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

2. 2 Table of Content 1.Overview 2.Process 3.RDC Access 4.RDC Rules & Regulation 5.Contact Person 6.Document Sample

3. 3 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.

4. Overview  RDC located at Bandar Baru Bangi.  Monday to Saturday, 07:00 to 20:00, 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 – 20:00 (Monday to Saturday) 07:00 – 20:00 CS (8010) SP (8012) 08:00 – 20:00 (Monday to Friday)

5. 5 Process Flow AEON HQ 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

6. Location Details 6 Address: AEON Kuala Lumpur Distribution Centre (KL RDC) Jalan 6C/13, Off Persiaran Kemajuan Taman Persiaran Bangi 43650 Bandar Baru Bangi Selangor Darul Ehsan Telephone (Hunting Line): - To be advised later - Fax: - To be advised later - GPS: 2.9476398, 101.7608969 2.9476398N 101.7608969E 2°56'51.5033''N 101°45'39.2288''E

7. 100 ㎞ ： DC ： Store 5㎞ 5㎞ Klang Valley DCKL DCSA KL RDC Map 7

8. 8 Map to AEON KL RDC – Route 1 KL RDC

9. 9 Map to AEON KL RDC – Route 2 KL RDC

10. Traffic Flow 10 WAREHOUSE ONE WAY Lorry Waiting Area GUARD HOUSE Persiaran Kemajuan Jalan 6C/12

11. 11 Supplier Delivery Guidelines Booking to KLRDC 1 Booking Form Register to our Security Guard 3 Register lorry & drivers to our office 4 Registration Form Unloading & Inspect goods 5 Receive “Receive Note” 6 RN Arrive RDC 15min before appointment 2 Pick up goods to take back, if any 7 *GRN Inspection by our Security before leaving 8 Gate Pass * See attached Flow Chart for the details N Day = Day you deliver goods to RDC N-1 day Driving License

12. 12 Supplier Booking Guidelines 1N-1 3N 4N 5N 6N 2N 7N GID SuppliersDayAppointment Suppliers * You need to make booking 1 working day before, if N-1 day is Sunday and/or National holidays

13. 13 Delivery Appointment  Supplier must comply to the agreed window time at all time. *AEON RDC team will discuss window time with supplier.  On Time allowance: 30 minutes before and 15 minutes after the appointment time.  Supplier has to make a delivery appointment with Centralized Booking Team at least 1 day in advance before the PO delivery date within booking hour from 08:00 to 16:00 either via: 1) Email (preferably) or fax by 12:00 RDC will reply by 15:00. 2) Phone call by 16:00.  Supplier to call Centralized Booking Team by 16:00. If fails to get a reply on Booking Number from RDC. Each lorry will be issued with a Booking Number.  Supplier to provide details of 1. Supplier’s code & name 2. Delivery date 3. Appointment time 4. PO quantity 5. Size and number of lorry to be delivered

14. 14 Requirement – Quality Management RefDetailsXDCSSP 1All supplier should follow all AEON Merchandiser's business standard. OOO

15. 15 Requirement – Delivery to RDC RefDetailsXDCSSP 1 Suppliers only allowed to bring B2B (WEB-EDI) DO hard copy upon delivery to RDC. Other documents such as Supplier Invoice / Supplier DO is not necessary. OO 2 Supplier must issue the DO as per the actual delivery item & quantity or supplier shall be liable for a penalty from the merchandising side. OOO 3 Supplier must comply to the agreed window time at all time. All supplier must call, fax or e-mail to RDC to get an appointment one day before. Delivery may rejected by RDC if no appointment is made. OOO

16. 16 Requirement – Delivery to RDC RefDetailsXDCSSP 4 Delivery cancellation (with appointment) must inform RDC via email/fax at least 1 day before delivery day (by 4.00pm) or supplier shall be liable for a penalty from the merchandising side. OOO 5 If delayed more than 15 minutes from the appointment time, supplier must wait queue & become last supplier to receive for the day for their 1 st time offence & will be rejected if repeated if it is their 2 nd time onwards' offence. OOO 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. OOO

