PERISHABLE TRANSFER CENTRE (PTC) - Supplier Manual - PENDING: ÆON GLOBAL SCM Sdn. Bhd. (1025615-V) Ver. 1-1 (Effective Date: 06th Dec 2013)

Agenda PTC Overview Requirements 1) PTC General Rules 2) Documentation 3) Packing Specifications(Cartons) 4) Packing Specifications(Palletize) 5) Delivery Booking 6) Transportation 7) Unloading Summary - PTC Reject Cases /Cases Penalty imposed Contact List Supplier’s Acknowledgement PENDING:

Overview PTC located at Bandar Puchong. PENDING: Monday to Saturday, 07:00 to 19:00, exclude peak season. Manage AEON warehouse facility – Cross Dock (XD) & Consolidation (CS). Cross dock & Consolidation items are an amalgamation of store demand and will be dispatched in 24 hours upon receiving at PTC. No stock held in PTC. Cater for existing AEON stores and subsequent new stores. Distribution Centre Store Code (PTC Code) Receiving Hours Office Hours PTC XD () 07:00 – 19:00 (Monday to Saturday) 09:00 – 18:00 CS ()

PTC Location PENDING: Klang Valley PC CDC HC KL RDC ： DC ：Store 5㎞ 　100㎞ CDC HC KL RDC 　5㎞ 　　　　： DC 　　　　：Store

PTC Address & Contact Address: PENDING: Address: AEON Perishable Transfer Centre (PTC) c/o Cold Chain Network (CCN) No. 3, Jalan Perindustrian Puchong Bandar Metro Puchong 47160 Puchong, Selangor Darul Ehsan Telephone (Hunting Line): 03 – 8060 4764 Fax: 03 – 9207 2007 GPS: 3.040369,101.604045 3.040369N 101.604045E 3°02’25''N 101°36’14''E

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

Supplier Delivery Process - Document - PENDING: 1 Arrive RDC 30 min before delivery time 2 Security check by Guards Driving License Registration Form Appendix P-1 3 Register lorry & drivers to KL RDC Office DO Registration Form Appendix P-2 4 Unloading & Merchandises Inspected Registration Form Appendix P-3 5 Receive “Receiving Note” RN Registration Form Appendix P-4 6 Inspection by our Security before leaving Registration Form Appendix P-4 * For the Details, Please refer each “Process Guideline”

Lorry Dimension (Horizontal) W2 PENDING: XX m XX m W1 H2 H1 XX m XX m

Lorry Dimension (Vertical) - Type A Cooling Unit XX m L2 XX m L1

Lorry Dimension (Horizontal) - Type A Lorry Size L2 L1 5 Tone 13 Tone 20 Tone ____ Tone

Lorry Dimension (Horizontal) - Type A Cooling Unit H3 H2 XX m H1 XX m XX m

Lorry Dimension (Horizontal) - Type A Lorry Size H3 H2 H1 5 Tone 13 Tone 20 Tone ____ Tone

PC Tray Dimension Type A ~ 33 Ltr Type B ~ 16 Ltr Dimension: 155mm(H) X 410mm(W) X 630mm(L) Dimension: 85mm(H) X 410mm(W) X 630mm(L)

Cart Rack with Thermo Cover Dimension: ____mm(H) X ____mm(W) X ____mm(L) Material: ____ Weight (Empty): ____kg Weight (With Thermo Cover):

Cart Rack with Thermo Cover From Front View

Cart Rack with Thermo Cover (Sample) From Top View Too big empty space Too big empty space

Cart Rack with Thermo Cover (Request) From Top View Empty space just nice Empty space just nice

Delivery Material Comparison Cart Rack with Thermo Cover

Lorry Dimension (Vertical) - Type B PENDING: XX m L1 L3 XX m XX m

Lorry Dimension (Data) PENDING: Lorry Size W1 W2 H1 H2 L1 L2 4 tone 10 tone 13 tone 18 tone 20 tone

Business Unit Development Meeting

Project Roadmap 2013 2014 2015 Reconstruction of New PTC (AB & AM) Perishable Network New PTC (AB & AM) Supplier management Quality Standard requirement PTC operation requirement Store handling requirement Volume handling growth Logistic optimization (internal) Group Synergy AEON (M) PTC 1st Phrase AEON Group CDC ASEAN Network Support AB Study AEON Big CDC

Cold Chain Integration Focus Load Integrity Conditional demand Product Origin / Destination Distribution Transport Integrity

Integrate delivery by centralized at PTC Current Issue, Proposal & Benefits Total Company Huge separate logistics cost PC & PTC & Direct Delivery Integrate delivery by centralized at PTC Reduce delivery cost, reduce cost price Merchandiser Difficulties of forecasting supply demand each store Centralized demand supply Mgmt High risk of Shipment Integrity Lower risk of Shipment Integrity Store MMD Many Direct Delivery at stores’ loading bay Less receiving time; stores’ loading bay Store Foodline Staff Daily Working Schedule based on delivery One shot delivery; one team task. PC PC need to manage logistics; clash of interest PC could focus on production area Supplier Delivery lead time longer; Need to plan logistics Lead time more efficient Customer Quality based on each store might be different One standard quality checking

Roadmap *Slide based on presentation by En. Ahmad Zaid

Schedule Overview for AEON (M) PTC Team No. Action 2013 2014 Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul AEON (M) 1 D&D Volume Growth Schedule 2 Management approval of PTC (Phrase 1) 3 Negotiation temporary extension CCN contract 4 Supplier Management 5 QC Standard AGSCM New Delivery Material Comparison IT preparation and UAT test Study overall logistic flow Study overall PTC volume Start D&D volume growth

60% all chilled supplies to AEON using PTC AEON (M) PTC Volume Development 60% all chilled supplies to AEON using PTC

PTC Logistic Flow OPTION A: OPTION B: Suggestion: PC (Metro Prima) PC (Bdr. Puchong) AEON Store PTC OPTION A: 2 lorries X 28km 2 lorries X 28km 1 lorry X 2km Total distance = 116km 1 lorry X 2km OPTION B: 2 lorries X 28km 1 lorry X 28km 1 lorry X 28km 1 lorry X 2km Total distance = 114km Suggestion: To choose OPTION B. By this option, space utilization, lead time and optimum cost achieved (1.75%/month savings).

