VENDOR STANDARDS February 2021 macy’s backstage Vendor Standards Contents macy’s backstage Vendor Standards Overview .............................................................................................................3 macy’s backstage Vendor Standards Summary of Changes ...........................................................................................4 Macysnet.com ................................................................................................................................................................5 EDI Standards .................................................................................................................................................................6 Product Quality...............................................................................................................................................................6 Merchandise Preparation and Packing Standards .........................................................................................................6 Packing Standards ..........................................................................................................................................................8 Shipping Standards .........................................................................................................................................................9 Accounts Payable Standards ..........................................................................................................................................9 General Accounts Payable ..........................................................................................................................................9 Invoicing .....................................................................................................................................................................9 Vendor Profile ......................................................................................................................................................... 10 macy’s backstage General Policies and Regulatory Requirements ............................................................................. 11 Child Labor, Forced Labor, Slavery and Human Trafficking/Unsafe Working Conditions ....................................... 11 Fur Products ............................................................................................................................................................ 11 Conflict of Interest, Gift Giving and Acceptance ..................................................................................................... 12 Prize Promotions ..................................................................................................................................................... 13 Vendor Liability Insurance ....................................................................................................................................... 13 California Proposition 65 Requirements ................................................................................................................. 13 Toxics in Packaging Laws Bulletin ............................................................................................................................ 13 Appendix A – Hanger Recommendations.................................................................................................................... 15 ALL FOB’s except Infant’s/Children’s through Girls 6X/Boys 7 ............................................................................... 15 Infant’s/Children’s through Girls 6X/Boys 7 (White plastic): .................................................................................. 16 Appendix B – Shipping Labels ...................................................................................................................................... 17 Sample Label: .......................................................................................................................................................... 18 Appendix C – Bulk Location Number ........................................................................................................................... 19 Page 2 of 19 macy’s backstage Vendor Standards macy’s backstage Vendor Standards Overview Macy’s, Inc. has established an “Off-Price” entity that has created additional opportunities to expand the Macy’s brand to our value-conscious customers. A specific subsidiary, Macy’s Backstage, Inc. has been established within Macy’s Retail Holdings. As this business model is very different from our existing Omni-channel entities (Macy’s and Bloomingdale’s department stores and e-commerce), many systems and processes also differ. Accordingly, this document supersedes Macy’s Vendor Standards and applies only to macy’s backstage purchases. These standards are designed to quickly and efficiently move merchandise to the selling floor and facilitate invoice payment. Therefore, they are critical to our mutual success. In addition, a separate Routing Guide and amendments to the standard Master Purchasing Agreement document have been created. All macy’s backstage