VENDOR POLICY MANUAL

(Revised March 12, 2015)

Updates are highlighted in yellow:
Page 2, 14, 15, 16, 18, 43, 44, 45, 56, 57, 59

PRIVILEGED and CONFIDENTIAL:

Property of The William Carter Company. Intended for use by the recipient only in conjuction with their
association with The William Carter Company exclusively.

TABLE OF CONTENTS
FOREWORD4
INTRODUCTION

A. Company Background ................................................................................ 5

B. Vendor Relationship... ... ................................................................. 5
C. Vendor Agreements ........... ................................................................. 5
PRODUCT DEVELOPMENT PROCESS

A. Product Planning ......................................................................................... 6

B. Procedures for Sourced Product Development ......................................... 6-11
PRODUCTION APPROVAL PROCESS

A. Procedures for Pre-Production Approval ................................................ 12-15

B. Sample Size Requirements ......................................................................... 16
C. Payment for Required Sample Quantities .............................................. 17-20
1. Sample Costs to be Absorbed by the Factory .................................. 17
2. Sample Costs to be Paid by Carters .......................................... 17-18
3. Routing for Salesman Samples .................................................. 18-19
4. Sample Warning Label and 2 Inch Cut ........................................... 20
QUALITY ASSURANCE STANDARDS
A. Testing Requirements and Procedures .................................................. 21-23
1. Submission Procedures ............................................................. 21-22
2. Exceptions to Garment Fabric Testing ............................................ 23
B. Defect Classification .................................................................................. 23
C. Measurement Methods.......................................................................... 23-24
D. Point of Sale Appearance / Packing Requirements ..................................... 24
E. Inspection Procedures and Audit Reports ............................................. 25-26
1. In-line Inspections .......................................................................... 25
2. Final Inspections ............................................................................ 25
3. Packaging Inspections .................................................................... 25
F. Return to Vendor Policy (Rejects and Seconds) ...................................... 27-28

PURCHASING

A. Standard Purchase Order Agreement ......................................................... 29

1. Forward Purchase Order Agreement ............................................... 29

B. Concealed Shortages .................................................................................. 29
C. Document Issues ....................................................................................... 29
D. Invoices and Claims...30

PACKING AND SHIPPING

A. Finished Goods Packaging .................................................................... 31-33

B. Freight Forwarder ................................................................................ 34-35
C. Labeling for Shipping..35
1

1. Preprinted Cartons / Case Labels35

2. ESPS/TLO....35
D. Container Loading ................................................................................ 36-40
E. Shipping Guidelines and Documentation .............................................. 41-48
1. Shipping Documents ................................................................. 41-42
2. DHL Procedures43-44
3. C-TPAT46-48
4. Prepaid Air Freight Policy Statement..49

ADDITIONAL NOTES
A.
B.
C.
D.
E.
F.
G.
H.

Needle Policy .............................................................................................. 50

Grippers Used for Denim Styles........50
Heat Sealed Appliqus and Thermal Transfers ........................................... 50
Two- Piece Sets Pricing for Purchase Order and Commercial Invoice .. 50-51
Prohibiting Method of Chemically Sealed Ribbon Edges ............................. 51
Unauthorized Manufacturing / Selling of Carters Labeled Goods .............. 51
Special Instructions ................................................................................... 51
Safety ................................................................................................... 51-52

JOY REQUIREMENTS .52

CHILD OF MINE REQUIREMENTS
A. Color Process and Procedures53-54
1. Color Terminology..53
2. Color Procedures & Restrictions53
3. Color Submit Forms..54
B. Wal*Mart Packing and Shipping Requirements..55-58
1. Master Carton Sizes (for both Walmart & Target)..56
2. JOY/COM P.O. Fulfilment Policy56-57
3. Carton Identification and Marking57
4. Packing Requirements58-59
Page 60 Vendor Confirmation Page. All agent offices and vendors must sign this page
acknowledging receipt of the manual, and return to the Sourcing Business Manager.

