Hudson`s Bay Company

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Hudson`s Bay Company
200: How to do Business with the
Hudson’s Bay Company (HBC,
Sak’s 5th Avenue, Lord & Taylor)
Sarah Polworth, Hudson’s Bay Company, Saks Fifth Avenue
June 3, 2015
AGENDA
• Agenda
– Priorities for 2014/2015
– General Shipping Requirements
– RFID
– Saks Fifth Avenue/ Saks OFF 5TH: Canada
– Questions and Answers
© 2015 GS1 US ALL RIGHTS RESERVED
2
HUDSON’S BAY COMPANY
• Founded in 1670 by King Charles II, the Hudson’s Bay
Company is the North America’s longest continually operated
company
• Publically traded on the Canadian Stock Exchange, HBC
• Richard Baker, Governor and CEO
© 2015 GS1 US ALL RIGHTS RESERVED
3
Priorities for 2015/2016
© 2015 GS1 US ALL RIGHTS RESERVED
4
ADVANCEMENTS
• Systems Integration
• Expansion of RFID
• Saks Fifth Avenue, Saks OFF 5TH into Canada
© 2015 GS1 US ALL RIGHTS RESERVED
5
How To Do Business With…
© 2015 GS1 US ALL RIGHTS RESERVED
6
ELECTRONIC DATA INTERCHANGE (EDI)
• 180 Return Merchandise Authorization ~ Saks Fifth Avenue
only
• 810 Invoice ~ Saks Fifth Avenue changing
• 812 Credit/Debit Adjustment ~ n/a Saks Fifth Avenue
• 820 Remittance Advice ~ Saks Fifth Avenue (new)
• 850 Purchase Order
• 852 Sales Advice
• 855 Reverse PO
• 856 Advance Ship Notice
• 860 Purchase Order Change ~ n/a Saks Fifth Avenue
• 824 Application Advice
© 2015 GS1 US ALL RIGHTS RESERVED
7
U.P.C. TICKETS
Lord & Taylor
Hudson’s Bay*
Saks Fifth Avenue
Saks Fifth Avenue – CA*
Saks OFF5TH
Saks OFF5TH – CA*
Direct:
Saks, OFF 5TH
* Bilingual, $
CAD
© 2015 GS1 US ALL RIGHTS RESERVED
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HANGERS
Hudson’s Bay, Lord & Taylor
 VICS® Standard
Saks Fifth Avenue/Saks OFF 5TH
VICS Standard with black hook, black clips
© 2015 GS1 US ALL RIGHTS RESERVED
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CARTON LABELING
Hudson’s Bay
Lord & Taylor
Saks Fifth Avenue
© 2015 GS1 US ALL RIGHTS RESERVED
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Radio Frequency Identification (RFID)
© 2015 GS1 US ALL RIGHTS RESERVED
11
RFID IS PART OF OUR EVERYDAY LIFE
• Company swipe cards
• Race bibs have RFID chips to track
results
• Resorts use RFID wristbands for
access into parks, ski slopes,
resorts
• Gas stations use swipe-and-go to
facilitate payment
• Hotels use RFID for door entry
access
• Tollbooths use RFID
© 2015 GS1 US ALL RIGHTS RESERVED
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THE BASICS OF RFID
• Serialized product code attached to every item that can be
read en masse from a distance
• Chips embedded into ordinary paper tickets, stickers, media
• Tags “sleep” until woken up by signal from a RFID reader
• Does not require a line of sight to “see” an RFID tag
• Mobile reader guns look like barcode scanning guns
• Stationary readers can be mounted discreetly in strategic
places
© 2015 GS1 US ALL RIGHTS RESERVED
13
RFID AT HUDSON’S BAY, LORD & TAYLOR, AND
SAKS FIFTH AVENUE
• 2012
– Lord & Taylor and Hudson’s Bay
• All store expansion of Shoe Audit
– Saks Fifth Avenue - Pilot
• Shoe Audit
• Selling Floor Replenishment
• Dual RFID/EAS tags on Denim
© 2015 GS1 US ALL RIGHTS RESERVED
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DISPLAY AUDIT
Shoe audit display for all banners
© 2015 GS1 US ALL RIGHTS RESERVED
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RFID – THE BARCODE OF THE 21 ST CENTURY
RFID integration provides opportunities to improve retail operations
and will be a key driver in optimizing the value of omni-channel
WHY RFID?
PRIORITY USE
CASES
KEYS TO
SUCCESS
 Ensure product is on the floor (display and assortment), streamline
inventory counts and locate merchandise
 Improve sales and sell-through, boost GM, improve inventory integrity
and reduce shortage
 Increasingly seen as a core element of a successful omni-channel
strategy
 Mix of full and pilot rollouts in key categories
o Display audit
o Back to Front replenishment
o Cycle counting
 EDUCATION – Inform key stakeholders, vendors, and associates
 EXPLORATION – Build use cases, track pilots, and learn capabilities
 EXECUTION – Align implementation plans with cross-functional
teams, and focus on key opportunity merchandise areas
© 2015 GS1 US ALL RIGHTS RESERVED
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HBC RFID TASK FORCE