documentation, except for the integrated Master Purchasing Agreement, is published on macysnet in the macy’s backstage section. The password to all documents may be obtained by contacting the appropriate macy’s backstage merchant. Vendor representatives must register and frequently review macysnet for updated information which is critical in coordination of our respective operations. Macy’s is constantly striving to improve our operations and increase efficiencies. When changes affecting our vendors are implemented, advance notifications are communicated to all registered macysnet users. All instructions and materials, including the provisions of these macy’s backstage Vendor Standards, are subject to change, usually upon notice from Macy’s. Subject to such future changes, these macy’s backstage Vendor Standards generally apply to every macy’s backstage family of business (FOB). The information in this document has been organized to parallel the life cycle of merchandise preparation and movement. It is highly recommended that macy’s backstage vendors review this document in its entirety. Please ensure that all personnel in your organization familiarize themselves with the portions of these macy’s backstage Vendor Standards applicable to their duties. Page 3 of 19 macy’s backstage Vendor Standards macy’s backstage Vendor Standards Summary of Changes Date 2/26/2021 9/29/2020 Section and page General Accounts Payable, pg. 9 Multiple 9/29/2020 Vendor Liability Insurance, pg. 13 11/14/2019 Accounts Payable/Invoicing Standards 6/5/2019 Appendix C, pg. 19 11/15/2017 Vendor Profile, pg. 10 6/2/2017 Invoicing Procedures, pg. 9 5/24/2016 5/20/2016 Appendix B Shipping Label, pp. 1718 Appendix C Store/Pool Stock Location Numbers and Names, pg. 18 Appendix B Shipping Label, pg. 17 Appendix C Store/Pool Stock Location Numbers and Names, pg. 18 4/26/2016 Accounts Payable/Invoicing, pg. 9 11/18/2015 Macysnet.com, pg. 5 11/18/2015 Accounts Payable Standards, pg. 9 11/18/2015 Appendix B Shipping Label, pg. 17 11/5/2015 Appendix B Shipping Label, pg. 16 10/21/2015 Merchandise Preparation and Packing Standards, pg. 7 Appendix B Shipping Label, pg. 16 6/16/2015 6/30/2015 Vendor Standards Overview, pg. 3 Shipping Standards, pg. 8 Vendor Liability Insurance, pg. 12 Description of change Updates to phone numbers Master Purchasing Agreement replaces Purchase Order Terms and Conditions Minimum aggregate of $5 million in coverage. Clarification on checks and invoicing procedures. Bulk location #77 to be used on all non-store allocated purchase orders. Update to Master File address. Vendors will not be reimbursed for freight. Freight therefore, should not be included on merchandise invoices. MBKS must precede department description on shipping labels Added store location 12 Effective May 23, 2016, merchandise must be shipped to the appropriate Distribution Center, based on the department number on the purchase order. See the Department to DC Listing to determine DC routing. Change of address for invoices All vendor and factor representatives must register and utilize macysnet for Accounts Payable functions and email notification on operational changes and announcements Utilization of macysnet for account management, including status of invoices, account, check and transaction detail and dispute resolution “Ship To” on carton labels must include Suite 100 in address – new location for Suite 100 “Ship To” on carton labels must include “Suite 100” in address Packing slips to merchants no longer required – removed from document “Ship To” must indicate exactly on first line “Backstage c/o Macy’s” Include link to macy’s backstage Routing Guide Language updates on vendor liability requirements Page 4 of 19 macy’s backstage Vendor Standards Macysnet.com All communications regarding these macy’s backstage Vendor Standards are communicated to registered macysnet users as a matter of course. macy’s backstage strongly recommends that companies in the following capacities register with macysnet because, among other benefits, registered users also may view their change history and updates. Company Type Macy’s Resale Vendor Description Sellers of merchandise to Macy’s for resale (“Resale Vendors”) Information available (*Registration Required) • • • • • Accounts Receivable Factor Factor for vendors • • • • Macy’s Backstage Vendor Standards Macy’s Backstage Routing Guide Email notifications on operational changes and announcements Accounts Payable Information e.g. check detail, status of an invoice Payment/Chargeback Dispute Resolution Macy’s Backstage Vendor Standards Email notifications on operational changes and announcements Accounts Payable Information e.g. check detail, status of an invoice Payment/Chargeback Dispute Resolution Click here for instructions on how to register for macysnet. The following elements are generally required to register, with certain requirements varying by type of registering company and user role. 1. Vendor Account Number (required for Macy’s Resale Vendors, Accounts Receivable Factors and Public Warehouses): 12 digit number assigned and authorized by Macy’s. New vendors receive this information in written format upon the completion of the merchant initiated set up. Factors and Public Warehouses must obtain this account number directly from each of their vendors. 