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Corrugated Warehouse

Standards & Guidance


GP Supply Chain
v.2017

©2017 Georgia-Pacific Corrugated LLC. Confidential and Proprietary Information. Do not distribute or copy without prior consent. All rights reserved. | 1
Confidentiality

This material is the property of Georgia-Pacific Corrugated LLC. The material contained herein represents substantial creative
effort and may include trade secrets, confidential information, and other proprietary concepts, techniques, ideas and expressions.
This material may not be reproduced, altered or transmitted in any form or by any means (including, without limitation, electronic,
mechanical, photocopying, or recording means) or in connection with any information storage or retrieval system, and may not be
used in any manner whatsoever, without the express written consent of Georgia-Pacific Corrugated LLC. All trademarks are
owned or licensed to Georgia-Pacific Corrugated LLC. Your possession of this material constitutes your acceptance of these
conditions. If you do not agree with these conditions, immediately return the material to Georgia-Pacific Corrugated LLC.

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Table of Contents
Part 1 – Introduction Part 7 – Inventory System
1. Goals of this document 5 1. BVP Unit Track – setup 48
2. GP expectations 6 2. Inventory System – BVP 49
3. Inventory Report 50
Part 2 – Product Stewardship, Quality, Housekeeping, Security 4. Inventory Process 51
1. Product uses 8 5. Inventory Reconciliation 52
2. The Perfect Order 9 6. Lot-Tracked Finished Goods 53
3. Vendor Ownership & Accountability 10 7. Lot-Tracked Warehouses 54
4. Handling & Storage 11 8. Inventory Process / Reconciliation 55
5. What to watch out for 12 9. Daily Activities 56
6. Housekeeping expectations 13
7. Maintenance, Sanitation, & Pest Control 15 Part 8 – Inventory Management
8. Housekeeping best practices 16 1. Warehouse expectations 59
9. Container / dry van inspection procedures 19 2. Stock visibility 60
3. Optimized warehouse layout 61
Part 3 – Supplier Performance 4. Primary storage size 62
1. Warehouse metrics 24 5. First-in-First-out 63
2. Warehouse metrics scorecard 25 6. Knowledge Share & Communication 64
3. Supplier performance 27 7. Contingency Planning 65
4. EHS GP Team: Physical Audit Worksheet 28
5. Quarterly review agenda 30 Part 9 – Physical Counts
6. Supplier questionnaire/assessment 31 1. Regular audits 67
2. Finished goods cycles counts 68
Part 4 – Handling and Storage 3. Conducting a physical inventory 69
1. Handling Do’s & Don’ts 33 4. During a physical count 71
2. Storage guidelines 34 5. Lot tracked inventory 72
3. MHE requirements 35 6. Unit tracked inventory 73
4. Storing GP Corrugated 36 7. Roles & responsibilities 74
5. Loading / Unloading safety guidelines 38 8. Supply chain contacts 75

Part 5 – Damage Part 10 – Warehouse Vendor – Setup


1. Criteria for reporting damage 40 1. Purchasing & accounts payable 77
2. Claim procedure 41 2. Electronic payment authorization 78
3. Claims review & resolution 43 3. Truck transportation setup 79
4. Shipping pallet examples 44 4. Invoicing & payment terms 80
5. Invoice submission 81
Part 6 – Order Processing 6. Invoicing instructions 82
1. Customer Service 46 7. Payment terms policy 83

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Introduction
Part 1

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Goals of this document

1. Quality is EVERYONE’S business. This document should be understood in it’s entirety.

2. We want to help you understand how our success is directly related to increasing customer
loyalty and supply chain excellence.

3. Bring awareness to continually rising customer expectations within the various industries that we
serve.

4. To ensure that GP sets the highest market standards for our product, regardless of facility,
warehouse or transport mode involved.

5. To illustrate how to handle, store, repair and ship our product to meet or exceed customer
expectations

6. To assist vendors and facilities in reaching and / or maintaining superior standards that are vital
to doing business with GP

7. To help us produce, ship and deliver a SUPERIOR product to our customers.

8. To illustrate how our success is an extension of your operational success.

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GP Expectations

1. A defective product is a broken promise to our customer.

2. Superior service is achieved when the customer is not affected by any defect in the product
itself.

3. We must continually enhance our capabilities and optimize our resources.

4. We must do everything possible to eliminate waste from the supply chain.

5. We expect the same high-standards from our partners as we do ourselves . A product with
defects is not a product we want our customers to receive.

6. Safety and Integrity are key to attaining a superior supply chain.

7. Make sure that training, communication and knowledge sharing is constant and evolving.

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Product Stewardship, Quality,
Housekeeping, Security
Part 2

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Product uses

The material YOU handle goes into a wide variety of finished goods and packaging. We are deeply
focused on quality because of the sensitivity of these end products

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The Perfect Order

Perfect Order Fulfillment


(Weighted avg. of below)

On-Time Right Right


Right Quantity
(To Request and/or Documentation Quality
Commit)
(Fill Rate)

Delivery/Ship Delivered Quantity = Complete Invoice value = Delivered Material


Time Cust. Req. Quantity Supporting Delivered value =
= +/- Tolerance = +/-Tolerance Documents Ordered Material

Customer Customer BOL Invoice Value % First Quality


Request Date Requested
Quantity
Customer L/C
Commit Date Actual Delivered Value % Delivered
Delivered On-Spec /
Quantity Pre- Clean
Date of Actual
assignments
Delivery Pricing
Acceptable Right
material components
Acceptable Container
Tolerance tolerance

To summarize the above, what makes a Perfect Order is…


Shipment on Right
Right Quantity Perfect Quality
Time Documentation

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Vendor Ownership and Accountability

Training & Compliance Quality Control Facility Conditions

• Facility Certifications • Inspection process for • Overall cleanliness


inbound product
• Self-Audit Status • Condition of floors & roofs
• Segregation of reject
• Familiarity with GP • Pest control
product
Warehousing Guidelines
• Facility signage
• Understanding of product
• Training on handling of reject
repair tolerances • Integrity of walls and doors
product
• Correct area and tools for • Smoking, Food, and Drink
• Equipment operator
product repair (if policy
certification
applicable)
• Odor levels
• Understanding of GP
• Outbound vehicle checks
communication channels • Fire protection
• Trash/waste receptacles
• Condition of loading /
unloading docks
• Overall culture of operators

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Handling and Storage General Guidelines

• Good operating and storage conditions are important to making sure the customer receives the product
in the same condition it was produced.

• When in doubt always STOP, THINK AND ASK. GP will strive to work as a team with warehouse partners
to make sure we keep the high standard of zero defects.

• From the time a liner board is produced to the time the customer receives it, goes through multiple “touch
points”. At these points, the liner has the potential to get damaged, at times beyond repair.

• These “touch points” are key areas to minimize damage, check for defects and also alert GP to issues
you are seeing on the ground.

• Your focus on quality every time you unload, store or load containerboard rolls is critical to the process.

• If you see something, say something. Please reach out to GP if you feel the state of the product is not
fulfilling our commitment to the customer. Remember, quality is EVERYONE’S business.

• Make sure there is a high level of communication between your facility and GP especially when product
arrives damaged. Warehouses will be held accountable for product that is damaged and not reported to
GP in a timely manner.

