Current Date To: KROGER DSD (Direct Store Delivery ... - Kroger EDI

Current DateTo:Re:KROGER DSD (Direct Store Delivery) suppliersAccounting & KAM ContactsAddressKROGER DSD complianceBe advised for any billing disputes to be considered, the following conditions must be met:1. All product deliveries must be accompanied with an authentic invoice, which includesan itemized list of the product delivered and their accurate costs. The invoice must be uniqueand easily identified by its invoice number with Kroger approved UPC numbers. Kroger Storescannot pay off of alternate documents such as packing lists, statements or bill of ladings.2. All merchandise must be entered through the DSD Receiving Dock (“through the Back Door”)and the DSD system via DEX, NEX or vendor scanning the invoices item by item (line itemreceiving). Scan Based Trading (SBT) is also an option for most DSD vendors. In such casesline item receiving is not possible; the receiving clerk will use an alternate entry method toproduce a store invoice document or “ticket”. This is mandatory for all credit and chargeinvoices. The following “Exception Vendor” deliveries must provide electronic invoicing:Third Party Delivery Services (e.g. UPS or FedEx)Cross Dock deliveriesOutside Window Exception Vendors (Off-Hours)Acceptable invoicing methods:NEX - Find NEX EDI information at http://edi.kroger.com.DEX – Direct ExchangeSBT - Allows the vendor to be paid for product based on what scans across theregister. These systems will prevent the loss of invoices and delayed payments. Forscan based trading solutions please contact the Kroger SBT Manager.3. When the receiving clerk has completed the invoice check-in, they will provide the supplierwith a “Receiving Invoice Report” as the proof of delivery. This is also commonly known as a“ticket”. The ticket must accurately reflect the supplier’s invoice number and productsactually delivered. It must also have a status of “closed”. Store personnel will not sign anyinvoices. The closed “ticket” is the only valid proof of delivery for any disputed invoiceissues.4. If your product is delivered via UPS or cross-docked through a Kroger Distribution Center, italso must be delivered through the DSD Receiving Dock (“through the Back door”) and thecarrier’s signed delivery notification tracking document or the DC documentation mustaccompany the original invoice as that supplier’s proof of delivery. All third party or crossdock deliveries are “Subject to Count” meaning:

In the case of UPS and cross dock suppliers, this documentation does not guaranteethat all products on the invoice are authorized or that the product delivered isaccurate to the product invoiced. If product is missing, mispicked or not authorizedthose lines on the invoice may not be paid.In the case of Outside Window Exception Vendors (Off-Hours) vendors, the same rulesapply for missing, mispicked or not authorized items.5. The supplier is responsible for checking the store “Receiving Invoice Report” for accuracybefore leaving the store. Invoice discrepancies must be corrected at that time. Pricing issuesare considered out of the control of the receiving clerk and adjustments to make costs matchshould not be attempted. The supplier’s pricing department should then contact the KrogerDSD Retail Operations Department (address in section 7).6. In the case of suppliers, which deliver outside of our normal receiving hours, they also needto deliver through the DSD Receiving Dock (“through the Back Door). The product andinvoice must be verified for accuracy. Any discrepancies are to be noted on the invoice andinitialed by the supplier and the store management person. The vendor must enter the invoiceelectronically into the store systems using one of the methods listed in section 2. The invoicewill be electronically received and closed the next day, and a “ticket” will be produced andretained for the supplier at the store for fourteen days. It’s the supplier’s responsibility toobtain this ticket as their valid proof of delivery within the fourteen-day window. If thestore will not provide a supplier with this document and they are within the fourteen-daywindow, immediately contact Kroger DSD Operations (email below).Effective April 25, 2010, all Outside Window Exception Vendors (Off-Hours) as well as UPStype and cross-dock vendors will be required to invoice in an Electronic Data Interchange(EDI) format. The acceptable types of EDI format are: DEX Invoicing Not for cross-dock NEX Invoicing ASN Advanced Ship Notice EDI Form 857 Scan Based Trading (SBT)7. STORES ARE NOT TO BE CONTACTED REGARDING BILLING ISSUES older than 28 days.They have been instructed to discard any billing discrepancies sent to the store. They will notforward these issues to Kroger. Suppliers are to submit all such billing inquiries to Kroger’s DSD OperationsDepartment Attention: Kroger DSD Operations1014 Vine StreetCincinnati, OH 45202OrCorpDSDCOE@kroger.com8. Billing inquiries must have a copy of the original invoice accompanied by a closed “ReceivingInvoice Report” or UPS documentation as proof of delivery. Kroger will not consider anyinvoice without the proper documentation (no BOL, manifest without invoices). Please sendall cost discrepancies to Kroger the address listed in section 7.

9. Kroger will only research invoices from 60 – 180 days past the original invoice date. Thisallows ample time for the supplier’s terms to have passed before they start the researchprocess.10. Any billing inquiries must be resolved within 180 days of the original invoice date. Thisprovides a 120-day window for Kroger to identify and fix legitimate claims.11. Do not submit these requests before your payment terms have been met. If a suppliercontinually submits request for open receivables and Kroger finds that the payments havebeen made but the request was made too early, Kroger may choose to discontinue researchinginvoices for these suppliers or charge the vendor for the unnecessary research.Any questions concerning this, or any other DSD receiving policies and/or procedures should bedirected to the KROGER DSD Operations Manager @ 513-762-1132.Controller VP – Operations VP – Merchandising_________________ ___________________ ______________________KROGER DSD ComplianceSignature PageVendor:___________________________(Legal name of entity)Dba:________________________________By:_______________________________(Signature)Printed Name:________________________Date:______________________________Phone:______________________________Email:_____________________________Fax:________________________________RETURN SIGNED ORIGINAL OF THIS PAGE TO:KROGER DSD Operations ManagerKROGER Corp. Main Office1014 Vine StreetCincinnati, OH 45202