HERE S WHERE YOU ARE. brand packaging & labeling. labeling
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1 HERE S WHERE YOU ARE PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING overview purchase orders product samples quality assurance product information brand packaging & labeling shipping compliance brand packaging Creating the Co-Branded Experience Polybag Guidelines Apparel and Accessories Brand Requirements Beauty and Personal Care Brand Guidelines labeling How HSN Uses Labeling Item Labeling Expiry Product Labeling Master Carton Labeling Palletized Load Labeling -118-
2 TABLE OF CONTENTS PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Labeling 118 Table of Contents 119 Purpose and Objectives 120 How HSN Uses Labeling 121 Item Labeling 122 Expiry Product Requirements 126 Expiry Product Requirements: Single Unit Labeling 127 Limited Quantity (ORM-D) Labeling Requirements 129 Master Carton Labeling 130 Palletized Load Labeling
3 PURPOSE & OBJECTIVES PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Our Purpose Labeling is all about identification, speed and accuracy. All touch points in HSN s Supply Chain need to be able to easily identify a product or sample and determine its contents, its purpose and its intended destination in lightning time. Labeling is critical to streamlining all components of fulfillment and sample processing, storage and distribution and helps HSN ensure the entire Supply Chain runs smoothly. More importantly, it also helps us to ensure that the right products make it to HSNtv, HSN.com and our customer on time, every time. How This Section is Set Up This section is designed to guide you through the requirements for labeling your individual product and the shipping container to ensure effective identification, distribution and delivery of every item. There are five sections, each detailing the specific label and HSN s standards and what you can do to meet those effectively: How HSN uses labeling: process overview of labeling Item labeling: what each individual product must display Expiry product labeling: how to let us know when a product has reached the end of its shelf life Master carton labeling: what each master carton must communicate Palletized Load Labeling: what each palletized load must communicate Acquiring Labels HSN has no preference as to where labels are produced. If you are capable of doing them within your own company, or have a preferred labeling company, that is acceptable as long as they are compliant with our standards. Two companies that are familiar with our standards are listed below. Label It U.S Gandy Blvd. St. Petersburg, FL LABEL-EZ ( ) Label It Hong Kong* Att: Kitty Cheung 011 (852) or- 011 (852) *CAUTION: Label It is the only authorized foreign label provider, beware of contact from "Label Interactive Technologies" and or "ID Tech Pro" 15B, Granville House/41C, Granville Road /TST Kowloon, Hong Kong Please Note The requirements outlined in this section only apply to items shipped directly to HSN Fulfillment Centers. Drop Ship Fulfillment items are exempt from these requirements. Please see the Drop Ship section of this manual for guidelines relevant to Drop Ship orders. Key Contacts for Labeling Questions Frank Ruotolo Sr. Manager QA Operations frank.ruotolo@hsn.net Diane Houghton Coordinator Partner Shipping Compliance houghtond@hsn.net Vendor Compliance vendorcompliance2@hsn.net -120-
4 HOW HSN USES LABELING PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING How HSN Uses Labeling Whether it s one of the three different types of samples described in the Product Samples section of this manual or the actual item shipped to the customer, your product goes through a surprising number of hands before it appears on HSNtv, is posted to HSN.com or is delivered to the customer. We track thousands of packages for just one 24 hour cycle of programming. That means that hundreds of people at HSN rely on our standardized system of labeling to receive, manage, store and control your products. The Showroom Sample alone can pass through five different receiving points before the studio cameras even hit the item. Accurate, standardized labeling makes this all possible. Here are just a few of the people who rely on the labeling system: Showroom personnel use labels to distribute samples to imaging, backstage and the live show Our customer relies on the labels to determine expiry dates The Labeling Process Because we need to know exact quantities, contents and time factors associated with each package without having the luxury or the time to open that package, HSN s standardized labeling system is designed to cover every level of the process. There are three major components to our system: Item labeling tracking and identification information on the individual product Expiry product requirements exact dates when the product is past its usability Master carton labeling tracking and identification information on packages that contain multiple and (if applicable) assorted items -121-
