E-COMMERCE Vendor Standards Manual - Saks Fifth Avenue, Saks OFF 5TH and Gilt.com - Saks Incorporated
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Saks Fifth Avenue, Saks OFF 5TH and Gilt.com
E-COMMERCE
Vendor Standards Manual
April 19th, 2018
TABLE OF CONTENTS
1 TO OUR VENDOR PARTNERS .......................................................................................................................................... 6
1.1 HOW TO USE OUR VENDOR STANDARDS MANUAL ........................................................................................... 6
1.2 SPECIAL NOTES ....................................................................................................................................................... 6
1.3 INTERNET ACCESS .................................................................................................................................................. 6
2 OVERVIEW OF CURRENT REVISIONS ............................................................................................................................. 7
FUR LABELING ACT .................................................................................................................. Error! Bookmark not defined.
OFF 5TH TICKET FORMAT .......................................................................................................... Error! Bookmark not defined.
JEWELRY ASN WATCH GUIDELINES ...................................................................................... Error! Bookmark not defined.
3 TERMS AND CONDITIONS ................................................................................................................................................ 8
3.1.1 INTELLECTUAL PROPERTY .......................................................................... Error! Bookmark not defined.
3.1.2 RIGHT TO INSPECT .......................................................................................... Error! Bookmark not defined.
3.1.3 HAZARDOUS GOODS ...................................................................................... Error! Bookmark not defined.
3.1.4 INVOICING INSTRUCTIONS ........................................................................... Error! Bookmark not defined.
3.1.5 RETURN AND CANCELLATION POLICIES .................................................. Error! Bookmark not defined.
3.1.6 CUSTOMS........................................................................................................... Error! Bookmark not defined.
3.1.7 ENVIRONMENTAL STEWARDSHIP PROGRAMS ....................................... Error! Bookmark not defined.
3.1.8 DATING, TERMS AND INSTRUCTIONS........................................................ Error! Bookmark not defined.
3.1.9 VENDOR STANDARDS .................................................................................... Error! Bookmark not defined.
3.1.10 ADMINISTRATIVE FEES / EXPENSE OFFSET FEES............................... Error! Bookmark not defined.
3.1.11 BACK ORDERS ............................................................................................. Error! Bookmark not defined.
3.1.12 CONFIDENTIALITY ..................................................................................... Error! Bookmark not defined.
3.1.13 LIMITATION OF LIABILITY AND STATUTE OF LIMITATIONS .......... Error! Bookmark not defined.
3.1.14 ASSIGNMENT ............................................................................................... Error! Bookmark not defined.
3.1.15 REMEDIES AND NO WAIVER .................................................................... Error! Bookmark not defined.
3.1.16 SEVERABILITY ............................................................................................ Error! Bookmark not defined.
3.1.17 FORCE MAJEURE ......................................................................................... Error! Bookmark not defined.
3.1.18 GOVERNING LAW AND JURISDICTION .................................................. Error! Bookmark not defined.
3.1.19 CONTACTING US ......................................................................................... Error! Bookmark not defined.
3.2 BUSINESS PRACTICE STANDARDS FOR DOMESTIC VENDORS, SUPPLIERS & CONTRACTORS .......... Error!
Bookmark not defined.
3.2.1 OVERVIEW ........................................................................................................ Error! Bookmark not defined.
3.2.2 CHILD LABOR / SWEATSHOPS...................................................................... Error! Bookmark not defined.
3.2.3 CONFLICTS OF INTEREST .............................................................................. Error! Bookmark not defined.
3.2.4 BRIBES AND KICKBACKS .............................................................................. Error! Bookmark not defined.
3.2.5 ANTITRUST ....................................................................................................... Error! Bookmark not defined.
3.2.6 GIFTS AND ENTERTAINMENT ...................................................................... Error! Bookmark not defined.
SFA E-COMMERCE VENDOR STANDARDS MANUAL 1
REVISED 04-19-20183.2.7 CONFIDENTIAL INFORMATION, TRADE SECRETS, AND INTELLECTUAL PROPERTY .............Error!
Bookmark not defined.
3.2.8 ENVIRONMENTAL HEALTH AND SAFETY ................................................ Error! Bookmark not defined.
3.2.9 COMPLIANCE WITH PRIVACY AND ANTI-MONEY LAUNDERING LAWS.......... Error! Bookmark not
defined.
3.2.10 RESOURCES .................................................................................................. Error! Bookmark not defined.