Effectively engaging a diverse
stakeholder group is required to
facilitate RFID expansion into additional
stores, across all banners and within
priority categories.
IT
SUPPLY
CHAIN
LEGAL
FINANCE
STORES
PRESIDENT’S
OFFICE
RFID
LEAD
MERCH
PRIVATE
BRANDS
EXTERNAL
PARTNERS
VENDORS
MIO
CAPITAL
GROUP
FUNCTION
Merchants /
Private
Brands
Merchandise opportunities
Support with vendor rollout
MIO
HBC’s RFID standards, vendor collaboration
and communications
IT
Reporting, uploads, equipment management,
consistency across banners
Finance /
Capital
Business case development
Expenditure approval and tracking
Store
Operations
Development and execution of in store
processes
Develop and report on success metrics
Asset
Protection
Process & controls around inventory integrity
initiatives (i.e. on-hand updates)
Supply
Chain
DC audits
Upstream opportunities
Legal
Awareness of patent requirements / privacy
Vendors
RFID compliance and support
External
Partners
Industry groups and conferences;
Key service providers for hardware, software,
and implementation support
President
Offices
Support alignment and integration with
© 2015
GS1 US ALL RIGHTS RESERVED
merchant
team
17
RFID USE CASES
SCAN FLOOR ONLY
OmniChannel
Programs
Loss
Prevention
Inventory
Counts
Targeted
Scan
Description
In Store
Replenishment
Replenishment
Programs
ADDITIONAL USES
Scan display
items to
ensure all
styles are on
display
Scan item
intensive
programs to
ensure all sizes
are on the floor
Use on-hand
data to feed
updated counts
to
replenishment
programs
Use on-hand
data to ensure
inventory
integrity for
omni-channel
Daily counts
used to identify Scan units for Locate exact
shortage to
physical
product, aid
improve LP
inventory count omni-channel
investigations
Key
Opportunities
Display
Audit
SCAN ALL UNITS / ENTIRE STORE
One to
show, many
to go
Self-service, size
intensive
merchandise with
backroom
inventory
Replenishment
areas with high
shrink / low
inventory
integrity
Merchandise
popular for
omni-channel
& pick-up in
store
Merchandise
with high
theft/shrink
All inventory
Merchandise
popular for
omni-channel
& difficult to
pick items
Supply
Chain
Applications
Use RFID to
track inventory
from
manufacturer
All inventory
© 2015 GS1 US ALL RIGHTS RESERVED
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ROLLOUT AND IMPLEMENTATION SCHEDULE
• Lord & Taylor, Hudson’s Bay
– August 2014 – Private Label (Women’s)
– February 2015 – Denim, Dress Shirts, Men’s Basics, Intimate
Apparel, Private Label (Men’s)
– August 2015 – Men’s and Women’s Apparel, Children’s,
Accessories, Shoes, Handbags, Home & Gift
• Saks Fifth Avenue
– August 2014 – Private Label
– October 2014 – Denim, Dress Shirts, Men’s Basics, Intimate
Apparel, Private Label
– February 2015 – Men’s and Women’s Apparel, Children’s,
Accessories, Shoes, Handbags
© 2015 GS1 US ALL RIGHTS RESERVED
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HBC REQUIREMENTS/SPECIFICATIONS
• Ultra High Frequency (UHF)
• Gen 2 tag and labels
– EPC logo
– Encoded following GS1 sGTIN 96
– Approved Inlays: M category
– Integrate with the U.P.C./EAN tag
or affix a companion tag
– Follow U.P.C./EAN Ticket
placement chart
http://rfid.auburn.edu/arc/inlays/spec-m.cfm
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EPC TAG OPTIONS
• Integrated tag.
– This single tag achieves both the EPC and U.P.C. ticket
requirements. The inlay is sandwiched (encapsulated)
between paper.
– Integrated tags can be hangtags, stickers, or rattail tickets
• Non-Integrated, Companion Sticker or Hangtag:
– This sticker is applied to the back of the U.P.C. ticket. Only
the essential style information should be on this ticket to
assist with the matching process. No barcode nor retail price
should be present on this tag type.
– This hangtag is attached next to the U.P.C. hangtag. Only the
essential style information should be on this ticket to assist
with the matching process. No barcode nor retail price should
be present on this tag type.
© 2015 GS1 US ALL RIGHTS RESERVED
21
Saks Fifth Avenue/ Saks OFF 5TH - Canada
© 2015 GS1 US ALL RIGHTS RESERVED
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What’s Changing and How to Get Started
© 2015 GS1 US ALL RIGHTS RESERVED
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OUR CANADA OFFERINGS