5 ITEM LABELING Overview The benefits of accurate, standardized item labeling illustrates the true power of information. With the correct item labeling: Partners benefit from reduced stoppages and chargebacks as well as accurate inventory leads to increased sales HSN can rapidly track merchandise, evaluate samples and prevent costly delays and unnecessary exception processing And, most importantly, our customer can trust that she will receive the right product at the right time, with all of the information she needs to enjoy her purchase To properly define the requirements for accurate item labeling, we must first define exactly what is covered by the term item labeling. For the purpose of this subsection, item labeling refers to the information included on the item itself (selling unit) or the primary packaging surrounding the item. UPC and HSN Symbology for Item Labeling Having to label merchandise at HSN s point of receipt would be detrimental to HSN, our Partners and our customers. Doing so would severely hinder our ability to effectively identify and check in products in a timely manner ultimately causing delays throughout the entire system and resulting in the potential for unacceptable fulfillment errors or costly exception processing. Therefore, all items shipped to HSN must arrive to us pre-labeled in both human-readable and bar code format with either: a. Your Partner-assigned UPC code (this is our preferred method), or b. A pre-assigned HSN item number provided by your Buyer on your Purchase Order (PO) OR ABC Partner UPC code HSN item number Please Remember With ALL labels, HSN Fulfillment Centers will NOT be able to scan the bar codes if they contain any spaces, dashes or extra characters. The bar code MUST scan as one continuous string of bar-coded numbers/alpha characters inclusive of the item and associated variants
6 ITEM LABELING (CONT D) PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Item Bar Code Specifications Using a standardized bar code format ensures our scanners process the correct information in the most effective way. HSN uses UCC-128 Subset A symbology, a very common bar code format that accommodates both numbers and letters in the sequence. This allows HSN to easily sort and track items with variants (multiple style, color, and/or size choices within the same HSN item number). Each variant is identified by a set of three alpha numeric characters following the HSN item number. UCC-128 Subset A symbology helps us accommodate for the alpha-numeric formatting of these types of items. For example, if HSN item number came in the colors Purple/Red, Moonlight and Parsley: Purple/Red would be S5R Moonlight would be S1W Parsley would be EEA To ensure effective labeling of items and their variants: 1. You may use your own UPC code in any acceptable UPC symbology, as long as it contains human-readable information on the label (note: this is HSN s preferred method) 2. You may use the HSN item and associated variants as provided on your PO 3. If using the HSN item number the bar code itself must be one continuous string of alpha/numeric characters containing the item and all associated variants. No dashes or spaces can be in the code. While Creating Labels for Your Items, Please Remember Some items require special labels to indicate expiry information. If your product qualifies as one of these items, then the following guidelines are applicable: Single item: primary package (example: the bottle) 1. Must be marked with the correct expiration date in human-readable format (mm/dd/yy) 2. Must be marked with the batch or lot number in human-readable format Single item: secondary package (example: the box that holds the bottle) 1. Must include a human-readable expiration date (mm/dd/yy) 2. Expiry label must be marked either directly on the existing bar code label or as a separate label in the proximity of the existing bar code label Please see the Expiry Product Requirements pages in this section of the manual for a complete listing of items that qualify, as well as additional requirements concerning expiry items
7 ITEM LABELING (CONT D) PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Item Labeling Placement Placement of item labels vary according to product category. Items packaged in a self-shipper (one selling unit per box) require a label on the exterior of the box only, not the individual item inside. The following diagrams illustrate the proper placement of labels as determined for each category: ABC health and beauty bottom of the box or item place as to not obstruct ingredients or instructions apparel folded soft goods lower right, front corner of polybag ABC ABC apparel hanging soft goods upper right, front corner of polybag -124-
