Introduction
Our Vision
Inspire Every Household to Shop with Us for Life
Shop Direct Group (Shop Direct) is the UK’s leading online and home shopping retailer.
To support the growth online Shop Direct has a highly valuable and efficient infrastructure that no other UK retailer can rival – sourcing, warehousing, single pick and pack distribution, next day home delivery to customers.
We have the ability to deliver to every UK postcode daily.
A 21stCentury Business
Over the past four years, we have transformed our business. We have sold our stores and merged the home shopping businesses of Littlewoods & Shop Direct (formerly GUS) to create the UK's leading home shopping retailer employing over 9,500 staff within the group.
In January 2006, we moved in to our new £31m state-of-the-art head office in Speke, South Liverpool. A breathtaking grade II listed former aircraft hanger, Skyways House provides employees with an open and exciting working environment, with all the high quality facilities a modern head office should offer.
We have also strengthened our management team and have worked hard to build a strong platform on which to move the business forward.
Culture
Ours is a business based on four simple values:
-
Putting the Customer 1st
-
Keep it Simple
-
Treat Each Other Well
-
Make A Difference
Following these values will help provide superior value for our customers, increase our market share and ensure a profitable future for our shareholders, colleagues & trading partners.
Our Aim
To trade with suppliers who are able to provide goods or services consistently to an agreed specification whilst maximising service & margin.
Shop Direct has published a number of manuals that standardise procedures, reporting formats, and technical specifications that could be either a business, industry (e.g. ISO) or legal requirement.
It is the expectation of Shop Direct that our suppliers remain current with these standards in order to fully comply with our requirements, which may change from time to time.
All manuals displayed on our website are subject to periodic review and update without notice.
Supplier Engagement
The Buying Team
The core Product Team comprises of Buying, Merchandising, Design and Quality Assurance functions.
Our Design team look for emerging trends from the catwalk and design products that reflect these trends but are tailored to our customers.
The Buying team select / develop product that will create a cohesive & competitive offer, from core product to the latest looks including highly desirable brands.
The teams travel globally to source the best quality products at the best price to ensure we can offer our customer great value for money and generate enough profit to sustain our business.
Our QA team (Product Technologists/Engineers) work closely with our Buyers and Suppliers to set corporate benchmark standards. They are responsible for all aspects of quality across our ranges e.g. sizing, materials, construction and packaging, to ensure the product arrives at our customer’s door fit for purpose and looking great.
Our Merchandising team has the job of deciding how much they think each product will sell and how much to buy. They organise delivery into our DC's and aim to ensure the product is available for the customer to buy when she wants it and that our delivery promises are kept.
The core product team is surrounded by a number of other teams who provide operational support. They look after the systems & processes we use, create new ways of working, and ensure the core product team is armed with the information it needs to drive the business forward.
Supplier Selection
All potential suppliers introduced to the business go through a similar process of engagement.
Buyers submit initial details of the supplier along with a business case to the Sourcing Department. Sourcing complete a financial/credit score as part of account set up, carried out through Dun & Bradstreet, the outcome of which may be used to determine the level of business initially placed with the new supplier.
Shop Direct requires all suppliers to sign a formal Terms of Purchase Agreement, which, together with any purchase orders issued, forms our commercial contract with the supplier.
Only by signing the Terms of Purchase agreement can a supplier proceed to provide Shop Direct with goods/services as detailed on any order subsequently placed.
If you are interested in becoming a supplier to Shop Direct, please send your company details to us via: supplierenquiries@shopdirect.com
Supplier Audit
Shop Direct may require an onsite supplier audit. Either the Product Technologist/Engineer attached to the buying area or a member of our Supplier Audit team will usually complete this audit.
CSR Audits will be carried out, at all own-brand factory sites, by our in-house audit provider Compliance Direct Ltd. Suppliers carry the cost of these audits.
Audits are centred round product and/or production capability & process (Technical Audit) and social (CSR Audit).
See section on CORPORATE RESPONSIBILITY, below.
