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6/10/2013
106: How to Do Business with Dillard’s
Anita Spence, Dillard’s, Inc.
June 2013 © GS1 US 2012
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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
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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
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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
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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
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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
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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
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© 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
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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
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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
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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
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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!
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Image Committee Roadmap
Phase 1
eCommerce Images
Phase 2
Marketing & Planogram Images
Phase 3
Extended
Extended Attributes
2010
2011
2012
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© 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
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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
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Image Transport Methods
• Provide URL and Image Name
–3rd Party Catalog
–EBIZ Standard Spreadsheet Upload
–EDI 832
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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 – cshelp@gxs.com
InterTrade - 1-800-873-7803 option 2, Email - CustomerService@intertrade.com
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
vendor.compliance@dillards.com.
Dillard’s appreciates your continued efforts to build on our partnership.
Sincerely,
Anita Spence
Director, Vendor Relations
Dillard’s
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© 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
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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
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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
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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
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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)
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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
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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
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© 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
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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
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© 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
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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
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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!
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© 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
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Communication
© GS1 US 2012
Ways to Communicate
• Conference Calls
• Webinars
• On-Site Visits
– Corporate Offices
– Distribution Centers
• Vendor Seminars
• Vendor Guide
© GS1 US 2012
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Vendor Relations Staff
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