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Nordstrom Compliance Conference
Nordstrom Compliance Conference October 11, 2006 Welcome Kim Zablocky Founder & Managing Director Nordstrom’s Wednesday, October 11, 2006 Who we are Operating Profit / Total Revenue = Gross Margin Gross Profit – Operating Expenses = Operating Income Net Earnings / Outstanding Share = Earnings per Share VCF + RCC + TPMA = The Retail Environment Sales cycle compression International sourcing New technology adoption Deductions and allowances $215 Billion in Deductions and Allowances TPC Services Create collaboration between retailers and suppliers Facilitate better communications Reform the post-audit business process Enhance performance management via “Scorecards” Provide vendor training programs onsite and/or overseas Improve processes through knowledge share of planning, forecasting, demand generation and trade promotion management Enhance CRM/SRM Increase profits and improve the bottom line for both TPC Value Proposition “Perfect Order” Preparedness Working Groups • ASN Transportation • Drop Ship & Direct-to-Customer • International Quality Control, Security, Compliance Guidelines Collaboration Tools: • Vendor Performance Training • Compliance Clearinghouse VCF – The Compliance Clearinghouse Monitoring over 145+ retailers Over 400+ suppliers are using the system 5000+ retailer changes since January 1, 2005 “At Wallace, we feel that it is important that all departments keep up with our Retail customers’ logistics/EDI requirements. VCF Clearinghouse is a great tool as it alerts us to specific changes on a daily basis, alerting us to something we may have missed.” - Jerry Glinnen, Wallace-International Silver Co. Thank You! For more information… Kim Zablocky Co-Managing Director Trading Partners Collaboration 535 8TH Avenue, 17th Floor New York, New York 10018 Tel: 646-442-3476 Email: kzablocky@tpcww.com Web: www.tpcww.com Nordstrom Compliance Conference Distribution Center Overview October 11, 2006 Welcome • The Nordstrom Distribution Centers are a 100% flow-through operation. • We receive, process, and ship merchandise in three days or less. • We process claim consolidations and some cosmetic damage. 13 Meet The DC’s There are six Distribution Centers across the US. DC Location Square Footage Pieces Processed in 2005 Full Line Rack 89 Portland, Oregon 468,200 35,832,106 14 8 299 Dubuque, Iowa 668,342 36,667,680 21 12 399 Ontario, California 374,930 52,782,441 28 15 499 Newark, California 355,266 22,721,325 12 7 699 Upper Marlboro, Maryland 551,292 32,826,605 20 6 799 Gainesville, Florida 180,000 8,355,223 10 1 14 ASN 101 • We receive ASNs from our Carriers and Suppliers. • We use the PO and Supplier BOL number to match the Carrier shipment detail to the Supplier ASN in order to create an Inbound Shipment (receipt). We call this a case level shipment. • If no Supplier ASN exists we create an assumed ASN. Assumed units expected are always zero. We call this an assumed shipment. 15 ASN 101 • Only one ASN may be used per shipment. • An ASN cannot be split or used to create multiple shipments within the same DC. • An ASN can be split across multiple DCs. • An ASN is “blocked” at the time the first case of the shipment is scanned into the DC. 16 Inbound • The DC receives freight as early as midnight. • A DC may receive anywhere from 1,200 to 2,400 shipments per week. • Merchandise is unloaded and sorted by PO number and carrier receipt. Inbound • Cases are scanned to associate them to the Inbound Shipment. • Audit cases are identified via the RF device and marked. Audits Supplier agreements drive our three audits: ASN Audit • Compares physical case content to logical case content on ASN Ticket Audit • Ticket Exists • Correct Retail Hanger Audit • Hanger Exists • Correct Hanger 19 Audit Cases • Our Warehouse Management System selects audit cases for those Inbound Shipments created using the Supplier ASN. • For Assumed Shipments, the Inbound Employee will select the cases. • The system randomly selects cases for audit. • Store feedback, 100% target audits, and audit results can increase or decrease the sampling plan the supplier is on. 20 Inbound - Outbound Merchandise is placed on conveyors that take it to the appropriate flat or hanging processing area Inbound - Outbound Merchandise is then staged down lines in each processing area On to Processing Two processing areas • Flat processes all: • • • • • • • Cosmetics Shoes Accessories At Home Men’s (except suits) Children’s Rack