supplier_handbook

THE HOME DEPOT homedepot.com Supplier Handbook for homedepot.com Vendors Presented by: Wendy Hernandez, Sr. Analyst Team: Direct Fulfillment - Reverse Logistics

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 2 REVISION HISTORY: Application and Program Version Changes Modified By Date 1.0 Document Created Wendy Hernandez HDD – Reverse Logistics 11/30/2011 1.1 Updated shipping and transportation information Wendy Hernandez HDD – Reverse Logistics Leighanne Brown HDD – Transportation 12/30/2011 2.0 Updated document title and sections that conflicted with Supplier Reference Guide; re ‐ titled as a handbook for homedepot.com Suppliers. Received confirmation from Legal of handbook reference in overall Supplier Reference Guide. Updated Supplier Compliance contact information. Wendy Hernandez HDD – Reverse Logistics 12/14/2012 2.1 Minor verbiage updates to CHUB section; replace HomeDepotLink with Item Data Master (per Vicki Najor) Wendy Hernandez HDD – Reverse Logistics 12/26/2012

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 4 Product Data – Maintenance and Monitoring Suppliers are encouraged to review their product data immediately after launch to ensure that it is properly displayed on the homedepot.com storefront. Once products are live on the homedepot.com storefront, suppliers are responsible for:  Maintaining the product data and images  Informing The Home Depot Merchandising of any price changes, additions, availability and discontinuations that impact their items  Completing any additional attributes that are requested by The Home Depot  Shipping method and handling costs that are calculated according to the product attributes that were entered into Item Data Master. The supplier is responsible for updating this information if it changes The merchandise cost on purchase orders is pulled from Item Data Master. The supplier is responsible for monitoring costs to ensure accurate payment. The supplier should not send updated cost information on an invoice until a price change has been confirmed and completed by their DFM and/or Digital Content Associate. PDF Documentation and Uploads In an effort to assist our customers and our customer service team, we now require our suppliers to provide and upload the following documents in Item Data Master:  Assembly and/or Installation Instructions  Parts list/Parts breakdown  Warranty information The above documents should be uploaded for all items in PDF format (if applicable). ORDER INTERFACE AND PROCESSING Purchase orders (PO) are transmitted electronically to suppliers and retrieved through a browser/integrated application. Suppliers are required to enter into a contractual relationship with Commerce Hub in order to participate in the drop ‐ ship program. Commerce Hub (CHUB) Commerce Hub (CHUB) manages all transactions for homedepot.com. With the sheer volume of transactions that occur in the direct ‐ to ‐ consumer/drop ‐ ship environment, Commerce Hub (CHUB) provides a management tool to ensure high customer satisfaction. Through alerts and reporting, Commerce Hub (CHUB) helps both the supplier and The Home Depot identify the potential issues and make certain we meet the commitments to our customers.

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 5 Additionally, Commerce Hub (CHUB) helps us to scale the operation, support our own growth, lower the cost of doing business, while maintaining flexible connection options for our supplier partners. Rather than manually faxing orders and spending many hours exchanging phone calls for your order updates, we have engaged Commerce Hub (CHUB) to create and implement a proven system that automates the order fulfillment process for orders drop ‐ shipped directly to our customers. The system supports our business needs, reduces operating costs, and simplifies the way our trading partners do business with us. Commerce Hub (CHUB) supports all forms of electronic communication from browser to fully integrated systems. Commerce Hub (CHUB) - Benefits and Features  Allows suppliers to meet the electronic requirements for homedepot.com with few or no changes to their technological resources or infrastructure.  Multiple integration options including EDI, XML and a simplified web browser application.  Plug & Play electronic connectivity & compliance included branded packing slip.  Real ‐ time order status visibility and reporting. Commerce Hub (CHUB) – Supplier Set-up and Usage The Supplier will be contacted by a Commerce Hub Representative after successfully completing the Supplier Buying Agreement and Supplier Information Form. Suppliers are to:  Review the Commerce Hub (CHUB) agreement and rates  Select the appropriate solution for their business needs (e.g. web ‐ based or EDI integrated solution) The Supplier is responsible for integrating with Commerce Hub:  A unique Merchandising Supplier Number (MVNDR#) for BYO 25 will need to be assigned before integration can begin  Commerce Hub will provide all technical information, testing and training to the supplier for electronic interchanges Suppliers must be capable of fulfilling a PO in “eaches” – a single line item, single quantity orders. All line item quantities on a PO must be fulfilled and shipped complete. If all lines cannot be fulfilled, the supplier must cancel the line item(s) that cannot be fulfilled off the PO within one (1) business day of the PO being transmitted to the supplier. The remaining lines must be shipped within three (3) business days of the PO being transmitted to the supplier. A line cannot be partially shipped, but the PO can be. Suppliers must meet a 100% fill rate for standard fulfillment service orders. Standard fulfillment service level is considered 2 ‐ 3 business days from PO availability to shipment confirmation. For example, a PO received at 6:00 PM (after business hours) on Friday should ship by 5:00 PM Tuesday and the shipment confirmation should be available to The Home Depot on Wednesday. If the product ships on Wednesday, the end of the 3 ‐ day fulfillment window, the shipment confirmation must be submitted the

