AEON KL RDC Supplier Briefing 27th , 28th March 2013 AEON CO. (M) BHD. AEON GLOBAL SCM SDN. BHD.

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; An increased in availability leading to increase your sales Priority delivery to all AEON stores Faster replenishment to stores Higher frequent deliveries to stores Reduction in administration matter for supplier 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. AEON Global SCM Sdn. Bhd.

Temporary DC (Kajang)* DC Network Before New (2013) Final Target (2015-) DCSA (Shah Alam) Temporary DC (Kajang)* KL RDC (Bangi) Hamper (8007) Hamper (8007) Hamper KL RDC (Bangi) XD/Consoli (8005) XD/Consoli (8010) XD/Consoli This is the Final Slide. SCM Mid term Plan already explained main points, So, I would like to present SCM Slogan of 2013 . In order to support “ Company Growth ” SCM team will do our best for “ Handling Volume Growth” and connect to “Logistic cost Reduction” Thank you for your time. DCKL (PJ) Stock Point (8008) Stock Point (8012) Stock Point DCKL (PJ) SSDC (8013) SSDC *Temporary DC (Kajang) will be combined to KL RDC(Bangi) from 2014

RDC Transfer Schedule Guideline Function Current DC Final Date New DC Starting Date DC code Date Dc code DC SP SL HL *except EA Receiving 8008 30/04 (Tue) 8012 06/05 (Mon) FL EA* *except HQ order XD Consoli 8005 31/05 (Fri) 8010 01/06 (Sat) GRN Collecting from DC 14/05 (Tue) 03/06 (Mon) Hamper 8007 Closed 20/05 (Mon)

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

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

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

KL RDC Address & Contact AEON KL Regional Distribution Centre (KL RDC) c/o Hitachi Transport System (M) Sdn. Bhd. Jalan 6C/12, Off Persiaran Kemajuan Taman Persiaran Bangi 43650 Bandar Baru Bangi Selangor Darul Ehsan Telephone (Hunting Line): 03 – 8913 1083 Fax: 03 – 8913 1094 GPS: 2.9476398, 101.7608969 2.9476398N 101.7608969E 2°56'51.5033''N 101°45'39.2288''E

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

(Ref.) Booking GID Suppliers Normal Suppliers Process Date Remarks Day:N-1 08 : 00 | 17 : 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- ※5:Do by mail or fax only. Booking by call is NOT acceptable. Day:N ※1 GID Suppliers No Yes GID Suppliers Normal Suppliers ※2 ※3 ※4 Check volume Excess GID Booking Form Booking Form ※5 Not Excess Send to KL RDC Get Booking# Delivery to KLRDC on appointed time Booking Centre E-Mail: aeon-booking@tsm.hitachi.com.my Fax: 03 – 8913 1094 Booking must be done to Booking Centre within 08:00 - 17:00 of 1 working day before delivery time. Food Line Supplier 8:00 – 12:00 ; Hard & Soft Line Supplier 13:00 – 17:00. Suppliers must check with KL RDC Booking Control Officer, if Booking# are not given after 1 hour after booking. The phone # is : 03 – 8913 1080 & 03 – 8913 1081 (line activated after 1st May 2013). Drivers must arrive and register his lorry to Guardhouse 30 minutes before appointment time. Cancellation must be done by 17:00 of 1 working day before delivery date booked. Delivery without booking can be rejected.

Sample - Appointment Booking Form

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

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

1-3 RDC Access Route 1 KL RDC

1-4 RDC Access Route 2 KL RDC

1-5 RDC Traffic Flow Persiaran Kemajuan WAREHOUSE Jalan 6C/12 GUARD ONE WAY Persiaran Kemajuan WAREHOUSE GUARD HOUSE Lorry Waiting Area Jalan 6C/12

2-1 Requirement – Documentation Ref Details XD CS SP 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.

2-1 Requirement – Documentation Ref Details XD CS SP 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. 