Merchandise • Hanging processes all Women’s Ready to Wear, with the exception of Designer which is processed and shipped flat. 23 Key function of Processing • Audit or build case contents • Audit or apply tickets • Audit or insert hangers • Resolve vendor allocation errors • Remove excess packaging • Sort bulk merchandise to fill store allocations • Re-label cartons if UCC-128 is missing, damaged or was a generic 24 In Processing • Cases are staged down flow lines. • Audit cases are staged as the first cases of each shipment. • A shipment may contain one case or many cases. • Cases are staged into the workstation. • An RF Device is used to scan the UCC-128 label. • The RF Device then directs the employee on Value Added Services required. 25 Case Level Shipments • The processing employee will scan the contents of the case to audit the accuracy of the supplier ASN. • If the audit cases pass, we use the vendor ASN quantities to update the remaining cases. • If the audit cases fail, all remaining cases are audited to ensure accurate inventory. 26 Assumed Level Shipments • When there is no vendor ASN, the processing employee enters the destination store number of the case (if store packed). • Then every unit in the case is scanned. • These steps must be performed on every case. • Some cases may require a Ticket and/or Hanger Audit. • Merchandise takes longer to process when the ASN is not available. Audit Results • If all audits pass, the remaining cases in the shipment may be released to shipping. • If an audit fails, only the checkpoints that failed must be audited on the remaining cases. • Suppliers with a high percentage of accuracy are placed on a reduced sampling plan. 28 Additional Value Added Services Depending on the amount of Value Added Services provided by the supplier, the merchandise may still require tickets, hangers and possibly store sortation 29 Bulk Packed Orders • Bulk packed orders require sortation. • Units may be sorted manually via RF Device or automatically using one of our Unit Sorters. • Automated flat sortation occurs in our Oregon, Iowa and Maryland DCs. • Automated hanging sortation occurs in our Oregon, Southern California, Iowa and Maryland DCs. 30 Automated Flat Sorter • After cases have been processed, they are sent to the flat sorter. • Two orders can be sorted at the same time. • We are able to sort both single and multi SKU cases. 31 Automated Flat Sort • At the induction station, the case is scanned. • The SKU to be sorted is selected (for multi SKU cases). • One unit of a SKU is dropped into each tray. • All units of a SKU for a shipment do not have to be sorted at the same time. 32 Automated Flat Sorter Units are carried by tray and dropped into cartons by store. 33 Automated Flat Sorter The sorter keeps track of the units dropped to each location. 34 Automated Hang Sorter Our hang sorter works the same way as our flat sorter. 35 Bulk Orders • Automated sorters drop picket fence. • Manual sortation fulfills by alphanumeric store number. • Flat Sorter sorts 22,000 units per shift. • Hanging Sorter sorts 16,000 units per shift. 36 Store Distro’s • All orders are checked against store distribution on the Purchase Order. • Overage and Not Ordered or Subs are pulled at the Store/SKU level. • Merchandise is either accepted and sent to the store from which the units were pulled or returned to the supplier. 37 Ship To Store Most merchandise is shipped to the store in the same carton it was received in for, with the exception of hanging and bulk orders. 38 Ship To Store Cartons and trolleys travel via conveyor and are sorted to the appropriate store lane using our carton and trolley sorter. 39 And Finally … • Trailers leave for most stores every night, Monday through Friday. • A DC averages 3-6 trailers per Full Line Store and 3-5 trailers per Rack. • A DC ships between 18,000 and 70,000 cartons per week. 40 Questions? Nordstrom Compliance Conference Compliance/EDI October 11, 2006 Compliance/EDI at Nordstrom • Vendor/supplier relationships are a valuable part of Nordstrom’s business. • We are dedicated to ensuring that our supplier standards are in agreement with the current direction of the retail industry. • We support industry-standard technologies that utilize: • Universal Product Code (UPC/EAN/GTIN) • GS1 US (formerly the Uniform Code Council) standards • Electronic Data Interchange (EDI) • Voluntary Inter-industry Commerce Standards (VICS) 43 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 • Better management of inventories • Increased sales • Enhanced customer service • The implementation of compliance/EDI technologies allows us to continue to build successful, mutually profitable partnerships with our vendors/suppliers. • Your partnership is critical in making this technology work successfully! 