Benefits Of Working With KL RDC Dear Supplier; Since year 1984, AEON (Malaysia) has seen significant growth, and we are in midst of passion for growth towards a number 1 retailer in Malaysia, and also in ASEAN countries by then. As our expansion grows rapidly, we would like to invite all of our business alliances to grow bigger together, as a strong win-win business team scenario. In conjunction of this, we have developed this new Kuala Lumpur Regional Distribution Centre (KL RDC) as our kick off infrastructure to support our continuous growth. You know that being a part of our distribution center will provide you major benefits and services of which some are below; 1.An increased in availability leading to increase your sales 2.Priority delivery to all AEON stores 3.Faster replenishment to stores 4.Higher frequent deliveries to stores 5.Reduction in administration matter for supplier 6.Reduced waiting time at each stores This document outlines the rules for working in our supply chain This pack provides you with details to understand the centralization ways of working. Please take time to read through the pack and feel free to contact us if you have any questions. Regards, AEON Co. (M) Bhd.

KUALA LUMPUR REGIONAL DISTRIBUTION CENTRE (KL RDC) - Supplier Manual - AEON Co. (M) Bhd. ~ Supply Chain Management ~ Ver. 1-1 (Effective Date: 06 th May 2013)

Agenda Agenda 1.KLRDC Overview 2.Requirements 1) KL RDC General Rules 2) Documentation 3) Packing Specifications(Cartons) 4) Packing Specifications(Palletize) 5) Delivery Booking 6) Transportation 7) Unloading 3.Summary - RDC Reject Cases /Cases Penalty imposed 4.Contact List 5.Supplier’s Acknowledgement 【 Appendix 】 1.RDC Process Guideline 2.Document Sample

Overview  RDC located at Bandar Baru Bangi.  Monday to Saturday, 07:00 to 19:00, exclude peak season.  Manage AEON warehouse facility – Cross Dock (XD), Consolidation (CS) & Stock Point (SP).  Stock Point items will be stocked in RDC to ensure excellent availability and will be dispatched in 24 hours upon store ordering.  Cross dock & Consolidation items are an amalgamation of store demand and will be dispatched in 24 hours upon receiving at RDC. No stock held in RDC.  Cater for existing AEON stores and subsequent new stores. 4 Distribution CentreStore Code (DC Code) Receiving HoursOffice Hours KL RDC XD (each) 07:00 – 19:00 (Monday to Saturday) 09:00 – 18:00 CS (8010) SP (8012) 08:00 – 17:00 (Monday to Friday)

100 ㎞ ： DC ： Store 5㎞ 5㎞ Klang Valley DCKL DCSA KL RDC 5 RDC Location HC

6 Address: AEON Kuala Lumpur Distribution Centre (KL RDC) Jalan 6C/13, Off Persiaran Kemajuan Taman Persiaran Bangi Bandar Baru Bangi Selangor Darul Ehsan Telephone (Hunting Line): - To be advised - Fax: - To be advised - GPS: , N E 2°56' ''N 101°45' ''E Address & Contact Remark

7 Hamper Centre Location Remark HC

8 Hamper Centre Location Remark

9 Hamper Centre Location Remark

10 Address: AEON Hamper Centre Lot 37/38, Jalan P4/6 Taman Teknologi Kajang Semenyih Selangor Darul Ehsan Telephone (Hunting Line): - To be advised - Fax: - To be advised - GPS: , N E 2° 57' ”N 101° 48' “E Address & Contact Remark

11 Logistics & Information Flow Supplier AEON KL RDC AEON Store (Ordering & PO Data) (Accept PO & Create DO) (Payment Advice)(Confirm Payment) (RN Generated) Logistic Flow IT Flow B2B System AEON HQ

Booking to KLRDC 1 1 Security check by Guards 3 3 Register lorry & drivers to KLRDC Office 4 4 Unloading & Merchandises Inspected 5 5 Receive “Receiving Note” 6 6 Arrive RDC 30min before appointment 2 2 Pick up goods to take back, if any 7 7 Inspection by our Security before leaving 8 8 N-1 day Booking Form Driving License RN DO Registration Form * GRN Appendix P-1 Appendix P-1 Supplier Delivery Process * For the Details, Please refer each “Process Guideline” Appendix P-2 Appendix P-2 Appendix P-3 Appendix P-3 Appendix P-4 Appendix P-4 Appendix P-4 Appendix P-4 Appendix P-5 Appendix P-5 Appendix P-6 Appendix P-6 - Document - 12 Registration Form Registration Form Registration Form Registration Form Registration Form

