BEST BUY CANADA LTD ecommerce Vendor Direct Fulfillment Shipment Requirements Version 1.0 Best Buy Canada 8800 Glenlyon Parkway Burnaby, BC V5J 5K3 September 2011 1
Contents 1. INTRODUCTION... 4 1.1 Document Scope... 4 1.2 Responsibility of Vendor... 4 1.3 Confidentiality Policy... 4 1.4 Policy Update... 4 2. FULFILLMENT SERVICE LEVELS... 4 2.1 Full Shipment... 4 2.2 Delinquent Orders... 5 2.3 Expedited Order Fulfillment... 5 2.4 Peak/Holiday Fulfillment Service Levels... 5 3. PURCHASE ORDER PROCESSING... 5 3.1 PO Contents... 6 3.2 Order Consolidation... 6 3.3 Out of Stock/Discontinued Guidelines... 6 4. ORDER CANCELLATIONS... 6 4.1 Best Buy or Customer Cancellations... 6 4.2 Vendor Cancellations... 7 5. PACKAGING REQUIREMENTS... 7 5.1 ISTA Testing Standards... 7 5.2 Packaging... 7 6. BRANDING AND REQUIRED DOCUMENTS... 8 6.1 Branding... 8 6.2 Packing Slips... 8 6.3 Ship Label Detail... 9 7. SHIPPING... 9 7.1 Carrier Requirements... 9 7.2 Shipping Service Levels... 9 7.3 Ship To Requirements...10 7.4 Signature Required...10 8. ORDER COMPLETION...10 9. CLAIMS...11 9.1 Loss and Damage Claims...11 9.2 Short Shipment Claims...11 10. ORDER DISCREPANCIES...11 10.1 Over-shipment...11 10.2 Shipping Errors...12 10.3 Refusals...12 11. CORPORATE CONTACT INFORMATION...12 2
12. APPENDIX...13 Apendix A Packing Slip Sample for Bestbuy.ca...13 Appendix B Packing Slip Sample for Futureshop.ca...14 Appendix C Screenshot of Canada Post EST Program...15 Appendix D Checklist of Ship label...16 E-COMMERCE VENDOR DIRECT SHIPMENT CHECKLIST...17 3
1. Introduction 1.1 Document Scope The contents of this document outline all the shipping and fulfillment related requirements for a Vendor to execute a Vendor Direct Shipment for Best Buy Canada. Details pertain to how purchase orders should be fulfilled, packaged, labeled, shipped, tracked and returned. 1.2 Responsibility of Vendor Vendor is expected to adhere to the requirements set forth in this guide, including ensuring that third party providers fully understand and adhere to the processes outlined in this document. 1.3 Confidentiality Policy This document is exclusive property of Best Buy Canada Ltd. It is designed and intended for use by the Vendor s Shipping/Logistics departments. Neither the document nor the information contained within should be disclosed to others outside of your organization. 1.4 Policy Update This document is updated on an annual basis according to Best Buy Canada Ltd s fiscal year calendar to reflect any changes or additional requirements. When there are any changes that need your immediate attention, they will be communicated via e-mail. The Vendor is expected to adhere to the policy guide requirements immediately upon notification. 2. Fulfillment Service Levels All orders released for processing before 11:59 PM Vendor local time (the Cut-Off Time ) must be processed and shipped by the end of the following Business Day. Orders received after the Cut-Off Time will be deemed to have been submitted the following Business Day. Whenever possible the Vendor should process and ship orders the same day as the order is received. Inventory will be allocated to Best Buy s Orders on a first come first serve basis, with inventory allocated to the oldest Orders first. Vendor will be required to differentiate between store brands (Futureshop/BestBuy Canada) by sales divisions. Timeframe is measured from PO receipt to confirmation of shipment in the CommerceHub system. A Vendor requesting extended lead times must provide operational rationale for longer fulfillment time. 2.1 Full Shipment To ensure the customers receive their products in full and in a timely manner, Best Buy does not allow: Backorders Partial Shipments 4
Substitutions 2.2 Delinquent Orders An order is considered delinquent when the line items on the PO do not have an associated order status updated after the end of the second Business Day. 2.3 Expedited Order Fulfillment Where Best Buy s customers have upgraded their shipping service level, the Vendor will follow the shipping service level indicated on the Purchase Order and make all necessary efforts to expedite the fulfillment of such order. Wherever possible, Express and Expedited orders should be prioritized to ship same day. Upgraded shipping method will be displayed as Canada Post Xpresspost **: **For UPS Vendors, please fulfill the order as UPS Express Saver