nordstrom direct procedures manual...

Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts 2/1/2005

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Nordstrom Direct Procedures Manual ACCESSORIES/JEWELRY/GIFTS Table of Contents SECTION 1 – INTRODUCTION Introduction Contacts Working With Nordstrom Direct SECTION 2 – LEGAL DOCUMENTS Nordstrom Partnership Agreement Nordstrom Direct Purchase Order Terms and Conditions SECTION 3 – FABRIC TESTING Fabric Testing Fabric Test Report and ID Requirement ITS Intertek Testing Services MTL Merchandise Testing Labs In House Test Request Form Minimum Performance Requirements SECTION 4 – SAMPLING AND DEVELOPMENT Samples Sample Hangtag Photo Samples SECTION 5 – QUALITY STANDARDS AND CONTROLS Inspection Process Vendor Claims Classification of Defective Merchandise SECTION 6 – PACKAGING & LABELING REQUIREMENTS Polybags for Merchandise Barcode Stickers Unique Packaging Labeling Requirements Dept/Item/Style# Label Packaging Guidelines Jewelry Accessories Fine Jewelry Packaging Guidelines Wallets/Handbags/Totes/Backpacks Watches Sunglasses


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Nordstrom Direct Procedures Manual ACCESSORIES/JEWELRY/GIFTS Table of Contents (cont.) SECTION 6 – PACKAGING & LABELING REQUIREMENTS (cont.)

Gloves/Hats/Belts Pareos/Scarves/Wraps/Ponchos Hosiery/Socks/Slipper Socks Mens Ties Small Gifts Large Gifts Packaging Approval Process SECTION 7 – PACKING & SHIPPING Shipping Cartons Packing Slips Packing, Sealing and Marking Cartons Shipping ASN – Advance Shipment Notification Routing Bills of Lading Purchase Order Verification Appendix A: Specifics on Shipping Appendix B: Glossary of Shipping SECTION 8 – FINANCIAL Purchase Orders Invoices and Billing Information Non-compliance Offset Fees Example of Vendor Letter Example of Vendor History Reporting

Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts

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SECTION 1 INTRODUCTION Introduction Contacts Working With Nordstrom Direct


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Introduction to Our Procedures Manual Nordstrom Inc. remains committed to the founding principles of providing customers with the best quality, value, selection and service. The Nordstrom Direct Procedures Manual integrates all aspects required to successfully meet customer needs and efficiently move products through the supply chain. To highlight some of the essential elements required to achieve this goal, our manual details sampling requirements, quality standards and controls, labeling, legal requirements, packing and shipping. You, as our business partner, play an integral role in working with us to fulfill our mission. This manual provides the foundation for us to build a successful partnership and to provide superior quality merchandise to a rapidly growing segment of catalog and Internet consumers.


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Contacts Vendor Compliance Nordstrom Direct Traffic Dept. Phone (206) 303-6118 Phone (319) 846-4000 Fax (206) 303-6129 Fax (319) 846-4208 1700 7th Ave 7700 18th Street SW Suite 300 Cedar Rapids, IA 52404 Seattle, WA 98101 Nordstrom Direct Accounts Payable Technical Design Phone 1-206-303-6110 Phone (206) 303-6000 E-mail [email protected] Fax (206) 303-6962 1700 7th Ave 1700 7th Ave Suite 300 Suite 300 Seattle, WA 98101 Seattle, WA 98101 Nordstrom Inc. Accounts Payable Phone 1-877-444-1313 E-mail [email protected] P.O. Box 870 Seattle, WA 98111-0870

E-mail addresses for all Nordstrom Direct employees follow the format of:

[email protected]

Working with Nordstrom Direct


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The compliance topics listed below summarize main requirements involved in doing business with Nordstrom Direct.

• This document is only a summary and does not replace the Nordstrom Direct Procedures Manual. Main Requirements Internet Item Selection: All items chosen for any catalog titles are also offered for sale on the Internet website: www.nordstrom.com . Exclusive Catalog Styles: Styles selected for any catalog titles must not be sold to any other catalog. Cooperative Advertising: All vendors doing business with Nordstrom Direct must contribute 3% of the total cost of all purchases to advertising. This contribution ensures the quality of the presentation of all merchandise, which is advertised nationwide. Advertising includes the vendor’s name listed in catalog or Internet copy. Customer Returns Due to Manufacturing Defects: All merchandise returned by customers with manufacturing defects will be claimed back to the vendor. Defective merchandise will be returned to the vendor when received back from the customer, even if it is after the “selling season.” This agreement is intended to simplify the claims filing and resolution process and, most importantly, assists in resolving claims in a fair way. Vendors are required to sign a Defective Claims Agreement upon doing business with Nordstrom Direct. Freight: All deliveries must be made by surface, through our approved carriers unless otherwise specified by the buyer. Carrier listings may be found in the NORDSTOM.com Procedures Manual or located on the Nordstrom website www.nordstromsupplier.com under: Compliance Manual/Routing Guide/States. Shipment terms will be FOB, full paid freight, to the Nordstrom Direct Fulfillment Center #808 in Cedar Rapids, Iowa. Merchandise Back-Ups: Vendors must hold unconfirmed back-up orders equal to the initial buy quantities. Approximately two to three weeks after a book drops, Inventory Managers will contact vendors with the backup quantities needed. 100% back up is required four to six weeks from the time the backup order is confirmed. Successful items may require quantities in addition to the original back-up order. On-Time Delivery: Our commitment to customer service is dependent on the immediate availability of merchandise when the customer calls. The increased shipping and handling costs, high return rates on back-ordered items and general loss of credibility imply on-time delivery of all purchase orders is the highest priority. Sampling Nordstrom Direct requires multiple samples of each item being featured in the catalog or on the Internet site. All samples are considered a cost of doing business and are sent to Nordstrom Direct at the vendor’s expense. The vendor is responsible for normal product development costs, which include:

• Samples for buyer’s meeting, fit samples or review samples, size run samples and photo samples. • Base fabric testing and/or garment testing

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Sampling continued

• Lab dips • Fabric swatching • Packaging and labeling • Associated shipping costs

Vendors are required to provide product information and size specifications for all garments using the Nordstrom Direct forms.

Quality Nordstrom Direct is committed to offering the customer exceptional service, selection, quality and value. Suppliers are ultimately responsible for product quality. Only first quality goods that meet Nordstrom Direct performance specifications will be accepted. To ensure first quality merchandise is shipped to the customer all styles are subject to an audit at the fulfillment center. Product is audited for the following:

• Packaging and labeling • Fabric / Materials • Measurements • Sewing / Construction • Dirt / Oil • Color

If audit fails, Nordstrom Direct reserves the right to 100% inspect entire shipment at vendor’s expense. It is in the vendor’s best interest to perform their own inspections, as our fulfillment center inspection is costly. Current rates are $60.00 per man hour.

Vendor Compliance Dept # / Item # / Style # Labeling: All accessories, jewelry or gift items must include a sticker, hangtag or stamp directly on or attached to the item with the following information; Nordstrom Direct department #, Nordstrom Direct item # and vendor style #. Please refer to the Packaging and Labeling section of this manual for details on specific items being shipped. In addition to dept#/item#/style # labeling, all federally mandated care, content or country origin information should be present. Special Packaging: Most accessories, jewelry or gifts require additional packaging, including presentation gift boxes and/or special shipping cartons. For additional details please review the Packing and Shipping section of this manual. Barcode Stickers: All merchandise must be shipped with an Avery Dennison barcode sticker placed on the outer packaging of the item. Barcode stickers are ordered by the Nordstrom Direct buyer, but invoiced to the vendor. Invoice terms are Net 30 days. Advance Shipment Notification Forms (I.E. ASN): All vendors shipping merchandise to the Cedar Rapids Fulfillment Center must fax an “ASN” within 24 hours of each shipment leaving the vendor’s warehouse. A copy of the ASN is included in the Packing and Shipping Section of this manual. All shipments received that do not conform to our compliance program are subject to offset fees. Refer to our financial section of this manual for details.


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SECTION 2 LEGAL DOCUMENTS Nordstrom Partnership Agreement Nordstrom Direct Purchase Order Terms and Conditions


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The Nordstrom Partnership Guidelines

At Nordstrom, we recognize that our success is based on the quality of our relationships with customers, employees, manufacturers, agents, vendors and communities. To maintain the high caliber of these relationships and to achieve our goal of always providing the best value product in the most equitable manner, we have established standards for our business Partners. In communicating these guidelines, we hope to identify potential Partners who share our commitment to quality products, quality business principles and quality community relationships. We will only engage business Partners who demonstrate a commitment to contribute to the improvement of working conditions and strive to meet our requirements stated in the Nordstrom Partnership Guidelines.

Legal Requirements Nordstrom expects all of its business Partners (“Partners” as used in these Partnership Guidelines shall include all agents, vendors, manufacturers, factories, suppliers, and subcontractors) to comply with the applicable laws and regulations of the United States and those of the respective country of manufacture or exportation. All products must be accurately labeled and clearly Identified as to their country of origin. The language to be used for purposes of notice and interpreting the meaning of these guidelines shall be English.

Forced Labor Nordstrom will not conduct business with any Partner that uses involuntary labor of any kind; including prison labor, indentured labor, or forced labor. Employees shall not be required to lodge “deposits” or identity papers upon commencing employment with the company.

Child Labor Partners will not employ anyone under the age of 15 and/or younger than the age for completing compulsory education, or under minimum ages established by applicable law in the country of manufacturer, if higher than the age of 15. Furthermore, Partners of any kind, will not expose anyone under the age of 18 to situations in or outside the workplace that are hazardous, unsafe, or unhealthy and will provide adequate protection from exposure to hazardous conditions or materials.

Harassment and Abuse Nordstrom expects our Partners to treat every employee with respect and dignity. No employee will be subject to any physical, sexual, psychological or verbal harassment or abuse. Partners will not use monetary fines as a disciplinary practice. Furthermore, workers must be free to voice their concerns to Nordstrom or Nordstrom appointed staff without fear of retaliation by factory management.

Wages and Benefits Partners shall set wages, overtime pay and legally mandated benefits and allowances in compliance with all applicable laws. Workers shall be paid at least the minimum legal wage or wage that meets local industry standards, whichever is greater.

Nondiscrimination Nordstrom firmly believes people are entitled to equal opportunity in employment. Although the company recognizes cultural differences exist, Nordstrom will not pursue business relationships with Partners who discriminate in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement on the basis of gender, race, religion, age, disability, sexual orientation, nationality, marital or maternity status, work or personal affiliations, political opinion or social or ethnic origin.


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The Nordstrom Partnership Guidelines

Health and Safety Nordstrom seeks Partners who provide written standards for safe and healthy work environments for their workers, including adequate facilities and protections from exposure to hazardous conditions or materials. These provisions must include safe and healthy conditions for dormitories and residential facilities, and they must comply with local health and safety laws and standards.

Hours of Work/Overtime While permitting flexibility in scheduling, we will identify local legal limits on work hours and seek Partners who do not exceed them except for appropriately compensated overtime. While we favor Partners who utilize less than 60 hours a week, we will not use Partners, who, on a regular basis, require in excess of 48 hours per week and 12 hours of overtime per week, or as permitted by applicable law, whichever is lower.

Employees should be allowed one day off in seven.

Environment Partners must demonstrate a regard for the environment, as well as the compliance with applicable environmental laws. Further, Nordstrom actively seeks Partners who demonstrate a commitment to progressive environmental practices and to preserving the earth’s resources.

U.S. Customs Partners will comply with applicable U.S. Customs importing laws and, in particular, will establish and maintain programs and documentation to support country of origin production verification, to avoid illegal transshipping.

Documentation and Inspection Nordstrom intends to monitor compliance with our Partnership Guidelines and to undertake on-site inspections of Partners’ facilities. Partners will maintain on file all documentation necessary to demonstrate compliance and will authorize Nordstrom and its designated agents (including third parties) to engage in announced and unannounced monitoring activities to ensure compliance, including confidential employee interview. Nordstrom will review and may terminate its relationships with any Partner found to be in violation of the Partnership Guidelines.

Freedom of Association Partners will respect workers rights to freedom of association and collective bargaining. Subcontracting and Changes in Manufacturers, Factories or Suppliers Partners will not utilize subcontractors for the production of Nordstrom products or components without written approval and authorization from Nordstrom, and only after the subcontractor has agreed to comply with the Partnership Guidelines. Partners will not change manufacturers, factories, subcontractors or suppliers for the production of Nordstrom products without written approval and authorization from Nordstrom and only after the new factory, subcontractor, or supplier has agreed in writing to comply with the Partnership Guidelines. Change of Control Partners shall promptly notify Nordstrom in writing if the ownership of the Partner changes. The new owners of Partner shall promptly agree to comply with the Partnership Guidelines.


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NORDSTROM DIRECT TERMS AND CONDITIONS OF PURCHASE ORDER

The following terms and conditions are a part of each purchase order submitted by Nordstrom Direct, Inc. (“Nordstrom Direct” or “Purchaser”), formerly known as Nordstrom.com, and are binding upon Seller. ACCEPTANCE BY SELLER IS LIMITED TO THE TERMS OF THE PURCHASE ORDER AND THESE TERMS AND CONDITIONS. PURCHASER OBJECTS TO ANY DIFFERENT OR ADDITIONAL TERMS IN SELLER’S ACCEPTANCE OR ANY OTHER DOCUMENT OR FORM TRANSMITTED ON BEHALF OF SELLER, UNLESS PURCHASER’S WRITTEN CONSENT IS FIRST OBTAINED. Purchaser’s objection to different or additional terms shall not be waived by acceptance of any merchandise or by payment of any invoice. 1. Acceptance of a Nordstrom Direct purchase order, or performance of work in connection therewith, or shipment of merchandise to Nordstrom Direct or any customer of Nordstrom Direct, constitutes Seller’s agreement to all of the following: (i) the terms and conditions set forth herein and in the Nordstrom Direct Procedures Manual, located on Purchaser’s website at www.nordstromsupplier.com; (ii) the terms and conditions set forth in the Routing Guide, located on Purchaser’s website at www.nordstromsupplier.com; (iii) for international shipments for which Nordstrom, Inc. is the importer of record, including shipments through the Nordstrom Product Group (“NPG”) division of Nordstrom, Inc., the terms and conditions set forth in the NPG Supplier Procedures Manual and the Nordstrom International Packing and Shipping Guide; and (iv) for purchase orders providing for shipment of merchandise directly to Purchaser’s customers, the terms and conditions set forth in the Vendor Operations Specification for the Nordstrom Direct Drop Ship Program (“Drop Ship Program”). For information concerning the Drop Ship Program contact Nordstrom Direct Vendor Compliance at (206) 303-6118. The provisions of these terms and conditions, the Nordstrom Direct Procedures Manual, the Routing Guide, the Nordstrom International Packing and Shipping Guide, the NPG Supplier Procedures Manual and the Drop Ship Program, may be modified by Purchaser at any time. Such modifications will be posted on the Purchaser’s website or otherwise provided to Seller, and shall be binding upon the parties from the date of such posting or provision to Seller. 2. Purchaser may utilize purchase orders in writing, by facsimile or by electronic transmission, including the electronic data interchange system (“EDI”) in accordance with published industry guidelines and the requirements of the Nordstrom Direct Procedures Manual. Verbal orders will not be valid unless confirmed with a written or electronic purchase order. Purchaser will not assume liability for any merchandise shipped to it or upon which work is commenced by Seller prior to receipt by Seller of a duly authorized purchase order, except to the extent of any authorized Production Commitment issued by Purchaser to Seller. Each party shall be responsible for its own costs related to EDI systems and transmissions and shall maintain security procedures sufficient to ensure that EDI transactions are authorized and protected against improper access. 081800.0021/929913.5