2. Email Address. Page 5 of 19 macy’s backstage Vendor Standards 3. Web Browser: The macysnet website is currently optimized for Microsoft Internet Explorer versions 6 through 11. If you are using IE9, IE10 or IE11, please verify that the “Compatibility View” option is enabled to ensure optimal website performance. For instructions on how to enable Compatibility View, please visit the following website: http://support.microsoft.com/kb/2536204 . Other browsers, such as Google Chrome, Mozilla Firefox and Apple Safari, are not supported by the macysnet website at this time. For questions regarding macysnet or browser compatibility, please send an e-mail to helpdesk@macysnet.com or call 513-782-1499. EDI Standards 1. At the present time, EDI will not be generally required except for certain FOBs. Each vendor must check with applicable macy’s backstage merchant as to their EDI requirements. As to FOBs to which EDI does apply, the following is required. 2. If macy’s backstage provides an EDI 850 purchase order, vendors are expected to use the full complement of EDI documents as described in the EDI General Standards and Documents in the Macy’s Vendor Standards, including the EDI 856 Advanced Ship Notice and EDI 810 Invoice. Mapping Guides are available on macysnet. 3. If an EDI 856 Advanced Ship Notice is utilized, the corresponding GS1 128 labels must be placed on cartons. GS1 128 labels must follow all standards as outlined in the Macy’s Vendor Standards. 4. macy’s backstage payment transactions will be processed on a common check with all other Macy’s, Inc. retail entities. If a vendor conducts business with any additional Macy’s, Inc. entities, utilization of the EDI 820 Remittance Advice is required. Product Quality 1. It is the vendor’s responsibility to know, understand and comply with all federal, state and local laws. All merchandise shipped must be in compliance with all U.S. regulatory and, where applicable, state and local regulatory standards. 2. macy’s backstage reserves the right to request documentation to validate compliance with standards. 3. Merchandise shipped in an unsaleable condition may be returned at the vendor’s expense, including any applicable handling and/or freight expenses. Unsaleable conditions include but are not limited to: a. Crushed, dented or collapsed product b. Product that is soiled, stained, etc. c. Markdown tags (or similar) on merchandise d. Swollen or rusty cans e. Broken glass f. Any merchandise that was not included on the purchase order, including overshipments Merchandise Preparation and Packing Standards 1. Ship all units by location and style as outlined on the purchase order. Significant variances to the quantities ordered (over or undership) and/or substitutions are subject to expense offsets. Page 6 of 19 macy’s backstage Vendor Standards 2. Vendor branded hang tags, etc. must remain on the merchandise however, tickets with references to any other retailer or price must be removed before shipment. 3. macy’s backstage Merchant Office will provide detailed instructions on ticketing. 4. Merchandise displayed in packaging where the actual product is not visible must provide a photograph or line drawing and complete description on the outside of the package. For example, a boxed picture frame would require a photo image of the frame, “8 X 10” and “black wood” on the outside of the box. 5. Sized, non-garment products such as comforters, pillows and sheets must clearly display the size on the product. Size indicators must be visible on at least 2 adjacent sides of the package. 6. Other important information such as “fits mattresses up to 14 inches thick” also must be prominently displayed. 7. Unboxed shoes such as beachwear and slippers must be attached via loop. 8. Swimwear must have required liners. 9. Only use recyclable or compostable packing materials. Do not use Styrofoam or other non-sustainable packing materials. 10. Pins, including safety pins, are ONLY allowed on men’s folded dress and folded woven sports shirts. To reduce the safety liabilities, shirt manufacturers are encouraged to consider pin alternatives. Do not use tiebacks or clips of any type. 11. Do not use loose foam coverings or inserts on hangers. 12. Minimize use of tissue or other materials inside the garment. 13. Use plastic, tissue or other coverings on buttons and embellishments only as necessary to protect the garment. Protective coverings must be able to be removed without the use of sharp objects. 14. Packing materials used to manage moisture e.g. silicone gel packets/sheets must be EPA approved. 15. Open stock housewares must be secured as the set selling unit e.g. zip tie pot and lid together. 