44 EDI Compliance Requirements (FLS/Rack) Required documents • • • • 810 Electronic Invoice* 850 Electronic Purchase Order* 856 Advanced Ship Notice* UCC-128 Shipping Container label related to a valid ASN • 997 Functional Acknowledgment* • 832 UPC Catalog (Inovis or GXS) • Required at time of item setup Optional documents: • 855 Inbound Purchase Order (per Buyer set up only)* • 860 PO Change* * Version 4010 45 EDI Compliance Requirements (NDirect) • 810 Electronic Invoice • 850 Electronic Purchase Order • 832 UPC Catalog (Inovis or GXS) • 860 PO Change 46 Solutions for Vendors • List of 3rd Party Providers • Testing Invitation • All EDI testing is done through Inovis. • Job Aid • General Guidelines for UPC Creation • Catalog Provider Options (Inovis or GXS) 47 Expense Offset Policies • These fees are not imposed in order to generate revenue, but to increase compliance. • Compliance with our standards allows us to move merchandise quickly and cost effectively to the selling floor. • Compliance can help to increase sales, benefiting all of us. • Expense-offset fees are assessed for: • All merchandise not in compliance with our standards • Failure to comply with EDI document requirements • Purchase Order violations • We do not negotiate or settle valid charges. 48 NQ PO Violation Chargebacks What causes an NQ PO Violation? • Distro Error • DC receives SKUs not allocated for that store. • Exceeds PO Error • DC receives more pieces than were requested on the PO. • SNOPO Error • DC receives a SKU that is not in the Supplier’s catalog. 49 Portal Sales Data (Supplier Toolkit) • The Nordstrom Supplier Portal allows vendors to access webbased Sales and Inventory reports on demand. • An annual fee of $100 per supplier number is assessed for access to these reports. • For additional information about the Supplier Portal, please consult the “Terms and Conditions of Use” available at www.supplier.nordstrom.com. 50 Portal Sales Data (Supplier Toolkit) Portal Sales Data (Supplier Toolkit) Nordstrom Landing Page • In partnership with Inovis, we have created an online “landing page” that makes it easy for you to update your contact information. • The landing page ensures quick and accurate communication between Nordstrom and our vendors. • Please visit the Nordstrom landing page at http://www.inovis.com/nordstrom/ form.jsp. 53 Nordstrom Landing Page 54 Vendor Acquiring Licenses • When your company uses another company’s trademark, we require that you provide documentation demonstrating that you have permission to do so. • This permission may have been held by another company in the past, and we may have done business with that company. • Nordstrom Accounts Payable is responsible for establishing who is financially responsible for licensed merchandise at any given moment. • For this reason, providing us with the exact start date for your company’s permission is very important. 55 Vendor Acquiring Licenses • Valid documentation of a licensing agreement may be faxed to 206-373-3535 and may consist of: • • • 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 • The documentation should show the document 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. 56 CMIO Compliance Contact Info CMIO Compliance cmio.compliance@nordstrom.com (877) 444-1313 (option 1, option 2) 57 Questions? Nordstrom Compliance Conference Floor Ready Compliance October 11, 2006 Floor Ready Agenda • • • • • Ticketing Requirements Hanger Requirements Packaging Requirements Carton Requirements Advance Ship Notice (ASN) Requirements 60 Ticketing Requirements All merchandise must be received by our Distribution Centers and Fulfillment Center with a scannable UPC or EAN barcode. 