Compliance Can Add Years To Your Life!

1. Compliance Can Add Years To Your Life!

3. Lifetime Brands Inc Compliance Team & NEECOM Presents Compliance and IT Collaboration

4. Creation of a Compliance Department 1998 • In 1990 I was hired to work in a DC for International Silver Co, later to become part of Syratech Corporation and worked my way through different departments to learn the Supply Chain Business • In September 1998 I was younger and very happy working in our DC in East Boston, Massachusetts • Our Senior Management Team wanted to start a Compliance Department because of chargeback’s • START A WHAT I SAID!!!!!!! • So I accepted the position and was assigned a VP to report to and establish this “NEW DEPARTMENT” • And so my career in Compliance was off to a running start

5. Compliance Will Add Years to Your Life!!!!!!! (QUICKLY) Santa: I want to work in compliance when I grow up! Jerry 1998 Before Compliance Had more hair and hair was brown What Some Retailers and my DC’s have done to me!

7. Syratech Faced Major Challenge! • 3 Domestic DC • 1 Import Office (China) • File cabinets bursting with Routing Guides • Updates coming constantly, from many sources • Many customers had started to develop their own websites • There was no internal organization of documents

8. Compliance Meets IT In 2000 • How do we create a NEW Compliance Link to go along with the existing Intranet called Syratalk? • At the time we discussed with IT the issues and problems and they assigned our web designer to work with us • But how would we develop this and what sort of data did we want to capture?

11. Lifetime Brands Inc Purchases Syratech Corporation • In 2006 Lifetime Brands Purchased Syratech • With-in a few months, we were organizing our Compliance Department • Our Intranet Syratalk was expanded, but, there was a push to retire it so what would we do?

12. Compliance Meets IT In 2007 • How do we create a NEW Intranet to go along with NEW Company Policies? • Lifetime Brands uses SHAREPOINT • How do we learn SharePoint? • But how would we develop this?

13. Routing Guides Inbound Compliance Customer Website Addresses EDI Requirements Floor Ready Instructions Corporate Policies & Procedures IMPORT FOB-POE DOMESTIC ROUTING Shipping Label Formats What Did We Want To Capture?

14. Routing Guides Inbound Compliance Customer Website Addresses EDI Requirements Floor Ready Instructions Corporate Policies & Procedures IMPORT FOB-POE DOMESTIC ROUTING Shipping Label Formats What Did We Want To Capture?

16. Web Portals Managed By Retailers and Many Password Protected!

23. Some Retailers Only Use PDF Documents and they Change

26. Compliance & IT Team Work!

27. LET’S TALK ABOUT SOME REAL CHALLENGES VENDORS FACE WHEN DEALING WITH A RETAILER!

28. Major Issue That Can Hit A Vendor’s Pocket? • Retailers that do the 856 require a specific UCC-128 label • If data is not in the right place on label, or error in transmitting the ASN, there is a chargeback!

29. Let’s Talk About the 850 – POPricing Issue - Retail Price Not Passed in Transmission? • One specific Retailer will not pass Retail Price in the EDI 850 for Catalog Division • Expects Vendor to put correct Price on Retail Tickets based on THEIR Product Data Base (PDB) • We pull every week from Retailer’s Web Portal All Items and All Prices • With this Retailer we have multiple Supplier ID’s and Multiple Departments • But, WHAT DO WE DO WITH THE DATA!!

30. Our IT Department Creates A Report Called PRICE DISCREPANCY • We take the Retail Price that is in Retailer’s PDB and enter with-in SAP in what is called the VK13-ZTKT • This is set-up by the Retailers SAP Bill-To Account # • As orders are Received via the 850, the Program will: • (1) Interrogate every order received • (2) Keep in mind, this Retailer DOES NOT PASS Retail Price, so $0.00 is transmitted • (3) Obviously in this instance, there is a discrepancy so our warehouse will use the VK13-ZTKT as the price • (4) But you might be thinking then why run the report? Well, this Retailer says they will pass starting Q1 – 2012. They are late, but we are ready. • Report is DC Specific • Next Slide is an Example of the Report

31. Pricing Issue EDI Retail Price Not Passed in Transmission ZD13- Is Blank! We use the VK13-ZTKT To Ticket in DC but keep in mind, we up-date the VK13-Every Week, from the Retailer’s PDB - IF Needed

32. Challenge for Product Ticketed Overseas • Customers order product months ahead of time to be manufactured overseas and ticketed to save labor costs in US • Customers Provide Retail Price when they place orders • Product brought into US DC’s for distribution • BUT!!! Sometimes What Can Happen????? • Prices Change from time item is produced to actual shipping • Not caught in DC resulting in chargeback's • So we use the Same Report but we put the Original Price in the VK13-ZTKT • Then same process. See next Slide!