16. Recommendations for wrinkle prevention: a. Pack merchandise flat in cartons with the front side facing up. If merchandise must be folded, use only one fold at the bottom of the garment. b. Close all buttons, zippers, hooks, etc. c. Bundle hangers with string or rubber bands only if necessary to prevent wrinkling but do not use metal or tape. d. Alternate merchandise position in carton every 6 garments to eliminate excess bulk at one end of the carton, maximize capacity of the cube and prevent shifting. e. Place cardboard or tissue between alternating positions only if necessary to reduce shifting of contents. f. Delicate items must be placed on top to prevent crushing. g. Do not fill cartons above or below recommended capacity. Overstuffed or underfilled cartons may break, resulting in lost or damaged merchandise. h. Attach 2 piece garments together only by locking the coordinating loop of bottom hanger through the loop of the top hanger. Do not attach bottom and top hangers together by binding together at the hanger hook. 17. Hangers and sizers: a. The macy’s backstage Merchant Office will communicate if merchandise must be shipped on hangers and/or with size strips. Page 7 of 19 macy’s backstage Vendor Standards b. Black plastic GS1 quality hangers must be used for all garments except certain children’s sizes. See Appendix A for details. c. Use the hanger size appropriate for the garment. d. Sizers should not be used. e. See Appendix A for recommendations on hanger style numbers and descriptions. 18. Multi-Piece Tickets a. Multi-piece garments include any merchandise where more than one piece is included in the selling unit. b. For multi-piece garments, the top or primary garment must be marked with vendor tickets. Every other piece must include a ticket clearly indicating how many pieces are in the set e.g. “Multi-piece set 2 of 3” and other identifying information e.g. style, color and size. This standard applies to apparel only and does not apply to accessories such as a headband on a girl’s dress. c. Accessories such as hats, headbands, gloves, belts and extra items such as buttons and beads must be swift attached, i.e. pins may never be used. Packing Standards 1. If macy’s backstage provides an EDI 850 purchase order, vendors must use the full complement of Macy’s Vendor Standards, including GS1 128 labels. 2. Do not pack more than one purchase order in a carton. 3. Cartons must be packed by location, style, size and color with consistent counts per carton unless prepacks are planned with the merchant. Details must be included on the carton packing slip. 4. Shipments not utilizing EDI 856 Advanced Ship Notice and GS1 128 label must have a shipment information label securely affixed to each carton. See Appendix B for required fields and sample label. 5. A packing slip must be attached to EACH CARTON with the detail of the contents of that SPECIFIC CARTON. Packing slips must be placed in a clear, securely sealed envelope on the outside of each carton next to the shipping label. 6. Merchandise shipped on hangers must be flat packed in appropriate size cartons. Do not use “wardrobe” cartons with a hang bar. 7. All cartons must be securely sealed with security/reinforced tape. Openings on all sides of cartons, including edges must be sealed using the “H” method. 8. Carton strength must be a minimum of 32 edge test crush (ETC) = 150 mullen to prevent crushing during transit. Large or heavy cartons may require a higher ETC. 9. The appropriate sized carton must be used, i.e., avoid overpacking or underpacking cartons. Ideally, merchandise must be packed 1/4” below the top and 1/8” from the sides of the carton. Overstuffed and underfilled cartons may break, resulting in unconveyable cartons and/or lost or damaged merchandise. 10. Do not use tissue or paper as filler to fill under packed cartons. If necessary, recyclable/compostable cardboard or chipboard is preferred to protect merchandise. Use tissue only when necessary to protect packaging from sticking or damage during transit. 11. macy’s backstage supports environmentally friendly packing materials and therefore, requests that only sustainable materials be used. 12. Fragile merchandise must be packed to prevent breakage during normal shipping and handling. Page 8 of 19 macy’s backstage Vendor Standards Shipping Standards 1. All vendors must follow the macy’s backstage Routing Guide. 2. Direct to store shipments are only authorized on an exception basis. Authorization numbers must be obtained by the Macy’s Transportation Office prior to shipping. 3. Note that, samples provided to Macy’s merchants with a cost and/or retail value must be sent via a Macy’s distribution center. Samples with no cost and/or retail value may be sent freight pre-paid directly to a macy’s backstage merchant office. 4. Shipments must be fully prepared and available to ship by the agreed upon pick up date/time. Vendors and/or their authorized shippers must count and load all cartons. Drivers are not authorized to load, assist or count cartons. 5. Do not use bands, straps, staples or any other material on the exterior of the carton. Such materials may damage equipment. 6. Shrink wrapping or plastic covering is not permitted on the exterior of the carton. Do not shrink wrap multiple cartons together as one “shippable carton”. 7. Every effort must be made to efficiently utilize carton and trailer cube space, with the goals of minimizing transportation, processing expenses, and enhancing sustainability. Accounts Payable Standards General Accounts Payable 1. Vendors are expected to manage account activities by utilizing secured macysnet applications. To register for macysnet click here. 2. Research activities available to registered macysnet users are: Status of an invoice by Invoice Number or Purchase Order Number, Trial Balance, Check Summary and Detail, Purchase Order Information and Chargeback Detail (detail of account deductions). 