Corporate Responsibility
Ethical & Environmental Sourcing Policy
Shop Direct operate as a business according to the following core values:
-
Putting the Customer 1st
-
Keep it Simple
-
Treat Each Other Well
-
Make a Difference
Our Preferred Definition of Social Responsibility
We will do our best to maximise the positive impact of our business and minimise the negative. Using our business' core values and the above definition, we frame our responsibilities as a retailer towards ethical sourcing, the environment and the communities within which we operate.
Ultimately, we acknowledge our responsibility to respect human rights and are proud to be a member of the United Nations Global Compact, a diverse group of 5000 companies and other organisations that support corporate social responsibility. The Global Compact is the personal initiative of the UN Secretary General. Shop Direct were the first UK retailer to participate and we held the 2008 Chair of the UK Network.
Our company is involved in a number of current projects with regard to reporting and supporting local networks. The Global Compact advocates respect for 10 principles based on UN declarations and conventions including the Universal Declaration of Human Rights.
We report our performance in respect of these ten principles.
Ethical & Environmental Sourcing Audits are conducted as due diligence by representatives of Shop Direct of all non-branded factories supplying direct. The Ethical & Environmental Audit has been based on the Shop Direct - Code of Conduct.
Progress with corrective action plans (CAP's) will be requested from the suppliers against agreed timescales (feedback provided by a supplier must include photographic evidence, where appropriate). Meetings with suppliers (following assessments) may be held to discuss action-plans and timescales. The Sourcing Director is made aware of all cases of serious non-compliance.
Shop Direct will not evaluate Brand suppliers with regard to Ethical & Environmental Sourcing, although we do monitor our branded suppliers dedicated policies. However, we reserve the right to inspect Brand supplier factory premises when we suspect that a robust policy is not in place and/or work closer with the Brand to improve their internal CSR management and monitoring.
Environmental: Meeting Our Packaging Waste Obligations
The Producer Responsibility Obligations (Packaging Waste) Regulations 2007 encourages businesses to reduce the amount of packaging they use by setting targets for recovering packaging waste.
In line with Shop Direct policy, your attention is drawn to the following UK regulations:-
-
Producer Responsibility Obligations (Packaging Waste) Regulations 1997. This regulation encourages businesses to reduce the amount of packaging they use by setting targets for recovering packaging waste.
-
Packaging (Essential Requirements) Regulations 1998. As part of the combined efforts of industry and the Government to reduce the environmental impact of packaging waste and encourage recycling, these rules have been introduced to control the design and composition of packaging.
The regulations mentioned above require businesses to recover and recycle packaging, ensure minimisation of waste and that the final disposal of waste is not detrimental to the environment. It is the responsibility of the supplier to ensure that he / she is familiar with these regulations.
Shop Direct has a legal obligation to report annually on the quantity of packaging supplied to our customers. Periodically, you will be asked to supply accurate information to Shop Direct to help fulfil this obligation.
Environmental: WEEE Directive
The UK Waste Electrical and Electronic Equipment (WEEE) regulations came into force on the 2 January 2007. Brand owners, importers and distributors of Electrical and Electronic Equipment (EEE) are affected, attracting an obligation under the UK WEEE regulations.
Do you have WEEE obligations? For the answer to this question please refer to: http://www.environment-agency.gov.uk/subjects/waste
Product Selection & Quality
Product Selection
Shop Direct goes through a number of processes with all suppliers that together form the selection process.
Buying Cycle
For own brand product, we carry out the following process approx. 12 months in advance of product appearing in one of our catalogues.
-
Our Design Team gather Design Trends
-
Our Directors agree and deliver the divisional strategy to Heads of Buying & Merchandising
-
Heads of Buying, Merchandising and QA deliver individual department strategies by setting clear objectives for their teams.
-
Buyers and Merchandisers create the seasonal strategy for their particular area, focusing on SWOT, Sourcing, Buying and Merchandising key objectives.
