Onboarding

Key Requirements

Overview

These key requirements and activities apply only to Domestic Supplier Direct Fulfillment (SDF) merchandising Vendors where the Vendor has ownership of inventory and fulfills through the dot-com channel directly to Best Buy customers. This does not apply to Core (where Best Buy takes ownership of inventory and fulfills through the brick & mortar channel) Vendors.

SDF Vendor set-ups take about 4 weeks longer than Core Vendor set-ups due to the wait required to obtain a Best Buy UPS account number.

Some steps occur in conjunction with other steps. Please review this entire section to ensure that the correct people on your teams are involved and aware.

All activities must be complete prior to sale of product.

Key Requirements & Activities (1-17) below.

1. Best Buy’s Values and Initiatives

Diversity
If you are a certified Diverse Supplier, please provide the name of the organization you are certified with the Best Buy Category Lead or Merchandising Analyst.

Responsible Sourcing
Provide a vendor contact who deals with product sourcing to the Category Lead or Merchandising Analyst. A survey will be sent to the vendor contact provided.

Internet of Things (Interconnectivity and Customer Data)
This information is important to Best Buy. Vendors will be asked about this during SKU set-up if their products access the internet or mobile networks independently, through attachments, or other devices or systems.

2. Requirements to Accept

To become a Domestic SDF merchandising Vendor that provides products or services for resale to Best Buy dotcom customers, SDF Vendors are required to accept the following:

1. Establish a relationship with Rithum (formerly CommerceHub) for Electronic Data Exchange – For purchase orders and invoices
2. EFT (Electronic Funds Transfer through repayment solutions) – System that Best Buy uses to pay invoices, deduct payables, and wire transfers
3. PDM (Product Data Management) – System that Best Buy uses for SKU and content set-up
4. Sign up for a BBY UPS account number for shipments to BBY dotcom customers

3. Onboarding Process Kickoff

Best Buy Category Team kicks off the Vendor onboarding process. To begin, the main contact for the Vendor will be the Best Buy Category Lead or Merchandising Analyst (unless otherwise noted).

4. Vendor Set-Up Form (Online)

Vendor must provide the following when filling out the online Vendor Set-Up Form:

1. An auto-generated email is sent to the Vendor with a temporary link, ID, and password to fill out their company information. These temporary credentials are only valid for 3 weeks.
2. Legal Company Information – Found on W9 (US Vendor)/W8-BEN (non-US Vendor)
   • Legal company name, address, legal entity type, DBA, parent company
   • Legal entity country that Vendor is organized under
   • Doing Business As (DBA), subsidiary, brand name.
3. Other Addresses & Information
   • Correspondence, payment, EDI, return address, contact name, email address, phone, fax
4. Global Location Number (GLN) - Provides a standard means to identify legal entities, trading parties and locations to support the requirements of electronic commerce Each GLN is unique and cannot be used by other companies.
   • If Vendor does not have a GLN, they can create a GLN with GS1.
     • GS1 Email
     • Tel: (609)620-0200
5. Financial Information
   • Provide bank name, address, contact name, email, phone number & fax number
   • Audit firm, 2-3 trade references (credit references) & company URL
   • Dunn & Bradstreet (D&B) number
6. Return to Carrier Information. Fill out the correct information on where to ship back product. This is NOT related to how your customer return program with Best Buy will be executed.

5. VMA (Vendor Master Agreement)

Sign Best Buy’s VMA (Vendor Master Agreement) where applicable
The VMA is the legal agreement between the Vendor and Best Buy which defines operational and legal terms required to do business with Best Buy. It is signed at the company level and covers all Master and Department Vendor numbers (and associated Vendor Program Agreements) set up for a particular business entity. The VMA document is non-negotiable with Vendor partners and should be signed as is. The Best Buy Category Lead or Merchandising Analyst will email this to the Vendor. If you are a current SDF Vendor at Best Buy, and your new set-up is in the same department, you will not need to sign another Best Buy VMA. Your Category Team member will let you know if this document is needed.

