E-COMMERCE DROP SHIP GUIDELINES

Transcription

1 E-COMMERCE DROP SHIP GUIDELINES FEBRUARY 2016

2 TABLE OF CONTENTS BASIC VENDOR REQUIREMENTS... 2 SETUP OVERVIEW... 2 SHIPPING... 3 TERMS... 4 ALERTS... 5 INVENTORY MANAGEMENT... 6 INVOICING... 6 RETURN POLICY ON HARD GOODS... 7 APPENDIX... 8 SAKS E-COMMERCE DROP-SHIP PROGRAM 1

3 BASIC VENDOR REQUIREMENTS Our drop ship program utilizes a third party partner, VendorNet, for managing drop ship orders. Our partner will provide functionality such as transmission of order data, ability to generate packing slips and shipping labels, shipment confirmation and invoicing capabilities. VendorNet offers browser-based (carrier integrated) or system-tosystem (EDI) transmission options. Saks preferred carrier is FedEx and utilizes an integrated carrier connection with VendorNet. All orders must ship within a predetermined timeframe of transmission to VendorNet (excluding weekends and Holidays). Personalized items or pre-approved product are subject to a timeframe agreed upon by the vendor and Saks Fifth Avenue. Below is an outline of the basic requirements for all vendors: Product must be Landed Duty Paid by vendor Coordinate samples or images and copy for buying office A dedicated resource to monitor and fulfill orders Daily FedEx pickup Use of unbranded shipping box (supplied by vendor) Orders must ship within predetermined timeframe negotiated between vendor and merchants Saks Fifth Avenue approved packing slip must be used Daily inventory feeds Accept customer returns One-time VendorNet training fee SETUP OVERVIEW The vendor onboarding process can take up to 13 weeks, depending on the setup option selected by the vendor (Browser or EDI). The process begins upon completion of drop ship negotiations between the merchant and vendor. The steps are listed below: 1. Merchant and Vendor select products for Drop Ship program 2. Merchants and Vendor fill out vendor set up forms and submit to Vendor Relations and AP for approval 3. Vendor signs VendorNet agreement and submits the VendorNet technical requirement questionnaire 4. VendorNet coordinates training and onboarding with vendor Note: For system-to-system vendors (EDI option), VendorNet will send a test PO so vendor can return expected inbound documents (856 ASN, 810 Invoice, 846 Inventory) 5. Merchant sets up items in Saks systems and coordinates with vendor on sample collection/vendor images for web 6. Saks Fifth Avenue provides Vendor with shipping accounts and packing slip labels 7. VendorNet signs off once training and/or testing is complete 8. Vendor turns on inventory for Go Live 9. Merchant coordinates publishing date Browser Based (Carrier Integrated) For the Browser Based method, VendorNet will provide functionality such as the ability to retrieve order data, generate packing slips and shipping labels, shipment confirmation and invoicing capabilities via the VendorNet portal. To access the portal, you must meet the following requirements: 16 MB Memory, 100 MD disc Printer access Windows XP or higher Internet Explorer 8.0 or Firefox account SAKS E-COMMERCE DROP-SHIP PROGRAM 2

4 EDI (System-to-System) For the EDI System-To-System method, the vendor will receive EDI transmissions from VendorNet. This will require testing and can take up to 13 weeks. VendorNet can transmit files on any regular schedule as required by vendor and will retrieve files throughout the day on a periodic batch basis. VendorNet will transmit new orders to vendor as they are provided to VendorNet from Saks Fifth Avenue customers. EDI file transmissions can be transmitted via FTP or through private interconnect with a VAN, provided that there are no additional fees incurred by Saks Fifth Avenue or VendorNet for such connection. Data Direction Preferred Method Timing Order From VendorNet 850 EDI Purchase Orders Every 4 hours Inventory To VendorNet 846 EDI Inventory Daily by 1 am Shipment Notification To VendorNet 856 EDI ASN Daily with shipments Invoice To VendorNet 810 EDI Invoice Daily Cancellations To VendorNet 870 EDI Inbound Order Status Daily SHIPPING Browser Based (Carrier Integrated) A browser based (carrier integrated) vendor can access a HTML file that contains one prepaid FedEx shipping label with an assigned tracking number and a Saks Fifth Avenue Shipping Summary (packing slip) to be printed per order in the VendorNet portal. All Saks.com drop ship orders must be shipped using a system generated label from VendorNet portal in one box. Place a comment on the order in VendorNet communicating the issue and or call VendorNet account manager if you are unable to use the label for any of the following reasons: a) It does not have the accurate ship method (i.e. overnight / 2 day / 3 day) b) Order must be split into multiple shipments c) There is a weight error (you will receive a message that no orders qualify when you attempt to print) d) Other assorted reasons Alternate tracking numbers utilized need to be keyed into the shipping batch when order is in waiting to ship status and vendor must notify Saks Fifth Avenue and VendorNet account manager of the change. Adding new tracking information into the comments field will not yield successful results for processing the order through Saks systems and will cause delays in payment. Saks Fifth Avenue is not responsible for reimbursement on freight charges on orders shipped with alternate shipping methods for the aforementioned instances. Browser Based (Carrier Integrated) and EDI (System-to-System) FedEx Label: For browser based vendors: This is page 1 of the HTML file generated from VendorNet and is ready to print. The FedEx label should be attached to the outside of the shipping carton utilizing clear packaging tape. The customer return label (located on the bottom portion of FedEx label) should be left intact and included with the packing slip. Shipping Summary, Policy Page and Personalization Details: Vendor is required to use Saks Fifth Avenue approved packing slip. Vendor can log onto the VendorNet portal to print packing slip and shipping labels or you may request to receive the packing slip and shipping label via . The packing slip should be left fully intact and must be included inside all shipments. An additional Policies page will print with every order. This page must be included with every order. SAKS E-COMMERCE DROP-SHIP PROGRAM 3