4 CONTACTS ....................................................................................................................................................................... 19
4.1 VENDOR RELATIONS ............................................................................................................................................. 19
4.2 EDI ............................................................................................................................................................................ 19
4.3 TRANSPORTATION ................................................................................................................................................ 20
4.4 E-COMMERCE DISTRIBUTION CENTERS ............................................................................................................ 20
ACCOUNTS PAYABLE ......................................................................................................................................................... 21
5 TECHNOLOGY REQUIREMENTS .................................................................................................................................... 22
5.1 VENDOR PARTNER RESPONSIBILITIES .............................................................................................................. 22
5.2 UPC OR EAN TICKETING ....................................................................................................................................... 22
5.3 UPC CATALOG ....................................................................................................................................................... 23
5.3.1 NON-GXS ACTIVE CATALOGUE USERS ..................................................................................................... 23
5.4 ELECTRONIC DATA INTERCHANGE (EDI) ........................................................................................................... 23
SFA INBOUND DOCUMENTS ....................................................................................................................................... 23
SFA OUTBOUND DOCUMENTS ................................................................................................................................... 23
5.5 AUTOMATIC REPLENISHMENT / VENDOR MANAGED INVENTORY ................................................................. 24
6 DISTRIBUTION .................................................................................................................................................................. 25
6.1 VENDOR PARTNER RESPONSIBILITIES .............................................................................................................. 25
6.2 PURCHASE ORDERS ............................................................................................................................................. 25
6.3 AUTOMATIC RETURNS .......................................................................................................................................... 26
6.4 CONSUMER READY MERCHANDISE .................................................................................................................... 27
6.5 SOCIAL COMPLIANCE PROGRAM ....................................................................................................................... 27
6.6 PRODUCT LABELING REQUIREMENTS ............................................................................................................... 28
6.7 FUR LABELING ACT ............................................................................................................................................... 28
6.8 BAMBOO LABELING REQUIREMENT ................................................................................................................... 29
6.9 PRIVATE BRAND SEWN-IN WOVEN LABELS ...................................................................................................... 29
6.10 MERCHANDISE PHOTO SAMPLES ....................................................................................................................... 29
7 TICKET STANDARDS ....................................................................................................................................................... 30
7.1 FULL LINE TICKET FORMATS (saks.com) ........................................................................................................... 31
7.1.1 VERTICAL TICKET........................................................................................................................................... 31
7.1.2 HORIZONTAL TICKET..................................................................................................................................... 31
7.2 2 PIECE GARMENT TICKETING ............................................................................................................................. 32
7.3 POLYBAG STICKER ............................................................................................................................................... 32
7.4 OFF 5TH TICKET FORMATS (saksoff5th.com)..................................................................................................... 33
7.4.1 OFF 5TH TICKET FORMAT BY CATEGORY / DEPARTMENT .................................................................... 33
SFA E-COMMERCE VENDOR STANDARDS MANUAL 2
REVISED 04-19-20187.4.2 OFF 5TH DUAL RETAIL TICKETS ................................................................................................................... 35
7.4.3 OFF 5TH SINGLE RETAIL FORMAT ................................................................................................................ 36
7.4.4 OFF 5TH DUAL RETAIL WITH SAVINGS TICKETS...................................................................................... 37
7.5 TICKET PLACEMENT GUIDE ................................................................................................................................. 38
8 POLYBAG STICKER PLACEMENT GUIDE ..................................................................................................................... 39
9 HANGER STANDARDS .................................................................................................................................................... 40
9.1 HANGER REQUIREMENT BY CATEGORY............................................................................................................ 40
9.2 HANGER MATRIX ................................................................................................................................................... 40
9.3 MEN’S AND WOMEN’S APPROVED STANDARD PLASTIC HANGER PROGRAM ............................................. 41
Figure 8 A: Women’s and Men’s Plastic Hanger Program ................................................................................................ 41
9.4 GUIDELINES FOR JEWELRY AND WATCH PRODUCTS DELIVERED TO SAKS FIFTH AVENUE .................... 41
9.4.1 Diamonds over 1 carat must be certified .............................................................................................................. 42
9.4.2 Colored Stones ..................................................................................................................................................... 42
10 SHIPPING AND PACKING REQUIREMENTS .................................................................................................................. 43
10.1 POLYBAG REQUIREMENTS .................................................................................................................................. 44
10.2 PACKAGING GUIDE ............................................................................................................................................... 44
10.3 CARTON SPECIFICATIONS AND REQUIREMENTS ............................................................................................. 45
10.4 PALLETIZATION ..................................................................................................................................................... 45
10.5 EDI-ASN SHIPMENTS ............................................................................................................................................. 46
10.5.1 EDI-856 ASN: ADVANCE SHIP NOTICE ................................................................................................... 46
10.5.2 GS1-128 SHIPPING CONTAINER LABEL .................................................................................................. 47
10.5.3 GS1-128 SHIPPING LABEL FORMAT ........................................................................................................ 47
48
10.6 NON-ASN / BULK SHIPMENTS .............................................................................................................................. 48
10.6.1 PACKING SLIPS ............................................................................................................................................ 48
10.6.2 CARTON LABELING .................................................................................................................................... 49
10.7 LABEL PLACEMENT GUIDELINES ........................................................................................................................ 50
11 VENDOR QUALITY MANAGEMENT - SHIPMENT ACCURACY ..................................................................................... 52
11.1 AUDITS .................................................................................................................................................................... 52
11.2 VQM STRATIFICATION ........................................................................................................................................... 52
11.3 RECEIVED NOT ORDERED .................................................................................................................................... 52
11.4 PARTIAL SHIPMENTS AND BACK ORDERS ........................................................................................................ 53
12 TRANSPORTATION REQUIREMENTS ............................................................................................................................ 54
13 ACCOUNTS PAYABLE ..................................................................................................................................................... 54
13.1 VENDOR SET UP .................................................................................................................................................... 54
13.1.1 DOMESTIC SUPPLIER ............................................................................................................................... 54
13.2 EDI 810 ELECTRONIC INVOICES REQUIREMENT ............................................................................................... 55
13.3 NON-EDI 810 CAPABLE / NON-COMPLIANT EDI INVOICES ............................................................................... 55
13.4 PAYMENT TO DOMESTIC VENDORS .................................................................................................................... 55
SFA E-COMMERCE VENDOR STANDARDS MANUAL 3
REVISED 04-19-201813.5 PROOF OF DELIVERY (POD) REQUESTS ON UNPAID INVOICES FOR SAKS US ............................................ 56
13.6 VENDOR PORTAL ................................................................................................................................................... 56
13.7 CHARGEBACK DISPUTES ..................................................................................................................................... 56
13.8 VENDOR INFORMATION UPDATES ...................................................................................................................... 57
14 EXPENSE OFFSET FEES ................................................................................................................................................. 58
14.1 FLOOR READY VIOLATIONS ................................................................................................................................. 58
14.2 TRANSPORTATION VIOLATIONS ......................................................................................................................... 60
14.3 E-COMMERCE STORE AND DISTRIBUTION CENTERS ...................................................................................... 61
15 CHECKLIST ....................................................................................................................................................................... 62
16 OVERVIEW OF PAST REVISIONS – 12 MONTHS........................................................................................................... 63
CONTACTS ........................................................................................................................................................................... 63
Updated Transportation Contacts ...................................................................................................................................... 63
TICKET STANDARDS ........................................................................................................................................................... 63
Plastic seal with nylon thread acceptable ticket attachment ........................................................................................... 63
POLYBAG STICKER ............................................................................................................................................................. 63
Sample provided .................................................................................................................................................................. 63
POLYBAG STICKER PLACEMENT GUIDE ......................................................................................................................... 63
Images provided ................................................................................................................................................................... 63
EDI-ASN SHIPMENTS ........................................................................................................................................................... 63
Detailed explanation related to chargebacks..................................................................................................................... 63
GS1-128 SHIPPING LABEL FORMAT .................................................................................................................................. 63
Required font size for Zone H ............................................................................................................................................. 63
NON-ASN / BULK SHIPMENTS ............................................................................................................................................ 63
Detailed explanation related to chargebacks..................................................................................................................... 63
OFFSET FEES ....................................................................................................................................................................... 63
New code: 136, Interruption of Processing ........................................................................................................................ 63
SHIPPING CHECKLIST .................................................................................................................................................. 63
EXPENSE OFFSET FEES ................................................................................................................................................ 64
FLOOR READY VIOLATIONS ...................................................................................................................................... 64
FLOOR READY VIOLATIONS ...................................................................................................................................... 64
SFA E-COMMERCE VENDOR STANDARDS MANUAL 4
REVISED 04-19-2018LIST OF FIGURES Figure 7 A: Vertical Ticket Requirements ................................................................................................................................................. 27 Figure 7 B: Horizontal Ticket Requirements ............................................................................................................................................ 27 Figure 7 C: Horizontal Ticket Samples for Full Line (saks.com) ........................................................................................................... 27 Figure 7 D: Horizontal Ticket Samples for Full Line (saks.com) ........................................................................................................... 27 Figure 7 E: Vertical Dual Retail Ticket Samples ...................................................................................................................................... 31 Figure 7 F: Vertical Dual Retail Ticket Samples ...................................................................................................................................... 31 Figure 7 G: Horizontal Dual Retail Ticket Samples ................................................................................................................................. 31 Figure 7 H: Vertical Single Retail Ticket Samples ................................................................................................................................... 32 Figure 7 I: Horizontal Single Retail Ticket Samples ................................................................................................................................ 32 Figure 7 K: Horizontal Dual Retail with Savings Ticket Samples .......................................................................................................... 33 Figure 7 L: Rattail Dual Retail with Savings Ticket Samples ................................................................................................................. 33 Figure 7 M: Vertical Dual Retail with Savings Ticket Samples .............................................................................................................. 33 Figure 8 A: Women’s and Men’s Plastic Hanger Program ......................................................................................................... 37 Figure 9 A: Label format and requirements per GS1 US Guidelines .......................................................................................... 42 Figure 9 B: Sample GS1-128 Label............................................................................................................................................ 42 Figure 9 C: Sample Packing Slip ................................................................................................................................................ 43 Figure 9 D: Sample Non-EDI Carton Label ............................................................................................................................... 44 Figure 9 F: For cartons 6 inches or more in Height - Label must fit within this rectangular dimension ....................................... 45 Figure 9 G: For cartons less than 6 inches in height - Label must fit within this rectangular dimension ..................................... 45 Figure 11 A: Sample Manifest .................................................................................................................................................... 45 SFA E-COMMERCE VENDOR STANDARDS MANUAL 5 REVISED 04-19-2018
1 TO OUR VENDOR PARTNERS
Thank you for being a part of the Saks Fifth Avenue vendor family. Our vendor relationships have always played a very
valuable part in our business. Now that supply chain efficiencies are the key to remaining competitive and satisfying our
customers, it has become critical that we develop collaborative partnerships with vendors who have a similar
commitment to these technologies. We expect our vendors to support us by shipping merchandise “floor ready,” trading
with our required EDI transactions, and following our shipping, packing and invoicing guidelines. We have dedicated
ourselves to ensure our vendor standards are in agreement with the direction of the retail industry. As technology
advances, we will continue to review and adopt those enhancements that assist us in achieving our corporate initiatives.
1.1 HOW TO USE OUR VENDOR STANDARDS MANUAL
This manual is intended to outline the standards our vendor partners must follow when doing business with Saks E-
commerce. Although we have tried to clearly define our standards, if you have specific questions, please refer to the
Contact List and direct them to the appropriate person.
As you page through this manual, you will notice headings and/or text that are printed in red. This is to help you
identify changes or additions from previous Saks Fifth Avenue policies. We have also provided you a summary listing
highlighting major revisions following the index pages. In addition, overlooked requirements or information have been
highlighted in bold or various colored text.
1.2 SPECIAL NOTES
1. For Saks Full Line and OFF 5TH Brick and Mortar Stores: Compliance requirements and responsibilities are
outlined in the Saks Fifth Avenue Vendor Standards Manual.
2. Vendor Compliance standards do not apply to the following areas:
• Supplies
• Direct to Customer Shipments (Reference Drop-Ship Guidelines)
3. Compliance with all standards is required for the following areas:
• Saks Fifth Avenue Private Label
• Import merchandise
• Off-Price and special purchase buys
4. Non-compliance with our standards may result in an expense offset fee. See Terms and Conditions of Purchase
Order and Expense Offset Fee sections.
5. Standards and Requirements in the most recent version will supersede any previous communications.
1.3 INTERNET ACCESS
Our Vendor Standards Manuals, along with additional vendor support information, is available for viewing or
downloading on our website at http://www.saksincorporated.com under “Vendor Relations.”
All standards updates and revisions are communicated via our website. It is a vendor’s responsibility to monitor our
website regularly and keep all their internal departments updated on Saks Fifth Avenue policy and/or procedural
changes.
SFA E-COMMERCE VENDOR STANDARDS MANUAL 6
REVISED 04-19-20182 OVERVIEW OF CURRENT REVISIONS
This listing highlights the major changes in the Vendor Standards Manual. As you page through our Vendor Standards
Manual, you will notice text that is printed in red. This is to help you identify all the changes or additions from previous
Saks Fifth Avenue policies. For details on previous revisions, please go to the last page of this document.
If you would like to be on our distribution list to receive Vendor Standards Manual updates, please email
vendorrelationsny@saksinc.com.
MAY 29, 2017
SECTION PAGE DESCRIPTION
Updates and additions in various sections added and notated for
Guidelines for Gilt.com added Various
Gilt.com requirements
SFA E-COMMERCE VENDOR STANDARDS MANUAL 7
REVISED 04-19-20183 TERMS AND CONDITIONS
TERMS & CONDITIONS
These terms and conditions (“Terms and Conditions” or this “Agreement”) apply to all purchases by Saks Fifth Avenue,
Saks Fifth Avenue OFF 5TH, GILT, Hudson’s Bay Company d/b/a Saks Fifth Avenue Canada, and Hudson’s Bay
Company d/b/a Saks Fifth Avenue OFF 5TH Canada, through its affiliates (individually and collectively "Purchaser" or
“Company” or “Our” or “We” or “Us”) and are binding upon seller / vendor (hereinafter “You” or “Your” or “Vendor”).
Authority and Acceptance: Purchaser hereby purchases the goods specified on its electronic data interchange (EDI) or
written purchase order contracts, subject to and upon the express terms and conditions hereof (the “Order”). You must
have a valid Order prior to shipping goods to Company. Verbal orders and/or "house orders" will not be valid unless
confirmed with a written or electronic purchase order.
By shipping goods or performing specified work, you agree to the Terms and Conditions of sale set forth herein, unless
otherwise modified in writing by Purchaser. Any different or additional terms in Vendor’s acceptance of the Order are
hereby objected to, and Purchaser’s objection to different or additional terms shall not be waived by acceptance of any
goods or payment of any invoice.
These Terms and Conditions may be modified at any time at Purchaser’s sole discretion and convenience. Continuing to
do business with Purchaser after any such modification, including accepting any orders or shipping any merchandise
shall be considered acceptance of the then current Terms and Conditions and any updates or revisions thereto.
3.1.1 ORDERS
This Agreement shall apply to all purchases of products (“Products”) by Purchaser from Vendor (or Products supplied
by Vendor to Purchaser through distributors), including without limitation, of all purchases of Products made by
Purchaser through all forms of Orders whether issued through EDI, written purchase order contract, on a drop ship or
consignment basis, or otherwise. This Agreement shall apply to any allowance, marketing or returns agreements
between Purchaser and Vendor now existing or entered into hereafter. Vendor hereby expressly agrees that no terms or
conditions in any acceptance, acknowledgement, invoice, allowance agreement, Order or other document, or orally,
which are in conflict with, different from, or in addition to this Agreement shall be binding upon Purchaser unless
agreed to in a writing signed by a duly authorized officer of Purchaser; and in the case of a conflict between any of the
terms and conditions contained in this Agreement and any other terms and conditions in any other agreement or
document related to or in connection with the Products, the terms and conditions in this Agreement shall control. The
price of the Products shall not be adjusted or increased without the prior written consent of the Purchaser. Time is of the
essence with regard to each Order. Each Order shall only bind Vendor and the relevant Purchaser; the liability of each
Purchaser under this Agreement for any Orders shall be several and not joint.