EXHIBITS
1. Vendor Policy and Social Compliance Programs
2. Vendor Profile
3. Garment Specification Sheet
4. Checklist for Sourced Programs
5. PDMHTMA How to Measure Guide
6. Avery Dennison Global Contact List
7. Color Development Guide
8. Consignee & Notify Info
9. Quality Specifications and Standards
10. Single and Multiple Sampling Plans
11. Standard Speed and Stitch Chart
12. Sourcing Tag
13. Vendor Set-up Form for PO Issuance
14. Purchase Order Terms and Conditions
15. Carton Label Placement & Markings
16. Business Rules Care Labels & Hang Tags
17. & 17A. Full Package Import Documentations Template Instructions for Carters and
OshKosh / Customs and Payment Process
18. & 18A. Full Package Documentation Guide for Carters and OshKosh
19. C-TPAT Letter and Security Profile
20. Packing List Form for Carters and OshKosh
21. Freight Forwarder Global Contact Listing
22. Sleepwear Sales Samples Warning Label
23. SAMPLE ORDER carton sticker
24. Shipment Failure Notification Form
25. Swiftach Needle Detail
26. Approved Nominated Suppliers
27. Heat Seal Appliques & Thermal Transfers
28. Graphic Loop Label
29. Single Knot
30. Bow Attachment
31. Carton Standards for Sams/Costco Product
32. JOY Sample Requirements
33. Perforated Polybag
34. Sample Warning label
35. Container Inspection form
36. Null
37. Child of Mine Standards & Production Color Process
38. Child of Mine Submittal Form for Color Swatches
39. Null
40. Wal*Mart/Sams Club Hanger Manual & Sizer Tab Manual
41. Approval Process for Garment Fit and Construction
42. Folded garment polybag picture
43. Forward Purchase Order Agreement
44. FPO Example
45. Child of Mine Carton Marking
46. & 46A ISF Manual Templates

FOREWORD
Welcome on board to the number one childrens company - Carters! We are excited to be joining
with you to provide high quality products with superior service to our customers.
This Vendor Operations Manual is provided to you as an outline of the policies and procedures of
the William Carter Company. It will provide you with an overview of Carters and direct you on how
we can work together to develop and implement full package programs on behalf of The William
Carter Company.
We are looking forward to building a productive and mutually beneficial relationship with you.

INTRODUCTION
A. Company Background
The William Carter Company was born in 1865, when William Carter began manufacturing mens
and womens cardigan jackets and underwear. However, by the turn of the century, he ventured
into the childrens market by making cotton mittens. This venture was a springboard into
becoming one of the best known names in the childrens industry.
Today, Carters is a marketer of childrens lifestyle products for ages 0-7 years.
Carters markets under the brand names JOY (Just One You), COM (Child of Mine), and OshKosh.
Carters strives to conduct business and develop partnerships with those who share our values and
our vision. As we expand our resource base, we will only engage suppliers whose practices are
compatible with our corporate vision.

B. Vendor Relationship
We value vendor relationships at Carters. It is our belief that together with our vendors we well
build a partnership based on trust and mutual respect. The policies and procedures outlined in
this manual will provide you with direction ultimately supporting the foundation of this
partnership.
Carters encourages visits to and from our vendors. We will visit your facilities on a regular basis to
learn how we can improve this business relationship. We encourage our vendors to visit our
facilities so that they may better understand our operations thus developing a better understanding
of product expectations.
C. Vendor Agreements
Prior to beginning business with Carters we will visit your facilities to evaluate facility security,
factory personnel, production, equipment and overall product quality. A factory must rate on a
weighted average a minimum of three (3) on a scale of one(1) to five (5) in order to be a supplier
with us. Once the factory has been approved, we require the principal owner of the factory to sign
the Social Compliance Policy, also known as our Code of Conduct, acknowledging that the
supplier understands and will abide by the terms and conditions set forth. The vendor must also
complete and sign the Vendor Profile. See Exhibits 1 and 2.