Note: VMAs do not have an expiry date and will last as long as the relationship exists or until expressly terminated by a party.

6. COI (Certificate of Insurance)

Provide a copy of the company’s COI (Certificate of Insurance)
The Vendor needs to provide commercial general liability insurance. The required insurance level of $2M/$5M/$10M will vary based on the product type. If you are a current SDF Vendor at Best Buy and your new set-up is in the same department, you may not need to provide another COI.  Your Category Team member will communicate if this document is needed. The Best Buy Category Lead or Merchant Analyst will email the Vendor Insurance Standards to the Vendor.

7. VPA (Vendor Program Agreement)

Sign Best Buy agreement electronically for VPA (Vendor Program Agreement)
The VPA is an addendum to the VMA that is negotiated between the Category Team and Vendor. It defines applicable business terms such as payment and freight terms, discounts, returns, and key Vendor funding components provided by the Vendor. VPAs usually span two (2) fiscal years and are negotiated every two (2) years for every Department-Vendor-Class combination.

Freight Terms are expected to be “Collect”. Best Buy will share the freight allowance need with the Vendor that will be captured in the VPA. 

Vendor electronically signs agreements via DocuSign.

For questions about Collect Transportation, contact Parcel Shipping.

8. Rithum (formerly CommerceHub) Set-Up

Before receiving the first purchase order, a connection must be tested and in production through Rithum, the third-party Order Stream platform required to be utilized by all SDF Vendors at Best Buy. SDF Vendors do not utilize EDI through Best Buy directly. They contract with Rithum to obtain access to Best Buy’s Network. If you are a current SDF Vendor at Best Buy and your new set-up is in the same department, you may not need another connection at Rithum. Your Category Team member will communicate if a new connection is needed.

A Best Buy Vendor Number (assigned by Supplier Add Change Team) is required before the Rithum connection to Best Buy’s Network can go live.

SDF Policies and Procedures with Rithum for more information

Please contact Rithum for questions related to Rithum:

• Daily Inventory feed (EDI 846 or equivalent)
• Purchase Order (EDI 850 or equivalent)
• Ship Notification (EDI 856 or equivalent)
• Invoice (EDI 810 or equivalent)

9. Transportation Information

SDF Vendor Onboarding will take 6-8 weeks to set up due to a 4-week processing time for the Best Buy UPS account number and due to the Vendor requirement to supply a test shipping label to the Parcel Transportation Team. If you are a current SDF Vendor with a current Best Buy UPS shipping account number, you are still required to fill out the Shipping Request Form and supply test labels for each warehouse.

All SDF Vendors are required to utilize Best Buy’s UPS account number to ship their products to dotcom customers. (Processing time: 4 weeks) The freight terms will be Collect. Please fill out the Shipping Form in the “Next Steps for Partnership” email ASAP, as this step often causes onboarding to stall. For questions about Collect Transportation, contact Parcel Shipping.

• Fulfill (pick, pack, and ship) products directly to BestBuy.com customers in individual unit quantities
• Ship and send ship confirmation within two (2) business days from receipt of an SDF PO
• Include BestBuy.com branded shipping labels that conform to Best Buy’s branding standards with all shipments
• Maintain on-hand inventory to support web demand; managing inventory is a cooperative process with the Supplier being responsible for staying in-stock
• Receive customer-returned goods back in bulk (under an open RA) or negotiate DFI allowance to cover returns

The only exception to this is for SDF Vendors who have products that are Best Buy Home Delivery (BBHD) and have Freight as Prepaid in the Best Buy VPA. In this situation, the US DDC Inbound Shipping Guide contains shipping guidelines for SDF BBHD Vendors using their own shipping accounts. SDF BBHD can be either Freight Prepaid (Vendor utilizes their own shipping account) or Collect.

10. Best Buy Vendor Supplier ID

When complete, a Best Buy Vendor Supplier ID number will be generated and emailed to the Vendor.