(Ref.) Booking ProcessDateRemarks Day:N-1 09:00 | 16:00 ※ 1:Every suppliers are entitled to “GID” or “Normal suppliers” as per volume. ※ 2:Check delivery volume against your quota allocated to each GID ※ 3:Fill up “GID Booking- Form” given. ※ 4:Fill up “Booking- Form” given. ※ 5:Do by mail or fax only. Booking by call is NOT acceptable. Day:N GID Suppliers Delivery to KLRDC on appointed time GID SuppliersNormal Suppliers Check volume No GID Booking FormBooking Form Send to KLRDC Get Booking# Yes Excess Not Excess ※1※1 ※2※2 ※3※3 ※4※4 ※5※5  Booking must be done to Booking Centre within 09: :00 of 1 working day before delivery time.  Suppliers must check with KLRDC Booking Control Officer, if Booking# are not given after 1 hour after booking. The phone # is : 03-XXX-XXXX  Drivers must arrive and register his lorry to Guardhouse on/before appointment time.  Cancellation must be done by 16:00 of 1 working day before delivery date booked.  Delivery without booking can be rejected. Fax: 03-XXX-XXXX Booking Centre 13 Remark 【 Appendix 】 P-1 Process Guideline & Document Sample 【 Appendix 】 P-1 Process Guideline & Document Sample

RDC General Rule RefDetails 1 RDC is not liable for any missing documents or un-collected stocks after issuance to driver or in the event driver refuses to collect. 2 Anyone should be on proper dress and should bring ID, passport or driving license. (Please refer 1-2) 3 Prohibited to approach to other area than waiting area, designated bay & designated toilets. 4 Smoking & eating are prohibited in KLRDC compound, except at the designated area. 5 Not allowed to bring bags, empty boxes and something you can put something into it. 6 Dispute about our classification of damage are not allowed. 7 Follow designated route to get to KLRDC (Please refer 1-3, 1-4) 8 Follow KLRDC Traffic rules (Please refer 1-5 ). 9 Park lorries so that the lorries doesn’t block the traffic in KL RDC compound and along KLRDC entrance. 10 Suppliers follow KLRDC staffs’ instructions in KLRDC (incl. the surroundings).

15 N GO K 1-2 RDC Dress Code RDC Visitor Pass Shirts Tied-in No Bags Shoes NO RDC Visitor Pass Shirts Tied-OUT Bags Sandals Long Pants Short Pants

KL RDC 1-3 RDC Access Route 1 16

KL RDC 1-4 RDC Access Route 2 17

WAREHOUSE ONE WAY Lorry Waiting Area GUARD HOUSE Persiaran Kemajuan Jalan 6C/ RDC Traffic Flow 18

2-1 Requirement – Documentation RefDetails XDXD CSCS SPSP 1 Only WEB-EDI D/O hard copy are acceptable as proof of delivery. Any other documents are not acceptable, except for Admin & FOC item.  2 For Admin item, supplier required to bring AEON’s Manual PO & Suppliers’ Invoice.  3 For FOC item, supplier required to bring Supplier’s Invoice as proof of delivery.  4 Suppliers must issue amended D/O with exact item quantity to deliver, otherwise penalty may be imposed.  5 Receiving Note (RN) is the final proof of actual received goods, and no dispute are accepted after RN acknowledged by supplier.  19

2-1 Requirement – Documentation RefDetails XDXD CSCS SPSP 6 Any documents are to be collected by supplier on their way to leave RDC on the same day. RDC is not liable for any missing /lost documents suppliers fail to collect by the time supplier leave RDC.  20

3-1 Requirement – Packing Specifications(Cartons) RefDetailsXDXD CSCS SPSP 1 Packing merchandises of same SKU into different size & design are prohibited. Merchandise in carton with different merchandise name/logo are prohibited. (*Please refer 3-3)  2 As for XD item, carton box must be clearly labeled with the “Carton Label” with correct store name which could be purchased from RDC.  3 As for food item, carton box must be clearly stated with “Product Expiry Date”.  4 Mixed item in one carton must have a separator. RDC to reject if this condition is not followed.  21

