Belk Onboarding Vendor Guide Welcome Dear Vendor We

Belk Onboarding Vendor Guide

Welcome !!! Dear Vendor, We have created this presentation to assist new or reactivated vendors to onboard with Belk. Our goal is to help you proactively address potential issues that you may experience by calling out critical requirements. Understanding and addressing these requirements will reduce the risk of issues when conducting business with Belk. Please take the time to read this presentation in its entirety. If you have any questions please use the contact information to reach out to the appropriate parties. Thank you for your commitment to our partnership. Copyright © 2014 Accenture. All rights reserved. 2

Table of Contents 1. 2. 3. 4. 5. 6. 7. Overview Glossary Critical Requirements Item Setup Process Purchase Order Process Shipping Call Outs Example of Common Scenario q Purchase Order, ASN, and Invoicing Details 8. Appendix q Transaction Examples q Online Vendor Information q Contact Information 3

Overview § Belk has completed a major merchandising system initiative recently that has upgraded our systems to a more robust processing of setting up items, writing purchase orders and paying invoices § New vendors risk repeating the problems other vendors have experienced that cause downstream issues § By addressing these potential issues we can § § Minimize item setup problems resulting in purchase order delays Avoid systemically created charge backs Ensure timeliness of invoice payments Ensure correct ASN structure is sent to Belk § Failure to comply with Belk requirements will generate compliance charges at various points throughout the supply chain § This includes requirements relating to POs, ASNs, and Invoices Goal: Proactively address potential issues and answer any questions vendors may have. 4

Key Terms Key Term Definition Each This is the SKU level item. It is identified by a unique UPC or EAN and is the item sold to the consumer. It’s Unit of measure in EDI transactions ‘EA’ and the quantities and cost are for a single item. Order Quantity Multiple Certain products must be ordered in evenly divisible quantities due to the way they are stored and managed in the vendor’s supply chain. This should be defined in the OPEN TEXT/GXS catalog entry for that item. Pack A specific list of eache’s (SKUs) and quantities (called components) that are identified by a unique UPC or EAN. It is used to move goods through the supply chain more efficiently. It’s unit of measure in EDI transactions is ‘AS’ and the quantities and cost on the transaction represent the number of packs ordered and the sum of the cost of its components.

Key Terms Key Term Definition Non-sellable Packs that are not sold to the consumer and therefore have no retail associated. Most of Belk’s packs fall into this category. Sellable Pack – Some types of product can be sold as a ‘set’’. These have a retail for the complete set, as well as for the components. Componet These are (SKUs) that are contained in a pack. Belk sends information about the components of a pack in the SLN segments of our 850 and 860 transactions. This information includes the UPC of each of the SKUs as well as the number of units in the pack, their cost and retail Broken Packs Occurs when a vendor runs out of one or more component items contained in a pack. Examples: Production fallout (ie: a fabric shortage or a high number of damages); any other inventory shortage during the pick/pack process

Critical Requirements The requirements listed below are not an all-encompassing list of Belk requirements. # Requirement 1. Item Setup: Items and packs must be set up correctly in OPEN TEXT/GXS in order to avoid downstream issues. 2. Vendor must turn on Compliance Check in Open Text/GXS catalog and must grant access to catalog and all styles to Belk 3. Packs in Single Cartons: Any pack that is defined must be able to be shipped in a single carton consistent with the Belk Vendor Guide. 4. No Broken Packs: Broken packs should only be shipped with explicit permission from the appropriate Belk buying office. 5. Unit of Measure Quantity Consistency: If the PO (and ASN) is for packs, then the invoice must be for the PACK quantity and cost, not the component quantity and cost. 6. Invoice Consolidation: Invoices should be consolidated by distribution center location, per PO shipment. 7

Critical Requirements The requirements listed below are not an all-encompassing list of Belk requirements. # Requirement 7. Items and packs must be set up timely and accurately in OPEN TEXT/GXS in order to avoid downstream issues. All UPC and item setups must be complete in OPEN TEXT/GXS a minimum of 2 weeks prior to bulk orders being written and released 8. Items must be set up using the following: Correct NRF Size codes that apply to the sizing for the item using correct NRF size chart for the product you are selling. Ex. Men’s Product cannot use Boys size codes. Correct NRF 3 digit color codes that apply to color family for the item 9. If the item is a pack, the following requirements apply: Must use the PU pack type for pre-packs and corresponding component’s must be identified & linked to the pack at set up in OPEN TEXT/GXSIf configuration of the pack changes a new UPC must be provided. Must use 90000 -99999 size chart only for Pack Items 8