and close the order as UPS Express Mail. 2.4 Peak/Holiday Fulfillment Service Levels During Peak/Holiday time periods, Best Buy may sponsor upgraded shipping programs to ensure customers receive their purchases in time for holiday gifting. These upgrades will be communicated on the PO. In exception cases Vendor may be asked to manually change the shipping service to ensure timely delivery. Upgrades will be managed internally by Best Buy. 3. Purchase Order Processing Customer orders are converted into Vendor POs and transmitted every 15-30 minutes daily, 24 hours per day, and 365 days per year. Once a PO is transmitted to CommerceHub, it is available for pick-up at which time measurement of Fulfillment Service Level begins. At a minimum the Vendor must process and retrieve orders on a daily basis. 5
3.1 PO Contents Best Buy will electronically submit a purchase order to the Vendor that contains the: Customer s shipping address Customer s preferred shipping method Product SKU Quantity to be shipped 3.2 Order Consolidation Vendor shall make all commercially reasonable efforts to consolidate into one shipment all components of an accepted purchase order to be delivered to the same designated shipping address. 3.3 Out of Stock/Discontinued Guidelines In the event that the Vendor has insufficient inventory to fulfill an order, the Vendor must: Cancel the order as out of stock Zero out inventory the same day for any SKU for which an order is cancelled due to being out of stock. Inform WebDirect team via email for the PO # and the ETA In the event that the Vendor cannot fulfill an order for a discontinued SKU, the Vendor must: Cancel the order as Product has been discontinued Mark the SKU as Discontinued in the Availability field Inform WebDirect team of any canceled orders for discontinued SKU s 4. Order Cancellations 4.1 Best Buy or Customer Cancellations Orders may be cancelled prior to shipment. In the event a cancelled order is shipped the Vendor must make a reasonable effort to stop the shipment. If the customer receives a cancelled order, customer will be instructed to return the order(s) to the Best Buy Return Center via the designated carrier or return the product(s) in-store. Neither the Customer nor Best Buy will have responsibility to the Vendor for payment of such order. On occasion Best Buy may initiate a PO cancellation due to: Fraud Customer request Incomplete address, etc. The Vendor must respond immediately to requests for confirmation of cancellations from WebDirect. Failure to respond will cause the PO status to become out of sync between Best Buy and the Vendor. Shipments which are successfully stopped should be cancelled as Cancel at Merchant s Request in the CommerceHub interface. 6
4.2 Vendor Cancellations It should be the focus of the Vendor to make their best effort to fulfill all Customers orders. In the event an order cannot be fulfilled, the Vendor may cancel an order only after updating Best Buy through CommerceHub. Orders may be cancelled through: An electronic message (ex: EDI 855) The Drop Ship Master User interface (https:dsm.commercehub.com) 5. Packaging Requirements 5.1 ISTA Testing Standards The Vendor agrees to package product(s) in a manner that prevents in-transit product damage. Best Buy recommends all packaging meets the International Safe Transit Association (ISTA) testing standards. Guidelines may be found at http://ista.org/pages/procedures/testing-guidelines.php. Damage rates are monitored throughout the year. Excessive damage rates will result in product being removed from the website until appropriate package adjustments are made. 5.2 Packaging The Vendor is preferred to include protective materials in the package The Vendor must use plain boxes for all shipment. No branded boxes are allowed 7
