Fred Meyer Group

Quick Response Replenishment

The Kroger Co uses a computer assisted replenishment purchase order to create and send to the vendors via EDI. The purchase order reflects the item quantities needed at each store location on the order. The supplier packs each store's individual shipment, labels each 'store' carton with the GS1-128 label, and notifies The Kroger Co with an electronic packing slip, called an ASN, which details the products sent by item and by store. ASN information feeds directly into a database and matched against the current purchase order on file in our order management systems.

The Kroger Co keeps packing information in a database until the carrier of the product schedules an appointment for unloading. On the scheduled day, packing information is transferred into the receiving center’s systems. The cartons are unloaded onto a conveying system scanning the GS1 128 bar code and matching the cartons shipped against the ASN. As cartons continue on the conveying system, the system pulls each store allocation as defined on the original purchase order and matches the ASN detail of each carton.

This process is a paper-less exchange of information and goods. The Kroger Co is able to eliminate non-value-added tasks, have consistent inventory in the supply chain, eliminate out-of-stock conditions, and increase sell through by having product available just in time to meet customer demand. The Vendor can eliminate non-value-added tasks, have consistent production plans, increase efficiency, and develop a long-term opportunity for growing sales with The Kroger Co.

Business Requirements

• Ability to meet business requirements defined in the Quick Response Vendor Agreement
• Ability to meet EDI Technical Requirements for 810, 850, and 856
• Ability to ship all orders complete with no back orders or split ships
• Ability to pack and label all cartons by store while shipping the Purchase Order to a Distribution Center
• Ability to accept payment which references the invoice number or ability to accept payment referencing the purchase order number

EDI Technical Requirements

• Ability to support the current EDI standard (s) support by The Kroger Co
• Ability to receive an 850 purchase orders containing SDQ (Store Destination Quantity) segments
• Ability to send 997 Functional Acknowledgements within 24 hours of the PO being sent
• Ability to send 856 ASN in Shipment, Order, Pack and Item hierarchy
• Ability to send valid UPC & SKU numbers for identification of all products in the 856 ASN and 810 invoices. SKU represents our item number we sent on purchase order with the 'CB' qualifier for 4010 or the 'PI' qualifier for 5010.
• Ability to send the GS1-128 Carton label in the 856 ASN
• Ability to send the ship-to store location referenced on the 850 PO SDQ segment in the 856 ASN
• Ability to label all cartons with the GS1-128 Carton Label meeting The Kroger Co requirements.
• Ability to send 856 ASN prior to scheduling an appointment for unloading at the Distribution center
• If more than one truckload is needed to ship purchase order complete, vendor must have ability to send ASN for additional trucks within 24 hours of the first ASN sent.
• Ability to send an 810 invoice that summarizes all items shipped on the PO and receive one (1) payment which references your summary invoice number.

Logistics Requirements

• See Routing Guide from Fred Meyer’s Traffic Department for specific requirements. www.fmroutinginstructions.com
• All cartons must be conveyable.