5 Shipping Summary, Policy Page and Personalization Details continued If a personalized item is on the order, a Personalization Details page will be included. This page is to be used for vendor reference only and should be omitted from the shipment. Please see Sample Label, Summary and Policy pages examples. Packaging Requirements Vendor must supply and ship merchandise in a new, plain corrugated box. The box cannot contain vendor name, logo, promotional or marketing material from the vendor. An image reference of the box must be approved by Saks Fifth Avenue prior to implementation. Product must be packaged sufficiently to prevent damage during shipping. Merchandise prepackaged in a shipment-ready box (i.e. home merchandise) does not require repackaging. In this case, the customer invoice should be placed on the outside of the shipment-ready box. Remaining packing slip materials (i.e. summary, return label etc.) Additional Packing Materials Do not include any additional packing slips, collateral or marketing materials in the package. Product information, warranties, cooking instructions, etc. are acceptable. The aforementioned packing requirements are mandatory and must be adhered to at all times. Customer Returns and Exchanges Each package must contain a return label for customer use for returns to Saks Fifth Avenue. This label is inclusive of the packing slip material provided in the VendorNet portal. All online customer returns are directed to the Saks Fifth Avenue Fulfillment Center. All in-store customer returns are accepted as per our return policy. Instructions are provided to each customer on the Saks Fifth Avenue packing slip as well as on Saks.com. All customer exchange requests will be processed as two transactions: 1. Return processed in the Saks Fifth Avenue Fulfillment Center crediting the client 2. A new order is placed on behalf of the customer. The exchange order will be processed as a new order In the event a shipment is ship completed but undeliverable to customer, the package must be sent to Saks Fifth Avenue Fulfillment Center to process the package as a customer return. The Saks Fifth Avenue Fulfillment Center address is: SAKS FIFTH AVENUE 1 WALDEN BOOKS DRIVE LAVERGNE, TN TERMS All agreement terms (payment, shipping method, lead days, etc.) must be predetermined prior to entering the Drop Ship Program. Any change to terms of the drop ship agreement between Saks Fifth Avenue and the vendor must be reviewed 60 days prior to implementation taking effect. The customer to whom the merchandise is to be drop shipped is a customer of Saks Fifth Avenue. Under no circumstance will Saks Fifth Avenue be liable to the vendor for any amount in excess of the purchase price set out in a purchase order. Saks Fifth Avenue will not be liable for any incidental, special, exemplary or consequential damages, whether based upon theories of contract, or otherwise, arising out of or relating to such purchase order. SAKS E-COMMERCE DROP-SHIP PROGRAM 4