6. Branding and Required Documents 6.1 Branding Vendor must comply with all Best Buy branding standards for all products shipped via the VDF program. Vendor s involvement in fulfillment of product should be transparent to the end Customer. Vendor may not include any branding in orders shipped such as: Rebate information Additional product/service flyers or buck slips Promotional items Any other non-purchase Order related items, such as Vendor s Packing Slip. 6.2 Packing Slips A bestbuy.ca or futureshop.ca branded packing slip must be included in every shipment. The Packing Slip serves to inform all parties of the contents of each package. All packing slips should have undergone the approval process with the WebDirect team which must comply with the requirements outlined below. Packing Slip General Requirements: 1. For multiple carton shipments, a copy of the packing slip must be included with each carton and/or the ship label must identify the number of cartons associated with the PO. 2. The Ship From address must be identified as below: ONLINE ORDERS W6A - 9200 Airport Road Brampton, ON L6S6G6 3. Approved packing slips can be downloaded from the Commerce Hub DSM System once the order is opened. 4. Standard text on the packing list provided to the Vendor cannot be altered. 5. All wording must be in English and French. 8
6. Due to security reasons, packing slips must be placed inside the package with no exception. See a sample of Packing Slip for Bestbuy.ca/Futureshop.ca in Appendix A/B. All required information is included 6.3 Ship Label Detail The Ship Label must identify Online Orders as the shipper and use the return center location as the Ship From address. Canada Post EST Guidelines One tracking number per package. Do not Safe Drop box must be checked. Reference the Customer Order Number in the Canada Post reference field. Best Buy return center address must be entered in the Ship From. Vendor must use certified label format per Canada Post Corporation and other carriers standards. See a screenshot in Appendix C. All the fields should be entered as shown. ** ** UPS Vendors must put the Purchase Order Number in the 1 st ref field Ship Label Guidelines Vendor should be logged in under our account Mailer number should always be the sub-account number Payer number should always be the main Best Buy account number: 7309303 See an example and a checklist of Shipping Labels in Appendix D. All vendor shipping personnel should be made aware of this. 7. Shipping 7.1 Carrier Requirements The Vendor must conform to Best Buy s carrier requirements specified below: The current preferred carrier is Canada Post and must be used for all packages where this carrier is able to be used. Oversized Shipments (based on Canada Post standards) and Dangerous Goods items will be shipped via an approved carrier assigned by Best Buy. Use of non-approved carriers is prohibited. 7.2 Shipping Service Levels Shipments can either be shipped Expedited or by Express. The Vendor must close the order with the shipping method that the shipment went out with. Failure to choose the correct shipping method will cause a discrepancy in the customer s invoice. The Vendor is responsible for all costs incurred due to failure to use the carrier and service level indicated above. Unauthorized service upgrades are not permitted. 9
7.3 Ship To Requirements The Ship To address may be a residential address, a business within Canada, or any type of Postal Box service*. Best Buy acts as the payer of record therefore billing is set-up as prepaid. Undelivered returns (delivery refusals) are routed back to Best Buys Return Center. All Freight claims are handled by Best Buy. *Dangerous Goods contents are not permitted to be delivered to any types of Postal Box under the Transportation of Dangerous Goods Regulations (TDGR). For more information on types of Postal Boxes, visit http://www.canadapost.ca/tools/pg/manual/pgpostbox-e.asp. 7.4 Signature Required Best Buy may request the Vendor to ship the order Signature required as indicated within the Purchase Order. For DSM Vendors: For Integrated Vendors, the value of the following code will be written as Yes. <issignaturecapturerequested>yes</issignaturecapturerequested> The Vendor is required to ship the item(s) as requested and send Best Buy appropriate confirmation through the EDI856 ASN. 8. Order completion After obtaining all the tracking information from the shipping department, it is the Vendor responsibility to ensure all the ship confirmation is submitted properly. Do not enter any spaces in the tracking number. Shipping method must be matched with the chosen shipping service level. Once the order is submitted as closed, no adjustment can be made. If the tracking information is mistakenly entered, the Vendor must contact WebDirect team immediately with the correct information. 10
