SUPERVALU INC. Terms & Conditions of Purchases
THE FOLLOWING TERMS SHALL BE APPLICABLE TO ALL PURCHASES, INCLUDING PURCHASES THROUGH ELECTRONIC MEDIUM.
SUPERVALU's Forms, any SUPERVALU invoice, any supplemental instructions, current SUPERVALU shipping, billing and routing instructions, Supervalu's Continuing Guaranty and Agreement and these Terms and Conditions (collectively, the "Terms") set forth the entire agreement between Vendor and SUPERVALU with respect to the sale by Vendor and purchase of goods by SUPERVALU. Acceptance of this agreement is expressly limited to the Terms. NEITHER VENDOR'S INVOICE NOR ANY OTHER VENDOR COMMUNICATION SHALL VARY THE TERMS. As used herein, the term "Vendor" shall include manufacturer, supplier, broker, agent and any authorized representative of the foregoing that is using SV Harbor.
B. ACKNOWLEDGMENT of ACCEPTANCE of TERMS
By entering SUPERVALU's SVHarbor system (the "System") and/or by shipping products to SUPERVALU, Vendor expressly accepts and agrees to perform in accordance with the Terms. Vendor accepts responsibility to comply with the Terms not only with respect to products subject to any promotional offer made by Vendor in the System, but also with respect to all other supply of products to SUPERVALU. If, with respect to any form entered herein, Vendor realizes it will be impossible to fulfill all conditions of these Terms, it is Vendor's responsibility to specify in the notes section of the form entered any Terms with which Vendor cannot comply.
SVHarbor subscribers are subject to an annual subscription fee that is deducted from payments to Vendors (brokers are invoiced). Billing takes place every July and covers one year's subscription fees to the SVHarbor portal and all available SVHarbor applications for the following twelve months. The SVHarbor subscription fee is based on a Vendor?s annual SUPERVALU sales and the number of Vendor users added to the account. A broker?s fees are based on the number of vendors represented. SUPERVALU reserves the right to apply overdue broker payments to a represented vendor. If you have any questions regarding SVHarbor fees or access, please contact email@example.com.
C. SHIPMENT of PRODUCT
Prompt shipment of goods as specified in any order placed with Vendor and timely shipment are all of the essence for this Agreement and if shipment is not effected within the time specified or as required to fulfill SUPERVALU's requirements, SUPERVALU reserves the right, at its option and without limiting its other rights hereunder, to cancel any order, including any special promotions, or reject any goods delivered on an untimely basis and to hold Seller liable for damages sustained by Purchaser as a result of Seller's failure.
1. LATE SHIPMENTS: Shipments after the shipping date specified or after the shipping dates required to meet SUPERVALU's needs, will be identified. SUPERVALU will notify Vendor of SUPERVALU's intended disposition of the shipment and/or penalties to be assessed. SUPERVALU may assess Vendor a penalty (amount variable by DC) on those orders shipped past the required shipment date. SUPERVALU reserves the right to (i) return, at Vendor's expense (incoming and outgoing freight and handling charges where applicable), all shipments received after the required shipment date without authorization by SUPERVALU, and (ii) hold Vendor accountable for any special costs incurred by SUPERVALU caused by the late shipment.
2. PARTIAL SHIPMENTS AND BACKORDER POLICY: Partial shipments and/or backorders are acceptable only for the GM/HBC departments, but in any event will not be accepted without SUPERVALU's written authorization. All authorized backorders and partial shipments must arrive on a freight-prepaid basis and priced at the original bracket price. Partial shipments when accepted by SUPERVALU must arrive within SUPERVALU's required shipment dates or within the time frame required by SUPERVALU, and not after the authorized shipment date.
3. OVERAGES, SHORTAGES AND DAMAGES POLICY: The Bill of Lading and Purchase Order will be adjusted to reflect actual quantities at time of product receipt.