PTC Logistic Flow OPTION A: OPTION B: Suggestion: PC (Metro Prima) PC (Bdr. Puchong) AEON Store PTC OPTION A: 2 lorries X 28km 2 lorries X 28km 1 lorry X 2km Total distance = 116km 1 lorry X 2km OPTION B: 2 lorries X 28km 1 lorry X 28km 1 lorry X 28km 1 lorry X 2km Total distance = 114km Suggestion: To choose OPTION B. By this option, space utilization, lead time and optimum cost achieved (1.75%/month savings).

PTC Delivery Material Comparison Hand Carry Cargo Cover Cart Rack + Thermo Cover Picture Price/Unit MYR 227.149 MYR 800.000 MOQ 30 unit 125 unit PC Tray Capacity (Tray 16Ltr) 5 tray/unit 32 tray/unit Average Tray Usage /Day 1,021 tray Average Usage /Day 204 unit 32 unit Total requirement (4-Day TOD) 816 unit 128 unit Cost per Tray Inc. D/Material MYR 45.385 MYR 25.07 Total Cost (4-Day TOD) MYR 185,353.584 MYR 102,400.000 Suggestion: To choose Cart Rack + Thermo Cover. The material handling easy by staff and more cost efficiency. Different of 55%.

D&D Volume Growth Summary OCT 2013 NOV DEC JAN 2014 FEB MAR D&D Volume Growth RM 30,000 PC Volume RM 35,000 Total PTC Volume RM 100,000 RM 383,000

D&D Volume Growth Schedule Supplier Code Supplier Name OCT 2013 NOV DEC JAN 2014 FEB MAR 40541 NESTLE PRODUCTS SDN BHD RM 30,000 30430 SUSU LEMBU ASLI MARKETING SDN. BHD. RM 35,000 30368 COTRA ENTERPRISE SDN. BHD. 30694 TEIK SENN (M) SDN. BHD. 30759 PERMANIS SANDILANDS SDN BHD 31100 F & N DAIRIES (MALAYSIA) SDN. BHD. 32352 MAMEE-DOUBLE DECKER DISTRIBUTION (M) S/B 39845 JULIE'S MARKETING SDN BHD 41947 LUCKY FROZEN SDN BHD 44415 PIKZERN MARKETING SDN BHD

D&D Volume Growth Schedule Supplier Code Supplier Name OCT 2013 NOV DEC JAN 2014 FEB MAR 44660 MAX FOOD ENTERPRISE (M) SDN BHD 45357 DUTCH LADY MILK INDUSTRIES BERHAD 45829 GD MARKETING SDN BHD 48216 PERNIAGAAN LO SAM 52477 MALAYSIAN YOGHURT COMPANY SDN. BHD. 53449 FDP MARKETING SDN. BHD. 53457 POK BROTHERS SDN. BHD. 55611 LADANG ANGLO NUBIAN SDN BHD

6-4 Requirement – Transportation Trolley/Hand Carry Motor cycle Freezer Lorry Car Open Lorry Canvas Lorry

1-3 PTC Access Route PENDING: PTC

1-5 PTC Traffic Flow PENDING:

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1-1 PTC General Rule PENDING: Ref Details 1 PTC 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 PTC 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 PTC (Please refer 1-3, 1-4) 8 Follow PTC Traffic rules (Please refer 1-5 ). 9 Park lorries so that the lorries doesn’t block the traffic in PTC compound and along PTC entrance. 10 Suppliers follow PTC staffs’ instructions in PTC (incl. the surroundings).

1-2 PTC Dress Code O K N G PENDING: NO RDC Visitor Pass RDC Shirts Tied-in Shirts Tied-OUT No Bags Bags Long Pants Short Pants Shoes Sandals

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Requirement – Liquidated Damage Ref Cases 1 As per mentioned in ‘Distribution Centre Usage Agreement’ in Clause 4.2. 2 As per mentioned in ‘General Agreement’ in Clause 13. PENDING:

Contact List (Current) PENDING: Category Person In Charge Telephone Fax E-Mail PTC General Inquiry 03 – 8913 1083 09:00 to 19:00 03 – 8913 1094 PTC AEON Office 03 – 8927 3880 03 – 8927 3879 09:00 to 18:00 03 – 8927 3855 AEONDCManager @aeonretail.com.my AEON Merchandise & Ordering AEON Merchandiser 03 – 9207 2005 03 – 9207 2006 *Respective merchandiser B2B B2B Helpdesk 03–2161 1088 Mon to Fri 03 – 2161 0108 Helpdesk @b2b.com.my Other Inquiry aeondcsupplierfeedback@aeonretail.com.my

Supplier’s Acknowledgement Supplier are required to submit the undersigned acknowledgement of the AEON PTC Suppliers Manual by 30th Sept 2013. FAX : 03 – 9207 2006 Email: aeondcsupplierfeedback@aeonretail.com.my PENDING: