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September 20, 2019

New Drop Ship Compliance Program Now in Effect for Saks Fifth Avenue and Saks Off 5th Vendors

Saks Fifth Avenue and Saks Off 5th have launched a new drop ship compliance program with new chargebacks and changes to compliance requirements that is now in effect. Learn more about all the details straight from Saks Fifth Avenue in this post.

Saks Fifth Avenue has stated that they launched this new EDI update for the following reasons; in order to succeed in the challenging retail environment they need to be more accountable and focus on continuous improvement, while providing more value to both of their businesses, ultimately resulting in a better experience for customers.

What Has Changed with Drop Shipment Compliance

Introduction of Perfect Order Measure

  • Removal of weighted metrics contributing to overall score.

A new letter grading scheme

  • All vendors will be given a letter grade based on a rolling 3-month perfect order rate.
  • Vendor will be graded A, B, C, or F. ‘A’ vendors will be exempt from drop ship compliance charges.

New non-compliance chargeback of one $50 charge per order

  • Removal of $20 chargeback for each type of failure, which resulted in possible multiple chargebacks per order.

Introduction of ad hoc non-compliance charges ranging from $50-200 per order

  • For issues outside of the ‘Perfect Order Measure’ related to packaging, upc ticketing, documentation, damaged and/or missing items, etc.

Integration with the Secret Shopper Program

  • Orders placed by HBC to assess customer experience and adherence to HBC Vendor Standards, where failures can impact the monthly letter grade.

You can review the drop ship compliance changes in more detail in the document below from Saks Fifth Avenue:

Saks Fifth Avenue Drop Ship Compliance & Chargebacks

If you have any questions regarding this new compliance program, contact Saks Fifth Avenue and Saks Off 5th Drop Ship Team at [email protected].

If you need an EDI solution to ensure full compliance with Saks Fifth Avenue and Saks Off 5th and all your trading partners, 1 EDI Source can help find an EDI solution perfect for your unique business!

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