-
Between them Buyer, Merchandiser, QA & Design create a framework at category level which includes demand, total lines & items, total pages and density by brand.
-
The Design and QA teams develop and pass them on to suppliers to create initial samples.
-
At this point open costings are usually also requested from the suppliers on key lines within the range
-
Heads of B&M and their Directors review and sign-off the framework
-
The Buyer, Merchandiser, Designer & QA create the range and between them agree the product selections.
-
Buyers can then source product from suppliers and agree cost prices, lead times and minimums.
-
Heads of Buying, Merchandising & QA hold category selection meetings for final product sign off.
-
Heads of Buying and Merchandising hold a finalisation meeting to enable to sign off any changes made at selection meetings and to ensure product is ready for photo shoots.
Product Quality
The Supplier Website includes documentation of all Supplier Product Quality requirements, which apply to all merchandise supplied to Shop Direct. Deviation from these requirements could result in the issuance of a Supplier Charges report and could also lead to the imposition of charges.
Should the product you deliver to our warehouse fail to meet the required standard/specification, a QA/Buyer/Merchandiser will detail for you how or why the product delivered does not conform. Physical evidence may be provided. In addition, the QA/Buyer/Merchandiser will provide written details of the appropriate action we plan to take. The costs of any action will be broken down for the vendor.
We may require rectification of the product to bring it up to acceptable standard. We will normally commence any rectification work once we have your agreement, however for logistical reasons this may not always be possible.
The rectification costs for non-conforming product are charged back to the supplier via an appropriate method, which the QA/Buyer or Merchandiser will discuss with you at the time.
Purchase Order Fulfilment
Purchase Orders
Formerly known as Contracts, the Purchase Order (PO) is a legally binding document, which is a purchase order for the supply of goods.
Product - Colour/Size/Specification/Description
It is important that you agree with the buyer up front the product colour/size/specification/description as this is what we will be quoting on contracts raised.
We expect you, the supplier, to put this information on your packaging, labels, packing lists, delivery notes, shipping documents, invoices, etc.
Short or Over Delivery
Quantities that do not match those detailed on the supplier contract issued represent either a short or over delivery. If you are likely to short-ship or over-ship, the amended quantities need to be advised to the Buying team prior to shipping.
This will enable the Buyer to complete and send a contract amendment authority.
A contract amendment authority will only be issued for over-shipped product if the Buying team accepts the additional quantities. If product is over-shipped without notification the supplier will be unable to book the extra amounts into the warehouse and Shop Direct will only pay for the quantity originally ordered.
Late shipment of product must be advised to the Buying Team as quickly as possible. A late shipment will always require the Buyer, or their assistant, to issue a contract amendment authority.
Please also note that supplier penalty claims may be imposed for late shipment.
N.B. SDG will accept customer pre orders and promise a delivery date to the customer before the contract is delivered. In order to give our customers the most accurate delivery dates it is vital you advise the Merchandiser of any movement of delivery dates.
Purchase Order (PO) Cancellation
If Shop Direct finds it necessary to cancel a purchase order with a supplier they will, subject to the reasons for the cancellation and under the terms previously agreed, cover the costs of any materials bought for production of the merchandise.
See COST RECOVERY
Purchase orders cancelled by the supplier will be subject to charges, and these will depend on how much the cancellation of the purchase order impacts on sales. The costs of a cancellation will be subject to negotiation at that time.See also the sections on PRODUCT, PACKAGING & DELIVERY NON-CONFORMANCE, and COSTS RECOVERED
Purchase orders/ contracts take two basic forms:
-
DC (Distribution Centre) UK & Foreign
-
DD (Direct Delivery, also known as DM (Direct From The Manufacturer)
DC (DISTRIBUTION CENTRE) - UK SUPPLIERS: INDIRECT IMPORTS
-
Purchase Order/Contract raised and sent to Supplier
-
Product produced in line with contract dates
-
Delivery by date fixed within the Contract with fixed quantities per colour & sizes (Split/Phased deliveries are raised as one contract with a number of calls)
-
Supplier delivers the goods to our warehouse or Distribution Centre
-
We pay the Supplier
See section on PAYMENTS - VAT SELF BILLING
DC (DISTRIBUTION CENTRE) - FOREIGN SUPPLIERS: DIRECT IMPORTS
-
Purchase Order/Contract raised and sent to our Supplier
-
Product produced in line with contract dates
-
Delivery by date fixed with the Purchase Order/Contract with fixed quantities per colour & sizes (Split/Phased deliveries are raised as one contract with a number of calls)
-
Goods transported by Truck, Sea or Air to UK (See section on Logistics).