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 7 Definitions The following table outlines the data elements that the supplier must provide each day in the inventory feed to homedepot.com. Data elements that are “Not Null” require a data value and cannot be left blank: # Field Name Description Data Type Data Size 1 Supplier ID The Home Depot Contract Merchandising ‘M’ Supplier ID number that is department specific. May also be referred to as “MVNDR.” Numeric Not Null 8 2 Supplier Part Number The supplier part number as identified on the Supplier PO. Text Not Null 15 3 ID Number The ID number as it is identified in Item Data Master. Numeric Not Null 9 4 Quantity On Hand Quantity on ‐ hand refers to non ‐ allocated inventory. The number of the physical inventory on hand at the fulfillment center. Quantity on ‐ hand=non ‐ allocated inventory. Numeric Not Null 1 ‐ 6

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 8 FULFILLMENT Order Set-Up Participation in the homedepot.com direct fulfillment program requires that all suppliers develop and maintain capabilities to meet the homedepot.com branding standards. Inserts, other than standard manufacturer instructions and warranty information, are NOT allowed without the pre ‐ approval of the DFM. The homedepot.com team, prior to use, must approve all The Home Depot branded documents produced by suppliers for homedepot.com orders. This includes but is not limited to The Home Depot logo, shipping labels, packing lists, inserts and shipping cartons that are addressed below. Operational Procedures and Branding Guidelines The following branding guidelines should be used in coordination with existing format and order fulfillment systems to provide the most consistent homedepot.com branding experience across the drop ship supply base:  All suppliers may download an approved packing list via the browser interface from Commerce Hub or via their EDI connection to Commerce Hub.  Suppliers who implement an integrated interface with Commerce Hub may choose to create and print their own packing list. If a supplier chooses to create their own packing list, it must be sent to the On ‐ Boarding Manager for approval.  The shipping label and any other branding and/or shipping documents must also be submitted for approval.  Rejected branding documents must be modified to meet the branding specifications required by homedepot.com. Order Processing Orders from homedepot.com are transmitted via Commerce Hub (CHUB) throughout the business day. If the supplier has chosen the Commerce Hub “Web Browser” solution, the supplier is responsible for checking for new orders throughout the day. The shipping confirmation must include carrier name and tracking number and be submitted within three (3) business days of the PO being available to the supplier. Any open PO without a status (shipped or cancelled) after 4 business days from PO receipt is subject to cancellation. Timely and accurate shipment confirmations are extremely important to the fulfillment process. Confirming shipment of a PO with the Commerce Hub will include the PO #, carrier, and tracking/PRO number for the shipment. The receipt of this confirmation will produce three (3) results:  Enable the customer’s payment to be processed against their credit card,

