STANDARD OPERATING PROCEDURE

Service Level Agreement

Premium Fulfilment Services Pty Limited

Operational standards for fulfilment, inventory management, delivery and receiving

1.  Definition

Business Day means a day which is not a Saturday, Sunday or public holiday in New South Wales.

2.  Services Overview

1. storage, packing and delivery of marketing materials and products to the Client and/or the Client’s customers.
2. Provide access to inventory and materials received through the applicable PFS system or platform.
3. Maintain accurate inventory records.
4. Perform regular cycle counts to support inventory accuracy.
5. Provide a dedicated support team and customer service contact.
6. Receive orders via web application, system integration or email, as agreed.
7. Pick, pack and dispatch orders using appropriate packaging and an agreed common carrier. Australia Post Parcel Service will be the default service level unless otherwise agreed.
8. Provide urgent or rush shipment handling upon request, subject to availability and applicable charges.
9. Maintain firewalls and other data protection measures that are reasonably practicable and appropriate to the services provided.
10. Continually review fulfilment processes for service and cost improvement opportunities.

3.  Fulfilment Process

1. Package and dispatch items via common carrier in accordance with requests received through the agreed ordering channel.
2. Receive and restock returned items where appropriate and in accordance with agreed procedures.
3. Deliver materials to the Client and/or end users as requested.

4. Order Processing and Service Levels

Orders will be processed and dispatched in accordance with the following service levels:

Urgent orders requested for dispatch sooner than the above service levels will be billed in accordance with the applicable Pricing Schedule.

All dispatch timelines are contingent upon the order containing an accurate and validated delivery address. Where an address is incorrect or cannot be validated, the applicable timeline will commence when the correct or validated address is received.

Where an order is modified after being placed through the online store or agreed ordering platform, the applicable timeline will recommence from the time the updated order information is received and available for processing.

5.  Delivery Schedules and Carrier Performance

PFS will make all reasonable efforts to meet scheduled delivery dates. However, as delivery may be affected by factors outside PFS’s reasonable control, PFS accepts no liability for failure to meet a scheduled delivery date where reasonable efforts have been undertaken to meet that date.

PFS has no control over the routine delivery operations, service levels or performance of Australia Post or other common carriers. Subject to the terms of the applicable Agreement and to the extent permitted by law, PFS will not be liable for any loss arising from the provision of, or failure to provide, carrier services, including loss of or damage to goods, delay, non-delivery, mis-delivery or other carrier-related service failure.

Freight charges are non-refundable once a consignment has been dispatched. PFS will not provide a refund, credit or reimbursement for freight costs or for goods lost or damaged in transit unless shipping insurance has been specifically requested and arranged prior to dispatch, in which case any claim will be subject to the applicable insurer’s terms, conditions and claims process.

Time is an integral element of PFS operations and quoted prices are based on the agreed schedules for completion. Any requested deviation from the schedules described or agreed by both parties at the commencement of an assignment may result in a change to the quoted price. Late receipt of materials may affect the completion date by a greater period than the actual time the materials are delayed, depending on operational scheduling and capacity.

6.  Inbound Inventory Receiving

1. Inbound inventory will be receipted into the agreed online store, inventory system or platform and made available for purchase or fulfilment within two (2) Business Days of delivery to the PFS warehouse dock, subject to compliant delivery and documentation.
2. An Advance Stock Notice (ASN) and the PFS Inbound Goods Guidelines must be followed. Non-compliant deliveries may incur additional labour, handling or rectification charges.
3. Inbound inventory will be inspected and counted as reasonably required to verify the condition and quantity received.

7. Storage, Pallet Specifications and Customer Responsibilities

Storage fees are calculated based on the average monthly inventory held within PFS distribution centres, measured by the number of pallet bays or picking units utilised.

PFS reserves the right to independently measure and assess inventory held in storage. In the event of any discrepancy, PFS warehouse measurements and inventory records will be used for the purpose of calculating applicable storage charges. Inventory remaining in storage for more than six (6) months without movement may be subject to an additional long-term storage fee.

