TRADEFULL DROPSHIP NETWORK: VENDOR MANAGEMENT PLAN

TRADEFULL DROPSHIP NETWORK:

VENDOR MANAGEMENT PLAN

Contents Executive Summary ....................................................................................................................................... 3 1 Vendor On-Boarding .................................................................................................................................. 3

1.1 Existing Vendors .................................................................................................................................. 3 1.1.1 Evaluate Vendor Terms ................................................................................................................ 3 1.1.2 Send Vendor Integration Request ................................................................................................ 4

1.2 New Vendors ....................................................................................................................................... 4 1.2.1 Establish Vendor Terms ............................................................................................................... 4 1.2.2 Send Vendor Integration Request ................................................................................................ 4

1.3 Tradefull Vendor On-Board ................................................................................................................. 4 1.3.1 Tradefull Intake ............................................................................................................................ 4 1.3.2 Initial Vendor Contact .................................................................................................................. 5 1.3.3 Vendor Registration ..................................................................................................................... 6 1.3.4 Vendor Training ............................................................................................................................ 6 1.3.5 Vendor Status Updates ................................................................................................................ 7

2 Octo Activation .......................................................................................................................................... 8 2.1 Vendor Approval ................................................................................................................................. 8 2.2 Owned/Consignment Inventory Vendor ............................................................................................. 8 2.3 Dropship Inventory Vendor ................................................................................................................. 8

3 On-Board Products ..................................................................................................................................... 8 3.1 Product Selection ................................................................................................................................ 9

3.1.1 Full Catalog Activation ................................................................................................................. 9 3.1.2 Purchase Order ............................................................................................................................ 9

3.2 Proposal Review .................................................................................................................................. 9 3.2.1 Proposal Creation ......................................................................................................................... 9 3.2.2 Buyer Review ............................................................................................................................... 9

3.3 Rejected Products ............................................................................................................................. 10 3.3.1 Data Quality Issues ..................................................................................................................... 10 3.3.2 Permanent Rejection ................................................................................................................. 10

3.4 Publish Products ................................................................................................................................ 10 4 Manage Products ..................................................................................................................................... 10

4.1 Product Details .................................................................................................................................. 11 4.1.1 Product UPC /EAN / or GTIN ...................................................................................................... 11 4.1.2 Product Model Number ............................................................................................................. 11 4.1.3 Product Price .............................................................................................................................. 11 4.1.4 Product Attributes ..................................................................................................................... 11 4.1.5 Product Description ................................................................................................................... 12 4.1.6 Product Features ........................................................................................................................ 12

4.2 Product Images ................................................................................................................................. 12 4.2.1 Stock Images of Product ............................................................................................................ 13 4.1.2 Product Photography in-house .................................................................................................. 13

4.3 Update Products ............................................................................................................................... 13 4.3.1 Update Request ......................................................................................................................... 13 4.3.2 Manually Reviewed Updates ..................................................................................................... 13

4.3.3 Automatically Approved Updates .............................................................................................. 14

5 Manage Inventory .................................................................................................................................... 14 5.1 Owned Inventory .............................................................................................................................. 14

5.1.1 Inbound Inventory ..................................................................................................................... 15 5.1.2 Inventory Updates ..................................................................................................................... 15 5.1.3 Inventory Audit .......................................................................................................................... 15

5.2 Dropship Inventory ........................................................................................................................... 15 5.2.1 Automated Inventory Feeds ...................................................................................................... 15 5.1.2 Manual Inventory Feeds ............................................................................................................ 16

6 Manage Orders ........................................................................................................................................ 16 6.1 Fulfilment .......................................................................................................................................... 16

6.1.1 Order Details .............................................................................................................................. 16 6.1.2 Packing Slip ................................................................................................................................ 17 6.1.2 Process Shipment ....................................................................................................................... 17 6.1.3 Order Invoicing ........................................................................................................................... 18

6.2 Fulfilment Issues ............................................................................................................................... 18 6.2.1 Product Fulfillment Issues .......................................................................................................... 18 6.2.2 Order Cancellation ..................................................................................................................... 18