3. Inquiries regarding specific payment questions and disputes are expected to be submitted via AP Forms on macysnet. 4. For assistance with macysnet functionality, please contact macysbackstageap@macys.com or call 513-5797200 or 513-579-3086. 5. macy’s backstage payment transactions will be processed on a common check with all other Macy’s, Inc. retail entities. If a vendor conducts business with any additional Macy’s, Inc. entities, utilization of the EDI 820 Remittance Advice is required. Checks are issued weekly on Wednesdays for all transactions with due dates up to the Tuesday before the check run. Net balances for all transactions due must be positive for a check to be issued. Invoicing 1. If macy’s backstage provides an EDI 850 purchase order, all vendors are expected to transmit the corresponding EDI 810 Invoice. Page 9 of 19 macy’s backstage Vendor Standards 2. For purchase orders not transmitted via EDI, non-EDI invoices must be issued by purchase order, BOL and location as it appears on the purchase order. Do not combine multiple purchase orders and/or multiple shipments for the same purchase order on the same invoice. 3. Invoices for purchase orders that are not transmitted via EDI may be submitted by utilizing any one of the following: a. E-mail electronic copies to macysbackstageap@macys.com . I. Invoices must be attached individually as a PDF file. I.e. multiple invoices cannot be in the same PDF document. II. Multiple attachments with the same email can be submitted. b. Mail to Macy’s Accounts Payable, Attention: macy’s backstage Invoice Processing, P. O. Box 8251, Mason, OH 45040. 4. Invoices must contain the following information: a. Sold to: macy’s backstage b. Pay to: Vendor name and payment address c. Invoice number: Maximum of 10 digits, numeric characters only d. Purchase order number: macy’s backstage purchase order number e. “Store” location: As it appears on the macy’s backstage purchase order f. Invoice date: Date that the invoice was issued g. Date of shipment: Date that the merchandise was shipped to macy’s backstage h. Style level detail: I. Style Number II. PID number III. Quantity shipped in units/eaches, i.e. not cases IV. Net unit cost, i.e. net of any discount i. Invoice terms: e.g., 0%, 60 days (based on receipt of goods) j. Invoice total: Sum of quantities by style x unit costs k. Bill of Lading number 5. Macy’s Backstage does not reimburse freight charges incurred by the vendor, e.g. prepaid or vendor’s carrier. Freight will be deleted from all merchandise invoices that include freight charges, i.e. invoices will be paid net of freight. Vendor Profile 1. Changes in an active vendor’s addresses, shipping information, shipping locations or any information related to a merger, acquisition, bankruptcy filing, company closings or licensing agreements must be communicated to vendorchanges@macysnet.com a minimum of 30 days prior to the effective date. 2. Follow up information must be sent on company letterhead and signed by an authorized senior officer to Macy’s Accounts Payable, Attn: Vendor Masterfile Control Office, P.O. Box 8251, Mason, OH 45040. 3. The following information must be included. If information is changing, the prior and updated information must be provided: a. Parent company name b. Company name c. DUNS or Macy’s account number d. Macy’s entities affected Page 10 of 19 e. f. g. h. macy’s backstage Vendor Standards Company address Description of change Effective date of change Mergers, splits and acquisitions also require copies of all supporting legal documents, including validation from GS1 for purchased company’s GS1 company prefixes. macy’s backstage General Policies and Regulatory Requirements Child Labor, Forced Labor, Slavery and Human Trafficking/Unsafe Working Conditions Macy’s, Inc. has a strict policy prohibiting the use of child or forced labor in the manufacturing of the merchandise that it purchases, which policy is designed to help eradicate slavery and human trafficking in the overall supply chain, regardless of geographic location. It is set forth clearly in Macy’s Vendor/Supplier Code of Conduct which is posted on macysnet. Macy’s, Inc. requires, as a condition of doing business, that all vendors comply with the Code, as well as with the Fair Labor Standards Act, the Occupational Safety and Health Act, and other applicable laws for merchandise produced in the United States. Macy’s, Inc. also requires strict compliance with the laws of the foreign country where the merchandise is produced, pertaining to these subjects, when the merchandise is manufactured outside the United States. All vendors are required to sign and return a letter indicating that they have received and understand this Macy’s, Inc. policy and that they are in compliance. In addition to being posted on macysnet, every vendor will receive the Code and letter, which requires that the vendor acknowledge and return a copy of the