A Standard Pallet Bay accommodates inventory within dimensions of up to 1.2 m × 1.2 m × 1.2 m high, with a maximum gross weight of 400 kg. Inventory exceeding these dimensions or weight limits may occupy, and be charged as, two or more pallet bays based on the storage space and handling requirements involved.

A Standard Picking Unit accommodates one (1) SKU within dimensions of up to 200 mm × 1,200 mm × 400 mm high.

The Customer is responsible for maintaining, at its own cost, adequate and appropriate insurance coverage for all Customer-owned goods and inventory at all times, including while such goods are in transit, stored at, or handled through PFS distribution, warehousing and fulfilment facilities.

Unless expressly agreed otherwise in writing, PFS does not provide, arrange or maintain insurance coverage for Customer-owned goods or inventory and accepts no responsibility for any uninsured or underinsured loss, subject always to applicable law and the terms of the Agreement.

The Customer is also responsible for establishing, maintaining and managing any pallet accounts, pallet hire arrangements or related agreements required in connection with its inventory, including any associated charges, losses, transfers or reconciliation obligations.

8.  Communications

PFS will provide an initial response to emails from the Client or end users within four (4) business hours. This service level applies to the initial response and does not guarantee that the request or issue will be resolved within four (4) business hours. Where further investigation or action is required, PFS will request any additional information needed or provide a reasonable timeframe for resolution or completion.

9.  Order Accuracy

PFS will maintain a target order accuracy rate of not less than 98%, measured against orders fulfilled by PFS, subject to accurate order data, stock availability and Client instructions.

10.  Errors in Fulfilment

Where an error in fulfilment is attributable to PFS, PFS’s liability will be limited to remailing a correction or correcting the affected job as soon as reasonably practicable. Subject to the terms of the applicable Agreement and to the extent permitted by law, allowable damages will be limited to the PFS service charges for the work performed in relation to the specific affected job.

PFS will not be liable for loss of product, loss of business, indirect or consequential loss, or costs exceeding the amount billed by PFS for the services relating to the specific affected job, except to the extent that such liability cannot lawfully be excluded or limited.

11. Vendor Guidelines for Shipments to PFS

1. The maximum weight of a bulk carton is 14 kg. Where a carton exceeds 14 kg, a clearly visible “HEAVY” warning label must be applied to each affected carton.
   
2. Multiple Master SKUs must not be shipped in a single carton. Multiple sizes of the same Master SKU may be shipped together where appropriate.
   
3. All cartons must be shipped on Australian standard pallets measuring 1165 mm × 1165 mm, with a maximum loaded pallet height of 1200 mm including the pallet. Pallets must be securely shrink wrapped. Non-compliant pallets may be re-palletised by PFS and additional charges will apply. Shipments of 10 cartons or fewer may be delivered as individual cartons.
   
4. A pre-alert email, including an image of the stock item, must be sent to admin@pfs.com.au at least 48 hours prior to delivery.
   
5. All deliveries must be accompanied by a delivery docket or invoice containing full consignment details, together with a completed Advance Stock Notice (ASN).
   
   Where the required documentation is not provided, is incomplete or does not accurately correspond with the goods received, PFS may be unable to complete its standard inbound receiving and inventory verification processes. Any resulting delay, discrepancy, additional handling or inability to receipt stock accurately will not be the responsibility of PFS and may be subject to additional charges.
   
6. Where goods are received in sealed, unopened or full shipper cartons, PFS will record each shipper carton as one unit and will not be required to verify the quantity or contents contained within that shipper at the time of receipt. The quantity recorded on receipt will be deemed correct based on the number of shipper cartons received.
   
   PFS will not be liable for any shortage, discrepancy, missing unit or packing error contained within a sealed or unopened shipper carton where that discrepancy is only identified when the shipper is subsequently opened for picking, packing, fulfilment or other operational purposes.
   

Delivery and Receiving Details

DOCUMENT NOTE  This SOP should be read together with the applicable Client Agreement, Pricing Schedule and PFS operational guidelines. Where there is any inconsistency, the terms of the executed Client Agreement prevail.