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April 9, 2008 Luxury Retail Series
introductions• Marly Chan, Financial Shared
Services, Accounts Payable Trainer
• Kim Hanson, Floor Ready Management
• Desiree Pollard, Supplier Compliance Manager
• Mary Porter, Corporate Merchandise Information Office, Director
partnership opportunities VPN Long and Short Descriptions
VPN VPN Long Description
VPN Short Description
Website Description Created by Nordstrom
Description Created by
Nordstrom to print on
NORDSTROM.co m receipt
Description that Prints on
Customer’s Receipt
LUXES LUXE/S LUXE/S
LUXE "KISS MY COUTURE" RIMLESS RECTANGLE SHIELD
LUXE RIMLESS SHI LUXE/S
VILSONA 4-6Y KID GIRL SPAIN
4-6Y KID GIRL SPAIN
LG PLAID DRESS
LG PLD DRESS 4-6Y KID GIRL SPAIN
6401ZAL 6401ZAL 6401ZAL
REVERSIBLE BIRTHSTONE HEART CHARM
HRT STONE CHARM 6401ZAL
partnership opportunities Supplier Color Descriptions Issues• Color descriptions longer than 20 characters • Vague color description• Color descriptions duplicated within the same VPN
Supplier Color Description Customer Impact
00R27 POPPY RED00R27 POPPY RED
SOH may not be visible when a salesperson does a merchandise search.
TR-0JAP-Y6 This could delay an item from being published and available to sell.
BLACK/WHITE used with NRF 011 and 010 within the same VPN
SOH for the duplicate colors may not be visible when a salesperson does a merchandise search.
April 9, 2008 Luxury Retail Series –
VCF Event
Floor Ready Compliance
Floor Ready Agenda
• Ticketing Requirements• Hanger Requirements• Packaging Requirements• Advance Ship Notice (ASN)
Requirements• GS1 128
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Ticketing Requirements
VICS standard
• UPC or EAN barcode, scannable and human readable
• Style/VPN (Vendor Product Number)
• Color• Size• Retail• Rack tickets include season code
(see compliance manual)• Rack Retail (“regular” or “compare
at” dictated by po) RetailMSRP
BLACK
UPC
Size
Color
Size: S
12345 678900 5
A01234567890123Style
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Shoe Ticketing Requirements
Nordstrom requires the following on our shoe ticket:
• UPC or EAN barcode, scannable and human readable
• Style/VPN (Vendor Product Number)
• Color• Size
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Ticketing Requirements
Nordstrom Direct• If your merchandise is already ticketed with VICS
standard ticket please leave and include the below label outside the poly bag.
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Hanger RequirementsFull Line Store Hanger Specifications
Department Name
Merchandise Description Hanger Type
POVNarrativeBrass PlumTBD SleepwearActive wearCoatsPetites
Tops, Sweaters, Robes, Sleepwear, Dresses, Light Weight Jackets, Swimwear (1 piece and 2 piece tops), Camisoles
VICS 17” Top 484 Clear
Bottoms, 2 piece Swimwear Bottoms, Strapless Tops, Tube Tops and Denim
VICS 12” Bottom6012 Clear / Denim should be hung a “new” 6012
Jackets, Coats, Heavy Weight Robes and Outerwear
VICS 17” Coat 3328 Clear
Heavy Weight Coats VICS 17” Heavy Weight Coat 5245 Clear
Intimate Apparel Bras, Panties, Slips VICS 10” Visconti GS-23 Clear
Encore Tops, Sweaters, Dresses, Light Weight Jackets
VICS 19” Top 479 Clear
Bottoms, 2pc Swimwear Bottoms, Strapless Tops, Tube Tops and Denim
VICS 14” Bottom6014 Clear / Denim should be hung a “new” 6014
Outerwear, Lightweight Jackets and Coats VICS 19” Top 3319 Clear
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Hanger Requirements
Full Line Store Hanger Specifications(Continued)
Department Name Merchandise Description Hanger TypeSavvyStudioIndividualistBridge
Tops, Dresses and Light Weight Jackets 17” Top 5410 BlackCoats, Blazers, Heavy Weight Jackets 17” Heavy Weight Top 5202
BlackBottoms 14” Bottoms 5135 Back
