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VENDOR SUPPLY CHAIN REQUIREMENTS MANUAL

-2-Last updated: 2/27/2018

Welcome 3

About this Manual 4

Overview 5

Purpose and Objectives 6

There’s No Place Like…HSN 7

Standards of Conduct 8

Escalation and Key Contacts 10

Cost of Doing Business 11

TABLE OF CONTENTS


WELCOME

It’s simple…right? When all is said and done, all our efforts, our time and our resources can be

pared down to one single objective: creating a positive customer experience. Whether she buys

online at HSN.com, is enticed by our 24/7 HSNtv broadcast or is drawn in from one of our dynamic

off-network campaigns, our customer wants the same sense of excitement, intrigue and delight—

before, during and after the point of sale. Making this happen, day in and day out, demands strong

vendor partnerships.

At HSN, we are, in every way, defined by the company we keep. Our vendor partnerships

are made evident to more than 90 million viewers on a daily basis, and we are intricately bound to

each and every brand we champion. Likewise, every new vendor partnership adds a new world of

excitement and opportunity to our own brand. We are extremely proud of our vendor…and we work

hard to present each and every one of their brands in the highest light to our customer. To help us

in that endeavor, we have established these tried-and-true requirements meant to ensure that our

customer gets a consistently positive experience throughout the entire process. Our potential for

collective success increases exponentially when we work closely with our vendors to consistently

meet the standards outlined in this manual.

We are proud to offer you the Supply Chain manual and are certain it will prove useful as you

begin—and continue—your partnership with HSN. We invite you to make the most of every tool

and guide outlined in every section. You’ll find that doing so is the fastest path to a successful,

meaningful and beneficial experience at HSN.

Welcome to HSN!


ABOUT THIS MANUAL

Getting The Most Out of This Guide

Each of the 8 sections in this manual is individually tabbed and offers a table of contents, a statement of objectives and a stated purpose. This allows you to gain an understanding of what is offered in each without having to scan every page. It also allows you to quickly reference each section individually if you are seeking specific information.

The manual is intended to walk you through the process systematically, in the same natural succession you will experience as you bring your products to market with us. We have also included contacts at the bottom of each Purpose and Objectives page to provide further assistance as needed.


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& labeling

product

information

quality

assuranceoverview product

samples

purchase

orderscompliance

• Intro to HSN

• Standards of Conduct

• Escalation and Key Contacts

HERE’S WHERE YOU ARE


PURPOSE & OBJECTIVES

Our Purpose

Your success and HSN’s depends heavily on creating a solid foundation of understanding and mutual

respect. The Overview section of this manual is intended to give you the best possible introduction to our

people, our processes and our policies.

Here are a few things to keep in mind as you get started:

• Read carefully through the entire Supply Chain

Manual…this will give you a detailed picture of

what to expect every step of the way.

• Pay close attention to the standards of conduct

outlined in this manual…it’s how we promote

teamwork, cooperation and respect.

• In the unforeseen event you have an issue, use

this manual to determine the correct process and

protocols in seeking a resolution…this will ensure

that the show, process and partnership are

successful, even if issues arise.

How This Section is Outlined

We’re excited you’re here and want to provide you with

every tool you need to succeed from the very start. To

achieve this, we have carefully outlined a number of

opportunities, guidelines and materials designed to

acquaint you with our general policies and procedures.

1. Intro to HSN: a brief glimpse at our company, our history, our other vendors and, most

importantly, our customer

2. Standards of Conduct: the standard to which we hold ourselves and our vendors

3. Escalation and Key Contacts: provides a preordained process for resolving issues and finding

the best possible contact should the unforeseen be seen

• Get to know your Buyer and Buying team - they will be your central point of contact as you work with

HSN

• Any general questions about this manual, your vendor partnership with HSN or our policies can be

directed to [email protected]

Key Contacts As You Get Started

Here are some tips on finding the right people for each aspect of your partnership with HSN:

mailto:[email protected]


THERE’S NO PLACE LIKE… HSN

HSN has a strong and effective infrastructure

Nashville, TennesseeCall Center

All agents work from home

Average headcount: 200 St. Petersburg, FloridaHeadquarters and Call Center

HSN owned

64,000 sq. ft. call center: 635 seats

Average headcount: 825 w/500 working from home

Roanoke, VirginiaCall Center

Average headcount: 300 primarily working from home

Piney Flats, TennesseeFulfillment Center

967,000 sq. ft.

