209: How To Do Business with NORDSTROM Desiree Clayton Kelli Field-Darragh Debbie Nyquist June 4, 2015
AGENDA 2015 INITIATIVES EDI/COMPLIANCE FLOOR READY RFID ATTRIBUTES/IMAGES AP BEST PRACTICES RESOURCES 2
2015 INITIATIVES Drop Ship One Nordstrom Canada 3
NORDSTROM DROP SHIP Benefits Allows for broader assortment online which results in added volume, exposure and margin growth Drop Ship New Supplier Expectations: Start with 10 styles or less at go-live 98% fill rate 97% requirement of meeting SLA 4-6 week monitoring period before additional styles added If expectations not met: Removed from drop ship program Decrease of online assortment 4
NORDSTROM DROP SHIP Pre-qualification conference call: Ship within 24 business hours Able to meet all EDI requirements Inventory frequency Plain box with clear tape No sale circulars/catalogs Test EDI Done in-house by Nordstrom personnel Specific scenarios Packing slip approved Open RA# 5
ONE NORDSTROM BRICK & MORTAR ONLINE FULL PRICE.com OFF PRICE.com
CANADA STORES 1 CALGARY 2 OTTAWA 3 VANCOUVER 4 & 5 TORONTO 6 ETOBICOKE DC - ETOBICOKE 7
EDI Strategy, Compliance and Support Canada 8
NORDSTROM EDI FLS/RACK/N.DIRECT U.S. & Puerto Rico Required 810 Invoice 832 UPC Catalog (GXS or Intertrade) 850 Purchase Order 856 ASN with related GS1 label 997 Functional Acknowledgment Optional 180 CDIF 820 Remittance Advice 852 Product Activity 855 Reverse PO 860 PO Change recommended 180 ZZ / NORDTIB 810/820/850/855/860 01 / 007942915 856 12 / 2062336664 852 12 / 2062336352 EDI.Group@Nordstrom.com NPG U.S. & Puerto Rico Required 810 Invoice 832 UPC Catalog (GXS or Intertrade) 850 Purchase Order 850FR or 860 full replace/change 856 ASN with related GS1 label 997 Functional Acknowledgment Optional 820 Remittance Advice 852 Product Activity 810/850/850FR/860 ZZ / NORDNPG 820 01 / 007942915 856 ZZ / NORNPGA 852 12 / 2062336352 NPGCompliance@Nordstrom.com DROP SHIP Required 810 Invoice 832 UPC Catalog (GXS or Intertrade) 850 Purchase Order 846 Inventory Advice 856 ASN with related GS1 label 870 Cancel 997 Functional Acknowledgment *FLS/Rack/N.Direct required Optional 820 Remittance Advice 810/850/856/870/997 ZZ JWN DSD 846 ZZ / JWN DSD846 820 01 / 007942915 Ndirdsops@nordstrom.com 9
NORDSTROM EDI CANADA FLS Rack coming soon Required 810 Invoice 832 UPC Catalog (GXS or Intertrade) 850 Purchase Order 856 ASN with related GS1 label 997 Functional Acknowledgment CANADA NPG Required 810 Invoice 832 UPC Catalog (GXS or Intertrade) 850 Purchase Order 850FR or 860 full replace/change 856 ASN with related GS1 label 997 Functional Acknowledgment HAUTELOOK Separate entity from Nordstrom at this time. EDI@hautelook.com Optional 180 CDIF 820 Remittance Advice 850FR full replacement 860 PO Change Optional 820 Remittance Advice 180 ZZ / NORDJWN 810/850/850FR/860 ZZ / NORDJWN 856 ZZ / NORDJWNASN 820 01 / 007942915 EDI.Group@Nordstrom.com 810/850/850FR/860 ZZ / NORDINTL 856 ZZ / NORDJWNASN 820 01 / 007942915 NPGCompliance@Nordstrom.com 10
NORDSTROM CANADA EDI Same requirements as U.S. few extra codes VAT included in existing SAC Able to offer 850FR Different EDI IDs Website www.nordstromsuppliercanada.com Supplier Hotline 1-877-444-1313 Option 1 - Floor Ready Option 2 - Compliance Option 3 - EDI Technical Option 4 - Transportation Option 5 - Accounts Payable 11
OUR EDI STRATEGY The use of industry-standard compliance/edi technologies and guidelines allow us to expedite merchandise through the supply chain. The implementation technologies and guidelines allows us to continue to build successful, mutually beneficial partnerships with our suppliers. This Ensures: An expedited flow from our partners to the selling floor and website Better management of inventories Increased sales, enhanced customer service Your partnership is critical in making this technology work successfully! 12
EDI/COMPLIANCE AT NORDSTROM (FLS/RACK) Supplier relationships are a valuable part of Nordstrom s business. We are dedicated to ensuring that our supplier requirements are in agreement with current industry direction and standards. We support industry standard technologies that utilize: Universal Product Code (UPC/EAN/GTIN) GS1 US/VICS Standards Electronic Data Interchange (EDI) 13