33. Pricing Issues EDI 850 Retail PriceOverseas Ticket Price in SAP – VK13-ZTKTZDI3 Captures Retail Price in EDI 850If Discrepancy, alert e-mail sent to distribution e-mail addresses to rectify and validate. In This Case We Re-Ticket After Validation From Retailer

34. WHAT ELSE DID OUR IT DEPARTMENT DO TO HELP US CONTROL CHARGEBACK’S?

35. Multiple Retailers who have this requirement Had to have a Central Repository for Data Created this in SAP Information Pulled from Retailers Compliance Guides Every Retailer has an SAP Account # Fields for Min/Max Length/Width/Height and Weights Some Retailers Have Min/Max Carton Sizes & Weights

37. IT had to build a Program? To Do What? What Did They Compare? Had to be done as the orders were received in SAP because of different WMS Systems Interrogate each order coming in via EDI or Manual? They would look at the Actual LxWxH and Weight of Items and compare it to the Repository OK So Data Is Stored In SAP?

38. The Results? By DC/By Customer/By PO

39. When Problem Found Proper Departments Notified • Department will contact Retailer for Waivers • On Replenishment Orders ask for Blanket Waivers • Has saved us $$$$$$$$$$$$$$$$$$$$$$$

40. New Challenge! RFID As a Company Lifetime needs to be compliant by 12/1/12 with 1 – Retailer and Q1 – 2013 with another IT is involved for equipment purchase, data collection with-in WMS and SAP if needed as well as developed a Proof of Concept How would we capture and control Serialization Numbers Future considerations if Serialization Numbers had to be in the ASN. If not handled properly chargeback can be .60 a unit Selected IT Team meets weekly with Compliance Team and help developed solutions and the selection of a service provider

41. Specific EDI requirements Specific Packing Slip Design Specific UCC-128 Label Design 850-855-856-810 Logos-Text-Gift Messages Ship From Address, lay-out LIFETIME ALSO DROP SHIPS DIRECT TO CONSUMER FOR MAJOR RETAILER’S WHO DOES THE WORK? THE IT DEPARTMENT

42. Lifetime Also Ships Direct To Consumers and a B2B Site for Smaller Retailers • www.mikasa.com • www.pfaltzgraff.com • www.housewaresdeals.com • www.lifetimesterling.com • www.lifetimebrandswholesale.com • Each of the above have their own requirements!

43. SO FROM MY COMPLIANCE TEAM TO OUR IT DEPARTMENT THANK YOU FOR ALL YOUR HELP!

44. Not just an IT Responsibility to reduce chargeback’s Compliance Managers need to know customer requirements Need to know basic EDI Commands (EDI 101) Need to be Pro-Active Work with your IT Teams Get involved in Projects with them Ask Questions to the IT Team What else can you do? But What Can Compliance Team or Others Responsible for Compliance DO!

45. Start and Facilitate Quarterly DC CB Meetings! • Quarterly Chargeback meetings and discuss chargeback’s that are controllable and uncontrollable • Make sure you have the right people attend. We have VP Distribution, Directors of DC and Staff • Talk about positives and negatives • If there are EDI Chargeback’s find out if caused by DC. Keep in mind deductions for EDI related issues are coded from Retailer as EDI Error. Validate!!!!

46. Get Your Company Involved! • Many organizations out there where you can get help • One of the best for Compliance Teams is VCF • Here you not only get information on Compliance, but you hear about EDI, RFID, One-On-One Meetings with Retailers and other areas that will help your company be compliant with Retailer’s Requirements and will help TEACH US as Compliance Teams

47. Retail Members 47

48. Vendor Compliance Federation

49. VCF Working Hard As A Group Arc International - Berwick Industries - Capcom- Cobra Electronics - Creditek - CSM Communications - Emagia - Genco - Henri Studio - Homedics - IAB - Hoover Company - Revlon - Helen of Troy - EFX Global - Meyer Corp - KitchenAid - L&N Sales - Lego Systems - L’Oreal Cons. Prod. - Olympus America - Omron - Parfums deCoeur - Plus Mark Inc. - Pyramid Group - Remington Products - Revlon - Rexall Sundown - Salton - Sassy, Inc. - Sony – Syratech Corporation - Whirlpool - Wilson Sporting Goods - Mead Office Products - Aurafin Corporation - Holmes Group - Grosfillex Corporation - Foamex International - Plus Mark Inc. - GPX - Salton At Home - Panasonic Home Products - Libbey Inc. - Rubbermaid - Skyway Luggage Co. - Spectrum Group - Frederick Goldman Inc. - Citizen Watch Co. of America - Mamiye Bros.. Inc. - Sunbeam Corporation - SIRAS.com - Dorel Juvenile Group - Graco Children’s Product - Phillips Van Heusen - Columbia Sportswear - Minolta Corporation - Eidos Interactive - Pennzoil Quaker State - Fisher Price - Leggett & Platt - Lantis Eyewear Corporation - Brother International Group - Harper Leather Goods - Canon Computer Systems - Cleo Inc. - Pacific Rim Import Corporation - Electronic Arts - Savane International Corporation - Samsonite Corporation – Coty US LLC – Bemis Manufacturing – Pillowtex Corporation – Maples Industries- Lego Systems – Hirsh Industries – Quaker Oats/Pepsico – Sega of America – Biederiack of America – The Boppy Company – High Sierra Sport Co. – THQ, Inc. – Nike – Travelpro International – Aroma Housewares Co. – Ameriwood Industries-Lifetime Brands, Inc. Prevent Shipping Errors With Operational and IT Solutions

50. QUESTIONS?