-
Goods Shipped or Air-freighted booked into DC by representative of Shop Direct Shipping Department, or our Air Freight agent
-
Supplier presents documents for payment.
See section on PAYMENTS for relevant payment method.
DD (DELIVERY DIRECT TO OUR CUSTOMER FROM THE MANUFACTURER) UK & EUROPEAN SUPPLIERS
-
Purchase Order/Contract is placed with the Supplier
-
Purchase Order/Contract will have the price and the description of what we are buying but will have no fixed quantity
-
Supplier holds goods in stock or manufactures on demand
-
Shop Direct customer places an order
-
SHop Direct transmits the order via the B2B and MTX systems (see DIRECT DESPATCH section)
-
The Supplier delivers direct to the Customer.
-
Shop Direct pays the Supplier (see section on PAYMENTS for relevant payment method)
Product & Delivery Packaging
Almost as important as the product is the product and delivery packaging. The packaging is the first thing that our customer sees.
Packaging must meet an agreed specification and should be robust enough to withstand the rigours of the journey from the supplier, to our warehouse and on to the customer.
Standard Product Packaging Requirements
Product packaging requirements are documented on this Supplier Website and apply to all merchandise supplied to Shop Direct.
Packaging can relate to an individual product box or bag, to correct labelling or to the BDCM (carton) used for delivery of your product into one of our Distribution Centres (DC).
Under the section headed ‘Packaging’ we explain and detail how products must be individually labelled, packaged or hung.
Should information on product packaging not be readily accessible, your first point of contact for packaging advice/queries should be the Packaging Manager or Product Technologist/Engineer.
Delivery Packaging Requirements
The size of the product and whether it is classed as collate or non-collate will determine which distribution centre (DC) will stock your particular product.
Delivery Types:
-
Collate (Multiple Despatch), or
-
Non Collate (Single Despatch item)
Non- collate items (where the delivery carton contains one item only) does not require an additional bulk outer carton for delivery into a DC.
Under the section headed ‘Distribution Centre & HDNL Deliveries’ we detail how your product should be packed & labelled for delivery into our distribution centres (DC).
On receipt of your delivery to our Distribution Centre (DC) should any aspect of your packaging, labelling or delivery fail to meet the required standard/specification a QA representative or DC Manager will contact you detailing the reason for non-conformance.
Deviation from the requirements will result in supplier charges. This may include charges for rectification work carried out on the delivery in order to bring it up to the required standard. Similarly should we experience a higher than average volume of returns for a product from our customers this will also trigger an investigation by QA Auditors to identify the reason for the high level of returns.
Subject to the outcome of any investigation the goods or delivery may be categorised as non-compliant and you, the supplier, will be advised (and goods may be returned to you). Subject to the outcome,
Supplier charges may follow.
Product/Delivery Rectification and Reprocessing
In some instance we will re-package/label in-house or via a third party re-processor, the rectification costs for which will be charged back to the supplier.
We will make every effort to discuss and agree rectification in advance with the supplier, including the amount of rectification work required and an estimate of the costs prior to implementation. However, our main priority remains making sure that the deliveries proceed straight to stock ensuring continuity of service to our customer, so that may not always be possible.
See also DC DELIVERIES (DELIVERIES INTO A SHOP DIRECT DISTRIBUTION CENTRE - REPROCESSING)
Booking & Delivery Into Distribution Centre/s (DCS)
All deliveries should be loaded in a safe manner to prevent damage in transit and enable safe offloading within the Distribution Centres.