8 ITEM LABELING (CONT D) PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING footwear lower right, front corner of box ABC home hard goods lower right, front corner of box ABC home soft goods lower right, front corner ABC Jewelry Sleeve must be labeled. If sleeve not required, bottom of box must be labeled. Both are preferred ABC -125-
9 EXPIRY PRODUCT REQUIREMENTS Overview Some of your products may be marked with expiration dates due to the established shelf life of the product. These products must comply with HSN s expiry labeling requirements. Ensuring that every such product has the most accurate and visible expiry labeling at every level of packaging protects our customer from any potential risks, assists HSN in tracking the shelf life of an item and helps you prevent loss of inventory. Such labeling may include: expiration dates, best by dates, sell by dates or use by dates. How io Determine If Your Product Requires Expiry Labeling You re product will require expiry labeling only if it meets one or more of the following criteria: If mandated by regulatory agency (FDA, EPA, EU) If you are currently and voluntarily marking the product with a date (e.g. European cosmetic products) If the product has a shelf life of less than 2 years before opening If the product is a pet or human food, nutritional supplement, over-the-counter drug (Acne, SPF, etc.) or consumable medical device (cholesterol test strips), live plant or plant seed Expiration dates must be presented in a commonly recognized date format on the product container. Acceptable date formats are MM/YY, MM/YYYY, MM/DD/YY, and MM/DD/YYYY. Below is an example of an immediate product container marked with an expiration date that would require compliance with HSN s Expiry Product Labeling. Please note that typical beauty products such as hair care, skin care and color cosmetics do not need to follow HSN s Expiry Product Labeling Requirements unless they meet one (or more) of the above criteria. How and Where to Include Expiry Labeling HSN requires that accurate and matching expiry date information span across all labeling of the product (product container, secondary package, selling unit carton, master carton). The below information lists several possible product scenarios and the outlines the appropriate method of expiry labeling for each of those scenarios. Please note that the labeling requirements noted below assume that one or more of the immediate product containers present in your item are marked as in the above image
10 EXPIRY PRODUCT REQUIREMENTS: SINGLE UNIT LABELING Selling Unit Labeling A selling unit is defined as what the customer is purchasing from HSN. This selling unit could be a single item (tube of sunscreen) or a kit configuration (3pc skincare set). The labeling of a selling unit is typically where the UPC label or HSN item barcode label would be seen or affixed. Once you have determined that your item requires expiry labeling based upon the presence of expiry dating on the immediate product container, you must ensure that the selling unit has the same expiry labeling information clearly visible. Single Items When the selling unit of a single item has the expiry dating clearly marked during the manufacturing process, you are not required to add any additional labeling to the selling unit if the following criteria are met: 1. The date format used is one of the following: MM/YY, MM/YYYY, MM/DD/YY, or MM/DD/YYYY 2. The date is clearly visible on the outer packaging of the selling unit. When the selling unit of an item does not have the expiry date clearly visible, expiry labeling must be applied to the selling unit using either a separate label or as a human readable expiry date added to the HSN item barcode label. Regardless of how expiry dating is marked on the selling units, HSN requires that the date format used when adding expiry labels to the product is MM/DD/YYYY. When applying labeling to the selling unit, please ensure that it does not cover any pertinent label information (ingredients, product name, net contents, etc.). When the selling units are packed into master cartons for shipment to HSN, the master cartons must also be labeled in accordance with the expiry labeling policy. Master carton expiry labeling is addressed in a separate section below
