Transcription
Sleep NumberSupplier Logistics Manual(SLM)4011-ML-03 Rev ALast Updated: 12/11/2020
Table of Contents1.0 Introduction . 31.1 Supplier Manuals . 32.0 Scope . 33.0 General Expectations . 44.0 Packaging . 44.1 Pallets . 44.2 Shipping Cartons . 64.3 Plastic Bag and Film Requirements . 64.4 Packing Slip Requirements . 75.0 Labeling . 75.1 Size and Layout . 85.2 Barcodes. 85.3 Pallet Labels . 85.4 Product Labels . 105.5 PPAP and Deviation Labels. 126.0 Retail Shipments . 127.0 Transportation . 147.1 Supplier Transportation Responsibilities . 147.2 Domestic Routing Requirements . 157.3 International Shipments . 158.0 Definitions . 179.0 Revision History . 1810.0 Appendix A – Label Templates . 1911.0 Appendix B – Label Placement . 23Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 2
1.0 IntroductionThis manual defines the logistics practices and general guidelines expected of Suppliers who are doingbusiness with Sleep Number Corporation (“Sleep Number” or the “Company,” including any affiliates orsubsidiaries). This manual outlines requirements to ensure that Sleep Number’s supply base is providingtop-level performance while following guidelines and procedures. It is the responsibility of the Supplier’sleadership to ensure compliance with this manual.Sleep Number recognizes that Suppliers are instrumental in meeting the commitment to obtaining ontime, defect-free products to the end consumer. The goal is only achieved by attaining a collaborativerelationship based on mutual trust, respect, and open communication.1.1 Supplier ManualsOverview: Sleep Number governs its business, quality, and logistics processes through a setof Supplier manuals that work in conjunction together.Description: Suppliers should reference the following manuals: Supplier Business Manual (SBM) – outlines how Sleep Number conducts business and ourexpectations for Suppliers to create a strong, competitive, and value-added supply chain.Supplier Quality Manual (SQM) - provides an overview of Sleep Number’s standards andexpectations to ensure higher quality and efficiency.Supplier Logistics Manual (SLM) - provides the standards and expectations of supplying partsto Sleep Number, including the processes for delivery, labeling, logistics, and packaging.2.0 ScopeThe content in this manual applies to: All Suppliers providing existing and new materials, parts, assemblies, finished goods (collectively,“Part” or “Parts”) and services which directly impact the quality of Sleep Number products, toplants, customers, and/or distribution centersThe product lifecycle, which encompasses three main areas: Supplier qualification, newproduction development/introduction, and productionLogistics requirements and processesSleep Number’s relationship with Suppliers is defined by the provisions, terms, and conditions of itsagreement with the Supplier, or, where applicable, Sleep Number’s purchase order terms. Compliancewith the guidelines of this manual or acceptance/approval of the Supplier’s Parts does not relieve theSupplier of any obligations or liabilities stated in the purchase order or agreement.In the event of conflict, the following order of precedence shall apply: Design Record (if applicable)Master Supply Agreement (MSA)Purchase Order/AgreementProcurement SpecificationsSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 3
Supplier Manuals (SBM, SQM, SLM)3.0 General ExpectationsOur MissionTo improve lives byindividualizing sleepexperiencesOur VisionTo become the world’s most belovedbrand by delivering unparalleled sleepexperiencesSleep Number Suppliers are responsible for following all requirements and guidelines in this manual. Ifthe requirements and guidelines are not followed, a nonconformance will be issued to the Supplier anda Supplier Corrective Action Request (SCAR) will be issued. For more information, please refer to theSupplier Quality Manual.Sleep Number will provide updates and revisions to this manual, as necessary. Suppliers are expectedto incorporate these updates and revisions into their logistics system in a timely manner. If changesgenerate a question or potential problem for a Supplier, it is the Supplier’s responsibility to bring theissue to the attention of Sleep Number.Critical Definitions: Shall – The word “Shall” indicates mandatory requirements.Should – The word “Should” indicates a recommendation.Sleep Number Suppliers shall follow the logistics requirements and guidelines in this manual, whileproviding quality service and products.4.0 PackagingOverview: This section lays out the packaging requirements Suppliers shall follow to meet SleepNumber’s expectations.4.1 PalletsOverview: This section lays out the pallet size and construction, and load design requirementsSuppliers shall follow to meet Sleep Number’s expectations.4.1.1 Size and ConstructionSuppliers shall adhere to the following pallet size and construction requirements:Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 4