3.1.2 REPRESENTATIONS AND WARRANTIES
Vendor hereby represents and warrants to Purchaser, in addition to all warranties implied by any and all applicable
laws and other legal obligations including, without limitation, local, state, provincial, territorial, Canadian, European
Union and United States federal laws, directives, rules, assessments, regulations, filing requirements, ordinances,
statutes, codes, judgments and civil or common laws (collectively “Laws”), that the Products, together with all related
packaging, labeling and other printed matter and all related advertisements furnished or authorized by Vendor shall
(a) be merchantable, free from defects in design, workmanship or materials including, without limitation, such defects
as could create a hazard to life or property; (b) be of first quality, free and clear of all liens, encumbrances, security
interests, or adverse claims from original manufacturers, inventors, licensing agents, factories or any other entity; (c)
be suitable for end use and fit for purpose; (d) be appropriate and legally, including under this Agreement, allowed to
be transferred to any third party; (e) be manufactured, produced, packed for shipment, marked with the country of
origin, and where required, registered, all in accordance with any Laws; (f) not infringe or encroach upon any party’s
personal, contractual or proprietary rights, including without limitation, patent, trademark, tradename, trade dress,
service mark, copyright, right of privacy or trade secret rights; (g) not be sold to any person or entity if they bear or
are labeled with any trade name, trademark, service mark, logo, private label brand or design that is proprietary to
Purchaser without the express written consent of Purchaser, even if said goods were rejected, cancelled, refused or
returned by Purchaser; (h) conform to all specifications, drawings, samples or other descriptions set forth on the
packaging for such Products; (i) possess all performance qualities and characteristics stated in advertisements
issued or authorized by Vendor; (j) be in conformity with all Company-specific requirements and all applicable Laws,
including but not limited to: Consumer Products Safety Act of 1972, Flammable Fabrics Act of 1954, Federal Food,
Drug, and Cosmetic Act, Fur Products Labeling Act, Federal Hazardous Substances Act of 1960, Occupational
SFA E-COMMERCE VENDOR STANDARDS MANUAL 8
REVISED 04-19-2018Safety and Health Act, Fair Labor Standards Act, Textile Fiber Products Identification Act, Poison Prevention
Packaging Act, Endangered Species Act, Wool Products Labeling Acts, Tariff Act of 1930, Dog and Cat Protection
Act of 2000, California Proposition 65 and AB 1681, all as amended; and in the case of goods sold to Saks Fifth
Avenue Canada and OFF 5TH Canada, all applicable Canadian federal and provincial laws and any regulations,
rules, and standards promulgated thereunder, including but not limited to: Product Safety Act, Food and Drugs Act,
Food and Drug Regulations and Cosmetic Regulations, Consumer Packaging and Labelling Act and Regulations,
Marking of Imported Goods Order, Textile Labelling Act and Regulations, Ontario Technical Standards and Safety Act
and Upholstered and Stuffed Articles Regulation, and Quebec Charter of the French Language and Regulations, all
as amended, and any generally similar law or regulation in any other domestic or international jurisdiction; (k) be in
conformity with all applicable industry voluntary standards; (l) be properly stamped, tagged, labeled, branded or
marked with such information as may be required by any Law; (m) have Product descriptions on Purchaser’s
websites that are complete, accurate, not misleading to consumers, and that: (i) wool, textile and fur products
provided under this Agreement (if any) are not misbranded or falsely or deceptively invoiced or described by Vendor
under the provisions of the Textile Fiber Products Identification Act, the Wool Products Labeling Act and/or the Fur
Products Labeling Act, or any rules and regulations thereunder and (ii) notwithstanding any law to the contrary,
Vendor shall affix any label required by California Proposition 65 to its Products prior to delivery to Purchaser, and
shall provide any required ancillary online or store warnings; (n) if Product has an expiration date, and (i) is a non-
perishable food item (e.g. oil, vinegar), such expiration date will fall on a date that is later than six (6) months from the
date such Product is received by Purchaser, (ii) is not a food item (e.g. cosmetics), such expiration date will fall on a
date that is later than twelve (12) months from the date such Product is received by Purchaser; or (iii) is an item in a
dropship sale, such expiration date will fall no earlier than the date represented on the sale page when such Product
is received by the purchaser; (o) be manufactured, produced, packaged, labeled, tested, certified, imported, shipped,
warehoused and stored in accordance with all applicable Laws and customs regulations and requirements; and (p) be
manufactured, produced and packaged in accordance with all Laws regarding the screening, hiring and employment
of all labor forces, including without limitation, without the use of child labor and with the use of persons whose
employment is voluntary and not through the use of prison labor or corporal punishment (or other forms of mental or
physical coercion) as a form of discipline for workers or employees. Nothing in this Agreement shall limit or exclude
the liability of Vendor for death or personal injury resulting from negligence, or for fraud or fraudulent
misrepresentation.
