1. H-E-B Vendor Lane Receiving

2. What is Lane Receiving? Vendor self check-in (U-scan for receiving)
Receiver audits only a portion of check-ins
Increased efficiencies for Vendors and Receivers alike
Allows Receivers to focus on core tasks
Receiving Warehouse Trucks
Receiving DSD Vendors
Invoice Management
Processing RGC
Audits were done by Department Managers and Store Leaders previously
Now the Receiver will conduct the audit
Lane Receiving fixes the inefficiencies for both H-E-B Partners and Vendors

3. Lane Receiving Workflow
Credit Processing
Vendor Check-In
Vendors use Symbols to process credits first
Vendors use Symbols to check in their product
“Green” Moves on
“Green” Moves on
“Red” Gets Audit
“Red” Gets Audit
Vendors use Symbols to check themselves in – up to 3 at a time
Vendors use Supplier Number to retrieve invoice
Vendors will log in using the VXID
Vendor will be randomly prompted for an audit by the Symbol upon completion of credit processing and/or product check-in
Audits are conducted at random intervals
Credits will still get processed first, that has not changed
The Vendor will create an invoice for the credits, then will hit the Random Audit Light
If the light is red, the Receiver will audit the credit invoice; if the light is green, Vendor can move onto their delivery
The Vendor will stage the product in the lane the Receiver assigns.
There can be 3 Vendors simultaneously checking themselves in
The Vendor will use the symbol and pull the Invoice using the Vendors Supplier Code
The Vendor will then check the product in, with the symbol Logging in under the VXID
Audits are random, the Receiver does not know when one is triggered, not will the Vendor know
Before Audits were usually done on small Vendors. Now there is no distinction on who will be audited.

4. Step by Step Lane Receiving Process
Vendor is let in by Receiver
Vendor signs in and gets badge
Vendor will process credits
Symbol will randomly prompt for an Audit on credits
Vendor then stages product in assigned lane
Vendor checks in delivery using symbol
Scanning product, verifying quantities, and entering the right quantity in Symbol
Before handing the Symbol to the Receiver Vendor ensures their delivery is 100% accurate
Vendor hands Symbol to the Receiver
Audit takes place If an audit is triggered by the Symbol
If no audit is triggered, product can be moved out of lane
Delivery discrepancies are recorded systematically 1 2 3 4 5 6
-Vendors will sign into the symbol using the VX ID, that they currently use when using the Receiving PC terminal
-Vendors will need to login into the symbol with their supplier code to access their invoice
-The requirement of checking in product is to scan product, verify and count quantities delivered and enter the right amount 7 8 9 10 4

5. Step by Step Lane Receiving Process
Vendor is let in by Receiver
Vendor signs in and gets badge
Vendor will process credits and punch random audit light
Symbol will randomly prompt for an Audit on credits
Vendor then stages product in assigned lane
Vendor checks in delivery using symbol
Scanning product, verifying quantities, and entering the right quantity in Symbol
Before handing the Symbol to the Receiver Vendor ensures their delivery is 100% accurate
Vendor hands Symbol to the Receiver
Audit takes place If an audit is triggered by the Symbol
If no audit is triggered, product can be moved out of lane
Delivery discrepancies are recorded by Receiver 1 2 3
The symbol is handed off a this point
The Vendors DO NOT close out the invoice 4 5 6
-When Vendors get to the Quantities screen, they will hand the symbol to the Receiver.
-Vendors do not close the Invoice. 7 8 9 10 5

6. Key Points For Check-In
If the product doesn’t scan, it doesn’t come in
Set aside to show Receiver it is being taken out
If the product doesn’t scan
Zero the quantity out
Set aside to show Receiver it is being taken out
If the product is not authorized
If the quantity is wrong on the invoice vs. what has been delivered
Ensure the quantity is adjusted to match what is being delivered; This is critical
If the quantity is significantly higher notify the Receiver
-The key is to communicate to the Receiver what is happening. If you are unsure of how to handle any situation you need to involve the Receiver.
If the product is damaged
Remove the product from the invoice
Set aside to show Receiver it is being taken out 6

7. Items you should always do when checking in
Key Points For Check-In
Always enter complete First and Last Name in Invoice Comment Screen
Always Scan and Verify product
If pallets are mixed with product, needs to be broken down if selling unit barcodes are not available (see next slide)
You need to show the Receiver the quantities screen and communicate that you are punching the Random Audit Light
Credits must be processed first
Involve the Receiver with any inventory issues or questions you may have
Items you should always do when checking in
-Entering the employee number or First and Last Name in the Invoice Comment Screen is highly important. Do not miss this step.
-Always scan and verify quantities; Vendors should NEVER not be scanning product 7

8. Mixed Pallets
Mission Tortillas was the first Vendor to be on the Lane Receiving program. Jorge used to wait up to 1.15 minutes before getting checked in (he was always behind the Bread and Combo H-E-B truck) now once he stages product in a lane, it takes 8 minutes to check in. 10 minutes if he gets an audit.

9. Willful violations will result in immediate removal from H-E-B
Vendor Penalty Process
Vendors will be held to a Three Strike policy before they are removed from H-E-B; strikes are incurred when:
Quantity errors are found on invoices during audits without communication from the driver regarding the issue
Driver delivers out-of-date product
Errors will be reported on DSD Stop Audit Webform
Loss Prevention will track strikes and monitor trends
A policy had to be in place to ensure the integrity of deliveries and that everyone was following the process that has been outlined.
Receivers will forward all discrepancies and issues to H-E-B loss prevention and Merchant leadership
All strikes are tracked for a calendar year. At the beginning of each calendar year, strikes start fresh.
Willful violations will result in immediate removal from H-E-B
Changing the light intentionally to bypass a red
Bypassing the scan screen using totals shown on invoice without scan verification 9

10. Sharing their expertise and providing guidance.
Role of the Receiver
Giving Vendors access to receiving area
Assigning lanes
Monitoring Vendors while they check in
Answering Vendor questions
Training New Drivers
Verifying quantities screen on Symbol
Conducting audits
-The Receiver will monitor to ensure check-in is being followed per the outlined process
-The Receiver will answer all questions and help if assistance is needed
-The Receiver will help as new drivers are hired or start servicing H-E-B stores
Sharing their expertise and providing guidance. 10

11. Miscellaneous Questions
Are all regions on the Lane Receiving Process?
All regions SAFD, HFD, Mi Tienda, and Joe Vs will be in Lane Receiving
Are any Vendor’s audits handled differently?
Theis is the ONLY Vendor that will be audited differently
20% of their totes delivered will be randomly audited
Need to check in tote to tote (not into baskets)
How are Vendors on ASN going to be audited?
The only time the Vendor audits will be captured on Webform is on credits
The symbol will annotate when an audit happens on the ASN delivery 11