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3. In the event Seller is unable to deliver any part or all of the merchandise called for by any purchase order, Seller agrees to notify the Purchaser immediately. Such notice will not limit the remedies available to Purchaser or the liability of Seller for nonperformance. 4. Purchaser or Purchaser’s agent may refuse delivery or return the merchandise F.O.B. Purchaser’s dock for: a. Shipments (i) made before the earliest ship date or “Not Before Date,” or after the cancel

date or “Not After Date,” specified in the purchase order, or (ii) shipped prior to or after the “Delivery Date” specified in the purchase order, in either case without the prior approval of Purchaser, time being of the essence of each purchase order.

b. Shipments of less than or in excess of quantities ordered. c. Merchandise which is not according to sample or which are not specified in the purchase

order. d. Merchandise which is not as represented or as warranted. e. Shipments which are not in compliance with the applicable provisions of the Nordstrom

Direct Procedures Manual, the Nordstrom International Packing and Shipping Guide, the Routing Guide, the NPG Supplier Procedures Manual and the Drop Ship Program, including without limitation all quality standards, transportation terms and conditions, packing instructions and invoicing instructions.

f. Merchandise which for any reason, except payment of applicable duties and tariffs, will not be cleared for entry by U.S. Customs.

g. Merchandise which is recalled for any reason. 5. All merchandise furnished under any purchase order shall be subject to inspection and testing by representatives of Purchaser, its customers or agents, and may be rejected and returned to Seller at Seller’s cost when found to be defective, or otherwise subject to return as set forth above, at any time prior to resale, or at any time after resale if Purchaser’s customer is allowed a refund or credit. If a shipment, or any portion of a shipment, is determined by sampling procedures to include merchandise that is defective or otherwise subject to return as set forth above, the entire shipment or portion may be rejected and returned to Seller at Seller’s cost. At the option of Purchaser in its sole discretion, any returned merchandise or shipment shall be subject to refund, repair or replacement by Seller, at Seller’s cost. Payments for merchandise prior to inspection shall not constitute acceptance and Purchaser reserves the right to hold for Seller or return to Seller, at Seller’s expense, any rejected merchandise. 6. Seller warrants that the merchandise shipped under any purchase order is fit and safe for the use for which it was manufactured, that to the extent applicable the merchandise is capable of accurately processing date and time data, and that said merchandise or the resale thereof by 081800.0021/929913.5


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Purchaser does not and will not violate any laws, regulations, orders or ordinances of the country of origin or of the United States or any state or any agency or political subdivision thereof. 7. Seller warrants that it does not and will not in violation of applicable law, custom or practice (a) discriminate in hiring on the basis of race, color, national origin, gender, religion or sexual orientation, or (b) utilize child labor, prison labor or indentured or forced labor in the operation of its business. 8. Seller warrants that the merchandise shipped under any purchase order, including packaging and labeling: (a) was produced in strict compliance with all applicable laws, regulations, orders and ordinances of the country of origin and of the United States and any state, or any agency or political subdivision thereof, including without limitation any applicable environmental or hazardous substance laws and regulations; (b) was produced in strict compliance with all applicable requirements of the Federal Fair Labor Standards Act, as amended, and with all applicable regulations and orders of the United States Department of Labor; (c) was produced in strict compliance with all applicable requirements of the National Labor Relations Act and other federal, state and local wage and hour and wage payment laws, and with all applicable regulations and orders issued under any of the foregoing; (d) does not and will not infringe any patent, trademark, trade name, copyright, trade secret or other similar right, or utilize any manufacturing or administrative process that would infringe any such right; (e) is accurately labeled and clearly identifies the country of origin; and (f) is labeled in accordance with and complies in all respects with any and all applicable federal, state and local laws, regulations, orders and ordinances, including without limitation any applicable rules of the Federal Trade Commission, the Consumer Products Safety Commission and the Department of Health, Education and Welfare, including care labeling requirements, and the requirements of each of the following Acts to which it may be subject: The Federal Food, Drug and Cosmetic Act, the Wool Products Labeling Act of 1939, the Fair Packaging and Labeling Act, the Fur Products Labeling Act, the Textile Fiber Products Identification Act, the Federal Hazardous Substances Act and the Flammable Fabrics Act. 9. Seller agrees to defend (with counsel acceptable to Purchaser), indemnify and save harmless the Purchaser from any and all claims, suits, liabilities, damages, losses or expenses, including attorneys’ fees, asserted against or incurred by Purchaser by reason of, or arising out of or occurring in connection with (a) any breach or alleged breach of any of these terms and conditions, the provisions of any purchase order, or the applicable provisions of the Nordstrom Direct Procedures Manual, the Routing Guide, the Nordstrom International Packing and Shipping Guide, the NPG Supplier Procedures Manual or the Drop Ship Program, or any representations or warranties of Seller made herein or in any purchase order or otherwise, (b) any act or omission of Seller, or the servants, agents or subcontractors of Seller, in the furnishing of goods or in the performance of work under any purchase order, or (c) the possession or use of Seller’s merchandise by customers of Purchaser or others. All indemnification obligations of 081800.0021/929913.5


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Seller hereunder shall survive termination or cancellation of any purchase order. Seller agrees that Purchaser may maintain records of Seller’s compliance with the representations and warranties of Seller made in any purchase order or otherwise and that Purchaser may at any time, upon notice to Seller, undertake inspection of Seller’s facilities in order to determine such compliance. Seller agrees to maintain insurance in full force and effect to fulfill Seller’s indemnification obligations hereunder, and will furnish Purchaser with certificates of insurance evidencing coverage for Commercial General Liability Insurance including Contractual and Products Liability, on an occurrence basis, with at least $2,000,000 combined single limit per occurrence, and in the aggregate, and including Vendor’s Endorsement naming Purchaser as an additional insured. By requiring insurance herein, Purchaser does not represent that coverage and limits will be adequate to protect Seller, and such coverage and limits shall not be deemed as a limitation on Seller’s liability hereunder. 10. Seller represents and warrants that the prices and terms specified in any purchase order are no less favorable to the purchaser than any prices or terms upon which Seller sells or offers to sell to others goods substantially of the same kind as ordered by Purchaser. If at any time prior to resale of the merchandise by Purchaser (other than to an affiliate), goods substantially of the same kind as ordered by Purchaser are sold or offered for sale by Seller at lower prices or on terms more favorable to a third party than those stated in the purchase order, the prices and terms in the purchase order shall be automatically revised to equal the lowest prices and most favorable terms at which Seller shall have sold or shall have offered such goods and payment shall be made accordingly, or at the option of Purchaser, the merchandise may be returned to Seller, at Seller’s cost, for a full refund of the purchase price. In the event Purchaser shall become entitled to such lower prices Seller shall notify Purchaser of such lower prices, and if Purchaser shall have made payment at any price in excess thereof, Seller shall promptly refund the difference in price to the Purchaser. Seller agrees to meet any lower price offered by any competitor of Seller for goods substantially of the same kind as ordered by Purchaser or accept cancellation of the purchase order by Purchaser. Unless otherwise provided in the purchase order, prices for domestic shipments include all charges for packaging, boxing, crating and freight, F. O. B. destination, and prices for international shipments include all charges for packaging, boxing, crating and inland freight, F. O. B. port of export. 11. Purchaser reserves the right to cancel all or any part of any purchase order which has not actually been shipped by Seller in the event Purchaser’s business is interrupted because of strikes, labor disturbances, lockout, riot, fire, act of God, or the public enemy, or any other cause, whether like or unlike the foregoing, if beyond the reasonable efforts of the Purchaser to control. Seller's timely performance under any purchase order shall not be excused or deemed to have been made impracticable by reason of any delay or failure to perform by Seller or any agent, subcontractor or supplier of Seller, caused by or related to any computer system incompatibility or inability to accurately process date and time data. 081800.0021/929913.5


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12. A waiver of or failure to perform any one or more of the conditions of any purchase order shall not constitute a waiver of or an excuse for nonperformance as to any other part of these terms and conditions or any purchase order. 13. All dating except “end of month” begins at the date on which the merchandise is received. “End of month” terming for shipments received after the 25th of the month will be considered next month’s business. Discount terms begin with the receipt of invoice or goods, whichever is later. 14. In addition to any other remedies available to Purchaser, failure to comply with these terms and conditions, the provisions of any purchase order, or the applicable provisions of the Nordstrom Direct Procedures Manual, the Routing Guide, the Nordstrom International Packing and Shipping Guide, the NPG Supplier Procedures Manual or the Drop Ship Program, will result in offset charges and handling fees being charged to Seller. In any dispute under any purchase order or these terms and conditions, whether or not litigation is commenced, the prevailing party shall be entitled to its costs and expenses incurred, including reasonable attorneys’ fees. The rights and remedies herein expressly provided shall be in addition to any other rights and remedies given by law, including without limitation the right to recover all incidental and consequential damages. All warranties, representations and guaranties made by Seller herein are in addition to any and all express or implied warranties provided by law and shall survive termination or cancellation of any purchase order. 15. All merchandise for which Nordstrom Direct is the Purchaser may be resold to Nordstrom, Inc. or its affiliates. Seller acknowledges and agrees that all covenants, representations and warranties of Seller hereunder, and all express and implied warranties with respect to such merchandise, are also for the benefit of and extend to any affiliates of Purchaser or Nordstrom, Inc. Seller agrees that Nordstrom, Inc., or any of its affiliates, shall be entitled to exercise any rights of the Purchaser and to make any claims and return any merchandise directly to Seller pursuant to the terms of any purchase order. 16. In the event of any proceeding, voluntary or involuntary, in bankruptcy or insolvency by or against the Seller, including any proceeding under the United States bankruptcy laws, or any bankruptcy, insolvency or receivership laws of any state or any foreign country, or any political subdivision thereof or in the event of the appointment with or without Seller’s consent of a receiver or an assignee for the benefit of creditors, Purchaser may, at its option, cancel any purchase order as to any undelivered portion of the merchandise. 17. Seller agrees that it will not use any trademark, service mark or trade name owned or controlled by or licensed to Purchaser or any of its affiliates, or used by Purchaser or its affiliates in connection with any products, lines, departments or other goods or services of Purchaser or its 081800.0021/929913.5


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affiliates, including but not limited to “Nordstrom,” “Nordstrom Rack,” “Nordstrom.com,” Nordstrom Direct,” “Façonnable” and “Last Chance,” except in connection with merchandise shipped to Purchaser in accordance with a valid purchase order. Seller agrees that all trademarks and trade names of Purchaser belong to or are licensed to Purchaser and Seller will make no claim of right to use or of ownership nor will Seller attempt to register any such trademark or trade name. Seller agrees that merchandise rejected or returned for any reason pursuant to the terms of any purchase order, whether or not such rejection is disputed by Seller, including but not limited to merchandise rejected or returned due to shipment after the delivery date or cancel date specified in the purchase order, will not be resold or otherwise distributed by Seller unless all labels, tags, logos, monograms and other items or characteristics identifying Nordstrom, Nordstrom Rack, Nordstrom.com, Nordstrom Direct, Façonnable, Last Chance, or any other trademark, service mark or trade name owned or controlled by or licensed to Purchaser or its affiliates, or used by Purchaser or its affiliates in connection with any products, lines, departments or other goods or services of Purchaser or its affiliates, have first been removed. 18. Seller agrees that all merchandise shipped under any purchase order may be advertised and sold by Purchaser (or any of Purchaser’s affiliates) at any retail facilities of Purchaser (or any of Purchaser’s affiliates), or by means of catalogs, the Internet, or any other electronic or other medium. 19. Each purchase order and the rights and obligations of the parties hereunder shall be determined in accordance with the laws of the State of Washington and shall not be subject to or governed by the U.N. Convention on Contracts for the International Sale of Goods. If litigation arises under any purchase order or these terms and conditions, or as a consequence of any transaction contemplated or resulting from this or either party’s performance or breach thereof, jurisdiction and venue of such litigation shall be in the Superior Court for the State of Washington for King County, or the United States District Court for the Western District of Washington in Seattle, at the option of Purchaser, and Seller hereby consents to such jurisdiction and venue. Any award or judgment of any of said courts may be entered and enforced in any other domestic or foreign court of competent jurisdiction, and shall be awarded full faith and credit. 20. No claim, action or demand arising out of the transactions under any purchase order may be brought by Seller more than one year after the cause of action has accrued. 21. Seller hereby assigns to Purchaser all assignable warranty rights with respect to the merchandise in each purchase order, including without limitation all rights of Seller under warranties of any manufacturer of any of the merchandise or any part or component thereof. 081800.0021/929913.5


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22. Each purchase order is enforceable by Purchaser directly against Seller, regardless of whether the purchase order was submitted directly to Seller by Purchaser or was submitted to Seller by another party on behalf of Purchaser. No such other party shall have any authority to act for Purchaser, bind Purchaser to any agreements or modifications or otherwise act as agent for Purchaser. Seller shall not assign or transfer any purchase order, or any interest therein, without the prior written consent of Purchaser, and any attempted assignment made without such consent shall be null and void. Invoicing Instructions All invoices must comply with the requirements of the applicable provisions of the Nordstrom Direct Procedures Manual, the NPG Supplier Procedures Manual and the Drop Ship Program. No payment will be made by Purchaser to Seller until Seller has completed and returned all vendor setup forms required by Purchaser. Transportation Terms and Conditions A. Shipping mode specified in any purchase order must be adhered to exactly unless permission to deviate is given by Purchaser’s Buyer, the Nordstrom Traffic Manager, or NPG Logistics, or if there is a written agreement or exception signed by Purchaser on file. B. Notwithstanding any agreement to pay freight or other transportation charges, delivery will not be deemed complete and all risk of loss shall remain with Seller until the merchandise has been actually received and accepted by Purchaser or Purchaser’s designated agent or customer. C. All C.O.D. shipments will be refused. D. For all domestic shipments: (i) Authorized carrier selection should be made from the Routing Guide. Any questions should

be directed to the Regional Traffic Department. (ii) Orders shipped F.O.B. city of purchase or any specific city and/or state will be delivered

free of charge to Purchaser’s consolidator and will be considered F.O.B. consolidator. Advance charges to the consolidation point will be at Seller’s expense. Orders shipped F.O.B. factory, or EX factory, will not be free of charge to Purchaser’s consolidator and freight charges will be the responsibility of the Purchaser from the shipper’s door. Orders shipped F.O.B. Purchaser’s distribution center will be delivered free of charge to Purchaser’s receiving facility and total freight charges will be at the Seller’s expense.