Style and MaterialOversizedInternational Stringer style pallets are preferred over block style pallets In most cases, pallets shall be constructed of either hardwood or softwood.Hardwood is preferred over softwood Hardwood stringer style pallets shall have screw shank nails Softwood stringer style pallets shall have ring shank nails Non-wooden and returnable pallets are acceptable with approval from SleepNumber Oversized pallets shall be designed for use with 42” and 60” forks Oversized products shall be palatized on a single pallet with no overhang International shipments that require ISPM-15 certification by US federal, state, orinternational law shall have ISPM-15 conforming pallets4.1.2 Load DesignSuppliers shall adhere to the following pallet load design requirements: Palletized loads shall not overhang beyond the footprint of the palletShipping cartons shall be loaded so that shipping carton labels face outwardsPallet loads shall be secured in a manner to retain the quality of product throughoutshippingPyramid stacking is not permittedThere are three categories of pallet load heights, less than 44”, less than 56”, and less than 94”.Suppliers shall consult with Sleep Number to determine which category their shipments fallunder based on product height and weight.Mixed LoadsMixed loads refer to pallets containing more than one part number and/or lot number.Mixed loads are not the preferred method but may be used when single part numberand/or lot number loads are not possible. Suppliers shall adhere to the followingrequirements when using mixed load pallets:Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 5
Shipping cartons on mixed load pallets shall be grouped by Sleep Number partnumber and lot number, with each individual carton only containing a single partnumberAll shipping cartons on a single mixed load pallet shall be for the same destination4.2 Shipping CartonsOverview: Shipping cartons are used to house product during shipping and refer to boxes designedfor manual or mechanical handling. This section lays out all shipping carton requirements Suppliersshall follow to meet Sleep Number’s expectations.Description: Suppliers shall adhere to the following shipping carton requirements:Size and ConstructionCarton ContentsTesting and Validation The size of shipping cartons shall be chosen to maximize shipping density as well asefficiency of pallet utilization Cartons shall be made with commonly recyclable materials Cartons shall be securely sealed to ensure they do not open during shipping Expendable packaging is standard, however returnable packaging is permitted onlywith approval from the Sleep Number Sourcing department Each shipping carton shall only contain products with the same part number Consult the Sleep Number Sourcing department for approval on how contents of acarton are to be packedAll packaging containing Sleep Number manufactured products and purchased finishedgoods shall be performance tested. Suppliers shall refer to the Sleep Number PackagingPerformance Test Standard document (4014-PR-08) for testing standards and procedures.Page five of the document contains packaging/product test matrix and shall be used todetermine which testing method is appropriate for specific types of product.4.3 Plastic Bag and Film RequirementsOverview: This section lays out plastic bag and film requirements Suppliers shall follow to meet SleepNumber’s expectations.Description: Suppliers shall adhere to the following plastic bag and film requirements: Plastic bags shall be correctly sized for the contents and surrounding packagingPlastic bags shall be properly sealed to perform the intended purpose of the bagSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 6
Resin composition and recycled content shall be chosen with consideration of productinteraction with the filmCommonly recyclable materials are preferredVented and non-vented films shall be chosen with consideration of the purpose of the film4.4 Packing Slip RequirementsOverview: This section lays out the packing slip requirements that shall be followed by Sleep NumberSuppliers to ensure efficient and accurate interpretation of each Supplier’s shipping documentation.For more information regarding packing slip requirements, Suppliers shall contact the Sleep NumberSourcing department.Description: All packing slips shall contain the following information: Supplier NameShip to AddressShip from AddressSleep Number Purchase Order Number –Release NumberPurchase Order Line Number(s)Purchase Order Release Shipment LineNumber (s)Sleep Number Part Number(s) Part Quantity for each Part NumberPart DescriptionLot Number(s)Handling Unit QuantityPackage Quantity for each Handling UnitHandling Unit Gross WeightHandling Unit Net WeightTotal Gross Weight in PoundsBill of Lading NumberSuppliers shall adhere to the following packing slip requirements: Packing slip shall be typed, easily located, easy to follow and understand, and shall matchlabel informationDetails of transmission shall match the packing slip if Electronic Data Interchange (EDI) orActive Orders (AO)Sleep Number purchase order number and bill of lading number shall be barcoded on eachpacking slipA packing slip shall be included with each shipment5.0 LabelingOverview: This section lays out labeling requirements for Suppliers. All labeling requirements shall befollowed by Sleep Number Suppliers to ensure efficient and accurate interpretation of incomingshipments. This will enable a smooth receiving process and the ability to easily identify and trackproduct in Sleep Number warehouses. The label requirements in this document are based off AIAGstandards.Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 7
5.1 Size and LayoutSuppliers shall adhere to the following label size and layout requirements:4” tall by 6” wide, unless otherwise denoted**Exceptions: Mixed load pallet labels: May be bigger than 4” tall by 6” wide to fit all requiredinformation Foam product labels: 6” tall by 4” wide Inner-core textile labels: 2” tall by 3” wideDimensionsNo more than 8 lines are permitted in a single label block, apart from the largest block onmixed load pallets.Lines per BlockWhite with black print, unless otherwise denoted**Exceptions: PPAP (Production Part Approval Process) labels: Orange with black print Deviation labels: Yellow with black printColor5.2 BarcodesSuppliers shall adhere to the following barcode requirements: Code 128 barcodes are preferred, but code 39 barcodes are also permittedAll barcodes on incoming product shall be 1DMinimum height of 0.5”Width shall not exceed 3”At least 0.25” of empty space on both ends of the barcode5.3 Pallet LabelsOverview: There are two types of pallet labels, mixed load, and single part. Mixed load pallet labelsare used for pallets containing more than one part number, while single part pallet labels are usedfor pallets containing a single part number. This section lays out the requirements for both singlepart and mixed load pallet labels that Suppliers shall follow to meet Sleep Number’s expectations.Description: All pallet labels shall contain the following information: Supplier NameShip to AddressShip from AddressSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020 Sleep Number Purchase Order Number –Release NumberSleep Number Part Number(s)UNCONTROLLED IF PRINTEDPage 8
Part DescriptionShipping Box QuantityTotal Part QuantityLot Number(s) ASN Number(s)Gross Weight in PoundsShipment DateSuppliers shall adhere to following pallet label requirements: One pallet label shall be placed on each pallet on the upper half of the unit load (seeFigure 9 in Appendix B for a visual representation) Pallet labels shall be placed on the outside of the shrink wrap Sleep Number purchase order and release number(s), Sleep Number partnumber(s), total part quantity, lot number(s), and ASN number(s) shall be barcodedon each pallet label In cases where a mixed load shall be used, pallet labels shall contain all SleepNumber part numbers and lot numbers, and how many cartons are associated witheach Sleep Number part number Mixed load pallet labels shall be at least 4” tall by 6” wide, but may be bigger toaccommodate all required label information and barcodes One part number and lot number per pallet is the preferred method For pallets containing a single part number, Suppliers shall adhere to the single partnumber pallet label template seen in Figure 1 in Appendix A For mixed load pallets, Suppliers shall adhere to the mixed load pallet template seenin Figure 2 in Appendix APallet Label PlacementBarcodesLoad Type RequirementsPallet Label TemplatesSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 9
5.4 Product LabelsOverview: This section lays out the product label requirement Suppliers shall follow to meet SleepNumber expectations.Description: The following table displays the information that shall be contained on general productlabels, foam labels, textile roll labels, inner-core labels, FR cap carton labels, FR cap tags, threadcarton labels, and thread spool labels.ComponentSupplier NameShip to AddressShip from AddressSleep Number Purchase Order Number –Release NumberSleep Number Part NumberPart DescriptionPart QuantityLot NumberGross Weight in PoundsShipment DateRoll ID elsInnerCoreLabelsFR XXBBBBB*BXXXXXXXBXFR CapTagsBXBThread ThreadCarton SpoolLabels LabelsBBBXXXXAn “X” indicates that the component shall be included on the corresponding label without a barcode,while a “B” indicates that the component shall be included on the corresponding label with abarcode.*The Lot Number and Sleep Number Part Number on foam labels shall be printed in 45-point font.The Lot Number on foam labels shall be made up of the last two digits of the current year, a dashfollowed by the week of the year, followed by the Sleep Number assigned Supplier code (YY-WW AA,where AA is the Sleep Number assigned Supplier code).The following table displays additional requirements for general product labels, foam labels, textileroll labels, inner-core labels, FR cap carton labels, FR cap tags, thread carton labels, and thread spoollabel.Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDXPage 10XX