D. PROMOTIONS and ALLOWANCES
1. The Vendor will accurately enter the details of a promotional offer in the System by Cluster/RFT group. No promotional offer shall be deemed accepted by SUPERVALU until SUPERVALU acknowledges in written or electronic form SUPERVALU's acceptance of the offer. The terms of SUPERVALU's acceptance shall control over any contrary terms of Vendor's offer. The Vendor is required to:
o Use the correct vendor number
o Select the correct promotion dates
o Enter the correct dollar amount or lump sum
o Enter the correct promotion type
o Enter the correct UPC's for products subject to the promotion
o Select the appropriate D.C.'s/Clusters where the products will be promoted
o Accurately enter shippers and their components
SUPERVALU reserves the right to charge $100 per invoice per D.C. for errors on product obtained by SUPERVALU for any net cost discrepancies caused by the failure to follow these requirements. No charges will be imposed if SUPERVALU created the error.
2. To avoid error charges, Vendor shall communicate any exceptions or unique processing requirements in the Vendor comment section of the Promotion Form. This could include overlapping dates on which Vendor has scheduled promotions with SUPERVALU's affiliates, other products involved in the promotion, missing family group members (UPCs), or special funding arrangements.
3. Vendor may not exclude any like item (i.e.: "Family items") from a promotion without providing a reason in the Vendor comment section of the Promotion Form. Family items are identified as such in the System. SUPERVALU may add such like items to a promotion by notice to Vendor unless SUPERVALU accepts the exclusion of certain Family items based upon the information provided by Vendor. The Vendor will be notified of SUPERVALU's changes to the included items in a promotion, and will have the option to elect not to participate in the promotion. Vendor must notify SUPERVALU within five calendar days of receipt of SUPERVALU's notice, or Vendor will be deemed to have accepted the inclusion of such Family items.
4. The Vendor shall have an adequate supply of product available to meet the demands of the promotion. If Vendor fails to have an adequate supply available, Vendor shall reimburse SUPERVALU for damages incurred by SUPERVALU including, without limitation, the costs incurred for SUPERVALU to obtain substituted goods and the lost profit on sales caused by any shortage.
5. SUPERVALU offers two payment methods for billback promotional allowances (CMAPS):
o Prepayment through SUPERVALU's Trade Funds Efficiency Program (TFEP).
o Weekly invoicing for CMAP's reflected to retail each week.
6. The Vendor is responsible to maintain, in confidence, user logons into the System and ePromo, which provide access into Vendor's accounts. Vendor shall be responsible for all losses or damage resulting from loss of these logons.
7. Vendor shall inform SUPERVALU about revisions or cancellations in an approved promotion no later than two weeks before the start of the promotion. In the event Vendor fails to so notify SUPERVALU, SUPERVALU reserves the right to charge the Vendor a late cancellation or change fee (variable by region) as well as charging Vendor an amount equal to the profits on the lost sales resulting from such late cancellation or revision based upon the estimated item movement provided by the Vendor.
8. The vendor is responsible for following the Vendor Correspondences procedures below in order to resolve their correspondence questions and requests:
Access is assigned to the appropriate user by the vendor or broker SVHarbor Administrator. Contact the administrator to obtain a user name and password. To find out who the administrator is, or to request access to ePASS, e-mail firstname.lastname@example.org.
ePASS Correspondence Procedures
SUPERVALU utilizes SVHarbor ePASS (Partner Accounting Self Service) to address correspondence requests. The application allows trading partners electronic access to obtain copies of deductions, view the payment status of invoices and submit other requests, which are automatically routed to the appropriate area or person, who can best respond to the inquiry. The status of requests can be monitored and requesters will receive updates via email regarding the assignment, status and resolution of inquiries. Items older than 18 months, not previously presented, will not be researched.
Copies of deductions can be accessed by document number, date range or net amount. If the document cannot be located on ePASS, or additional backup is required, click on "Create PASS#" to submit a request for further information.