11 EXPIRY PRODUCT REQUIREMENTS: SINGLE UNIT LABELING (CONT D) Multi-Component Kits Kits present their own set of unique challenges with respect to proper expiry labeling. Kit configurations may contain multiple expiry components with differing expiry dates. Each kit selling unit must be labeled with only one expiry date, and that date MUST be the EARLIEST expiry date of the components within the kit. When determining the appropriate expiry labeling for kit items, the following steps should be conducted: 1. Identify the component(s) within the kit that have expiry dating on the immediate product container. 2. Determine the component within the kit that has the earliest expiry date 3. This earliest expiry date will be used to label the selling unit and master carton Expiry labeling must be applied to the kit selling unit using either a separate label or as a human readable expiry date added to the HSN item barcode label. Regardless of how expiry dating is marked on the kit selling units, HSN requires that the date format used when adding expiry labels to the product is MM/DD/YYYY. When the kit item selling units are packed into master cartons for shipment to HSN, the master cartons must also be labeled in accordance with the expiry labeling policy. Master carton expiry labeling is addressed in in the next sub-section
12 LIMITED QUANTITY HAZMAT (ORM-D) LABELING REQUIREMENTS Overview All products meeting the definition of a hazardous material or consumer commodity ORM-D material (see 49 CFR ) must be packaged and labeled in compliance with US DOT requirements. It is the responsibility of the manufacturer/distributor of a product to fully understand the regulations for hazardous materials packaging, labeling and shipping. Typical limited quantity hazmat/consumer commodity ORM-D items sold by HSN include alcoholbased perfumes and beauty products, hair sprays and mousses, and some chemical cleaning products. Limited quantity hazmat/consumer commodity ORM-D products are restricted to ground transportation only to customers in the lower 48 states. In an attempt to harmonize and align with international standards, the DOT has amended the 49CFR regulations regarding the ORM-D classification. Effective January 19, 2011, with the publication of the HM-215K final rule, the hazard class of ORM-D is being eliminated. Those materials may still be shipped classified as a limited quantity (ltd qty). In conjunction with ORM-D hazard class elimination in HM-215K, limited quantity ground shipments will no longer require shipping papers when prepared under the new rule. This includes those materials previously classed as ltd qty that required shipping papers via ground transport. There is a transition period for shippers to comply with the new classification, marking and labeling requirements. The new Limited Quantity Mark should be used for all qualified products/packages. Partners may continue to use the current Consumer Commodity ORM-D markings on qualified packages restricted to ground transportation until December 31, 2020 How to Determine if Your Product Requires Limited Quantity Labeling If classified as consumer commodity limited quantity hazmat/orm-d material, a product will require specific packaging and labeling elements. Typically, items classified as limited quantity hazmat/consumer commodity ORM-D are identified by HSN QA if they meet any of the following criteria: The product is flammable and has a closed cup flash point of less than 141 F. The transportation information section of the product Safety Data Sheet (SDS) indicates that the product is part of the Consumer Commodity ORM-D hazard class. The product has contents under pressure (aerosol can). The marking of a package as Limited Quantity (ORM-D) is the certification by the Partner offering the packaging for transportation to HSN or its customers that the material is properly described, classed, packaged, marked and labeled (when appropriate) and in proper condition for transportation according to the applicable regulations of 49CFR. You are required to submit a complete and accurate SDS to HSN QA for every item containing a flammable alcohol ingredient (SD Alcohol, Ethanol, etc), or packaged in a pressurized container (aerosols, foaming mousse). In addition, SDS are required for ALL chemical cleaning products. Examples of the proper MSDS format can be found at this link: important note: You must ensure that the product labeling includes warning and/or caution statements according to regulations and HSN requirements
