11.0 Collect Vendor Routing and Shipping

11.1 Definition of Collect Freight Requirements

• FOB (Free on Board) Origin-Collect Freight means that the freight is COLLECT at the Origin and that the buyer (Best Buy) assumes control of the goods the moment the carrier signs the Bill of Lading and goods depart the seller’s loading dock.
• Best Buy is responsible for:
  • Assigning loads to carriers.
  • Designating actual ship date to ensure product arrives within PO delivery date window.
  • Filing claims for loss or damage, where carrier is at fault.
  • Payment of freight charges.
• The Best Buy Collect Inbound Transportation Department must route all shipments where Best Buy has agreed to assume responsibility for freight charges.

11.2 Collect Vendor On‐Boarding Process

• Once the Collect Vendor Program Agreement (VPA) is complete, vendors will be trained on the Collect Shipping Process which will include a review of the mandatory requirements found below.

11.3 Collect Mandatory Requirements

11.3.1 Request Routing

• Vendor is responsible for submitting and monitoring routing requests.
• Log on to AP Visibility/Enable Trading to request routing.
• For access to the AP Visibility/Enable Trading site, visit the AP Visibility User Guide.
• The following information is required:
  • Vendor load-at origin
  • Vendor name
  • PO
  • UPC number
  • Number of trailer feet per PO
  • Number of cartons per UPC
  • Available date
  • Reference number

11.3.2 Shipping Instructions

• Found on AP Visibility/Enable Trading and are available as loads are accepted by Best Buy Contracted Carriers.
• Truckload: Per the Shipping Instructions, Carrier will contact the Vendor to arrange pick up details at least 24 hours prior to Assigned Pick Up date.
• Less Than Truckload: Vendor to contact the respective less-than-truckload carrier’s local terminal as indicated on the Shipping Instructions for pickup. Any exceptions to this process will be communicated to the vendor by the Best Buy Inbound Transportation team.

11.3.3 Bill of Lading

• For all FOB-Origin (Collect) vendors, Best Buy prefers use of the VICS BOL.
• Freight only invoice charges: Must reference “Bill Third Party” on the BOL where terms of purchase are FOB Origin- Collect. The third-party address is as follows:
  Best Buy (Attn: Freight Payment)
  7601 Penn Avenue South
  Richfield, MN 55423
• See Bill of Lading Requirements above, and take special note of the following:
  • “Best Buy Load ID XXXXXX”: Collect Shipments ONLY (supplied by the Best Buy Collect Inbound Transportation
    Department and is required for all Collect shipments). Best Buy Load ID must be included on the consignee section of the Bill of Lading (BOL). The notation must be listed on the top page of the BOL as “BEST BUY LOAD ID”, followed by the actual number. Best Buy Load IDs are valid for only one shipment and are not to be used for multiple shipments. Shipments that do not comply with the above terms will result in a chargeback to the vendor.
  • “BEST BUY DELIVERY DATE (mm/dd/yy)”: Best Buy PO delivery date is required on the consignee section of the Bill of Lading (BOL). The notation must be listed on the top page of the BOL as “BEST BUY DELIVERY DATE mm/dd/yy”. Shipments that do not comply with the above terms will result in a chargeback to the vendor.
• Example of a compliant Bill of Lading for Collect shipments:

11.4 Collect Additional Information

11.4.1 Coordinate Shipment and Request Routing

• Vendor routing request must be received no later than 12:00 PM CST 7 business days prior to the PO delivery date.
• Vendor routing request must have a ‘ready to ship’ date of 5 business days prior to PO delivery date.
  • Weekends and the following holidays are not considered business days: New Year’s Day, Memorial Day, Juneteenth, 4th of July, Labor Day, Thanksgiving Day, and Christmas Day.
  • If one of the above holidays falls on a Saturday, then the prior Friday will be considered a non-business day. If one of the above holidays falls on a Sunday, then the following Monday will be considered a non-business day.
  • Routing requests received later than 12:00 PM CST will be assumed received on the following business day.
• Vendors should not attempt build to truckload quantities. However, if one PO/reference number exceeds a single truckload, the vendor should break the PO into truckload quantities. If the same reference number crosses multiple truckloads, list the reference numbers as XXXX-A, XXXX-B, etc.