PAYMENT STATUS SEARCH (Vendors Only)
Payment information can be accessed by PO number, document number, net amount or location. The results include the applicable document date, due date, check number, check date and bank clear date. If payment information cannot be located on ePASS, or additional information is required, click on "Create PASS#" to submit a request for further information.
Inquiries are created through Document Search and Payment Status Search. Supporting documentation should be scanned and attached to the request. If repayment of a disputed deduction is denied, the PASS# may be re-opened, one time, in order to provide additional information or clarification. If repayment is denied again and the dispute remains unresolved, the deduction escalation process should be followed. This process takes place outside the ePASS application.
Deduction Escalation Process (Supply Chain Services Only)
a. In most cases, the location promotion or category manager will make the decision on the deduction in question.
b. If it is not possible to resolve the issue at this level, the next step is for the vendor to meet with the location product director.
c. If the issue is still unresolved, the vendor should meet with the location vice president of category management. The vendor should allow 30 days before going to the next level.
d. If the vendor has not been able to reach agreement after a meeting with the vice president of category management, we must be at a point of serious policy-to-policy differences between our two companies.
e. At this point, the vendor should redirect the discussions to the product department at our Home Office. Prior to having discussions with SUPERVALU Home Office, it is mandatory that the vendor provide full documentation of each meeting that has occurred with the location to include:
§ Dates of meetings to resolve the deductions
§ Names and titles of the SUPERVALU and vendor representatives in attendance for the meetings
§ Location response and disposition for each deduction in dispute
If this information is incomplete, SUPERVALU Home Office will not attempt to resolve the issue until such time as all supporting documentation is available.
CORPORATE COUPON DEDUCTIONS
SUPERVALU's Corporate Coupons are processed by International Outsourcing Services. Vendors can access coupon invoice detail within a deduction summary record, for twelve months, via an internet site maintained by International Outsourcing Services.
International Outsourcing Services Internet Site Procedures
f. Log on to web site www.id-infotrac.com.
g. Click on the line labeled "Retailer Coupon Redemption".
h. Type in a user verification code of "SECRET" (in capital letters). Click Accept.
i. Click on the SUPERVALU icon.
j. Click on the orange link labeled "Manufacturer Deductions".
k. The next page to appear is the Deduction Lookup page.
l. Input the SUPERVALU Vendor # and Deduction #, both of which appear on the check remittance. Corporate Coupon document numbers are in the format 99SV#######. When entering the Deduction #, enter everything except the 99SV (including the leading zeroes).
m. Press the "Search" button.
n. The next page to appear will identify the individual invoices within the summarized deduction.
o. Limited invoice detail is available by clicking on the invoice #. For lower level information such as store level detail and reason for denial, access the website of the clearinghouse (http://www.nchmarketing.com/us/index.asp, http://www.cms.inmar.com/ ), using the invoice #'s retrieved from the IOS website, www.id-infotrac.com, as the key to the clearinghouse detail.
VENDOR CORRESPONDENCE OUTSIDE OF ePASS
It is SUPERVALU's expectation that trading partners will use the SVHarbor ePASS application for all inquiries. For the limited number of partners that are unable to support or use ePASS, correspondence requests can be made as follows:
Scanning ability is required to attach documents
Postal mail to:
PO Box 9340
Minneapolis, MN 55440
Supply Chain Regions: Advantage Logistics, Eastern, Midwest/Southeast, Northern/Northwest, W. Newell & Co., Western
Retail Banners: Cub, Farm Fresh, Hornbacher's, Save a Lot, Shoppers
Non Resale Processing Only: biggs, Shop 'n Save
E. CHANGES in PRICE and OTHER VENDOR INFORMATION
The Vendor will notify SUPERVALU of any price change on products supplied to SUPERVALU with sufficient lead time in advance of the effective date of the price change. Specific required lead times will be established by department and could be revised periodically. All changes must be submitted in writing or electronically to SUPERVALU on SUPERVALU's Cost Change Form.
