6/10/2013 106: How to Do Business with Dillard’s Anita Spence, Dillard’s, Inc. June 2013 © GS1 US 2012 1 6/10/2013 Partnership: Working Together • Today’s discussion is about: –Increasing Increasing Speed to Market –Reducing Supply Chain Costs –Increasing Profitability for Both Companies 3 © GS1 US 2012 Store Footprint Number of Stores by State 2 2 1 5 3 4 3 5 17 3 3 8 10 6 10 6 6 16 10 8 6 60 15 6 10 8 Owned 88% vs. Leased 12% 12 14 Leased 11% 42 Owned building on leased land 5% Partially owned and partially leased 2% Owned 82% 283 stores and 18 clearance centers spanning 29 states plus online at www.dillards.com 4 © GS1 US 2012 2 6/10/2013 Merchandising Strategy • Executing three-point brand appeal – Limited distribution, high profile brands – Highly regarded national brands – Nationally revered exclusive brands • Elevating & Equipping store associates to exceed customer expectations • Engaging customers in relational store formats with edited assortments • Effecting Eff ti improved i d merchandise h di fl flow b based d upon d data t analysis and logistical response 5 © GS1 US 2012 Engaging Customers in Relational Store Formats with Edited Assortments Relational Store Formats EDGE shops provide boutique, relational appeal as well as consolidation of smaller, yet high profile profile, brands – Cosmetic EDGE shops from 99 to 111 in 2013 Brahmin Shops New KORS shops support headquarter mentality of Michael Kors product lines 6 © GS1 US 2012 3 6/10/2013 Improved Merchandise Flow • Inventory Strategy Update – Change of mindset in inventory strategy – Sharpen p focus by y increasing g depth p in best sellers & eliminating slow sellers – Presenting a cleaner, more edited assortment – Fewer units on floor creates more urgency of purchase – Positioning inventory to move quickly to stores based upon immediate sales feedback – HOLD & FLOW Hold and flow made the difference in our total handbag business.” – Kay White, VP Merchandising 7 © GS1 US 2012 The Merchants • Enhanced Business Intelligence for reporting and managing data • Looking for richer content – images and descriptive information • Automate processes to allow more time to be spent on analysis and buying and selling • NRF Color Code – update to our inventory system, analytics at NRF color level and auto categorization on the web • Enhanced classification structures in all departments allow better inventory analysis 8 © GS1 US 2012 4 6/10/2013 Internet Store at www.dillards.com • Continue to maximize opportunity in omni-channel approach at www.dillards.com www dillards com • Opened 850,000 sf Internet fulfillment center in Spring 2012 • Began shipping internationally in October of 2012 • Launched e-giftcards December 2012 9 © GS1 US 2012 What does What does Dillard’s need Dillard’s need from you? from you? • Product data – Loaded quickly & accurately to Vendor Catalog • Product Images/Attributes – UPC Catalog/Ebiz Upload – Dillard’s Studio Process » Multiple Views » All Colors – Method of Delivery – Consistency • Brand B dL Logos • Lifestyle Images – Frequency and Quality – Method of Delivery 10 © GS1 US 2012 5 6/10/2013 What does What does Dillard’s need Dillard’s need from you? from you? • Timing of Marketing Materials • Competitive p Market Feedback • Brand affinities of your product • Read YOUR Ratings & Reviews on Dillards.com • N Notification tifi ti off any media di mentions ti and/or advertising 11 © GS1 US 2012 EBIZ Security Admins • Informed when new functionality y added and should forward that information on and give appropriate people security • Deletes users that are no longer with the company and add new users as necessary • Do you know who your Admin is? © GS1 US 2012 6 6/10/2013 EBIZ Security Admins • Every y user must have their own unique q ID • Our #1 Issue are Admins that do not maintain users • People who have left must be deleted, or they will be able to access our shared information • EBIZ access should be given to Accounting, Sales, Customer Service, Logistics and Management (based on need) © GS1 