• Responsibility:
– GP Facility Management: To ensure that the processes and procedures are being followed.
– Product Steward Atlanta: Is responsible to monitor and maintain the systems outlined in these procedure.
– Warehouse Operator: Is accountable to maintain a system as a means of assuring that Georgia Pacific products or
materials are handled, stored and transported in conformance with specified requirements (agreed in the contract).
– GP Supply Chain- Corporate (Atlanta): needs to be informed of any non-conformances related to the standing
Material Handling Agreement.

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What to watch out for

• Glass or Metal pieces


• Bugs or Insects
• Oil and Grease.
• Pieces of paper from manufacturing processes such as Core Dust, Tab Scrap
• Wood splinters
• Damp or wet areas

Keep this in mind at all times

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Housekeeping General Expectations

• Housekeeping and warehouse cleanliness are underestimated, but crucial aspects of superior
warehouse management.

• The nature of GP product is such as warehouse practices and conditions can have a major impact
on overall product condition.

• GP views vendor facility housekeeping as an area of high priority.

• Lack of stringent housekeeping could endanger your partnership with GP.

• We take great pride in delivering a superior and, flawless product to our customers and we ask the
same from our partners in the supply chain.

Operating Continuous Supply Chain


Standards Communication Excellence

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Housekeeping expectations
Exterior Interior
• Clear Signage outside facility • Floor is clean without cracks, debris, rubble and free of oil
• Adequate Trash and waste containers to provide for clean and grease.
exterior • Storage areas are washed and cleaned regularly.
• Smoking in designated areas only. • Windows and doors are in good working order with
• Hazardous substances kept away from building. screens (no cracks or gaps)
• No evidence of water collection areas outside facility (breeding • Walls are well-maintained with no gaps or holes.
of insects). • No smoking or Food consumption (except in designated
• Exterior docks, walkways, railings and stairwells in good, safe area)
condition, must be kept closed and must form an adequate seal • Cleanliness maintained in restrooms inside facility.
when closed. (self-closing doors are preferred)
• Evidence of visible pest control
• Proper security access controls, doors, windows and other
openings shall prevent access to unauthorized personnel. • Heavy equipment is stored in designated areas to prevent
contamination of
• The facility shall be of sound construction and free from leaks,
free of cracks, holes, openings, or any other areas that would • product
allow harborage or entry of pests. • Roof is well maintained with no cobwebs or holes.
• The structure should be free of potential sources of • Lighting is functional and area is well illuminated.
contamination (e.g. flaking paint, condensate from overhead • Fire control equipment is functional and well-maintained.
pipes or structures, exhaust fans, grease, fraying insulation, • Free of potential sources of contamination (i.e. chemicals,
undesirable molds or dirt). glass, odors)
• All light fixtures in finished product and/or raw material storage
areas shall be shielded or have plastic coated bulbs to prevent
contamination in case of breakage.
• Loading docks shall be protected to prevent pest entry.
• Grounds shall be maintained to prevent risk of pest harborage,
and be free from idle machinery and equipment, litter, debris
and odor.
• The façade or installations shall not be a harborage or nesting
place for birds or other pests.

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Maintenance, Sanitation and Pest Control
• Maintenance:
– A documented preventive maintenance program shall be in place to assure that the building; equipment and transportation systems do not pose
a product contamination or quality risk.
• Sanitation:
– The facility shall have a documented housekeeping program in place for the storage, product handling areas and all transportation equipment.
– The building (ceilings, overheads, walls and floors) shall be free from dust, debris, insect webbing, mold growth, etc.
– Precautions shall be taken for protection of products during cleaning activities.
– Hazardous materials or chemicals (e.g. pesticides, cleaning materials, and disinfectants) shall be secured, segregated from product storage
areas.
– Garbage facilities / compactors shall be adequately covered.
– Employees should maintain a high degree of personal cleanliness:
• Wash their hands when necessary (e.g. prior to returning to work from breaks or as they become soiled).
• Hot and cold water, soap/sanitizer, hand drying and a waste bin must be available.
• Eating or drinking, chewing gum or smokeless tobacco, smoking and spitting is prohibited within the warehousing area.
• Littering and other poor housekeeping practices are not allowed. All refuse must be placed in properly identified containers.
• It’s recommended employees at the warehouse wear clean clothing and replace clothing when it becomes soiled.

• Pest Control:
– A documented pest control program and practices shall be in place to effectively prevent pest activity in the facility and grounds.
– A complete and accurate map of installed traps, insect-electrocutes and external bait stations shall be available.
• Bait stations shall be of solid construction and tamper resistant.
• External stations shall be secured.
– Pest Control Inspections shall be conducted and recorded.
– Documentation of pest control checks shall include all necessary information, e.g. pest control operator, date of check, pesticide usage (type,
amount of pesticide, application, lot codes, location, targeted pest and time of treatment), result of inspection and recommendations.
– If pest activity or deficiencies in the pest control program are noted, corrective actions shall be taken and controls increased appropriately. All
corrective actions shall be recorded.
– Pest activity data must be analyzed and documented to show trends in activity.
– Pest management contractors must be appropriately licensed by the relevant local authority, and maintenance of that license shall be a
condition of contract. Certified pest control contractors or personnel with equivalent training shall perform pest control activity.
– Only approved pesticides shall be used, in accordance with the label and application shall be strictly controlled.
– All pesticide labels and Safety Data Sheets (SDS) or equivalent material addressing safety precautions shall be available.
– Residual pesticides or insecticides may never be applied as a fog or aerosol

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Housekeeping Best Practices

Do Do Not

Clean, well-maintained, floors Cobweb-free ceilings Animal droppings Evidence of smoking in facility

Regular cleaning of floors Correct storage of equipment Trash on floors Damaged walls

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Housekeeping Best Practices

Do Do Not

Clean, well-maintained floors - store on Non-Marking clamp truck tires Sharp edges in storage areas Heavy dirt / debris on floors
lined floor

Well-segregated product Oil-Free , smooth clamps Oily floors Rubble on flooring

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Housekeeping Best Practices

Do Do Not

Broken glass / signs Gaps under doors

Clear signage in facility

Weeds inside or outside facility Trash inside facility

Marked trash bins

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Container / Dry Van inspection procedure

• GP’s outside partners and vendors will load shipping containers /dry-vans with product.

• The inspection and monitoring of the quality of these containers /dry-vans prior to loading with
product is crucial to making sure the customer receives the product in the same condition it
arrived at the facility.

• GP will hold the warehouse and loading facility vendor responsible for product that is damaged
due to non-conformity with the inspection of containers and vans.

Preloading Checklist
1. Floors - Dirty/contaminated, rusted, wavy, delaminated/broken surface boards, missing fasteners,
wet spots, holes, stains.
2. Roof - Bent, broken, or missing roof bows, holes cracked or damaged roof sheet
3. Nose - Rough/broken surface or bent. No evidence of water leaks.
4. Sidewalls - Rough or jagged plywood. Examine the exterior sides of the Container for tears or cuts
of the skin that exceed 21 inches or that would affect more than one Container side post
5. Cross members - Corrosion between mounting clip and base rail, severely bent / cracked cross
members, missing / damaged fasteners.
6. Post-base rail fasteners - Rivets with heads sheared off, watch for tear which continues and cuts
through a side post.
7. Base rail / side skirt - Base rail bent or cracked. Side skin cut, torn or otherwise damaged.
8. Landing Gear - Severely bent or broken bracing, missing or damaged fasteners.
9. Doors - Gaskets or seals damaged, latch broken. Examine hinges for damages.
10. Odors - Check interior for odors that are not normal.