The Vendor will promptly provide SUPERVALU Vendor Correspondence an update as to pertinent information regarding their accounts such as manufacturer changes, change of product line changes as well as change of street address, phone number, e-mail address, etc.
F. INDEMNIFICATION, GUARANTY, and WARRANTY PROVISIONS
By submitting a promotional form to SUPERVALU and/or supplying products to SUPERVALU, Vendor acknowledges and agrees to:
1. Indemnify and hold harmless, at Vendor's sole cost and expense, SUPERVALU, its subsidiaries, affiliates and customers, as well as their respective directors, officers and employees, from and against any and all losses, damages, liabilities, penalties, claims, demands, suits or actions, and the costs and expenses thereof (including reasonable attorneys' fees) resulting from (i) any injury to or death of any person or property damage suffered directly or indirectly by any person or entity from the use of any merchandise or services offered by Vendor, (ii) any alleged or actual trademark, patent, copyright or proprietary right infringement arising out of SUPERVALU's use, sale or offering for sale of any merchandise or services offered by Vendor, (iii) any breach of any of the terms of these Terms, including a breach of the representations and warranties contained herein, or (iv) any personal injury or property damage arising out of or related to Vendor's (including Vendor's agents or employees) access to any SUPERVALU or affiliate locations (in the case of injury to an employee or agent of Vendor, Vendor's defense and indemnification obligation shall apply notwithstanding any limitation contained in the worker's compensation statutes of any state). SUPERVALU may, at its sole option, participate in the defense of any claim, demand, suit or action to the extent it is covered by the foregoing indemnity.
2. Guarantee that all merchandise and/or service herein provided to SUPERVALU by Vendor has been or will be advertised, priced, stamped, tagged, marked, manufactured, compounded, or produced, invoiced and delivered in full compliance with all the federal, state and local government laws, rules and regulations of any kind or nature, and that all usual "seller" warranties, which attach by operations of law, are to remain in full force and effect unless specifically waived in writing by SUPERVALU. In addition, Vendor shall Guarantee that all merchandise herein is merchantable and fit for its intended use.
3. Warrant and guarantee to SUPERVALU that all merchandise provided by Vendor is delivered at the prices stated on the front hereof or at lower prices and upon any better terms and discounts prevailing at the time of shipment.
4. Warrant and guarantee that the net price to SUPERVALU on this order is no higher than the net price charged by Vendor to any of SUPERVALU's competitors for goods of like grade and quality within a reasonably contemporaneous period.
5. Guarantee that in the event of a product recall or other withdrawal, Vendor will reimburse SUPERVALU for all costs involved in removing such goods from the stores and Distribution Centers; the handling, reshipment to Vendor or destruction of such goods, and all replenishment costs. Such indemnification, guaranty and warranty provisions shall survive any inspection, delivery, acceptance of, or payment by SUPERVALU for the merchandise.
6. In the event product is returned, Buyer will process a chargeback to the Vendor for the quantity and product price being returned. Chargebacks processed for returned product are reviewed against Vendor's current accounts payable status. If the Vendor's accounts payable status is active and supports the value of the return, the chargeback will be approved. If the Vendor's current accounts payable activity doesn't support the value of the return, the chargeback will be denied and other arrangements will need to be made between the Buyer and the Vendor.
7. Guaranteed Sale of Product: Vendor agrees that if after 90 days a new product is not meeting or exceeding the agreed upon weekly sales quantity, then the product may be discontinued by SUPERVALU. When a new or existing item has been active for 90 days or more, SUPERVALU may at its discretion notify the vendor by written notice that it has elected to discontinue specific items and the vendor or agent has 15 days to provide disposition instructions to SUPERVALU. Without instructions, and at the end of the 15 days SUPERVALU will dispose of the product and will deduct the original cost of the product on the next remit payment to the vendor.
