TableofContents
CHANGEHISTORY / 4
INTRO / 5
Scope / 5
SocialResponsibility / 5
GuidetoDoingBusinesswithNEX / 10
GettingStarted / 10
RelationtoPublication61 / 10
SectionA / 10
SectionB / 10
SectionC / 10
SectionD / 10
TECHNOLOGY / 11
DUNSNUMBERS / 11
HowtoObtainaDUNSNumber / 11
UPC/EAN/GTINRequirements
NEXCOM’sEDITestingMethodology / 12
12
CurrentEDIDocuments / 13
EDI856AdvancedShippingNotice(ASN) / 13
NEXCOMUCC-128LabelRequirements:RevFeb10 / 14
ExampleofaUCC-128Label / 15
UPCCatalogue / 15
PurchaseOrderInformation / 16
PartnerInformationSite / 17
REPLENISHMENT / 17
ReplenishmentOverview / 17
LOGISTICS / 18
ShippingInstructions
PurchaseOrderandShip-ToAddressVerification / 18
CrossDockASNProgram / 18
StoreASNReceivingProgram / 18
ASNAuditProgram / 18
CartonandPackingRequirements / 19
Masterpack / 20
Transportation / 20
WorkingwithNEXCOM’sTransportationOffice / 20
ACCOUNTSPAYABLE / 21
EDIInvoices / 21
EDI820RemittanceAdvice/ElectronicFundsTransfer / 21
Inquiries / 21
ProofofDelivery(POD)Requestonunpaidinvoices / 21
Trading PartnerAddressInformation / 21
Duty Drawback / 22
Post Audit Review / 22
FLOORREADY / 23
ElectronicArticleSurveillance(EAS) / 23
TicketingRequirements / 23
GeneralStandards / 23
RetailPriceticketing(clothing) / 23
Sizerequirements / 23
TicketAttachmentandPlacement / 23
U.P.C.TicketPlacementandAttachmentRequirements / 24
MiscellaneousTickets / 26
RetailPriceMarkingRequirementsbyFamilyofBusiness / 30
HangerRequirements / 31
PresentationStandards / 34
WrinklePrevention / 34

TRADING PARTNERPERFORMANCEMANAGEMENT35

Transportation Compliance37

ReturntoVendor37

UnorderedMerchandise37

ChangeHistory

Version / UpdatedBy / DateUpdated / BriefSummaryofChange
Original / ScottGibson / 5/18/2009 / Originalversion
Trading PartnerComplianceUpdate / ScottGibson / 5/27/2009 / Changedverbiageforshelflabelexpirycompliance
Sep09Revision / ScottGibson / 9/1/2009 / Addedsocialcompliance,DUNSinformation,andmerchandisingoverview
Oct09Revision / ScottGibson / 10/1/2009 / RevisedUCC-128requirements,ShippingInstructions,CartonandPackingRequirementsandTransportationSection
February-13 / ScottGibson / 2/2/2010 / RequirementofPromocodeonUCC-128label,InclusionofTrading Partner Planogramaccessinformation
May-13 / ScottGibson / 4/26/2010 / UpdatedlinktoEDIdocumentsandupdateddepartmentsrequiringpricetickets
December-12 / ScottGibson
April-13 / KellieCarter / 4/26/2013 / UpdatedTraffic,Replenishment,EDI,Links.AddedDutyFree
August2013 / KellieCarter / August23.2013 / UpdatedSocialCompliance,links,formatting
December 2014 / Kass Darrow, Sharon Standish / 12/12/2014 / Updated links, formatting, general updates
March 2015 / Kellie Carter / 3/25/2015 / Updated Vendor Compliance Rules, Added Domestic Preference Clause and Contract Surveillance.
Nov 2017 / Edgar Samaniego / 11/16/17 / Updated Vendor Compliance Rules EDI-03 & EDI 04.
May 2018 / Edgar Samaniego / 05/01/18 / Updated EDI Compliance Rule Names and Violation Descriptions.

INTRODUCTION

Scope

Welcometo theNavy Exchange Service Command (NEXCOM)2014 Trading PartnerPerformanceManual.Thismanualprovidesinformation onhowto do businesswith NEXCOM. It alsoprovidesinformationnecessaryto streamlinethe processestobringmerchandise to NavyExchange(NEX)customers,themostdeservingcustomersintheworld.

Toachievethat goal,trading partners mustsupportNEXCOM’sgoal of maximizing supplychain efficiencybyembracingindustry-wide technologies includingUniversalProductCode(UPC)andElectronic DataInterchange(EDI).Duetotheimportance ofthe complianceissuesdocumentedwithin thismanual,NEXCOM reserves theright to assesscharges for noncompliance totrading partnersthat do notfollowtheprovisions ofthismanual.

Trading partners areencouragedto reviewtheentireTrading PartnerPerformanceManualandtodirectanyquestionsregardingthe contentofthismanualtotheappropriateNEXCOM buyer.

