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:

Purchase Order Non-Compliance – Merchandising Chargebacks. / Failure to comply with Purchase Order or Buyer request
Offset Code	Description	Charge	UOM
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 Unit
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
Offset Code	Description	Charge	UOM
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
Offset Code	Description	Charge	UOM	Min/Max
B1	Merchandise not in corrugated boxes.	$5	Per Ctn	$50/10% of PO
B2	Bands, straps, wire, or other material wrapped around the carton (non-conveyable carton)	$5	Per Ctn	$25/10% 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 $50/10% of PO
B4	Exception for PO’s with mult styles that will fit all in one carton.i.e. jewelry	$25	Per Ctn	$25/10% of PO $50/10% of PO
B5	Mixed delivery. Not sorted or segregated as instructed.	$50	Per Ctn	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	$100 min/10% of PO
B8	Detailed Packing List not inside and outside lead carton.	$100	Per PO	$50/10% of PO
B9	Incorrect Carton Dimensions.	$5	Per Ctn	$50/10% of PO
B10	Shipment not sorted by PO, style, color, and size	$5	Per Ctn	10% of PO
B11	Failure to properly reference Boot Barn PO numbers, on shipments	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
Offset Code	Description	Charge	UOM	Min/Max
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
Non-Compliance/ Trade Compliance and Accounting Chargebacks
Offset Code	Description	Charge	UOM	Min/Max
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

To dispute or question any chargebacks you may receive, you must send an email along with your backup (e.g. screenshots, email confirmations, etc.) of your dispute to Vendor Compliance vendorcompliance@bootbarn.com .