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 10 Shipping service methods include:  Parcel Ground Delivery  Parcel Next Day Air Delivery  Parcel 2 nd Day Delivery  Oversized Delivery via Common Carrier/Less ‐ than ‐ Truckload (LTL) and  Home Delivery All shipments are Free ‐ on ‐ Board (FOB) Destination. The supplier is responsible for the product until it is delivered in “as ordered” condition to the “Ship To” customer – which includes providing adequate packaging to prevent damage under normal, in ‐ transit conditions, as well as product defects and/or mis ‐ shipments. NOTE : The process for handling freight claims, product defects, and mis ‐ shipments should not inconvenience the “Ship To” customer. Depending on the products offered by the supplier on the homedepot.com storefront, suppliers and homedepot.com determine which shipping service levels they will support. Please note the following with respect to shipping service levels:  Suppliers are required to adhere to the shipping label guidelines that identify homedepot.com as the shipper so that the supplier remains “invisible” to the “Ship To” customer (refer to the “Operational Procedures and Branding Guidelines” section in this document).  Suppliers are responsible for all freight claims, as outbound shipments are FOB Destination.  Any issues in making claims with the carriers should be escalated to the supplier’s homedepot.com Supplier Compliance Coordinator.

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 11 Commerce Hub Ship Methods The following data are the Commerce Hub (CHUB) ship methods provided via the purchase order: EDI850 PO Ship Method Identifier (Sent from CHUB to integrated suppliers) CHUB Order Details (CHUB Order Details Portal for non ‐ integrated suppliers) Carrier Mode and Service Level LC Least Cost Carrier (service not specified UPS or USPS UNSP_CG Ground (carrier not specified) UPS Ground UNSP_SE 2 nd Day (carrier not specified) UPS 2 nd Day UNSP_ND Overnight (carrier not specified) UPS Next Day Air UNSP_CG Ground (carrier not specified) UPS Ground MCC Miscellaneous Common Carrier LTL (Reference www.routingguides.com/hd ) LTL_G2 LTL Basic Service Home Delivery Basic Service (Suppliers will be assigned SEKO or Non ‐ Stop Delivery)

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 13 Carton Guidelines The following are guidelines for small package shipments. This information should also be used as guidelines for product orders to be shipped LTL or White Glove. TABLE A Maximum Weight of Box and Contents (lbs.) Maximum Outside Dimensions, Length, Width and Depth Added (inches) (see Note 3) Minimum Bursting Test, Singlewall, Doublewall or Solid Fibreboard (psi) (see Note 1, para. (a) or Minimum Puncture Test Triplewall Board) (inch oz. per inch of tear) (see Note 1, para. (b)) Minimum Combined Weight of Facings, Including Center Facing(s) of Doublewall and Triplewall Board or Minimum Combined Weight of Plies Solid Fibreboard, Excluding Adhesives (lbs. per 1,000 sq. ft.) SINGLEWALL CORRUGATED FIBREBOARD BOXES 20 40 125 52 35 50 150 66 50 60 175 75 65 75 200 84 80 85 250 111 95 95 275 138 120 105 350 180 DOUBLEWALL CORRUGATED FIBREBOARD BOXES 80 85 200 92 100 95 275 110 120 105 350 126 140 110 400 180 160 115 500 222 180 120 600 270 TRIPLEWALL CORRUGATED FIBREBOARD BOXES 240 110 700 168 260 115 900 222 280 120 1100 264 300 125 1300 360 SOLID FIBREBOARD BOXES 20 40 125 114 40 60 175 149 65 75 200 190 90 90 275 237 120 100 350 283

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 14 TABLE B Maximum Weight of Box and Contents (lbs.) Maximum Outside Dimensions, Length, Width and Depth Added (inches) (see Note 3) Minimum Edge Crush Test (ECT) (lbs. per inch width) (see Note 1, para. (c)) SINGLEWALL CORRUGATED FIBREBOARD BOXES 20 40 23 35 50 26 50 60 29 65 75 32 80 85 40 95 95 44 120 105 55 DOUBLEWALL CORRUGATED FIBREBOARD BOXES 80 85 42 100 95 48 120 105 51 140 110 61 160 115 71 180 120 82 TRIPLEWALL CORRUGATED FIBREBOARD BOXES 240 110 67 260 115 80 280 120 90 300 125 112