In addition to the representations and warranties above, Vendor represents and warrants it will report to Purchaser for
each style of Product sold to Purchaser: (a) a “Manufacturer’s Suggested Retail Price” or “MSRP” at which Vendor
suggests setting the price of such style, with the understanding that it is nothing more than a suggestion and
Purchaser is free to set its price at its sole discretion using factors it establishes; or (b) a “Comparison Price” that
meets one of the following three criteria: (i) the price at which the Product has been offered for sale or sold in the
most recent 90 day period that the Product was generally made available to the public at principal retail outlets
(online or offline), (ii) if the particular Product has not been sold at retail, or has been sold at retail only in limited
quantities or in previous seasons, a good faith estimate based on sales of substantially similar products of the price at
which the Product would be sold at retail, or (iii) an MSRP only, if and only if Vendor can represent and warrant that
this particular style of product is sold at that price and only that price and are rarely or never discounted from that
price and Vendor believes in good faith that a discounting strategy is not advisable or appropriate with respect to that
style of Product. Vendors shall maintain documents or information to substantiate the Comparison Price they report to
Purchaser, and shall provide the substantiating documentation to Purchaser upon request. Any information
Purchaser provides Vendor with respect to Purchaser’s retail pricing is an estimate and for informational purposes
only. Purchaser reserves the right to set pricing at its discretion and there is no agreement between Vendor and
Purchaser on the subject of the actual price that Purchaser will charge in any situation. Vendor warrants that the price
shown on the Order shall be complete and no additional charges of any type shall be added without the Purchaser’s
express written consent. Such additional charges include, but are not limited to, shipping, packaging, labeling, custom
duties, taxes, storage, insurance, boxing, and crating. Vendor further agrees that Vendor, its agents or other
individuals representing the Company must not agree or act together with any competitor with regard to prices, terms
or conditions of sale, purchase, production, distribution, territories, customers, or suppliers and must not exchange or
discuss with a competitor prices, terms or conditions of sale, or any other competitive information, or engage in any
other conduct which may restrict competition or otherwise violate any of the antitrust laws.
3.1.3 PRODUCT SAFETY, QUALITY AND RECALLS
Vendor, at its sole cost and expense, shall perform, or cause to be performed, all tests on the Products required by
any applicable Laws or any federal, state, territorial, provincial, Canadian, European Union or local governmental
agency or authority having jurisdiction as well as any applicable industry voluntary standard or Purchaser
requirements and shall maintain for a period of not less than three (3) years certificates and/or other sufficient
SFA E-COMMERCE VENDOR STANDARDS MANUAL 9
REVISED 04-19-2018documentation indicating that all applicable tests have been administered and passed. Such tests shall be conducted
by laboratories acceptable to the agency or authority requiring the same and Purchaser. Vendor shall promptly make
available, and at Purchaser’s request shall promptly furnish, to Purchaser copies of all such certificates and/or other
sufficient documentation and shall permit Purchaser or any person or persons authorized by Purchaser to inspect and
make copies of all records maintained by Vendor in connection with such tests. Vendor shall provide to Purchaser a
Material Safety Data Sheet as required by Law prior to the delivery of Products to Purchaser. Upon written notice to
Vendor, Purchaser can perform or have performed any acts necessary to satisfy the requirements of this Section at
Vendor’s expense, which expense may be credited against any amounts owed by Purchaser to Vendor. In the event
(i) Purchaser has reasonable cause at any time to believe that any Products contain defects or hazards that could
impair the fitness for purpose or durability of the Products or create a substantial risk of injury to any person or
property or that the purchase, display or sale of Products by Purchaser violates or will violate any Law relating to the
manufacture, sale, labeling, safety or transportation or Products, or (ii) Vendor or a government entity initiates
removal of Products from the stream of commerce (any of the foregoing a “Recall”), without limiting any of
Purchaser’s other remedies, Vendor shall be responsible for all costs, legal fees and penalties associated with any
Recall, including without limitation Purchaser’s lost profits in connection therewith. Vendor shall undertake all
corrective actions in connection with the Recall including without limitation, timely notice to Purchaser of any Recall,
removal of the Products from Purchaser’s inventory and disposition of the recalled Products, unless Purchaser, in its
sole discretion, notifies Vendor that Purchaser intends to control a Recall.
3.1.4 INDEMNIFICATION
Vendor agrees to defend, indemnify, and hold harmless each Purchaser, its affiliates, and their respective officers,
directors, members, shareholders, employees, agents, representatives, assigns and successors (collectively the
“Purchaser Indemnitees”) from, and upon demand reimburse the Purchaser Indemnitees, for any and all damages,
losses and/or expenses (including Purchaser Indemnitees’ attorneys’ fees and their other costs of defense) incurred
in connection with any and all suits, claims, demands, liabilities and Recalls whatsoever: (1) arising out of or alleged
to have arisen from a breach of any of the representations, warranties or obligations of Vendor under this Agreement
(including any related act or omission by Vendor), (2) for death, illness, personal injury or property damage, both in
law and equity, arising out of or resulting in any way from any actual or alleged defect in any Products; (3) for any act
or omission, negligence or willful misconduct of the Vendor, its agents, employees, or subcontractors relating to
Purchaser’s purchase or sale of any of the Products; (4) for any actual or alleged breach of Vendor’s written warranty
for the Products; (5) for any actual or alleged infringement of any patent, trademark, copyright, trade secret, trade
dress or other intellectual property or publicity right of a third party in connection with the Products; (6) for the
Products actually or allegedly violating any Laws; or (7) pertaining to or in connection with the content of Vendor’s
packaging, labeling, or advertising of the Products. In the event of a claim, lawsuit, demand or other matter covered
by this Agreement, Purchaser shall notify Vendor in writing and provide Vendor the opportunity to assume full
responsibility for the defense and resolution of such claim, lawsuit, demand or matter; provided however, that (a)
Vendor, its agents, representatives, attorneys or insurers shall not bind the Purchaser Indemnitees in settlement
without the Purchaser Indemnitees’ prior written consent, and (b) the Purchaser Indemnitees shall be permitted to
participate in their own defense. If Vendor fails to take timely action to defend any such claim, suit, or demand, or at
Purchaser’s sole discretion, Purchaser or the Purchaser Indemnitees can defend such claim, suit, or demand at
Vendor’s expense. This Section shall survive the expiration or earlier termination of this Agreement.