11.4.2 Shipping Instructions

• Adhere to the prearranged pickup date and time Shipping Instructions found on AP Visibility/Enable Trading.
• Provide a minimum 24-hour notice for any shipment cancelations or reschedules.

11.4.3 Truckload

• Carrier will contact the vendor to arrange pick-up time as per shipping instructions.
• All truckload shipments shall be transported in a sealed trailer, with seal applied by vendor and the seal noted on the bill of lading at the point of origin.
• Best Buy-authorized carriers are not required to inspect product prior to loading or perform a piece or pallet count.
• If Best Buy’s authorized carrier seals the trailer, vendor shall verify the seal number and its affixation to the trailer and then sign the bill of lading as confirmation.
• Vendor will be responsible for any shortages, damages, or mis-description of products if the shipment is delivered with the seal intact and noted on the signed bill of lading at the point of destination.

11.4.4 Less Than Truckload

• Vendor will contact the respective less-than-truckload carrier’s local terminal as indicated on the shipping instructions for pickup. Any exceptions to this process will be communicated to the vendor by the Best Buy Inbound Transportation team.
• Less-than-truckload shipments arriving on the same day from the same origin to the same destination should be consolidated and listed on a Master BOL.
• For less-than-truckload shipments, vendor will enable a representative of Best Buy’s authorized less-than-truckload carrier to perform an inspection prior to loading. Vendor will also allow Best Buy’s authorized carrier to:
  • Perform a piece count and pallet count.
  • Verify the condition of products (excluding concealed damage).
  • Compare the product description to the bill of lading.
  • Observe the loading of the products onto the carrier’s equipment.
• If there is no evidence or notation on the bill of lading at the time of delivery that the shrink-wrap has been torn, removed, or in any way violated, the Vendor is responsible for any shortages or mis-description of product.

11.4.5 Collect Guidelines

• Vendor should notify the Collect Inbound Transportation Department via email at CTMSupport@bestbuy.com of any facility closing due to inventory, holidays, etc. a minimum of 10 business days in advance of the closing.
• Failure to adhere to the routing request, shipping instruction pick up, and cancel/reschedule notification requirements above will result in delayed pickup and vendor responsibility for all related detention and cancelation charges.
• Best Buy will not be responsible for payment of any transportation for any shipment transported on a collect basis where Best Buy did not provide the routing instructions.
• Freight Allowance for Collect Programs covers carrier ground transportation services based on SKU specifications provided by the vendor but does not cover Exceptional Shipments. Exceptional Shipments include:
  • Any products shipped from the vendor direct to a Best Buy retail store.
  • Other product shipments that incur additional freight charges over the projected cost of motor carrier ground transportation, including but not limited to pallet shippers.
  • Items shipped that do not meet SKU specifications established by the vendor in Best Buy’s system (PDM).
  • Additional freight charges, including expedited transportation services, due to vendor-caused events.
• Any rebates or allowances, such as price protection and MDF funds, designed to lower the cost of product after receipt by Best Buy will not be subtracted from the invoice amount for any past or future shipments. Likewise, products returned to vendor, pursuant to the Vendor Agreement, will not be subtracted from the invoice amount for any products shipped under the Collect program.

11.4.6 Fuel Surcharge

• The monthly fuel surcharge will be calculated based on the U.S. On-Highway Diesel Fuel Prices*(dollars per gallon) that is published by the U.S. Energy Information Administration. The U.S. On-Highway Diesel Fuel Prices are reported on Monday of each week and will become effective the next day. If Monday is a recognized federal holiday, the index will be determined on Tuesday and the effective date will be Wednesday of that week. For questions or a copy of the Best Buy Fuel Surcharge Pricing Index, please contact CTMSupport@bestbuy.com.

Shipments that do not comply with the above terms will result in chargeback to the vendor and be deducted from the vendor’s invoice. See Shipping Compliance Program for additional details. Questions, comments, or any issues should be immediately communicated to the Collect Inbound Transportation Department via CTMSupport@bestbuy.com.

11.5 Shipping Compliance Program (Transportation)

• The Shipping Compliance Program is designed to track and help eliminate non-compliant shipments from vendor partners into Best Buy facilities as identified by our Transportation partners.
• NOTE: Vendors use BBY AP Visibility via EasyLink for all AP inquiries.
  • For access to the AP Visibility/Enable Trading site, visit the AP Visibility User Guide.