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 16 used as blocks or pads to cushion large items, such as furniture. Hexacomb or honeycomb is a good cushioning to use for corner supports. Sealing Cartons Tape Plastic pressure sensitive tape and water ‐ activated, reinforced Kraft paper tape are the only tapes that should be used to seal cartons. Do not use duct tape, masking tape, string or cellophane tape. The H ‐ Taping method is recommended for both the top and bottom of the carton. Stapling Staples are to be used in cartons holding over seventy (70) pounds. Staples should be placed no more than 2 ½ inches apart. Strapping Strapping should only be used on products shipped LTL and White Glove. Strapping must wrap around all sides of the carton. Double ‐ strapping each side is recommended. Be careful to have the right tension so that the strap remains in place, but does not damage the product. V ‐ board can be used on edges so that banding does not cut into the products outer carton during shipment. Strapping should not be the only measure of closure for the product, it should be in addition to tape/staples. Shipping Label It is always a good idea to place a duplicate shipping label inside each carton in case the outside label comes off. If items are bundled together (taped or strapped) it is recommended to place shipping labels on all items in case the tape/banding break during transit. Specific Product Categories Beds Use foam wrap to wrap each piece completely. Removable finials and legs should be carefully wrapped and contained, if separated from the main piece, carefully secured to the main piece in an area that will not cause damage to the item. Chairs Cover the entire chair with foam sheeting or a poly bag. Corrugated corner/bubble wrap/PPE foam/EPS foam must protect all legs and arms. The carton must be completely filled and surround the chair. Pairs of chairs should be individually wrapped, then stacked on one another and shrink ‐ wrapped together. Mark the outside of the carton with the verbiage, “QTY: 2”. The verbiage, “FRAGILE” and “ ↑ THIS END UP ↑ ” must be marked on all sides of the outer carton.

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 17 Electronics Electronics require special packaging and should always have another carton placed around the manufacturer’s carton for security purposes. The original manufacturer’s carton must be in excellent condition and the foam or Styrofoam mold around the product must be intact. The outer carton should be six (6) inches larger than the manufacturer’s carton on all sides. A minimum of three (3) inches of foam, air bags or peanuts should be put in the bottom of the carton and, after the product is packed, foam, air bags or peanuts should completely fill the carton. Fragile Items (such as Glass, Granite and Ceramics) Wrap each item separately in bubble wrap or foam sheeting and place a layer of cushioning at least three (3) inches thick on the bottom and tops of the product. There should be two to three (2 ‐ 3) inches of space on each side of the carton, as well as two to three (2 ‐ 3) inches of cushioning between each item. Securing heavier/larger items in a full encasing EPS die cut mold is recommended. Furniture (General Requirements) All furniture must be packed according to F ‐ PACK specifications. Shipping cartons should be a minimum of 275 lb. burst strength. All parts of the furniture that may come in contact with the cardboard must be protected with foam sheeting. All drawers and shelves must be wrapped or shimmed to prevent movement in transit. All hardware and parts should be secured to the product so that they can be found easily, but will not damage the furniture while in transit. Placing on the inside of the drawer face is an option. Assembly instructions should be secured inside the carton so they can easily be found by the customer. Foam sheeting or poly bags should cover all upholstered pieces and a corrugated tray should be placed in the bottom of the carton as extra cushioning. Smaller upholstered items can be placed in a heavy polyethylene bag. Mirrors/Glass/Framed Art Face ‐ protection sheets of bubble cushioning, corrugated board or foam the size of the glass must be applied over the glass so that the depth between the glass/mirror and the frame are built up to cover the internal cavity. Corner protectors should be placed on each corner. This should be taped, in place, across all sides using cardboard protectors on the frame. Center the product face down on a double ‐ wall 200 lb. burst corrugated board that is at least two (2) inches larger on all sides than the product itself. This should be the same size as the packing carton for stability. Slit flaps on each side of the cardboard and fold up around the frame of the product. Secure it with strips of nylon filament tape. Staple double ‐ wall, 200 corrugated spring pads to both sides of the product at the top and bottom. Place the product in a full telescoping or full overlap carton (preferably 275# burst) and then seal. The verbiage, “FRAGILE” and “GLASS”, must be marked on all sides of the outer carton.

