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August 30, 2017

Saks Fifth Avenue has made several vendor compliance changes and added two new shipment accuracy chargebacks with large penalties for shipment errors.

New Chargebacks Effective October 1, 2017:

  • Vendor Audit Program, $1000 per month charge
  • DC Printed Tickets Sent to Vendor

Vendor Audit Program Chargeback Details, as outlined in the SFA Vendor Standards Manual page 45.

The Vendor Audit Program is a program that ensures vendor inventory integrity and accuracy. Vendors who are placed into the Vendor Audit Program will be charged a fee of $1,000 per month for each month they are on the program, for a minimum of three months. Vendors will stay on the program until they have demonstrated three consecutive receipt months of 99.5% error free shipments. Calculations are performed monthly. Saks Fifth Avenue reserves the right to keep the discrepancies found during audit and assess the appropriate expense offset fee. Vendors will be placed into the program for discrepancies as follows:

DC Audit Details:

  • Vendors with poor audit results with an item error rate of 0.50% or higher will be placed into the Vendor Audit Program.
  • Audits are performed by comparing and verifying the packing slip data or the ASN with the associated GS1-128 label (at store, style, color, size, quantity level) against the physical units. If shipment discrepancies are identified during the audit process, an expense offset fee will be assessed.


  • Vendors who have poor results of 2.0% shortage or higher found during Inventory will be placed into the Vendor Audit Program.

New Compliance Updates, located in the SFA Vendor Standards Manual in the red text.

  • Updated Store List
  • Updated Routing Guide
  • Updated Vendor Relations Contacts
  • Elimination of Requirement: Segregate the stores by placing heavy cardboard dividers between them
  • OFF 5TH Ticket: updated required size of the “YOU PAY” price
  • New Vendor Audit Program

For additional information on this Saks Fifth Avenue update, contact Vendor Relations at vendorrelationsny@hbc.com

Read all the updates on the Saks Fifth Avenue Vendor Site or download their documents below:


SFA Shipping Routing Guide August 8 2017

SFA Vendor Standards Manual 08-25-2017

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