13 LIMITED QUANTITY HAZMAT (ORM-D) LABELING REQUIREMENTS (CONT D) Consumer Commodity ORM-D Mark (can only be used until 1/1/2020) The existing Consumer Commodity ORM-D Mark has been phased out and replaced by a new Limited Quantity Mark. Partners are encouraged to begin implementation of the new Limited Quantity Mark as soon as practical, but may continue to use the existing mark for limited quantity packages containing a consumer commodity as defined in 171.8, UNTIL January 1, 2020 If using this mark, it must be present on at least one side or end of the package New Limited Quantity Mark (effective 1/1/2014) Limited Quantity marking must be durable, legible and of a size relative to the package that is readily visible Marking must be applied on at least one side or one end of outer packaging Width of the border forming the square on point must be at least 2mm Minimum dimension of each side must be 100mm; unless package size requires a reduced size no less than 50mm Top and bottom portions must be black and center white OR suitable contrasting background UN Number not required for ground shipments Orientation Markings All Limited Quantity packages must include markings to clearly identify the proper orientation of the package for shipping and storage Additional Labeling Requirements The shipping configuration of an item will determine where the required limited quantity labeling must be affixed. The key determination is the presence or absence of product master cartons. A partner shipping product to HSN is REQUIRED to mark the outermost carton(s) of products. Shipping Configuration Selling unit labeling required? Master carton labeling required? Individual corrugate self-shipper cartons WITHOUT master cartons YES NA Individual corrugate self-shipper cartons WITH master cartons YES YES Retail packaging WITH master cartons *Retail packaging includes chipboard / paperboard cartons, jiffy mailers, bubble bags, polybags, etc. NO YES -130-
14 LIMITED QUANTITY HAZMAT (ORM-D) LABELING REQUIREMENTS (CONT D) Packaging Hazmat Limited Quantity (ORM-D) Products It is important to remember that Limited Quantity products are hazardous materials, and must be packaged properly to withstand the distribution environment without damage or leakage. It is very important that the immediate product containers employ effective leak protection methods. Foil induction and full body shrink wrap are two of the most effective methods of preventing leakage. Each individual product container MUST be securely packed, secured and cushioned to prevent breakage, leakage and movement during conditions normally incident in transportation. The packaging must have appropriate cushioning and absorbent material as part of the product packaging and packing material. The absorbent material must be capable of absorbing leakage of the product, if it should occur. Items packed in non-absorbent packaging (polybag, bubble bag in a polybag, etc.), you must incorporate absorbency within the package via a pad. Please see the Quality Assurance section of the HSN Partner Supply Chain Requirements Manual for additional details on protective packaging
15 MASTER CARTON LABELING PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Label Format and Symbology Just like item labeling, using correct master carton labeling helps everyone ensure that our customer will receive exactly what she ordered at the exact time she is expecting it and that the only surprises are good surprises. Because HSN uses alphanumeric combinations to denote variant styles, we require UCC-128 Subset A symbology based on UCC specifications for all of our master carton labeling bar codes. When using UPC s, the barcodes require UPCA/EAN13 symbology. Additionally, all master carton labels must contain the following HSN-required data elements: 1. HSN item number or approved UPC Code (in human-readable and bar code formats; use larger font than other barcode labels). 2. HSN PO number - (in human-readable and bar code formats). 3. Partner name, address and identification number. 4. HSN Fulfillment Center name and address as detailed on the PO. 5. Country of origin. 6. Expiration date (if applicable) in human-readable and bar code formats - please see Expiry Product Requirements to determine whether or not your product requires expiry labeling. 7. Required ship date - (RSD taken directly from the PO). 8. Vendor part number (sometimes referred to as VPN) or SKU (Partner s style number). 9. Indicates if carton contains short quantity (last carton shipped has less than case pack quantity). If not, leave the box blank. If so, place word SHORT in box. (Note: HSN s preferred method for shipping short quantities is using a short carton as opposed to a mixed carton). 10. Cartons by shipment (shipment = final destination /the HSN Fulfillment Center detailed on the PO). 11. Total number of selling units in carton - (human-readable and bar code formats). 12. Optional SCC-Serialized Container Code HSN SKU NUMBER OF UPC CODE please remember With all master carton labels, HSN Fulfillment Centers will NOT be able to scan the bar codes if they contain any spaces, dashes or extra characters. It must be one continuous string of barcoded numbers/alpha character inclusive of the item and associated variants or other identifiers