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Container / Dry Van inspection procedure: patching floors

Do Do Not
This patch reaching These patches being at
the second seam the back and only
makes it a good patch reaching the first seam is
that we can load high risk to load. All
without issues. patches should be long
enough to be secured to
a minimum of 4 Cross
Members.

This patch covers


multiple cross
members which makes
it a good patch that we
can load without
issues.

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Container / Dry Van inspection procedure: damages
*Examples of what NOT to be used for GP product

Damaged floors

Damaged flooring Damaged flooring Damaged flooring Damaged flooring

Damaged roofs

Hole in roof Leaking roof Hole in roof Leaking roof

Damaged walls

Hole in sidewall Mold on sidewall Rusty sidewalls Bad wall patch

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Container / Dry Van inspection procedure: damages
*Examples of what NOT to be used for GP product

Damaged floors

Nail not flush with floor Cracked flooring Cracked flooring Cracked flooring

Damaged roofs

Bad roof patch Rusting roof Bad roof patch Bad roof patch

Damaged walls Summary


Examine floors = No poorly patched, cracked or dirty areas
Check the Roof = look for areas that might leak
Inspect the walls = look close for holes, cuts or rusty areas
Check for any odors
Inspect outside of the container
Check landing gear and cross members
Look for missing or rusted rivets
Check the doors for any signs of damage
Bent cross member Bent cross member Inspect door hinges
Inspect cross members

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Supplier Performance
Part 3

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Supplier Performance: Warehouse Metrics

• GP Supply Chain will ask for a report on certain key metrics from our warehouse partners
• This report will be due on a quarterly basis.
• Please provide the report timely, accurate and relevant metrics as outlined in this guide
• Data will be collected from 6 areas:
– Productivity
– Quality
– Inventory Aging
– Inventory Management
– Warehouse Safety
– Vehicle Outbound Statistics
• Warehouse will be measured on these metrics on a monthly basis
• Outstanding performance will be recognized

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GP Warehouse Metrics – Scorecard - Slide 1

Activity

Productivity Labor Hours


Overtime Labor
Key Driver of OT
Handling
Initial Storage
Recurring Storage
Freight

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GP Warehouse Metrics – Scorecard – Slide 2

Activity Task Observations

Quality Inbound Damaged Tons


Total Inbound Tons
On Hand Damaged Tons
Total Outbound Tons
Warehouse errors on delivery slips to
the customer.
Aged Inventory Number of Tons > 120 days
Number of Tons <120 Days

Inventory Management Book Inventory


Inventory Accuracy
Safety Recordable Injuries

Vehicle Damages Number of Outbound Vehicles


Rejected
Type of Vehicle
Carrier Name

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Supplier Performance

• GP Corrugated Supply Chain measures, analyzes and manages warehouse suppliers in an effort to monitor costs,
alleviate risks and drive continuous improvement.
• The following Methods are used to track Warehouse Suppliers’ Performance:
– Physical Audit
• Physical audits are conducted typically by a Quality (EHS) Manager and/or GP Facility
Manager/Designated Personnel
• It contains guidelines to document each question as “Acceptable”, “Improvement Needed” or
“Unacceptable”.
• The completed inspection is reviewed with GP Supply Chain, Quality and Plant where improvement
actions are assigned to appropriate personnel.
• The audit/inspection may include review of pest control records, controls and facilities that
demonstrate that storage of products are in line with requirements and specifications.
• Notification of Audits: It is GP’s policy to give advance notice of intent to conduct an audit/inspection.
The following information must be available upon GP Auditor or GP Plant’s personnel upon
request:
– Purchase Order (PO)
– Bill of Lading (BOL)
All warehouse personnel should be trained to follow the procedures outlined in this document.
• Warehouse Quarterly Review: GP Corrugated Supply will meet on site or remotely with Warehouse
personnel/leadership to discuss/monitor KPI’s status
• Supplier Questionnaire/Assessment: upon setting up a new warehouse vendor, the Quality and Supply Chain
Teams in GP Corrugated will ask the warehouse to provide information in an effort to assess the warehouse best
practices
• Global Food Safety Initiative (GFSI): GP Corrugated outlines a procedure to ensure product safety best practices

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EHS GP Team: Physical Audit Worksheet

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Physical Audit Worksheet

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Quarterly Review Agenda
Measurement Description Status QR/Date Corrective Action
Due Date

Aged Inventory Number of Rolls + X days

Damage Number of claims filed


Status of damaged rolls
Status of disposal

This action list is to be reviewed during quarterly visits to the warehouse site.

Issue List Process Changes Root Causes Preventive Action Corrective Action

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Supplier Questionnaire / Assessment

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Handling and Storage
Part 4

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Handling Do’s and Don'ts
Do Do Not
• Follow Housekeeping, Product Stewardship an Safety guidelines • Try to unload pallets that have been damaged in transit, unless you
• Inspect truck for safety and damage free condition, materials and advised GP prior, and unloading has been approved.
products shall be inspected for damage, infestation, potential security • Drag or Slide pallets/bales on any surface at any time while unloading.
concerns and exposure to moisture or unusual odors. Communicate to • Unload trucks in inclement weather, unless your facility has completely
enclosed truck unloading area.
GP immediately if the truck unloaded is damaged or compromised
• Store unloaded pallets next to products that generate dust, odor and
(dents, leaks, etc.). Failure to do this might make you liable for debris.
damages. • Use more pressure on the pallets/bales with forklifts than needed.
• Any damaged material shall be placed in a segregated area until • Ignore dents, holes and damage in trucks that you receive. See
disposition instructions are provided by GP to either Return to something….Say something!
Inventory, in which case product can be shipped to GP’s customer; or • Unload product without examining them on the top, sides and bottom.
Place on Hold, in which case the Materials shall not be shipped to This is a crucial stage of quality control and must be done with
GP’s customer. minimum handling of the products

• Let GP know the optimal pattern for unloading on your dock.


• All shipments in and out of the warehouse shall be transported in
appropriately sealed containers / vehicles.
• Monitor the integrity of incoming and outgoing shipments
• discrepancies will be reported to the GP contact and investigated
• Assess condition of product in stock at appropriate intervals in order to
detect contamination, tampering or deterioration, e.g. due to pest
infestation, age and unsanitary conditions.
• Stock items to avoid direct contact with the floor (e.g. on pallets, slip
sheets, or racks).
• Over stacking of product must be avoided when possible.
• Identification and traceability (e.g. load flags) must be maintained.
• An effective FIFO (first in first out) system shall be in place for all
materials and/or products stored for Georgia Pacific.
• Fork lift trucks (FLT) shall be in good repair, clean, free from leaks and
stored in designated areas away from materials and /or products when
not in use.
• Alert GP and take pictures if a truck arrives with a loading pattern that
is difficult to unload.

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Storage Guidelines: GP Corrugated
Do Do Not
• Follow GP’ s Housekeeping and Safety Guidelines for storing GP’s • Ever store GP material in dirty, debris filled or oily floors.
product • Stage outbound material that has not been examined during the
• Make sure to segregate a clearly visible, preferably taped off area in unloading process or prior to being staged for loading to the
a mixed use facility. customer.