Social Responsibility

The military ExchangeServiceshave arich,proud heritageofserving themenand womenoftheuniformedservices and theirfamilies.Thisglobalmission makes theExchangeServicescitizens ofworldwidecommunities and is rootedinthe tenets of integrity,accountabilityand compassion, which areembodied in eachservice’scorevalues. Consistent withthose values,the ExchangeServicesseektodobusinesswith contractors, trading partners, suppliers andpartners who sharethesesameenduringvaluesand consistentlyhold themselves andtheiragents totheJointLetter RegardingSocial ResponsibilityandLaborStandards.

TheaddendumreferencedinNEXCOM’sChiefMerchandising Officer’s,TessPaquette, letter canbeaccessed via the online portal.All three pages mustbe completed to complywithNEXCOM’sSocialResponsibilityCompliance.Anyquestions concerningyour compliance status should be directed toNEXCOM’s SocialResponsibilityManger.Allquestions regardingyour requirementsfor complyingshouldbedirected to theappropriateNEXCOMbuyer.

Contract Surveillance

At its sole discretion, NEXCOM may initiate or conduct periodic reviews, audits, surveillance, or administrative investigations into the activities of the Contractor, its employees or any subcontractors, directly related to the performance of the Contract, to verify the Contractor's compliance with the Contract, and to identify activities constituting fraud, waste, or abuse (FWA) of Government assets. At the sole discretion of NEXCOM, the Contractor shall be so notified of such reviews, audits, surveillance, or administrative investigations, as appropriate (and at the appropriate time). The Contractor agrees to cooperate fully during such reviews, audits, surveillance, or administrative investigations. Further, the Contractor shall take appropriate steps to correct any issues of FWA or other operational problems identified during such audits, reviews, surveillance, or investigations, including issuing payment to NEXCOM in compensation for any damages suffered by the NEXCOM Enterprise.

Vendor Responsibility for Employees

The Trading Partner is responsible for obtaining base access, in accordance with base installation requirements, for any of its, its subcontractor's, or its suppliers’ employees who require access to perform duties related to this Agreement. At all times, Trading Partner is the employer for the purposes of worker’s compensation coverage and insurance. Whenever employees of the Trading Partner, its subcontractor, or its supplier are present at a NEXCOM location in their capacity as an employee of Trading Partner, its subcontractor, or its supplier, the Trading Partner is responsible and liable for all actions of those employees and any loss suffered by NEXCOM as a result of those actions.

Domestic Preference Clause:

Preference is given to American-made items if they meet consumer demand and are competitively priced.

INSTRUCTIONS:

  • Trading partnersthatsupplyprivatelabelmerchandisemustcompletethistrading partnerprofileaddendumforeachproductionfacility(bothitsownandforallsubcontractedfacilities)thatwillbeusedtoproduceprivatelabelmerchandiseforNEXCOM.
  • Trading partnershallnotproduceanyprivatelabelmerchandiseinanyfacilitythathasnotbeenapprovedinadvancebyNEXCOM,after9/1/03.
  • Nofacilitywillbeapproveduntilthisfullycompletedaddendumissubmitted,alongwithallrequiredsupportingdocumentation.
  • ldyouhaveanyquestionsregardingthisform,pleasecontacttheappropriateNEXCOMbuyer.
  • Aseparateformisrequiredforeachfacilitythatwillbeproducingprivatelabelmerchandise(whetherownedorsubcontracted);however,afterPartAhasbeencompleted,copiesmaybemadebeforePartBiscompleted.
  • The trading partner will be required to complete the Social Compliance addendum of the online trading partner agreement.

JUN272013

DEPARTMENTOFTHEARMYANDAIRFORCEARMYANDAIRFORCEEXCHANGESERVICEDALLAS,TX75236-1598

DEPARTMENTOFTHENAVY

NAVYEXCHANGESERVICE COMMANDVIRGINIABEACH,VA23452-5724

HEADQUARTERS,UNITEDSTATESMARINECORPSSEMPERFITANDEXCHANGESERVICESDIVISION(MR)QUANTICO,VA22134-5103

POLICYOFSOCIALRESPONSIBILITYANDLABORSTANDARDS FORPRIVATELABELANDDIRECTLYIMPORTEDMERCHANDISE

TheArmyandAirForceExchangeService(AAFES),NavyExchangeServiceCommand(NEXCOM),andMarineCorpsExchange(MCX)haveaproudheritageofservingthemenand

womenoftheuniformedservicesandtheirfamilies. Themilitaryexchangesperformavitalmissioninbringinganarrayof productsandservicestomilitarymembersandtheirfamiliesservingthroughouttheworld.Ourmissionisglobal;wearecitizensofmanyworldwidecommunities,supportedbya

verydiverseworkforce. Ourendeavorsaredeeplyrootedinthetenetsofintegrity,accountability,andcompassion,whichare embodiedinourcorevalues. Consistentwiththosevalues,AAFES,NEXCOM,andMCXrequiretheirsuppliersand/ormanufacturersofprivatelabelmerchandise andmerchandiseimporteddirectlybytheexchanges,toassesstheirpractices,aswellas thoseoftheirsubcontractors,forcompliancewiththeseSocialResponsibilityandLaborStandards inthisPolicyandEnclosure(1). Anyviolationsofthesestandardsbyanymanufacturerorsubcontractormaybecauseforimmediateterminationofanyagreement.