Stores

Digital
Organization
and
Logistics
Saks is entering Canada in February 2016, with two brick and mortar
locations
 Eaton Centre: Saks will be well positioned as the major luxury
retailer in the revitalized Queen Street & Yonge Street shopping area
 Sherway Gardens: Saks will be a premiere luxury anchor at
Sherway Gardens
We see market potential for up to 7 Full Line stores; in addition, we plan
to open up to 20 OFF 5TH stores in Canada, also starting in Spring 2016

In 2016, Ecommerce orders will continue to be fulfilled by our international
shipping partner, Borderfree, and will ship from our La Vergne facility

Saks Full Line Merchant teams will be your cross-border, omni-channel
partners; For Saks OFF 5TH, you will work with US merchant teams and
new Canada merchants
Saks Vendor Relations will remain your key point of contact
Canada orders will ship through our Toronto Logistics Centre and will be
handled by our Toronto-based Supply Chain and Logistics Teams
International Imports and Social Compliance Teams may be involved
with a greater number of vendors



© 2015 GS1 US ALL RIGHTS RESERVED
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VENDOR SET UP PROCESS
Hudson’s Bay Company d/b/a/ Saks Fifth Avenue Canada
Hudson’s Bay Company d/b/a/ Saks Fifth Avenue OFF Fifth Canada
•
Saks Canada will set up all vendors specifically for Canada with a new vendor number;
through this process you will work with your buyer to determine
• Who is Importer of Record?
• What are the Payment Terms?
• What are the Freight Terms?
The vendor set up process will be the same as our process used for the US:
Buyer
 Fills in select
sections
 Sends to Vendor
Vendor
 Fills in select
sections
 Returns form to
Buyer with
sample / voided
invoice
Buyer
 Reviews form
 Sends to Social
Compliance &
AP
Accounts
Payable & Social
Compliance
 Review request
 Conduct
necessary
diligence
Vendor Relations
 Activates vendor
 Notifies buying
office
 Send to VR
Updated Canada set up forms will be provided by your buyer
© 2015 GS1 US ALL RIGHTS RESERVED
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IMPORTER OF RECORD
There are three primary classifications we will use to work with vendors for Saks Canada
Landed Duties Paid (LDP)
“Canadian Domestic”



Vendor is the importer of
record / ultimate
consignee
Must have a Canadian
Entity:
 Goods and Services
Tax #
 Bond in CAN to clear
customs
Set up requires:
 Domestic vendor set
up form
 Sample / voided
invoice
DOMESTIC
Freight On Board (FOB)
United States

Saks Canada is the
importer of record

We take possession at
vendor location in the
United States

Set up requires:
 Import vendor set up
form
 Sample / voided
invoice
Overseas Import