Children’s Infant Tops VICS 10” Top 497 ClearInfant Bottoms VICS 8” 6008 ClearToddler and Sizes 4-6 Tops VICS 12” Top 498 ClearToddler and Sizes 4-6 Bottoms VICS 10” 6010 ClearGirls and Boys Sizes 7-20 Tops VICS 15” Top 485 ClearGirls and Boys Sizes 7-20 Bottoms VICS 12” Bottom 6012
Clear Outerwear and Coats VICS 15” Coat 3315 Clear
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Direct Hanging vs. Flat Packaging Instructions
Blouses Blazers and
Jackets
Coats Dresses Found-
ationsJacket
& Dress Sets
Jacket & Pant/Skirt
Sets
Skirts Pants Robes & Sleepwear
Swim wear
Kids wear
Special Occasion
All Other
Velvets H H H H F H H H H F F F H F
Wool Structured with Shoulder Pads
H H H H NA H H NA NA F F F H F
Leather & Suede H H H H F H H H H F F F H F
Linen F H H H F F F H F F F F H F
Denim/ Twill F H H F F F F F F F F F F F
Sequined H H H H F H H H F F F F H F
Beaded F F H F F H H F F F F F H F
Pleated NA NA NA H NA H H H F F F F H F
Knits/ Sweaters F F F F F F F F F F F F F F
All Other F H H H F H F F F F F F F F
•F = Flat: Individually polybagged, securely taped (no hangers)•H = Hanging: Hung on appropriate size hanger and bagged, bottom of bag sealed or taped•NA = Not applicable
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Advance Ship Notice (ASN) Requirements
Full Line, Rack and Direct
Consolidated ASN Requirements• Carton level information per shipment, per ship to location
If master pack, ASN must contain carton level information for all cases within each master case.
• Is to contain its own unique sub-bill of lading number.• ASN is to be received by Nordstrom prior to the shipment’s
arrival in the Distribution Center or Fulfillment Center.
DHL/Airborne ASN Requirements• One ASN transmitted per case
If master pack, one ASN transmitted per master caseMaster pack ASN is required to contain carton level information for all cases within the master case.
• Each case is its own single shipment.• Tracking number provided by DHL must be populated in
the sub-bill of lading field and the PRO number field.• ASN is required to be received by Nordstrom prior to the
shipment’s arrival in the distribution center.
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Carton Label for EDI ShipmentsFrom TO
(420) SHIP TO POSTAL CODE CARRIER
STORE
SSCC-18
Vendor NameAddress Line 1Address Line 2Address Line 3
CARR: Carrier Name
PRO: 12345678901234567890123456789B/L #: 12345678901234567890123456789
PO #: 12345678901234 Carton 1 of 2
DEPT: 0012DC #: 699VEND: 1234567 CASE QTY: 1234
STORE # 0001
(00) 0 0046863 000008235 7
(91) 0001
(420) 90266
(Must be 30 PT Bold Font)
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Best Practice for Trouble Free Shipments
• If EDI version of your PO does not accurately reflect what was agreed upon between sales person and buyer contact buying office immediately for confirmation.
• Any changes ask buyer to update order and transmit via the EDI 860.
• Be sure to verify if PO is shipped “bulk” or “store packed” by checking the bulk packaging indicator on all orders in the REF*PGC segment.
• Tickets/Hangers are required, follow guidelines at www.nordstromsupplier.com
• ASN – Send as soon as shipment leaves your dock, required to be received at DC/FC prior to shipment arrival. ASN required to reflect exactly what is in each carton.
Corporate
Social Responsibility
Our Mission• At Nordstrom, we are committed to providing quality fashion and
service to our customers while reducing our use of resources, promoting sustainable practices throughout our Supply Chain, and working toward the long-term well-being of our stakeholders.
Tell us about your CSR activities!• We would love to hear about any exciting new initiatives that you
are currently, or planning on, undertaking that pertain to any or all of the following practices.