7 Manage Returns ....................................................................................................................................... 19 7.1 Return Merchandise Authorization (RMA) ....................................................................................... 19

7.1.1 Customer Service ....................................................................................................................... 19 7.1.2 Self-Service ................................................................................................................................. 19 7.1.3 Return to Sender ........................................................................................................................ 19

7.2 Return Processing ............................................................................................................................. 20 7.2.1 Returns Center ........................................................................................................................... 20 7.2.2 Direct to Vendor ......................................................................................................................... 20 7.2.3 Return Check-In.......................................................................................................................... 20 7.2.4 Return Resolution ...................................................................................................................... 20 7.2.5 Return Invoicing ......................................................................................................................... 21

8 Vendor Reporting ..................................................................................................................................... 21 8.1 Order Reporting ................................................................................................................................ 21

8.1.1 Sales Reporting .......................................................................................................................... 21 8.1.1 Return Reporting ........................................................................................................................ 21

8.2 Compliance Reporting ....................................................................................................................... 22 8.2.1 Item Content Score (IQS) ........................................................................................................... 22 8.2.2 On-Time Ship Performance ........................................................................................................ 22 8.2.3 Order Defect Rate ...................................................................................................................... 22 8.2.4 Negative Product Experience Score ........................................................................................... 22

Executive Summary The Tradefull Dropship Network (TDN) Vendor Management Plan describes and organizes the many

tasks, parties, and resources that are involved in managing vendor activities. Each section defines the

party or parties that are responsible for a task, which tasks precede or follow, a timeline (if applicable),

and additional information. This document is a supplement to the TDN Work Breakdown Structure,

which visually depicts the primary functions and tasks of the vendor management process, and the

individual workflows, which depict the order and timing of tasks for specific activities (e.x., order

fulfillment).

1 Vendor On-Boarding Owners: Brand (Buyer) and Tradefull (Integration Team)

Order: Precedes all tasks

When a brand/buyer signs on a vendor, they go through the following on-board process. This on-board

process will make the vendor’s products available for their brand and other REV brands without the

need for additional setup.

Vendors can already exist for REV brands - currently providing products to another brand - or they will

be entirely new to the organization. Vendors may also provide owned or consigned inventory, and/or

provide inventory for drop shipping. Each of these arrangements has a specific workflow.

1.1 Existing Vendors Owner: Brand (Buyer)

If the vendor already exists within the REV network, any negotiated terms need to be compared prior to

providing an integration request.

1.1.1 Evaluate Vendor Terms Owner: Brand (Buyer)

The buyer compares the terms they are negotiating with the vendor to the existing terms for that

vendor with other brands and take whichever terms are best for all REV brands.

Terms that should be evaluated are:

• Credit Limit

• Payment Days

• Return Limit

1.1.2 Send Vendor Integration Request Owner: Brand (Buyer)

Fill out a request for the existing vendor to be on-boarded and send it to: [email protected]

1.2 New Vendors Owner: Brand (Buyer)

If the vendor is believed to be new to REV network, an integration request should be sent after terms

have been established.

1.2.1 Establish Vendor Terms Owner: Brand (Buyer)

The buyer should negotiate standard terms with the potential vendor prior to sending an integration

request.

1.2.2 Send Vendor Integration Request Owner: Brand (Buyer)

Fill out a request for a new vendor to be on-boarded and send it to: [email protected] and

include the primary vendor contact on the request so that they are introduced to Tradefull.

1.3 Tradefull Vendor On-Board Owner: Tradefull (Integration Team)

Tradefull’s on-board process is initiated with a request from the brand team, at which point the

integration team completes an initial assessment and then processes the vendor on-boarding. Through

this process Tradefull works with the vendor to determine an integration method, providing relevant

support and system training. This process ends with Tradefull updating the on-board status in Octo to

“Active” and vendor products becoming available for order.

1.3.1 Tradefull Intake Owner: Tradefull (Integration Team) Timeline: 24 hours

Tradefull processes the initial request and cross-references current vendor information to provide an

acknowledgement. In the case of new vendor requests, if the vendor is determined to be entirely new

Tradefull responds to the requestee confirming this status. Otherwise, Tradefull provides any known

information about the vendor and works with the buyer to process the request under the existing

vendor workflow.