(iii) In addition to any other remedies available to Purchaser, any deviation from the terms of the purchase order, the Routing Guide, or the Nordstrom Direct Procedures Manual, will result in Seller being charged offset charges for freight expenses, handling fees, storage fees and

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other expenses incurred by Purchaser or Purchaser’s refusal agent, and may result in the sale of

any rejected and unclaimed merchandise to a salvage agent for recoupment of expenses. (iv) Merchandise must be packed, shipped and described on bills of lading in accordance with

applicable freight tariffs, and shipment must be without declared value EXCEPT when shipping U.S. Mail or Purchaser’s authorized small package carrier where the shipper declares

value and also prepays for the carrier insurance coverage fees. Any deviations will result in offset charges and handling fees being charged to Seller.

(v) Prepaid shipments: All shipments to Purchaser via air and surface carrier must be sent “Collect,” or “Consignee Billing,” except U.S. Mail shipments. Purchaser will not reimburse Seller for “prepaid” shipments.

(vi) Shipping surface: Merchandise not authorized for air shipment must follow Purchaser’s shipping instructions for surface shipment. Seller is responsible for marking “surface” on the top of general bill of lading. An air bill which is used for surface shipment must have the special services requested box marked.

E. For all international shipments: (i) Authorized freight forwarder selection should be made from the NPG Supplier Procedures

Manual. For all international shipping related questions, contact NPG Logistics. To receive a copy of the NPG Supplier Procedures Manual or the Nordstrom International Packing and Shipping Guide, contact NPG Quality Assurance.

(ii) In addition to any other remedies available to Purchaser, any deviation from the terms of the purchase order, the Nordstrom Direct Procedures Manual, the Nordstrom International Packing and Shipping Guide or the NPG Supplier Procedures Manual, will result in Seller being charged offset charges for freight expenses, handling fees, storage fees and other expenses incurred by Purchaser. If a purchase order provides for shipment via ocean and Seller ships the merchandise via air in order to meet the delivery date, Seller shall reduce Purchaser’s first cost of the merchandise prior to shipment by an amount at least equal to the difference in the cost of shipment via air over the cost of shipment via ocean.

(iii) The harmonized system (“HS”) number provided by Purchaser in any purchase order is advisory and is subject to change in accordance with the final determination by U.S. Customs at time of importation/liquidation of the style. Refer to the NPG Supplier Procedures Manual for additional information on the HS pre-classification program.

081800.0021/929913.5

Revised November ___, 2004


0

SECTION 3 FABRIC TESTING Fabric Testing Fabric Test Report and ID Requirement ITS Intertek Testing Services MTL Merchandise Testing Labs In House Test Request Form Minimum Performance Requirements


1

Fabric Testing Minimum Performance Requirements for Base Fabrications In order to ensure that products will perform to customer expectations, we have developed the following process: Development Fabric, Component and Trim Testing – All base fabrics, components and trims must meet our minimum performance standards. Vendors should not show buyers samples without verifying satisfactory test results. A passing test report from the mill, a certified laboratory or an independent lab must be provided upon adoption of the style. IT IS THE RESPONSIBILITY OF THE VENDOR TO: Supply the test report to the buyer upon adoption of the style. Please identify the style on the report with your submittal If you cannot produce a satisfactory test report from the fabric mill or from an AATCC/ASTM certified lab, you may submit 2 yards of fabric plus one yard for each additional colorway for testing to one of the independent labs with whom Nordstrom Direct has a testing package:

ITS - Intertek Testing Services 70 Diamond Road Springfield, NJ 07081 Contact: Levine Noss ([email protected]) TEL: (973) 924-2568 FAX: (973) 379-5193 MTL - Merchandise Testing Labs 244 Liberty St Brockton, MA 02301 Contact: Missy Strong ([email protected]) TEL: (508) 897-2666 FAX: (508) 580-2669

Nordstrom Product Group Quality Assurance Lab – We have limited testing capabilities through NPG QA; but if prior approval is given, we will conduct testing in these facilities for small programs or special styling. Please note the fee for NPG QA testing is $275. IT IS THE RESPONSIBILITY OF THE VENDOR TO: Pay lab testing fees directly to the lab that is providing the testing service. Please see fee schedule that follows this section. Fabric Identification and Reference Standard – A fabric swatch, color standards and detailed fabric specification must be submitted to the Product & Fit Specialist with a copy of the test report. Production Fabric, Component and Trim Testing – Vendors are responsible to ensure that all colors of production fabrics, components and trims meet or exceed our minimum performance standards prior to cutting production. A copy of the test report must be submitted along with the reference standard. IT IS THE RESPONSIBILITY OF THE VENDOR TO: Supply the fabric ID form and swatches of each colorway, trim and component to the Product & Fit Specialist.


2

Fabric Testing (cont.)

Fabric/Product Testing - Vendors must test all products in garment form to ensure compatibility of components and verification of care instructions. Nordstrom Direct will randomly test products to ensure performance. Independent Laboratory Package Rates and Requirements Independent labs (ITS and MTL) require 2 yards of fabric OR a complete garment and one yard of fabric. Additional colorways require only one yard of fabric. The Test Request Form must be completed and submitted with each fabric for testing. Rates are as follows: Test Base Fabric, Knit down or Garment including: $120

Fabric Weight Fabric Thread Count Yarn Size Flammability (16 CFR 1610) Dimensional Stability Colorfastness to Laundering or Dry Cleaning Colorfastness to Light Colorfastness to Crocking Colorfastness to Pool/Sea Water (swimwear) Appearance after Laundering

Additional Colorways are only tested for: $65 Dimensional Stability Colorfastness to Washing or Dry Cleaning Colorfastness to Light Colorfastness to Crocking

Leather Testing: $100 Colorfastness to Light Colorfastness to Crocking Spewing Leather Hardware Compatibility

Socks and Hosiery Testing: $150 Dimensional Stability Colorfastness to Washing or Dry Cleaning Colorfastness to Crocking Abrasion Appearance after Laundering


3

Fabric Test Report and ID Requirement

Required Testing Fabrics must meet all of the Minimum Performance Standards but testing will only be required on the most critical areas affecting performance. Following are the required tests for each product type:

Fabric Qualities Children’s Sleepwear

General Apparel

Leather & Suede

Socks & Hosiery Scarves Swimwear

Fabric Weight Fabric Thread Count Yarn Size Flammability

X X X

X X X

X

Flammability (16 CFR 1610) Flammability (16 CFR 1614/1615) Dimensional Stability

X

X X X

Shrinkage/Spirality Colorfastness

X X X X

Colorfastness to Laundering or Dry Cleaning Colorfastness to Light Colorfastness to Crocking (dry/wet) Color fastness to Pool/Seawater (swimwear) Appearance

X X X

X X X

X X

X

X

X X X X

Appearance after Laundering or Dry Cleaning Leather Tests

X X X X

Spewing Leather Hardware Compatibility Abrasion

X X

Abrasion (Socks) X


4

ITS - INTERTEK TESTING SERVICES Nordstrom Direct

Fabric Test Request Form USA TEL: 1-973-346-5500 FAX: 1-973-379-5232 HONG KONG TEL: 852-2173-8888 FAX: 852-2785-7998 CHINA (GUANGZHOU) TEL: 86-20-8396-6868 FAX: 86-20-8222-7490/8135 CHINA (SHANGHAI) TEL: 86-21-6485-0139 FAX: 86-21-6485-0592 CHINA (TIANJIN) TEL: 86-22-8371-2202 FAX: 86-22-8371-2205 INDIA (MUMBAI) TEL: 91-22-5597-6900 FAX: 91-22-5595-2630/37 INDIA (NEW DELHI) TEL: 91-11-2631-9028 FAX: 91-11-2631-9512 INDIA (TIRUPUR) TEL: 91-421-223-2803/-6FAX: 91-421-223-2800 INDONESIA TEL: 62-21-391-8342 FAX: 62-21-391-8345 KOREA (FITI) TEL: 82-2-3299-8021 FAX: 82-2-962-0679 MAURITIUS TEL: 230-698-0343 FAX: 230-697-5402 MEXICO TEL: 52-55-5063-7190 FAX: 52-55-5211-5030 PHILIPPINES TEL: 63-2-819-5841/8 FAX: 63-2-817-2994 PORTUGAL TEL: 351-22-999-8080 FAX: 351-22-999-8081 S. AFRICA TEL: 27-21-415-7000 FAX: 27-21-418-5127 SINGAPORE TEL: 65-6388-8666 FAX: 65-6382-6268 TAIWAN TEL: 886-2-2597-9955 FAX: 886-2-2595-8645 THAILAND TEL: 66-2-939-6554/0661 FAX: 66-2-939-0668 TURKEY TEL: 90-212-471-0065 FAX: 90-212-471-1172 UNITED KINGDOM TEL: 44-116-263-0330 FAX: 44-116-263-0311/2 BANGLADESH TEL: 88-02-8156226-28 FAX: 88-02-8156579-80 ITALY TEL: 39-055-790873 FAX: 39-055-791198

BUYER INFO Date Submitted: P.O. #: Item #: Department #: Buyer: Season: Manufacturer/Vendor: Rep / Agent: Submitter and Address SAMPLE: Knit Woven Coordinate Woven Top/Bottom Sweater Other Style Number: Country of Origin: Sample Description: Size: End Use (Pant, Jacket, Lining etc.): Fabric Type (Knit, Woven, Jersey, Twill etc.): Construction (20/1’s; 152 x 64 etc.): Fabric Weight: Colors/Prints: Print/Dye Type: Pigment Sulfur Indigo Reactive Other___________________ Finish: Enzyme Wash Silicone Wash Water repellent Wrinkle Resistant Napped/Brushed/Sanded/Sueded Compacted/Sanforized Other__________________ Labeled Fiber Content: Care Label:

TEST REQUIRED NPS#___________________ Complete Nordstrom Direct Package Fabric Weight Flammability Colorfastness to Laundering Colorfastness to Light Colorfastness to Crocking Appearance After Laundering Verify Care Instructions Re-Test_________________________ Previous Report #______________________________

Additional Information:_______________________________________________________________ _________________________________________________________________________________ BILLING INFORMATION Bill to Company: Contact Person: Address: Phone: Fax: E-mail:

LAB USE ONLY CLIENT REFERENCE NO.: AWB NO. LAB NO.

TESTING APPROVED BY: RTN DATE DATE IN BOX NO. DATE DUE AUTHORIZED SIGNATURE WITH CHOP: FORM NO._____________________


5

MTL - MERCHANDISE TESTING LABS Nordstrom Direct

Fabric Test Request Form

USA TEL: 508-580-8353 FAX : 508-580-2669 HONG KONG TEL: 852-2-494-1222 FAX: 852-2-480-6666 TAIWAN TEL: 886-2-893-6903 FAX: 886-2-895-9209 SINGAPORE TEL: 65-286-8366 FAX: 65-283-8966 PHILIPPINES TEL: 632-824-2825 FAX: 632-824-1430 CHINA TEL: 86-216-489-0245 FAX: 86-216-489-0042 SRI LANKA TEL: 94-173-9846 FAX: 94-173-9548 INDONESIA TEL: 6221-563-8320 FAX: 6221-563-8322 JAPAN TEL: 81-3-3241-7319 FAX: 81-3-3245-0773 ENGLAND TEL: 44-133-238-2122 FAX: 44-133-236-3700 ITALY (ICQ) TEL: 39-31-768-403 FAX: 39-31-756-106 KOREA (KOTITI) TEL: 822-567-7591 FAX: 822-557-3739 INDIA TEL: 91-11-915-44661 FAX: 91-11-915-44670 MEXICO TEL: 52-2266-0560-2 FAX: 52-2266-0563

BUYER INFO Date Submitted: P.O. #: Item #: Department #: Buyer: Season: Manufacturer/Vendor: Rep / Agent: Submitter and Address SAMPLE: Knit Woven Coordinate Woven Top/Bottom Sweater Other Style Number: Country of Origin: Sample Description: Size: End Use (Pant, Jacket, Lining etc.): Fabric Type (Knit, Woven, Jersey, Twill etc.): Construction (20/1’s; 152 x 64 etc.): Fabric Weight: Colors/Prints: Print/Dye Type: Pigment Sulfur Indigo Reactive Other___________________ Finish: Enzyme Wash Silicone Wash Water repellent Wrinkle Resistant Napped/Brushed/Sanded/Sueded Compacted/Sanforized Other__________________ Labeled Fiber Content: Care Label:

TEST REQUIRED NPS#___________________ Complete Nordstrom Direct Package Fabric Weight Flammability Colorfastness to Laundering Colorfastness to Light Colorfastness to Crocking Appearance After Laundering Verify Care Instructions Re-Test_________________________ Previous Report #______________________________

Additional Information:_______________________________________________________________ _________________________________________________________________________________ BILLING INFORMATION Bill to Company: Contact Person: Address: Phone: Fax: E-mail:

LAB USE ONLY CLIENT REFERENCE NO.: AWB NO. LAB NO.

TESTING APPROVED BY: RTN DATE DATE IN

BOX NO. DATE DUE AUTHORIZED SIGNATURE WITH CHOP: FORM NO._____________________


6

NORDSTROM DIRECT

IN HOUSE TEST REQUEST FORM • TEST NO. DSD________

Date In: Date Due: Time: Date Out: QA Engineer: PRODUCTION INFORMATION

Nordstrom Direct Contact: P.O. No.: Dept. No. Phone No.: Ship Date: Catalog Name: Catalog In-Home Date: Manufacturer/Vendor: SAMPLE SUBMITTED: Knit Woven Sweater Other Style Number: Country of Origin: Sample Description: Fabric Type (Jersey, Twill, etc.): End Use (Shirt, Pants, etc.): Construction (20/1’s; 152 x 64 etc.): Fabric Weight: Colors/Prints: Actual Production Color: Yes No Print/Dye Type: Pigment Sulfur Indigo Reactive Other: Finish: Enzyme Wash Silicone Wash Water Repellent Wrinkle Resistant

Napped/Brushed/Sanded/Sueded Compacted/Sanforized Other:

Labeled Fiber Content: CARE INSTRUCTIONS: Number of Cycles TEST REQUIRED: NPS No.: Fabric Testing Package Garment Testing Package Fabric Weight Dimensional Stability Thread Count (Warp x Fill) Colorfastness to Laundering or Dry Cleaning Yarn Count (Size & Ply) Colorfastness to Crocking (wet & Dry) Construction (Type of Weave/Knit) Dimensional Stability Colorfastness to Laundering or Dry Cleaning Colorfastness to Crocking (wet & Dry) Verify Care Instructions Additional Colors Re-Test -Previous Report No.: Dimensional Stability Other (specify Test): Colorfastness to Laundering or Dry Cleaning Colorfastness to Crocking (Wet & Dry)

Additional Information:

Minimum Performance Requirements

The following performance specifications are available please contact your Product and Fit Specialist for the complete standard.

NPS-26 Hats Leather, Suede, Straw and all other fibers NPS-27 Handbags Leather, Suede, Metal and all other fibers NPS-28 Scarves All Fibers, Knit and Woven NPS-29 Gloves Leather, Suede and all other fibers NPS-30 Belts Leather, Suede, Metal and all other fibers NPS - 31 Accessories Plush Toys


0

SAMPLING AND PRODUCT SECTION 4 DEVELOPMENT Samples Sample Hangtag Photo Samples


1

Samples Required Samples The vendor is required to provide the samples listed below: • Meeting samples • Photo samples Note: Samples are not interchangeable. Each type of sample serves a specific purpose and is used by various departments. Please work directly with your Merchandise Buyer to coordinate dates and timelines for the various samples.

Required Sample Accompaniments In addition to the above samples, the vendor also needs to supply the following (see specific sections in this manual for more information on the following): • Nordstrom Direct Sample Hangtags (for Meeting Sample, Photo or Packaging Approval samples) • Completed Set-up Prep Form (for all new styles and for existing styles where changes have

occurred (i.e. country of origin or fabric content). Administrative support staff will e-mail or fax you a copy of this form.

• Base Fabric test report with first sample All samples must be clearly marked what sample is to be used for. Cost of Sampling All samples are considered a cost of doing business and will be furnished and sent to Nordstrom Direct at the vendor’s expense. Sending of Meeting Samples Merchandise buyers will request samples from you via a sample request form. At the time of request, the buyer will specify style, color, size and due dates for your planning purposes. Please keep the following points in mind when sending meeting samples to our office:

• All samples must be tagged with the vendor’s name, address, phone number, style number and cost.

• All samples must be accompanied by a completed buyer’s sample request form. • Nordstrom Direct should not be invoiced for any samples that are selected for catalog or

Internet sales. • Samples not selected will be returned to the vendor at the vendor’s expense. Note: Vendor

samples not accompanied with the required shipper number will not be returned. • Send meeting samples to: (Name of Buyer)

Nordstrom Direct 1700 7th Ave, Suite 300 Seattle, WA 98101

• Mark shipping box with “URGENT MEETING SAMPLE” • Shipping box can differ from the required box sizes for bulk shipments.

Important Note: Any fabric, fabric finish, color, findings, style details or construction that are different from your planned production must be noted on sample hangtag.


2

Sample Hangtag Tagging of Samples To help expedite the approval process, it is critical that all Photo samples, Fit Samples and Meeting Samples be tagged with the Nordstrom Direct Hangtag as shown below. Please copy this blank tag onto hard card stock paper and attach to the samples listed above. A sheet of four tags can be found on the next page for ease and efficiency in recreating this tag. The top portion of the tag must be clearly and completely filled out by the vendor and the purpose of the sample (i.e. photo) must be checked off so that the sample arrives in the appropriate department. Reminder Any part of the sample that is not representative of bulk production must be noted on the upper portion of the comment section.

Nordstrom Direct

Vendor should complete all information in this section Date

Appro. Box

Meeting

Smpl

Photo Smpls

(2)

Packaging Approval Sample

Other, Pls Specify

Vendor Name:

Vendor Style #:

Description:

Size: Size Range:

Buyer:

Comments:

For Nordstrom Direct Use Only Item#: Book/Season:

Macs Color Name:

Retail:

Dept./Class:

Catalog:

Vendor Number:

Date Received: Comments:


3

Nordstrom Direct


Appro. Box

Meeting

Smpl

Photo Smpls

(2)


Other, Please Specify

Vendor Name:

Vendor Style #:

Description:

Size: Size Range:

Buyer:

Comments:


Macs Color Name:

Retail:

Dept./Class:

Catalog:

Vendor Number:


Nordstrom Direct


Appro. Box

Meeting

Smpl

Photo Smpls

(2)



Vendor Name:

Vendor Style #:

Description:

Size: Size Range:

Buyer:

Comments:


Macs Color Name:

Retail:

Dept./Class:

Catalog:

Vendor Number:


Nordstrom Direct


Appro. Box

Meeting

Smpl

Photo Smpls

(2)



Vendor Name:

Vendor Style #:

Description:

Size: Size Range:

Buyer:

Comments:


Macs Color Name:

Retail:

Dept./Class:

Catalog:

Vendor Number:


Nordstrom Direct


Appro. Box

Meeting

Smpl

Photo Smpls

(2)



Vendor Name:

Vendor Style #:

Description:

Size: Size Range:

Buyer:

Comments:


Macs Color Name:

Retail:

Dept./Class:

Catalog:

Vendor Number:



4

Photo Samples Photo Sample Requirements

Photo Samples must be made production quality Please keep the following points in mind when sending photo samples to our office: • The merchandise buyer will advise sample sizes, length adjustments needed and photo sample due

dates. • All photo samples must be tagged with a completed Nordstrom Direct Hangtag (an example of the

hangtag can be found in this section of the manual. • Photo samples are sent at the vendor’s expense. Nordstrom Direct should not be invoiced for

samples. • Send photo samples to: (Name of Buyer) Nordstrom Direct 1700 7th Ave., Suite 300 Seattle, WA 98101 • Mark shipping box with “URGENT PHOTO SAMPLE” • Shipping box can differ from the required box sizes for bulk shipments. • Photo samples must be an exact representation of the bulk production to be received in our

fulfillment center. Photo samples must be made of correct fabric, trim and color that match what will be used for bulk production.

• All photo samples must be accompanied by a completed Merchandise Set-up Prep Form (provided by administrative support staff).

Critical Point Regarding Color If you know the color of the photo sample is incorrect attach a minimum 10” x 10” swatch to both photo samples showing how you will ship bulk production. The color deviation must also be noted on the hangtag. These swatches will allow us to color correct our photos to better represent bulk production.

Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts 2/1/2005

0

QUALITY STANDARDS SECTION 5 AND CONTROLS Inspection Process Vendor Claims Classification of Defective Merchandise


1

Inspection Process Vendor Administrated Quality Procedures Vendors are responsible for shipping first quality merchandise. We suggest using an integrated total quality program that includes:

• Incoming materials inspection and testing • Statistical in-process auditing • Final 100% inspection • Final statistical auditing of each production lot after packaging

For the final audit, we suggest you use the Single Sample Plan Level II (normal), Acceptable Quality Level 4.0

Single Sample Plan Level II Normal 4.0 QL

Lot Size Quantity to Inspect

Accept Reject

2 to 8 2 0 1 9 to 15 3 0 1 16 to 25 5 0 1 26 to 50 8 0 1 51 to 90 13 1 2

91 to 150 20 2 3 151 to 280 32 3 4 281 to 500 50 5 6

501 to 1200 80 7 8 1201 to 3200 125 10 11

3201 to 10,000 200 14 15 10,001 to 35,000 315 21 22

ANSI/ASQCZ1.4 - 1993

For multiple piece sets, you can use a 2.5 AQL on each separate piece within the set. Single Sample Plan

Level II Normal 2.5AQL


Accept Reject

2 to 8 2 0 1 9 to 15 3 0 1 16 to 25 5 0 1 26 to 50 8 0 1 51 to 90 13 1 2

91 to 150 20 1 2 151 to 280 32 2 3 281 to 500 50 3 4

501 to 1200 80 5 6 1201 to 3200 125 7 8

3201 to 10,000 200 10 12 10,001 to 35,000 315 14 15

ANSI/ASQCZ1.4 - 1993


2

Inspection Process (cont.) Measurement of the product must be a part of the inspection and auditing process as well as packaging, labeling and accuracy of carton marking and shipping compliance. We encourage you to visit our fulfillment center to meet our quality inspection department and other areas of operation. Please notify us before you visit.

Checking Product and Factories in the Field Nordstrom approved quality control personnel may visit our vendor’s factories and warehouses to perform either in-line or finished product audits prior to Nordstrom Direct granting shipping approval. Note: not all POs will be inspected in the field. Vendors will be selected for product or factory audits based both on random selection and past performance. In the event that one of your styles is planned for this type of inspection, you will be notified by our Product & Fit Specialist to arrange for a visitation prior to shipping goods to the fulfillment center. If your product fails the audit, the Product & Fit Specialist will work with you to correct the problem. In the case of a failure, Nordstrom will train you on how to implement the 100% inspection. Vendors will need to be prepared to supply information on the following: • Quantities and types of product being made • Health and safety conditions • Employment practices and working conditions • Number and types of equipment, capacity and output • General business information • Quality Assurance Procedure The Fulfillment Center Audit and Inspection Process The final step in our quality assurance program is a final audit in the Nordstrom Direct fulfillment center. The purpose is to provide an additional opportunity to ensure that the product you have made for us meets our quality expectations and for us to monitor your performance. We audit incoming products using a modified Single Sample Plan Level II (Normal), AQL 4.0

Modified S4 Normal 4.0 QL


Accept Reject

1 to 12 Entire Lot Direct 100% Inspect 13 to 90 13 1 2

91 to 150 13 1 2 151 to 280 13 1 2 281 to 500 13 1 2

501 to 1200 20 2 3 1201 to 3200 32 3 4

3201 to 10,000 32 3 4 10,001 to 35,000 50 5 6

ANSI/ASQCZ1.4 - 1993 Modified by Nordstrom Direct

Merchandise is inspected for defects and measured to ensure sizing accuracy. Items could fail inspection for:


3

Inspection Process (cont.) P/L – Packaging and labeling errors M – Measurement out of tolerance C – Color unacceptable to standard or variations in shade F/M – Unacceptable defects in fabric or materials D/O – Dirt and/or Oil present S – Sewing/construction defects Any defect which affects the appearance, durability or performance of the product will be rejected – see a full classification of defects in the back of this section. If the number of defects is equal to or less than the accept level, the lot passes and goes to stock. If the number of defects is equal to or greater than the reject level, the lot is rejected. If the lot is rejected, we have the following options for dealing with the problem:

• 100% inspect the entire shipment charging you back $60.00 per man-hour. • Return the entire shipment to you, at your expense, for inspection.

Before we do a thorough 100% inspection we will look at an additional 25% of the shipment or 100 pieces whichever is less and accept the entire shipment if there is less than 4% defective. This allows us to save time and money on inspecting shipments that might be acceptable but failed the initial audit due to the small sample size. An audit summary will be sent to you at each stage of inspection and we will communicate to you regularly your Quality Pass Rate. Quality Pass Rate is the percent of audits you have had pass our warehouse audit.

Bin Checks and Testing There are many times when shipments pass their initial audit and defective merchandise still ends up in our customers’ hands. When our customers alert us to a problem, we quickly perform a “Bin Check” to verify product remaining in stock is of acceptable quality. If more defects are found, we will notify the vendor and pull the stock for a 100% inspection (see procedures and costs listed above).

In addition to obvious defects, the customer may also alert us to a performance problem (i.e. pilling or colorfastness). When this occurs, we will send your product through fabric or wear testing to verify performance. If the product does not meet our expectations (as listed in the Performance Specifications in this manual), we will contact you to discuss resolution and acquire a return authorization number. In the event of a testing failure, the vendor will be billed all related fees which may include but are not limited to the following; testing, customer notification and recall of merchandise. Vendors can avoid returns by making sure they have an ample quality assurance program in place in their facilities to prevent defective merchandise from leaving their facility and arriving at ours.


4

Vendor Claims Quality Inspection on Incoming Product Incoming merchandise that fails an audit or 100% inspection will be returned to the vendor at the vendor’s expense. The vendor claim will include transportation charges, administrative fees, and insurance when applicable and merchandise cost. We want you to quickly see the defective units so you can correct any problems for future production. • Vendors will be contacted for an RA# (return authorization). Vendors have ten business days from

request to provide the RA#; after ten business days, defective items will be deducted from payment to the vendor in the form of a claim. Defective items will then be returned to the vendor at the vendors expense with all cartons marked NORDSTROM DIRECT QA DEFECTIVE. Refusal of this shipment will result in the disposal of these goods by Nordstrom Direct. The monetary claim will remain valid.

• It is the vendor’s responsibility to provide Nordstrom Direct with accurate information regarding the

return of defective items. If the information is inaccurate, or is not given, Nordstrom Direct may dispose of defective items and the dollar amount claimed will remain valid.

• Vendors who have issued an invalid RA# causing defective goods to be returned will be charged back

a flat fee of $150 in addition to all associated shipping costs. Nordstrom Direct may dispose of claimed items, and the dollar amount claimed will remain valid.

Customer Returns Due to Manufacturing Defects All other miscellaneous defective claims (i.e. customer return with manufacturing defect) will be resolved through the Defective Claims Agreement signed by the vendor and the buyer Every vendor is required to have a signed agreement on file with Nordstrom Direct. Purchase Orders will not be confirmed until document is on file with Nordstrom Direct Vendor Compliance. • All merchandise with manufacturing defects returned by the customer will be claimed back to the

vendor according to the Defective Claims Agreement. Defective items will be returned to the vendor when they are received from the customer, even if it is after the “selling season” and up to one year of the purchase order receipt date.

• All vendors are required to sign the Defective Claims Agreement and fax a copy to the Vendor

Compliance department at (206) 303-6129. • Vendors who request to be contacted monthly for Return Authorization have ten business days from

request to provide the RA#; after ten business days, defective items will be deducted from payment to the vendor in the form of a claim. Defective items will then be returned to the vendor at the vendors expense with all cartons marked NORDSTROM DIRECT DEFECTIVE. Refusal of this shipment will result in the disposal of these goods by Nordstrom Direct. The monetary claim will remain valid.

• Note vendors who refuse delivery of requested defective goods will be subject to a $150 charge back in

addition to all associated shipping costs. Nordstrom Direct may dispose of items, the dollar amount claimed will remain valid.

• It is the vendor’s responsibility to notify Nordstrom Direct of any address changes. Please contact the

Nordstrom Direct Vendor Compliance area at (206) 303-6118 with any updates or questions regarding claims.


5

Classification of Defective Merchandise

When defective product is found in our fulfillment center inspection, we will classify by defect type. The following is a list of what we consider to be defects and will fail on inbound shipment. This is not intended to be a complete list but rather an indication of the most common defects. P/L – PACKAGING/LABELING Labels

• Labels must be legible for the life of the product • Labeling other than as specified or required by the Federal Trade Commission or Customs • Excessive staining or distressing of label

Polybags/Boxes/Tape/Folding/Hangers/SKU Stickers

• Missing or illegible suffocation warning on bags • Bags/Boxes torn or not taped/sealed closed • Not folded or hung as specified • Not packaged as specified

Shipping Cartons

• Incorrect shipping cartons, carton construction or carton closure • Improperly marked cartons • Improperly packed carton which damages the product or packaging • Excessive damage to cartons • Cartons not securely sealed • Packing list not included with shipment • Contaminants inside the cartons

F – FABRIC/MATERIAL

• Conspicuous tension lines • Conspicuous needle lines or finishing creases • Hole, runner or drop stitches • Conspicuous slubs and knots • Skewed, bowed or biased fabric • Dye spots, streaks or smears • Conspicuous pilling • Not cut on grain • Nap not as specified • Snags, pulls in fabric • Mismatched plaid or stripe • Fabric or material repair • Any defect not listed that affects the appearance or durability of the product

M – MEASUREMENTS • Exceeding sewing tolerance


6

Classification of Defective Merchandise (cont.)