• Regularly wash and clean floors around GP stored material • Stack GP material on floors that are uneven or have protrusions.
• Make sure that area GP material is stored in is well lit. • Ever write on the outer wrap of the palletized material, or directly
on GP material, or put unauthorized labels or stickers, unless
• Make sure that the GP material is stored on floors that are in good
authorized by GP.
condition, free of cracks, debris, oil and grease.
• Place objects of any kind on the top of GP material, unless
• Place pallets in bays with labels facing forward for easy readability.
authorized by GP.
• Allow space between the stacks to facilitate easy re-handling and
• Stage for outbound to customers any GP material that has visible
prevention of overlapping product.
damage – Damaged material should be handled as per
• Store GP material away from ceiling beams and poles to minimize Damaged Procedure and should be staged in a separate area of
potential for damage. the warehouse.
• Put damaged GP material aside in a separate clearly marked area to • Stack GP pallets too high, or against walls, ceiling beams or any
be examined and/or repaired other hard object that could damage the material and/or create
unsafe situations.
• Clearly mark aisles and locations, to ensure inventory is kept in sync
with the inventory system, and meeting FIFO guidelines as • Store in any manner that causes moisture or humidity to
applicable. accumulate on or inside the wrap.

• In the case of mis-shipments (overages/shortages) or missing units


GP will adhere to the existing MHA agreement in place with the
warehouse to determine due course of action. Please communicate
with GP Plant personnel and GP Corrugated- Supply Chain for
instructions.
• Ensure “blind” spots in the warehouse are addressed with mirrors
and safety controls
• Contract carriers and unauthorized personnel should have a
designated area, outside of the warehouse storage area where GP
product is located

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MHE Requirements

• Forklift operators must be trained and


qualified via training program
• Aisles painted/marked for increased
visibility of travel zones
• Mirror/camera system for increase
visibility (rear)
• Equipped with safety bumpers that stop
cars when striking an object
• Safety equipment checks on regular
basis
• Capacity to handle weight of at least
2000 lbs.

For more detailed specifications please


contact the local GP Plant or GP EHS
Department.

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Storing GP Corrugated
Do Do Not
Store near products that could contaminate
containerboard material. Keep materials close/near
loading and unloading docks.

Report difficult layout to GP!!

Store on clean surface

Stage on platform after unloading/ Keep clean Stack against walls, unsafe manner

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Storing GP Corrugated
Do Do Not

Ship/Receive damaged No stacking against pillars


Store on clean floor Labels facing out pallets before notifying
GP

Clearly mark / segregate storage areas

No storage on damaged / dirty floor

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Loading / Unloading Safety Guidelines

Loading Docks:
1) Establish a trailer restraint/pull away prevention system that prevents a truck from pulling a trailer away from a loading dock while being
loaded or unloaded. (Examples include “dock locks”, glad hand locks, cones in front of truck, possessed truck keys).
2) Exclusive Control- PIT operators must have exclusive control (identifiable lock and key) for each trailer they enter. This also includes any
supervisor or key manager that has a need to enter a trailer.
Physical or visual barriers must be used when any bay door is open (cones, chain & sign, dock restraint system, screen door pulled down, dock
door pulled down).

Trailer Inspections:
Trailers must be inspected for structural integrity prior to loading/unloading.
Perform both an inside and outside inspection per the checklist. Critical items include:
a) Reject any trailer with floor support cross members spaced more than 12” apart.
b) Reject any trailer using less than 3 rivets attaching each side of cross members to base plates.
c) Report trailer failures as property damage incidents to GP and KBX

Entering Trailers
d) Truck operator must ensure that the dock plate is secure and will not move.
e) Use caution entering and leaving trailers, move slowly, and be aware of clearances.
f) When entering a trailer, trailer jacks/stands must be placed under the nose of the trailer if the tractor has been disconnected from the trailer.
g) Orange cones placed in front of trailer jack/stands increase the visibility of that trailer and may help prevent inadvertent contact by other
tractors operating in the area.
h) When unloading or loading, with tractor under the trailer and tandems are all the way back, the driver must be out of the tractor and the
tractor must be turned off.

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Damage
Part 5

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Criteria for Reporting Damage

• This procedure is to define the Off-Site Warehouse methods for reporting to the specific Georgia Pacific
corrugated facility any damaged incurred through receipt, storage and/or handling of material.
• Responsibility:
– Warehouse Operator: Is accountable to maintain a system as a means of assuring that Georgia Pacific
products or materials are handled, stored and transported in conformance with specified requirements
(agreed in the contract).
– GP Management: To ensure that the processes and procedures are being followed.
– GP Facility Contact: Is responsible to monitor the documentation outlined in this procedure.
– GP Quality Manager: Is responsible to review all damaged raw materials and/or finished goods noted by
the off-site warehouse.
• All personnel shall have training to review requirements of this procedure.

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Criteria for Reporting Damage
• Criteria for Reporting Damage:
– Edge tear, abrasions or other visible damage penetrating the exterior of the product or raw materials.
– Wet finished good and/or raw material that have visible signs of having been wet.
– Any other means of contamination (excessively dirty, pest droppings, etc.)
• Inbound Receiving:
– If any of the finished goods suffer any damage upon receipt, Company shall report to GP within twenty-four (24) hours
of becoming aware of the damage.
– Warehouse shall inspect the materials for any visible damage upon receipt.
– Damage must be noted on the BOL or delivery slip and the driver's signature acknowledging the damage
– Physical damage to the material must be documented with digital photographs.
– The warehouse shall cooperate with GP in the investigation of and in GP's attempts to recover from the carrier for any
such shortage, loss or damage.
• Warehouse Damage:
– If any of the finished goods suffer any damage while in the Company’s possession, Company shall report to GP within
one business day of becoming aware of the damage.
• Damage Report:
– All reports of damages shall be accompanied by all of the following documentation:
– Each damaged unit must have a picture taken of the load flag showing the GZ number at the bottom and the damage
incurred. Electronic files must be labeled with the GZ number.
– For raw material items, each damaged article must have picture of the product placard and the damaged incurred.
– The supporting documentation for transport carrier damage, as described in the section “Inbound Receiving” above.
• Handling of Materials Pending Resolution of Damage:
– An area shall be defined to segregate quarantined or reject product / materials.
– All items must be clearly identified with a quarantine / hold placard.
– Any damaged product / materials shall be placed in a segregated area until disposition instructions are provided.
– Georgia Pacific facility contact must be notified of all product/materials placed within the hold area
– A GP representative will respond to reported damage within 48 working hours. The company will be instructed to
either:
• Return to Inventory, in which case finished can be shipped to GP’s customer
• Continue to hold until disposition for sorting, repacking or destruction is determined by GP

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Claim Procedure (GP Customers)

• GP Customer returns:
– In the event the warehouse receives damaged and/or rejected product from a customer, the
following should apply:
• Notify GP that a damaged product is being returned or shipped by the customer to the
warehouse
• Customer should have included a notice of claim to GP or Return Good Authorization
Form (RGA), if not notice of claim to GP is included, notify GP immediately to determine
if this load needs to be rejected.
• If a Claim or RGA number is referenced, inbound the pallets. Upon review, GP
Corrugated' s Shipping Department makes appointment for pickup of product to be
returned to the plant or to be disposed.
• Transit Claims:
– Upon opening the trailer, if there is evidence of shifted pallets, and in transit damage:
• Capture/note damage information in the bill of lading, shipping manifest, and other
carrier documentation with the damage noted next to each affected unit and the driver's
signature acknowledging the damage
• physical samples demonstrating the damage
• pictures illustrating the damage (include pictures of all the damaged units)

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Claims review and resolution

• Complaints are investigated only if certain criteria (i.e. dollar value or number of pieces) set-forth
by the facility management team are met or as specified in the contract with the customer or the
warehouse.
• It’s vital to the investigation that all appropriate information is supplied to allow for a proper root
cause analysis and, possibly, corrective action.
• If any required information or documentation is not received during the time limits specified in the
claims procedures, the claim will be denied and may not be resubmitted. When an investigation is
required and all the support documentation has been received, the site Quality Manager requests
a root cause/corrective action from the responsible GP facility/ function.
• The Quality Manager, in conjunction with the responsible facility/function, determines the
appropriate customer response, if requested, within 7 to 10 days of root cause completion, or as
requested by the customer.
• Per the GP Corporate Product Stewardship Compliance Standard, all product safety complaints
will be investigated.