letter. Failure to return a signed acknowledgment will result in the suspension of macy’s backstage business with your company in accordance with the provisions stated therein. Fur Products All products containing real or faux fur must comply with all applicable U.S. laws, including but not limited to the U.S. Fur Products Labeling Act and the New York State "real and faux" fur laws. Affected products include apparel, footwear, handbags, hats, gloves, bedding, throws, decorative pillows, and any other products incorporating real or faux fur. Non-compliant products may be relabeled, RTV'd at the vendor's expense’s, or subject to expense offset fees at Macy’s discretion. Notes on Real Fur: The term "fur" means animal hair, fleece, or fur fibers still attached to the animal skin. Therefore, real fur includes shearling and calf hair. “Ponyhair” is a marketing term that may NOT be used to describe calf hair, haircalf, i.e, fur from cattle. Fur product labels must include: the animal name; country of origin of the fur; the term “real fur”; other textile or wool fiber content disclosures; indication if the fur is natural, dyed, or otherwise treated; country of origin of the finished product; and other applicable labeling requirements. “Asiatic Raccoon” is NOT “Raccoon”: “Raccoon” is the name for the North American species Procyon lotor, which is native to the United States and Canada. “Asiatic Raccoon” is the name for the species Nyctereutes procyonoidos, which is native to Asia but is also farmed in countries such as Finland. The U.S. Federal Trade Commission ("FTC") only recognizes the term "Asiatic Raccoon" for fur products using Nyctereutes procyonoidos sold in the United States. DO NOT MIX UP THESE TWO SPECIES. Other marketing terms acceptable in other countries (such as “Tanuki” in Japan or “FinnRaccoon” in the EU) are NOT acceptable for sale in the United States. If the product contains fur from Nyctereutes procyonoidos, it must be labeled as “Asiatic Raccoon,” or we must reject that product. Page 11 of 19 macy’s backstage Vendor Standards New York State “Real or Faux” Fur Law: Products containing REAL FUR must be stamped, tagged, or labeled with the words “Real Fur” to comply with the N.Y. GBS. LAW § 399-aaa: “Selling and manufacturing of fur-bearing articles of clothing.” Products containing FAUX FUR must be stamped, tagged, or labeled with the words “Faux Fur” to comply with the N.Y. GBS. LAW § 399-aaa. Legal References: VENDORS MUST CONSULT THEIR OWN COUNSEL FOR CURRENT LEGAL ADVICE REGARDING THEIR PRODUCTS. The following list of fur laws is not exhaustive but is provided as a courtesy. Federal • Fur Products Labeling Act http://www.ftc.gov/node/119458 • FTC’s “In-FUR-Mation Alert: How to Comply with the Fur Products Labeling Act” http://www.business.ftc.gov/documents/alt006-fur-mation-alert-how-comply-fur-products-labeling-act • FTC Information on Clothing & Textiles http://www.business.ftc.gov/selected-industries/clothing-andtextiles • The Dog and Cat Fur Protection Act, 19 U.S.C. Section 1303, prohibits the import, export, and sale of domestic dog and cat fur products in the U.S. • The Endangered Species Act, 16 USC Sections 1531-1541 protects endangered and threatened species and commits the U.S. to protecting wildlife under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) • The LACEY Act, 16 USC Sections 3371-3378 prohibits wildlife trade in animals that have been illegally taken, possessed, transported or sold. State: As of 2013, some states have additional fur labeling requirements. • • • Delaware (11 Del.C. Sec. 1325A (2008)) and New Jersey (N.J. Stat. Ann. Sec. 56:14-1 (2009)) require clothing with real animal fur be labeled as such. Wisconsin has a real fur label requirement in garments but exempts garments less than $50. (WSA 100.35. Furs to be labeled) Massachusetts (M.G.L.A. 94 § 277A) and New York, (NY GEN BUS § 399-aaa) require that Real fur and Faux fur on clothing be labeled with those terms. Link to the NYS law is here http://codes.lp.findlaw.com/nycode/GBS/26/399-aaa Conflict of Interest, Gift Giving and Acceptance macy’s backstage associates are not permitted to request or accept from macy’s backstage vendors (or prospective vendors), and macy’s backstage vendors (or prospective vendors) are not to offer or provide to macy’s backstage associates, gifts, gift certificates, discounts, gratuities or any other item of value (including services) of any nature, other than that which is normal and casual within the framework of the associate’s business activities. Any deviation from this policy could result in the termination of both the associate’s employment with Macy’s, Inc. and the vendor’s (or prospective vendor’s) relationship (or prospective relationship) with Macy’s, Inc. Any questions on the policy must be referred to Macy’s General Counsel. Page 12 of 19 macy’s backstage Vendor Standards Prize Promotions Although macy’s backstage participates in prize promotions (i.e., sweepstakes and contests) on a regular basis, all such events require the specific, prior written approval of special events management. It is the responsibility of the vendor to confirm with the appropriate macy’s backstage merchant, as applicable, that