0123456 BLACK Full Line Store • • • • • UPC or EAN barcode, scannable and human readable Style/VPN (Vendor Product Number) Color Size Retail 61 Ticketing Requirements Rack Store • • • • • • UPC barcode, scannable and human readable Style/VPN (Vendor Product Number) Color Season Code (see Compliance Manual for Season Chart) Size Retail (Regular or Compare At) Style Color A0123456789012345678 A0123456789012345678 ABCDEFGHIJKLMNOPQRST ABCDEFGHIJKLMNOPQRST UPC Barcode Dept Dept: 012 Season: 012 Size A12345678901234 Season Dept: 012 Season: 012 A12345678901234 Regular Retail MSRP Regular Retail 62 Ticketing Requirements Nordstrom Direct • • • • • UPC barcode, scannable and human readable Style/VPN (Vendor Product Number) Color Size Brief description of the Item 63 Hanger Requirements • All Full Line Store apparel must be shipped to our Distribution Centers on a Nordstrom approved VICS hanger. • Hangers must be inserted into garments and shipped in cartons. • Use a combination of top and bottom hangers for all 2-piece coordinates/sets. • Rubberized grippers should be used for scoop neck tops and fine gauge knits and as necessary to prevent damage or slippage. • Bottoms must be hung at the waist. • The following are unacceptable: unacceptable • • • Size indicators and vendor logos or stickers on hangers Full foam covers on top hangers; foam (mini covers) for sleeveless garments Loose foam or fabric swatches on bottom hangers 64 Hanger Requirements Full Line Store Hanger Specifications Department Name POV Narrative Brass Plum TBD Sleepwear Active wear Technical Coats Petites Merchandise Description Hanger Type 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” Bottom 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” Bottom Outerwear, Lightweight Jackets and Coats VICS 19” Top 3319 Clear 6012 Clear / Denim should be hung a “new” 6012 6014 Clear / Denim should be hung a “new” 6014 65 Hanger Requirements Full Line Store Hanger Specifications (Continued) Department Name Merchandise Description Hanger Type Savvy Studio Individualist Bridge Tops, Dresses and Light Weight Jackets 17” Top 5410 Black Coats, Blazers, Heavy Weight Jackets 17” Heavy Weight Top 5202 Black Bottoms 14” Bottoms 5135 Back Children’s Infant Tops VICS 10” Top 497 Clear Infant Bottoms VICS 8” 6008 Clear Toddler and Sizes 4-6 Tops VICS 12” Top 498 Clear Toddler and Sizes 4-6 Bottoms VICS 10” 6010 Clear Girls and Boys Sizes 7-20 Tops VICS 15” Top 485 Clear Girls and Boys Sizes 7-20 Bottoms VICS 12” Bottom 6012 Clear Outerwear and Coats VICS 15” Coat 3315 Clear 66 Hanger Requirements Rack Store • Shipments to the Nordstrom Rack should meet hanger requirements as specified by the Buyer. • Merchandise must be shipped in cartons with hangers inserted in the garment. • Any Hanger type may be used EXCEPT wire or wood. Nordstrom Direct • With the exception of wire hangers, almost all other hangers are acceptable provided that they meet the following requirements: • • • • • Each hanger type must be able to support the weight of the garment. Hangers must have a two inch high neck. Use appropriate hanger to prevent garment from slipping off the hanger. Use a padded bottom hanger when shipping delicate garments that might otherwise be marred or crushed. Hangers must not be broader than the shoulder width of the garment. 67 Packaging Requirements • • • • We encourage the use of environmentallysensitive packaging materials. Avoid excess packaging by using materials that maximize protection while minimizing environmental impact. Careful packaging is essential to ensuring safe delivery of your product. Full Line and Rack Stores (All Categories of Merchandise): • Pack multiple pieces per polybag, except for Reserve Stock PO’s. • Do not ship product in envelopes, burlap or plastic bags. • Pack each Purchase Order in a separate carton. • Do not mix product for multiple Distribution Centers in a carton. 68 Packaging Requirements Acceptable packaging materials: • Cardboard dividers, fittings and kraft paper • Bubble wrap, molded polystyrene, instapak foam Unacceptable packaging materials: • Straw • Newspaper • Hard plastic • Fiberglass • Styrofoam 69 Packaging Requirements Specific to Nordstrom Direct • Pack one SKU per carton (style, color, size). • You may have one mixed carton per color. • Label your mixed carton “MIXED”. • Each item must be placed in an individual polybag. 70 Carton Requirements Carton Specifications: • All shipping cartons must be constructed of new corrugated cardboard with a minimum bursting strength of 200 lbs per square inch to prevent crushing. Nordstrom Full Line and Rack Stores Weight and Dimensions of Shipping Cartons Width Height Weight Length 9 inches Minimum 9 inches 9 inches 5 lbs Maximum 36 inches 27 inches 30 inches 50 lbs 71 Carton Requirements Nordstrom Direct Carton Specifications Weight and Dimensions of Shipping Cartons • Merchandise shipped with a hanger inserted: • • Use carton size appropriate for garment. Merchandise shipped flat with no hanger inserted: Standard Carton Size Maximum Weight Perforation When to use Short Narrow 23” x 10” x 6” 40 lbs. Vertical: 5” Horizontal: 7” Smaller items such as swimsuits, lingerie, socks, hosiery, accessories Narrow 23” x 10” x 17” 40 lbs. Vertical: 12” Horizontal: 4” Apparel items that are light to medium weight Wide 23” x 15” x 17” 40 lbs. Vertical: 9” Horizontal: 9” Heavy bulky items such as robes, sweaters, shoes 72 Carton Requirements Nordstrom Direct Carton Specifications (Continued) Perforation • All cartons must be perforated to facilitate the creation of an opening. • Perforations should be located at one end of the carton. 