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Examples of “DO NOT” ship pallets

DO NOT SHIP

Material with visible damage: wet, moisture, aged- should be reported to GP and await instructions.

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Order Processing
Part 6

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Customer Service

• Georgia-Pacific Corrugated Customer Service Team is committed to getting our customers the
right product when they need it, where it’s need it, every single time.
• By working closely with you to understand our specific business cycles and ordering patterns,
we’ll work with our Supply Chain and Logistics departments to find our most efficient, reliable
means of shipping.
• Our Customer Service Team expects the warehouse to provide clear and concise information
when it comes to: inventory reporting, order history or vehicle information
• The ordering process will be set up either by e-mail (reporting format) or by implementing BVP.
The expectation is that our Customer Service team obtains:
– Real-time order status
– Transmission of shipment information
– Division-wide online feedback system for any damages/non-conforming product

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Inventory System
Part 7

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BVP Unit Track – Set up

• If BVP unit track is set up at a warehouse, the following process will take place:
– GP Plant contact GP Corrugated Supply Chain to coordinate BVP set-up with the warehouse vendor
– GP Plant provides approval/charge code
– GP Supply Chain engages the BVP team and the warehouse to align on process and expectations
– Infrastructure:
• Warehouse provides a warehouse layout of GP inventory
• Site survey is scheduled
• Obtain and work with wiring contractor based upon site survey
• Setup IT infrastructure: Internet, Access Points, Switches, Router
– Equipment:
• IT infrastructure proposes required number of scanners
• GP Plant orders scanners
• GP Plant orders network printers/PC
• GP Plant orders barcode signs/staging signs
– BVP set up:
• Warehouse code and locations are set up in BVP
• If the warehouse was previously set up as lot tracking, units need to be scanned in to the new location
– BVP Training:
• BVP team provides training (it can be arranged through local plant)
– Once personnel is trained, and site is online, warehouse can scan inventory into BVP.

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Inventory System -BVP

• A major component of the BVP system is the tracking capability of Finished Goods Units at an external/off-site facility.
• All of the GP Plants are setup at Conversion to Unit Track their Finished Goods at their plant location which provides the capability to
track the movement of every unit from:
– When the unit is produced and load tags placed in it
– When the unit first becomes inventory thru the Strapper location
– When the unit is taken off the line by Shipping
– When it is moved to a Finished Good location in the Warehouse
– When it is loaded on a trailer either for storage, for transport to an outside warehouse, or for sale to the end customer.
• Once a warehouse has been converted to BVP unit track there is a time-period that requires “active”, “detailed” management and
warehouse involvement in the daily activities that are occurring with the new system to ensure that all policies and procedures that are put
in place by the BVP Team at Conversion are followed.
• It is strongly recommended that anytime a Full Finished Goods inventory is conducted that there be no movement of units occurring
– This can be accomplished primarily on the weekends during the month in order to avoid having to do this at month-end.
• In order to conduct the inventory the following items need to occur:
– Pre-Inventory Preparation for Unit-tracked Warehouse(s)
– Stop inbounding Finished Goods Units from Plant/Converting Machines.
– Move all completed Finished Goods Units through the strapper and scan into inventory location(s) in the Plant.
• Leave an 18” aisle between rows of Units (Units can be “butted” up against each other) so that Count Team Personnel can read the Load
Tags on all Units.
• House-keeping and not having to move units are key to ensuring a “speedy” and accurate inventory.
• Finish loading trailers and printing delivery slips for trailers that need to depart.
• Confirm (scan) those delivery slips for trailers that left the plant prior to the inventory. This will ensure that inventory properly reflects all
Units that are left at the plant.
• Meet with Inventory Teams and review all locations and develop the plan for conducting the inventory.
• Ensure all areas are covered and instructions are clear.

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Inventory Report

• Several reports are available in BVP – Please contact GP personnel for training or
instructions
• Inventory – Detailed Sheets to verify Inventory

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Inventory Process

• For the trailer count:


– Compare the IVYI203 sheet to the printed delivery slip. Match the Prod. Order #’s, Unit
counts and Qty’s. Ensure all trailers that appear in inventory are actually at the plant and
have not departed. Also, ensure there are no additional trailers at the Plant (i.e. – Returns
from customers) that are on the Yard but not in inventory.
• For the location count:
– One person should be reading off the Load Tag information (i.e. – Customer first and then
Production Order and then how many Units showing for that Production Order #).
– Second person should be checking them off.
– Work at the Summary Level first (i.e. – total units for each Production Orderr #) and then if
there is a discrepancy then read off every unit # to reconcile.
– Add any found units to the sheet by writing down the Customer, the Production Order #, Load
tag Unit number (GZxxxxxxxx), and the Qty.
– Circle any Units appearing on the sheet but not physically located in that location and write
the word “Missing” so that it can be followed up on by Admin.
– Turn in sheets to Inventory Team Leader as each location is completed.
– Assist in researching any discrepancies.

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Inventory Reconciliation

• Receive all Cognos Inventory Location Sheets. Verify that all count sheets are returned.
• Using the Unit Maintenance (UNIT) screen, verify all found units. Move unit to the new/correct
location and mark it off the count sheet that lists it as a missing unit. [Note: if the inventory leader
does not have access to move unit locations by the UNIT screen, send out a count person with a
scanner to scan the unit to the correct location].
• With the missing Units, determine what the reason may be:
– Mixed up load tags—the unit never existed
– Sent to customer without scanning (look on the Unit screen at the Unit # before and after the
missing Unit and see where they show – if showing as Sold then more than likely this Unit
was on the trailer and never scanned out of inventory)
– Sent to baler room
– Previously turned-in load tag, but not yet removed from system
• Allow person with decision rights (typically the Controller/Accountant) to determine if the Unit
needs to be consumed or if the customer needs to be contacted
• Contact the GP controller with the discrepancy report or list of missing units- follow the
reconciliation process/disposal, or charge-back process as per existing MHA or SOP/agreement
with the GP Controller.
• If it’s determined, the warehouse was at fault for missing/mis-placing the units, the units are pulled
out of inventory and billed to the warehouse (warehouse would need to be set up as a customer in
that case so that a valid GP invoice is created).

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Full Physical Inventory of Lot-Tracked Finished Goods

• Many GP Plants also have an Outside Warehouse that is Lot Tracked


• These typically are 3rd party operated warehouses or are consigned inventory at Customer
Locations.
• What makes them different that those discussed above is the fact that there is no scanning
capability at the locations thereby making Unit tracking not possible.
• These locations are considered Lot Tracked and only the total inventory Qty’s by
Customer/Production Order # are verified.

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Pre-Inventory Preparation for Lot-tracked Warehouse(s)

• Stop shipping trailers of product to the Lot-tracked Warehouse.