S – SEWING/ASSEMBLY, including components Stitching/Seams

• Inadequate stitches per inch • Needle cut, nick, needle pull or visible abrasion caused by needles • Raw edge • Needle holes • Seams puckered, twisted, roped or pleated • Seams distorted by stretching • Improper or conspicuous seam repair • Improper tension resulting in loose seams or popping stitches when stretched • Ends of stitching, when not caught in other seams, not secured • Foreign objects embedded in seams • Broken stitch in seam or decorative stitching • Any dropped stitch in a non-locking seam • Two or more consecutive skipped stitches on a seaming or joining lock stitch • Uneven stitch lines • Mismatched seams • Roped seams • Excessive untrimmed threads • Buttonhole incorrect size for button • Insufficient back-tack or bar-tack • Foreign matter or excessive reveling caught between plies and visible on face • Any part of garment or fabric caught in an unrelated operation or stitching • More than two splices on one binding operation • Irregular stitch gauge • Improper vertical and horizontal strip and plaid match

Trim Attachment Fasteners/Buttons/Snaps/Zippers/Buckles

• Missing, broken, defective, misplaced or insecurely sewn • Components not securely affixed or improperly stitched down • Corroded or oxidized components • Button incorrect size for button hole • Broken, bent, cracked, improperly clinched or failing to affect a secure closer or to open freely • Missing zipper pull • Missing top or bottom zipper stop • Zipper does not operate smoothly through range of length • Missing components

Components

• Defective components • Defects of assembly

Pressing

• Burns, scorching shine marks


7

Classification of Defective Merchandise (cont.)

D/O – DIRT/OIL

• Any conspicuous spot or stain regardless of size or location • Surface contamination • Offensive odor • Spewing

C- COLOR

• Any deviation from color, stripe pattern, stripe sequence, or color combination as approved • Color which is off-standard or outside accepted shade band • Shading between parts of a garment or within a garment • Wrong shade of thread affecting appearance


0

SECTION 6 PACKAGING & LABELING REQUIREMENTS Polybags for Merchandise Barcode Stickers Unique Packaging Labeling Requirements Dept/Item/Style # Label Packaging Guidelines Jewelry/Accessories Fine Jewelry Packaging Guidelines Wallets/Handbags/Totes/Backpacks Watches Sunglasses Gloves/Hats/Belts Pareos/Scarves/Wraps/Ponchos Hosiery/Socks/Slipper Socks Mens Ties Small Gifts Large Gifts Packaging Approval Process


1

Polybags for Merchandise Polybag Composition Polybags for folded merchandise must be made of clear polyethylene (poly) and be a minimum of .00125 inches (.03125 mm or 1 ¼ mil) thick. The maximum polybag size allowable measures 14” x 20”. Any merchandise packaged exceeding the maximum size will fail the quality audit, with the exception being non-co-mingled items (large gifts). Suppliers Polybags are available through the supplier(s) listed below.

POLYBAG SUPPLIERS

Name & Address Contact New Day Packaging

91 Taft Avenue Hempstead, NY 11550

Phone: (888) 539-1115 Order by Fax: (516) 539-1119

Email: [email protected]

Veri-Pack 9 Crystal Pond Rd.

Southborough, MA 01772

Phone: (800) 388-4344 Order by Fax: (800) 328-5146

Order online: www.veripack.com

NO FOLDED BAGS: HANGING BAGS ONLY

Poly-Pak Industries 125 Spagnoli Road Melville, NY 11747 www.poly-pak.com

Bruce Steifman Cheryl Bree

Phone: (631) 293-6565 (800) 969-1993

Fax: (631) 454-6366

Polybags must be sealed securely to keep the merchandise in the polybag at all times. Use one of the following sealing methods:

1. Heat Sealing: Heat sealing is the recommended method of sealing. 2. Taping: Fold open end of polybag over and seal with one piece of 2” wide tape. Tape along

the entire length of the open end. 3. Self-Sealing Bags: The use of self sealing bags is acceptable; Barcode Sticker Placement Nordstrom Direct barcode stickers must be applied to the upper right hand corner of each polybag as illustrated on the above diagram. For more information, see the Barcode Sticker information in this section of the manual.

Barcode Sticker Placement

Half-moon or Butterfly-Vent Holes Sealing option #2


2

3/4” wide clear tape Barcode Stickers

ALL GOODS SHIPPING TO NORDSTROM DIRECT MUST HAVE A BARCODE STICKER ATTACHED TO THE OUTSIDE OF EACH ITEMS POLYBAG (see example of sticker below). All barcode-stickers are printed and shipped by Avery-Dennison a third-party ticketing agency. Avery-Dennison is a worldwide manufacturer of self-adhesive base materials, office products, labels, tags, retail systems and specialty chemicals. If you are shipping your merchandise from overseas and need your stickers expedited, please call Nordstrom Direct vendor compliance (206) 303-6118. Barcode Sticker Example

Sticker Distribution Barcode stickers will be mailed to the vendor representative, unless otherwise notified, directly from the Avery-Dennison Greensboro ticket center. Contact vendor compliance with your mailing address and any contact name corrections. Sticker Receipt Polybag stickers will be received by the vendor within the following time frame:

• First time orders - within three weeks after the purchase order confirmation. • For backup orders and re-orders - within two weeks of confirmation.

Placement The stickers must be applied to the upper right-hand corner of the polybag in which the item is bagged. Invoicing and Payment Method The cost of barcode stickers, including freight, will be billed directly to the vendor from Avery Dennison. The third-party ticketing service sends an invoice separately from the tickets. Payment terms are net 30 days. Vendors who do not pay within 30 days of receipt of an Avery Dennison invoice are considered past due. Past due vendors will be placed on hold – no stickers will be shipped by Avery Dennison until payment is made. Sticker Attachment Procedures - Polybag

1. You will receive polybag stickers with a header ticket indicating the purchase order number for which you are receiving barcode stickers.

2. Compare the number of stickers you receive for each style, color and size against the number of items ordered. If the number of stickers does not match, please contact vendor compliance at (206) 303-6118.

3. Apply a sticker to the upper right-hand corner of each polybag, making sure that the style, color and size on the barcode sticker corresponds to the style, color and size of the item.

4. Continue labeling until all of the labels are gone. If overages are included in the


3

order, please clearly indicate in each carton which items do not include barcode stickers.

Barcode Stickers (cont.) Sticker Attachment Procedures – Shipping Carton ***new requirement***

1. Size and color appropriate sticker must be placed on the outside-perforated end of each shipping carton. Sticker should be representative of what the carton contains. Mixed SKU cartons should have all sizes and colors represented by a\their respective barcode sticker(s)

Avery-Dennison Contact

Name& Address Contact Avery Dennison/Soabar Products

2305 Soabar Drive Greensboro, NC 27406

Felicia Venable Telephone: (336) 271-3872

Fax: (336) 691-1823 [email protected]

Avery Dennison/Soabar Products No. 7 Chun Ying Street

Tseung Kwan O Industrial Estate New Territories, Hong Kong

Phyllis Choy Telephone: (852) 2372-3763

Fax: (852) 2597-4565 [email protected]

Nordstrom Direct Procedures Manual - Accessories/Jewelry/Gifts 2/1/2005 5

Unique Packaging

If your item is shipped in unique, or signature packaging, this packaging must be approved. Send samples of packaging to the Nordstrom Direct Vendor Compliance at 1700 7th Ave., Suite 300, Seattle WA 98101. Specific items may require a 10% overage of packaging sent direct to our Cedar Rapids Fulfillment Center. Please contact Vendor Compliance at (206) 303-6118 to review packaging and determine if overages will be required. Examples of unique packaging • Signature or unusual tie boxes • Signature of unusual packaging • Carrying case/bag • Gift with purchase • Presentation packaging


Labeling

All merchandise sold to Nordstrom Direct must be properly labeled accordance with all U.S. laws and regulations. Merchandise not properly labeled will fail the quality audit resulting in offset fees. Main Logo Labels • Vendor’s own main logo labels: Vendor’s labels must be sewn-in, readable and permanent. Care and Content Labels Nordstrom requires that all labeling meet current U.S. Federal Trade Commission (F.T.C.) requirements and be in compliance with all U.S. Customs Service regulations. It is the responsibility of the vendor to understand and apply all labeling rules and requirements. For more information, contact the F.T.C.:

U.S. Federal Trade Commission http://www.ftc.gov/os/statutes/textilejump.htm phone: (202) 326-3553 fax: (202) 326-3197

It is imperative that any product made by foreign or domestic manufacturers be correctly labeled with regard to the below points. In addition, the care labels must be permanently attached and legible throughout the life of the item.

• Country of Origin • Fiber Content • Registration Number (RN#) • Complete and Accurate Care Instructions (if required by the F.T.C.)

Care/Cleaning Special Instructions - If items being sold to Nordstrom Direct require special care or cleaning, please help us inform our customer by including instructions with the item. This can be done in the form of a card, tag, or sticky label. Please contact the Vendor Compliance department with any questions (206) 303-6118. For your convenience please utilize the links below to access various jewelry information websites for care and cleaning information. Jewelry Information Center http://www.jewelryinfo.org/basics/basics_birth_dec.html

American Gem Trading Association http://www.agta.org/

Gemological Institute of America http://www.gia.edu/


Dept./Item/Style # Label ALL products sold to Nordstrom Direct must have the following information attached to the item. This enables the product to move efficiently through our system (please refer to your purchase order for this information):

• Department Number (Nordstrom Direct department number) • Item Number (Nordstrom Direct item number) • Style Number (Vendor style number)

This information may be attached in one of the following ways: (If your item is not listed below, please contact Vendor compliance at (206) 303-6118 with any questions). Jewelry/Accessories/Belts/Handbags/Totes/Backpacks Hangtag attached directly to the item Sticker attached to the back of the jewelry/accessory card

Scarves/Gloves/Wraps/Kerchiefs/Pillows/Blankets/Throws/Rugs Label sewn into item Hangtag attached directly to the item

Hosiery/Socks/SlipperSocks • Sticker on vendor packaging of item Mens ties Label sewn into item Loop tag Sticker on tie box

Sunglasses/Watches Hangtag attached directly to the item Sticker attached to the bottom of watch or sunglass case

Small/Large Gift Items Hangtag attached directly to the item Sticker attached to the bottom of item

Multi-Piece Gift Items Sticker may be attached to the bottom of the outermost box containing all pieces (each piece need not

be individually labeled with dept/style/item#).


Packaging Guidelines

The following guidelines will provide you with a clear picture as to how we need your merchandise to be packaged for shipment to our Cedar Rapids Fulfillment Center. Merchandise shipped to our Cedar Rapids Fulfillment Center must be packaged according to these guidelines. Any variance will cause delays, and ultimately, chargebacks may be applied as a result of non-compliance. If you have any questions regarding these guidelines, call the vendor compliance coordinator at (206) 303-6118


Packaging Guidelines JEWELRY/ACCESSORIES

Jewelry cards All jewelry and accessories must be placed on the appropriate jewelry card. The use of jewelry cards help standardize presentation, create a nice look for our customers, as well as reduce damage during shipment. The following items must be placed on a jewelry card: Earrings Necklaces (with the exception of bulky necklaces which will not tangle) Hair Accessories (with the exception of headbands) Rings Broaches/Pins Tie Clips Cuff Links

Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, or the jewelry card, not the polybag. Pricing Pricing of any kind should not be listed on the item or packaging. Pricing of any kind may cause a quality audit failure.

Presentation Jewelry Boxes After placing jewelry and accessories on the appropriate jewelry card, each item must then be placed in a vendor generic jewelry box with a ½” cotton liner. Box size must be no smaller than 3 ½” x 3 ½” x 1” (standard jewelry gift box size). For questions regarding acceptable boxes please contact Nordstrom Direct vendor compliance at (206) 303-6118. Source for Jewelry Boxes Presentation jewelry boxes can be ordered through All Size Box & Packaging by calling 1-800-535-7294, ask for Tammy. These boxes can also be found at most packaging specialty stores. Gift Tins If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble material, the tin must then be polybagged or shrink-wrapped (see below). Polybags/Shrink-wrap Once the jewelry or accessory item has been placed in a presentation jewelry box, each box must then be placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create a professional looking presentation, and seal securely by heatsealing or using two pieces of clear ¾ “ tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick.



JEWELRY/ACCESSORIES (Cont.)

Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources. Unique Packaging If your item is shipped in unique, or signature packaging, this packaging must approved prior to bulk shipment. Send samples of packaging to the vendor compliance area at 1700 7th Ave., Suite 300, Seattle WA 98101. Specific items may require a 10% overage of packaging sent direct to our Cedar Rapids Fulfillment Center. Examples of Unique Packaging Decorative tins Signature watch boxes/cases Signature eyeglass/sunglass cases Special protective packaging Warranties Signature Jewelry cards

Overages of these items may be included with your shipment. Clearly separate packaging overages from the rest of your purchase order. Indicate on the outside of the shipping carton containing the packaging overages “PACKAGING OVERAGES.”



FINE JEWELRY

Fine Jewelry Packaging Guidelines All fine jewelry must be pre-packaged in a Nordstrom label jewelry box as designated by this guideline. The use of this packaging will insure standardized presentation of fine jewelry purchases to our customers. These guidelines are intended for use as an addendum to the Nordstrom Direct Procedures Manual. For specific details pertaining to Quality Standards, Packaging, Shipping, and Invoicing, please refer to the Nordstrom Direct Procedures Manual. How to Order 1. Determine the jewelry type ordered on the chart below. Find the corresponding box type and box item

number.

Jewelry Type Box Description Box Item

# Cost / Dz* All stud earrings * Drop earrings less than 1 1/4" in length Stud Earring 01220 $26.01* All other earrings * Chains and necklaces less than $200 cost * All anklets

Medium Pouch -and- Packer for Medium Pouch

01252 01254

$10.12 $10.37

* Chains $200 cost and over * All necklaces * All bracelets $200 cost and over Deep Brooch 01225 $60.75* All pendants less than $500 cost Pendant 01223 $35.40* All pendants $500 cost and over * Pearl strands $500 cost and over Small Necklace 01230 $73.10

* Pearl strands less than $500 cost Large Pouch - and- Packer for Large Pouch

01255 01257

$14.52 $10.44

* All rings Single Ring 01228 $28.32* All toe rings * All body jewelry

Small Pouch -and- Packer for Small Pouch

01250 01251

$7.34 $7.08

2. Complete the Nordstrom Direct Jewelry Item Requisition Form located in this packet. Fax or email the

form to The Merrill Corporation. Your order will be shipped via ground service. Vendors are responsible for the cost of the jewelry boxes plus freight. Billing for the box order will be in the form of a claim to be keyed by Nordstrom Direct. A claim summary will be sent detailing your box purchases. You will not receive an invoice from The Merrill Corporation.


Nordstrom Direct Jewelry Item Requisition Form Ship to: Order Date: ___________ Ship via: Ground Service Release #_____________ ___________________________ Phone #: ___________________ Requested by: ______________ GL Acct #: 500.5210.74421.35112 Item # Item Description Extended Quantity

(ex. – to order 1 dz, enter 12 below) 01220 Stud Earring (12/box) 01228 Single Ring (12/box) 01225 Deep Brooch (12/box) 01223 Pendant (12/box) 01230 Small Necklace (12/box) 01250 Small Pouch (12/box) 01251 Packer for Small Pouch (12/box) 01252 Medium Pouch (12/box) 01254 Packer for Medium Pouch (12/box) 01255 Large Pouch (12/box) 01257 Packer for Large Pouch (12/box) Comments: ____________________________________________________________________________________________________________________________________________________________________________________________________________ By completing this form, you acknowledge the supplies ordered from Merrill Corporation will be used to package Nordstrom products. Please e-mail this requisition to [email protected] or fax to (360) 794-3100. Merrill Corporation 14640 172nd Drive SE, Monroe WA 98272-1082 fax: (360) 794-3100 sales (800)735-7135


Packaging Guidelines (cont.) FINE JEWELRY

Packaging All fine jewelry items must be packaged in the following method.

