EDI-Enabled Returns 2006

1. EDI-Enabled Returns 2006

2. How returns work today…

3. Retailer (no DC) Publisher/Distributor Pick (Strip) Pack Ship Evaluate by ISBN: NOP, damaged, stickered Retail system Returns pick list Receive Re-sell Orphaned / NOP Pulped Remaindered Publisher systems Accounting dept. Credit claim Key in and reconcile credit claim Key in credit claim Credit back to retailer Dispute Resolution Sell/send back to retailer Not for reproduction

4. Retailer (DC) Publisher/Distributor Pick (Strip) Pack Ship DC Evaluate by ISBN: NOP, Out of Print, etc. Excel file Excel file Evaluate by ISBN: NOP, damaged, stickered Retail system Returns pick list Receive Re-sell Orphaned / NOP Pulped Remaindered Publisher systems Accounting dept. Credit claim Key in and reconcile credit claim Key in credit claim Credit back to retailer Not for reproduction Dispute Resolution Sell/send back to retailer

5. Retailer (any) Publisher/Distributor Pick (Strip) Pack Ship $ DC $ $ $ Evaluate by ISBN: NOP, damaged, stickered Retail system Returns pick list Receive Re-sell Orphaned / NOP Pulped Remaindered Evaluate by ISBN: NOP, Out of Print, etc. Publisher systems Excel file Excel file Accounting dept. Credit claim Key in and reconcile credit claim Key in credit claim Credit back to retailer Not for reproduction $ Dispute Resolution $ Sell/send back to retailer

6. BNC edi returns initiative..

7. Retailer Publisher/Distributor Pick (Strip) Pack Ship Evaluate by ISBN: NOP, damaged, stickered Retail system Returns ASN 856R Returns pick list Receive “What’s in the boxes” Resell Orphaned / NOP Pulped Remaindered EDI Returns Note 180N Publisher systems Evaluate by ISBN: NOP, Out of Print, etc. “Here’s what we plan to return” EDI Returns Auth 180A Return, NOP, Too Late/OP, Remainder in Place, Divert to Pulp If RiP, Partial credit to retailer Accounting dept. EDI Debit Note 810DR Import data and reconcile credit claim Import & reconcile credit EDI Credit Confirm 810CR Dispute Resolution Not for reproduction

8. Retailer Publisher/Distributor Pick (Strip) Pack Ship $ $ If RiP, Partial credit to retailer Evaluate by ISBN: NOP, damaged, stickered Returns ASN 856R Retail system Returns pick list Receive “What’s in the boxes” Resell Orphaned / NOP Pulped Remaindered EDI Returns Note 180N Publisher systems Evaluate by ISBN: NOP, Out of Print, etc. “Here’s what we plan to return” EDI Returns Auth 180A Return, NOP, Too Late/OP, Remainder in Place, Divert to Pulp $ Accounting dept. EDI Debit Note 810DR Import data and reconcile credit claim $ Import & reconcile credit EDI Credit Confirm 810CR $ Not for reproduction $ Dispute Resolution

9. Improve supplier/retailer inventory communication. • Recognize markdown/remainder-in-place sales opportunities. • Reduce physical returns and associated financial processing costs. • Reduce double-handling costs of disputed/refused items. Opportunities

10. Support for markdown/remainder-in-place? • Support for recommendations to maintain inventory levels on selected items? • Support for carton level detail and return exception issues? • System support for EDI financial and physical return processes? Considerations

11. Nothing in these documents alters terms of trade • Goal: efficiency in existing process • But could be a starting point in a larger conversation about how returns work • Collaborate with key retailers, publishers and industry associations to provide a forum to discuss improvements to the returns process Starting the conversation

12. 180N, 180A, 856R, 810DR, 810CR are advanced drafts • 856R and 810DR are in beta development • EDI returns systems overview • Ongoing review by the BNC EDI Committee • Indigo implementation 2006 • BNC will work with independents’ POS systems CanadianSchedule