In this article, learn about:
Getting started with the Ulta supplier portal
Tips for compliant shipping at Ulta
Compliance goals best practices
Managing compliance fines
Becoming and remaining a best-in-class supplier for any retailer involves understanding every step along the way. Good suppliers can meet the demands of their customers' orders, shipping on time and in full, while also staying compliant with every process of the business interaction.
For new Ulta vendors looking to get started on the right foot, there are many initiatives that should be taken early on to work towards efficiently fulfilling orders and growing your business.
Getting Started with the Supplier Portal
New Ulta suppliers should familiarize themselves with the Ulta Supplier Portal. This is the main hub for all things related to the supply chain for Ulta suppliers. Here, suppliers can find:
Training documents
Their performance scorecard
Weekly sales reports
Chargebacks/deductions reports
Monthly order projections
And much more!
The supplier portal has a lot of documents that will be helpful to suppliers in the Document Library and the Training Documents tabs. While onboarding, it’s important to set time aside for learning as much as you can in these libraries. It’s also important for new suppliers to familiarize themselves with the Supply Chain Guide for specific compliance-related policies and programs.
New suppliers should click the Need to Register button if they do not already have login credentials. From there, after filling out the necessary information and submitting, you will be prompted to start the onboarding process via email.
The Tableau Scorecard
Every week on Monday, Ulta updates the supplier scorecard through Tableau, which also lives in the supplier portal. This scorecard shows performance across these metrics:
Original and Revised Fill Rate %
Shortages and Overages
On Time %
ASN Compliance
GS1 Label Compliance
Lead Time
PO level detail
The scorecard is essential for keeping up to date with your compliance performance.
EDI Setup and Compliance
Ulta suppliers are required to set up EDI as a prerequisite to business practices. This can be done through a third party, like SPS Commerce, or through Ulta’s preferred partner, OpenText.
It’s good to think of EDI not as a one-time setup procedure, but as the vehicle for communication between business partners. As such, it is important to keep your EDI provider in the know of all changes as they come up. For more information on compliant EDI practices in Ulta, check out our article EDI Requirements for Ulta Beauty Vendors.
Item Information and Updates in the Supplier Portal
A key part of remaining compliant at Ulta is establishing clear communication about item details with the retailer. Ulta utilizes the Product Information Management (PIM) Portal for inputting and updating item information, but it can also be accessed through the Ulta Supplier Portal.
This portal is used for:
Item Setup
Item Updates
Item Deactivation
Web Enrichment
Master Data Management
If Ulta has not reached out to you already regarding item setup, send an email to the Item Master Data team at MDSM@Ulta.com.
Item data is important for all aspects of being a supplier. A misplaced item data point can lead to revenue loss in the form of deductions, compliance fines, and lost sales. Furthermore, good rich data at the item level can enhance online sales through Ulta. Compliance with these protocols can go a long way to improving your bottom line.
Tips for Compliant Shipping at Ulta
When it comes to compliance with Ulta, shipping is the focal point. Meeting or failing to meet shipping standards at any retailer can make or break your bottom line.
At Ulta, all POs must have a 100% fill rate and go to the DC designated on the Requested Delivery Date (RDD) or Requested Ship Date (RSD). Any failure to ship on time or in full will likely result in a fine.
Ulta reserves the right to withhold payment for over-shipped items. Any over-shipping (overages) on a PO will also result in a chargeback, making suppliers lose revenue on the items themselves and on their compliance scores.
PO Requirements for Ulta
Some shipping errors are referred to as PO errors, even when it may have more to do with the meat and bones of the shipping process than anything wrong with the PO or the processing of a PO.
For example, Ulta considers on time shipping as part of their PO requirements. From the supplier’s perspective, this may seem more like a shipping requirement than a PO requirement, but it is important to see this as a part of Ulta’s vision for their POs as well.
POs for Prepaid suppliers will contain a Requested Delivery Date (RDD) that is determined as the “Ship Date + Pre-set transit time in calendar days, unless that day falls on a weekend or holiday.”
POs for Collect suppliers will contain a Requested Ship Date (RSD) that is defined as the “PO Submission date + pick/pack calendar days.”
Ulta suppliers are required to inform the retailer if a PO cannot be filled with 100% line item quantity within 2 business days of the PO transmission. Fill Rate Compliance is determined by the ability to fill the PO based on the Original PO line quantity, unless a change is made within the 2 business days.
Sometimes a PO will include a Cancel Date. This is the last day that a PO can be shipped before it is considered canceled. It is calculated by taking the “RDD + # of days chosen by Ulta Beauty Inventory and Buying teams”.
Related Reading: How to Prepare LTL Shipments for Ulta Beauty Compliance
Compliance Goals, Fines, and Best Practices
Ulta calculates their compliance fines based on the description in their Supply Chain Guide. These are broken down into six major compliance categories:
Shipping Accuracy (EDI ASN 856): This measures “the ability to successfully receive against the vendor provided ASN.”
PO Acknowledgement (EDI 855 POA Receipt): This measures the “successful receipt of EDI 855 within 2 business days of the EDI 850 PO transmission.”
Revised Fill Rate: This measures “the last PO QTY change successfully received within 2 business days of the EDI 850 PO transmission.”
Inbound Delivery: This measures the “percent of POs received on time per PO requirement.”
GS1-128 Labelling: This measures the “GS1-128 Pallet and Carton Label compliance” by infraction.
EDI 810 Invoice: This measures the “EDI 810 invoice compliance.”
Within each of these metrics, there are 4 tiers of performance from 0-3, with Tier 0 being the highest level of compliance and Tier 4 being the lowest.
Tier 0 = 98-100% compliance
Tier 1 = 95-97.9% compliance
Tier 2 = 90-94.9% compliance
Tier 3 = 89.9% compliance and below
Each of these tiers and compliance metrics come with their own fine structure outlined in the Supply Chain Guide:
| Compliance Metric | Metric Description | Metric Fee Type | Performance Tier 0 (98%-100%) | Performance Tier 1 (95%-97.9%) | Performance Tier 2 (90%-94.9%) | Performance Tier 3 (89.9% and below) |
|---|---|---|---|---|---|---|
| Shipping Accuracy (EDI ASN 856) | Measures the ability to successfully receive against Vendor provided ASN | Weight | $0 | $0.01 per units manually rec'd Min $75 | $0.02 per units manually rec'd Min $150 | $0.04 per units manually rec'd Min $300 |
| PO Acknowledgement (EDI 855 POA Receipt) | Measures successful receipt of EDI 855 within 2 business days of 850 transmission | Flat | $0 | $100 Per PO | $200 Per PO | $400 Per PO |
| Revised Fill Rate | Measures the last PO QTY change successfully received within 2 business days of 850 transmission | Weight | $0 | 1% of COGs short/ over Min $100 | 2% of COGs short/ over Min $200 | 4% of COGs short/ over Min $400 |
| Inbound Delivery | Measures percent of PO's received on time per PO requirement | Flat | $0 | $100 Per PO | $200 Per PO | $400 Per PO |
| GS1-128 Labeling | Measures GS1-128 Pallet & Carton Label Compliance | Flat | $0 | $100 Per Infraction | $200 Per Infraction | $400 Per Infraction |
| EDI 810 Invoice | Measures EDI 810 Invoice Compliance | Flat | $0 | $50 Per PO | $50 Per PO | $50 Per PO |
All of the compliance fines at Ulta come with a flat fee, except for Shipping Accuracy and Revised Fill Rate, which are measured by the non-compliant units or the cost of goods. This fining structure is pretty standard relative to other retailers in the industry.
Related Reading: Ulta's Chargeback Program Explained
These fines should not to be confused with the Shipment Non-Compliance Fees also listed in the Supply Chain Guide. Those are more specific to the shipment process, and they contain charge categories like Split Loads (POs), Freight Class, EDI Non-Compliance, and more.
Compliance Best Practices for Ulta Suppliers
Anything that breaks Ulta’s guidelines for suppliers can result in at least one fine, so familiarizing yourself with those policies is a good place to start.
The key to staying compliant with Ulta is to keep a single source of truth for the whole lifecycle of an order, from the PO to the packaging and shipping. Some good practices for executing this are:
Keep a close eye on POs, making sure that each order can be met within 2 days of its being sent. If not, request a PO revision.
Keep a good connection with your EDI provider going into your Ulta business. Always make sure that changes in one place are reflected across all of your B2B communications.
Keep your packaging, palleting, and labelling practices standard across your orders so that when something goes wrong it can be identified quickly.
Perform root cause analysis for any and all compliance fines, correcting the issues at their source to avoid future revenue loss.
Keep good records of all of your shipping processes, so that proof documentation is readily available when you want to file a dispute.
Suppliers who hit their compliance goals and regularly stay above 98% compliance across the major metrics do better in sales and keep their relationship with Ulta strong, allowing for more growth and continued mutual success.
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