Saks Canada is the
importer of record
FCA: We take possession
and pay all charges once
cargo reaches the
consolidator/ forwarder
warehouse
Ex-Works: We take
possession and pay all
charges from factory’s dock
FOB Port for Private
Label Only
Set up requires:
 Import vendor set up
form
 Sample / voided
invoice
© 2015 GS1 US ALL RIGHTS RESERVED
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CREATING ORDERS AND ITEMS
There will be several unique buying processes for our Canada stores
 Separate Purchase Order for Canadian Stores
 Items set up twice - once under each Vendor Number
 Continue to pull from GXS Catalogue
 Add Canadian Cost, Retail, Country of Origin
 Merchants will need to know if:
 Same style numbers
 Same U.P.C./EANs
© 2015 GS1 US ALL RIGHTS RESERVED
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EDI REQUIREMENTS
All vendor shipments to the Saks Canada DC (Toronto Logistics Centre) are to be
accompanied by a valid ASN
What is
different?
What is the same?
LDP and FOB US Vendors
Overseas Import Vendors
 180 – no change
 810 not required for Overseas Imports vendors
 824 – no change
 820 not required for Overseas Imports vendors
 850 – no change
 850 not required for the near term
 852 – no change
 856 not required for the near term
 855 – no change
 856 – no change
 997 – no change
 Separate EDI Trading Partner IDs for Saks
Canada transactions
 Will require 850/856 effective Jan 2016
 New map for 810 Electronic Invoice
 820s - Remittance Advice required
 All vendors will be tested to ensure full Saks Canada EDI capability.
 Test details will be communicated to vendors shortly for testing May-September
© 2015 GS1 US ALL RIGHTS RESERVED
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TICKETING AND FLOOR READY
REQUIREMENTS
 Transmit retail prices on Purchase
Order:
Full Line Sample
OFF 5TH Sample
 Canadian Retail
DEPT #
STYLE / MODELE
 OFF 5TH Tickets also must have
Canadian “Compare At” Retail and
% Savings (for OFF 5TH Tickets
only) – to be confirmed by buyer at
time of purchase
STYLE/ MODÈLE
COLOR / COULEUR
 Maintain current Hanger standards
SIZE/TAILLE
SIZE / TAILLE
01234678
9804546
0
 Bilingualism: All ticket information
must be in both French and English
with equal prominence
COLOR/COULEUR
12345
67890
$250.00
1
01234678
9804546
0
12345
67890
1
COMPARE AT
COMPARABLE A
$400.00
OUR PRICE
NOTRE PRIX
$199.99
50% SAVINGS
ÉCONOMIE 50%
 Maintain current RFID requirements
© 2015 GS1 US ALL RIGHTS RESERVED
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Labelling Requirements
© 2015 GS1 US ALL RIGHTS RESERVED
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SAKS CANADA ADDENDUM
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APPAREL AND ACCESSORIES: LABELING
REQUIREMENTS
All information on the label must be bilingual with correct
English and French
 Fibre ID
 Must follow lab recommended fibre ID
 Approved Canadian English and French fibre names can be found at:
http://www.Competitionbureau.Gc.Ca/eic/site/cbbc.Nsf/eng/01662.Html
 Care instructions
 HBC softlines technical manual lists some standard care instructions in
English and French
 Should follow lab recommended care instructions
 Country of origin
 CA # & RN #
 Size
Garment maker to ensure that ALL information is ACCURATE and complete before
bulk label production and before shipping.
© 2015 GS1 US ALL RIGHTS RESERVED
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APPAREL AND ACCESSORIES: LABEL FORMAT
90% Cotton
8% Nylon
2% Spandex
Exclusive of Decoration
√
SUGGESTED FORMATS
FOR BILINGUAL LABELS
90% Coton
8% Nylon
2% Spandex
Décoration non comprise
90% Cotton / Coton
8% Nylon / Nylon
2% Spandex / Spandex
Exclusive of Decoration / Décoration non
comprise
X
FORMAT NOT
RECOMMENDED FOR
BILINGUAL LABEL :
65% Cotton
65% Coton
35% Acrylic
35% Acrylique
Exclusive of Decoration
Décoration non comprise
© 2015 GS1 US ALL RIGHTS RESERVED
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APPAREL AND ACCESSORIES: CA NUMBER
MANUFACTURERS IDENTIFICATION (CA#)
 The name and full postal address of the dealer is required. Or, for dealers in
Canada, the "CA Identification Number" or "CA Number" may be used (US’s RN
# is NOT an acceptable alternative to CA# in CANADA)
 NOTE: Only Canadian manufacturers, processors, or finishers of a textile fibre
product or Canadians engaged in the business of importing or selling any textile
fiber product may register for a CA Number
For FOB US and Overseas Import vendors Saks Canada CA # must be
used on the garment. Canada Domestic vendors can use their OWN CA#.
RN 92087
CA 00234
© 2015 GS1 US ALL RIGHTS RESERVED
34
APPAREL AND ACCESSORIES: FIBRE CONTENT
LABELING
 No tolerance for 100% fibre
 3% tolerance for declared label weight percentages for intimate blend of
more than one fibre
 5% Rule - Fibre less than 5% can be shown as “other fibre/s”
Example: 96% Cotton, 4% Other Fibres
 More than one fibre in amounts of less than 5% each, can be designated
with their total percentage.
Example: 90% Cotton, 3% nylon, 3% polyester, 4% rayon OR
90% Cotton, 10% Other Fibres
 Shell and lining should be disclosed separately even if they are the same
material
Example : Shell (100% Polyester, Lining: 100% Polyester )
© 2015 GS1 US ALL RIGHTS RESERVED
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APPAREL AND ACCESSORIES: STUFFED
ARTICLES LABELING
Apparel and accessories with filled hidden material require a stuffed
articles label in Canada