all required approvals have been obtained in writing before proceeding with any prize promotion in which macy’s backstage is being asked to participate. Vendor Liability Insurance Every vendor shall obtain and maintain, at its sole cost and expense, comprehensive general liability insurance coverage in an amount appropriate to vendor’s business and operations, which shall not be less than $1 million per occurrence for bodily injury and property damage with not less than a minimum aggregate of $5 million in coverage. Such insurance shall provide coverage with respect to all customary liability, including product liability and liability assumed under a shared contract. The latter shall specifically include coverage of vendor’s indemnification obligations to purchaser, which are specified in Section 13 of the Master Purchasing Agreement. Every vendor agrees that such insurance shall be provided pursuant to policies that specify that said vendor insurance is primary, names purchaser and its affiliated companies as additional insurers and that such coverage may be neither terminated nor reduced below the above limits without 30 days prior notice to purchaser. By doing business with us, each vendor agrees that it will provide, upon our request, certificates evidencing vendor’s compliance with the foregoing requirements. Documentation must be addressed to Macy’s Corporate Services, 7 West 7th Street, Cincinnati, OH 45202, Attn: Liability Insurance. California Proposition 65 Requirements Macy’s, Inc. regards our vendors and suppliers as our partners in ensuring that all macy’s backstage merchandise is safe and will not do harm to our customers. Pursuant to our macy’s backstage Vendor Standards all macy’s backstage vendors are required to comply with all applicable laws and regulations, including laws and regulations that are intended to ensure that the merchandise offered for sale by macy’s backstage is safe. The requirements imposed by California’s Prop 65 are discussed at greater length in Macy’s Merchandising Group suppliers information but all vendors are advised to familiarize themselves with this and similar laws and to comply with all such laws and regulations. Click here for Lead Requirements for Jewelry. Click here for Lead Requirements for Fashion Accessories. Toxics in Packaging Laws Bulletin This bulletin alerts you to important information regarding U.S. legislation that limits the amounts of cadmium, lead, mercury and hexavalent chromium in product packaging. The following summaries and links will provide you with background and resources to learn more about the Toxics in Packaging Laws. Click here for the general information link regarding toxics in packaging. TOXICS IN PACKAGING LAWS: As of 2009, nineteen U.S. states have Toxics in Packaging laws that prohibit the sale or distribution of packaging containing more than 100 parts per million (ppm) by weight (0.01%) in total of the following heavy metals: cadmium, lead, mercury and hexavalent chromium. No intentional introduction of any amount of these metals is allowed. The laws seek to limit the amount of heavy metals entering landfills, waste incinerators, recycling streams and ultimately, our environment. See the link below for the Model Legislation upon which many of the state laws are based: http://toxicsinpackaging.org/model-legislation/model/. Page 13 of 19 macy’s backstage Vendor Standards WHAT IS COVERED? The law applies to “packaging” and “packaging components”. The law defines “package” as a container providing means of marketing, protection or handling of a product and shall include a unit package, an intermediate package and a shipping container. “Package” also includes such unsealed receptacles as carrying cases, crates, cups, pails, rigid foil and other trays, wrappers and wrapping files, bags and tubs. “Packaging component” means any part such as, but not limited to, any interior or exterior blocking, bracing, cushioning, weatherproofing, exterior strapping, coatings, closures, inks and labels. Basically, any packaging you use with your product is covered by these laws. WHO IS RESPONSIBLE? • Manufacturers of packaging and packaging components • Suppliers of packaging and packaging components • Product manufacturers or distributors who use packaging. This applies to all suppliers who sell consumer products in the United States, including our vendors TOXICS IN PACKAGING CLEARINGHOUSE (TPCH): TPCH was formed to assist its Member States in the administration, interpretation and enforcement of the States’ Toxics in Packaging Laws. TPCH has initiated research, educational and outreach programs regarding the laws. ENFORCEMENT: Enforcement of the State Toxics in Packaging Laws is at the discretion of each state. The California Environmental Protection Agency’s Department of Toxic Substances Control (DTSC) investigated a retailer’s shopping bags that contained heavy metals in violation of the law. The DTSC obtained consent agreement and a $165,000 penalty to settle this matter. See details at the Achievements & Recognition page at this link: http://toxicsinpackaging.org/ Macy’s, Inc. is providing the information in this bulletin for the general information of its vendors. It does