16 MASTER CARTON LABELING (CONT D) Labeling The Master Carton When Product Contains Expiry Date Once the selling unit expiry dates have been determined, these units must be grouped by expiry date and packed in master cartons with like expiry dates. A master carton labeled with an expiry date is expected to contain only selling units labeled with that same expiry date. Mixed selling unit expiration dates within a master carton are not permitted. When labeling master cartons with the expiry date of the selling units contained therein, please note the following: 1. The label must be marked with the expiration date in both human-readable and bar code formats. 2. The human-readable date MUST be in the following format: MM/DD/YYYY. 3. Both markings (human-readable and bar code) must be in the middle zone of the UCC-128 Subset A master carton label
17 MASTER CARTON LABELING (CONT D) Mixed SKU Master Carton-exception Procedures and Labeling The primary method for shipping to HSN remains the same (standard carton quantities by single SKU, style/color/size). We will accommodate a mixed SKU carton exception for the following two reasons only: 1. POs with less than 150 units and less than 6 units ordered for a SKU. 2. POs with quantities ordered that result in last carton for a SKU being less than the standard master carton quantity and less than 6 units per sku. Skus containing 6 or more units must be placed in a full sku SHORT carton. *(Note: Mixed sku exception does not apply to jewelry). Mixed SKU Master Carton Specifications To help us easily identify and manage master cartons with mixed SKUs and to avoid exception processing resulting in charge backs, the following specifications must be closely adhered to: 1. No more than six different SKUs and/or variants are permitted in a mixed SKU master carton. 2. Single SKUs are to be grouped/banded together within the master carton (ex: all size 8s together, all size 10s together, etc.). 3. Mixed SKU master cartons cannot contain SKUs from different POs (see label below). 4. Mixed SKU master cartons must be clearly labeled as MIXED with SKU and quantity detail of what the carton contains (see label below). The below template is an example of the correct way to label mixed SKU master cartons:
18 MASTER CARTON LABELING (CONT D) Label Placement, Readability and Accuracy Affixing the label on the correct location on the carton is very important. HSN Fulfillment Teams rely on standardized label placement to ensure the most efficient check-in process and prevent any unnecessary delays in making the product available for sale to the customer. Here are some important guidelines to remember when placing the label on the carton: 1. Be sure the label is placed so that the bar code is scannable (do not place on a seam or corner of the carton). 2. Do not cover product information (such as special handling instructions or descriptions) with the UCC-128 Subset A label when the master carton serves as a self-shipper. 3. Do not cover the label with tape of any kind. Even clear tape creates a reflection that can prevent the label from scanning. 4. If the carton is less than 4" high, place the label on the top of the carton. Please also ensure that all information on the label is accurate and up-to-date. Typos and outdated information can cause serious delays and may result in exception processing leading to chargebacks. Additional Label for Import Showroom Samples In addition to the required master carton labeling, special labeling must also be placed on master cartons that contain Showroom Samples for Import POs (described in the Product Samples section of this manual). Please use the following format as a template: The label should be: 1. 8-½" x 11" 2. Red with bold black lettering 3. Placed above or next to the master carton label 4. Contain PO and carton information HSN Showroom Samples PO#: XXXXXX Carton #: XX of XX HSN Showroom Samples PO#: XXXXXX Carton #: XX of XX -135-
19 PALLETIZED LOAD LABELING PARTNER SUPPLY CHAIN REQUIREMENTS MANUAL: LABELING Labeling Pallets Pallet labels are required for shipments that are made up of products packaged in re-shippers, contain mixed skus or contain mixed POs. If your pallet requires a label, after palletizing your shipment, affix the correct label (options detailed below) to the palletized load to ensure that the shipment can be quickly identified and processed. Labels must be affixed to a minimum of two sides on each palletized load, the same format and information, and employ the same UCC-128 Subset used for master cartons. Products Packaged in Re-shipper Cartons Mixed sku Pallets Mixed PO Pallets -136-
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