Nordstrom Compliance Conference

Transcription

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: [email protected]
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.
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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.
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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.
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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.
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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)
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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
• 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
[email protected]
(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
[email protected]
(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
ƒ Inovis VAN
ƒ TrustedLink
ƒ Inovis Catalogue
Transform
Connect
Synchronize
Integrate
ƒ Retail Web Forms
ƒ Managed Services
ƒ Professional Services
ƒ 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:
[email protected]
[email protected]
[email protected]
[email protected]
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 [email protected].
• 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.
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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.
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
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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 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
[email protected]
(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?