For existing vendors, Tradefull pulls down relevant vendor information from Octo to complete much of

the initial setup and registration.

1.3.2 Initial Vendor Contact Owner: Tradefull (Integration Team) Timeline: 1 Week

Tradefull contacts the vendor to schedule a kick-off meeting, gather additional technical information,

and determine which integration method the vendor will follow.

One of the following basic types of integration is selected:

API:

• The vendor receives instructions and credentials to interface with the Tradefull Drop Shipper

API. Included with their credentials, the vendor gains access to the API’s documentation for

assistance in the setup process.

• Vendors integrating with this method exclusively utilize the API connection to provide product

data, manage inventory feeds, and process orders.

EDI:

• The vendor receives instructions to connect to Tradefull’s AS2 Services and send/receive

encrypted data through EDI.

• Vendors integrating with this method utilize EDI transactions to manage inventory feeds and

process orders.

• Vendors integrating with this method manually upload product data to the Tradefull portal.

Manual:

• The vendor receives hands-on training, instructions, and credentials to access the Tradefull

portal.

• Vendors using this method manually upload product data and inventory feeds, using pre-

defined templates, to Tradefull.

• Vendors integrating with this method utilize the Tradefull portal to manage and process orders.

Custom:

• The vendor receives instructions that correspond to how they will send/receive data with

Tradefull along with the appropriate credentials for those transactions.

• The timeline for integration and training for vendors utilizing a custom approach can vary

depending on any additional software/system development that occurs.

1.3.3 Vendor Registration Owner: Tradefull (Integration Team) Timeline: 24 hours

After the initial kick-off call, the integration team creates a vendor account in Tradefull and adds users to

that account for product and order management. Vendors integrating via API/EDI validate connections

to Tradefull services utilizing the provided documentation and direct assistance from the integration

team. All vendor contacts also receive Tradefull account management documentation that provides

information on adding new users and resetting passwords.

Pre-existing Tradefull packing slips are used by default for vendors that utilize manual integrations.

Vendors integrating via other methods are provided with a sample packing slip image to replicate in

their order fulfillment step.

1.3.4 Vendor Training Owner: Tradefull (Integration Team) Timeline: Varies

Vendor training is dependent on which integration method is established during the vendor and

integration team kick-off. All vendors are given access to Tradefull U, a web-based training and help

portal, that has been established to provide step-by-step instructional guides and videos for Tradefull

systems.

API:

Vendors that integrate via API receive necessary training during the kick-off call when they receive their

credentials and API documentation. At this point, vendors are provided with guidance on the required

fields and data to provide for each process: uploading products, managing inventory, and processing

orders. Post kick-off support is provided by Tradefull to ensure that the vendor is able to successfully

connect and send/receive data.

EDI:

Vendors that integrate via EDI receive hands-on training during the kick-off call on how to upload

products with the required data. Additionally, they receive documentation and guidance on the required

fields and data to provide inventory feeds and order processing. Post kick-off support is provided by

Tradefull to ensure that the vendor is able to successfully connect and send/receive data.

Manual:

Vendors that integrate manually receive hands-on training and how-to guides on how to use the

Tradefull portal for each process: uploading products, managing inventory, and processing orders. These

vendors are also provided with several templates for manual product and inventory uploads, in addition

to the interfaces available in Tradefull for managing these processes.

Custom:

Vendors that integrate via Custom methods receive a hybrid of the above support, depending on what

their needs are relative to the integration approach. At a minimum, they are given guidance on each

step in the process and post integration verification that the vendor is able to successfully connect and

send/receive data.

1.3.5 Vendor Status Updates Owner: Tradefull (Integration Team) Timeline: At Each Status Change

Throughout the Tradefull on-board, information is sent to Octo for approvals and status of the vendor is

updated.