Sustainable packagingSustainable materialsSustainable processesCommunity giving or charitable contributionsEnhanced workplace initiativesSustainable Supply Chain practices
Please contact us at [email protected] our CSR Director at [email protected]
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Contact Info
Floor Ready Management
(877) 444-1313
Option 1, Option 1
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April 9, 2008 Luxury Retail Series –
VCF Event
EDI/Compliance
Compliance/EDI at Nordstrom
• Supplier relationships are a valuable part of Nordstrom’s business
• We are dedicated to ensuring that our supplier requirements are in agreement with current industry direction and standards
• We support industry-standard technologies that utilize:
Universal Product Code (UPC/EAN/GTIN)GS1 US standardsElectronic Data Interchange (EDI)Voluntary Inter-industry Commerce Standards (VICS)
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Our Strategy• The use of industry-standard
compliance/EDI technologies and guidelines allows us to expedite merchandise through the supply chain
• This ensures:An expedited flow from our partners to the selling floor and websiteBetter management of inventoriesIncreased salesEnhanced customer service
• The implementation of compliance/EDI technologies allows us to continue to build successful, mutually profitable partnerships with our suppliers
• Your partnership is critical in making this technology work successfully!
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EDI Compliance Requirements (FLS/Rack/Direct)Required documents (Version 4010VICS)
810 Electronic Invoice850 Electronic Purchase Order856 Advanced Ship NoticeGS1-128 Shipping Container label related
to a valid ASN997 Functional Acknowledgment832 UPC Catalog (Inovis* or GXS)
Optional documents (Version 4010VICS):852 Product Activity Date (includes Direct)855 Inbound Purchase Order (per Buyer
set up only)860 PO Change
*Version 4030VICS upgrade mid-April 0821
Solution Support
There are several ways we can assist in your efforts to become EDI compliant:
• List of 3rd Party Providers• Service Bureau selection checklist• Testing Invitation (all EDI testing is done through
Inovis)• General Guidelines for UPC Creation• Catalog Provider Options (Inovis or GXS)
For information contact: [email protected]
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Supplier Compliance Website www.nordstromsupplier.com
Primary resource for:• PO Terms and Conditions• Compliance Manual• EDI requirements and mapping• Expense offset fees• Routing Guide
Manuals specific to FLS/Rack, Direct, NPG divisions
‘News’ flash and summary of monthly updates
Links to store addresses, contact information and Nordstrom portal (http://portal.nordstrom.com)
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Expense Offset Policies• Supplier Compliance is essential to enable
merchandise to move quickly and cost effectively to the selling floor
• Expense-offset fees are assessed for:Merchandise not in compliance with our standards/requirementsFailure to comply with EDI document requirementsPurchase Order violations
• Summary of Non-compliant Expense offset fees emailed weekly
• Inquires can be sent to: [email protected]
• Please allow 10 business days for a reply• We do not negotiate or settle valid
charges
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New for Direct in 2008
Sample PhotosSample Photo Touch-up ($100 per incident)
Sample Re-shoot Flat ($300 per incident)
Sample Re-shoot Figure ($900 per incident)
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PO Violations
• PO Violations are assessed when unordered merchandise is found on an inbound shipment:
Distro Error - DC/FC receives SKUs not allocated for that storeExceeds PO Error - DC/FC receives more pieces than were ordered on the POSNOPO Error - DC/FC receives a SKU that is not in the Supplier’s catalog
• PO Violations are now in effect for Nordstrom Direct (as of 1-1-08)
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Supplier Scorecards
• Nordstrom scorecard launched February 2008
• Scorecard Reference Guide posted on www.suppliercompliance.com in ‘vendor communication’ link
• Our goal is to begin sending quarterly by May 2008
• Scorecards are informational only
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Scorecard Reference Guide
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Field Name Description
Date Range Dates listed are based on Nordstrom’s 4-5-4 retail calendar.
Operational Compliance - Floor Ready/EDI – FLS/Rack/Direct
This category covers all Floor Ready and EDI compliance areas with a count of Non-compliance Expense Offset fees assessed for the scorecard date range. Additional information regarding all our Expense Offset policies can be found at www.nordstromsupplier.com. If you need additional details on specific Expense Offset fees, please email [email protected].
Invoicing – FLS/Rack/Direct
This section summarizes all invoice related non-compliance issues (by count); 810 Invoice Not received = paper invoice sent instead of 810 EDI, Non-consolidated Invoice = failure to send only ONE invoice per ship-to location per PO, Inaccurate Invoice = manual invoice correction required in AP system to allow invoice to match and pay. For complete invoicing requirements, please refer to our Compliance Manual on www.nordstromsupplier.com.