1. Fine Jewelry Box: each item should be placed in the designated box type. 2. Polybagging: each box must be placed in a size-appropriate polybag. Seal the polybag by either

heat-sealing or tape. Use of a self-sealing bag is acceptable.

3. Barcode Sticker: the Avery Dennison barcode sticker must be placed on the upper right-hand corner of the polybag

4. ASN: the Advance Shipment Notification form must be faxed or emailed to our Fulfillment Center

24 hours prior to each shipment leaving the vendor’s warehouse. A copy of the ASN form is located in this packet.

Shipping Fine Jewelry must be shipped to the Cedar Rapids Fulfillment Center #808 using one of the following methods. US Mail (ground) - Registered Mail, signature required, Attn. Front Desk US Mail (air) - Express, signature required, Attn. Front Desk Indicate PO # (purchase order) on the outside of the shipping carton. Ship declaring FULL VALUE

Address shipment as follows: Cedar Rapids Fulfillment Center #808

7700 18th Street SW Cedar Rapids, IA 52404

Attn: Front Desk Unique Packaging If your item is shipped in unique, or signature packaging, this packaging must be approved prior to bulk shipment. Send samples of packaging to the Vendor Compliance department at 1700 7th Avenue, Suite 300, Seattle, WA 98101. For questions, please Vendor Compliance at (206) 303-6118


Packaging Guidelines WALLETS/HANDBAGS/TOTES/BACKPACKS

Dept#/Item#/Style# Labeling Each item must have sticker, tag, or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, not the polybag. Pricing No pricing of any kind should be listed on the item or packaging

• Silica Packets: Silica packets (non-poisonous Decekin) must be included with item. • Ornamentation: All metal ornamentation (zipper pulls, drawstring ends etc.) must be wrapped in

tissue paper. Magnetic Closures All US patent information must be present on any magnetic closures/fasteners.

Polybag Each item must be placed in an individual polybag. The polybag should be sized to fit the item. The open end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of ¾” clear tape. No part of the handbag/tote or backpack should be outside of the polybag. The bag must be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for additional information see section on polybags). Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton All small handbags must be shipped using the narrow size shipping carton (23” x 10” x 17”). All large bags, totes and backpacks must be shipped in the wide size shipping carton (23” x 15” x 17”). Please see the shipping section for more details. Wallets: The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.


Packaging Guidelines WATCHES

Watch Boxes Watches must be packaged in individual watch cases/boxes (watches should have watch stoppers in place). If using a soft watch case, the soft case must then be placed in a size appropriate presentation jewelry box with a ½” cotton liner. Gift Tins If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble material. The bubble material may replace the use of an outer polybag. The barcode sticker can then be placed on the outside of the bubble material Watch Pins Pulled Watches must not be running when shipped to the Cedar Rapids Fulfillment Center. Watch stoppers must be in place, and/or watch pins must be pulled, with the exception being digital watches. Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, or the bottom of the watch box, not the polybag. Pricing No pricing of any kind should be listed on the item or packaging Polybags/Shrink-wrap Once the watch has been placed in a watch box or presentation jewelry box, each box must then be placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create a professional looking presentation, and seal securely by heatsealing, or by using two pieces of ¾” clear tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick. Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.


Packaging Guidelines SUNGLASSES

Cases Sunglasses must be packed and shipped in sunglass cases. If using a soft sunglass case, the case must be placed in a vendor generic presentation box. Gift Tins If using a gift tin for packaging and presentation purposes, the tin must be wrapped in a layer of bubble material. Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, or the bottom of the watch box, not the polybag. Pricing No pricing of any kind should be listed on the item or packaging Polybags/Shrink-wrap Once the sunglasses have been placed in a hard sunglass case, or softcase and presentation jewelry box, each case/box must then be placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create a professional looking presentation, and seal securely by heatsealing or using two pieces of ¾” clear tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick. Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.


Packaging Guidelines GLOVES/HATS/BELTS

Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, not the polybag. Pricing No pricing of any kind should be listed on the item or packaging Belts Belts should be coiled with the right side of the belt facing out. Do not ship belts flat and do not include plastic hangtags on belts.

• Metal or Chain belts which are prone to damage or tangling need to be packaged in individual presentation boxes or in bubblebags.

Polybags for Gloves/Hats/Belts Each item must be placed in an individual polybag. The polybag should be sized to fit the item. The open end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of ¾” clear tape. The bag must be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for additional information see section on polybags). Polybag must have a vent hole for use with fabric items.

• If necessary to keep the shape hats may be stuffed with tissue paper or other appropriate dunnage material.

. Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.



PAREOS/SCARVES/WRAPS/PONCHOS

Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, not the polybag. Finished Dimensions after Folding Approximate folded dimension should be 10” x 12” or 10” x 14” Exceptions to this rule can be allowed for bulky wraps or ponchos, which may be folded to 10” x 19” Polybag Size

• Use polybag size of either 11” x 14” or 11” x 16” (for exceptions use polybag size of 11” x 20”) • Do not allow more than 1” of space between edge of garment and polybag.

Shipping Carton These items must be shipped in the narrow or short narrow carton. Notes to Remember • Do not use pins or clips • Tissue or lightweight stiffener may be used if necessary Folding Instructions 1. Fold in half. 2. Fold in half again. 3. Fold until approximate dimension listed above is reached. 4. Place item into the correct polybag size and seal polybag with clear tape or heat seal. If heat sealing method is used all polybags must have three half-moon or butterfly vent holes ¼” diameter evenly spaced.


Packaging Guidelines HOSIERY/SOCKS/SLIPPER SOCKS

Dept#/Item#/Style# Labeling Each pair or unit must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, not the polybag. Multi-packs Each pair or unit should be packaged individually unless purchase order indicates merchandise is sold in multiples. Pricing No pricing of any kind should be listed on the item or packaging. Polybags Each pair or unit must be placed in an individual polybag. The polybag should be sized to fit the item. The open end of the polybag should be neatly folded over and either heat-sealed or secured with two pieces of ¾” clear tape. The bag must be made of clear polyethylene (poly), and be a minimum of 1.5 mils thick (for additional information see section on polybags).

Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information.

Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.


Packaging Guidelines MENS TIES

Notes to Remember • Ties must be placed in a presentation box. • Ties not in a presentation box will need to be reprocessed at our Cedar Rapids facility. The vendor

will be responsible for associated costs and related chargebacks. • Each tie box must be shrink-wrapped or polybagged with a Nordstrom Direct barcode sticker placed

on the outside of wrap or bag.

Shipping Carton This item must be shipped in either the narrow (23” x 10” x 17”) or short narrow (23” x 10” x 6”) size

shipping carton. Folding Instructions Option #1

1. Fold tie in ½, tail should be tucked behind label 2. Fold again in 1/3 3. Place tie into a (appx.) 6” x 8” x 1 ¼” presentation box, tissue paper optional 4. Shrink-wrap or polybag and seal. 5. Apply Nordstrom Direct barcode sticker to the outside of wrap or bag. Option #2 1. Roll tie from narrow end to wide end 2. Place tie into a 3” - 4” square cubed box 3” – 4” deep, tissue paper optional 3. Follow steps 4 & 5 above Shipping Carton The recommended shipping carton size is the Short Narrow size carton (23” l x 10” w x 6” h) with an end perforation. Please refer to the shipping carton section of this manual for sources.



SMALL GIFTS

All smaller items (except soft items such as a pillow or stuffed animals, or unbreakable items such as a book) need to be placed in a vendor generic presentation “gift” box. This box may be a standard white accessory box with a layer of cotton and a lid, a lip-locked chipboard or corrugated box in either white or Kraft. No staples of any kind should be used in the packaging process. Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself, not the polybag. Pricing No pricing of any kind should not be listed on the item or packaging Cosmetics Tamper resistant seals must be included on all cosmetic merchandise. In addition, all cosmetic items must be completely sealed closed. Shrink-wrap or heatsealing is the preferred method. A layer of bubble wrap in addition to size appropriate polybag (see below) must protect liquid items. Polybags/Shrink-wrap Once the small gift item has been placed in presentation gift box, each box must then be placed in a size appropriate polybag. Fold the open end of the bag over the end of the box to create a professional looking presentation, and seal securely by heatsealing or using two pieces of ¾” clear tape. The use of shrink-wrap is an acceptable alternative to polybags. The polybags, or shrink-wrap must be made of clear polyethylene (poly), and be a minimum of 1.5 mils (.03125mm) thick. Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the polybag or shrink-wrap in the upper right hand corner of each item. Please see section on barcode stickers for more detailed information. Shipping Carton All small gift items must be shipped using in the narrow size shipping carton (23” x 10” x 17”). Please see the shipping section for more details.


LARGE GIFTS


Larger gift items (minimum dimensions of 10” L x 10” W x 6” D) must be packed ready to ship to a customer. The item should be placed in a box of sturdy corrugated construction with a minimum bursting strength of 200 lbs. The box should be as close to square or rectangle as possible. The box should fit the item. The box must be new (no used/reused) All empty space around the item should be filled with dunnage, bubble wrap, Kraft paper, textured

Kraft paper, foam wrap, or expanding foam may be used. No printed newspaper of any kind should b used.

No staples of any kind may be used in the packaging process. Boxes should be sealed with packing tape.

If the item is fragile, the box should be marked with a “Fragile” sticker on two sides. Dept#/Item#/Style# Labeling Each item must have sticker, tag, stamp or hangtag attached indicating the Nordstrom Direct Department #, Item #, and vendor style #. This information must be attached to the item itself. Pricing No pricing of any kind should not be listed on the item or packaging Carton Markings Each individual carton must have the following markings: PO # (purchase order number) Carton X of Y Avery Dennison Barcode Sticker

Barcode Sticker The Avery Dennison barcode sticker must be applied to the outside of the shipping carton in the upper right hand corner of each item (see diagram for placement). Please see section on barcode stickers for more detailed information. Shipping Shipment of large gift items to our Cedar Rapids Fulfillment center may be palletized. Shrink-wrap all individual cartons together, taking care not to crush the carton. Be sure to place cartons with carton marking facing towards the outside. Please refer the Shipping section of this manual for complete shipping information.

Packaging Approval Process

SMALL / LARGE GIFTS

Carton x of y Barcode Sticker

Nordstrom Direct PO #


A sample for packaging approval of small and large gift items may be requested. The merchandise buyer will notify you if your item must be submitted for packaging approval. This packaging approval is crucial to ensure the packaging of your item is sufficient to protect the integrity and presentation of the item during the fulfillment process. Sample item must be packaged as you would for bulk shipment Sample item must be shipped freight pre-paid. All samples are considered the cost of doing business and will be furnished and sent to Nordstrom

Direct at the vendor’s expense. Send sample to:

Nordstrom Direct 1700 7th Ave

Suite 300 Seattle, WA 98101

Attn: Vendor Compliance Dept.

Approval Vendor Compliance will contact you with approval, and/or any feedback related to the sample item packaging. For questions please call (206) 303-6118.


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SECTION 7 PACKING AND SHIPPING Shipping Cartons Packing Slips Packing, Sealing and Marking Cartons Shipping ASN - Advance Shipment Notification Routing Bills of Lading Purchase Order Verification Appendix A: Specifics on Shipping Appendix B: Glossary of Shipping


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Shipping Cartons

Composition All cartons shipped to Nordstrom Direct must be new and made of corrugated cardboard. Strength Cartons must have a minimum bursting strength of 200lbs/in sq. Size Shipping cartons must have the following exact measurements in addition to the end perforation (see exceptions on next page):

SUMMARY OF SHIPPING CARTON SPECIFICATIONS

Standard Carton Sizes Maximum Carton Weight Perforation 23” x 10” x 6”

58.42 cm x 25.40 cm x 15cm

Short Narrow

40 lbs.

18 kgs.

Verticals: 6 ½”

Horizontal 7”

23” x 10” x 17”

58.42cm x 25.40cm x 43.18cm

Narrow

40 lbs.

18 kgs.

Verticals: 12”

Horizontal: 4”

23” x 15” x 17”

58.42cm x 38.10cm x 43.18cm

Wide

40 lbs.

18 kgs.

Verticals: 9”

Horizontal: 9”

1. 23” x 10” x 6” (Short Narrow) - This carton should be used for jewelry, accessories, wallets,

watches sunglasses, gloves, scarves, hats, belts and small cosmetic items. 2. 23” x 10" x 17" (Narrow) - This carton should be used for small handbags or gift items. 3. 23" x 15" x 17" (Wide) - This carton should be used for bulky items such as pillows, stuffed animals,

totes or backpacks. ♦ Please ship in compliant carton size that best fit your item and the size of your

purchase order. ♦ Do not mix Narrow and Wide cartons within the same PO. ♦ Do not switch between Narrow and Wide cartons on subsequent shipments of

the same item.

Wide vs. Narrow The majority of accessory items should be shipped in the Short Narrow (23” x 10” x 6”) shipping carton. If unsure about which size cartons to use, please contact Nordstrom Direct Vendor Compliance at (206) 303-6118.


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Shipping Cartons (cont.)

Perforation All cartons must be perforated to facilitate the creation of an opening. The perforation should be located on one end of the carton and have the approximate measurements listed on previous page. Consistency from One Delivery to the Next After an item has shipped to our Cedar Rapids Fulfillment Center, all subsequent P.O.’s for that item must be shipped in the identical Width of shipping carton so that they can be stored in the same location in the warehouse. Shipping Carton Suppliers: Carton Suppliers Company

Name/Address Contact Name/Number

Nationwide **Stocks all three carton sizes + polybags

New Day Packaging 91 Taft Avenue Hempstead, NY 11550

Phone: (888) 539-1115 Order by Fax: (516) 539-1119 Contact: Brian Goldstein Or Lisa Alexander Email: [email protected]

East Coast New York area **Stocks all three carton sizes

Dawn Industries 450 Seventh Ave New York, NY 10123

Phone: 1-888-DAWN-USA 1-888-329-6872 Phone (212) 432-0035 Fax: (212) 563-0489 Fax: (212) 596-0167 Contact: Jonathan Greenberg Marla Perrino

West Coast **Stocks all three carton sizes

California Supply 491 E. Compton Blvd. Gardena, CA 90248 California Supply 30049 Ahern Street Union City, CA 94587

Phone: (310) 532-2500 Fax: (310) 327-1849 Violet Parrish x134 Mark Weinstein x132 Phone: (800) 562-2625 Fax: (510) 429-0426 Phil Footlik x 121 Bob Johnson x 131

Mid-West Ability Enterprise 1440 N. Kingsbury #120 Chicago, IL 60622

Phone: (312) 337-8433 Fax: (312) 337-8677

Canada Paramount Paper Products 1300 Boul Jules Poitras St. Laurent, Quebec H4N1X7

Phone: (514) 331-0083 Fax: (514) 331-3274 E-mail: [email protected] Contact: Mr. John Bilikas

Hong Kong Ching Wah Industrial Co. Unit 13,5F Block A Wah Tat Industrial Centre

Phone: 242-36537 Phone: 242-36551 Fax: 242-36555


3

8-10 Wah Sing Street Kwai Chung, Kowloon , HK

Contact: T.C. Cheung

China No.2 Printing/Packing Factory Zhujiawan, Changshu City, China

Phone/Fax: 86-21-246012 Contact: Mr. Zhu Bin Rong

Spain Cartopesa Phone: 96-663-0592 Fax: 96-663-2646

Brazil Ind. Cartel S.A. Rodovia RA 130 KM 40, SEM NBR Legeado, Rs Brazil

Phone: 011-555-1597-1311 Fax: 011-555-1597-1523

Brazil Box Print Fabric Embalagens E Ondulado S.A. Avenida Dos Municipios 5238 Campo Bom 93-700-000 RA Brazil

Phone: 011-555-1597-1311 Fax: 011-555-1597-1523

Packing Slips


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Include one packing slip per purchase order. Attachments • Carton Freight: Place a packing slip in a removable pouch attached to the purchase order’s lead

carton. Place a second copy inside the same carton. • GOH: Attach a single copy of the packing slip to the purchase order's lead garment. Content Packing slips must include the following information: • Shipper’s name, address and phone number • Destination address:

Cedar Rapids Fulfillment Center #808 7700 18th Street SW Cedar Rapids, IA 52404 Phone: (319) 846-4000 Fax: (319) 846-4208

• Nordstrom Direct purchase order number (two alpha characters, six numeric characters) • Description of goods • Total number of cartons • Carton Dimensions • N.com item number (minimum of four numeric characters) • N.com color code(s) (three alpha character code) • N.com size(s) • Totals by carton • Totals by SKU (style, color and size)

Packing, Sealing & Marking

Packing • Packing: Pack each purchase order separately.


