In this article, learn about:
Determining event participation with Kohl’s
Communication during busy seasons
Managing deductions and proactive communication
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As cooler seasons and holidays begin their approach in North America (with Lunar New Year not long after), suppliers should be aware of holidays and irregular ordering's impact on operations. This is particularly true when working with Kohl’s, as they utilize informal systems and operations during seasonal events. We’ve outlined some ways you can identify event-related orders, how to prepare for them, and general tips and tricks for Kohl’s suppliers.
Related Reading: How to Prepare for Irregular Ordering
Identifying Kohl's Event-Related Orders
Kohl’s is unique compared to other large retailers in that it rarely confirms directly if a supplier’s product is included in their sales events. This requires suppliers to do a bit of sleuthing and reading between the lines to determine participation.
We recommend looking for the following clues in their communications:
1. Requests for Quotes (RFQs)
When formal pricing requests come in, pay close attention to the details. The following could be clues for an upcoming seasonal event.
Changes in the total units and the flow of units Kohl’s expects over time.
They might include special packaging or label requirements, such as promotional tags or display preparation.
Kohl’s might set lower margin goals, which can indicate a large event where suppliers are expected to take a smaller profit.
They may include requests for advertising or markdown support from suppliers, either during or after the event.
2. Special Display Requests
Sometimes, Kohl’s may request PDQs (an industry term meaning Pretty Darn Quick). These preloaded display trays/bins are strong indicators of an event and are funded and supplied by vendors.
Related Reading: What is PDQ (Pretty Darn Quick)?
3. Assortment Requests
Kohl’s may make an assortment request. These bundles of different items are shipped together so stores receive a variety of product, and may be a strong signal that the order is tied to an event.
General Communications
For large, chain-wide events like holiday promotions, Kohl’s corporate office may send general emails, followed by Buyers requesting specific bids. We recommend making sure all company contact info is up to date and attached to a regularly monitored inbox.
Kohl’s occasionally holds matchmaker events where suppliers pitch products directly to the retailer. These events come through K-link or directly from a Buyer. Reaching out proactively can support communication about these events.
Kohl’s utilizes a sourcing team for vertical suppliers (those who own their full supply chain). Early alerts can come directly through these team members, so again, proactive communication about seasonal events can be beneficial.
We recommend confirming all cost assumptions in writing with the Buyer and documenting that costs are tied to the stated requirements. Reconfirm pricing if requirements change, such as packaging, assortments, or volumes.
Navigating Shipping and Logistics for Kohl's Events
It’s important to be aware of atypical or event-specific requirements to avoid fees, delays, and extra administrative work. Kohl’s outlines some of these scenarios in their vendor portal.
Event-related shipments often come with specific challenges and requirements, and Kohl’s suppliers should be aware of a few key details.
Shipment Characteristics
Event shipments are primarily made in full assortments, so that stores receive a small set of unique items. If assortment pricing was requested for a quote, that can be considered a soft indicator for event shipping.
Since events with Kohl’s often include PDQs, suppliers should be aware this greatly impacts shipping complexity and costs, due to increased space and careful handling needs. This makes profit margins lower.
Masterpacking (DC Order Consolidation)
Kohl’s requires suppliers to utilize masterpacking for PO and/or bulk orders that are too small to meet minimum carton size and weight requirements. This occurs at the distribution center level.
This program requires approval from Kohl’s, so when utilizing masterpacking, we recommend getting this approval in writing.
Ensure the Bill of Lading (BOL) reflects the total number of master cartons and is indicated with “EFC MASTER PACK.”
Master cartons must be labeled with a GS1-128 carton label that includes "MASTER PACK" in place of the SSCC-18 barcode.
Each inner pack within a master carton must still be individually GS1-128 labeled.
It should be noted that this consolidation method does not apply to Kohl’s direct important private brands or landed POs. Full shipping and packaging requirements can be found here.
Careful packaging and labeling is crucial when it comes to masterpacking. Masterpacking can sometimes result in miscommunications that lead to perceived shortages or mis-ships if the labeling and receiving processes are not perfect.