Defective Product – 187 Quality Center
These are defective product claims processed by Nordstrom Quality Center (187). These claims can be identified on your payment remittance as “187 Quality Center”. Claim detail is also emailed weekly, please contact ‘[email protected]’ for additional information.
Order Fulfillment – Shipment Summary
This section gives PO shipment details, of which some may result in non-compliance expense offset fees. Most of the categories are informational only to track volume as it relates to all other categories within the scorecard.
Order Fulfillment – PO’s Shipped Early, PO’s Shipped Late
PO’s Shipped Early is the sum of receipts shipped before the ‘Not Before’ date on our purchase order. PO’s Shipped Late is the sum of receipts shipped after the ‘Not After’ date on our purchase order.
Order Fulfillment – Fill Rate
Fill rate is the difference between units ordered, at the time the PO is originally approved, as a percent to units received for that PO. The total units received calculation excludes Direct-to- Store receipts, and Claim Accept receipts. There may be variance from your records based on PO changes and our receipt exclusions. The fill rate number is informational only, Nordstrom is not using this number as a measurement of vendor performance.
Order Fulfillment – Transportation
This section represents all Transportation related deductions, either per Agreement or per Routing Violations (represented by ‘A’ or ‘V’ suffix under ‘charge code’ column). A complete list of all ‘charge code’ types can be found in our Routing Guide on www.nordstromsupplier.com. Any additional questions regarding Freight Agreements or Routing Violations can be sent to [email protected].
Supplier Toolkit –
Sales Data
• Supplier Toolkit can be found on our website at: http://portal.nordstrom.com
• The Supplier Toolkit allows vendors to access web-based Sales and Inventory reports on- demand
• New report option - NQC defective VPN’s
• An annual subscription fee of $100 per supplier number is assessed for access to these reports
• Nordstrom Direct data will be included mid-2008
• Additional information about the Supplier Toolkit can be found on our website at: http://portal.nordstrom.com under the ‘Terms of Use’ documentation link
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Supplier Toolkit –
Sales Data
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Supplier Toolkit –
NQC Data
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Supplier Toolkit –
Sales Data
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Contact InfoCMIO Compliance
[email protected] (option 1, then option 2)
CMIO Chargebacks
Supplier Toolkit [email protected]
Supplier Toolkit – NQC Report (new)[email protected]
Portal Access [email protected]
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April 9, 2008 Luxury Retail Series –
VCF Event
Accounts Payable
Accounts Payable at Nordstrom
Accounts Payable Goals• On-time, accurate
payments• Reconciliation of vendor
accounts Reduce aging itemsPro-active approach
• Timely response • Reduce post-payment
audit adjustments39
Best Practices• Verify cost and terms before accepting/shipping
PO• If errors are found, notify buying office• Ask buyer to update order and transmit changes• Invoice on time, accurately, and per
requirements – invoices should ‘mirror’ the PO• Timely account reconciliation - Inquire on
discrepancies within 60 days (12-month time limit)
• Utilize Nordstrom Supplier Portal for basic inquiries (http://portal.nordstrom.com)
• Include web findings in your inquiries• Submit invoice inquiries via Excel template to
Vendor Relations (via the “Contact Us” link on the website)
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Nordstrom Supplier Portal Homepage
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Accounts Payable Vendor InquiryInquire on: Invoices, Chargebacks, PO documents or ChecksInquire by: Number, Number Range, Date Range or Status
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Accounts Payable Vendor InquiryDeduction Details available on RTV’s (click on Display Details icon)
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Accounts Payable Vendor InquiryChargeback Style Detail
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Accounts Payable Vendor InquiryInquire on checks by number, date range or status
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Accounts Payable Vendor InquiryCheck detail page options include printing, downloading to Excel, and viewing document detail
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Documentation Available on Accounts Payable Website
• Inquiry and Contact Information• Non-Compliance Contact List• Store Phone Numbers• Vendor Inquiry-Dispute
Template• RTV Cost Adjustment Template• Document Code Definitions
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Nordstrom Quality Center (NQC)
• The goal of the NQC is to positively impact the quality of merchandise in our stores
• Claim experts handle the processing of non-resalable merchandise
• Vendors are held accountable for product failure. A percentage of qualifying merchandise is sold in our Rack stores