On-board status meanings:

Created

• Tradefull sent an indication that the vendor registration has been completed and is awaiting

approval from Octo

• Octo produced a success status

In Process

• Approval has been received from Octo

• Tradefull is awaiting the vendor’s product data – all data for required fields and product images

are provided and must pass Item Quality Score (IQS) threshold

o IQS is further defined in 8.2.1

Active

• The vendor is activated and has uploaded products with available inventory that pass the IQS

threshold

Pending

• The vendor is integrating via a Custom method which will require a longer timeline to complete

2 Octo Activation Owners: Octo and Tradefull Order: Follows Vendor On-Board and precedes Product On-Board

A vendor is activated in Octo once it has passed the approval step and the vendor has successfully

uploaded products and inventory to Tradefull. A vendor’s products only become available for order after

the vendor has been activated.

2.1 Vendor Approval Owner: Octo

Tradefull sends vendor registration data to Octo for validation which Octo accepts, if the data meet

criteria, or rejects, if the vendor fails to create. The vendor state must be set to approved before product

and inventory data can be ingested by Octo.

2.2 Owned/Consignment Inventory Vendor Owner: Octo

Owned/Consignment vendors are those suppliers whose inventory is purchased and managed by REV

brands and Tradefull. A vendor can be designated as an owned/consignment and a dropship vendor in

Octo.

2.3 Dropship Inventory Vendor Owner: Octo

Dropship vendors are those suppliers whose inventory is available on REV brand sites but the vendor

manages inventory and fulfills orders that are trafficked through Tradefull. A vendor can be designated

as an owned/consignment and a dropship vendor in Octo.

3 On-Board Products Owners: Brand (Buyer), Tradefull, and Vendor Order: Follows Product Management and precedes Order Management Occurs continuously for new products

Products are brought on-board in Octo after they have passed through a proposal review process.

Throughout this process, products are reviewed for their content and suitability for REV brands. A

product can be cycled back through the process for correction should it not meet standards or it can be

prevented from being published to Octo if it is unsuitable.

3.1 Product Selection Owner: Brand (Buyer) and Tradefull

Buyers choose to make a vendor’s full catalog of products available or convert a selection of products to

a proposal for review and the approval process. Prior to the product selection process, product listings

pass through the IQS evaluation; those that fail to pass the threshold are routed back to the vendor for

correction – additional product details or product images. Products that pass IQS evaluation can then be

selected through the search and filter features in Octo to create a proposal for a brand.

3.1.1 Full Catalog Activation Owner: Brand (Buyer)

The buyer selects all available products from the vendor in Octo and converts them into a proposal for

review.

3.1.2 Purchase Order Owner: Brand (Buyer)

The buyer utilizes criteria to select specific products in Octo and convert them into a proposal for

review.

3.2 Proposal Review Owner: Brand (Buyer)

A buyer(s) reviews the products and product information in a proposal, publishing products to Octo by

approving the proposal or requiring additional workflow by rejecting products.

3.2.1 Proposal Creation Owner: Brand (Buyer)

Selections made during product selection (task 3.1) are converted into a formal proposal in Octo.

3.2.2 Buyer Review Owner: Brand (Buyer)

Open proposals are reviewed by a buyer(s) under a brand’s guidelines. Buyers can approve a proposal,

publishing the products for purchase or drop shipping, or reject them which leads to a rejected product

workflow.

3.3 Rejected Products Owners: Brand (Buyer) and Vendor

Products rejected during the proposal review process are sent back to the vendor’s update product

workflow or the product is permanently rejected from being published.

3.3.1 Data Quality Issues Owner: Brand (Buyer) and Vendor

Products rejected by a buyer are routed to the manage products (task 4) workflow, for the vendor to

correct any issues raised during the review. These required changes will be for updates to the product

details and/or the product images.

3.3.2 Permanent Rejection Owner: Brand (Buyer)

Products that do not meet the standards for REV brands can be rejected permanently to prevent them

from being included in future proposals. These products are given master id numbers upon creation in

Tradefull so updates to product SKUs, UPCs, and/or model numbers will not reintroduce them in future

proposals or product update reviews.

3.4 Publish Products Owner: Octo

Products that have been approved following buyer review in the proposal process will be published,

making them available for owned/consignment orders and/or drop shipping.