Average capacity: 70%

Home, Beauty, VitaminsFulfillment Centers

Primary Call Centers

Fontana, California

Fulfillment

482,000 sq. ft.


Home, Beauty, Vitamins

West Omaha, NebraskaOutsourced pool of up to 1,500 agents used to augment our sales staff as dictated by show forecasts. Average headcount: 185

Roanoke, VAFulfillment Center

356,000 sq. ft.


Jewelry, Apparel, Accessories

HSN Fulfillment Centers

HSN Call Centers

• Four primary call centers

• 47 million calls (2009)

• 80% of sales calls answered within 20 seconds (2009)

• Three fulfillment centers

• 34 million units internally fulfilled (2007)

• Multipack capabilities in softlines and jewelry

• More than 99% of packages delivered within 10 days


STANDARDS OF CONDUCT

Definition of Business Associates

“Business associates” includes, but is not limited to: manufacturers, distributors, vendors,

suppliers, on-air talent, guests, consultants, independent contractors and customers who conduct

business with HSN or participate in HSN-sponsored events or business trips, as well as their

representatives, associates, employees and family members.

Expectation of Respectful Interactions

All employees and business associates are expected to show respect, honesty, integrity,

consideration, cooperation and sound professional judgment when interacting with each other. All

employees and business associates of HSN shall refrain from verbal, written or physical actions

that others might find offensive or disrespectful and that might create a hostile work environment.

This includes, but is not limited to actions (verbal or non-verbal):

At HSN, we are committed to promoting a spirit of teamwork, cooperation and mutual respect

among all of our employees and business associates. To achieve this goal, we expect all

employees and business associates to show respect for each other and for HSN’s policies and

procedures. HSN firmly supports these expectations and will make every effort to ensure their

implementation.

• That could be found to be demeaning (even if delivered in a “kidding” or joking fashion)

• That are delivered in a loud, abusive or agitated tone

• That are directed at another's age, pregnancy, family status, medical status, sex, sexual

orientation, race, religion, national origin, disability or perceived disability, physical appearance

or any other protected class status

• That include off-color language, slurs or swearing

• That interfere with others’ abilities to perform their work

All parties are expected to remember that, while their actions (verbal or non-verbal) may not be

intended to be harmful, the effects can be detrimental to a successful and productive working

relationship.


Expectation of Respect For HSN Policies and Procedures

All employees and business associates are expected to respect and abide by all of HSN’s

practices, HSN’s policies (including but not limited to HSN’s “Sexual and Other Harassment” policy

and “Workplace Violence Prevention Statement”) and HSN’s Standard Operating Procedures.

Employees and business associates should remember that a primary purpose of HSN’s policies,

practices and procedures is to ensure that our customers receive quality service consistently, thus,

our mutual success depends in part on our adherence to these policies, practices and procedures.

Responsive Action

Employees and business associates are expected to act directly and promptly to resolve issues.

STANDARDS OF CONDUCT (CONT’D)

• Should an employee have a concern regarding the process to follow he/she should contact

his/her supervisor.

• Should an employee feel that they have not been treated respectfully, he/she should voice that

concern to his/her supervisor or HR business partner.

• Should a business associate have a concern, he/she should voice that concern to his/her HSN

contact.

HSN takes every concern seriously and will make every attempt to provide prompt, effective

resolution.


ESCALATION & KEY CONTACTS

Most Of The Time…

…your best point of contact is your Buyer. They own and manage your business relationship with

HSN, and he or she decides the best course of action to take in each situation. In the event they

cannot handle the issue or answer your question on the spot, they will direct you to an appropriate

contact in another department. You can also reference the appendix of this manual for a detailed

listing of specific contacts for each department and category.

If an Issue Arises While You’re Onsite For a Live Show…

…the Production Assistant (PA) is the best point of contact. The PA is well versed in handling a

variety of issues and can escalate to the appropriate party as needed.

We Are Committed…

…to doing everything reasonable to address any issues in a timely and mutually satisfactory

manner. Depending on the circumstances and timing of events, resolution may not be feasible

before a scheduled show. In these cases, we ask that you join us in supporting the live show first,

knowing we will work together toward further resolution of the issue after the broadcast.

Accountability

Our intent is to track and report both positive and negative feedback. Should you feel frustrated

that you don’t have recourse to get an issue resolved, you should notify the PA of the issue; they

will facilitate reporting it. You may also contact Vendor Relations at the following address:

[email protected].