3.1.5 INSURANCE
Vendor will maintain commercial general liability insurance at Vendor’s sole cost and expense. Such insurance will
be written with an insurer that has a rating from A.M. Best of at least "A." The commercial general liability insurance
will include bodily injury, property damage, products & completed operations liability, blanket contractual liability, and
personal injury and advertising liability and will provide for the investigation, defense, and satisfaction (by settlement
or otherwise) at no cost to Purchaser or Purchaser Indemnitees, of any liability, claim, loss, expense or fee asserted
against or incurred by Purchaser or Purchaser Indemnitees. Purchaser and its affiliated companies will be added as
an additional insured. In the event that the products liability coverage is provided by a separate policy and is on a
“claims-made” basis, Vendor shall maintain coverage for a minimum of one (1) year from the termination of this
Agreement and Purchaser shall specifically be named as an additional insured on the products liability policy. Such
insurance carried by Vendor will be primary and non-contributory to any insurance carried by Purchaser and will
contain a waiver of subrogation. Purchaser does not represent that the coverage and limits required hereunder will
be adequate to protect Vendor and such coverage and limits will not be deemed to be a limitation on Vendor’s liability
to Purchaser, if any, arising under this Agreement. Vendor will provide a certificate of insurance evidencing all of the
coverage described in this section; such certificate will be sent to Purchaser at riskmanagement@hbc.com.
SFA E-COMMERCE VENDOR STANDARDS MANUAL 10
REVISED 04-19-2018Purchaser will maintain an adequate amount of commercial property insurance at Purchaser’s sole cost and expense.
On written request, Purchaser will provide a certificate of insurance evidencing such coverage.
3.1.6 TITLE AND RISK OF LOSS
Products shall be shipped to Purchaser’s destination point (i.e., freight prepaid) and except for Products sold on a
consignment basis, title to Products, as well as risk of loss, shall remain with Vendor until the Products are received
by Purchaser. For Products sold on consignment, Vendor retains title to Product while it is in Purchaser’s possession
until a customer purchases such Product. Upon such purchase, Purchaser takes title to the Product until it is
delivered to the designated recipient.
3.1.7 PAYMENT AND CHARGEBACKS
(a) Payment terms for Vendor’s Products shall be set forth in the Order. Purchaser’s obligations to make payments
to Vendor shall be subject to any markdown, return or damaged goods allowance, advertising allowance or other
allowance agreed to by Purchaser and Vendor.
(b) Purchaser reserves the right to withhold any payments (or portions thereof) due to Vendor or its affiliates, without
penalty or forfeiture, that Purchaser disputes in good faith, whether under this Agreement or otherwise, including for
payment of any attorneys’ fees and other costs of defense incurred by Purchaser in connection with the defense of
any claim, suit, or demand for which Purchaser is entitled to indemnification from Vendor under Section 1.1.4, until
such dispute between Purchaser and Vendor is settled. Any claims for defective or infringing Products, shortages,
returns, damages, or any other claim of setoff asserted by Purchaser as result of Vendor’s failure to comply with
these terms and conditions of this Agreement or arising from any other claims by Purchaser against Vendor or its
affiliates will be charged back to Vendor or the amount thereof deducted from payments to be made to Vendor or its
affiliates or will be promptly refunded to Purchaser by Vendor, in Purchaser’s discretion. Vendor shall comply with
each Purchaser’s shipping, trading and routing manuals, guides and policies. Any Products delivered or shipped in
violation of Purchaser’s requirements, the terms and conditions of this Agreement or the Order will be subject to
deviation charges, handling charges and other reasonable costs, which will be charged back to Vendor.
3.1.8 TAXES
Vendor agrees and understands that Purchaser may collect sales taxes or other taxes, if any, on any sales of
Vendor’s Products at Purchaser’s sole discretion and given Purchaser’s analysis of the approach that is best as a
business and legal matter for Purchaser without regard to whether Vendor has a physical presence or nexus in any
particular jurisdiction.