73 Carton Requirements Carton Sealing and Marking • Carton sealing and marking requirements apply to all merchandise being shipped to Nordstrom. Carton Sealing: • Top and bottom must be sealed with one type of tape. • Use 2” or 3” patterned vinyl tape or paper reinforced security tape. • Do not seal with bands, staples, strings, straps or clear tape. 74 Carton Requirements Carton Markings for NonNon-EDI Shipments • Mark one end of each carton with the following information: • DC number and address • Carton number in an “x of y” format by DC • PO number • Department number • Store number • Total pieces per carton • PO event type – e.g., “Anniversary”, “Half-Yearly”, “Customer Order” (if applicable) • Fragile (if applicable) 75 Carton Requirements Carton Markings for EDI Shipments • The UCC-128 Label must include: • • • • • • • • • • • • DC number and address Vendor name, number and address Ship to postal code Carrier name Bill of lading Carton number in an “x of y” format by DC Total number of units in the case PO number Department number Mark for store number in 30 pt bold font Store barcode SSCC number (scannable barcode and human readable) • Label dimensions must be 4” x 6” 76 Carton Label for EDI Shipments From Vendor Name Address Line 1 Address Line 2 Address Line 3 TO (420) SHIP TO POSTAL CODE (420) 90266 CARRIER CARR: Carrier Name PRO: 12345678901234567890123456789 B/L #: 12345678901234567890123456789 PO #: 12345678901234 DEPT: Carton 1 of 2 0012 DC #: 699 VEND: 1234567 CASE QTY: 1234 STORE (91) 0001 STORE # 0001 (Must be 30 PT Bold Font) SSCC-18 (00) 0 0046863 000008235 7 77 Advance Ship Notice (ASN) Requirements Full Line and Rack Stores • Will also apply to Nordstrom Direct beginning in 2007 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. Must contain its own unique sub-bill of lading number. ASN must be received by Nordstrom prior to the shipment’s arrival in the distribution center. DHL/Airborne ASN Requirements • One ASN transmitted per case • • • • • If master pack, one ASN transmitted per master case Master pack ASN must 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 must be received by Nordstrom prior to the shipment’s arrival in the distribution center. 78 Contact Info Floor Ready Management FRM@Nordstrom.com (877) 444-1313 Option 1, Option 1 79 Questions? Nordstrom Compliance Conference Accounts Payable October 11, 2006 Accounts Payable at Nordstrom Accounts Payable Goals • On-time, accurate payments • Reconciliation of vendor accounts • Reduce aging items • Pro-active approach • Timely response to all correspondence • Reduce post-payment audit adjustments 82 How You Can Help • 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. • Timely account reconciliation • Inquire on discrepancies within 60 days (12 month time limit). • Utilize Nordstrom Supplier Portal for basic inquiries. 83 Nordstrom Supplier Portal Homepage 84 Accounts Payable Vendor Inquiry Inquire on invoices, chargebacks, PO documents or checks 85 Accounts Payable Vendor Inquiry Inquire on invoices by number, number range, date range or status 86 Accounts Payable Vendor Inquiry Inquire on chargebacks by number, number range, date range or status 87 Accounts Payable Vendor Inquiry Search by chargeback number and double-click to view detail 88 Accounts Payable Vendor Inquiry From chargeback detail page, double-click on “Deduction Details” link to access style information 89 Accounts Payable Vendor Inquiry Chargeback Style Detail 90 Accounts Payable Vendor Inquiry Inquire on purchase orders by all documents, invoices only or chargebacks only 91 Accounts Payable Vendor Inquiry Inquire on checks by number, date range or status 92 Accounts Payable Vendor Inquiry From check number page, double-click on “Check Number” to view detail 93 Accounts Payable Vendor Inquiry Check detail page options include printing, downloading to Excel, and viewing document detail 94 Documentation Available on Accounts Payable