Prior to delivery into a Distribution Centre you are required to contact the relevant appointment office and advise them the contents of your proposed delivery.
For all Direct Imports delivered to the UK via Sea Freight or Air Freight, the Shop Direct Shipping Department, or the Air Freight Agent acting on our behalf, will book the delivery into the DC.
Indirect Imports
Indirect Imports must be booked into the DC as follows:
When ringing for a delivery appointment you will be required to specify a number of things -
-
CATALOGUE NUMBER
-
SUPPLIER CODE
-
PURCHASE ORDER/CONTRACT NUMBER
-
PRODUCT COLOUR
-
OVERALL QUANTITY OF ITEMS TO BE DELIVERED
-
LOOSE LOADED OR PALLETISED
-
WEIGHT OF PRODUCT
-
QUANTITY OF OUTER CARTONS (if applicable)
Only where the DC holds a valid Purchase Order/Contract in their system for the goods you are planning to deliver (and you are on the priority/reserve intake list) will an appointment be arranged for you to deliver.
Note: If you are not on the priority/reserve intake list you will be referred back to your merchandiser for further advice/instruction.
Subject to all being in order you will then be allocated the following:
-
DELIVERY DATE
-
TIME OF ARRIVAL (APPOINTMENT TIMES MUST BE STRICTLY ADHERED TO)
-
DELIVERY REFERENCE
Subject to your delivery being on the priority list any updates to your booking can be made up until 24 hours prior to appointment date.
If an appointment cannot be met it is vital that, at your earliest opportunity, you contact the Distribution Centre to make alternative arrangements.
General Delivery Advice
All deliveries to the Distribution Centres must include a clearly printed advice note.
Prior to unloading of a delivery the DC appointment clerk must validate all delivery / advice notes; therefore your driver should hand over the advice note upon arrival.
Any unadvised items included in the delivery can result in part or all of the delivery being refused. Trailers must always be loaded in advice note order, with catalogue number labels facing out, so that the delivery can be checked quickly.
Following these instructions correctly will mean the speedy offloading, check-in & delivery of product and ensure on-time payment for goods received. A successful delivery will always report positively on supplier conformance.
Note: Delivery manuals displayed on the Supplier Website are periodically reviewed and updated without notice.
Direct Despatch Orders
Shop Direct trades with suppliers on a DD basis through the B2B system that is contracted through Kewill MTX (Moving Technology eXchange). The solution provides e-fulfillment, online collaboration and a real time exchange of business critical data and documents such as Orders, ASNs, Manifests, Invoices, Claims, etc.
Suppliers can access the MTX application either through a standard web browser or via direct system-to-system integration.
By bringing suppliers and carriers onto Kewill Trade, we are able to automate and manage critical business processes and gain real-time visibility throughout the order to delivery lifecycle. New suppliers are responsible for setting up their own account and for the maintenance of their account and a Kewill application form is provided in a new supplier pack.
All MTX (the supplier version of B2B) queries must be directed through the Kewill helpline.
As Shop Direct has no direct visibility of stock, all stock is held and managed by the supplier. As the supplier you will be responsible for maintaining an agreed level of “dedicated” stock and for clearing surplus. Shop Direct do not take ownership of surplus on DD lines, but do work with suppliers to trade the offer throughout the season to help reduce the level of stock a supplier might be left with.
As Shop Direct has no visibility of stock, we extend a high level of trust and expect regular communication between merchandising team and a supplier. Supplier performance managers play a large part in ensuring that suppliers are adhering to best practice.
Lead times are negotiated and confirmed with the supplier and the B2B system then holds this information. These can be set at various levels and will cascade down to lower levels.
The system will always take the information from the lowest levels first, high level messages will not cascade down to catalogue numbers where a decision already exists.
Where Suppliers have no access to amend initial delay messages and the merchandising team will ensure that the B2B system holds the correct initial delay.