6 ALERTS Alerts via automated will be sent to vendor for the following and must be acknowledged in within two business days: Delinquent Waiting to Ship: items have not shipped within the predetermined timeframe after the order was submitted, excluding weekends Delinquent Waiting to Print: orders have not been printed to be processed and shipped within the predetermined timeframe after the order was submitted, excluding weekends Delinquent Comment Hold: an order has been in hold status for 48+ hours without being released Order: an order has been placed Import: an order has been imported into VendorNet portal Cancel: an order has been cancelled RetComHold (Comment Hold): the retailer (SAKS) has placed a comment on an order and it is now in hold status, vendor must respond to the comments placed on the order EstShip: Saks has updated the Estimate Ship Date (per the request of the vendor or the consumer) ORDER FULFILLMENT Product Quality Standards Product must be packaged sufficiently to prevent damage during shipping All products must have a unique UPC which is either on a hang tag, shoe box or packaged box Pricing: Do not include retail on the UPC ticket. Issues should be discussed with the drop ship team Must meet all agreed-upon specifications outlined in this document Items must be in saleable condition Shipment Notification Vendor using EDI as the method of data transmission must send an EDI 856 Advance Ship Notice (ASN) the same day the order ships. The 856 must contain the carrier tracking information in the BOL field. ASN is used to notify the customer that the merchandise has shipped and provides them the tracking number. It also triggers the sale charging the customer for the shipment. Shipping Requirements Vendor is the shipper of record. It is the vendor s responsibility to resolve issues regarding shipping and deliveries. Per freight terms, Saks Fifth Avenue provides one pre-paid shipping label in VendorNet per order. If the pre-paid label is not utilized, the order is subject to non-payment. Please see Shipping section for details. Expected Fulfillment Rate Vendor must maintain a 99% or higher fulfillment rate while participating in the Drop Ship Program to maintain Saks Fifth Avenue s expected service levels. If vendor is unable to maintain the expected rate, Saks Fifth Avenue will review assortment and determine if items should be removed from the site or program. Delayed Shipments VendorNet s vendor daily for orders that have not been shipped within the predetermined timeframe. If there is a shipping delay, vendor is responsible for notifying Saks Fifth Avenue and VendorNet and updating estimated ship dates. SAKS E-COMMERCE DROP-SHIP PROGRAM 5

7 Orders for any item not available due to a no inventory disposition must be cancelled if the order cannot be filled within the predetermined timeframe from the date the order is downloaded. Cancelled Orders Vendor must notify Saks Fifth Avenue within 1 business day of any item that cannot be fulfilled. If line item(s) on an order must be cancelled, a new assignment of a tracking number will be provided by VendorNet account manager upon notification. Orders fulfilled after a cancellation has been requested by consumer will result in non-payment by Saks Fifth Avenue. High vendor cancellation rate may result in removal from the Drop Ship Program. Invoices for merchandise shipped after the order has been cancelled will not be paid. Replacement of Mis-shipped Items Vendor incurs the cost of shipment for replacing a mis-shipped items. Vendor must notify Saks and VendorNet of carrier and new tracking number. Mis-shipped orders include but not limited to: Wrong merchandise was shipped to customer Incorrect quantity of items shipped to customer, without notification of cancellation Replacement of Lost Items Saks Fifth Avenue incurs the costs involved in the replacement of lost items upon vendor-provided proof of delivery. Vendor must provide tracking information as well as assist in researching and resolving carrier claims and recouping the claim dollars. INVENTORY MANAGEMENT VendorNet Inventory Manager allows vendor to send item inventory updates through routine file uploads (including EDI 846 files) or browser-based interfaces. This feature provides Saks.com customers and customer service representatives with inventory visibility. Vendor is responsible for applying safety factors (safety stock) prior to sending the inventory feed. The safety factor is used to ensure the vendor can fulfill every order against the available inventory communicated. The goal is to minimize the possibility of taking orders throughout the day on items that are out of stock resulting in order cancellations and a poor customer experience. The safety factor value should be dependent on the number of retailers sharing the inventory and the vendor s historical metrics. Inventory must be sent daily, unless otherwise agreed upon between the vendor and Saks Fifth Avenue. If vendor cannot send inventory on weekends, the safety factor value must take this into consideration. If the vendor s fulfillment center is to be closed for an extended period of time, the vendor must provide a 5 business day notice to Saks Fifth Avenue and VendorNet. INVOICING Our invoicing process is completely electronic and is triggered by the order fulfillment system. Once shipment has been confirmed on a purchase order, the invoicing function is available in the VendorNet portal. Invoicing should only be done once an order has been shipped. Failure to comply will result in non-payment. NOTE: Other invoice upload options are available via VendorNet if preferred. Invoices will not be released to our Accounts Payable department for processing until the shipment has a valid possession scan, tracking number and invoiced in VendorNet. Paper invoices will not be accepted. Please refer to the Accounts Payable contact section of our Vendor Standards manual to check on payment information. SAKS E-COMMERCE DROP-SHIP PROGRAM 6

8 RETURN POLICY ON HARD GOODS Saks.com Drop Ship vendors MUST accept returns (certain exclusions apply for Gourmet and personalized product), with no restocking fee. Merchandise will be returned directly to vendor under the following conditions: Merchandise contains manufacturer's defects Merchandise shipped after vendor acknowledgement of cancellation Wrong merchandise was shipped to customer Merchandise damaged, due to improper packaging Customer initiated return in which merchandise is of saleable condition For more information on Return to Vendor (RTV) agreements, please contact Merchant Representative. For all questions, please contact Vendor Relations at or Merchant Representative. SAKS E-COMMERCE DROP-SHIP PROGRAM 7