Just as we look for every opportunity to create a positive customer experience, we also pride ourselves

on ensuring our vendors’ experiences are as positive, productive and meaningful as possible. In an

effort to further promote a mutually respectful environment at HSN, we ask that our vendors follow the

below process for resolving any issues or complaints.

mailto:[email protected]


Cost of Doing Business

As part of HSN’s goal to foster our mutual success, there are specific areas whereby vendors are required to

support the costs of doing business with HSN. The following paragraphs highlight those areas.

COST OF DOING BUSINESS

Dunn & Bradstreet Financial Review

HSN is focused on acquiring products and services from vendors that share our commitment to quality, innovation,

sustainability, and customer satisfaction. As a result, the following registration process has been developed to

support this effort as a part of our Vendor Pre-Approval and Evaluation Process.

During the On-Boarding Process, Vendor Pre-Approval allows vendors to register their company profile with HSN.

This process will provide HSN’s Supply Chain Organization, and others involved in the procurement process, with

access to your business profile and capabilities for continued business evaluation and consideration for potential

sourcing events.

The HSN Legal team will provide you with an authorization code that will grant you access to the Vendor Pre-

Approval site. In order to register, all companies must have a D&B D-U-N-S® Number. If you are not sure of your

D-U-N-S® Number, you will be prompted to search for an existing D-U-N-S® Number assignment. If you do not

have a D-U-N-S® Number, you will be provided with instructions on how to obtain one.

Once your registration has been completed, our Accounting team will be in contact with your company if there are

questions regarding your profile. Please note that registrations via the Vendor Pre-Approval portal should not be

considered as a guarantee of new or continued business.

The cost for registration is $350 for a new user, and $150 per year for registration renewal for each subsequent

year.

Sample Discount Policy

One of HSN’s key strategies is to be the leader in transactional innovation using content to drive both community

and commerce. We are focused on creating a seamless experience across every platform... From HSNtv to

HSN.com to mobile.

This requires a significant investment in the presentation and positioning of brands to create images that reflect a

more compelling lifestyle experience. We believe that both HSN and our vendors benefit from this investment.

In order to help offset the growing costs associated with these efforts, we have instituted a discount for show room

samples. To find out your discount percentage, please contact your merchandising team.

If product is returned to you, the merchandise will be sent back at the cost we received it. For example, product

from our HSN warehouses will be returned at full cost. The samples returned from show room will be returned at

the discounted cost.


COST OF DOING BUSINESS (CONT’D)

Transformation Allowance Policy

HSN has implemented a multi-year strategy that will require significant investments in customer, technology and

infrastructure.

In the history of HSN, we have not embarked on such major multi-dimensional and transformative initiatives that will

drive commerce as we are in the following 5 key areas of the business:

• A comprehensive digital redesign across all our platforms. Phase 1 launched in early January

2013. HSN.com, mobile and tablet applications have created an entirely new shopping experience for our

customers and uniquely combine content, community and commerce in a way that has not been seen

before in the digital landscape

• Our first enterprise-wide external marketing campaign, created by Deutsch Advertising, will be launching in

2013 and will focus on awareness and customer acquisition

• An expansion of our entertainment integration strategy, live events and games platform

• In partnership with IBM, a four-year system transformation of our core business processes and systems

supporting merchandising, planning, marketing and sales and service activities

• A modernization and efficiency transformation of our fulfillment processes

These strategic initiatives will have a measurable impact on deepening the relationships with our existing

customers and on extending our reach into the boundaryless world of direct-to-consumer retail, allowing us to be

more competitive in the market.

To help support these efforts that will have a beneficial effect on all our vendors, we have implemented a

“transformation allowance” that will be deducted from all purchase Orders (POs). This will appear on invoicing as

“Platform Funding”.

This allowance will help to elevate these efforts and allow us to move quickly to make the necessary investments to

insure we can compete and succeed in the future.

Jewelry Refurbishment and Restocking

In the ongoing effort to minimize costs both to HSN and our suppliers, customer returns for jewelry product are

internally re-worked by HSN. In order to cover these costs, a $0.15 per unit surcharge on every item purchased is

deducted from each invoice.

Non-Compliance

HSN reserves the right to implement costs for failure to comply with our set Vendor Performance Standards. To

review the policies for compliance, as well as a fee schedule for failure to comply with these guidelines, please view

the Compliance section of the Supply Chain Manual: Click Here.

https://view.hsn.net/WebDocuments/documents/8-Compliance.pdf