9. Claims 9.1 Loss and Damage Claims Risk of transportation loss and damage for all orders will pass to Best Buy upon tendering of the order to the carrier. 9.2 Short Shipment Claims On report of a short shipment by the customer made within 90 days of shipment, Best Buy will investigate initially to exclude the possibility of tampering in shipping. If no tampering in shipping is apparent, Best Buy will request and provide 2 business days for the Vendor to provide proof of full shipment for the PO. Preferred forms of proof would be: Actual shipping weight of goods against expected shipping weight Electronic media evidence (e.g. photograph of contents in box). A full manifest with serial numbers scanned at time of packing. Proof of full shipment exists Best Buy will pay invoice in full and investigate and remedy with the customer with no further action from the Vendor. Best Buy recommends Vendors keep proof of shipment history for at least 90 days to correlate with our customer policies. Proof of short shipment exists Vendor will issue a credit note to BestBuy within 5-7 business days against the invoice in the amount of the short shipment and will return the customers money for the missed items. The Vendor does not re-ship goods to the customer under the original order. Proof of short or full shipment is inconclusive Vendor will issue a credit note to BestBuy within 5-7 business days against the invoice in the amount of the short shipment and will return the customers money for the missed items. The Vendor does not re-ship goods to the customer under the original order. Best Buy recommends Vendors invest in a system to confirm and track full order shipments. 10. Order Discrepancies 10.1 Over-shipment In the event the Vendor over-ships, Best Buy will try to recover the order by informing the customers. However, it is the responsibility of the Vendor to incur all losses due to the error in the case the product cannot be recovered. 11
10.2 Shipping Errors Best Buy will notify the Vendor of any orders that Vendor shipped in error within ten (10) business days after the shipment is received by the Customer. Within two (2) business days following such notification, Vendor will resolve the shipping error by researching the order and correcting the discrepancy by shipping the correct inventory units to the Customer and/or accepting the return of any units shipped in error at no charge. 10.3 Refusals All orders must ship with the return address for the Best Buy Return Center (Brampton, ON). Refusals will be processed by Best Buy and returned or credited as per the negotiated terms & conditions. In the event that a refusal is returned to the Vendor by the courier, it is the Vendor s responsibility to inform WebDirect immediately. A confirmation email along with an electronic copy of a credit note to the original invoice is required to be sent to the WebDirect team within 5-7 business days. 11. Corporate Contact Information The WebDirect Order Management Team is your first point of contact at BestBuy Canada for any customer support inquiries or order/shipment status. The WebDirect team also notifies Vendors regarding shipping account set up, packing slip approval, test order process and other shipment related matters. Contacts: Email: webdirect@bestbuycanada.ca Hours of Operation: Monday Friday: 8 am 4:30pm Pacific Time 12
12. Appendix Apendix A Packing Slip Sample for Bestbuy.ca 13
Appendix B Packing Slip Sample for Futureshop.ca 14
Appendix C Screenshot of Canada Post EST Program 15
Appendix D Checklist of Ship label 16
e-commerce Vendor Direct Shipment Checklist Item Action Required # 1 A Plain Non Branded box is being used for packaging 2 Protective materials are included in the box 3 No vendor branded materials are included in the box 4 A BBYC packing slip is inside the box 5 The logo on the packing slip matches the sales division 6 The Packing Slip Ship From Address Must Read: Online Orders 9200 Airport Road, Brampton ON L6S 6G6 7 The ship Label must identify Online Orders as the Shipper and the Return Center as : 9200 Airport Road, Brampton ON L6S 6G6 8 Each package has only One Tracking Number 9 The DO NOT SAFE DROP field is checked 10 The Payer on the Account is #: 7309303 11 The tracking number starts with My Account # 17 Completed Guide Section Packaging 5.2 Packaging 5.2 Branding 6.1 Packing Slip 6.2 Packing Slip 6.2 Packing Slip 6.2 Ship Label Detail 6.3 Ship Label Detail 6.3 Ship Label Detail 6.3 Ship Label Detail 6.3 Ship Label Detail 6.3