Each militaryexchangeshallimplementaprogramensuringthatitsprivatelabelordirectlyimportedmerchandiseisnotproducedbychildorforcedlaborandmakeperiodicassessmentsofthisprogram.ThisprogramshallbebasedontheSocialResponsibilityandLaborStandardsoutlinedinEnclosure(1). Themilitaryexchangesshallalsousegovernmentagencies,suchastheDepartmentsofStateandLabor,retailers,andtheInternationalLaborOrganization,asresourcesforinformationandinsightsthatwouldfacilitatestructuringtheprogram. WewillestablishongoingcommunicationswiththeseorganizationstOhelpusstayabreastofinformationthatfacilitatesourimplementationandmonitoringeffortstoassurethatexchangeservicemerchandiseisnotproducedbychildorforcedlabor.

Whereverpossible,wewillpursueeffortstoimplementthisprogramjointlytominimizecostswherethereareopportunitiestodoso.

AAFES,NEXCOM,andMCXshallcontinuetoexpectthatallbrandnamemerchandisesupplierswillcomplywithallapplicablefederalorinternationallawsandregulationsconcerningSocialResponsibilityandLaborStandards,andshalltakeappropriatecontractualorotheractionifthisexpectationisnotmet.

·c

THOMASC.SHULL

Director/CEO

ArmyandAirForceExchangeService(AAFES)

ChiefExecutiveOfficerNavyExchangeServiceCommand(NEXCOM)

WILLIAMC.DILLON

Director

SemperFitandExchangeServicesDivision(MR)

POLICYOFSOCIALRESPONSIBILITYANDLABORSTANDARDSFORPRIVATELABELANDDIRECTLYIMPORTEDMERCHANDISE

ChildLabor:Suppliersand/orsubcontractorsshallnotemployanypersonundertheageof14years,unlesslocalminimumagelawstipulatesahigherageforworkormandatoryschooling,inwhichcasethehigheragewillapply.

ForcedLabor:Suppliersand/orsubcontractorsshallnotuseforceorothercompulsorylaborinthemanufactureofproducts.Suppliersshallnotrequireemployeestolodge"deposits"oridentitypapersuponcommencingemploymentwiththecompany.

WorkingHours:Suppliersand/orsubcontractors shallcomplywithapplicablelocallawsonmaximumdaily/weeklyworkinghours.

CompensationandBenefits:Suppliersand/orsubcontractorsshallensurethatwagespaidfora

standardworkweekareconsistentwithlocalnationallaws.

DisciplinaryPractice:Suppliersand/orsubcontractorsshallnotengageinorsupporttheuseofcorporalpunishment,mentalorphysicalcoercion,verbalabuse,orwithholdingpassportsortraveldocuments.

FreedomofAssociationRighttoCollectiveBargaining:Suppliersand/orsubcontractorsshallrespecttherightofallemployeestoformandjointradeunionsoftheir choice,consistentwithprevailinglocal/nationallawandtobargaincollectively,withoutanyactivitythatimpedesorsuppressesfreedomofassociation.Suppliersshallensurethatrepresentativesofsuchemployeesarenotsubjecttodiscriminationandthatsuchrepresentativeshaveaccesstotheirmembers intheworkplace.

Discrimination:Suppliersand/orsubcontractorsshallbeconsistentwithlocallawsregardingdiscriminationinhiring,compensation,accesstotraining,promotion,termination,orretirementbasedonrace,caste,nationalorigin,religion,disability,gender,sexualorientation,maternitystatus,unionmembership,orpoliticalaffiliation.

SafeandHealthvWorkplace: Suppliersand/orsubcontractorsshallprovidetheiremployeeswithasafeandhealthyworkplaceincompliancewithalllocallaws.

Acopyofthesestandards,translatedinthelanguage(s)oftheworkers,shallbepostedinanaccessiblecentrallocationandvisibletoallemployeesatallproductionfacilitiesthatmanufacturegoodsandmerchandiseforAAFES/NEXCOM/MCX. Anypersonshavingknowledgeofanyviolationofthesestandardsareencouragedtocontact:

ArmyandAirForceExchangeService(AAFES)

Chief,QualityAssurance

3911S.WaltonWalkerBlvd.Dallas,TX75236U.S.A.

NavyExchangeServiceCommand(NEXCOM)

ChiefMerchandisingOfficer

3280VirginiaBeachBlvd.VirginiaBeach,VA23452U.S.A.

SemperFitandExchangeServicesDivision(MR)Head,MerchandisingBranch3044CatlinAvenue

Quantico,VA22134U.S.A.

Enclosure(I)

Guideto DoingBusinesswithNEX

The Guideto Doing Business with the NEXprovides agoodoverviewand background ofNEXCOMandall trading partners areencouragedto reviewit.

GettingStarted

Afterreviewing the Guideto Doing Businesswiththe NEX, andonce abuyer hasagreed to dobusiness,trading partners shouldfamiliarize themselveswith thismanualandthePublication61documentlinked below. Once those stepsarecompletedand thetrading partnerdetermines they are able to meetthe requirements ofdoingbusinesswith theNEX as outlinedin thisdocument,the trading partner will receive a Registration invitation from the appropriate NEX buyer to completeandsubmitthe Trading Partner Agreement via the online Active Community portal.