Initial delays should include the time taken for the supplier to process the order through to despatch and agreed carrier time.
The Supplier Performance Manager (SPM) has responsibility for optimising performance across their DD suppliers. The SPM works with the Supplier to ensure compliance to Service Level Agreements in order to provide the best possible customer service and promote best practise throughout the supply chain and B&M.
Both Strategic Suppliers and poor performing Suppliers can expect regular visits.
DIRECT DELIVERY - UK & EUROPEAN SUPPLIERS
-
Shop Direct places a Purchase order with the Supplier
-
The Purchase order will have the price and the description of what we are buying but will have no fixed quantity
-
The Supplier holds the Goods in stock or produces them on demand
-
Shop Direct Customer places an order
-
Shop Direct transmits the Order via the B2B and MTX system – see DIRECT DESPATCH section
-
The Supplier delivers direct to the Customer.
-
Shop Direct pays the Supplier via relevant payment method – see section on PAYMENTS for relevant payment method
Shipping/Freight
In order to ensure that the cargo and information flow is handled in accordance with our requirements, as well as to everyone’s mutual benefit, we have provided you with a detailed overview of the processes involved.
Note: Suppliers involved with exports to Shop Direct hold the responsibility to ensure that their staff takes the time to read through, understand and comply with these important shipping and documentation instructions
Failure to do so will increase shipping costs and cause serious delay of customs clearance on arrival of merchandise in the UK.
The Shipping Department created, and maintain, a Standard Operating Procedure (SOP) document which you can access on (and download from) the Supplier website. The objective of the SOP is to provide you with a simple guide to the shipping requirements of Shop Direct, in conjunction with our nominated freight forwarder for Seafreight shipments and Uniserve Group for Airfreight shipments.
Shop Direct has special shipping arrangements throughout the Far East/South Asia/South Africa/Middle East. These special arrangements support the containment of import costs, control of cargo consolidation and regulation of overall transit times.
The data provided by our nominated freight forwarder feeds the shipping system that gives visibility of product to Shop Direct Merchandise teams.
The preferred method of booking for Shop Direct is through M*Power Shipper however there is also a manual method of booking. M*Power Shipper Benefits:
-
Allows vendors to submit and confirm bookings and produce the Forwarders cargo receipt (FCR) online, using Purchase Order upload information
-
Eliminates input duplication, improving data quality for both our nominated freight forwarder and Shop Direct
-
Supports online creation of standard format packing lists and commercial invoices avoiding extra data input for vendors.
-
Allows measurement of shipper’s performance, e.g. adherence to booking window
When making a booking using M*Power Shipper you must refer to instructions from our nominated freight forwarder (booking instruction) provided in the SOP.
Important: It is the Supplier’s responsibility to ensure Shop Direct possesses all required import documentation by no later than the arrival date of the vessel/aircraft in the UK. Failure to meet this requirement may result in the cancellation of Purchase orders.
The SOP displayed on the Supplier website is subject to periodic review and update without notice.
Generalised System of Preferences (Quota)
The European Union's Generalised System of Preferences (GSP) grants either duty-free access or a tariff reduction for certain products imported from GSP beneficiary countries.
The EU implements the GSP in ten year cycles. The present cycle covers the years 2006-2015. Council Regulations implement the GSP. Council Regulation (EC) No 980/2005, applying a scheme of generalised tariff preferences, is valid from 1.1.2006 to 31.12.2008 and consists of the following three arrangements:
-
a general arrangement, applicable to all of the beneficiary countries listed in Annex I to the regulation;
-
a special incentive arrangement for sustainable development and good governance (the “GSP+”), accorded to fifteen of the beneficiary countries (published in Commission Decision 2005/924/EC of 21.12.2005) who meet certain criteria.
-
a special arrangement, also known as the “Everything But Arms” initiative (or “EBA”), applicable to the fifty least developed countries.