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• Mixing: Do not mix merchandise for more than one purchase order in the same carton. • One SKU per carton: Pack one style, color and size (SKU) per carton. If quantities do not allow for a

full carton of a single SKU leave the rest of the carton with empty space. • You are allowed one mixed carton per color (Use tissue or cardboard to separate each SKU). Label

the mixed carton with the color, size and amount. Also clearly label the carton "MIXED". Maximum Carton Weight Cartons shipped to the Cedar Rapids Fulfillment Center must not exceed 40 lbs. (18 kgs.) in gross weight. Sealing Cartons The top and bottom of every carton must be sealed with 2” or 3" patterned tape. The tape must not interfere with any carton markings. Do not use staples, bands, straps, cellophane, plain clear or plain brown tape. Acceptable tapes are listed below:

• Patterned polypropylene tape. The tape pattern can be anything that will help identify when a carton seal has been broken.

• Patterned, water-activated paper tape with fiber reinforcement. The pattern can be anything that will help identify when a carton seal has been broken.

Marking One end and one side of each carton must be marked as indicated below. Carton markings must be large enough to be easily read. See illustration below. Mark one side of each carton with the following information:

• Shipper's name & address • Destination address:

Cedar Rapids Fulfillment Center D.C. #808 7700 18th Street S.W. Cedar Rapids, IA 52404 • Nordstrom Direct purchase order number (two alpha characters, six numeric characters) • Carton number (in format x of y where y equals the total number of cartons) • N.com item number (minimum of four numeric characters) • N.com color code(s) (three alpha characters) • N.com size(s) • "MIXED" (if carton contains mixed SKU's) • Total pieces

17 inches

10 inches 23 inches

Packing, Sealing & Marking (cont.) ***New Requirement*** Size and color appropriate Avery Dennison barcode sticker must be placed on the outside-perforated end of each shipping carton. Sticker should be representative of what the carton contains. Mixed SKU

Carton # x of y Shipper Name & Address Fulfillment Center Address Nordstrom Direct PO # Nordstrom Direct Item # Nordstrom Direct Color Code Sizes Total pieces


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cartons should have all sizes and colors represented by their respective barcode sticker(s). Mark the perforated end of each carton with the following information:

• Place a Barcode sticker corresponding to the items packed inside the carton on the lower left hand corner (see drawing A)

• Quantity • PO #

A.

Do not write on perforation

If Barcode Sticker quantities do not allow for use as carton markings, please list the following information on the perforated end of each carton: • N.com item number • N.com color code(s) • N.com size(s) • Quantity • Purchase order (PO) number

B.

Do not write on perforation

Shipping Shipping Window All shipments must be made within the early ship and past cancel dates listed on the catalog purchase

Nordstrom item # Nordstrom color code Nordstrom size(s) Total pieces P.O. #

Barcode Total # Pcs. PO #


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order. Purchase orders shipped outside of this window may be refused and returned at the shipper's expense and liability. Early purchase orders that are accepted will be subject to strict handling and storage fees. Late purchase orders that are accepted will be subject to cancellation and/or penalties. See the Financial section in this manual for more information. Purchase Order Verification All purchase orders shipped to the Cedar Rapids Fulfillment Center must be verified prior to shipment. Invalid purchase orders will be refused and returned to the shipper at the shipper's expense. The shipper will also incur any applicable storage fees and a $25 handling fee. See the “Purchase Order Verification” section in this manual for more information. Advance Shipment Notification Forms All vendors shipping merchandise to Nordstrom Direct must fax an “Advance Shipment Notification (A.S.N.)” to our Fulfillment Center within 24 hours of shipment leaving the vendor’s warehouse. (A copy of the A.S.N. is located in this section of the manual.)

♦ This is NOT an electronic transmission (EDI).

Consolidation All purchase orders shipped to the Cedar Rapids Fulfillment Center #808 on the same day should be on one bill of lading. Carrier Selection All shipments to the Cedar Rapids Fulfillment Center must be made through our approved carriers. Select the appropriate carrier (listed in the “Routing” section in this manual) based on the buyer's requested shipment method (surface or air), your shipping location, and the weight of your shipment. Scheduling a Pickup Contact the designated Nordstrom Direct carrier at least 24 hours in advance to schedule a pickup. Provide the carrier with the total weight and pieces in your shipment. If our designated carrier does not provide service to your shipping location, call the Fulfillment Center Traffic department at (319) 846-4000. • Important Note: Do Not Pre-pay Freight. Freight cost is collected from the vendor in the form of a

freight chargeback. Bills of Lading Create a bill of lading. See the “Bills of Lading” for more information. Billing Bill your shipment COLLECT. Nordstrom Direct will not reimburse vendors for prepaid shipments.

• Do not prepay shipment. Nordstrom Direct will collect the freight cost from the vendor in the form of a freight chargeback.

Declaration of Value DO NOT declare value on Surface or Air shipments

Shipping (cont.)

Freight


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All deliveries must be made by surface, unless otherwise specified by the buyer, through our approved carriers (see “Routing” section in this manual). Shipment terms will be FOB, full-paid freight, to the Cedar Rapids Fulfillment Center in Cedar Rapids, Iowa. On-Time Delivery Our commitment to customer service is dependent upon the immediate availability of merchandise when the customer calls. The increased shipping and handling costs, very high return rates on back-ordered items and general loss of credibility imply that on-time delivery of all purchase orders is of the highest priority.

Penalties and Cancellation Policy: Merchandise that is not completely available on the agreed upon date will jeopardize future business opportunities and are subject to cancellation or specified invoice penalties. If the vendor is unable to fulfill contractual obligations, Nordstrom Direct requires notification as soon as the vendor is aware of any potential problems, or at least two weeks before the cancel date.

Substitutions / Overages • Do not ship more units than the quantity listed on the purchase order. Any amount over the P.O.

quantity must be approved by the buyer prior to shipping. • Do not send substitutions of any kind. Substitute styles will be returned at the vendor’s expense in

addition to handling fees. Assistance with Purchase Orders For inquiries regarding a purchase order, contact the buyer listed on your purchase order. All buyers can be contacted through the Nordstrom Direct receptionist at (206) 303-6000.

Shipping (Cont.)

FINE JEWELRY AND OTHER EXCEPTIONS

Fine Jewelry


9

Fine Jewelry must be shipped to the Cedar Rapids Fulfillment Center #808 using one of the following methods. US Mail (ground) - Registered Mail, signature required, Attn: Front Desk US Mail (air) - Express, signature required, Attn: Front Desk

Indicate PO # (purchase order) on the outside of the shipping carton. Ship declaring FULL VALUE

Address shipment as follows: Cedar Rapids Fulfillment Center #808

7700 18th Street SW Cedar Rapids, IA 52404

Attn: Front Desk For additional details on packaging Fine Jewelry, please see Fine Jewelry section in this manual. Hazardous Materials Only ship articles which are authorized for Air Shipments as identified in the current International Air Transport Association, Dangerous Goods Regulations. Copies of the regulations are available (800) 716-6326. Questions about the regulations can be directed to IATA Customer Service (514) 844-3611. Only ship by air those shipments which have been requested on the purchase orders to be shipped “air”. Articles not authorized for air shipment must follow our shipping instructions for “surface or ground”. If your “air” purchase order does not qualify for air shipment, please contact the Cedar Rapids Traffic Office (319) 846-4205/4206. The shipper is responsible for identifying, marking, labeling, and documenting each such shipment. The shipper must also comply with any additional FAA or other official requirements in effect at the time

of shipping. Common types of hazardous materials are nail polish, perfume, and aerosol hair products.

Cosmetics October 15 to April 15 ship Protective Service. Please write, “protect from freezing” on BOL. Air shipments must comply with all IATA hazardous materials and FAA or other official regulations. Edible Items If perishable (i.e. chocolate, candies) must label as “perishable” food item on Bill of Lading. If shipping perishables with a cold pack containing dry ice via air carrier, the shipper must declare the

proper UN information, on dry ice, on label outside carton. Contact the Cedar Rapids Traffic Dept. (319) 846-4000 for routing instructions

Advance Shipment Notification (ASN) Advance Shipment Notification Forms All vendors shipping merchandise to Nordstrom Direct must fax an Advance Shipment Notification


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(A.S.N.) to our Fulfillment Center within 24 hours of each shipment leaving the vendor’s warehouse. (A copy of the A.S.N. is located in this section of the manual.) This is not an electronic or EDI ASN. Nordstrom Direct does not currently require or accept electronic transmissions of ASN’s. Please FAX ASN document included in this section of the manual. If you would like the option of using an e-mail version of this form, e-mail your request to [email protected]

ADVANCE SHIPMENT NOTIFICATION

SHEET___ OF ___ NORDSTROM DIRECT DATE: _______ 7700 18TH ST SW

CEDAR RAPIDS, IA 52404 (319) 846-4202 FAX: (319) 846-4208


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E-mail [email protected] SHIPPER/VENDOR INFORMATION: Nordstrom Vendor #____________________________ Company Name ____________________________ Contact ____________________________ Requested Ship Date _______________ Address ____________________________ Telephone No. ________________ City, State, Zip ____________________________ Fax No. ________________ SHIPMENT INFORMATION: Total Cartons Being Shipped _________ Shipping AIR or GROUND ____________ Total Carton Weight _________ Shipping Via (Carrier) ______________ Nordstrom Use Only: Shipment Number _____________________ Scheduled By ________________ Appointment Number _____________________ Date ________________ Appointment Date/Time _____________________ Purchase Order No. (#)

Mixed SKU (*)

Carton # (1 of 2)

Nordstrom Direct Item

#

Nordstrom Direct Color

Code

Size Units Shipped

Totals

ADVANCE SHIPMENT NOTIFICATION

SHEET___ OF ___ NORDSTROM DIRECT DATE: _______ 7700 18TH ST SW

CEDAR RAPIDS, IA 52404 (319) 846-4202 FAX: (319) 846-4208 E-mail [email protected]


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Purchase Order No. (#)

Mixed SKU (*)

Carton # (1 of 2)

Nordstrom Direct Item

#

Nordstrom Direct Color

Code

Size Units Shipped

Totals

Routing

SHIPMENT DESTINATION Store #808 - Nordstrom Direct Cedar Rapids Fulfillment Center PICK-UP Vendors are required to call the consolidator 24 hours prior to shipment for pick-up.


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LARGE SHIPMENTS For surface shipments over 10,000 lbs. Or over 1,200 cubic feet, and air shipments over 1,000 lbs., call the Nordstrom Direct Fulfillment Center #808 Shipping and Routing Desk at (319) 846-4000. CARRIER SELECTION For most accurate carrier selection please reference the Nordstrom Routing Guide on the Nordstrom Supplier website www.nordstromsupplier.com. For additional routing questions contact the Nordstrom Direct Traffic Department at (319) 846-4000.

Shipping to DC 808 ~ Nordstrom Direct General Rules

• Suppliers must call Carrier 24 hours prior to shipment for pickup and PO verification. Same-day pickup requests will not be accepted.

• Combine the weight of all cartons shipping on the same day.

• See the ‘Routing Guide Carriers’ pages for all carriers listed on this page and for further shipping instructions.

• For shipment weights greater than shown, or with any questions contact the DC Traffic Office to which you are sending merchandise.

• All shipments must be sent collect or when shipped via Airborne Express sent "Bill Receiver".

• Routing is subject to change, please check guide prior to each shipment.

Address:

7700 18th St. S.W.

Cedar Rapids, IA 52404

Phone (319) 846-4000 ~ Fax (319) 846-4208 For carrier selection please reference the Nordstrom Routing Guide on the Nordstrom Supplier website:

www.nordstromsupplier.com

Bills of Lading UPS, Burlington Air Express or Emery Worldwide Express Shipments 1. Complete one airbill for all merchandise being shipped on the same day. 2. Unless otherwise specified, ship merchandise to:

Cedar Rapids Fulfillment Center #808 7700 18th Street S.W.


14

Cedar Rapids, IA 52404 Phone number: (319) 846-4000

3. List all Nordstrom Direct purchase orders and their respective department numbers in the airbill

reference field Reference the purchase order and department numbers in the following format: PO# / Dept. # (i.e. DS490822/124, DS123456/45).

4. Select the appropriate collect billing method. See TABLE 10 on page 28 for each carrier's specific method type.

5. Select the service type indicated on the carrier selection table in the routing section of this manual for your designated carrier.

For Nordstrom Direct Consolidator Shipments (CTE, Colonial, Norcon or Gilbert) If the routing instructions on page 26 instruct you to ship via CTE, Colonial, Norcon or Gilbert East, you must do the following when creating a Nordstrom Direct master bill of lading:

1. Fill out one master bill of lading per day and mark it COLLECT. 2. Number the bill of lading pages in the format x of y where y equals the total number of pages. 3. List the following: ♦ Shipper’s name and address: ♦ Final destination address: Cedar Rapids Fulfillment Center #808 7700 18th Street S.W. Cedar Rapids, IA 52404 ♦ Total shipment weight ♦ Total shipment cubic measure ♦ Total cartons or, for GOH, pieces shipped ♦ Description of all articles shipped. The description must conform to classifications and

tariffs in effect on the date of shipment. 4. Include the following information for each purchase order being shipped: ♦ Nordstrom Direct purchase order number(s) ♦ Department number ♦ Number of cartons or, for GOH shipment, number of garments ♦ Weight

AIRBILL CARRIER

INFORMATION Burlington Air Emery Worldwide Airborne Express Field for PO #’s Special Instructions/

Additional Information

Customer’s Reference Number (s)

Internal Billing Reference Information

Billing Method Collect Bill to Consignee Bill To Consignee Account Number None None None

Service Second Day Second Day Second Day

Purchase Order Verification

To avoid refusals and penalties, verify all purchase orders prior to shipping. Only valid purchase orders will be accepted. Purchase order verification can be done in one of the following manners: • Carrier Verification: See below for a directory of participating carriers. Provide your designated

carrier (see Shipping, Carrier Selection on page 36) with your Nordstrom Direct purchase order number(s), your name and your fax number.