Relation toPublication61

Asaconvenience,a listingofsectionsfromPublication61thatareespeciallypertinent tothe retailbusinesshasbeenincludedbelow.

SectionA

  • 25-ProcurementMisconductpg.14
  • 16-Advertisements/Endorsementspg.12

SectionB

  • 1–MarkingInstructionsforOverseasShipmentspg.17
  • 2–CommercialBillsofLadingforFOBOriginShipmentspg.17
  • 3–FreightDescriptiononBillsOfLadingpg.17
  • 4–ReturnofDefectiveorNonconformingGoodspg.17

SectionC

  • 2–ContractorsPriceWarrantypg.19

SectionD

  • 1–InvoiceandPaymentpg.21
  • 2–DiscountsforPromptPaymentpg.22
  • 3–DataUniversalNumberingSystems(DUNS)Numberpg.22
  • 4–ElectronicFundsTransfer(EFT)pg.22

Technology

NEXCOMis committed tofollowingindustrystandards tomaximize theutilization ofits technologyinvestmenttoensurethat thebestpossible customer serviceis provided.Trading partnersarealso expectedtomaintain sufficienttechnologicalcapabilities.

Thefollowingtechnologyresources maybe of assistance:

  • VoluntaryInter-IndustryCommerceStandardsat
  • GS1at
  • NationalRetailFederationat

DUNSNUMBERS

Alltradingpartnersmust provide a Dun Bradstreet UniversalNumberingSystem(DUNS) number.TheDUNS numberwill bethe trading partner’sidentificationnumber.Ifthetrading partnerdoes nothavea DUNSnumber(s), seebelow“Howto Obtaina DUNS Number”for informationon howtoobtaintherequiredDUNSnumber(s)fromDunBradstreet.Thereisno charge toobtain a DUNS number.

Ifacompanyhasmorethanone DUNSnumber,adeterminationneeds tobe madeonwhich areapplicable. Iftwo ormore DUNSnumbers (i.e. toreflect separatedivisions/branchesofyourcompany) must be utilized, talktotheappropriateNEXCOMbuyer as aseparateonlineTradingPartnerAgreementmustbe completedforeach DUNSnumberrequired.

HowtoObtainaDUNSNumber

1.DunBradstreetContactInformation

  • CustomerService:1-800-234-3867

2.DunBradstreetwillaskforthefollowinginformation:

  • Name
  • CompanyNameandAddress
  • LineofBusiness
  • NumberofEmployees
  • ChiefExecutiveOfficer/KeyManager
  • RelationshiptootherbusinessesthatmaybelinkedintheD&Bdatabaseforyourcompany.

3.Note:DUNSnumberswillnotbeassignedforthefollowing:

  • Differentdepartmentsatsamelocation
  • Unstaffedoperationsoflocations(e.g.automatictellers)
  • Tradestylesofadditionalnamesusedbyacompanyforbuyingand/oradvertisingpurposes
  • POBoxesusedforgeneralmailingpurpose.

4.Note:DUNSnumbersareretainedforthefollowing:

  • Ifabusinessmovestoanewlocation,theDUNSnumberremainsthesame.
  • IfabusinessstopsoperationwithoutasuccessoritsDUNSnumberisretiredandwillnotbereissued
  • Ifacompanyconsolidatesoperationsorlocations,oneofthelocation’sDUNSnumbersisretainedfortheconsolidatedlocation.
  • Ifoneormorecorporationsmergeintoanexistingcorporation,theDUNSNumberofthelattercorporationisretained.

UPC/EAN/GTIN Requirements

NEX’s scanning,ticketingandPOS systemsareequippedtoutilize UPC andEAN codes. NEXCOMrequiresallretail products soldinNEX storesbeidentifiedwithascanable barcodeattached totheproduct.PleasecontactGS1at relatedto bar-coding a product.

AllofNEXCOM’s EDI transmissionsaretraded attheUPC/EAN level.EDI

NEXCOM utilizes EDI to trade businessdocuments electronically.EDI is theautomatedapplication-to-applicationexchange ofbusiness datasuch aspurchaseorders, invoices, shipping notices andpoint-of-saleinformation.NEXCOMis committedto strengtheningpartnershipsthrough theapplicationof industrystandardtechnology; therefore,itstrading partnersmust beEDI-capableontheEDIdocumentslisted below under “Current EDI Documents”.NEXCOM’s EDI specificationsarepostedat

Alltrading partners arerequired totestwithNEXCOMthroughSPSCommerce( =nexvendor;password =spscommerce) prior totradingthe753, 754, 850,810 and856documents with NEX. Thereasonsforthisdecision areasfollows:

Validatethe VANconnection.Although thetrading partner maybe tradingwithother retailersand/orcurrentlytradingEDI transactions throughthe3rdPartyEDI Servicethe trading partner utilizes, thereis stillasetupprocessper supplier thatneedstobe completed.Theconfirmationofconnectivitytest isrepresentedbyprocessingan EDI997document.