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 19 should never ship “Collect” to a homedepot.com customer. Any substitutions with non ‐ approved carriers will not be paid and are solely the responsibility of the supplier. Likewise, non ‐ approved service upgrades for small package deliveries are charged back in full to the supplier. Small Package Deliveries The Home Depot’s core small package carrier is UPS. Each supplier will be assigned a 3 rd party account number with UPS. All small package shipments must be shipped using the supplier’s 3 rd party billing account. Suppliers are responsible for all accessorial costs beyond the base freight and fuel. This includes all Signature Required and Declared Value Accessorials. Suppliers electing these services are doing so for their direct benefit and must have these accessorials billed directly to them. Cartons must be less than 165 inches in length and girth [(2 x width) + (2 x height)] and one carton cannot exceed 150 lbs. All other restrictions on shippable cartons are per UPS published guidelines. Shipments comprised of 20 cartons or 500 LBS should be shipped LTL. Multiple, smaller sized cartons should be consolidated into “repack” cartons whenever possible to reduce freight cost and minimize split shipments on delivery. Suppliers are responsible for ensuring all Hazardous products are shipped in accordance with all local, state and federal regulations in addition to the carrier’s published guidelines. Hazardous materials may not be shipped via any expedited or air service levels, including Next Day Air and 2 nd Day Air. Standard delivery is at the doorstep with no signature required. When setting up this account in your shipping systems, indicate the following freight billing address: The Home Depot Direct Tranzact Technologies W. Butterfield Road, Suite 400 Elmhurst, IL 60126 ‐ 5015 The Supplier will then set up a profile with the appropriate “Ship From” information. When setting up this profile in your shipping systems, indicate the following “Ship From” address: homedepot.com (800) 430 ‐ 3376 [Your facility’s street address] [Your City], [Your State] [Your Zip] The PO will contain one of the following small package delivery shipping service level codes for Suppliers receiving an EDI 850 from Commerce Hub (CHUB). Suppliers must utilize the shipping service level designed on the PO unless authorized to upgrade selected shipments (e.g., during peak holiday periods). The appropriate service level designations for each carrier are defined below.

T H E H O M E D E P O T | h o m e d e p o t . c o m S u p p l i e r H a n d b o o k 20 Next Day (ND) UPS = Next Day Air Saver Second Day (SE) UPS = 2 nd Day Air Standard Ground (CG) UPS = Ground Suppliers using the Commerce Hub Order Detail portal (in lieu of the EDI 850) must use the small package shipping service level codes below. Ground (carrier not specified Ship via UPS GROUND 2 nd Day (carrier not specified) Ship via UPS 2 nd Day Air Overnight (carrier not specified) Ship via UPS Next Day Air Suppliers are responsible for providing the carrier name, tracking number(s) and invoice number to confirm shipment. The code identifying the carrier name in the invoice must be as follows.  UPSN = UPS (all shipping service levels) LTL / Residential Delivery In general, oversized Common Carrier/Less ‐ than ‐ Truckload (LTL) and Residential Delivery Shipments are defined as being 151 lbs. – 10,000 lbs. and less than 700 Cubic Feet or 10 pallets or where the oversized girth prohibits it from being shipped via small package parcel. Residential Delivery shipments are used when products require special handling due to the nature of the item(s), type of delivery and the level of service that the homedepot.com elects to provide their customers. Residential Delivery is defined as basic delivery (curbside), threshold delivery or inside delivery across the threshold with the customer present to accept delivery. Suppliers whose products utilize Residential Delivery service will be assigned an approved Residential Delivery carrier (refer to the “Carrier Information” section in this document). The supplier must then establish and meet the guidelines for pick up and shipping of their products with the assigned carrier. Suppliers are responsible for providing the selected carrier code and tracking number(s) (PRO# or BOL #) to confirm shipment.