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: 852 Product Activity Date* 855 Inbound Purchase Order (per Buyer set up only)* 860 PO Change* * Version 4010VICS 14
FLOOR READY Nordstrom Direct (EC/FC & Cedar Rapids) Ticketing/Packaging Requirements Hangers ASN (Advance Ship Notice) 15
NDIRECT REQUIREMENTS Customer Order Fulfillment Business Needs Specified carton requirements (refer to www.nordstrom.com Nordstrom Direct Manual) UPC label on sealed polybag required as well as on product Hanging vs. flat Sealed poly bag Single SKU cases Rubber banding shoe boxes 16
NDIRECT BUSINESS UNIT ENGAGEMENT Our team is fully engaged and dedicated to meet the growing needs of our online business. TECHNOLOGY We have leading WMS software and technology at our Fulfillment Center which assists in getting merchandise to our customers quickly and seamlessly. PARTNERSHIP We ask for your assistance in this by complying with our NDirect requirements, as this is a very important piece of meeting the needs of our customer in a timely and efficient manner. 17
VICS BLACK HANGER All merchandise shipped to Nordstrom that require hangers inserted must be on a VICS black hanger A complete listing of hanger guidelines can be found on our website at www.nordstromsupplier.com NDirect carries separate hanger guidelines; please use the hanging vs. flat grid in our Nordstrom Direct Manual 18
ADVANCE SHIP NOTICE (ASN) Nordstrom Full Line, Rack and NDirect all require 100% accurate ASN s 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) Is to contain its own unique sub-bill of lading number ASN is to be received by Nordstrom Prior to the shipment s arrival at the Distribution or Fulfillment Center (DC, FC or EC/FC) 19
ADVANCED SHIP NOTICE (ASN) CONTINUED UPS Nordstrom Requires one VICS 856 ASN per carton for all UPS shipments The tracking number provided by UPS must populate the sub-bill of lading field (REF*BM segment) and the PRO number field (REF*CN segment) The ASN must be transmitted and received by Nordstrom s warehouse management system prior to the shipment s arrival in the DC Please reference the EDI 856 version 4010 PDF mapping detail 20
BEST PRACTICES FOR ISSUE FREE SHIPPING If EDI version of your PO does not accurately reflect what was agreed upon between sales person and buyer contact the buying office immediately for confirmation Any changes, ask buyer to update order and retransmit via the EDI 860 Be sure to verify if the PO is shipped bulk or store packed by checking the bulk packing indicator on all orders in the REF*PGC segment Tickets/hangers are required, follow guidelines at www.nordstromsupplier.com ASN - Send as soon as shipment leaves your dock, required to be received at DC/FC prior to shipment arrival; required to reflect exactly what is in each carton 21
RFID EXPLORING WHAT S POSSIBLE Proof of Concept phase in off price Taking a test and learn approach Doing just in time invention in a lot of cases Key Learnings Tagging is hard! tagging in the store isn t scalable Maintaining tagged inventory integrity takes a lot of work It takes a Village It takes a consortium of technology providers as many specialize Hanging the business case on inventory integrity is not enough Developing consensus across all business stakeholders can be challenging 22
ATTRIBUTES AND IMAGES Core Attributes needed to issue PO First: New or Repeat item? VPN (Product), VPN Description (Product Description), UPC, Color Description, NRF Color Code, Size Description (size 1 and size 2), Unit Cost Extended Attributes (ISU Form) Required to publish online or to import to Canada or Puerto Rico (HTS, Country of Sourcing) Retailer Attribute Requirements Matrix: 23
ATTRIBUTES AND IMAGES Images Nordstrom Roadmap Standards Committee Style Guides Compliance Timing? 24
ACCOUNTS PAYABLE BEST PRACTICES PURCHASE ORDER Verify cost and terms on PO prior to shipping Notify the buying office if discrepancies are found Request the buyer update and retransmit the changes 25