Please visit this web address - http://export-help.cec.eu.int - to access the Export Helpdesk for Developing Countries, which we believe may assist in providing you, the Supplier, with a better understanding of the rules of GSP.
The Export Helpdesk is an online service, provided by the European Commission, to facilitate market access for developing countries to the European Union. This free and user-friendly service provides relevant information required by developing country exporters interested in supplying the EU market.
Payment Methods
(link to Payment section)
Under the terms agreed any product selected for inclusion in our product offer for a specific season is always based upon its ability to generate sales and profitability.
It should be noted that Shop Direct will immediately disengage from, and report to the relevant authorities, any Supplier found to be breaking any industry rules regarding price fixing/matching.
Suppliers are required to meet “100% On-time” Delivery Performance for all deliveries. Purchase Orders/Contracts issued by the Buying teams specify both quantities and delivery date. Failure to meet Shop Direct requirements may negatively affect future ordering.
See also COST RECOVERY / CHARGES
Shop Direct monitors Supplier delivery performance and communicate this information to trading areas and the Distribution Centre network via a Delivery Non Conformance report. The reports tracks compliance to shipping dates, quantities released and the condition/labelling of transit packaging.
Supplier Responsiveness
Responsiveness includes, but is not limited to:
-
timely receipt of all requests for quotes,
-
samples,
-
timeliness in response to inquiries,
-
complying with packaging requirements, and
-
accuracy of invoices
Our accuracy goal is 100%.
Supplier Appraisals
Twice yearly our Product teams appraise their entire supply base against a series of set criteria. It gives us the opportunity to monitor overall supplier performance on a season by season basis and also to look at specific areas that may require development, e.g. QA Performance, Communication, etc.
Appraisal categories:
-
Product Development
-
Costings
-
Contract Fulfilment
-
Trading Flexibility
-
Quality Management
-
Trading Relationship
Assessing performance should be a two way process.
Shop Direct would like to encourage all suppliers to provide assessment of our performance as a customer. This information would then become the basis for discussions on improving our business relationship.
Non-conformance may be defined as a condition of product, documents or service in which any characteristics do not conform to specifications required. Shop Direct will charge the Supplier for any costs resulting from non-conformance and either deduct this from their account (UK & EU Self Billing suppliers) or issue an invoice (foreign suppliers).
Non-conformance occurs for the following reasons:
-
Product, Documentary, Delivery or Packaging failure
-
Delays to shipment
-
Incorrect or unapproved product delivered (product not ordered, wrong colour, wrong size, too many delivered, etc.)
-
Delivery Performance (e.g. mixed items on container/trailer product sorting required)
-
Delivery not booked
-
Carrier failure
Shop Direct will pass on to the vendor all costs incurred as a result of serious non-compliance/non-conformance. Should the serious non-compliance or non-conformance reported be of a severity that customers/health could be affected, i.e. breach to broken needle policy, you, the Supplier, will be subject to additional charges for loss of profit.
Costs Recovery
Wherever we identify cases of non-conformance we will take important key steps to correct matters. With your cooperation, we will:
-
Identify the problem
-
Investigate to identify the root cause
-
Come up with the solution
-
Implement the solution
-
Document the solution
-
Communicate the solution and corrective action required to the Supplier in some instance this will be via the carrier.
-
Raise an Invoice for charges incurred
-
Use of nonmintaed carrier will exempt the supplier from carrier non-conformance charges as SDG manage this relationship (contact Keith Joughin, for more details regarding UK/European Nominated Carrier Schemes keith.joughin@shopdirect.com
It is important to determine quickly if any lapse might be temporary or due to some fundamental flaw in Supplier procedures. We focus on correcting problems and ensuring future prevention. Any corrective actions we recommend will be evaluated to ensure the effectiveness of the solution. We believe that prevention of future problems is generally cheaper than fixing them after they occur.
If a vendor believes that they have been unfairly charged for reported non-compliances, they have the right to dispute the charges by contacting, in writing, the Claims Manager. Shop Direct must receive letters of dispute within 14 days of the claims date.