17. 17 Requirement – Delivery to RDC RefDetailsXDCSSP 7 3rd party transporter is allowed to bring more than one suppliers' merchandise. Transporter must arrange the merchandise by each supplier separately during receiving. OOO 8 Car strictly will not be permitted on site. All supplier lorry must be suitable for transporting & maintain merchandise' security & quality condition. (Example: Box Lorry). RDC will have the right not to receive if this is not follow. OOO 9 Bay height is 1300mm so supplier’s vehicle’s specifications preferably should match with this height. OOO

18. 18 Requirement – Receiving RefDetailsXDCSSP 1 Delivery in cartons designed for another pack size or another size of goods or not properly labeled will be rejected. The use of re-used carton box is not permitted and must be secured for multiple handling. OOO 2 Mixed item in one carton must have a separator. RDC have the right to reject the item if this condition is not followed. OOO 3 As for XD item, carton box must be clearly labeled with the Carton Label which could be purchased from RDC. O 4 As for food item, carton box must be clearly stated with product expiry date. OOO

19. 19 Requirement – Receiving RefDetailsXDCSSP 5 Consolidation cargo Packaging must be Standard Carton O 6 Helper to assist the Receiver minimum requirement: - 20 ton truck = 1 Driver + 2 helper - 10 ton truck = 1 Driver + 1 helper - <10 ton truck = 1 Driver OOO 7 Price tag/label not attached for each of the merchandise (except food line). RDC have the right to reject if each of the merchandise not attached with price tag/label. Clothing / Soft merchandise = Price Tag Other boxes / Hard merchandise = Price Label OOO

20. 20 Requirement – Receiving RefDetailsXDCSSP 8 For Source Mark Barcode / Price Tag / Price Label cannot scan RDC to reject if Item Barcode & Price Tag can’t scan OOO 9 Supplier must seal the carton after scanning is completed with supplier own sealer (masking tape). OOO 10 Supplier must attend together with RDC Receiver during receiving process. OOO 11 Supplier allowed to bring only “AEON" merchandise into RDC and exit with empty condition, except damaged/returned merchandise. OOO

21. 21 Requirement – Receiving RefDetailsXDCSSP 12 Supplier Arrangement must followed with - By PO & Store [XD Receiving] - By PO [Consolidation] OO 13 Receiving Note (RN) is the final proof of actual received goods, after which no dispute is acceptable. OOO 14 Once receiving completed, during the same day driver must check, acknowledge and collect all documents, i.e. supplier delivery documents (including pallet docket, if any), Receiving Note (RN) as well as rejected stocks / extra stocks / damaged item. RDC have the right to charge additional storage cost if supplier not collect the rejected item OOO

22. 22 Requirement – Palletize RefDetailsXDCSSP 1 Supplier to deliver in palletize format with tower form arrangement maximum height of 1600mm included the pallet height, with a standard Ti - Hi arrangement for all pallets. Note: Ti = number of carton per layer, Hi = number of layer per pallet OOO 2 Supplier have to rent pallets until 30 days after "cargo released" to RDC if uses a rental pallet provider. OOO 3 As for palletize delivery, only a standard 1100mm X 1100mm or 1000mm X 1200mm, 4-way pallet with a minimum carrying weight 1000kg only are allowed. OOO

23. 23 Requirement – Palletize RefDetailsXDCSSP 4 Pallets must be properly secured with sufficient stretch films to ensure stability and no over hanging from pallet. OOO 5 Stacking are not allowed to contains more 1 PO in 1 pallet, and must have same expiry date (for food item). OOO 6 Pallet arrangement according to DO / SKU sequence inside lorry for consolidation. Supplier must know to show or informed how to unload pallet according to DO. OOO 7 Paste pallet indication on pallet to identify number of pallet for each PO. OOO

24. 24 Requirement – Palletize label Light weight boxes (Upper side) heavy weight boxes (Lower side) label Exp 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 for unloading (3) Stuck so that we can check the label (4) Please stuck light weight items on upper side Please stuck heavy items on lower side

25. 25 Requirement – Palletize Item Code A Item Code B Item Code C Item Code A Item Code B Item Code C 2.Stock Point and Consolidated (1) Unload by item (1 item 1 pallet) (2) Use the PL for unloading