US 2012 EBIZ What is Available • Vendor Analysis • Unit U i S Selling lli D Data • Vendor Report Card • Accounts Payable • Image Upload • Transportation and Routing Requests • Vendor, Routing and TMS Guides • EDI Mapping • Port Of Entry set up © GS1 US 2012 7 6/10/2013 EBIZ What’s New? • Transportation p Management g System y ((TMS)) –Must have a Secure ID to route shipments • Image and Copy Upload • Buyer Workbench Style Upload • Purchase Order Retransmit Request • Purchase Order Ship Date Inquiry • Small Vendor Portal © GS1 US 2012 EBIZ What’s In Progress • ASN Audit Discrepancy detail on Chargebacks • Virtual ASNs via Small Vendor Portal • EBIZ Facelift! © GS1 US 2012 8 6/10/2013 Image Committee Roadmap Phase 1 eCommerce Images Phase 2 Marketing & Planogram Images Phase 3 Extended Extended Attributes 2010 2011 2012 17 © GS1 US 2012 GS1 US Images Committee • Create Standard Guideline for eCommerce Product Images –Retailers/Suppliers/3rd Party Providers • Standardized Image Specifications & Meta Data • Standardized Image Transport Methods –Approved Guideline 2Qtr 2012 18 © GS1 US 2012 9 6/10/2013 How Image Guidelines will Benefit the Business Process Vendor Benefits • Consistent Image Quality and Presentation • Produce One Set of Images for All Retailers • Reduce the Need to Provide Samples for Retailers to Handle Their Own Photography • Allows Product Images to be Provided Much Earlier in the Business Process Cycle (Pre-Marketing Possible) Retailer Benefits • Consistent Format and Transport from Vendors • Less Errors in Matching Image to Product • Unique Name and Metadata Available for Automation • Expense Reduction • Product Published Earlier in the Process Due to Image Availability 19 © GS1 US 2012 Image Transport Methods • Provide URL and Image Name –3rd Party Catalog –EBIZ Standard Spreadsheet Upload –EDI 832 20 © GS1 US 2012 10 6/10/2013 Extended Attribute Request • • • • • • • • • • • • • • • • • • • • • • • October 1, 2011 Dear Dillard’s Supplier, Dillard’s values your partnership and remains committed to find ways to improve the flow of information required for supply chain efficiencies. With the increased pressure in Retail to shorten the item setup, order cycle, receiving and B2C business process, we have found that additional product attributes are needed. We are asking our suppliers to begin sending extended product attributes in addition to the current Product and UPC information provided today via the 3rd Party Catalogs, GXS or InterTrade. The spreasheet of additional attributes is attached. Not all of these attributes will apply to your merchandise. Please review the list and begin sending the attributes that are applicable. You may contact your 3rd party UPC Catalog provider for assistance in loading the data: GXS – 1-877-446-6847 opt 1, Email – [email protected] InterTrade - 1-800-873-7803 option 2, Email - [email protected] We would like to begin receiving this data as soon as possible. As always, Dillard’s will work with you on your timeline, but we expect to receive the extended attributes from all of our vendors by February 2012. If you have any questions about this requirement or how it applies to your product, please contact us at [email protected]. Dillard’s appreciates your continued efforts to build on our partnership. Sincerely, Anita Spence Director, Vendor Relations Dillard’s 21 © GS1 US 2012 GS1 US Extended Attribute Committee Identify Extended Attributes Needed to Support eCommerce Business Process • Standardize St d di Definitions D fi iti • Define Usage – Common to all Product Categories – Specific to Product Categories – Provide Business Examples • Define Transport Methods – EDI Mapping for 832 – Spreadsheet Template 22 © GS1 US 2012 11 6/10/2013 Attributes by Product Type • Common to All Products – Marketing Message (Copy) – Fabric or Material – Care Instructions – Brand Name • Specific to Product Type – Dress Length – Heel Height – Pant Inseam Length – Hazardous Material Code 23 © GS1 US 2012 Dillard’s Supply Chain Goals How