EvenifNEXCOMis currentlytradingEDItransactionsthroughthe3rd PartyEDI Servicethetrading partnerutilizes,NEXCOMstillneedstotestandvalidate:

•Business Rules basedon OrderModel(cross-dockversus bulk)toincludeinvoicingmethod

•UCC-128Labels arescanable

•Business validationrulesaroundcase versuseachordering

•Data synchronizationofitems

EDI Service Providers often have morethanoneproductincludinganintegrationservice,whichmovesdata inandoutofthesupplier’sbackendsystems.This setup is identicaltoan EDISupplierthathosts itsown EDI serviceand requires testing.

Withoutdetailedtestingofeachtrading partner,NEXCOMwould beforced to “test”thetransactions inproduction, which would slowdown theprocess.

•Additionally,the EDI856 ASN/UCC-128 isahigh profile transactionandthequalityof thedataandbarcodescanwillmakeor break theefficienciesgained.

CurrentEDIDocuments

Thefollowingaremandatorydocuments:

  • 850PurchaseOrder
  • 855InboundPurchaseOrder(mandatoryforVendorManagedInventorytrading partnersonly)
  • 856AdvancedShippingNotice(ASN)includingUCC-128BarCodelabel
  • 810ElectronicInvoicing
  • 997Inbound/OutboundFunctionalAcknowledgement
  • 753 Request for Routing
  • 754 Routing Instructions
  • 860 PO Cancellation – buyer initiated (Future 2015)

NEXCOM also has thecapabilitytoprocessthefollowingdocuments:

  • 832Price/SalesCatalog
  • 820ElectronicFundTransfer
  • 852ProductActivityData(POSSales)

EDI856 Advanced ShippingNotice(ASN)

NEXCOM requires a VICS EDI 856ASNwithcarton levelinformationfor everyshipment toaNEXCOM Distribution Center or store.Merchandiseshipped bysmallpackage carriersrequires oneEDI 856 per carton. In orderto sendanEDI856ASN:

1.Completethe EDI section ofNEXCOM’sTrading Partner Agreement via the Active Community online portal.

2.Complete testingforEDI 753, 754, 850, EDI810and EDI 856/ UCC-128 labelthrough SPS Commerce( =nexvendor;password = spscommerce) prior totradingthe753, 754, 850,810 and856documentswith NEXCOM.

f anewEDI856ASNsystemis installed orto makechanges tothe currentprogram.

4.Transmita valid NEXCOM PO number(s) inthe EDI 856.

5.TheEDI856 mustbe100%accurate.Includeallmandatorysegments andmustmatchtheshipment.NEXCOM recommendsa “scanandpack” methodofEDI856 ASN creation.

6.Do notinclude UPCcodesforanyquantitiesnot shipped,includingmerchandisethatis back-ordered.

7.Never transmit thesame UCC-128numberonmorethanoneEDI856ASN. NEXCOM cannotcurrentlyaccept corrections on asystematicbasis.Ifa trading partner needs to correctthe ASN,contactNEXCOM’sEDIBusinessTeam at priortotransmittingthecorrectedASN.

8.EveryEDI 856ASNmustaccuratelyprovide a“ship-to”numericcodeintheN104segmentthat

matchesthe“ship-to”numericcodeintheN104ofthe EDI850PurchaseOrder.

  • Note:Itispossiblethatthatduringtheship-toaddressverificationprocess(SEESHIPPING INSTRUCTIONSBELOW)thatthefinal“ship-to”addresswillvaryfromtheoriginaladdressprovidedontheEDI850PurchaseOrder;however,the“ship-to”numericcodewillNEVERchangeduringtheverificationprocess.

9.Charges will be assessed if:

  • Trading Partner is removedfromthe programduetocontinuedinaccurateASNs.
  • ASNisinaccurate.
  • NoASNissentoritissentlaterthanthetimeofreceipt.

NEXUCC-128LabelRequirements:RevFeb10

1.Allshipmentsto NEXlocations require UCC-128 (SSCC-18) ShippingContainer labels.

2.The trading partner’sUCC-128data mustbe includedin your EDI 856ASNship noticetransmission.

3.The trading partnershould have anongoing UCC-128bar codequalitycontrol programinplacethatensuresANSIAorBprintquality when scanningwith a10-milaperture. Be suretouse“smudge-proof”labeling/ inkand high qualitypaperproducts. For best results,the correctcombination ofpaper, ink / ribbonandprintertype shouldbechosenbasedonthetrading partner’smethodofshippingsothatthelabels arrive at NEXCOM’sdistribution centers ina scanablecondition. Donotusecolored paperfor UCC-128labels,usenon-reflective label stockandink.

4.CreateUCC-128ShippingContainerlabels basedontheUCCspecifications.Ifa4”by6” labelformatisused,theUCC-128barcode shouldbe3.02” in length, 1.25” in height,with a .25”quiet zone oneach side. Onlyuse UCC /EAN-128, subsetCbar code symbologywiththenominalXdimensionof 20mil.