RefDetails XDXD CSCS SPSP 5 Price tag/label not attached for each of the merchandise (except food line), RDC to reject. Clothing / Soft merchandise = Price Tag Other boxes / Hard merchandise = Price Label  6 For Source Mark Barcode / Price Tag / Price Label, RDC to reject if Item Barcode & Price Tag can’t scan  7 Suppliers must bring masking tape / seal, and seal boxes after inspection by RDC.  8 For FOC item, must be separated in different carton packaging with “FOC” indication, although the FOC item is the same merchandise’s item.  3-2 Requirement – Packing Specifications(Cartons) 22

Item B Item A Plain carton Item A Item B Item A Plain carton Item A Item B Plain carton Item A Separator Item B 3-3 Requirement – Packing Specifications(Cartons) Plastic Bags Items Cartons

Requirement – Carton Sticker & Price Label 35mm 60mm 30mm

AEON Carton Label Send RDC “Label-Order Sheet” by fax by 15: N-1 day Bring cheque/bank draft for the invoice amount with the invoice 3 3 N day Have labels and receipt from RDC against cheque 4 4 N day Have invoice for the labels from RDC by fax 2 2 N-1 day ※ N Day = Day you pick labels from RDC.  Purchase label without 1 working day prior order by designated order sheet.  Payment not by cheque. Any payment but cheque are not acceptable.  Check with RDC invoice copy. Check without RDC invoice are not acceptable.  Dispute about labels quantity after receiving RDC receipt. Restrictions Fax: 03-XXX-XXXX Tel: 03-xxx-xxxx Booking Centre Remark

26 RefDetails XDXD CSCS SPSP 1 Suppliers to palletize cartons in standard Ti-Hi arrangement and stack carton on or lower than 1,600mm including pallet’s height. Note: Ti = number of carton per layer, Hi = number of layer per pallet  2 Supplier have to rent pallets until 30 days after "cargo released" to RDC if uses a rental pallet.  3 Only a standard 1100mm X 1100mm or1000mm X 1200mm, 4-way pallet with a minimum carrying weight 1000kg only are allowed.  4-1 Requirement – Packing Specifications(Palletize)

27 RefDetails XDXD CSCS SPSP 4 Pallets and cartons must be properly secured with sufficient stretch films to ensure stability and no over hanging from pallet. Cartons over hanging from pallet are not acceptable.  5 Stacking are not allowed to contains more 1 PO in 1 pallet, and must have same expiry date (for food item).  6 Standard format “Pallet Indication Sheet” provided by RDC to be filled up and to be pasted on every pallets for Stock Point & Consolidation.  4-2 Requirement – Packing Specifications(Palletize)

RefDetails XDXD CSCS SPSP 1 Supplier must comply to the agreed window time at all time. All Appointment supplier must call, fax or to RDC to get an appointment 1 day before. RDC to reject if no appointment is made.  2 Agreed window time means registration time at the RDC Security Gate.  3 Delivery cancellation (with appointment) must inform RDC via /fax at least 1 day before delivery day (by 16:00) or supplier shall be liable for a penalty from the merchandising side.  4 If delayed more than 30 minutes from the appointment time, supplier must wait queue & become last supplier to receive for the day  5-1 Requirement – Delivery Booking 28

29 RefDetails XDXD CSCS SPSP 1 Supplier allowed to bring only “AEON" merchandise into RDC and exit with empty condition, except rejected / damaged / returned merchandise.  2 Supplier’s merchandise arrangement inside lorry must followed with - By DO & Store [XD Receiving] - By DO [Consolidation & Stock Point]  3 Helper is required to assist unloading minimum requirement: 1) 20 ton truck = 1 Driver + 2 helper 2) 10 ton truck = 1 Driver + 1 helper 3) <10 ton truck = 1 Driver  6-1 Requirement – Transportation

30 RefDetails XDXD CSCS SPSP 4 Arrival earlier at RDC more than 1 hour before appointing time are not allowed. (to avoid congestion around RDC)  5 RDC Bay height is 1300mm, suppliers’ vehicle’s specifications preferably should match with this height.  6 Single PO delivery with multiple lorries requires confirmation by supplier's coordinator on arrival all lorries at RDC to start receiving process. RDC shall not start receiving process if lorries arrival incomplete.  7 3 rd party transporter is allowed to bring more than one suppliers' merchandise. Transporter must arrange the merchandise by supplier, by PO and by SKU, and separate it physically by separator in lorries.  6-2 Requirement – Transportation