The prices quoted to SUPERVALU shall be binding on Vendor in the event Vendor ships the merchandise to SUPERVALU, notwithstanding that the merchandise shipped is received and accepted at the destination with accompanying documents indicating prices higher than previously stated, unless prior to such shipment SUPERVALU has been advised of any such price increases(s) and SUPERVALU consents in writing thereto (Excluding Fresh Produce). SUPERVALU's acceptance of the merchandise shipped at prices in excess of the prices herein stated shall not be construed to be an acceptance of a counteroffer.
H. INVOICING INSTRUCTIONS
Unless stated to the contrary, Vendor will provide a separate invoice with each Purchase Order and/or delivery. Each invoice must show the D.C. name and number, department and if applicable, the order number and the number of cartons shipped under each invoice. SUPERVALU reserves the rights to charge back to Vendor any extra costs arising from Vendor's failure to comply with the above instructions.
§ Due Dates are calculated from Receipt of Goods or invoice date; whichever is later.
§ All EDI vendors should be transmitting invoices electronically. If an invoice is not transmitted, then we will pay manually from a hard copy, thus causing a possible delay in payment. In instances where we have to process and invoice manually, the due date is determined by the date we receive the invoice in Central Disbursements. A processing fee per invoice is assessed when errors occur on the vendor's side that requires hard copies of the invoices to be manually processed.
§ If hard copies of invoices are received in Central Disbursements past the term date, discounts will still be calculated.
§ Manual reconciliation of invoices is only necessary when there are costing differences. When research is required to resolve and reconcile an invoice, a processing fee is assessed.
§ SUPERVALU pays invoices in full and creates a separate transaction for any necessary deduction using the same invoice number.
§ Checks are cut on scheduled due dates. If a due date falls on a weekend, the check will be cut on the following Monday. If a due date falls on a bank holiday, the check will be cut the next business day.
§ If there is a contra balance, checks are not issued until the balance becomes a payable. Discounts are still calculated. Vendor statements are provided monthly, if a contra balance exists.
§ SUPERVALU only guarantees cash in bank when a vendor has met the prerequisites and been approved for the Electronic Funds Transfer (EFT) benefit.
I. PACKING and MARKING INSTRUCTIONS
Vendor shall be responsible to mark all cartons with Vendor's name and specific case/item UPC information (as applicable). An invoice must be included with each shipment.
J. SHIPPING, ROUTING and RELATED INSTRUCTIONS
SUPERVALU's policy with regard to the shipment of merchandise to SUPERVALU is as follows:
1. The carrier must coordinate an appointment time to deliver the merchandise to SUPERVALU's respective distribution center. Failure to do so may result in a financial penalty, which varies by distribution in addition to delayed unloading.
2. All shipments having the same destination on the same day must be combined and shipped on a single bill of lading, at the same price bracket, including shipments consigned to a freight consolidator.
K. FAIRSHARE RESET AND SCHEMATIC DEDUCTIONS
SUPERVALU has a mandated reset\cut-in program. By requesting a new item be placed within any SUPERVALU Banner (including Cub franchise stores) Vendor agrees to pay its fairshare of the necessary work to cut-in the items through SUPERVALU's program. Failure by Vendor to provide payment or labor for the fairshare cut-in work will result in a deduction by SUPERVALU.
SUPERVALU has a Vendor Supported Schematic Program. Vendor is required to have an agreement with SUPERVALU's schematic provider. In the event that Vendor does not have an agreement with SUPERVALU's schematic provider, SUPERVALU will deduct the amount of Vendor's fair share amount.
L. UNSALEABLES DISPOSITION and REIMBURSEMENT
The Vendor agrees to follow SUPERVALU's Unsaleable Product Policy; as such policy may be modified by SUPERVALU periodically on the reimbursement, handling and disposition of unsaleable product from retail stores and warehouses through reclamation facilities. This policy addresses reimbursement for unsaleable product in the grocery, frozen, dairy, general merchandise, and health and beauty care product groups.
Written Agreement by SUPERVALU is required before any swell allowance program is authorized. This includes any swell allowances that are passed on to the retailer in the form of an allowance or in the cost of the product.