Provincial Requirement: Ontario, Quebec, Manitoba.

Visit the Technical Standards & Safety Authority website
for additional label formats & Form 2 Label.
http://www.tssa.org/regulated/upholstered/labels/
http://www.tssa.org/CorpLibrary/ArticleFileMain.asp?Instance=136&ID=CCD1
FD3FAC08466C9685B5F31ECC8837
© 2015 GS1 US ALL RIGHTS RESERVED
36
APPAREL AND ACCESSORIES: TESTING
REGULATORY REQUIREMENT
MANDATORY FLAMMABILITY REQUIREMENT IN CANADA
 Mandatory Flammability Regulation in Canada
 All Products, in whole or in part, if made of textile.
 Test method CAN/CGSB 4.2 NO.27.5:2008
 The test is similar to US 16 CFR Part 1610 but NOT identical
 US Flammability – 16 CFR Part 1610
 Certain exemptions apply
 Hats, Gloves, Interlining Fabrics
 Plain surface fabrics, regardless of fibre content, weighing 2.6 oz/sq.
yd or more
 All fabrics, both plain surface and raised-fibre surface, regardless of
weight, made entirely or the combination of the following fibres:
Acrylic, Modacrylic, Nylon, Olefin, Polyester, Wool
© 2015 GS1 US ALL RIGHTS RESERVED
37
JEWELRY: TESTING REGULATORY
REQUIREMENTS
CHILDREN’S (<15 YEARS OLD) JEWELRY TESTING
 Coatings and substrates
600 mg/kg total lead AND 90 mg/kg migratable lead
 Cadmium allowable level
75 mg/kg total cadmium.
Children's Jewelry Regulations:
www.laws-lois.justice.gc.ca/eng/regulations/SOR-2011-19/index.html
“CHILDREN'S JEWELRY IS JEWELRY THAT IS MANUFACTURED, SIZED,
DECORATED, PACKAGED, ADVERTISED OR SOLD IN A MANNER THAT APPEALS
PRIMARILY TO CHILDREN UNDER 15 YEARS OF AGE.”
© 2015 GS1 US ALL RIGHTS RESERVED
38
BEAUTY: REGULATORY INFORMATION
“Any substance or mixture of substances, manufactured, sold or
represented for use in cleansing, improving or altering the complexion,
skin, hair or teeth and includes deodorants and perfumes."
 The Cosmetic Regulations and the Food and Drugs Act require that
cosmetics sold in Canada be manufactured, prepared, preserved, packed
and stored under sanitary conditions
 The manufacturer and importer must notify Health Canada that it is selling
the product and provide a list of the product's ingredients
 Additionally, cosmetics are subject to the requirements of the Consumer
Packaging and labeling Act and Regulations and any chemicals found in
cosmetics may be subject to the Canadian Environmental Protection Act
© 2015 GS1 US ALL RIGHTS RESERVED
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BEAUTY: NOTIFICATION OF COSMETICS
Per the Cosmetic Regulations, manufacturers and importers must notify
Health Canada within 10 days after they first sell a cosmetic in Canada.
• Failure to notify may result in a product being denied entry into Canada or
removed from sale
• Whenever a change affecting the information on a Cosmetic Notification
Form (CNF) is made, manufacturers or importers must amend the CNF and
resubmit to Health Canada. Some examples of this include:
– modification of the cosmetic formulation
– change of product name
– discontinuation of sale
– new company name, address or contact information
• Refer to the Guide for Completing Notification Forms to ensure the
cosmetic notification forms are completed correctly
© 2015 GS1 US ALL RIGHTS RESERVED
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BEAUTY: LABELING OF COSMETICS
The labeling of cosmetics is governed by the Food and Drugs Act, the Cosmetic
Regulations, the Consumer Packaging and labeling Act and the Consumer
Packaging and labeling Regulations.
• To comply with these requirements, cosmetic labels must include:
– an ingredient list (using the International Nomenclature for Cosmetic Ingredients (INCI) system)
– the identity of the product, in English and French
– a statement of net quantity in metric units of measurement
– the name and address of the manufacturer or distributor
– warnings or cautions, in English and French
– directions for safe use of the product, in English and French according to provincial
requirements