Website • Inquiry and Contact Information • Non-Compliance Contact List • Store Phone Numbers • Vendor Inquiry Template 95 What can Nordstrom AP do for you? • What additional information would you like us to provide? • What are your biggest areas of concern? Please fill out the Vendor Survey. Your responses are important to us! 96 Accounts Payable Contact Info Nordstrom Accounts Payable Call (206) 303-1080 -- Or -Email the AP Vendor Relations Department rep who handles your account via the “Contact Us” link on the AP website 97 Questions? Compliance Conference Nordstrom and Inovis Partnership We bring order to your orders October 11, 2006 Agenda • Nordstrom and Inovis Partnership • Inovis Overview • Inovis Solutions • Inovis Team/Questions Nordstrom and Inovis Partnership • Data Synchronization service • VAN Services • Retail Web Forms • Enabling Services Benefit to and Suppliers • Optimizes Supply Chain • Reduce Supply Chain Cost • Increase Revenue for both Nordstrom and Suppliers Agenda • Nordstrom and Inovis Partnership • Inovis Overview • Inovis Solutions • Inovis Team/Questions Inovis • Founded in 1983 • More than 20,000 customers • Strong financial position • Approximately 550 employees worldwide – Headquarters in Georgia – Major development and support centers in California and Texas – Sales and support in Europe • Recognized value leader in data exchange and data pool marketplaces • January 2006 Gartner Report – Inovis positioned in Leader Quadrant We Bring Order to your Orders Our History A rich acquisition history: Our customers: • Harbinger – VAN and PC SW • 12,500+ VAN customers • Texas Instruments EDI – Enterprise Translator, Electronics • 10,000+ Software customers • Premenos – Industry leading AS/400/TLi solution • 6000+ data synch customers • SupplyTech – Automotive and Desktop Translator – TLW • 60 managed services customers • Extricity – BPM and RosettaNet solutions • Annual revenue: $170M • IPNet – EDI-INT/B2B Gateway – BizManager • QRS – Retail expertise via hosted catalogue and VAN Inovis Overview Integrated B2B software and services managing the flow of e-commerce information for global trading communities Services Software Inovis VAN TrustedLink Inovis Catalogue Transform Connect Synchronize Integrate Retail Web Forms Managed Services Professional Services BizManager Our Customers The University of Chicago Press Agenda • Nordstrom and Inovis Partnership • Inovis Overview • Inovis Solutions • Inovis Team/Questions Retail Supply Chain Experts Inovis VAN Suppliers Web Form Merchandise System Suppliers VAN Interconnect Suppliers Direct Connect Item Master Suppliers Inovis Retail Leadership In 2005/2006 many major retailers made the decision to migrate to the Inovis solution: • • • • • • • • • Realize Inovis is the only provider in the marketplace investing in new platform technology Offers the most flexible connectivity for retailer and vendor Most cost effective solution for retailer and vendor Inovis only company to offer true hybrid (VAN and direct connect) solution Customer support and retail focus Able to support all vendors for a true 100% EC program Retail Web Forms lead the retail industry for small – medium vendors Financial Stability of Inovis Industry Leading Enabling and Support Agenda • Nordstrom and Inovis Partnership • Inovis Overview • Inovis Solutions • Inovis Team/Questions Inovis Participants in Conference Representative: Don Wiener Ella Mui David Smith Deb Gallagher Title: Client Account Executive Strategic Account Manager Client Services Manager Sr. Vice President-Global Sales Role: Consultative and Strategic Planning. Contract Negotiation. Consultative and Strategic Planning, Project Planning & Vendor Enabling Campaigns Program Management, Program Reporting Primary Contact for all Service related issue Inovis world wide sales Phone: 773-539-1886 510-965-4469 404-467-3154 404-467-3220 Fax: 510-621-4479 510-621-4469 404-467-3722 404-467-3949 E-mail: Don.Wiener@inovis.com Ella.Mui@inovis.com David.Smith@inovis.com Deb.Gallagher@inovis.com Based in: Illinois California Georgia Georgia Why Nordstrom Suppliers should partner with Inovis •Retail Industry Leading Data Synchronization service •Inovis is the only solution provider investing in new platform technology •Offers the most flexible connectivity for retailer and vendor •Customer support and retail focus •Able to support all vendors for a true 100% EC program •Financial Stability of Inovis •Industry Leading Enabling and Support Benefit to Trading Community