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Message From Burlington Coat Factory

Wednesday, February 17, 2010

Burlington Coat Factory continues to make significant changes to our supply chain operations and systems. As previously communicated to our vendor community, we are implementing a new warehouse management system (WMS). This overhaul of our supply chain software will result in higher levels of accuracy and substantially improved flow of your goods to our stores. As you have experienced with most of your other trading partners, this new system relies on accurate ASN’s and UCC128 labels from vendors in order to achieve this enhanced efficiency.

As stated in our vendor manual, we require ALL vendors to provide compliant ASN/UCC execution with Burlington Coat Factory. For a vast majority of our vendor/partners, this ASN/UCC ability already exists. Thank you for your ongoing support.

Conversely, for those of you who are not EDI compliant, please adjust as follows:

1) Immediately leverage our free BCF Gateway to support our requirements.

2) For those who prefer to utilize their own systems, test with BCF to become EDI certified utilizing your own system (preferred). Until EDI testing is completed, please fulfill your requirements through our Gateway solution.

For the 1000+ vendors who already fulfill orders to BCF with either traditional EDI or the BCF Gateway, no change in process will be required.

In short, we expect 100% ASN/UCC compliance from our vendors. To punctuate our resolve on this matter, we have escalated our ASN/UCC chargeback policy for repetitive violators of our policy.

For those companies that have incurred 3 [or more] charges in the last 3 months, we have changed our chargeback schedule from 5% of the cost of the purchase order [per occurrence] to include a surcharge adding an additional 2.5% [7.5% of the cost of the purchase order] after your third charge and another 2.5% [10% of the cost of the purchase order] after your 4th charge.

We have been requesting our vendor’s compliance on this subject since September 2007. I have increased the charge amounts in an effort to make you aware of our need for ASN’s before your merchandise arrives. If you would like to discuss this matter further please arrange a conference call or an onsite meeting by emailing Vendor.Meeting.Requests@coat.com. If you have any general questions please contact vendor.relations@coat.com. Traditional EDI testing can be initiated at edi.questions@coat.com . Inquiries for fulfilling EDI requirements through the BCF Gateway system can be directed to edi.gateway@coat.com.

Thank you for your partnership and your ongoing support of BCF initiatives.

Michael Abruzzi
Manager of Vendor Compliance
Burlington Coat Factory
609.387.7800 x2611

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