209: How To Do Business with NORDSTROM

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

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2015 INITIATIVES Drop Ship One Nordstrom Canada

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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 © 2015 GS1 US ALL RIGHTS RESERVED

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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# © 2015 GS1 US ALL RIGHTS RESERVED

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ONE NORDSTROM BRICK & MORTAR

FULL PRICE

OFF PRICE

ONLINE

.com

.com

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CANADA STORES 1 – CALGARY 4 & 5 – TORONTO

2 – OTTAWA 6 – ETOBICOKE

3 – VANCOUVER DC - ETOBICOKE

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EDI Strategy, Compliance and Support Canada

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NORDSTROM EDI FLS/RACK/N.DIRECT U.S. & Puerto Rico

NPG

Required 810 – Invoice 832 – UPC Catalog (GXS or Intertrade) 850 – Purchase Order 856 – ASN with related GS1‐label 997 – Functional Acknowledgment

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

DROP SHIP

U.S. & Puerto Rico 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 180 – CDIF 820 – Remittance Advice 852 – Product Activity 855 – Reverse PO 860 – PO Change – recommended

Optional 820 – Remittance Advice 852 – Product Activity

Optional 820 – Remittance Advice

180 – ZZ / NORDTIB 810/820/850/855/860 – 01 / 007942915 856 – 12 / 2062336664 852 – 12 / 2062336352 [email protected]

810/850/850FR/860 – ZZ / NORDNPG 820 – 01 / 007942915 856 – ZZ / NORNPGA 852 – 12 / 2062336352 [email protected]

810/850/856/870/997 – ZZ – JWN‐DSD 846 – ZZ / JWN‐DSD846  820 – 01 / 007942915 [email protected]

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NORDSTROM EDI CANADA ‐ FLS  Rack ‐ coming soon

CANADA NPG

HAUTELOOK

Required 810 – Invoice 832 – UPC Catalog (GXS or Intertrade) 850 – Purchase Order 856 – ASN with related GS1‐label 997 – Functional Acknowledgment

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

Separate entity from Nordstrom at this  time.

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 [email protected]

810/850/850FR/860 – ZZ / NORDINTL 856 – ZZ / NORDJWNASN 820 – 01 / 007942915

[email protected]

[email protected]

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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

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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!

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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)

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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

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FLOOR READY Nordstrom Direct (EC/FC & Cedar Rapids) Ticketing/Packaging Requirements Hangers ASN (Advance Ship Notice)

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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

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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.

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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

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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)

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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 © 2015 GS1 US ALL RIGHTS RESERVED

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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

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Any changes, ask buyer to update order and retransmit via the EDI 860

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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

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Tickets/hangers are required, follow guidelines at www.nordstromsupplier.com

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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 © 2015 GS1 US ALL RIGHTS RESERVED

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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

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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:

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ATTRIBUTES AND IMAGES Images – Nordstrom Roadmap – Standards Committee – Style Guides – Compliance – Timing?

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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

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ACCOUNTS PAYABLE BEST PRACTICES INVOICING • Invoice on-time • Invoice accurately • Follow invoicing requirements – One invoice per shipment, per PO per destination

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ACCOUNTS PAYABLE INQUIRES Where to find supporting Documentation Preventable Deductions

Planned/Negotiated Deductions •

Request copy of agreement first from your Sales, Marketing or Customer Service teams

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If unavailable internally, contact the appropriate department noted on our Supplier Resources and Contacts document

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Pricing and discount details can be found on the AP Vendor Inquiry website, search by invoice or PO

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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

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Additional Details for EDI/Photo/Floor Ready can be provided upon request by replying to the weekly email

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PO violations and shortage details can be found on the AP Vendor Inquiry site, search by invoice or PO

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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)

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ONLINE RESOURCES portal.nordstrom.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)

www.nordstromsupplier.com 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

• Open site – no login needed

• User Guides for AP Vendor Inquiry and Supplier Toolkit are on site home page

• All Floor Ready and EDI requirements as well as other key resources

• User Guide for NOVS, email Logistics at [email protected]

• Details of manual changes outlined in summary page for your convenience © 2015 GS1 US ALL RIGHTS RESERVED

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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.

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CONTACT US… Floor Ready Management – for questions regarding Hangers, Tickets, Packaging, Cartons/Carton Labels and ASNs [email protected] 1-877-444-1313 (option 1) Merch Info Compliance – For questions regarding EDI Setup, Missing 850 PO, FA research and general compliance questions [email protected] 1-877-444-1313 (option 2) Merch Info Chargebacks – For information on EDI and Floor Ready non-compliance chargebacks [email protected] EDI Technical Support - Technical Data Transmission questions and EDI mapping. For initial EDI Setups, contact CMIO Compliance [email protected] 1-877-444-1313 (option 3) Transportation (Freight) – For Routing Guide questions or for information on Freight Agreements and Chargebacks [email protected] 1-877-444-1313 (option 4) Portal Access Administration – For access to ‘http://portal.nordstrom.com’ (Accounts Payable, Order Verification, Supplier Toolkit) [email protected] 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 [email protected] 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 [email protected] 1-877-444-1313 (option 6) Supplier Toolkit Administration – For access to Nordstrom sales and stock on hand data [email protected] © 2015 GS1 US ALL RIGHTS RESERVED

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