31 RefDetails XDXD CSCS SPSP 8 Supplier must attend together with RDC Receiver during receiving process.  9 Pallet arrangement according to DO/SKU, Supplier must know to show or informed how to unload pallets according to DO.  10 Supplier must arrange delivery by vehicle or lorry allowed by RDC. Strictly no cars allowed. Details are following page. *Please refer 6-4  6-3 Requirement – Transportation

32 Motor cycle Car 6-4 Requirement – Transportation Company Van (with company logo) Box Lorry Canvas Lorry Open Lorry Trolley/Hand Carry

33 label Light weight boxes (Upper side) heavy weight boxes (Lower side) label ex. Store Code 1001 Item Code A Item Code BItem Code C label Item Code A Item Code B Item Code C Store Code 1001 (in case of XD) Item Code A Item Code B Item Code C Store Code 1002 (in case of XD) Label 1. In case of XD (1) Unload by store and category and item (2) Use the cart rack/pallet for unloading (3) Please stack so that we can check the Carton Label (4) Please stack light weight items on upper side Please stack heavy items on lower side 7-1 Requirement – Unloading : XD

34 Item Code A Item Code B Item Code C Item Code A Item Code B Item Code C 2. In case of Consolidation & Stock Point (1) Unload by item (1 item 1 pallet) (2) Use the pallet for unloading 7-2 Requirement – Unloading : CS & SP

Requirement – RDC Reject Cases RefCase 1 As per mentioned in ‘Distribution Centre Usage Agreement’ in Clause 7. 2 Drivers and staffs in improper dress. 3 Delivery by improper lorries/cars. 4 Drivers and staffs with bad manners/behaviors 5 Lorry having goods of other suppliers and having goods for other destinations. 6 Price tag/label not attached for each of the merchandise (except food line). Clothing / Soft merchandise = Price Tag Other boxes / Hard merchandise = Price Label 7 For Source Mark Barcode / Price Tag / Price Label cannot scan 35

Requirement – Liquidated Damage RefCases 1As per mentioned in ‘Distribution Centre Usage Agreement’ in Clause Remark

37 Category Person In Charge Telephone Delivery Appointment Booking Centre To be advised 09:00 to 16:00 Logistic Matter AEON SCM To be advised 09:00 to 18:00 To be advised Merchandise Matter AEON Merchandiser -- B2B MatterB2B Helpdesk 03– Mon to Fri 09:00 to 18:00 Other Contact List Remark

38 Supplier’s Acknowledgement Supplier are required to submit the undersigned acknowledgement of the AEON KL RDC Suppliers Manual by 30 th April Fax/ scm_ Sample Remark

【 Appendix 】 KL RDC Supplier Manual - Process Guideline & Document Sample - AEON Co. (M) Bhd. ~ Supply Chain Management ~ Ver. 1-1 (Effective Date: 06 th May 2013)

Booking to KLRDC 1 1 Security check by Guards 3 3 Register lorry & drivers to KLRDC Office 4 4 Unloading & Merchandises Inspected 5 5 Receive “Receiving Note” 6 6 Arrive RDC 30min before appointment 2 2 Pick up goods to take back, if any 7 7 Inspection by our Security before leaving 8 8 N-1 day Appendix P-1 Appendix P-1 Supplier Delivery Process Appendix P-2 Appendix P-2 Appendix P-3 Appendix P-3 Appendix P-4 Appendix P-4 Appendix P-4 Appendix P-4 Appendix P-5 Appendix P-5 Appendix P-6 Appendix P-6 40