3-1 Requirement – Packing Specifications(Cartons) Ref Details XD CS SP 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.

3-2 Requirement – Packing Specifications(Cartons) Ref Details XD CS SP 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.

3-3 Requirement – Packing Specifications(Cartons) 1 2 3 4 Item A Item A Item B Item A Item A Item A Item B Plain carton Item A Item A Separator Item B Plain carton Plain carton Item B Plastic Bags Items Items Cartons

3-4 Requirement – Carton Sticker & Price Label 60mm 30mm 35mm 60mm

3-5 AEON Carton Label 1 Send RDC “Label-Order Sheet” by fax latest by 15:00 N-1 day 2 Have invoice for the labels from RDC by fax N-1 day 3 Bring cheque / bank draft for the invoice amount with the invoice N day 4 Have labels and receipt from RDC against check N day ※N Day = Day you pick label s from KLRDC . Booking Centre Fax: 03 – 8913 1094 Tel: 03 – 8913 1082 Restrictions Purchase label without 1 working day prior order by designated order sheet. Payment term through bank draft / cheque only. Paid to Hitachi Transport System (M) Sdn. Bhd. Account Number 1247-0003287-05-3 Cheque with RDC invoice copy. Cheque without RDC invoice are not acceptable. Dispute about labels quantity after receiving RDC receipt. Minimum order qty 100pcs / single store and combine store minimum qty 1000/pcs

4-1 Requirement – Packing Specifications(Palletize) Ref Details XD CS SP 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 wooden 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.

4-2 Requirement – Packing Specifications(Palletize) Ref Details XD CS SP 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.

5-1 Requirement – Delivery Booking Ref Details XD CS SP 1 Supplier must comply to the agreed window time at all time. All Appointment supplier must call, fax or e-mail 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 email/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

6-1 Requirement – Transportation Ref Details XD CS SP 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

6-2 Requirement – Transportation Ref Details XD CS SP 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 3rd 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.

6-3 Requirement – Transportation Ref Details XD CS SP 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

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

7-1 Requirement – Unloading : XD 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 ex. Store Code 1001 Light weight boxes (Upper side) Item Code A Code B Code C Store Code 1001 (in case of XD) Item Code A Code B Code C Store Code 1002 (in case of XD) label label label Item Code A Label Label Label Label Label Label Label Label Label Label Label Label heavy weight boxes (Lower side) label label label Item Code B Item Code C label label label

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

7-3 Requirement – Unloading : FOC 3. FOC item (1) Do not mixed with normal goods (1 FOC 1 pallet) (2) Attach “FOC” indication for FOC item (A4 size) Additional steps applied for SP (3) Attach “with FOC” indication for goods with FOC (A4 size) (4) Supplier Invoice as proof of delivery

Requirement – RDC Reject Cases Ref Case 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 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

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.

08:00 to 17:00 (1-day before delivery) Contact List (From 1st May 2013) Category Person In Charge Telephone Fax E-Mail KL RDC Delivery Appointment Booking Centre 03 – 8913 1080 03 – 8913 1081 08:00 to 17:00 (1-day before delivery) 03 – 8913 1094 aeon-booking @tsm.hitachi.com.my General Inquiry 03 – 8913 1083 09:00 to 19:00 To be advised KL RDC 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 KL RDC Suppliers Manual by 30th April 2013. FAX : 03 – 9207 2006 Email: aeondcsupplierfeedback@aeonretail.com.my Sample

Hamper Centre Location HC HC

Hamper Centre Address & Contact AEON Hamper Centre c/o Hitachi Transport System (M) Sdn. Bhd. Lot 37/38, Jalan P4/6 Taman Teknologi Kajang 43500 Semenyih Selangor Darul Ehsan Telephone (AEON Office): - To be advised - Fax: GPS: 2.962215,101.812368 2.962215N 101.812368E 02°57'43.9740“N 101°48'44.5248"E