Reimbursement by the Vendor to SUPERVALU for all unsaleable product returned will be calculated based upon each item's list cost and the cost of handling that item in the supply system, unless that Vendor is on a SUPERVALU accepted swell allowance program. Each Vendor may choose the disposition of their product. If no disposition is chosen, their product will be disposed of at the discretion of the reclamation center. This is the most economical chute as product is sold immediately for salvage to authorized salvage dealers.
M. ADDITIONAL REMEDIES
In the event of Vendor's breach, SUPERVALU reserves the right to:
1. Return at Vendor's risk and expense (incoming and outgoing freight and handling charges when applicable) all merchandise shipped in excess of order, before ship date or after cancellation date specified, shipped different from agreement or which is not equivalent to samples or specifications submitted or examined on which order is placed. It is understood that SUPERVALU's return of merchandise rights shall apply to all merchandise when found to be defective any time prior to resale and for which SUPERVALU allows the customer a refund or credit and upon the return of the defective merchandise, SUPERVALU shall have the right to charge back to Vendor the cost thereof, the freight involved and a handling charge.
2. Deduct any excess transportation charges accruing due to shipment moving over route or mode of transit other than that designated or due to merchandise being forwarded in more than one shipment.
3. Cancel any shipments in whole or the undelivered portion, without further liability hereunder, in case of fire, strike, act of God, casualty or any other cause beyond SUPERVALU's control, materially affecting any of SUPERVALU's operations.
The above rights are not exclusive; SUPERVALU shall be entitled to alternatively or cumulatively to damages for breach of this purchase order, an order requiring performance, or to any other remedy available at law or equity.
N. OTHER PROVISIONS
1. SUPERVALU may set off against amounts payable under these Terms, or pursuant to any sale by Vendor to SUPERVALU, all present and future indebtedness of the Vendor to SUPERVALU, or any of its parents, subsidiaries or affiliates, arising from this transaction or any other transaction, whether or not related.
2. Laws of the State of Minnesota hereunder shall govern these Terms and Conditions and any disputes.
3. SUPERVALU is an equal employment opportunity employer and is a federal contractor. Consequently, the parties agree that, to the extent applicable, they will comply with Executive Order 11246, the Vietnam Era Veterans Readjustment Assistance Act of 1974 and Section 503 of the Vocational Rehabilitation Act of 1973 and also agree that these laws are incorporated herein by this reference. The contractor also agrees to comply with the provisions of Executive Order 13201 Compliance (29 CFR Part 470), relating to the notice of employee rights concerning payment of union dues.
4. Any controversy arising out of, or relating to, this purchase order, or breach hereof, shall be finally settled by arbitration in accordance with the Commercial Arbitration Rules then obtaining of the American Arbitration Association, which arbitration shall be conducted in Minneapolis, Minnesota. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.
5. This Terms and Conditions supersede all other agreements or understandings (oral or written) and is intended by the parties to be a final expression of their agreement and the terms thereof. No prior course of dealing between the parties and no usage of trade shall be relevant to or supplement any term hereof.
6. Vendor may not assign or delegate its rights or duties under this purchase order without the written consent of SUPERVALU. SUPERVALU may assign or delegate its rights and duties under this purchase order without Vendor's consent.
7. The Terms embody the entire agreement and understanding of the parties hereto in respect of Vendor's supply of merchandise to SUPERVALU. The Terms supersede all prior agreements and understandings between the parties with respect to such subject matter. In the event of a conflict between the Terms and any purchase order, order confirmation or similar document, the Terms shall prevail. The Terms may be modified, amended or discharged only by a written instrument duly executed by both of the parties hereto.
8. SUPERVALU shall not be deemed to have waived any rights in the Terms unless such waiver is in writing and signed by SUPERVALU. No delay or omission on the part of SUPERVALU in exercising any right contained in the Terms shall operate as a waiver of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any future occasion.
Copyright © 2009 SUPERVALU INC. All rights reserved