You will need a Vendor Supplier ID number and Vendor Security Administrator (VSA) to complete activities 11 – 17.

11. Assign Vendor Security Admin

Vendor is required to assign a Vendor Security Administrator (VSA) in Vendor Identity. At the end of the Vendor set-up process, Vendor will receive a Welcome Email with the Vendor numbers and steps on how to request a Vendor Security Admin (VSA). More information is available here or by contacting Partner Support.

The VSA is responsible for managing:

• Application access (within Vendor Identity)
• Granting/removing user access
• Performing scheduled security audits
• Updating company information
• Communicating Best Buy news and updates to the appropriate Vendor contacts

A VSA may grant users access to the following applications (among others):

• Product Data Management (PDM)
• Icertis Contract Management (ICM)
• Partner Portal

12. SKU Set-Up

Product Data Management (PDM) provides visibility to Best Buy's data requirements and in-system validations. It offers a streamlined approach, allowing Vendors to create and update item information for SKUs sold to Best Buy. The Merchandising Analyst will work with PDM Team and Vendor to make sure this step is complete.

Once a Vendor number is generated (and the onboarding is complete), the VSA (Vendor Security Admin) will need to assign themselves PDM access, along with any of their users.

• Training information - PDM Getting Started Guide, Product Data and Content Page, and Book PDM Office Hours for assistance.
  • Partner Portal Login required for the above pages

Please Contact:

• VSA or Partner Support for PDM access questions.
• PDM Business Support for PDM usage questions.

13. Shipping Requirements

Vendor is required to:

1. Review the SDF Program shipping requirements
2. Review Program, Policies & Procedures for Supplier Direct Fulfillment (SDF)
3. Support Best Buy’s pre-determined SDF carriers
4. Process ship speed upgrades where the customer has paid for this service (indicated on PO)
5. Set freight billing up directly to Best Buy with Best Buy as the shipper of record
6. Package orders to withstand individual shipment to the customer (may require over-boxing)

14. AP Visibility

Vendor must obtain access to the AP Visibility Tool.

AP Visibility is a third-party entity and the required tool for viewing the status of Vendor account(s) and disputes. It includes access to paid and unpaid invoices, deduction details, open receipts, returns information, and online forms for disputes and inquiries, along with visibility to dispute statuses.

If a Vendor does not have a login for the AP Visibility tool, he/she must contact their AP Visibility VSA or AccountsPayable@bestbuy.com to request access. Note: AP Visibility VSA and Partner Portal VSA are not necessarily the same person.

15. Partner Portal

Vendor must obtain access to the Partner Portal.

Best Buy Partner Portal is a one-stop shop for all Best Buy supplier policies, guidelines, and support. General user access is available to everyone, but logins are not available until after Vendor set-up concludes and a supplier number is assigned.

To request Partner Portal access for additional users, contact your Partner Portal Vendor Security Admin (VSA) or Partner Support.

Note: Monthly VSA sessions are hosted by the Partner Support team to answer questions and introduce the Partner Portal.

16. Team Contact Follow Up

Follow up with your Team Contact (the one receiving onboarding emails initiated by the Best Buy Category Team.)

• Review tasks and timeline for completion
• Include all your team contacts in the conversation (sales, supply chain/logistics, transportation, Rithum, etc.)

17 Fiscal Year Calendar

Best Buy Fiscal Year Calendar

Vendor Set-Up Form Resources

1. Help logging in & submitting the Vendor Set-Up Form on the Partner Portal
   • Can't log in?
   • Issues clearing your cache?
   • Does your login or password have an extra space at the end?
   • Session timing out?
2. Step by step guide and an explanation of the Vendor Set-Up Form

Still having trouble? Contact Partner Support.

Next Steps for Partnership Documents

The documents linked below are those that vendors receive in the Best Buy “Next Steps for Partnership Email” during the onboarding process. These documents are intended to help vendors better understand Rithum (formerly CommerceHub) and the SDF program agreements.

• Rithum Introduction
• Policies & Procedures with Rithum