4 Manage Products Owners: Vendor and Tradefull (Partner Services/Product Content)

Order: Follows Octo Activation and Precedes Product On-Board Occurs continuously for new product adds/product updates

Product management tasks describe the actions and data that are typically the responsibility of the

vendor to provide or update. In some cases, Tradefull’s Product Content Team will aid in managing

product data. When product data are updated, an update review is initiated in Octo that must be

reviewed by a brand/buyer and will only be published once an approval is received.

4.1 Product Details Owner: Vendor

Vendors that use API integration push product data through automated product feeds and those that

use EDI or manual integration utilize templates to provide this information through the Tradefull portal.

Vendors are provided a range of required and optional fields to provide for a product and these can be

updated by the vendor at any time.

4.1.1 Product UPC /EAN / or GTIN Owner: Vendor Optional field

This field is a unique product id typically assigned to products from a trade registry.

4.1.2 Product Model Number Owner: Vendor Optional field

Maps to ‘Style’ field in Tradefull. The code given to products by the manufacturer. Typically, 5-6

characters in length and can consist of any variation of letters and numbers depending on the

manufacturer.

4.1.3 Product Price Owner: Vendor Required field

This field indicates the vendor’s retail price of the product.

4.1.4 Product Attributes Owner: Vendor

Vendors are required to provide information for key attributes to meet the minimum standards for a

product to be publishable. Optional attribute fields are also available for the vendor to improve the

merchandising of their products.

Required fields:

Product Title: The heading of a listing, a short description that reflects what the product is Brand: Company or name that the product is attached to; may be the same as the manufacturer

Series: A name that identifies a line of products Category/Sub Category: Pre-defined options that identify the type and classification of a product Product Dimensions (inches): The length, width, and height of the product Weight (ounces): The weight of the product Gender: The size category of a product: Women’s, Men’s, Children’s, or Unisex Size: Unit of measure based on product category that describes size

Optional fields:

Material: Raw material(s) used in manufacturing

Life Style:

Variation:

Variant Size:

Color: Color the manufacturer gives the product, can be a unique name or a generic color

Color Map: Generic color options for the most dominant color on the product – used to narrow searches

Cost: The cost to purchase the product

Manufacturer: The person or company that made the goods being sold

Amazon ASIN: 10-digit alphanumeric Amazon Standard Identification Number - maps products to the

correct listings on Amazon

Item Package Quantity: Number of items that are being sold together (EX: 2PK=2)

4.1.5 Product Description Owner: Vendor Required field

This field communicates the value proposition of the product.

4.1.6 Product Features Owner: Vendor Optional field

There are up to 11 additional product feature fields that vendors can include for products.

4.2 Product Images Owners: Vendor and Tradefull (Partner Services/Product Content)

Images for products are either supplied by the vendor (stock images) or can be provided by Tradefull’s

Product Content team. Images are required to be high quality and are hosted so that they can be

rescaled to needed dimensions without image quality loss.

4.2.1 Stock Images of Product Owner: Vendor

Vendors should supply high quality, e-commerce suitable product images when adding or updating their

product catalog.

4.1.2 Product Photography in-house Owner: Tradefull (Partner Services/Product Content)

Tradefull’s Product Content team maintains an in-house studio that has been designed for taking e-

commerce suitable product photos. Upon request, the Product Content team can pull owned/consigned

inventory or receive samples to produce high quality product images.

4.3 Update Products Owners: Vendor, Brand (Buyer), Octo, and Tradefull

Product updates follow a similar process to the initial product on-board where data are updated through

an API or the Tradefull Portal and listing are evaluated prior to being pushed to Octo. Updates go live

once they have been accepted through the review process or, under certain conditions, are auto-

approved. Overrides will remain in place for updated fields despite approval or rejection.

4.3.1 Update Request Owners: Vendor and Tradefull

An update request is generated when a vendor changes data in the product details fields or submits new

product images. Data sent through API or uploaded manually through the Tradefull portal are collected

by Tradefull and pushed to Octo as a product update request.

4.3.2 Manually Reviewed Updates Owner: Brand (Buyer)

Product updates that require a manual approval in Octo will go to a brand/buyer for review. Fields that

will always trigger a manual review are: cost, product title, and product images. Buyers review updates

in Octo on a case-by-case basis or bulk approve/reject as needed.