Critical Requirements Belk uses the industry standard UPC guidelines that are standard with the retail industry set by GS 1 & trading partner GXS/Open Text. Failure to adhere to these standards will result in chargebacks if PO has been written # Requirement 1. After UPC size/color/pre pack criteria have been confirmed by Belk, definition of the UPC cannot be changed Ex. S/M/L cannot be changed to 5/7/9. 601 Red cannot be changed to 602 Rose. Pre pack S-XL 1 -2 -2 -1, cannot be changed to 2 -2 -1 -1 2. UPC may only be re used for different item (including different color or size of the earlier item), after 30 months after last shipment by the vendor 3. Vendor must use correct size codes for product selling to Belk for the category of the UPC. Ex. Vendor must not use Men’s size code on Ladies product 4. Vendor must use “PU” pre pack code with 90000 -99999 size codes (unless pack is no size in which case use 00000. Pre Pack must be defined at the time of UPC set up in GXS catalog 9

Setup in OPEN TEXT/GXS: Packs and Order Quantity Multiples Please review the guideline documents embedded below with instructions from OPEN TEXT/GXS on creating pre packs and order qty multiple’s Double click to open this document. Please take a moment to view the We 10

Purchase Order Process § POs are ordered by UPC § The UPC could be for an each (SKU) or a pack § The same cost and unit of measure must be used on all downstream documents § All GS 1 labels must match the ASN EDI 850, 860 (PO) Item – Cost – QTY EDI 856 (ASN) EDI 810 (Invoice) Item - QTY Item – Cost - QTY ASN Call Outs Invoice Call Outs DO transmit the pack UPC and quantity of packs on the ASN if shipping a pack DO invoice Belk for the item, cost, and quantities as sent in the 850 or 860 DO NOT transmit the number of units in a pack on the ASN DO NOT invoice Belk for the cost of the components * the number of units in a pack 11

Shipping Call Outs § No Broken Packs § Compliance charges are generated systemically for a ‘not ordered SKU’ when broken packs are shipped § Broken packs should only be shipped with explicit permission from the Belk Buyer § If approved § The cartons that contain incomplete packs should be ASN’ed using the component UPCs and quantities § The buying office must maintain the PO by adjusting the order, recalculating the allocation, and transmitting the new release via EDI to the vendor § The pack UPC should not be transmitted when a pack is broken § Packs in Single Cartons § Any pack that is defined must be able to be shipped in a single carton consistent with the Belk Vendor Guide (see the ‘Online Informational Resources’ slide for the link to the Vendor Guide) § Large packs may not physically fit within the acceptable range of carton sizes and weights that can be processed at our warehouses § Packs that are split between 2 cartons cause § ASN issues due to the receiving system booking at least one pack per carton § Inventory overstatement § Difficulties in automatching invoices 12

Example: Purchase Order Details Step 1: A Belk merchant creates 3 POs for the same vendor which have the same ship window. There is only one item on each of the 3 POs and the third PO, “PO C”, is for the Ecommerce facility. One of the two items ordered is a pack while the other is an each. PO A ITEM Gamma ITEM COST $100. 00 ITEM TYPE Pack TOTAL QTY PO COST 36 $3, 600. 00 B Delta $10. 00 Each 36 $360. 00 C Delta $10. 00 Each 60 $600. 00 STORE QTY SERVICING DC 228 12 737 294 12 737 222 12 744 228 24 737 396 12 744 888 (Ecomm) 60 737 13

Example: ASN Details Step 2: The vendor creates two shipments for the 3 POs and creates/transmits two ASNs (one for each of the shipments). The shipments to Belk distribution centers are in transit. SHIPMENT DESTINATION ASN 1 ASN 2 737 (Blythewood) 744 (Jackson) ASN 1 PO ITEM QTY STORE A Gamma 12 228 A Gamma 12 294 B Delta 24 228 C Delta 60 888 (Ecomm) A Gamma 12 222 B Delta 12 396 Vendor Warehouse ASN 2 14