can we build a better value for our customers? g q quality yp product for our How can we ensure a high customers? What are ways that we can minimize total cycle of orders? What are ways that we can partner to reduce or eliminate excess costs? © GS1 US 2012 12 6/10/2013 Customer Driven Supply Chain Must respond quickly to customer demand Must respond quickly to customer demand Liquidate the non – sellers Replenish the sellers Re-Order the BEST SELLERS © GS1 US 2012 What is “Poolstock”? • Poolstock means to “pool” merchandise in a central location to replenish sold merchandise – Aids in providing a “lighter cleaner” inventory level in the store – Pooling is ideal for both short lived fashion items (product placement is key) – Also ideal for basic items with proven selling – Shortens replenishment lead time © GS1 US 2012 13 6/10/2013 Poolstock Processing • Items are sent to Poolstock via DC Processing g q slot location to unique • Each sku assigned • Store replenishment (picking) occurs daily © GS1 US 2012 Distribution Requests • Proper carton labeling • UPC barcodes • Mark cartons with “HANG” if product is on hangers • Pack by Style • Use new “matte black” hanger, according to Voluntary Inter-Industry Commerce Standard • No direct store delivery (unless pre-approved) © GS1 US 2012 14 6/10/2013 Speed to Market Strategies • Properly utilize Transportation Management System – TMS • Work to become an “cross-dock” vendor • If applicable – use DC Bypass programs • Identify poolstock items (must be good fit) © GS1 US 2012 Eliminating Common Roadblocks • Advance Ship Notice (ASN) Timing –Electronic Data Interchange (EDI) –GS1-128 GS1 128 C Carton t L Label b l • ASN Accuracy –UPC Integrity –Scan & Pack • Communication –Purchase Orders as a Tool –Contacts © GS1 US 2012 15 6/10/2013 856 Advance Ship Notice Not Transmitted via EDI Received After PO was Docked Failed EDI Translation Data Errors • Invalid Sender ID • PO Number Invalid Dillard’s DC will not • Store Number Invalid hold a shipment to h ld hi tt wait for an ASN!!! GS1-128 Carton Label Missing or Un-Readable GS1-128 Carton Number Not Listed in ASN 31 © GS1 US 2012 GS1-128 Carton Label Issues • Label Placement –Not on Top or Bottom of Carton! • Missing or Un-Readable Label –Poor Print Quality –Barcode Size –Quiet Zone - .25” Minimum M il Label Mail L b l for f Testing: T ti Dillard’s Inc. Attn: EDI Department 1600 Cantrell Blvd Little Rock, AR 72201 32 © GS1 US 2012 16 6/10/2013 ASN Accuracy • DC’s Scan GS1-128 Label & UPCs Within Carton –If Carton Content Matches ASN, Shipment Proceeds –If If Carton Content Does Not Match, DC Must Rescan 33 © GS1 US 2012 Notify Merchants of Any Changes ASAP! • Style/UPC Changes –Do Not Automatically Update from Catalog –Contact Dillard’s Merchant to Request Changes © GS1 US 2012 17 6/10/2013 Approved Changes to Style/UPC • Change in Material Content –100% Cotton to 60/40 Cotton/Poly y • Formulation or Ingredient Change –Adding SPF 15 to Face Bronzer • Visual Changes –Embellishments Added • Change in Manufacturer of Product –UPC = Common in U.S. EAN = All other parts of the globe © GS1 US 2012 Substitutions • Scan to Pack – Eliminates Packing Errors – Ensures GS1 GS1-128 128 Carton Label is on Correct Carton • ASN file created from UPC scanned into carton – Improves ASN Integrity 36 © GS1 US 2012 18 6/10/2013 Timing of an 860 • Coordinate with your Merchant the latest date you can process a PO Change! • Merchant Lockout: 3 – 30 Days Prior to Start Ship! 37 © GS1 US 2012 Use Your PO As A Tool • Verify Accuracy –UPC/Style/Color/Size y –Cost & Retail • Ship & Cancel Dates –Reduce discounts on late shipments –Prevent Refusals • Ship To Location –Reduce Mis-consignment Charges © GS1 US 2012 19 6/10/2013 Communication © GS1 US 2012 Ways to Communicate • Conference Calls • Webinars • On-Site Visits – Corporate Offices – Distribution Centers • Vendor Seminars • Vendor Guide © GS1 US 2012 20 6/10/2013 Vendor Relations Staff 41 © GS1 US 2012 21
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