4.3.2.1 Update Approval

Owner: Brand (Buyer)

Product update requests that are accepted by the brand/buyer will go live unless an override is in place

for the field(s) that has been updated.

4.3.2.2 Update Rejection

Owner: Brand (Buyer)

Product update requests that are rejected by the brand/buyer will initiate a send-back to the vendor for

correction.

4.3.3 Automatically Approved Updates Owners: Octo and Tradefull

Automatic approvals of product updates can occur under certain conditions. The first is, if data are

changed in optional fields then the update(s) can be approved automatically. A second is, if the vendor

achieves a high trust score then changes to data in specific required fields can be approved

automatically.

5 Manage Inventory Owners: Vendor and Tradefull (Integration Team /Partner Services)

Order: Follows Product Management and Precedes Order Management Occurs continuously for added products

Inventory, and ultimately the quantity of a product available for sale, is managed based on how the

product is purchased from a vendor. Products that REV brands purchase for on-hand inventory or on-

consignment are managed through the Tradefull Fulfillment Network. The requirement for drop shipped

products is that the vendor provide updated, accurate quantities available for sale.

5.1 Owned Inventory Owner: Tradefull (Partner Services/Operations)

Tradefull manages owned/consigned inventory for REV brands through the Tradefull Fulfillment

Network and provides real-time inventory feeds, inventory history, and quality control for these

products.

5.1.1 Inbound Inventory Owner: Tradefull (Partner Services/Operations)

Tradefull’s receiving team manages the product inbound process: receiving and verifying the items on a

purchase order, and putting products into inventory. The receiving team can resolve issues with missing

or incorrect barcodes when they identify these cases or when brought to Tradefull’s attention.

5.1.2 Inventory Updates Owner: Tradefull (Partner Services/Operations)

Updates to on-hand inventory are managed by Tradefull by request. These include actions like:

relabeling product when its SKU changes and moving owned SKUs between brands.

5.1.3 Inventory Audit Owner: Tradefull (Partner Services/Operations)

Tradefull’s operations team conducts on-going inventory audits as part of its normal fulfillment process.

However, specific SKU audits can also be conducted via request through the Partner Services team.

Audit reports are available in the Tradefull portal in real-time.

5.2 Dropship Inventory Owner: Vendor

Vendors are required to regularly update available quantities for sale for drop shipped products. There

are two approaches that vendors can use to provide these data: 1. automated feeds through API or EDI

connections, or 2. manual uploads in the Tradefull portal.

5.2.1 Automated Inventory Feeds Owner: Vendor

Vendors that connect to Tradefull via API or EDI receive protocols and guidance on updating available

inventory during the on-board phase. The exact timing of these updates depends on the vendor’s

inventory management policies however, these feeds are continuously providing updated quantities.

5.1.2 Manual Inventory Feeds Owner: Vendor

Vendors that connect to Tradefull via manual integration receive inventory templates and training on

how to update available inventory in the Tradefull portal. These updates can be completed in bulk to

make the process easier for the vendor. Under this setup, the vendor is responsible for updating

inventory as necessary to keep accurate quantities for their products.

6 Manage Orders Owners: Vendor and Tradefull Order: Follows Product On-Board and Inventory Management

Orders are fulfilled through a vendor’s in-house order management system (OMS) when they use API or

EDI integration and directly through the Tradefull portal when they use manual integration. Order

fulfillment will vary for custom integrations, typically these vendors fulfill orders in their own OMS and

send data back and forth with Tradefull. Steps in the fulfillment process provide detailed information on

order status and helps maintain vendor compliance.

6.1 Fulfilment Owners: Vendor and Tradefull

Tradefull pulls incoming orders from each brand’s site and prepares order data for fulfillment. This

process includes creating an order record, which is converted to a sales order (fulfillment) when being

sent to the party responsible for shipping the order/product(s). Once Tradefull has received

confirmation of shipment, tracking data are uploaded to the brand’s site and the order is marked as

shipped.