The Packaging of cosmetic products may be subject to additional requirements
such as:
• Stuffed Articles Label per the Canadian Technical Standards and Safety Authority.
https://www.tssa.org/regulated/upholstered/
© 2015 GS1 US ALL RIGHTS RESERVED
41
BEAUTY: COSMETIC-DRUG INTERFACE
These are products that may share the characteristics of both "cosmetic"
and "drug", as defined in the Food and Drugs Act, making them more
difficult to classify.
© 2015 GS1 US ALL RIGHTS RESERVED
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BEAUTY: CLASSIFICATION EXAMPLES
Cosmetics
• soaps
• artificial nail builders
• adhesives such as for artificial
nails, hair extensions, etc.
• moisturizers
• tinted moisturizers (concealer)
• makeup products
• cleansing wipes
Not Cosmetics
• sunscreens (including makeup
products with SPF)
• acne treatment
• skin whiteners or lighteners
• hand sanitizers
• artificial nails and hair extensions
© 2015 GS1 US ALL RIGHTS RESERVED
43
BEAUTY: DECLARATION LETTER
• The Cosmetic Regulatory Requirements for both Canada and USA have been included in a
Declaration Letter which must be reviewed and signed by all vendors who supply Private
Label Products or supply Products where Saks Canada is the Importer of Record.
• The letter must be signed and returned to Neeraj Gupta before any product is shipped to
SAKS Canada.
Cosmetics regulatory requirements in Canada and USA declaration letter can be found on
Intertek’s (ITS) website, by using the below User ID and Password:
https://getprotocol.intertek.com/Hbc/default.aspx
User ID: LT\bd.Hbcvendor ; Password: int0235
© 2015 GS1 US ALL RIGHTS RESERVED
44
Social Compliance
© 2015 GS1 US ALL RIGHTS RESERVED
45
WHY SOCIAL COMPLIANCE
The goal of our Social Compliance program is
to ensure our suppliers operate in an ethical
manner to maintain & improve fair labor
practices and safe work place conditions for
the factory workers, while protecting the
integrity of our assortment of brands.
© 2015 GS1 US ALL RIGHTS RESERVED
46
SUPPLIER CODE OF CONDUCT
The principles of the HBC
Supplier Code of Conduct
form the foundation of our
program. The caveats of
the Code come from the UN
Declaration of Human Rights
& the International Labor
Organization (ILO).
Suppliers are expected to
ensure their factories and
subcontractors are aware of
and in compliance with the
Code.
© 2015 GS1 US ALL RIGHTS RESERVED
47
PROGRAM COVERAGE
Full participation in our Social Compliance program is
applicable to:
(1) All (LDP, FOB US and Overseas Import) suppliers producing
private label merchandise
(2) Overseas import suppliers producing branded merchandise
LDP and FOB US Branded Vendors
 Subject to Social Compliance Policy,
Supplier Code of Conduct and Terms
and Conditions contained in Vendor
Standards Manual but not subject to
Program
Private Label Vendors and Overseas
Import Branded Vendors
 Full Participation
© 2015 GS1 US ALL RIGHTS RESERVED
48
SUPPLIER PARTICIPATION
Full participation in our Social Compliance program involves:
1.
Full disclosure to HBC SC department of factories to be used
for Saks Canada / HBC production
2.
Submission of evidence of social compliance (audit reports)
based on the risk level of the manufacturing country
3.
A commitment to adhere to our Supplier Code of Conduct
and to make continuous improvements to factory conditions
© 2015 GS1 US ALL RIGHTS RESERVED
49
AUDIT TYPES AND APPROVAL TIMEFRAME
The following documents will be requested from suppliers prior to approval
for set- up based on the risk level of the manufacturing country:
Private Label Vendors and Overseas Import Branded Vendors
Documentation
 Self- Assessment
Factories in High Risk Countries
 No documentation required
Approval
Timeline
Factories in Low Risk Countries
 N/A
 1 – 2 weeks
 2 – 6 weeks
Illustrative
Countries
LDP and FOB US Branded
Vendors
 Self-Assessment and
 N/A
 Italy, US, UK
 China, India, Tunisia
 Third party audit report conducted by
an accredited audit standards and/or