P-1 Booking ProcessDateRemarks Day:N-1 09:00 | 16:00 ※ 1:Every suppliers are entitled to “GID” or “Normal suppliers” as per volume. ※ 2:Check delivery volume against your quota allocated to each GID ※ 3:Fill up “GID Booking- Form” given. ※ 4:Fill up “Booking- Form” given. ※ 5:Do by mail or fax only. Booking by call is NOT acceptable. Day:N GID Suppliers Delivery to KLRDC on appointed time GID SuppliersNormal Suppliers Check volume No GID Booking FormBooking Form Send to KLRDC Get Booking# Yes Excess Not Excess ※1※1 ※2※2 ※3※3 ※4※4 ※5※5  Booking must be done to Booking Centre within 09:00 -16:00 of 1 working day before delivery time.  Suppliers must check with KLRDC Booking Control Officer, if Booking# are not given after 1 hour after booking. The phone # is : 03-XXX-XXXX  Drivers must arrive and register his lorry to Guardhouse 30 minutes before appointment time.  Cancellation must be done by 16:00 of 1 working day before delivery date booked.  Delivery without booking can be rejected. Fax: 03-XXX-XXXX Booking Centre 41 Remark

42 ProcessRemarks ※ 1:Guardhouse check arrival time against appointed time. ※ 2:Guards check lorry spec against KLRDC regulations. Also check lorry sealed by seal (s) with same serial No. as one (s) mentioned on delivery note. ※ 3:KLRDC may reject receiving or allocate last turn of the day. ※ 4:Guards check driver and helpers’ dress against dress code. ※ 5:Leave ID or driving license of ALL persons to enter. ※ 6:Don’t park out of parking area, unless instructed to do so. ※ 7: Only driver go to Office to register. The others must be in lorry until offloading. In-Time Arrival ? Arrive at KLRDC Guardhouse by30minutes before appointment ※1※1 Fill up Register-Form to register driver, helpers & lorry Park lorry in Parking Area Rejected or allocated last turn of the day. Lorry Check Drivers come to Office to register Get 2 copies of Register-Form against ID card or Driving license P-2 Security Check No Yes No Yes ※3※3 ※2※2 ※5※5 ※6※6 ※7※7 Dress Check Yes No ※4※4

43 ProcessRemarks ※ 1: ※ 2: Arrive at KLRDC Office by 15minutes before appointment Take number card and waiting for called in waiting area. P-3 Registration ※1※1 Hand over Register-Form, Delivery Order(D/O) to Office Take assigned bay card from Office Move lorry to designated bay  Approach to area in the warehouse other than waiting area.  Driver waiting out of designated area.  Helpers waiting out of lorry.  Smoking & Eating in KLRDC  Use other toilet than designated.  Stay in waiting area without purpose of waiting for call from KLRDC Office. Restrictions Return-Goods Have Goods Return Note （ GRN) from office Not Have Have

44 ProcessRemarks ※ 1:Inspectors check bay# card and seal number(s) against D/O ※ 2:Driver & helpers offload merchandises by D/O# and open a box by SKU. ※ 3:Inspectors check merchandises separated in lorry and check packing style & AEON carton label pasted on ALL packages. ※ 4:Inspectors can instruct drivers to move off loading bay to re-arrange merchandises. ※ 5:Inspectors check product code & its q’ty of merchandise against D/O, and also check cartons conditions. Driver & helpers seal back boxes after inspection by their own tapes/seals. ※ 6:Lorry to move to Return-Goods bay and collect return-goods, if requested by Office Move lorry to designed bay ※1※1 Hand over Register-Form, D/O to designated KLRDC staff Have Inspector’s acknow- ledgement on Register-Form Move the lorry off from the loading bay and sort merchandises by D/O Check Return-Goods Process P-4-1 Unloading & Inspection : XD Yes No ※3※3 ※5※5 Have KLRDC staff cut seal(s) on lorry Check Driver & helpers offload merchandises onto pallets by D/O ※4※4 Inspection Yes No Column on Register-Form for rejected items filled up by Inspectors OK NG Return-Goods ※6※6 Not Have Have ※2※2 Driver go to Office to have Receive-Note and stamp on Register-Form

45 ProcessRemarks ※ 1:Inspectors check bay# card and seal number(s) against D/O ※ 2:Inspectors check if “Consoli- Indication” on palletized merchandises. ※ 3:Inspectors can instruct drivers to move off loading bay to re- arrange merchandises. ※ 4:Check product code & its q’ty of merchandise against D/O, and also check cartons conditions. ※ 5:Lorry to move to Return-Goods bay and collect return-goods, if requested by Office Move lorry to designed bay ※1※1 Hand over Register-Form, D/O to designated KLRDC staff Have Inspector’s acknow- ledgement on Register-Form Move the lorry off from the loading bay and put “Consoli Indication” Check Return-Goods Process P-4-2 Unloading & Inspection : Consoli Yes No ※2※2 ※4※4 Have KLRDC staff cut seal(s) on lorry Check Driver & helpers offload palletized merchandises by D/O ※3※3 Inspection Yes No Column on Register-Form for rejected items filled up by Inspectors OK NG Return-Goods ※5※5 Not Have Have Driver go to Office to have Receive-Note and stamp on Register-Form