5.EveryUCC-128 number generatedmustbeunique (across shipments, acrossdivisions,acrossdistributioncenters,acrossdepartments,overtime).NEVERREPEATCARTONNUMBERS.Althoughindustrystandardsstate UCC-128shouldnotbe re-usedfor1year,NEXCOM stronglyrecommendstonever re-useUCC-128numbers andtodisabletheabilitytogenerateduplicate labels inthe company’s system. Ifcartons aresent with duplicateUCC-128numbers,thetrading partner’spaymentmaybe late.

6.Labels should be placed on long side or top of the carton, parallel to, but not overlapping the seam. Do not place labels over product ID numbers, UPC barcodes, retail price, or other consumer information. Be sure the label is placed so that the bar code is scannable, i.e. not on a seam or the corner of the carton, no closer than 1.25” from any edge.

7.Do notaffixaUCC-128 Shipping ContainerLabel toa carton until pack leveldetailisprovided tothecompany’sASNtransmission.

8.DONOTCOVERPRODUCT INFORMATIONWITHTHEUCC-128LABEL wheretheshippingcarton isalsothedisplay(sellingunit)cartonon thesellingfloor (examples:toaster ovens,glasswaresets, cookwaresets,etc.).Useremovable UCC-128labels, shrink-wrap each cartonbeforeapplying the UCC-128labels, ordesignpackagingto provideaspacefor the UCC-128thatdoes not interferewithsellingfloordisplay.

9.Do notcover theUCC-128label with anytape.Coveringthe label with clear tapecreates

“reflection” which causesthelabel tobeunreadable.

10.NEXCOMtransmits thedepartmentnumberin the REF segmentof the850Purchase Orderdocument.Anexampleofhowdata willtransmit is: REF*DP*597. Please refer to the850EDIMappingGuidesfor additionalinformation.

Allshippinglabels(UCC-128ormanual)requirethefollowinginformation:

1.Shipfrom(Companynameaddress)(ZoneA)

2.Ship to nameandaddress.This information is tobeobtainedattime ofroutingand couldbedifferentfrom what ison the purchaseorder

Example:NEXCOMNortheastDistribution Center1000KenyonCourt

Suffolk,VA23434(Zone B)

3.PostalCode–ZoneC

4.Billof Ladingnumber,carrierinformation-ConditionalField (ZoneD)

5.Purchase order number,NEX departmentnumberand promotionalverbiage from the SAC 15segmentof ourEDI850 PO. (Use aminimum20pointboldfont)(Zone E)

6.Identifynumber ofsmallest shippingunit, whether cartonsor palletsshippedagainsteachpurchase order (i.e. 1of3,2 of3,3of 3).(Zone F)

7.Specific “Mark For”informationwill be transmittedwithin thepurchaseorder.NEXStore/Warehousenumber (minimum30 pt. boldfont,noabbreviations).(ZoneH)

8.Standardfor ShippingContainerCodes (SSCC) -128bar code symbology with

9.(Quiet zoneof.25”,minimumlengthof3.02”andminimumheightof1.25”, 20digitshumanreadablein ZoneI)

ExampleofaUCC-128Label

UPC Catalogue

NEXCOMutilizes UPCcatalogueinformationfromOpen Text/GXSfor its softline clothingdivisionofproduct.It isstronglyrecommendedthattrading partnerspublishitsUPC catalogueinformation toOpen Text/GXS’sInovis’catalogue.Pleasecontact Open Text/GXSat

PurchaseOrder Information

1.The generaltermsandconditionsof purchase orders listedbelowapplytoall purchaseorders:

  • All FOB Origin and Destination orders must be routed /confirmed via the EDI 753 (Request for Routing) / 754 (Routing Instructions). Those trading partners not yet certified to trade the 753/754, orders must be routed/confirmed at Please contact NEXCOM’s Transportation Office via email at NEX.Traffic.Management.Group.org for any questions.
  • PurchaseordersaresubjecttotermsandconditionsinPublication61.
  • Dateofinvoicemustnotprecededateofshipment.
  • Shipmentsagainstthepurchaseordermustbeanexactmatchforitem,UPC,casepackandcost.
  • ApurchaseordermodificationfromaNEXCOMbuyerisrequiredpriortoshipmentofanyitemnotincompliancewiththepurchaseorder.
  • Nosubstitutionsoradditionswillbeaccepted.TheseitemswillbekeptordestroyedatNEXCOM’soptionwithoutpaymenttothetrading partner.WARNING–Failuretocomplywiththeseinstructionswillresultinachargebackforexcessivefreightandaprocessingfeeof$300.
  • Donotincludefreightchargesonmerchandiseinvoices.

2.Trading partnersarenottoacceptanyPOfor retailproductother thanEDI PO(s)(with theexception ofthefewtrading partnersthatare approvedforautomatedFAXservice). Trading partners thatareon EDI850PO(s)mustnot acceptfaxed copiesof purchaseordersas valid.

3.Trading partners are responsiblefor verifyingthe accuracyof everyPO detail, including“shipnotbefore”and“ship notafter”dates.Do not shipmerchandise untilalldetails areconfirmedandthecorrectionofanydiscrepanciesareverified byanEDI retransmissiondocumentingthe EDIPO changesfromtheoriginaltransmittedorder.Ifan agreementis reached to changethe costprice,the trading partnermust verifythat thebuyer completed such cost price changesandan updatedEDI PO wasretransmitted.