• Ensure all Shipped trailers to the Lot-tracked Warehouse have been confirmed (CONFIRM) and that they have been received in
by the Receiving Warehouse.
Inventory Documentation:
• From Cognos - in the Inventory – Finished Goods Reports folder, print GPCI286 – Lot Tracked Warehouse Inventory Report.
– Select the plant and press the “Next>” button.
– Select the warehouse and press the “Next>” button. [Note: each warehouse will require a separate report. Therefore, there could
be a report for xxF (finished goods), xxS (purchased sheets), xxM (master cartons), xxR (if finished goods are in the roll room),
xxW (rework area), xxQ (quarantine area)]. Press the “Finish” button.
• The report generates and can be printed. In the example provided (see next slide), the product is divided by Product and
Production Order #.
• Since the production order pallet count is based upon the FIFO concept, the right-most column (Quantity On Hand Per Item #) is
the important number.
• Repeat report generating process for additional warehouses.

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Inventory Process and Reconciliation

• For each Warehouse, receive a count by total quantity and full and partial pallets.
• Inventory Reconciliation
– Receive the count from the Lot-tracked Warehouse.
– Compare the count to GPCI286
– Give the list of ‘quantities to be adjusted’ to the Controller/Accountant, who will use the
Warehouse Product’s Transaction screen (WHPR) to adjust the BVP inventory quantity to
match the count and account for any significant differences.

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Daily Activities to Minimize Full Physical Inventories

• The inventory system in BVP has the capability to be very accurate; it is the recommendation by
the BVP Team that if the following best practices are adopted on a Daily/Weekly basis and the
plant/warehouse jointly track the performance and results and strive for steady/constant
improvement in each area, then it will minimize the requirements to bring everyone in when there
is Plant down-time to take a Full Physical Inventory.
• The goal is to have the system accurate to avoid this huge expense and inconvenience as well as
provide management with accurate information so better decisions are made regarding
warehousing and distribution activities on a daily basis.

– Active Plant Management involvement


– All personnel that drive Fork Lifts are committed to the system and are trained to scan the
pallets as they move it from one location to another
– Pallets need to be organized with space between the Units and Load Tags have to be visible.
– Operators must ensure they are placing the same Load Tag Unit #’s on the same unit (i.e. – 2
tags per Unit and both tags have the same Unit #).
– Operators must ensure that Unit Counts (especially on the last unit) are correct. The last unit
tag must be reprinted with the correct Unit Count on it if it is a partial and less than the
normal Qty/Unit.
– A Supervisor/Lead must be involved daily ensuring that all units are being scanned and that
the fork lift drivers are trained and questions answered timely.

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Daily Activities to Minimize Full Physical Inventories

– Load Tags should be treated as “Birth Certificates” for the Units – They should be properly
placed on the Units for easy visibility. If any are found laying in the floor they should be
brought to a Supervisor immediately and the Unit investigated.
– Combining of Units (i.e. – 2 partials to make a Full Unit) – Tags from both Units should be
turned in immediately to the Controller/Accountant and a new tag printed for the correct Qty
of the new Unit.
– Timely disposition of Unit issues need to be handled with the GP Plant personnel (with
decision rights) bringing the Tags to the Controller/Accountant to correct. There are various
issues that can cause this (i.e. – wrong tags initially printed and placed on the units, units
have been hogged, units missing, etc.).
– Each must be investigated and resolved by Accounting to ensure inventory issues are being
addressed during the month on a Daily basis and not piled up at month-end.
– Paperwork from Shipping is occurring daily and all trucks being shipped are promptly billed
the next day. Ensure all Shipments are properly confirmed by the Wedge scanner by the
Truck Drivers.

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Inventory Management
Part 8

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Inventory Management – Warehouse Expectations

• GP’s expectation is that warehouse providers are committed to


inventory management best practices, including:
– Designated Stock Locations
– Monitor Aged/unwanted inventory
– Optimized warehouse layout
– Size storage locations by product
• GP’s expectation is to leverage the expertise of our warehouse
partners to ensure we are gaining control of key concerns such as:
– Excess Inventory
– Stock-outs
– Inventory Accuracy
– Shrinkage

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Stock Visibility

• Stocking an item is a commitment to GP that the product will be available for shipment/delivery to our customers
• It’s key that all non-inventory items (packaging materials, stripes, wrapping paper) is kept separate for allocated
locations, designated to stock inventory items.
• Sort items currently in a warehouse based on each product’s annual inventory turns. In the example below, item
A1 has low inventory turn, this item should be highlighted as a low turn, stocking too much of this item is not a
good idea. Item A2 has a high turn, and should be put in any ‘stock-out’ flags, as it is considered a high mover.
• Sorting products by rank will help identify A vs C items, high vs low movers.

Item # Annual Orders Annual Qty Rank


(turns) Ordered

A1 3 5000 A

B2 55 100 C

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Optimized Warehouse Layout

• Consider storing high moving items next to each other


• If necessary, make us of a warehouse management system (WMS) to maintain bin locations. If all high- movers
are stored in one area, and accessible locations, employees will spend less time fulfilling pick orders
• Fastest moving products are located closest to the shipping, staging, and receiving area, the less frequently these
items are picked, the further from the staging areas
• Pick tickets and information displayed on RF bar code readers will include the bin location, and items on each
order to be picked will be sorted in bin location sequence. Your employees will continually be directed to where the
next product they have to pick is stored.
• You must look at every storage location and determine its accessibility
• You also have to consider the fact that different products have different storage

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Primary Storage size

• Store all of your high-moving items in very accessible storage locations, consider sizing the primary storage
location of each product to hold supply for a specific number of days.
• One to two weeks’ supply of each “A” ranked item is typically kept in the primary picking location.
• This can even be as little as a one-day supply for a very bulky, high-volume product. The balance of the inventory
is maintained in bulk storage.
• Warehouse workers replenish its stock from bulk storage on a predetermined schedule, or when the primary bin is
empty.
• It is far more efficient to go to the back of the warehouse once and bring back several days’ supply of an item than
to continually run back and forth filling individual orders.
• While we limit the amount of stock in the primary bin of “A” and “B” ranked items, we will size the primary bin for
“C,” items to hold the normal maximum stock quantity.
• In any case, there should be a small quantity of these slower moving products.
• And, they are not stored in the more accessible locations in your warehouse. In this white paper you received the
first several steps for a program to achieve effective inventory management. We discussed developing your
approved stock list, liquidating unwanted inventory, and determining the primary picking location for each item in
your warehouse.