Related Reading: Kohl’s Invoicing and AP Deductions Guide
Managing Non-Standard Assets in K-Link
It is paramount that suppliers update new assets in Kohl’s vendor portal, K-Link, when new or non-standard inventory is added for an event.
Navigate to the asset maintenance section in K-link to add new imagery or updates for legacy items already live on Kohls.com. These styles were created prior to the K-link system with no merchant group, so they don't affect any new Kohl's suppliers.
There is a separate, distinct process for marketing imagery. Kohl’s marketing images are product or lifestyle images for marketing channels, not Kohls.com product pages. Suppliers should not use this functionality until specifically cleared to do so from a corporate email address with due dates included.
Communication & PO Timelines
Kohl’s does always offer clear communication on shipping timelines, and POs are frequently late. Some suppliers have reported POs being months behind, which can delay US shipping. We recommend proactive communication with Buyers as much as possible, and if applicable, your sourcing team.
Holiday Logistics Challenges
As a Kohl’s supplier, significant logistical challenges can occur during peak holiday shipping. Kohl’s vendors should be aware of the following:
During seasonal events it is normal for Kohl's to not have enough trucks on-hand to deal with increased shipping needs
Expect missed pickups, late arrivals, or trucks arriving on the wrong day.
Increased compliance fines can occur for the above.
To counter this, we recommend proactively escalating these fines directly to the Buyers to have them waived. Suppliers should also consider hiring extra staff at any domestic distribution centers to handle last-minute trucking issues and avoid delays.
Inventory Management
Kohl's inventory management can be a logistical challenge, with some suppliers experiencing over- or under-ordering. This can result in markdowns and higher product returns.
Managing Payments and Deductions for Irregularities
Suppliers should keep a close eye on invoicing and payment reconciliation. Irregular ordering can be complex, and suppliers can accidentally be charged fees for issues that occurred at the retail level.
To keep an eye on this and protect your profits, suppliers should keep a close eye on the following:
Matching Payment Documents: Make sure the PO, invoice, and verified receipts all match. This will help avoid discrepancies that invoke fees.
Payment for Items: Kohl’s prevents automatic payments for items that don’t match an existing PO or exceed the ordered quantity. Vendors are required to invoice for the full item cost as specified on the Kohl’s PO, so be aware that any unaccounted shipments can lead to extra handling charges.
Split Shipment Fees: If a shipment is split, Kohl’s policy is to pay the original invoice in full if a shipment is split. However, a shortage deduction will be applied for any items not yet delivered. Once the remaining units arrive, Kohl’s reconciles them against the shortage invoice. At that point, the supplier receives payment for the balance, and Kohl’s issues a credit offset in a later payment cycle. This is a long and laborious process that delays vendor payment.
New Store Discounts: Kohl's applies "new store discounts" to items on POs that were shipped to a new store. Deductions for a "NEW STORE DISCOUNT NOT ON INVOICE/PO" may appear. Suffixes like NSD (New Store Discount) are frequently added to invoices, deductions, or payment transactions, indicating special handling.
Handling Charges: Kohl's reserves the right to assess handling charges for various discrepancies, including sending duplicate invoices, other issues that impede Kohl’s ability to process vendor invoices, and requests for copies of documentation that have already been provided.
Shortage and Cost Price Deductions: Deductions for shortages and cost price differences may occur when there are deviations from expected order fulfillment and pricing.
General Proactive Measures
Given the complexities mentioned above, we advise Kohl's suppliers to expect a high level of proactivity. Stay on top of communications, confirm all cost assumptions in writing, and build in extra flexibility for shipping and production. Preparing for potential delays, expecting last-minute changes, and avoiding preventable errors is important to keep in mind when working with this retailer.
Let SupplyPike Dig Into the Details
Kohl’s deductions can be complex. Partnering with SupplyPike reduces guesswork and helps put time back in your day, and money back in your company’s wallet.