Optimizes Supply Chain, increase operational efficiency and reduce cost “Leaders (Inovis) are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market” Gartner Inc. – January 2006 Thank You! Nordstrom Compliance Conference Transportation October 11, 2006 Transportation Agenda • Routing Guide • Approved Carriers • Scheduling Pickup • Bill of Lading • Jewelry and Watch Shipments • Expedited Air Program • Freight Agreements and Violations • Vendor Scorecard Overview 115 Routing Guide • The Nordstrom Routing Guide provides the only authorized routing instructions. • The Routing Guide is available online at 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 traffic@nordstrom.com. • Please check the website regularly for updates. • Pop-up notices indicate important changes for vendors. 116 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. 117 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 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 requested pick up date is a Monday, the Carrier must be contacted on the Friday of the previous week. If the same day request is on the cancel date and the carrier is unable 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. 118 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 (503) 978-3042. • 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. • As regards the Not Before/Not After window, please remember that freight must be shipped within this window, not received at the Nordstrom DC. 119 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. 120 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 Overview Gilbert 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 121 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 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. 122 Expedited Air Program • In 2004, in an effort to decrease 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. 123 Expedited Air Program ECS Provides: • Communication between buyer, vendor and DC • Specific service level routing instructions • Email authorization to vendor for Exception Routing ECS Applies To: • Nordstrom paid AIR Freight terms • Shipments 50 lbs. and over Vendor/Shipper Expectation: • When contacted by ECS, follow ECS email Routing Instructions • Provide AWB or Tracking Number 124 Freight Agreements and Violations • Freight agreements and violations are debited freight charges related to Purchase Order terms and/or contract agreements between a vendor and Nordstrom buyers to move purchased product to Nordstrom. Differences: • Agreements • Terms stipulated on a PO or in a company wide contract between vendors and Nordstrom • Pertain to the contribution of freight cost a vendor has agreed to pay to move freight to Nordstrom. • Violations • The result of non-compliance per the terms of a purchase order, agreement or Nordstrom Routing guide. 125 Vendor Scorecard Overview Shipment Summary • Provides a general overview of shipments received between February and July 2006 along with key metrics PO Delivery Compliance • Provides specific metrics regarding on-time shipping performance • When combined with “# of POs with Multi-Ships”, allows vendors to evaluate their shipping effectiveness Freight Agreements and Violations • Provides specific information on agreement and violation charges issued between February and July 2006 • Proper adherence to the Nordstrom Routing Guide and PO terms can eliminate the violation costs 126 Contact Info Transportation traffic@nordstrom.com (877) 444-1313 (Option 4) Volume Shipment Routing Desk (503) 975-3042 127 Questions? Nordstrom Compliance Conference Claims October 11, 2006 Welcome to the 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. Of the remaining returns, a percentage of qualifying merchandise is sold in our Rack stores. • Detailed pertinent information regarding quality issues is provided to our merchants and vendors, offering them the opportunity to correct any problems. 130 Defective Claims Processing • Each month, vendors receive detailed reporting on 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 UPS or FedEx account number. 131 DC Consolidations for Return of New Product Return Authorization Procedures • RA# and RA expiration date is needed for all claim consolidations. • DCs process and accumulate consolidations 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 132 Contact Info Nordstrom Quality Center Nordstrom.Quality.Center.Hotline @Nordstrom.com (253) 437-4598 For DC Claims contact: Accounts Payable, Vendor Relations 133 Questions?