3.1.9 INTELLECTUAL PROPERTY
Subject to this Agreement, Purchaser grants to Vendor the limited, non-exclusive, non-transferable, non-
sublicensable right to use, during the term of this Agreement, the trademarks and trade names (but not logos) of
Purchaser for the sole purpose of identifying Purchaser as a distributor of Products or any services. Vendor’s limited
license to use Purchaser’s trademarks or trade names shall terminate immediately without any notice upon the
cancellation of an Order or termination of this Agreement and Vendor shall immediately cease any and all uses of
Purchaser’s trademarks and trade names. Vendor shall not challenge Purchaser’s rights, title, interest and ownership
in or to any of Purchaser’s trademarks, logos, trade names, or other intellectual property rights. Any plans, ideas,
copyrights, designs, trade secrets, inventions (whether or not protectable), trade names, trademarks, service marks
or other material or Confidential Information developed by Vendor for Purchaser pursuant to this Agreement or an
Order, shall be the exclusive property of Purchaser (or such entity as Purchaser may indicate) and Purchaser shall
have the exclusive and comprehensive rights thereto (such as the right to register and protect such rights) without
any limitation, including but not limited to, any limitation as to time, territory or issue.
As necessary or appropriate for Purchaser to sell any Products, or services, or any goods included in any Order
through retail stores, website, catalogue, social media, or through other normal and customary merchandising
practices, Vendor grants to Purchaser a worldwide, perpetual, non-exclusive right to use and display Vendor’s brands
trademarks, service marks, trade names, logos, and any other text, graphics, icons, banner, copyrightable materials
or audiovisual features of advertising, through any distribution channel. If any Products, services, advertising material,
content or materials supplied by Vendor pertaining to its Products, services, or business embodies any intellectual
property rights (including, but not limited to, rights of publicity or work of authorship protected under U.S., Canadian or
foreign copyright laws), Vendor shall be responsible for securing rights and licenses necessary for the use and
exercise of such interests pursuant to these Terms and Conditions and represents and warrants herewith that it has
SFA E-COMMERCE VENDOR STANDARDS MANUAL 11
REVISED 04-19-2018obtained any and all such rights and interests. Purchaser shall remain solely responsible for the operation of its
business and control of the programming, content, and transactions in its retail stores, catalogues, websites, social
media, and all other distribution channels.
3.1.10 RIGHT TO INSPECT
Purchaser or its designated agent will have the right, at its option, to inspect goods before accepting delivery,
including the right to inspect samples at any time.
3.1.11 HAZARDOUS GOODS
Where the Purchaser has good cause at any time to believe that any goods ordered pursuant to the Order contain
defects or hazards which could create a substantial risk of injury to any person or property, upon the Purchaser’s
request, Vendor shall, at Vendor’s expense, use its best efforts to locate, identify, and recall such items, whether in
the possession of the Purchaser, or the Purchaser’s customers. Vendor, upon recalling such items, shall repair or
replace them or refund to retail purchasers their full retail price. All costs related to the foregoing will be the
responsibility of Vendor; and to the extent borne by Purchaser, Purchaser will be immediately reimbursed by Vendor.
3.1.12 INVOICING INSTRUCTIONS
The vendor must supply an 810 EDI invoice with specific information as described within the Accounts Payable
section of the "Vendor Standards Manual", located on Purchaser's website at www.saksincorporated.com under
"Vendor Relations." Our website may be updated periodically and any such updates shall be applicable to all Orders.
The Vendor will be paid via a system generated invoice if unable to provide a valid 810 EDI invoice.
3.1.13 RETURNS, CANCELLATION AND DISPOSAL OF PRODUCTS
You hereby agree that without prior authorization from You, and without further notice, Purchaser reserves the
following rights:
A. To cancel an Order, or any part thereof, by notice to Vendor if Vendor fails to comply with the terms and
conditions of this Agreement.
B. To cancel an Order if Vendor becomes insolvent or makes a general assignment for the benefit of creditors
or files or has filed against it a petition of bankruptcy or for reorganization, or pursues any other remedy
under any other law relating to the relief for debtors or in the event a receiver or administrator is appointed
for Vendor’s property or business.
C. To cancel an Order in whole or in part at any time, for its sole convenience, upon thirty (30) days prior
notice to Vendor. In such event, Purchaser shall pay to Vendor the amounts due for Products shipped in
accordance herewith prior to the Order cancellation date, except to the extent otherwise required for
Purchaser to comply with any Laws.
D. To accept, refuse, transfer to any third party or customer, and/or return all Products delivered which , in
whole or in part, (1) are not equivalent to samples submitted or examined; (2) are damaged; (3) are not fit
for resale; (4) do not conform to all specifications, terms and conditions of the Order; (5) are not in
accordance with all warranties and guarantees herein set forth; (6) are not in accordance with our Order
specifications of style, size, color, quantity and/or quality (including unauthorized substitutions); (7) are
shipped before the ship date or after the cancel date; (8) do not have valid purchase order numbers or
valid department numbers; or (9) deemed by Purchaser to be subject to refusal or transfer (each a
“Nonconforming Tender”). It is understood that this return policy shall apply to all such Nonconforming
Tenders at any time prior to resale, or after resale if Purchaser allowed the customer a refund or credit.
E. To cancel an Order, in whole or in part, in the event the goods are shipped after the cancel date, time being
of the essence.
F. To accept any part of a shipment, in accordance with Section 1.1.18 herein, without waiving the right to
refuse or reject the balance thereof by reason of Your failure to comply fully with the terms and conditions of
the Order.
SFA E-COMMERCE VENDOR STANDARDS MANUAL 12
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