Chargebacks
Chargebacks
Vendor Compliance Chargeback Program
Boot Barn is committed to maximizing customer satisfaction. We recognize that, in order to accomplish this, our vendors are our partners in achieving this goal. This is why Boot Barn Vendor Compliance (VC) has developed detailed instructions outlined in Boot Barn Vendor Manual that must be followed by all vendors.
Why Vendor Compliance?
Customer satisfaction is associated with efficient processing of goods throughout the supply chain. The VC Department establishes requirements and constantly reviews, monitors and inspects all shipments, then reports and charges for all non-compliant issues. The enforcement of VC will improve the levels of accuracy from all vendors, allowing our Distribution Center (DC) to process goods effectively.
General Policy Explanation
- To recover expenses incurred by Boot Barn due to vendors that have not complied with the Boot Barn Standards and Requirements outlined on the Purchase Order or Vendor Manual.
- This policy is intended to support the partnership between Boot Barn and its vendors and not viewed as a revenue center
- All vendor shipments delivered in error will be documented and subject to Chargeback offsets provided later in this Chapter
- Chargebacks can and will be assessed by shipment, PO, carton, unit
- A single vendor shipment with multiple errors may have each occurrence individually documented and charged back.
- Each vendor shall be liable for any chargebacks that are incurred as a result of non-compliance to instructions and requirements within the Vendor Routing Guide.
- Chargeback amounts are deducted from future invoice payments
- If the invoice was pre-paid (paid prior to system receipt), Boot Barn will apply towards the next invoice
- Boot Barn will provide a detailed description of the offset and provide documentation if necessary to file a claim
BOOT BARN VENDOR COMPLIANCE DEPARTMENT CHARGE BACK POLICY
The Boot Barn Vendor Compliance department is assigned to the inspection of all inbound shipments. All shipments received by our Distribution Center/Store are expected to be in full compliance with our outlined requirements contained within this manual. All deviations from these guidelines may result in chargebacks to your company.
Vendor Chargebacks:
| Offset Code | Description | Charge | UOM | Min/Max |
| Purchase Order Non-Compliance / Merchandising Chargebacks: | ||||
| A1 | Order was delivered to DC before Start Ship date. (Early) | 10% of shipped cost | Per Shipment | |
| A2 | Order was delivered to DC after End Ship date. (Late) | 10% of shipped cost | Per Shipment | |
| A3 | Unauthorized shipment (greater than +/- 5%) | $10 | Per Style | |
| A5 | Unauthorized Substitutions | $10 | Per Unit. | |
| A6 | Incorrect pre-packs | 5% of shipped cost | Per PO | |
| A7 | Incorrect Shipment Method | Difference in Freight Charges | Per Shipment | |
| A8 | Shipped to incorrect location | $100 | Per PO | |
| A9 | Special Events PO is late. | RTV or Freight | Per Shipment | |
| A10 | Two or more PO’s on same Comm Invoices or Packing Slip. (for AP) | $50 | Per Instance | |
| A11 | Missing Packing Slip details/ prepack information or any information is missing/incomplete/incorrect | $50 | Per Shipment | |
|
UCC Label Non-Compliance / EDI & ASN Chargebacks: |
||||
| A12 | No UCC label on carton. | $5 | Per Ctn | |
| A13 | Label located incorrectly on carton. | $5 | Per Ctn | |
| A14 | Barcode format is incorrect. | $5 | Per Ctn | |
| A15 | Barcode un-scannable. | $5 | Per Ctn | |
| A16 | Duplicate UCC label. | $20 | Per Ctn | |
|
Packing Non-Compliance / Receiving & Put-Away Chargebacks: |
||||
| B1 | Merchandise not in corrugated boxes. (India) | $5 | Per Ctn | $50/10% of PO |
| B2 | Bands, straps, wire, or other material wrapped around the carton (non-conveyable carton) | $5 | Per Ctn | $50/10% of PO |
| B3 | Multiple POs packed in the carton. | $25 | Per Ctn | $25/10% of PO |
| B4 | Multiple styles packed in the carton. | $25 | Per Ctn | $25/10% of PO |
| *Exception for PO’s with mult styles that will fit all in one carton.*i.e. jewelry | ||||
| B5 | Mixed delivery. Not sorted or segregated as instructed. | $50 | Per Ctn | $50/10% of PO |
| B6 | PO Number not printed on the outside of each carton or not printed correctly. | 10% of PO | Per Shipment | 10% of PO |
| B7 | Carton count not noted on the outside of each carton or not printed correctly. | 10% of PO | Per Shipment | 10% of PO |
| B8 | Detailed Packing List not inside and outside lead carton. | $100 | Per PO | $100 min/10% of PO |
| B9 | Incorrect Carton Dimensions. | $5 | Per Ctn | $50/10% of PO |
| B10 | Cartons over or under packed. | $5 | Per Ctn | $50/10% of PO |
| B11 | Incorrect inner or pre-pack. | 5-10% of PO | Per Shipment | 10% of PO |
| B12 | Incorrect Hangtags or UPCs | $1 | Per Unit | 10% of PO |
| B13 | Missing Information on Hangtags or UPCs | $1 | Per Unit | 10% of PO |
|
Transportation/Shipping Non-Compliance/ Logistics Chargebacks: |
||||
| C1 | Incorrect/Late/Missing ASN | $100 | Per Style | $100 min |
| C2 | No Delivery Appointment | Will be Refused | Per Shipment | |
| C3 | Trailer/Container not loaded properly (FCL) | $100 | Per Ctr | $100 |
| C4 | Unauthorized Split Shipment | 10% of style cost | Per style | $100 min |
| C5 | Late Import Booking | Pre-pay air freight or % of PO | 25% of PO | |
| C6 | Cancelling scheduled pickup (domestic) | $100 | Per shipment | $100 |
| C7 | Cargo not ready for pickup. Pick-up rescheduled | $100 | Per shipment | $100 |
| C8 | OBL not received before Customs clearance | $200 | Per Diem | $500 |
| C9 | Shipment not sorted by PO, style, color, and size | $200 | Per shipment | |
| C10 | Defective Merchandise/ quality of merchandise | RTV | +COGS | |
| C11 | No PP or TOP sample sent | $100 | Per Shipment | $100 |
| C12 | Incorrect/Incomplete Address | $25 | Per Shipment | |
|
Documents (CI+PL) Non-Compliance/ Trade Compliance and Accounting Chargebacks: |
||||
| D1 | Failure to properly reference Boot Barn PO numbers, on shipments | $50 | Per Document | $50/10% of PO |
| D2 | Incorrect/Incomplete Commercial Invoices | $100 | Per Document | $100/10% of PO |
| D4 | No HTS on Commercial Invoice | $20 | Per PO | $20/10% of PO |
| D5 | Missing full style/commodity descriptions | $20 | Per PO | $20/10% of PO |
| D7 | No BOL or inaccurate/insufficient detail on BOL | $100 | Per Shipment | $100 |
| D8 | Missing factory or beneficiary information. (for Import) | $100 | Per Document | $200 |
The Boot Barn Vendor Compliance Department is available to answer any questions.
All charge-back disputes MUST be addressed in writing to vendorcompliance@bootbarn.com.