4.Do notshipmerchandise beforethe “shipnotbefore”dateor after the“ship notafter”date withoutNEXCOM’s priorwritten authorization.Trading partnership windows willbe validated at timeofrouting.

5.Shipment ofmerchandise that doesnotcomply withthe applicablePO, suchas style, color, size,quantity,etc.mayresult in a chargeback,even iftheNEXaccepts themerchandise.

6.Pack and MarkEDI 850 PO(s)–Trading partnersmustfollowNEXCOM’s allocations(SDQ segments ontheEDI850PO(s)) as listedonthePOandmustnot over-shipanystore.

7.NEXCOMreservestherightto rejectunauthorizedsubstitutions, invalidorders,canceledorders,earlyshipment, late shipments,over-shipments,and duplicateshipments.NEXCOMreserves theright to assess charges in respectof unorderedmerchandisewhether rejected or accepted.

8.Backorders arenotaccepted withoutprior approval in writingfromaNEXCOM buyer. NEXCOM’sEDI BusinessTeamneeds to be notifiedso that themappingcanbeupdatedtoreflectthatbackorders areallowed. The EDI850 POCSH01segmenttransmits informationon whetherbackorders areallowed or not.

CSH01SalesRequirementCode

"N" -NoBack Order.

"Y" –BackOrder ifOutofStock.

PartnerInformation Site

NEXCOM maintainsapartner information sitethatprovidessalesinformation toauthorizedtrading partners.ThelinktothePartnerSiteis

Questionsrelatedto the site

Replenishment

ReplenishmentOverview

The NEXCOMbuyerdetermines thebestmethodofreplenishment.NEXCOMutilizes ademandforecastingsystemtodriveits replenishmentfor top sellingitems acrossmostretaildepartments.Therearecurrentlysix methodsofreplenishmentofbasicproduct:

1.AutoReplenishment(A/R)WarehouseStocked–NEXCOM’sOracleRetailSystemgeneratesreplenishmentorders to the distributioncenters forstockingbasedonwarehousetransfers,inventoryand establishedminimum andmaximums.NEXstoresare replenishedfromthedistributioncenter based on sales, inventorylevels and establishedstock levels.Thepurchaseorders aretransmittedto the trading partner asan EDI 850 transmission.

2.Auto Replenishment(A/R)StoreReplenishment– NEXCOM’sOracleRetailSystemgeneratesreplenishment orders eitherdirectlyto the store orcross-dockedthrough adistributioncenterbased onsales,inventorylevels andestablishedstock levels.Thepurchase ordersaretransmittedtothetrading partner asan EDI850 transmission.

3.StoreOrder– NEXassociatesdetermine order quantityusinga hand-held devicebasedontheactive, authorized assortment. Thepurchaseorders aretransmittedto thetrading partner asanEDI 850transmission.

4.VendorManaged Inventory(VMI)–Authorizedtrading partnerswillsetupsystems to generatereplenishment orders basedon sales,inventoryand establishedminimumandmaximumstocklevels.PleasecontacttheappropriateNEXCOM buyeror theEDI Business Team ()formoredetails onthis program.VMIpartnersmustbeabletotransmit EDI 855 PurchaseOrderAcknowledgementtoNEXCOM.

5.QuickOrderEntry(QOE)–QOEisutilizedfordailystoredeliverytype ofmerchandisingforthosetrading partners that areableto providethe billinginvoice atthe timeof delivery. Examples of product thatareappropriatefor thisprogram arebread,milk andother dailydeliveryproduct.Thepurchaseorder,receipt,andinvoice match will be created attime of receipt.Onlyauthorized assortmentitems will be accepted.A purchase ordernumber isNOTrequiredon the invoicebecausethepurchase order will becreatedattime of receipt atthe store.In order to ensureaccurate costprices it isimperative thatall cost changesbesubmitted tothe NEXCOM buyer nolaterthan 30daysprior to the effective dateofthe cost change.

6.ScanBasedTrading(SBT)– NEXCOMhasa SBT programavailableto qualified tradingpartners.Pleasecontact theappropriateNEXCOMbuyer or the EDIBusinessTeam ()formoredetailson thisprogram.

Logistics

ShippingInstructions

NEXCOM requires thatalltrading partnersobtain purchaseorder routing and ship-to addressverificationprior toshippingregardless ofFOB terms on the purchaseorder. To ensureroutingbeforetheendofthepurchase order ship window, beginthe routingprocessas soon as the allocations are known and nolaterthan 48hoursbeforethepurchaseorder“shipnotafter date”. Trading Partners can receive routing up to 4 days prior to theirready to ship date provided it is requested far enough in advance.Itis possiblethe ship-toaddress that was transmittedon the purchaseorder is differentthan thefinal ship-to addressreceived duringthe ship-to addressverificationprocess.Thetrading partneristofollowtheship-toaddressreceivedduringthisship-toaddressverificationprocessanddisregardtheship-toaddressprovidedonthepurchaseorder.