GeneralProductLabelsFoamLabelsTextileRoll LabelsInnerCoreLabelsFR CapCartonLabelsFR Dimensions4” X 6”6” X 4”4” X 6”2” X 3”4” X 6”-4” X eLandscape-Landscape-LabelPlacementFigure 10 inAppendix BFigure 10 inAppendix BOutsidePlasticCoveringInner-Coreof TextileRollFigure 10 inAppendix BSewn intoFR CapFigure 10 inAppendix BBottom ofThreadSpoolTemplateFigure 3 inAppendix AFigure 4 inAppendix AFigure 5 inAppendix AFigure 6 inAppendix AFigure 3 inAppendix A-Figure 3 inAppendix A-RequirementOnly One PartNumberand Lot NumberSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 11
5.5 PPAP and Deviation LabelsOverview: PPAP and deviation parts shall be identified with a special label. This section lays out therequirements for PPAP and deviation labels that Suppliers shall follow to meet Sleep Number’sexpectations.Description: Suppliers shall adhere to the following PPAP and Deviation label requirements:RequirementPPAP LabelsDeviation LabelsOrangeYellowThe words “PPAP Samples Not for ProductionUse” and the PPAP numberThe word “Deviation” and the Deviation numberDimensions4” X 6”4” X 6”LabelPlacementDirectly below the carton label, or adjacent tothe carton label when there is no room belowDirectly below the carton label, or adjacent to thecarton label when there is no room belowTemplateFigure 7 in Appendix AFigure 8 in Appendix AColorContent6.0 Retail ShipmentsOverview: This section lays out the retail shipment label and packing slip requirements Suppliers shallfollow to meet Sleep Number expectations. These requirements apply to all product being shipped viaUPS to Sleep Number retail stores.Description: Suppliers shall adhere to the following content requirements for retail shipment labels andretail packing slips:Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 12
ComponentRetail Shipment LabelsSupplier NameShip to AddressShip from AddressStore Name, Including “Sleep Number”*Store Number*Suite Number*Sleep Number Purchase Order Number – Release NumberSleep Number Part NumberPart DescriptionQuantity Shipped vs. Quantity OrderedShipment DateRetail Packing SlipsXXXXXXXXXXXXXXXXX*Store Name, Store Number, and Suite Number shall be included in the “To” block of the generalproduct label templateSuppliers shall adhere to the general product label template seen in Figure 3 of Appendix A, except forthe “Lot Number” and “Gross Weight”, which shall be left blank.A packing slip shall be included with each shipment.Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 13
7.0 TransportationOverview: The following section lays out the domestic and international transportation requirementsSuppliers shall follow to meet Sleep Number expectations. All general questions shall be directed toTransportation@sleepnumber.com.7.1 Supplier Transportation ResponsibilitiesSleep Number requires all Suppliers to adhere to the following transportation responsibilities andrequirements:CommunicationShipping ComplianceVehicles and Trailers Fill out “Supplier Pickup Request Form” provided by Sleep Number’s Transportationdepartment Give Sleep Number’s Transportation department 48 hours’ notice to source a truck Notify Sleep Number’s Transportation department of any changes in packaginginformation, including new packaging Notify Sleep Number’s Transportation department prior to any changes in contacts andshipping hours Communication of shipment data prior to the first production shipment Conformance with any applicable laws, regulations, and standards pertaining todangerous/hazardous/toxic materials and packaging Ship parts according to the planner’s shipping instruction, ensuring product is receivedat the Sleep Number destination by the due date on the PO release Safe and proper loading of carrier trailers Only load a 53’ Dry Van (No Refrigerated Trailers) vehicleSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 14