6.1.1 Order Details Owner: Vendor

API / EDI

Once a new order is received and processed into the Tradefull Dropship Network, necessary order data

are made available. Vendors that use API integration typically setup a process to check for new orders

and pull information multiple times an hour. For vendors that use EDI integration, Tradefull uploads an

order file onto an FTP server for the vendor to pick up and import into their system.

Order data include:

• Order Id

• Shipping Information

• Ship Method

• Promised Date

• Product(s)

• Quantity

• Price

Manual

Vendors that fulfill orders under manual integration will find all of the order details available in the

Tradefull portal. They can quickly find and select open orders using the various filtering methods in the

manage orders menu and use the order information to pick the correct product and quantities for

shipment.

6.1.2 Packing Slip Owner: Vendor

API / EDI

Samples are provided to the vendor during the on-board phase so that they can replicate the

appropriate packaging slip to include with a shipment.

Manual

In the Tradefull portal, the vendor can print a standard version of the Tradefull packaging slip from an

order detail page to include with a shipment.

6.1.2 Process Shipment Owner: Vendor

API / EDI

Vendors that use API integration directly access the Tradefull Fulfilment Network (TFN) to obtain rates

and utilize smart-routing for the order. TFN selects the best carrier and service, and produces the

shipping label(s) for the vendor to print. This makes the shipment data (ship time, tracking number,

boxes, etc.) immediately available in Tradefull and updates the order status to shipped.

Vendors that use EDI integration receive pre-selected carrier and service information with the order

data that is sent in task 6.1.1. These vendors produce their own shipping labels, using 3rd Party Billing to

obtain TFN rates, and upload shipment data to Tradefull through EDI.

Manual

In an order’s detail page, vendors can print a shipping label for the order – this will access TFN rates and

utilize smart-routing for the shipment. Once the label has been printed, the order status is updated to

shipped and shipment data become available through Tradefull.

6.1.3 Order Invoicing Owner: Tradefull

Order invoices are generated automatically after shipment confirmation has been received by Tradefull,

regardless of the vendor’s integration method. Invoices lines are added to the weekly detail for the

brand site that received the sale.

6.2 Fulfilment Issues Owner: Vendor and Tradefull (Customer Service)

Fulfillment issues occur when a vendor is unable to provide a product, resulting in a partial ship, of an

order. The other issue that can occur is a vendor being unable to fulfill the entire order which results in a

cancellation. Currently vendors must contact Tradefull’s customer service team to partial ship or cancel

an order.

6.2.1 Product Fulfillment Issues Owner: Vendor

Results in a partial ship, due to the vendor being unable to provide all products and/or quantities on the

order. This also occurs if the vendor is unable to fulfill all products belonging to them, but other

products are shipped from owned inventory and other vendors.

6.2.2 Order Cancellation Owner: Vendor

Vendor is unable to provide any of the products on the order and no other products are provided by

another party.

7 Manage Returns Owners: Brand, Vendor, and Tradefull (Customer Service) Order: Follows Order Management

The return management process builds on much of the existing infrastructure of the order and inventory

management processes; invoicing and inventory upload feeds are utilized in tracking accounts and

available inventory for sale.

7.1 Return Merchandise Authorization (RMA) Owner: Brand and Tradefull (Customer Service)

Returns are initiated by customers through a number of channels and the return type (refund, exchange,

etc.) and return destination (return center or direct-to-vendor) are typically determined during this

process.

7.1.1 Customer Service Owner: Brand and Tradefull (Customer Service)

RMA requests received through contact with customer service agents. Returns are processed based on

customer request and the agent is responsible for providing the return address information.

7.1.2 Self-Service Owner: Brand

RMA requests received through the self-service application on brand sites. Returns are processed based

on customer request and the portal provides the customer with return instructions.

7.1.3 Return to Sender Owner: Vendor and Tradefull (Customer Service)

RMA’s designated as return to sender are processed as a refund, except in the case were the packages

was clearly opened and/or the product is damaged and cannot be resold. Return to sender can occur

when a package is undeliverable, is never picked up, or is refused by the customer.

7.2 Return Processing Owner: Vendor and Tradefull (Operations)

Workflow and information for returns is dependent on the destination of the product being returned

however, once checked in, TDN handles the invoicing and inventory updates.