NEXCOM’s current ERP solutiononlyallowsoneship-toper purchase order.Therefore,the addresstransmittedonthepurchaseorder isthedefault address. Itis possible, due todifferentprocessingrequirementsforaparticularpurchase orderthat thefinalship-to receiving point duringtheverificationprocessmight varyfromthe default ship-to transmitted in the purchaseorder. It istheresponsibilityofthe trading partnerto obtainthe verificationprior to shipping.

NEXCOM requires all truckload shipments to be palletized.

Anyquestions relatedto theseinstructionsshouldbe . Allow48hoursforaresponseduringpeakroutingperiodsor afternationalholidays. Anyquestionsrelated tothe addressonthepurchaseordershouldbedirectedto:EDI Business .

CrossDockASNProgram

NEXCOM has implemented aCross DockASNprogramatitsdistribution centers to speedmerchandisetothesellingfloor.Toeliminatemanualdata entryandreducehandling, NEXCOM’scross dockprograms utilize the EDI 850PO SDQ segments (seeEDI 850 mappingforfurtherdetails),the EDI 856 ASN,theUCC-128labels andfloor readymerchandise standards (applies tosoftlineclothingproducts).Merchandise ismovedfromthe inbound truckviathesortation systemandonto theoutbound storedeliverytruck,butonlyiftheEDI 856ASNis consistentlyaccurate.

Duringour implementation ofthe Cross DockASNprogram,NEXCOMexperienceda 75-90%reductioninprocessingtime which gets the product to storesfasterand streamlines theorder topaycycle.

StoreASNReceivingProgram

NEXCOMhas implemented aStore ASNReceivingprogram toincreasetheefficiencyof thereceivingprocess.Merchandiseisreceived against theASNwithoutan item-by-itemverificationofquantitybutonlyiftheEDI 856 isconsistentlyaccurate.DuringtheimplementationoftheStoreASNReceivingprogram, NEXCOMexperienceda75-90% reduction inprocessingtime whichgets theproducttostoresfaster and streamlines theorder topaycycle.

ASN AuditProgram

NEXCOM iscommitted tousingtechnologyto movemerchandise throughitssupplychainasefficientlyas possible, includingits Cross Dock andStore ASNReceivingprograms whichpost thereceipt to alocation’s perpetualinventorywithoutperforminganaudit.This ispossibleonlywhen theaccuracyofshipmentsis consistentlyhigh.NEXCOMrequires that the EDI856ASNsare100%accurateand thatthetrading partnerhas institutedanaccuracyprogramtoensurecompliance.

The NEXCOM auditlooks atpiececountaccuracy.Atrading partnerwillnot beeligibleforNEXCOM’sCrossDock ASNprogram orASNStore Receiving program untiltheauditshows consistentlyhighaccuracy. The goalmustbe 100%accuracyonallshipments.TheUPC codeson physicalmerchandisemustmatch the UPCand transmitted on the EDI856ASN.

Everytrading partner is subject to thefollowingaudits:

  • EDI856ASNQualificationaudit -AsNEXCOMmovesatrading partnerontoitsCrossDockASNprogramorASNReceivingatthestoresprogram,anauditwillbeperformedtoensuretheEDI856ASNisaccurateenoughtomoveontotheseprograms.
  • Ongoingaudits–Onceatrading partnerismovedtotheCrossDockorASNStoreReceivingprogram,randomshipmentswillbeauditedtoverifytheaccuracycontinuestobeacceptable.
  • Integrityaudit–Ifatrading partner’sauditresultsindicatefrequenterrorsandaccuracypercentagesfallbelow99.9%,thetrading partnerwillberemovedfromtheCrossDockorStoreASNReceivingprogramandNEXCOMwilldiscontinuetheuseoftheEDI856ASN.Trading partnersthatremaininintegrityauditformorethansixmonthswillbesubjecttoadditionalcharges.

CartonandPackingRequirements

1.Sealcartons securelywithsecurity/reinforcedtape.Allopenings onallsides of the carton,including edgesmustbesealedusingthe “H”method. Donotusematerialoncartonsthatmaydamagethe sortationequipment.Donotusebands, straps, staplesor stringpermittedaroundexteriorofshippingcontainer/carton.

2.No shrink-wrapping or plasticcoveringispermittedon exteriorofcartonbecause itmayadverselyaffectscanabilityofthe UCC-128 label.

3.No metalortapemaybe used.

4.No metalortapemaybe usedtobundle hangers within cartons.

5.No excessive tissueorpaper asfiller to“cube” or “fill-up” under-packedcartons.Cardboards orchipboardis permittedto protect goods.Tissuemaybeusedonlyas necessaryto protectpackagingfromstickingand damageduringtransit.

6.Smallitemsmustbe packedso that itemsare notconcealed withina carton.

7.Breakable productsmust be packedtopreventbreakage duringnormalshippingandhandling.

8.Carton width mustallowhangers tofit squarelyin the carton, notatan angle.

9.Use a shipping carton thatfitsthe garment.Ideally, merchandise shouldbe packed ¼ inchbelowthe topofthe carton, and 1/8inchfromthe sides of the carton.

10.Do notover or under packthe carton, which impairs the integrityof contentsandmayimpairabilityto scan theUCC128label.