• Detailed information regarding quality issues is provided to our merchants and vendors, offering them the opportunity to correct any problems
NQC Defective Claim Processing• Vendors receive monthly reporting detailing
defective merchandise claims• Vendors wishing to receive defective merchandise
back must provide:• A valid shipping address• A Return Authorization number (RA#)
• If vendors wish to have defective merchandise shipped back to them, they must provide a UPS or FedEx account number
NQC Contact Info:Nordstrom Quality Center [email protected] or (253) 437-4598
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DC Consolidations for Return of New ProductReturn Authorization Procedures• RA# and expiration date is needed for all DC
consolidation claims
• DCs process and hold store transfers until everything is received or the RA# expiration date requires shipping
• If the RA# is about to expire and all merchandise has not been received, the DC lets the buyer know:• Which items have not been received• That the consolidation is being shipped
To Contact DC Claim departments: Utilize the ‘Contact Us’ link on the AP Vendor Inquiry website found at http://portal.nordstrom.com
Acquiring Licenses
• When your company uses another company’s trademark, we require documentation demonstrating that you have permission to do so
• The license agreement may have been held by another company, with whom we may have done business
• Accounts Payable must establish who currently owns the rights to a particular license
• Providing license agreements timely and the exact start date of ownership transfer is very important
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Acquiring Licenses
• Licensing agreement documentation may be emailed to [email protected] and should include:
A copy of the first and last page of the licensing agreement -- OR --A copy of the entire licensing agreement --OR --A signed letter on company letterhead from the license granting company
• Documentation should include the agreement date, the specific type of merchandise to which it applies, and the names of the principles (including signatures)
• Any sensitive information shown on the document may be blacked out
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What’s new in 2008?
• Shared Services – FLS and Direct AP departments combined (one point of contact)
• Merchandise Accounts Payable Project (MAP)
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Main LineCall (206) 303-1080
Option 2
-- Or --Email Vendor Relations via the
“Contact Us” link on the website
http://portal.nordstrom.com
Accounts Payable Contact Info
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April 9, 2008 Luxury Retail Series – VCF Event Transportation
Transportation Agenda
• Routing Guide• New Stores• Approved Carriers• Scheduling Pickup• Bill of Lading• Jewelry and Watch Shipments• Expedited Air Program• Freight Agreements and
Violations
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Routing Guide
• The Nordstrom Routing Guide provides the only authorized routing instructions. Available online www.nordstromsupplier.com.
• Carrier selection and service level is dictated by the Routing Guide: Nordstrom Corporate Logistics is responsible for carrier selection whereas Buyers frequently work with vendors to select mode (air/surface).
• If a PO or other written instructions specify a specific carrier, please contact the Traffic Office of the destination DC or [email protected].
• Please check the website regularly for updates. Changes are highlighted in the “Monthly Updates” section of the home page.
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New Stores
• Nordstrom is opening 8 new Full Line Stores and 2 Rack Stores in 2008 and another 6 Full Line in 2009.
• Store / DC list is updated at least 3 months prior to store opening
• In most cases, you will need to determine the DC Shipping location by using the Store/DC relationship list in the routing guide
• In some cases, we may override the Store/DC list shipping location by sending the DC Shipping location in our Purchase Order (EDI 850) and in these cases, you must ship to the DC listed on our PO 58
Approved Carriers
• Nordstrom’s approved carrier list consists of a number of select carriers with whom we have negotiated rates and service level agreements.
• Use of approved carriers is required when Nordstrom pays any portion of freight charges.
• When vendors agree to share freight costs, using approved carriers allows them to benefit from Nordstrom’s negotiated rates.
• Nordstrom’s consolidator network provides the fastest, most cost efficient means of moving product into our network.
• Vendors benefit in two other ways when they use approved carriers:
DCs give higher priority to consolidator freight than to non-core carriers.Nordstrom carriers are responsible for loss or damage during transit.
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Scheduling Pickup
• For shipments weighing less than 10,000 pounds for any one DC, carriers must be contacted 24 hours in advance of the requested pick up date (prior business day).
If the requested pick up date is a Monday, the Carrier must be contacted on the Friday of the previous week.
