1.    When is the Consignment Program transferring from Versacold to Costco Langley Depot?

   Effective September 26, 2005

2.    What is the general cost difference to current rates?

Initial Handling (H)+ Storage (S):

Old rate – CWTG (per 100lb gross)

(H) - $1.51 + (S) - $1.16        

* New rate – Per Pallet

(H) - $15.75 + (S) - $4.25       

3.    When does the Weekly Storage Re-occurring (SR) rate begin?

We are setting the anniversary date of 7 days after the receiving date.

Old rate - $1.16 approx – CWTG (Re-occurring Anniversary)

*New rate - $4.25 – Per pallet (Re-occurring 7day Anniversary)

4.    If a vendor delivers 2 pallets worth of product and only half of 1 pallet is shipped by the end of the 7 days, will they still be charged for 2 pallets for re-occurring storage?

Yes – due to pallet still utilizing a pallet position in warehouse.

5.     Why did the costs convert from CWTG (per 100lb) to Pallets?

We cannot control how vendors bring in product, nor the weights per pallet. Our warehouse and distribution activities are based on Pallet movement whether it is to unload, receive, label, putaway, retrieve, pick and ship.

Our business model is based on planning number of pallets moved per man hour and our storage space is priced per cubic foot the pallet position occupies our Cold Storage in warehouse.

6.    What does the handling cost include?

One time charge for in and out movement for a 40WX48LX60”H plt.

We will not be requiring vendor to bring in pallet configurations of 40’Wx48”Lx60”H upon receipt.  A combination of Versacold and Carrier Driver will assist in breaking down transport height shipped product to fit our standardized pallet racking as part of the Gateway services.

** Please note: Costco requires a Maximum height of 60” and also 1SKU (stock keeping unit) per Pallet.

7.    The .20 cents per case charge– where is that applied?

For Direct PO’s to one of the 12 Costco warehouses (Not the Langley Depot)

Would apply to a last minute Buyer directed PO.

Also may apply to a missed depot receiving appointment due to stock shortage/availability, which may require buyer /vendor to direct this type of order pick distribution by Versacold.

*.20 cents per case does not apply for regular Depot PO’s on trailer already scheduled to deliver to the Langley Depot

8.    Will freight costs be higher?

Yes in the sense that now the vendor will be required to pay for Shuttle costs transportation to the new Costco Langley Depot.

Although we do feel our AQ rate blended with other warehouse costs maintains high efficiency standards for the new logistics required by this change.

9.    Who will Versacold use as a carrier?

CPX, who currently executes distribution from Versacold to Costco warehouses, has offered the most cost efficient bid for shuttle service.

10.    What do the AQ Shuttle services include?

Lower rate suiting transportation of A Q freight (Any Quantity - No minimums)      

$1.50 – per 100lbs                                                                  

$15.00- per 1000lbs

Versacold will provide Proof of Delivery (POD) following confirmed arrival of PO on date due. All discrepancies will be investigated to conclusion by Versacold.

* All charges including transportation expenses from Cliveden location to Costco Langley Depot will be billed by Versacold.

 11.    How many shipments are required by Costco per week?

Cooler – Monday, Wednesday and Friday

Frozen – Tuesday and Thursday

12.    Will Versacold be responsible for DEPOT PO receiving appointments?

Yes – Currently Depot requires 48 hours notice

All appointments must be made before 2pm depot closing time daily.

* IMPORTANT - Orders must be forwarded to Versacold as soon as Buyer informs vendor of PO.

13.    What are the Procedures of Ordering for deliveries to Langley Depot?

Step 1 – Costco Buyer would send PO request to Vendor.

Step 2 – Vendor would forward request to Versacold (Immediately after receipt of order from Buyer – cannot be delayed – earliest expectancy for delivery is 48hours)

Step 3 – CSR to process order and forward paperwork directly to warehouse - and will apply release number to forward to vendor.

Step 4 – Order will be picked for shipping

Step 5 – Appointment will be made with Costco (No later then 48 hours notice)

Step 6 – Signed paperwork (Consisting of Bill of Lading and Withdrawal Notice sent back upstairs to CSR after shipping

Step 7 – Order arrive at Costco Langley Depot receivers to sign load sheet (Similar to Delivery Acknowledgment) and fax back to CSR

Step 8 – CSR responsible to correct any adjustments required on order

Step 9 – CSR to post order as shipped

Step 10 – CSR to transmit all documents as POD to vendor

*Versacold does plan to be set up to receive Freight forwarding through Costco system providing us with notification of an order being requested by buyer as soon as they attach a PO #. Once we are set up with Freight forwarding we will be able to process order right away avoiding any chance of delay due to failure of forwarding PO request.

14.    With consideration that Costco will now be responsible for Depot program, will they manage it similar to how Versacold has done?

Vendors are expected to experience no major impact with procedures on Consignment till program end. Costco may alter certain procedures and reports to coordinate with operations handled at New Depot. Please discuss with your buyer.

15.    Will Versacold still be sending over weekly reports?

Versacold will no longer be sending the Shipment Recap Report – due to Costco Consignment program no longer being carried out at our location. There are no changes to the Costco Consignment program at the Versacold Great Plain’s location in Calgary.

Versacold can provide a Transaction by date report weekly or monthly as well as a Stock status report as per Vendor request at no extra costs.

Versacold will provide Proof of Delivery paperwork (B/L and withdrawal notice) transmitted immediately after confirmation of shipment to Costco Langley Depot.

With POD notification we will also forward your shuttle services costs invoice for PO confirmed delivery.

16.    What about Department of Fisheries + Oceans (DFO) and Canadian Food Inspection Agencies (CFIA) requirements)?

There are rates developed and in place, please contact Versacold – Cliveden’s Center Manager to discuss further.