ACCOUNTS PAYABLE BEST PRACTICES INVOICING Invoice on-time Invoice accurately Follow invoicing requirements One invoice per shipment, per PO per destination 26
ACCOUNTS PAYABLE INQUIRES Where to find supporting Documentation Planned/Negotiated Deductions Preventable Deductions Request copy of agreement first from your Sales, Marketing or Customer Service teams If unavailable internally, contact the appropriate department noted on our Supplier Resources and Contacts document Pricing and discount details can be found on the AP Vendor Inquiry website, search by invoice or PO Details for non-compliance and freight chargebacks are emailed weekly (separately). Can be sent to multiple addresses or an attribute to ensure the right teams are receiving the information Additional Details for EDI/Photo/Floor Ready can be provided upon request by replying to the weekly email PO violations and shortage details can be found on the AP Vendor Inquiry site, search by invoice or PO 27
EDI SOLUTION SUPPORT There are several ways we can assist in your efforts to become EDI Compliant: List of 3rd party providers Service Bureau selection checklist Testing invitation (through GXS) General Guidelines Catalog Provider (GXS or InterTrade) 28
ONLINE RESOURCES portal.nordstrom.com www.nordstromsupplier.com Three applications on our portal AP Vendor Inquiry access invoice/payment status and chargeback details (free) Supplier Toolkit sales and inventory reporting (small annual subscription fee per supplier #) NOVS Nordstrom Order Verification System, confirms PO validity, status and ship window (free) Primary Resource for PO terms and conditions Compliance manual and Routing Guide EDI requirements and mapping Expense offset fees Manuals specific to FLS/Rack, NDirect, NPG News flash and summary of monthly updates Links to store addresses, contact information and portal.nordstrom.com User ID and Password required User Guides for AP Vendor Inquiry and Supplier Toolkit are on site home page User Guide for NOVS, email Logistics at traffic@nordstrom.com Open site no login needed All Floor Ready and EDI requirements as well as other key resources Details of manual changes outlined in summary page for your convenience 29
MAPPING AP VENDOR INQUIRY SITE TO REMIT To help identify specific documents on our site and map them to your remittance advice, use the Supplier Resources and Contacts document to help reconcile your account. If you have questions, this resource provides the correct contact and what information is needed for us to research. 30
CONTACT US Floor Ready Management for questions regarding Hangers, Tickets, Packaging, Cartons/Carton Labels and ASNs frm@nordstrom.com 1-877-444-1313 (option 1) Merch Info Compliance For questions regarding EDI Setup, Missing 850 PO, FA research and general compliance questions cmio.compliance@nordstrom.com 1-877-444-1313 (option 2) Merch Info Chargebacks For information on EDI and Floor Ready non-compliance chargebacks cmio.chargebacks@nordstrom.com EDI Technical Support - Technical Data Transmission questions and EDI mapping. For initial EDI Setups, contact CMIO Compliance edi.group@nordstrom.com 1-877-444-1313 (option 3) Transportation (Freight) For Routing Guide questions or for information on Freight Agreements and Chargebacks traffic@nordstrom.com 1-877-444-1313 (option 4) Portal Access Administration For access to http://portal.nordstrom.com (Accounts Payable, Order Verification, Supplier Toolkit) web.admin@nordstrom.com Accounts Payable For questions regarding amount or timing of invoice payments, payment info, cost difference claims once initial research has been done on the AP portal site merch.ap@nordstrom.com 1-877-444-1313 (option 5) Customs Compliance For questions regarding Commercial Invoice, HTS, or NAFTA for U.S. Pick-Up or when Nordstrom is Importer customscompliance@nordstrom.com 1-877-444-1313 (option 6) Supplier Toolkit Administration For access to Nordstrom sales and stock on hand data supplier.reports@nordstrom.com 31