Example: Invoice Details Step 3: Invoices are received from the vendor and automatically matched in Belk’s invoice matching system. Payment is generated for these invoices to the vendor. INVOICE PO ITEM COST ITEM TYPE SERVICING DC TOTAL WAREHOUS E QTY INVOICE AMOUNT 24 $2, 400. 00 737 INVC 1 A Gamma $100. 00 Pack 737 INVC 2 A Gamma $100. 00 Pack 744 12 $1, 200. 00 INVC 3 B Delta $10. 00 Each 737 24 $240. 00 INVC 4 B Delta $10. 00 Each 744 12 $120. 00 INVC 5 C Delta $10. 00 Each 737 60 $600. 00 3 Purchase Orders 2 ASNs 5 Invoices 15

Appendix Additional Information 16

EDI Documents to Support Example The EDI documents for the example contained in this presentation are embedded below. Please note: 1. These transactions are for illustrative purposes only 2. EDI transactions must always use valid UPCs or EANs as product identifiers Double click to open this document. Purchase Order Document Examples Double click to open this document. ASN Document Examples Double click to open this document. Invoice Examples 17

Online Informational Resources Topic OPEN TEXT/GXS Catalog Stores & Servicing Distribution Centers EDI 850 Guidelines EDI 860 Guidelines UCC 128 Label Guidelines Comments Link Belk Landing Page /Active Webinar http: //www. OPEN TEXT/GXS. com/belk http: //www. gxs. com/assets/uploads/wmv/livemeetin g. wmv Active Catalogue Information Page http: //www. OPEN TEXT/GXS. com/products/active_applications/data_ synchronization/OPEN TEXT/GXS_catalogue Catalogue Log-In Page https: //catalogue. OPEN TEXT/GXS. com/QRSGUI/jsf/login. jspx To ensure you have the most updated listing of our Distribution Centers and stores serviced from each location please refer to the listing on our website. ** Note that all Fine Jewelry merchandise is serviced from our Ridgeland Distribution Center. Blythewood: http: //www. belk. com/media/pdf/vendor_info/transpor tation_documents/Store. Shipping. Receiving. Locations -Blythewood-4 -17 -13. pdf Jackson: http: //www. belk. com/media/pdf/vendor_info/transpor tation_documents/Store. Shipping. Receiving. Locations Jackson_041713. pdf Belk EDI mapping guideline document. http: //www. belk. com/media/pdf/vendor_info/EDI_40 30_mapping/Belk 850 Purchase. Order. pdf Belk EDI mapping guideline document. http: //www. belk. com/media/pdf/vendor_info/EDI_40 30_mapping/Belk 860 POChange. Request. pdf Belk UCC 128/GS 1 example. http: //www. belk. com/media/pdf/vendor_info/EDI_40 30_mapping/Belk. UCC 128 Label. V 40 -Domestic. pdf 18

Online Informational Resources (continued) Topic Comments Link ASN EDI 856 Guidelines We encourage you to also review the ASN EDI 856 information on our website. This will ensure timely and accurate booking of receipts, which contributes to the invoice matching process and further contributes to timely payments to our vendors. EDI 810 Guidelines Further information on Belk’s EDI 810 guidelines can be found in our Belk Vendor Page located on our http: //www. belk. com/media/pdf/vendor_info/EDI_40 website, belk. com, by clicking on the Vendor Info link at 30_mapping/Belk 810 Invoice. pdf the bottom of the page. Specific guidelines can be found under the appropriate document number. Belk Vendor Guide The Belk Vendor Guide, has been updated as of Jan 2015. Belk Expense Offset All Belk expense off set and due to Non Compliance can be found on the Belk Vendor Guide pg. 32 -35 http: //www. belk. com/media/pdf/vendor_info/EDI_40 30_mapping/Belk 856 Ship. Notice. Manifest. pdf http: //www. belk. com/media/pdf/vendor_info/transpor tation_documents/Best. Plan. pdf 19

Contact Information Topic Vendor Relations Item Setup Process Contacts Vendor_Relations@Belk. com Merch_Support@Belk. com OPEN TEXT/GXS Active Catalog 1 -877 -446 -6847, Opt. 2, then *, 4, 1; cataloguesupport@OPEN TEXT/GXS. com OPEN TEXT/GXS Global Support Services 1 -800 -334 -2255, Opt. 2; technical support Support@OPEN TEXT/GXS. com Belk Transportation transportation_services@belk. com EDI 850, 860, 856, and 810 EDI@Belk. com Business Process 850, 860, 856, and 810 Data and Formatting EDI@Belk. com Accounts Payable AP_Correspondence@belk. com and Jolee_Toms@belk. com 20