Product Rank Days of Supply Primary Storage area

A 7 to 15 days

B 30 to 45 days

C Full Quantity

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First-In-First-Out (FIFO)

• Oldest stock (first-in) gets sold first (first-out), not the newest stock.
• Many reasons why this is important:
– Boxes do age, and might get rejected by our customers
– Packaging design and features often change over time, becoming obsolete
– Customers might also have specific guidelines to receive material in certain sequence

• The warehouse needs to be very well organized to ensure good implementation of a FIFO system
– Managing storage areas, stock locations and days of supply is key in ensuring FIFO runs well
– Avoiding manual picking, and using a warehouse management system and picking equipment
– Training employees on FIFO rules
– Ensure good signage, identification of excess/aged inventory
– Continuous cycle count programs to enforce inventory accuracy

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Knowledge Share and Communication

• Inventory Management involves the ability to adapt quickly


• Discuss with GP opportunities and red flags:
– Potential stock-outs
– Excess/Aged inventory
– Temporarily expand or reduce footprint
– Expand coverage of inventory systems
– Review KPI’s on a quarterly basis
– Discuss forecasts
– Seek joint agreements to consider innovative warehouse layout and stocking areas

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Contingency Planning

• GP’s product typically experience a seasonal behavior, it’s key for warehouse vendors to be prepared for
unexpected spikes:
– sales spike unexpectedly, stock-out situations can pop up
– warehouse doesn’t have enough room to accommodate seasonal spikes
– Sudden drops in forecast/demand generate a miscalculation in inventory, which means we end up with more
product than we thought
– Slow moving product takes up all of the storage space
– Backlogs created by production, will push unusual orders and create surge days with unusual labor hours
– Customer discontinues a product without warning, and we end up with excess inventory for that obsolete
item
• GP counts with its warehouse partners to work together in figuring out solutions, risks and alternatives when
problems arise

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Physical Counts
Part 9

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Regular Audits

• Regular reconciliation is critical to inventory accuracy.


• GP does rely on inventory systems and reports from our warehouse vendors to know how much product we have
in stock. However, it’s important to make sure that inventories match up.
• There are several methods for doing this:
• Physical Inventory
– A physical inventory is the practice is counting all your inventory at once. GP will ask to perform an annual
inventory.
• Spot Checking
– Spot checking means choosing a product, counting it, and comparing the number to what it's supposed to
be. This isn’t done on a schedule and is supplemental to a cycle count process. You may want to spot check
problematic or fast-moving products.
• Cycle Counting
– Cycle counting spreads reconciliation throughout the year. Each day, week, or month a different product is
checked on a rotating schedule. There are different methods of determining which items to count when, but,
generally speaking, items of higher value will be counted more frequently.
– A program should be developed by the Controller/Accountant to ensure all critical/key areas are counted
during the month. Errors should be tracked and communicated to Plant Management for corrective action
and constant improvement.
• It is a Plant by Plant decision on whether to do Cycle Counts or rely on a Full Inventory.

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Finished Goods Cycle Counts and Physical Inventory requirements

• GP Plant Controller’s team should perform a concurrent cycle count at least once a month to ensure the process is
being performed adequately.
• A full physical inventory must be taken on a monthly basis by a GP employee(s) or by outside warehouse
personnel, at the discretion of GP’s Plant management/controller.
• If the warehouse is lot tracked, GP will perform a full physical inventory on the Lot Tracked inventory at least once
every 6 months.
• If the Facility Controller or designee finds errors or inconsistencies with any of the concurrent cycle counts
additional steps should be taken to ensure cycle counts are being performed accurately. This could include
training, process enhancements, etc.
• Any adjustments to inventory identified during the cycle counting process needs to be entered into the G/L system
as a debit or credit, as appropriate to the Inventory Adjustments account.
• Document procedures used for conducting a full physical inventory in order to validate the quantity on-hand
information kept in the facility’s operating system to ensure it is accurate with actual on hand quantities.
• In accordance to existing MHA, typically GP will perform a joint annual physical count with the warehouse.
• Materials must be stored in a manner to facilitate a “first-in, first-out” usage unless otherwise agreed or instructed
by GP and in accordance with an existing MHA.

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Conducting a Physical Inventory

1. Establish a baseline of what the current count accuracy is prior to conducting the full physical inventory. GP’s
standard is 99 % inventory accuracy, unless otherwise specified in the MHA.
2. Make a list of all locations: staging areas, damaged, on hold, inbound, outbound…etc
3. Run a report showing every warehouse location displaying the zone, row, section, tier, and bin. Determine if all of
the locations are valid and still in use. If locations are no longer is use, delete the location from the facility’s
operating system.
4. Examine the physical locations in the warehouses, etc. and determine if locations need to be created for items. Pay
particular attention to items around the perimeter of the warehouse. By ensuring every item has a location, will help
eliminate unnecessary variances during the full physical inventory.
5. Ensure warehouse locations are clearly marked with labels.
6. Separate and/or label the consignment inventory at the facility. Consignment inventory should be excluded from the
items to count during the full physical inventory. The Purchasing or Stores Manager will need to coordinate with the
vendors on counting the vendor owned inventory.
7. Run a report that shows all of the items in “no purchase” status that still have quantities on hand. Determine what
needs to be done with these items. If items should be kept at the facility, these items will have to be manually
counted as the cycle count application on the tablets will not allow count uploads.
8. Run an inventory by location report to display the items on hand that do not have a physical location. Resolve any
issues with items not assigned a location prior to conducting the full physical inventory.
9. Run a report that shows all catalog items at the facility. This should include all stock items and non-stock items
currently on hand. It will need to be understood how many items need to be counted during the full physical
inventory so that resources can be allocated appropriately based on the time frame of the inventory.
10. Determine the hours and/or shifts of operation during the full physical inventory.

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Conducting a Physical Inventory – cont’d

11. Establish resources needed for the inventory. This includes, material handlers, counters, data entry clerks, etc.
Assign these resources to area teams.
12. Develop a facility specific safety plan outlining the hazards that counters could face while at the facility. This plan
should include, but is not limited to an evacuation plan,
13. PPE required, and the risks in the various areas the counter will come into contact with.
14. Develop a holding area for items that need to be pulled from locations during the physical inventory.
15. Develop a recount and variance approval plan with the Controllers group at the facility. Depending on the time frame
and resources involved, recounts may have to be conducted after the full physical inventory.
16. Coordinate with the maintenance department to have dumpsters and scrap metal bins accessible to the material
handlers during the physical inventory. Ensure bins are emptied at the end of every day.
17. Procure any necessary PPE that the counters will need during the full physical inventory. This should also include
radios for communication purposes during the inventory.
18. Procure red spray paint for tagging items that are scrapped during the inventory.
19. Order food and drinks for the full physical team.
20. Provide an orientation to the resources involved in the full physical inventory. This orientation should include
information on safety, cycle counting, and a tutorial on how to properly use the tablets and scan guns.

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During a Physical Count

During Physical Count


1. While counting each item with the tablet and scan gun, tag the item in some way that shows it has been counted. It is
recommended to use paint dabbers with colors that indicate the inventory team who counted the item.
2. If items are not clearly labeled with a catalog id number, move items to the holding area for further review.
3. If items seem damaged, move items to the holding area.
4. If items are being scrapped, spray red spray paint on the item.
5. Throughout the day, ensure each tablet is being docked in the docking station for charging purposes. This also allows
for the counts to be uploaded into the operating system. Counts should be updated periodically throughout the day.
6. At the end of every day, move all of the unapproved variances to recount status.
7. In order to communicate a daily status update, run a report to show the number of items counted and the accuracy
rate by item and value.

After Physical Count


1. Resolve any cycle count variances.
2. Resolve any issues with the items in the holding area(s).
3. Develop plans for any process and/or security gaps found while conducting the full physical inventory.

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Lot Tracked Inventory

• Lot tracked means that the goods are tracked by customer at an item level qty.
• There is generally no access at the warehouse to GP computer software, thus inventory cannot be scanned in or
out at the pallet level.
• The process to track movement is manual.
• When goods come to the warehouse the warehouse staff enter item and quantity into their system.
• When shipping, the warehouse staff, record the bill of lading shipped along with item and quantity out of their
system.
• At end of month, the warehouse runs their end of month inventory report and it is compared against what the plant
shows that warehouse should have in quantity.