• If vendors give less than 24 hours notice, carriers may attempt to make same day pick ups at their discretion, but same day pick ups are not guaranteed.
If the same day request is on the cancel date and the carrier isunable to make the pick up, this is not considered a carrier failure and the shipment is past cancel.
• Freight must be ready in the committed time period, as specified when the pick up is scheduled.
For example, if the pick up window is between 1:00 PM and 4:00 PM, the freight must be ready by 1:00 PM unless special arrangements are made with the pick up carrier.
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Scheduling Pickup
• For shipments weighing more than 10,000 pounds for any one DC (volume load), the shipper must contact Nordstrom 72 hours prior to the requested pick up day.
• The Volume Shipment Routing Desk may be reached at (206) 303-2624.
• If vendors give less than 72 hours notice, Nordstrom will attempt to secure a carrier more quickly.
If Nordstrom is unable to secure a carrier to make the pick up, this is not considered a carrier failure and the ship window dates remain in effect.
• With respect to the Not Before/Not After window, please remember that freight must be shipped within this window, not received at the Nordstrom DC.
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Bill of Lading
• Nordstrom follows VICS bill of lading protocols.
All VICS Bill of Lading/Master Bills/Air bills/Tracking Numbers must be uniquely numbered.
• Bills of Lading should always specify carton counts.
Vendors are encouraged to avoid tendering freight as pallets “Said to Contain” (STC).Shippers tendering to carriers STC assume all shortage liability until the freight reaches Nordstrom.
• All Purchase Order numbers must be referenced on the Bill of Lading.
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Bill of Lading•
Bill of lading requirements vary by carrier. This chart provides a brief overview of differences between carriers.
•
Please refer to the Routing Guide for complete details.
Carrier OverviewGilbert East, Norcon, Colonial Trucking
Master and Sub bill of lading (for each DC) required
All other carriers Create one Bill of Lading document for each DC, each day.
DHL Express • Each individual package will have a unique tracking number.
• In an effort to decrease the amount of small package shipments received at our Distribution Centers, Nordstrom is asking your shipping dock to make every effort to consolidate packages/purchase orders FROM your single shipping location TO the Nordstrom Ship To DC to meet our heavy mass shipment criteria:
• Metro Areas = 21 lbs• Non-Metro areas = 51 lbs
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Jewelry & Watch Shipments• Due to the value and pilferage potential of
jewelry and watch shipments, Nordstrom has established special shipping instructions for these items.
These instructions apply to departments 68, 72, 89 and 214.All Department 28 and 161 shipments are exempt from special handling and should be shipped via normal routing.
• Vendors may use either of two shipping methods for departments 68, 72, 89, and 214:
US Mail (Prepaid)Federal Express: Jewelry and Watch DVX Program (Collect)
• Other high value shipments may be included in the program. Please email traffic@ nordstrom.com with any questions.
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Expedited Air Program
• In 2004, in an effort to decrease and control spending on air freight, Nordstrom established the Expedite Customer Service Team (ECS).
• The purpose of ECS is to work with buyers, vendors and DC’s to establish the most cost effective means of moving urgent freight to DCs to meet committed events or in-store requirements.
• Buyers contact ECS to begin process when they have identified critical shipments.
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Expedited Air Program
ECS Provides:• Communication between buyer, vendor and DC• Specific carrier and service level routing instructions• Email authorization to vendor for Exception Routing
ECS Applies To: • Nordstrom paid AIR Freight terms (Vendor pays NO
freight) • Shipments over 50 lbs.
Vendor/Shipper Expectation:• When contacted by [email protected],
follow ECS email Routing Instructions• Provide AWB or Tracking Number
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Freight Agreements and ViolationsFreight agreements and violations are charges
related to Purchase Order terms or contract agreements between a vendor and Nordstrom buyers.
Differences:
• AgreementsTerms stipulated on a PO or in a company wide contract between vendors and NordstromPertain to the contribution of freight cost a vendor has agreed to pay to move freight to Nordstrom.
• ViolationsThe result of non-compliance per the terms of a purchase order, agreement or Nordstrom Routing guide.
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Contact Info -
Transportation
(877) 444-1313
(Option 4)
Volume Shipment Routing Desk
(206) 303-2624
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