 ITS audit; paid for by vendor
© 2015 GS1 US ALL RIGHTS RESERVED
50
AUDIT GRADES
• Audit results will determine the grade assigned to a
factory:
– Approved for Production - Factory is approved for 1-2 years
– Approved Subject to Improvement- Factory is approved for 6 months to 1 year
– Not Approved- Factory cannot proceed with set-up or purchase order
• Zero Tolerance Violations
– Child labor, forced labor, slavery, human trafficking and transshipment
– Goods from factories found with zero tolerance violations will be rejected or recalled
at the expense of the supplier
• Strive for Continuous Improvement
– Monitoring factories for social compliance is ongoing
© 2015 GS1 US ALL RIGHTS RESERVED
51
Supply Chain
© 2015 GS1 US ALL RIGHTS RESERVED
52
AGENDA
2016 Stores
1.
Saks Full Line
•
Toronto, ON
– 2 stores
2.
Saks OFF 5TH
•
Coming Soon
– Across
Canada
Edmonto
n
Vancouv
er
Calgary Regina
Winnipe
g
Montreal
OTTAWA
Toronto
3 Ways to Ship to Saks Canada Distribution Center
1.
Landed Duty Paid vendor to Saks Canada
• Vendor is responsible for merchandise delivery to our DC (Pre-paid)
2.
FOB US vendor to Saks Canada
• If Saks Canada is the Importer of Record the vendors will be Saks Canada Pickup (Collect)
• Note – Appropriate Canada customs paperwork is required
3.
Overseas Import vendor to Saks Canada
• Vendor must use our designated freight forwarder who moves the merchandise into Canada on our behalf
• Note – Appropriate Canada customs paperwork is required
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OVERSEAS/IMPORT SHIPPING GUIDELINES
AIR SHIPMENTS
1. Air shipments for branded vendors (mostly sourced out of Europe today) are to be handled by our
designated freight forwarder Savino Del Bene. Contact details can be found in the Vendor Standards
Manual Canada Addendum.
1. Shipping Terms
• Air Collect – shipment will be air lifted at Saks Canada’s expense.
• Air Prepaid – shipment will be air lifted at vendor’s expense. The Buying Office must approve late
shipping and accept vendor airing the PO to meet ship window
OCEAN SHIPMENTS
1. Ocean shipments for private label vendors (mostly sourced out of Asia today) are to be handled by our
designated freight forwarder DAMCO. Contact details can be found in the Vendor Standards Manual Canada
Addendum. Terms are collect.
1. Vendor can book with DAMCO Logistics 21 days before must arrive by date (MABD) and receive
confirmation from DAMCO of the vessel and relevant delivery deadlines. Minimum booking is 14 days
prior to must arrive by date
2. CFS Cargo: deliver to DAMCO Logistics warehouse 7 days before vessel departure, and deliver
documents for Export Customs Clearance on the same day
3. CY Cargo: send Container Loading Result to DAMCO Logistics via fax or email at least 4 days before
vessel departure, with which DAMCO Logistics send the ACI (Advanced Customs Information) to
carrier for Canadian Customs Manifest. Special approval for 20’ containers are required
4. For any product that is less then 55 CBM and no 20’ Container approval then delivery to DAMCO
Logistics warehouse to ship as CFS cargo is expected
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APPOINTMENT FOR LDP AND FOB US
VENDORS
• The Canadian DC has an appointment scheduling process to
manage the inbound flow for all our banners for shipments
originating from both Canada and the USA
• The system will validate the order. Orders shipped to arrive at our DC
early will be provided with a revised pick-up date or appointment
date
• Orders that are shipped late (arriving at the DC after the cancel
date) will be validated with the buying team before issuing an
appointment (notification will say “HBC Intervention”)
• If there are no issues with the orders in the request, an appointment
will be confirmed within 5 to 10 seconds
• One-on-one training and system access set-up will begin in
June
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THE APPOINTMENT SCHEDULING SYSTEM
LDP Vendors