26. 26 Requirement – RDC General Rule RefDetailsXDCSSP 1RDC is not liable for any missing documents or un- collected stocks after issuance to driver or in the event driver refuses to collect. OOO

27. 27 Requirement – RDC General Rule Photo of NG appearancePhoto of OK appearance NGOK

28. 28 Requirement – RDC Reject Cases RefProcessCase 1Security Control Delivery without 1 day prior booking 2Security Control Delivery more than 15min late from appointment 3Security Control Drivers and staffs in improper dress 4Security Control Delivery by improper lorries/cars 5Security Control Drivers and staffs with bad manners/behaviors 6Security Control Drivers and staffs violating KLRDC regulations 7Security Control Lorries not sealed or with different seal number from one on D/N. 8Security Control Lorry having goods of other suppliers and having goods for other destinations. 9Inspection Damaged items & extra items against the order 10Inspection Goods for XD not separated store by store in lorry 11Inspection Goods for XD without store labels and/or labels we can not scan. 12Inspection Delivery without sufficient number of unloading helper 13Inspection Goods for Consoli/DC without designated paper on every carton/pallet 14Inspection Price tag/label not attached for each of the merchandise (except food line). RDC have the right to reject if each of the merchandise not attached with price tag/label. Clothing / Soft merchandise = Price Tag Other boxes / Hard merchandise = Price Label 15Inspection For Source Mark Barcode / Price Tag / Price Label cannot scan

29. 29 Requirement – Impose Penalty RefCasesRate 1Delivery more than 15min late from appointment RM50.00/Lorry 2Delivery cancellation without notice before appointment time 3Delivery without booking in time 4Unloading uncompleted in designated time flame 5Fail to separate goods store by store in lorry 6Fail to bring enough tapes to seal boxes after inspection 7Fail to attach designated indications onto cartons/pallets. 8Fail to follow Loading Requirements 9Fail to bring dockets for rental (Loscam / Chep / etc) pallets 10Fail to collect goods to take back RM10.00/carton/day

30. 30 Contact Person Category Person In Charge TelephoneE-Mail Delivery Appointment Centralized Booking Team To be advised Logistic Matter AEON RDCTo be advised Merchandise Matter AEON Merchandiser -- B2B Matter Helpdesk 03–2161 1088 Mon to Fri 09:00 to 18:00 helpdesk@b2b.com.my Other Inquiryaeondcsupplierfeedback@aeonretail.com.my

31. 31 Supplier’s Acknowledgement Supplier are required to submit the undersigned agreement of the RDC Delivery Requirement by 30 th April 2013. Sample

32. 32 Reference: Delivery Order (Cross Dock) 8010 RDC-KL 80101000222966

33. 33 Reference: Delivery Order (Consolidation) 80111000245146 8011 RDC-KL RDC-KL (CONSOLIDATION) 8011

34. 34 Reference: Delivery Order (Stock Point) 8012 RDC-KL (STOCK POINT) RDC-KL 80121000006342

35. 35 Reference: Appointment Booking Form

36. 36 Reference: Registration Slip HITACHI TRANSPORT SYSTEM (M) SDN. BHD. (173682-T)

37. 37 Reference: Receiving Note (RN)

38. 38 Reference: Gate Pass (Exiting the DC) HITACHI TRANSPORT SYSTEM (M) SDN. BHD. (173682-T) JALAN 6C/13, OFF PERSIARAN KEMAJUAN TAMAN PERSIARAN BANGI 43650 BANDAR BARU BANGI SELANGOR DARUL EHSAN. TEL: 03 – 8926 2020 FAX: 03 – 8926 4040

39. Draft Update Log DateLog 2013 Jan 14 th 1 st Circulation for review/feedback from SCM (Operation) & Hitachi discussion. 2013 Feb 08 th Discussed with HTSM and SCM team during the Friday’s meeting. 2013 Feb 09 th Merged the ‘Requirements’ into the slide after sorting. 2013 Mar 27 th & 28 th *Supplier’s Briefing Session