15

• Fulfillment Center Verification: Nordstrom Direct Traffic Department (319) 846- 4000

CARRIER DIRECTORY FOR P.O. VERIFICATION Carrier Fax Number Phone #

Burlington Air Express (973) 954-2010 (973) 954-2000 CTE (323) 357-1724 (800) 540-0244

Colonial Trucking (508) 588-7356 (800) 362-4464 Emery Worldwide Express (913) 469-8715 (800) 447-0441

Gilbert East (908) 862-8796/98 (908) 474-0024 Norcon (513) 942-2798 (513) 942-5768

DHL N/A (877) 244-6261

Appendix A: Specifics on Shipping 1) Deviations from these instructions and routing without approval of the buyer and/or the Nordstrom

Direct Traffic Department can result in a $25.00 handling charge which will be deducted from your invoice.

2) Residential shippers should call the D.C. #808 Traffic Department for routing assistance at (319) 846-4000

3) DECLARATION OF VALUE: DO NOT DECLARE VALUE ON SURFACE OR AIR SHIPMENTS 4) SHIPMENTS FORWARDED TO AN INCORRECT RECEIVING DESTINATION ADDRESS may be


16

refused or rerouted via air to the correct destination. The seller will be responsible for freight charges and handling charges to correct destination.

5) USE OF AUTHORIZED CARRIERS: The vendor agrees to pay all transportation charges if shipment is made via carrier or mode not authorized by Nordstrom Direct, regardless of whether Nordstrom Direct may incur lower or higher transportation costs. Failure to comply with Nordstrom Direct routing instructions (located in the shipping section of this manual) places full liability for loss of damage on the vendor.

6) COLLECT/PREPAID SHIPMENTS: All shipments to Nordstrom Direct must be billed collect with one exception. Prepaid shipments can be made only when the vendor is paying ALL the transportation and liability costs.

7) COD: Cash on Delivery shipments will be REFUSED. 8) SAMPLES: (I.e., NOT FOR RESALE) ship freight prepaid, write, “SAMPLES” on outside of carton.

Please refer to Sampling and Requirements section of this manual. 9) If a CARRIER NAME APPEARS ON THE PURCHASE ORDER which differs from the authorized

carrier stated in the Nordstrom Direct Procedures Manual, contact Cedar Rapids Fulfillment Center #808 Traffic Department at (319) 846-4000

10) REFUSALS a) All verified purchase order numbers must be written on each B.O.L. (Bill of Lading). Invalid

purchase orders and B.O.L without purchase order numbers will be refused at origin or destination. Such shipments may be returned at the SELLER’S EXPENSE and will be charged a penalty of $25.00 handling charge plus inbound freight charges. If accepted at destination a chargeback may be assessed.

b) Purchase orders shipped before “EARLIEST SHIP DATE” or after the “CANCEL DATE” may be refused at origin or destination. ANY CHARGES INCURRED, (including redelivery and storage charges) DUE TO REFUSED MERCHANDISE WILL BE THE SELLERS LIABILITY. If accepted a chargeback may be issued for full freight, handling charge and/or late fees.

c) Refused goods will be held on hand at a consolidator facility. The B.O.L shipper will be notified by a legal notice. If freight is undeliverable consolidator will exercise its lien to sell the goods after 30 days if disposition and carriers accumulated freight accessorial and storage charges are not prepaid to consolidator. Shipper is subject to consolidator rates

d) Seller bears full liability for loss or damage on refusals resulting from invalid purchase orders or improper shipping or packaging.

11) VENDOR CLAIM RETURNS: Past cancel, ship too soon, over shipments, unauthorized substitutions or defective goods shipments will be returned at the SELLER’S EXPENSE and the seller will be charged a handling charge ($25.00) plus inbound freight charges. RETURN AUTHORIZATION stickers will not be used on these shipments. Seller bears full liability for loss or damage.

12) SURFACE SHIPMENTS OF 7,000 LBS or 1,200 cubic feet or any air shipments over 50 lbs contact the Cedar Rapids Traffic Department (319) 846-4000 for authorization.

Appendix B: Glossary of Shipping Terms 1) Purchase Order (PO/P.O.): Legal binding contract between the buyer and vendor 2) F.O.B. Point: Freight On Board/Free On Board. A term of sale that defines who is to incur

transportation charges for the shipment, who is to control the movement of the shipment, or where the title to the goods passes to the buyer; originally meant "free on board" ship.

FOB Factory: Title of goods passes to the buyer at the factory. Supplier pays zero (0) freight unless a freight allowance is applicable. FOB Consolidator: Title of goods passes to the buyer at the consolidation point. Supplier pays all freight


17

costs to the point of consolidation, plus any additional freight costs, which are dependent on what is agreed in the freight allowance field on the PO. FOB Store: Title of goods passes to the buyer at the Nordstrom DC or Store. Supplier is liable for the shipment until it reaches Nordstrom. NOTE: FOB Store does NOT mean ship direct to store. See the Purchase Order field titled “FOB Point”. 3) Freight Allowance: Amount of freight vendor pays from the F.O.B. point; see chart below for

definitions of freight allowances

“O” (zero) Vendor pays 0 (zero) freight from the F.O.B. point.

“Full” or “Paid” Vendor pays full freight from point of origin. “1/2” or “Half” Vendor pays ½ freight from F.O.B. point. “Diff” Vendor pays the difference between

Nordstrom contracted surface and air rates from F.O.B. point marked on air shipments only.

“1/2 Diff” Vendor pays ½ the difference between Nordstrom Contracted surface and air rates from the F.O.B. point marked on air shipments only.

4) Shipping Window: Early Ship and Cancel Date of Purchase Order (PO).

On collect shipments to the distribution center, merchandise must be shipped on or between the early ship and cancel date from the factory.

On Prepaid and house carrier shipments to the consolidator, merchandise must reach the consolidator on or between the early ship and cancel date.

5) Mode: Method of transportation. Determined by buyer and indicated on P.O. as surface or air. 6) Weight Break: Weight at which carrier determination is made. 7) Consolidator: Assembles interliner shipments, organizes merchandise by D.C. and P.O., manifests

shipments by D.C. and transmits to each D.C. to pre-alert them of the merchandise and delivery date. Releases freight by assembly to the Distribution Center.

8) D.C.: Distribution Center. Nordstrom Direct distribution center #808 (also referred to as Fulfillment Center#808 and/or Store #808 processes all merchandise for Nordstrom Direct. All Nordstrom Direct orders must be shipped to the Cedar Rapids Fulfillment Center # 808 at 7700 18th Street SW, Cedar Rapids, IA 52404.

9) Volume Shipment: Surface shipments over 7,000 lbs. or 1,200 cubic feet or air shipments over 1,000 lbs. To make a volume shipment call the traffic department at D.C. #808 at (319) 846-4000. Be prepared to provide all P.O. #’s, pieces, weight and cubic measure of the shipment.

10) Cubic Feet: Length X Width X Height of cartons. 11) B.O.L.: Bill of Lading is a contract of carriage document, it serves three purposes; a) to set terms ad

conditions of the contract. B) to serve as a receipt for the goods transported. C) to serve as documentary evidence of the party entitled to deliver.


0

SECTION 8 FINANCIAL Invoices and Billing Information Non-compliance offset fees Example of Vendor Letter Example of Vendor History Reporting


1

Invoices Important Note: As of January 2001, all vendors will be required to submit invoices electronically. For EDI mapping please refer to the Technology Requirements section of the Nordstrom Inc. Supplier Compliance manual. This manual can be accessed through the worldwide web at www.nordstromsupplier.com. For additional information please contact the supplier compliance hotline at 1-877-444-1313. Invoicing Instructions: Enrollment and testing are required prior to sending an invoice (810) transmission. Suppliers can do EDI in-house or utilize a 3rd party service bureau. Please contact our EDI Invoicing Hotline at 1-206-805-5354 for enrollment information and testing procedures. Suppliers should allow 1-2 months for testing. Non-compliance: A charge, per invoice is assessed for each paper invoice sent to Accounts Payable. Enrollment and testing are required prior to sending an invoice (810) transmission. Required Information: The following information is required on Merchandise Invoices:

• Purchase Order (PO) Number • Vendor Number • Invoice Date • Unique Invoice Number • Department Number • Packing Slip Number • Payment Terms • Ship Date • Store Number and Distribution Center Number • Style Numbers and the Number of Units per style • Unit Cost and Total Cost per style • Total Units Shipped (per invoice, excluding ‘back ordered’ or ‘no charge’ items) • Total Cost (separate out any special charges. Freight must be billed separately to the

Distribution Center) Note: Invoices missing any of the required fields will be rejected Create one invoice for each purchase order. Invoice and Claim Inquiries: To better serve your account we request all invoice and claim inquiries to be sent in writing to:

Nordstrom Direct Accounts Payable 1700 7th Avenue, Suite 300 Seattle, WA 98101

Or e-mail: [email protected] Freight Invoices: Any freight charges must be invoiced on a separate document. The freight invoice must be delivered with the merchandise to the Cedar Rapids Fulfillment Center. DO NOT include freight charges on a merchandise invoice. If freight is included, the cost of freight plus a $25.00 charge will be assessed. Contact: For questions regarding invoice preparation, contact Nordstrom Supplier Compliance at 1-877-444-1313 or access the Nordstrom Supplier Compliance Manual at www.nordstromsupplier.com.


2

Non-Compliance Offset Fees Penalties and Cancellations On-Time Delivery Our commitment to customer service is dependent on the immediate availability of merchandise when the customer orders. The increased shipping and handling costs, high return rates on back-ordered items and general loss of credibility imply on-time delivery of all purchase orders is the highest priority. Due to the time-sensitive nature of Catalog and Internet business, it is imperative for merchandise to arrive in our facility by the cancel date listed on your purchase order. Merchandise that is not completely available on the agreed upon date will be subject to cancellation or the following invoice penalties. These penalties are clearly stated on each purchase order listed just below the cancel date. Please be aware that an extension does not necessarily relieve the vendor of late fee penalties.

Days Late 2-7 Business days 3%

8-14 Business days 5%15-21 Business days 10%22-30 Business days 20%

Chargback or Offset Fees: All non-compliance offset fees are based on a rate of $60.00 per labor hour. A detailed report called a Vendor History Report will be mailed to the correspondence address on file for your company. Offset fees are categorized into the following headings and subheadings:

Quality Audit summaries detailing quality failures will be e-mailed by Nordstrom Direct Product and Fit Specialists to key staff within your organization. Please work directly with the Product and Fit Specialist to resolve any quality issues. The following failure codes are used to indicate the reason(s) a 100% inspection fee have been applied against a particular purchase order or shipment. These same failure codes may apply in the event a bin check is necessary (see Quality Standards section of this manual for details). Fees in addition to the $60.00 per hour labor fee may apply if additional re-work is necessary. 100% Inspection

• Color Faults • Dirt/Oil Faults • Fabric/Material Faults • Labeling Faults • Measurement Faults • Sewing/Assembly Faults

Inbound The following failure codes are used to indicate the reason a $60.00 per labor hour fee has been applied against a particular purchase order or shipment. Inbound failure codes are specifically related to packing and shipping requirements (see Packing and Shipping section of this manual for details). Offset fees will be charged for the labor hours it takes to correct the shipment in order to process your order through the Cedar Rapids Fulfillment Center.


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Non-Compliance Offset Fees Inbound (cont.)

Documentation

• Missing or incomplete packing slip • Fax or e-mail ASN form

Packing • Cartons over maximum weight limit • Mixed SKU’s in cartons • Mixed PO’s in cartons

Packaging/Labeling • Polybag error

Too thin Not sealed Exceeds maximum size

• Missing or incorrect barcode sticker • Incorrectly shipped hanging • Incorrectly shipped flat • Incorrect hanger • Pricing/Price tags

Shipping Cartons

• Non-compliant carton (dimensions, perforations, stability etc.) • Incorrect carton width (wide vs. narrow) • Missing or incomplete carton markings

Miscellaneous Offset Fees The following offset fees may be issued for violations in the following areas. Please refer to specific sections of the Procedures Manual to ensure you are in complete compliance with all requirements. Routing

• Shipping with non-approved carrier - $25.00 plus full freight • Wrong destination - $25.00 plus full freight • Miscellaneous - $25.00 plus full freight

Order Fulfillment

• Customer backorders due to vendor negligence - $10 -$25 per unit or # of backorders • Customer cancellations due to vendor negligence - $10 -$25 per unit or # of backorders • Customer correspondence due to vendor negligence – cost of letter, postage and labor

Merchandise Returns

• Refusal of overages - $25.00 + freight +$60.00 per hour labor • Refusal of substitutions - $25.00 + freight +$60.00 per hour labor • Defective claims returned - $150 plus claim to remain valid, goods may be destroyed


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Reporting

Audit Summary Details related to a quality or inbound related failure resulting in offset fees will be e-mailed to key staff members within your organization. We ask you to provide us with e-mail addresses for key sales people, production staff as well as shipping or operations manager(s). For additions, changes or updates please contact the vendor compliance area at (206) 303-6118. Vendor History Report Once a month, vendors will be mailed a copy of their Non-Compliance Vendor History Report. This gives a breakdown of offset fees issued by purchase order. The report is your documentation that a chargeback has taken place. Please contact the vendor compliance area at (206) 303-6118 with any questions regarding this report. See next page for example of Vendor History reporting.


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Nordstrom Direct

Fred Flintstone Accounts Receivable Flintstones, Inc. 123 Limestone Avenue Bedrock, CA 99999 Dear Fred: Enclosed is current documentation of non-compliance chargebacks for November 2002. These charges were incurred as a result of shipping, packing, labeling, or quality errors. The media date listed in the far right column of the enclosed sheet will correspond with the media date on your check. Please refer to the Nordstrom Direct Procedures Manual for a complete listing of violations and their corresponding chargebacks. Please share the information on these documents with your Operations, Production, and Shipping Departments. We would like to see all vendors be 100% compliant with the Nordstrom Direct shipping/packaging guidelines. Feel free to contact me to discuss any questions or concerns you may have regarding this information. Sincerely, Vendor Compliance Coordinator Nordstrom Direct Phone: (206) 303-6118 Fax: (206) 303-6129

Nordstrom Direct Procedures Manual – Accessories/Jewelry/Gifts

2/1/2005

Vendor History Report

Dept.#

Vendor # Vendor Name PO #

Shipment #

Perf. Code Non-Compliant Description

Item # $$$

Media Date

356 12345 FLINTSTONES INC.

000000616303 000048272 407

NON-COMPLIANT LABELS(DEPT/STY/ITEM) 23982 $0.00 1102dsd


000000616303 000048272 601 ASN NOT RECEIVED 23982 $0.00

1102dsd


000000616303 000048272 602 SHIPPING CARTONS 23982 $0.00

1102dsd


000000616303 000048272 603 IMPROPER CTN DIMENSIONS 23982

$22.25

1102dsd


000000616303 000048272 610 PACKAGING/LABELING 23982 $0.00

1102dsd


000000616303 000048272 617 MISSING BARCODE STICKERS 23982

$42.00

1102dsd

FLINTSTONES INC. total $64.2

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