7.2.1 Returns Center Owner: Tradefull (Operations)

Represents when product returned directly to Tradefull or processed through a 3rd party return service

and then forwarded to Tradefull’s return center. Products that go to this destination are added back into

owned/consignment inventory.

7.2.2 Direct to Vendor Owner: Vendor

Represents when product is returned to the vendor, typically for drop shipped products under certain

criteria. Products that go to this destination are added back into available drop ship inventory, once the

vendor has checked the product in.

7.2.3 Return Check-In Owner: Vendor and Tradefull (Operations)

Returns received by Tradefull are reviewed, inspected to determine salability, and logged by the returns

team during the check-in process. Once check-in is complete and if the product is salable, it is

automatically added back into inventory and the resolution is processed.

Vendors are responsible for timely completion of intake and review of returns that are directed to them.

After processing a return, the vendor uploads completed return data to Tradefull to initiate the invoicing

process.

7.2.4 Return Resolution Owner: Brand, Tradefull, and Vendor

In the case of a customer-initiated return, the resolution – refund, replacement, or exchange – is

determined by the customer’s request. In the case of return to sender, the resolution automatically

follows the brand’s default return policy.

7.2.5 Return Invoicing Owner: Tradefull

Return invoices are generated automatically after an RMA has been processed. Invoices lines are added

to the weekly detail for the brand site that received the sale.

8 Vendor Reporting Owner: Tradefull Order: Occurs continuously

Tradefull reporting focuses on two main categories of operation, orders reporting and vendor

compliance reporting, and are available through Tradefull for vendors and pushed to Octo for REV.

Order reporting provides analytics on product sales and returns while compliance reporting provides a

scorecard of overall vendor performance.

8.1 Order Reporting Owner: Tradefull

Order reporting provides insights and data related to orders, which includes sales and returns.

8.1.1 Sales Reporting Owner: Tradefull

Sales reporting provides data on daily sales, in units and dollars, by SKU which can be summarized by

several dimensions: time, channel, or product details. Vendors can also pull product velocity reports to

gain insight on which SKUs are their best-selling, which SKUs may need further merchandising, or which

SKUs need to be restocked.

8.1.1 Return Reporting Owner: Tradefull

Return reporting provides data on daily returns received and processed, in units and dollars, by SKU.

These data, plus data captured during the return intake, can also be found at the order-level by

reviewing the order details page for orders that have a return.

Tradefull captures return information from the customer’s RMA request and during the return intake to

provide insights on returns.

8.2 Compliance Reporting Owner: Tradefull

Compliance reporting provides insight on vendor performance and quality. Key Performance Indicators

(KPIs) of vendor performance are reported together to form a vendor scorecard.

8.2.1 Item Content Score (IQS) Owner: Tradefull

Item Content Score (IQS) provides a comprehensive grade of a product’s listing data to help ensure that

high-quality product content is provided. The IQS score identifies listings that should be reviewed for

improvement and provides recommendations on listing sections to help improve scores. During new

product on-boards, a minimum IQS threshold must be achieved for the product listing to pass to the

publishing phase.

8.2.2 On-Time Ship Performance Owner: Tradefull

On-Time Ship (OTS%) is measured based on an order’s expected ship date and date of first scan by the

carrier; orders ship “on-time” when the carrier registers their first scan on the prior to or the day of the

expected ship. Carrier first scan signals acknowledgement of package receipt by the carrier and provides

updates to the customer that their package is on-the-way. A continually high OTS% is a sign of vendor

reliability vendor and is crucial in managing shipping cost.

8.2.3 Order Defect Rate Owner: Tradefull

Order Defect Rate (ODR%) is a blended measurement of a vendor’s fulfillment issues across all of their

orders; short shipments plus canceled orders are summarized to calculate ODR%. This KPI helps provide

insight on the accuracy and reliability of a vendor’s inventory management.

8.2.4 Negative Product Experience Score Owner: Tradefull

Negative Product Experience (NPE) measures customer experience based on customer service and

return data; higher scores indicate more negative experiences. This score is comprised of several

measures for a vendor: incorrect product shipments, damaged product, poor descriptions that lead to

customer confusion and incorrect product listings or labeling.