not replace any applicable legal or regulatory requirements and is provided “as is”. Macy’s, Inc. will not be liable for any indirect, special, punitive, consequential or other damages (including without limitation lost profits) of any kind in connection with this client bulletin. MACY’S, INC. DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OR MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, IN CONNECTION WITH THIS CLIENT BULLETIN. SUPPLIERS AND VENDORS SHOULD CONTACT THEIR OWN LEGAL COUNSEL FOR ADVICE REGARDING COMPLIANCE WITH THESE LAWS. Page 14 of 19 macy’s backstage Vendor Standards Appendix A – Hanger Recommendations NOTE: This list is intended to be a general guide and illustrations are not to scale. Hanger sizes must be appropriate for garment. ALL FOB’s except Infant’s/Children’s through Girls 6X/Boys 7 : Merchandise Type GS1 Hanger Description GS1 Style Number Appropriate hanger size must be based on garment ALL FOB’s Shirts, blouses, dresses, robes, sleepwear, women’s jackets NOTE: Heavy tops such as heavy robes and streetwear must use jacket hanger. ALL FOB’s – Optional Knitwear, sweaters, robes Heavy tops such as streetwear, women’s jackets Women’s, junior’s and misses’ suits ALL FOB’s – except leather Coats, jackets ALL FOB’s Leather coats, leather jackets ALL FOB’s Pants/slacks, shorts, skirts/skorts, men’s swimwear 19” Top 17” Top 15” Top 12” Top 10” Top 479 484 485 498 497 19” Top-Knit, Non-slip shoulders 17” Top-Knit, Non-slip shoulders 15” Top-Knit, Non-slip shoulders 19” Outerwear - flat 17” Outerwear - flat 15” Outerwear - flat 17” Suit 579 584 585 3319 3328 3315 494 19” Outerwear - flat 17” Outerwear - flat 15” Outerwear - flat 3320 3329 3316 19” “U” section 17” “U” section 15” “U” section 3969 3937 3945 14” Pinch bottom 12” Pinch bottom 10” Pinch bottom 8” Pinch bottom 6014 6012 6010 6008 Optional crease free pad: 14” Soft pinch bottom 12” Soft pinch bottom 10” Soft pinch bottom 8” Soft pinch bottom 6214 6212 6210 6208 Page 15 of 19 macy’s backstage Vendor Standards ALL FOB’s Heavy bottoms such as streetwear Men’s and young men’s suits, men’s and young men’s sportcoats Swimwear Intimate apparel (bras, panties, slips) – clear, no logos Women’s designers 14” Long pinch bottom 12” Long pinch bottom 10” Long pinch bottom 8” Long pinch bottom Use wishbone style wooden hanger or black plastic hanger per current agreement. Use pant bar as needed. 14” Swimwear 12” Swimwear 10” Swimwear Optional soft pad: 14” Swimwear soft pad 12” Swimwear soft pad 10” Swimwear soft pad 11” Intimate – top 10” Intimate – top Wrap - bottom Black velvet Infant’s/Children’s through Girls 6X/Boys 7 (White plastic): Merchandise Type GS1 Hanger Description Separates - tops: shirts, blouses, dresses, robes, sleepwear, jackets Separates – bottoms: pants/slacks, shorts, skirts/skorts Sets – use white plastic loop hanger in conjunction with top hanger or frame with color sizer. No logos. Appropriate hanger size must be based on garment 17” Top 15” Top 12” Top 10” Top 10” Pinch bottom 8” Pinch bottom Plastic loop: 12”x4” Drop Pinch bottom coordinate 10”x4” Drop Pinch bottom coordinate 8”x4” Drop Pinch bottom coordinate Frame: 12”x10” Frame 10”x8.5” Frame 7014 7012 7010 7008 8014 8012 8010 8214 8212 8210 GS11 GS19 CW87 GS1 Style Number 467 472 496 495 6110 6108 9412 9410 9408 959 951 Page 16 of 19 macy’s backstage Vendor Standards Appendix B – Shipping Labels ZONE DESCRIPTION A Ship from Address Company Name is optional. B Ship to Name and Address (Distribution Center) See Department to DC Listing to determine Distribution Center Routing Backstage c/o Macy’s Distribution Center DC Street Address –Suite # DC City, State and Zip Code C Carrier Name PRO Number BOL Number D macy’s backstage Purchase Order Number macy’s backstage Department Number and Department Description. All Department Descriptions must begin with MBKS. E Store/Pool Stock Number and Name. Most Macy’s Backstage Purchase Orders are allocated to the BULK location. For purchase orders allocated to specific store locations, contact the EDI Department at 513-782-1222 for specific store listings. Unless specified otherwise in the Macy’s Backstage Purchase Order, use #077, BULK. F Carton Number and Carton Count e.g. 1 of 25, 2 of 25, etc. Page 17 of 19 macy’s backstage Vendor Standards Sample Label: ZONE A ZONE C ZONE D ZONE E ZONE F Ship From: Vendor A 123 Elm St. Anyplace, USA 11111 Ship To: Backstage c/o Macy’s Distribution Center DC Address – Suite # DC City, State and Zip ZONE B Carrier USA PRO #: 1234567 BOL #: 12345678900000000 PO#: 1234567 DEPT: 803 – MBKS DRESSES For ST # 077 BULK CARTON # 1of 25 Page 18 of 19 macy’s backstage Vendor Standards Appendix C – Bulk Location Number NOTE: Review the macy’s backstage Routing Guide and the Department to DC Listing to determine to which Macy’s Distribution Center merchandise must be shipped. Merchandise may not be shipped directly to stores. Most Macy’s Backstage Purchase Orders are allocated to the BULK location, #77. For purchase orders allocated to specific store locations, contact the EDI Department at 513-782-1222 for specific store listings. Unless specified otherwise in the Macy’s Backstage Purchase Order, use #077, BULK. Page 19 of 19