7.2 Domestic Routing RequirementsSuppliers shall adhere to the following domestic routing requirements:Full Truckload (FTL)Less than Truckload (LTL) All shipments that are 10 standard size pallets (48” x 40”) shall be shipped FTL All shipments that are 9 standard size pallets (48” x 40”) and under shall be shippedLTL Set pickup appointments with Sleep Number’s LTL carrier, XPO logistics, and bill toSleep Number The Sleep Number preferred carrier for small parcel is UPS. The Supplier isresponsible to use the proper Sleep Number UPS account to make small parcelshipments Reach out to planner for instruction on shipment method of the parcel Contact Sleep Number’s Transportation department for quoting and coordinationParcelAir7.3 International ShipmentsOverview: This section describes the requirements pertaining to international shipments thatSuppliers shall follow to meet Sleep Number’s expectations.Description: Suppliers shall adhere to the following international shipment requirements: All ocean requests shall be directed towards Sleep Number’s freight forwarder, SteamLogistics - sleepnumber@steamlogistics.comFor air shipments, Suppliers shall reach out to either their local UPS office or Steam Logisticsto help with coordinationSleep Number requires Suppliers to prepare import documentation that complies with USCustoms and Border Protection (CBP) regulations. All documentation shall be in EnglishAll container request shall be made 2 weeks prior to shipment dateSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 15
7.3.1 Document TimingCommercial invoice and packing list shall be provided to the assigned freight forwarderaccording to the timing requirements below:Send byOceanNo later than 2 business days after vessel departure.No later than 1 hour after loading completion.Send by AirFor additional information, contact Sleep Number’s Transportation department7.3.2 Customs InvoiceAll customs invoices shall include the following information: Supplier Name and AddressSold to Name and AddressShip to Name and AddressInvoice NumberInvoice DateIncoterms Payment termsCurrency of PurchaseSleep Number Assigned SupplierCodeMaster House Bill Numbers QuantityUnit Cost in currency of purchaseTotal Cost in currency of purchaseCountry of Origin Line level detail shall include the following information: Sleep Number Purchase OrderNumber – Release NumberSleep Number Part NumberPart DescriptionPE NumberLine level information shall be on one line per Purchase Order Number and Sleep Number PartNumber combination.7.3.3 MarkingsU.S. Customs regulations require that every article of foreign origin imported into the UnitedStates shall be marked in a conspicuous place as legibly, indelibly, and permanently as thenature of the article will permit. The markings must be made in such a manner as to indicate tothe ultimate purchaser in the United States the English name of the country of origin of thearticle, at the time of importation into the United States. Containers of articles excepted frommarking shall be marked with the country of origin of the articles unless the container is alsoexcepted from marking.Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 16
7.3.4 Country of OriginThe Country of Origin is the country of manufacture, production, or growth of a product. TheSupplier shall provide Sleep Number with the correct Country of Origin Information. If there areany changes to an article’s Country of Origin status, the Supplier shall immediately notify SleepNumber.The Country of Origin of an article may be changed in a secondary country if one of thefollowing occurs: If the further work or material added to an article in the second country constitutes asubstantial transformationFor a good of a NAFTA country: if under the NAFTA Marking Rules (19 CFR Part 102) thesecond country is determined to be the country of origin of the good8.0 DefinitionsTermDefinitionsAIAGAutomotive Industry Action GroupAOActive OrdersFTLFull TruckloadEDIElectronic Data InterchangeISPM-15International Standards for Phytosanitary Measures No. 15LTLLess Than TruckloadNAFTANorth American Free Trade AgreementPPAPProduction Part Approval ProcessSBMSupplier Business ManualSLMSupplier Logistics ManualSQMSupplier Quality ManualSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 17
9.0 Revision HistoryRevDescriptionByRelease DateAInitial release.M. Silverman12/11/2020Supplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDApproved ByT. Wixo, D. Scites, M. Stone,M. FirtkoPage 18
10.0 Appendix A – Label TemplatesFigure 1: Single Part Number Pallet Label TemplateFigure 2: Mixed Load Pallet Label TemplateSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 19
Figure 3: General Product Label TemplateFigure 4: Foam Shipping Box Label TemplateSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 20
Figure 5: Textile Roll Label TemplateFigure 6: Inner-Core Label TemplateSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 21
Figure 7: PPAP Label TemplateFigure 8: Deviation Label TemplateSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 22
11.0 Appendix B – Label PlacementFigure 9: Pallet Label PlacementFigure 10: General Product Label PlacementSupplier Logistics Manual (SLM)4011-ML-03 Rev A12/11/2020UNCONTROLLED IF PRINTEDPage 23
Supplier Quality Manual (SQM) - provides an overview of Sleep Number's standards and expectations to ensure higher quality and efficiency. Supplier Logistics Manual (SLM) - provides the standards and expectations of supplying parts to Sleep Number, including the processes for delivery, labeling, logistics, and packaging. 2.0 Scope
