to the verification teamAny update that is mismatched and if the value is above a predetermined amount must be verified.Enter verified (corrected) amounts in barcode transaction physical inventory table

e. Process barcode transactions physical inventory tab f. Sort physical inventory table by new quantity

Review all updates to ensure they are entered correctly b. Process by completing the “update inventory” - only complete one process at a time (reader download).c. Clear data from the barcode reader only after the inventory has been processed correctly.g. Items found without a barcodeh. Print new label, label shelf/part, and count as normal i. Items found not to be in inventory during the count

Review items to ensure they do not belong in a different location Move to correct location and recount the quantity Report new quantity to the download coordinatorAny items that are not usable should be disposed ofItem(s) needing to be added to inventory must have proper approval.

2. Obsolete and damaged inventory should be tagged and segregated from inventory available for use or sale. Slow-moving inventory should be reported to division accounting on a quarterly basis.

Process Physical Inventory


The actual physical count is recorded on count sheets. Count sheets help to ensure that every inventory item gets counted. The count sheets should be

signed by the count team, retained and reviewed to ensure that the transfers

from the count sheets to the computer system are accurate.

The inventory count teams should compare their counts after transferring their inventories into Excel and verify that there are not any transposition

errors.

If discrepancies are discovered between individuals on the count team,

recounts should be conducted.

Forms and Recording of Information


• Item number • Vendor Item number • Description • Site • Stock location • Unit of measure• Sort the sheet by site, stock location, and then item number.

Inventory standard (Suggested fields)

Never select a quantity, min/ max or any leading information!

Count Sheet Template


• The comparison of the actual count to the book inventory balance determines the variance between the two and the need for recounts or research.

• The original count sheets from each team member are given to the plant controller/accountant for inventory reconciliation.

• The Controller or designate reviews the inventory reconciliation for any large discrepancies. • If the controller finds large discrepancies and there is no explanation, the lead count operator and

or management is asked to do a recount of the board. • Raw material usage variances of 10% or more when compared to year to date numbers require a

recount unless the variance is the result of a change in recipe or from a documented trial. • Segregation of duties should be reconsidered in assigning the personnel performing any

additional counts. • Research of variances is an essential element of an effective inventory count process. Research

may include reviewing (1) transaction histories, (2) shipping and receiving records, and (3) production usage records. Prompt completion of required research is key to identifying and correcting the causes of variances. As the amount of time between the discovery of an error in the inventory records and research increases, the more difficult it is to identify the cause of the error. Research should be completed the same day as the count if possible.

Reconciliation


Training & Compliance

Part 16


• Timing– Inventory roll forward can be utilized when the first of the month falls on

a weekend or holiday. When utilizing the roll forward method, inventory is taken on Friday or the day before the holiday using the same procedures above. Inventory is then rolled forward by adding production and/or receipts and subtracting sales and/or usage from the inventory date to the first.

• Documentation– In addition to the above documentation, the standard roll forward sheet

should be utilized. This will ensure consistency and accuracy.

Timing and Documentation


Contacts

Part 17


Escalation Path- Management ResponsibilitySituation Type Primary Contact

Trailer Backlogs GP Containerboard & Kraft - Supply Chain - Atlanta

Rail embargoes GP Customer Support – AtlantaGP Rail- Atlanta

Weather related issues KBX Logistics – Green Bay

Account Management/ Contracts GP Containerboard & Kraft - Supply Chain - Atlanta

Daily Operations/Inventory CUSTOGRP_CBR Box CSRs: [email protected]

Inventory reconciliation/reportingAccounts Payable/Invoicing

GP CTB A/P Department: [email protected] Customer Service: GRP_CBR Box CSRs: [email protected]

Damage

Product StewardshipQuality

CUSTOMER SUPPORT - CTB CS & PP Originating GP MillDestination GP PlantGRP_CBR Box CSRs: [email protected]

IT - EDI GP Containerboard & Kraft - Supply Chain – AtlantaCUSTOGRP_CBR Box CSRs: [email protected] Packaging - IT EDI: [email protected]

The 3PL/Warehouse shall have established links with the Georgia-Pacific Representatives







Containerboard & Kraft Warehouse Standards & … SOP_july2017.pdfBring awareness to continually...

Documents

Transcript of Containerboard & Kraft Warehouse Standards & … SOP_july2017.pdfBring awareness to continually...