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Unit Tracked Inventory Count

• The determination of the extent of physical inventories for Unit Tracked Finished Good Warehouses to be
performed at Packaging Plants is dependent on Cycle Counts and their accuracy.
• When a formal Cycle Count process is in place and the accuracy rate of the cycle count is 95% or higher based on
total pieces counted (plant has the option to select the month of the complete physical count), then physical
inventories should occur at a minimum semi-annually.
• If the Plant has a Cycle Count accuracy rate lower than 95%, quarterly physical counts are required until the
accuracy rate of the Cycle Counts rises to 95% or higher. Results of the Cycle Counts must be posted in the
monthly Account Analysis files on the “Inventory Results” page to establish the accuracy rates of the Cycle Counts
for Finished Goods.
• A Plant conducting Cycle Counts is expected to cover the entire on-site Finished Goods inventory area over the
course of a month
• If a plant is unable to conduct Cycle Counts throughout the entire on-site Finished Goods area inventory within
one month, it must obtain approval from the Regional Controller.

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Roles and Responsibilities

• For the duration of the physical inventory count, the Controller is the Point Person.
• All of the count teams turn their counts sheets in to the Controller, who then verifies the counts, ask any questions
of the team, and makes certain that all locations have been counted.
• The Controller then reconciles every inventory count sheet and makes the necessary adjustments in BVP.
• Where staffing allows the following controls should be in place to ensure accurate verification of inventory value:
– The person scheduling the counts should not be the person conducting the physical counts
– The counts should not be performed by a person who can approve any variances
– The counts should not be performed by a person who can perform other inventory transactions
– The counts should be conducted blind, or in a manner in which the person performing the count

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GP Corrugated – Supply Chain Contacts
Situation Primary Contact

Contract renewal/Negotiations GP Supply Chain Atlanta


Escalation of Operations/Logistics Issues with GP Plants or
GP Customers GP Supply Chain Manager
Safety/Operational Concerns GP Supply Chain Director
Weather Related major disruptions
Account Management/Quarterly Reviews GP EHS

Daily Operations/Inventory GP Plant local contacts

Inventory reconciliation/reporting GP Accounting contacts (local contacts at plant) and GP Infinium team
Accounts Payable/Invoicing

Damage Origin or Destination GP Plant


Quality GP Supply Chain- Atlanta
Product Stewardship GP Quality & Compliance EHS team

IT - BVP BVP Team- Atlanta

The 3PL/Warehouse shall have established links with the Georgia-Pacific Representatives.

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Warehouse Vendor – Setup
Part 10

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Internal Financial Controls: Purchasing & Accounts Payable

Vendor Setup Process


• New vendors need to fill in a Vendor Set Up Form.
• GP’s preferred method of payment is via ACH. Vendors will also need to fill in an Electronic Payment Agreement.
• These forms will be provided by the local GP Accounting personnel or by GP Corrugated Supply Chain.
• IRS Tax Forms: New vendors or name changes will need to provide a W-9 form to their local GP
Accounting/Procurement personnel and to GP Corrugated Supply Chain

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Electronic Payment Authorization Agreement

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Truck Transportation Set-Up
• This procedure applies to the setup of 3rd Party Warehouses looking to be set up with KBX Logistics (http://kbxlogistics.com)

Warehouse Start-up Process


• GP PKG Supply Chain coordinates initial discussion on the market dynamics and preferred warehouses operating
parameters based of dynamics of potential new warehouse sites being considered (e.g. aligning on receiving hours and
capabilities, location relative to final customer, accessibility major roads/highways, etc.)
• KBX groups involved: Relevant regional manager/team leads, business liaison
• Start-up call between GP, KBX ops, and warehouse contacts
• KBX groups involved: Relevant regional manager/team leads, business liaison
• Location IDs (if known or to be created for both shipper and receiver(s))
• KBX groups involved: Ops manager/team lead and TOPS admin
• Shipper/Receiver(s): address, contacts, appointments set-up (FCFS, call, email), hours of operation, pre-load/live load, drop
trailers, other miscellaneous important notes
• KBX groups involved: Ops manager/team lead and TOPS admin
• Freight account set-up: SAP G/L account, cost center, Loc IDs again, which location is responsible for billing
• KBX groups involved: Ops manager/team lead and trans rating
• Choose carriers: Dedicated (depending on location, volume, long-term/short-term warehousing use, and whether or not an
existing fleet can be used or a new one is needed) or OTR (how large a carrier base needed, contact carriers for rating). If
any Rail shipping (which lanes, car types, etc.) that is set-up as express lanes in TOPS so that rail loads are captured.
• KBX groups involved: Ops manager/team lead, trans pricing, TOPS admin
• Route initial loads and monitor to ensure systems are working and all parties involved are satisfied with the process
• KBX Groups involved: Ops team lead and transportation planner
• Please contact PKG Supply Chain- Georgia Pacific with questions or concerns

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Invoicing and Payment Terms

• The warehouse invoices GP on a regular basis as agreed in an existing MHA.


• GP processes payment as per existing MHA.
• Preferred method of payments is: via EFT.
• Please complete a GP Supplier Information Form and ACH Request Form- to be provided by
Supply Chain Management to ensure proper and timely payment.

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Invoice Submission
• Bill to party:
– Georgia Pacific Corrugated, LLC.
• Specify “name and address” of the local plant
• Specify “ name of the local controller at the plant
• Submit invoices per one of these options:

• US Postal Mail:
Georgia-Pacific Infinium (Packaging)
PO Box 981953
El Paso TX, 79998-1953

• Email:
– GPAP-Infinium@acsap-it.com
– Send ONLY ONE (1) invoice per email transmission
• Fax:
- Packaging: (866) 455-5089
- Send ONLY ONE (1) invoice per fax transmission

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Invoicing Instructions

To expedite payment of your invoices, ensure your invoice has the following information and is legible as it will be
imaged for processing:

 The GP Purchase Order (PO) number  The unit cost and extended cost, for each line item
 Your invoice number  Taxes (if applicable)
 Your packing slip and/or Bill of Lading number  Freight charges (if applicable)
 The GP PO line number  Provide the invoice’s grand total
 GP part number as listed on the PO  The payment terms
 Manufacture’s part number (if applicable)  The freight terms and carrier (where applicable)
 A brief description of the material or service  Your Remit To Address
 Invoice quantity for each line item  “Ship To” address that materials are delivered to
 GP purchase order unit of measure  The invoice must only contain one purchase order number
 All credits must refer to the original invoice that the credit is issued for

Failure to provide the information required could result in delays of invoice processing.

Questions regarding these instructions should be submitted to:


Georgia-Pacific Accounts Payable Customer Support at 1-866-924-1397 option 1
or Email – GPAPservice@acsap-it.com

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Payment Terms Policy

• Payment Terms are the conditions under which GP and supplier have agreed when GP will pay for a good or
service.
• GP calculates payment from the day that invoice is received in DART
• To avoid delays, suppliers are to submit invoices as per the invoicing instructions provided in a
previous slide

• GP’s standard payment term is 1 % Discount at 15 days, otherwise pay NET 60 days, unless otherwise
agreed in an MHA.
• Example: 1% 15 NET 60
Receive invoice in DART = $50,000
IF GP pays invoice by day 15, GP pays at 1% discount = $49,500
IF GP doesn’t pay by day 15, GP pays full amount on day 60 = $50,000

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