46 P-4-3 Unloading & Inspection : DCSP 46 ProcessRemarks ※ 1:Inspectors check bay# card and seal number(s) against D/O ※ 2:Inspectors check if “DCSP Indication” on palletized merchandises. ※ 3:Inspectors can instruct drivers to move off loading bay to re- arrange merchandises. ※ 4:Check product code & its q’ty of merchandise against D/O, and also check cartons conditions. ※ 5:Lorry to move to Return-Goods bay and collect return-goods, if requested by Office Move lorry to designed bay ※1※1 Hand over Register-Form, D/O to designated KLRDC staff Have Inspector’s acknow- ledgement on Register-Form Move the lorry off from the loading bay and put “DCSP Indication” Check Return-Goods Process Yes No ※2※2 ※4※4 Have KLRDC staff cut seal(s) on lorry Check Driver & helpers offload palletized merchandises by D/O ※3※3 Inspection Yes No Column on Register-Form for rejected items filled up by Inspectors OK NG Return-Goods ※5※5 Not Have Have Driver go to Office to have Receive-Note and stamp on Register-Form

47 7  Violation of RDC Delivery Regulations  Drivers & all helpers don’t attend inspection.  Occupy bays long time due to improper loading of merchandises.  Sorting merchandises for XD in bay and in lorry.  Dispute about RDC’s classification of damage. Restriction Cases may be taken as damaged-goods P-4-4 Inspection Procedures HTSM

48 ProcessRemarks ※ 1: Driver check receiving goods against GRN. Have GRN from Office in Register Offloading merchandises and move to GRN area with lorry RDC staffs correct GRN statements Check P-5 Goods Return ※1※1 Hand over GRN to RDC staff and Receive Goods to take back OK NG Drivers make signature on GRN as receiving acknowledgement Drivers have GRN column on Register-Form filled by RDC staffs Driver go to Office to have R and stamp on Register-Form

49 ProcessRemarks ※ 1 Lorry must come to guardhouse within 10 min. after getting RN. ※ 2:Guards inspect lorry compartment and confirm goods stated on GRN and/or Register form only on the carrier. ※ 3:Guards inspect drivers & helpers’ belongings. ※1※1 Have further instructions from RDC Inspection P-6 Security check before leaving NG ※3※3 Inspection Driver go to Office to have Receive-Note and stamp on Register-Form Move to Guardhouse and hand over GRN & Register-Form to Guards NG OK Have GRN from Guardhouse. Exchange Pass with driving license & ID card of all persons Leave KLRDC ※2※2

50 P-7 Rental Pallets HTSM

51 Sample - Delivery Order : XD 8010 RDC-KL

52 Sample - Delivery Order : Consolidation RDC-KL RDC-KL (CONSOLIDATION) 8011

53 Sample - Delivery Order : SP 8012 RDC-KL (STOCK POINT) RDC-KL

54 Sample - Appointment Booking Form

55 Sample - Appointment Booking Form

56 Sample - Registration Slip

57 Sample - Receiving Note (RN)

58 Sample – Label Order Sheet

Draft Update Log DateLog 2013 Jan 14 th 1 st Circulation for review/feedback from SCM (Operation) & Hitachi 2013 Feb 08 th Discussed with HTSM and SCM team during the Friday’s meeting Feb 09 th Merged the ‘Requirements’ into the slide after sorting Feb 09 th SUGA checking & amend 2013 Feb 13 th HTSM inserts some slide and rearrange order of slides Feb 14 th SUGA combined Aeon & Hitachi slide 2013 Feb 14 th WiS added Sample of Carton Sticker & Price Label 2013 Feb 17 th SUGA combined Aeon & Hitachi slide 2013 Mar 27 th & 28 th *Supplier’s Briefing Session