Vendor’s responsibility to arrange their own transportation to meet their assigned
appointment

Vendors delivering to our DC will request a “Delivery Date” within their shipping window
 Please note that Saks Canada transportation team does not arrange transportation for
orders delivered to the DC
FOB US or Overseas Import Vendors

Saks Canada is responsible for the transportation to the DC

Shipments picked up in the USA require appropriate documentation for customs clearance

Vendors requiring Saks Canada to pick-up the order provide a “Requested Ready to Ship
Date”. The date selected must allow for the transit time to get the product to our DC. The
system will provide that information to you based on the location of your warehouse

The Saks Canada transportation team will communicate routing instructions through the
appointment scheduling system within one business day
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Imports and Customs
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VENDOR IMPUTS: FOB US AND OVERSEAS
IMPORT
The following documentation is required for FOB US and Overseas import
vendors for all shipments
1• Commercial Invoice
– Invoice MUST show Purchase Order number and department number
– Full description of the items (ex. quantity, color, size, fabrication, etc.)
– Country of Origin for each item
– Manufacturer’s name and address by style# if more than one manufacturer is involved, for
all garments and textile products
2• Specification sheets or Packing Lists
– Packing list to include size, color per item, gross and net weight and number of parcels and/or
cartons
3• Canada Customs Invoices
– Must show Country of Origin, Country of Export, FOB/Port of Export, Material content
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SELECT FOB US AND OVERSEAS IMPORT
VENDORS
The following documentation is required for vendors that meet specific criteria
• Canada Customs Memorandum D10-11-3 – footwear only
• Forwarders Cargo Receipt – Ocean transport only
• Bill of Lading – Truck transport only
• Certificate of Origin: Textile Product and Clothing from LDC Countries
– B255 – if applicable
• NAFTA certificate – if applicable
• Free Trade Certificates – if applicable
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Saks Canada DC (DC 596)
SAKS FIFTH AVENUE CONTACTS
Functional Area
Vendor Relations
Technical Design, QA, and
Testing
Social Compliance
Appointment Scheduling
Position
Name
Phone Number
145 CARRIER DRIVE
REXDALE, ON CANADA
M9W 5N5
Email
Division Vice President, Vendor
Relations
Sarah Polworth
212-940-5246
[email protected]
Senior Manager, Vendor
Relations
Rohan Fenton
212-451-1681
[email protected]
Senior Analyst, Vendor
Relations – Women’s Shoes,
Accessories, Handbags
Francesca Angotti
212-451-1818
[email protected]
Senior Analyst, Vendor
Relations – Women’s,
Children’s
Valerie Arsenyuk
212-940-5494
[email protected]
Analyst, Vendor Relations –
Designer, Beauty, Intimates
Jenny Luong
212-451-1786
[email protected]
Director, Technical & QA
Neeraj Gupta
905-792-4749
[email protected]
Manager, Technical Design
Mandeep Virdee
905-792-5715
[email protected]
Testing and QA - Sleep,
Outerwear, Men's
Wanda Newsum
905-792-4755
[email protected]
Testing and QA - Kids, Ladies,
Intimates, Footwear
Sushil Khatter
905-792-6360
[email protected]
Testing and QA - Accessories,
Jewelry
Mehzabeen Nundioli
905-595-8832
[email protected]
Director, Corporate Social
Compliance
Julie Yan
905-792-4679
[email protected]
Manager, Social Compliance
Jinie Choi
905-595-7867
[email protected]
Analyst, Social Compliance
Molly Minton
212-634-2252
[email protected]
Supervisor, Appointment
Scheduling
Coleen Heichel
570-821-6378
[email protected]
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HUDSON’S BAY AND LORD & TAYLOR
CONTACTS
 https://vendorpartners.hbc.com/vpprd/Login.html
 http://partners.lordandtaylor.com/partners/pdfs/vendor_manual.pdf
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QUESTIONS AND ANSWERS
???
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