PRODUCT DEVELOPMENT PROCESS

A.

PRODUCT PLANNING

Our development process is typically separated into two seasons Spring and Fall. Spring
is produced August-February and Fall is produced March through August.
The Sourcing department provides specification packages for all sourced programs. These
will be forwarded to the potential vendor for costing and preliminary prototypes.
Preliminary forecasted quantities and delivery schedules will be provided at this time also.
Please note that projected quantities are forecasts only. Actual Purchase Order quantities
may vary significantly from initial forecasts.
Commitment to actual production runs will not be made until much later in the process
after all fabric and sample development has been completed. The brand-merchandising
calendar and the respective Sourcing Manager will direct the production planning process
for each program.
Please see Exhibit 41 Approval Process for Garment Fit &
Construction.
B.

PROCEDURES FOR SOURCED PRODUCT DEVELOPMENT

Following is a list of steps which will need to be completed in order to move on to the
Production Approval Process. Completion of each step in an accurate and timely manner
will result in a smooth transition into production. A checklist indicating each step should
be supplied to the Vendor. See Exhibit 4. If any of the below changes, we will notify you
in writing.

Fabric Development Testing & Submitting On all new fabric developments

that are being submitted to Carters for internal testing, we are now requiring
that the mills internal testing/specs be attached to the test yardage. This is
to ensure that the mill is sending in fabrics that they have tested themselves
and are comfortable with the results.
On all fabrics that will be used for bottoms we are now requiring that seam
strength be tested in the development stage along with tensile and tear
strength. It will be the vendors/mill responsibility to supply the specimens
for MTL testing. This is to ensure that any garments slated to have pockets
will pass before we get to the garment testing stage.

Initial Prototype/Counter/Fit Sample - Initial sample produced based on initial

specs provided. See Exhibit 3 for example of specification sheet. Samples should
be tagged with a sample tag. The agent/vendor should inspect the garment and
include a measurement sheet with the sample. NOTE: Prototype/Fit sample must
be approved before producing size sets.

Market Samples- Samples are to be as close to actual production as possible as

these are the samples that we present to major customers.
Lab Dips of Fabric - All shade submissions for color will be assessed visually as
well as electronically by a Color Spectrophotometer.
Therefore, all lab dips
submitted should be a minimum of 4 x 4 squares to ensure an accurate reading.
(See Exhibit 7 for Lab dip form).
6

Fabric Testing All development and bulk fabrics must be submitted to MTL labs
to ensure quality and conformance to standards.

Trim Testing Carters requires that all trim components be tested by MTL to
ensure compliance to United States Safety Regulations. We will allow trims
produced by our nominated suppliers to be excluded from component testing
because we require a pre-production sample be tested in garment form. The
exclusion of pre-testing the components (from our nominated suppliers) does not
diminish the burden of responsibility that all trims pass MTL testing. The purpose
of this exclusion is to reduce the expense of testing costs for our partner vendors.
See Exhibit 26 for a listing of our nominated suppliers.

Decorations (if applicable) - Must be submitted for approval.

Main/Care Labels - Must be ordered through Avery Dennison, Intertrend SML, SSI,
or Quantum. Main/Care labels do not qualify as a small part that should be
tested.
See address and contacts below for main/care label approved suppliers:
1.

Avery Dennison Please see Exhibit 6.

2.

Intertrend Global Packaging Co., Ltd.

Contact:
Patrick Ngeow
Email:
Patrick_n@intertrendglobal.com
Tel#/Fax#:
(662) 672-3030 / (662) 672-3033
889 Thai CC Tower, Rm 150, 15th Floor
South Sathorn Road, Sathorn
Bangkok 10120, Thailand

3.

SML
Contact:
Steve Sweat (Sales Director Southeast Reguion
Email:
stevesweat@sml.com
Tel#:
(678)393-6122
740 Sweetbrier Drive, Suite 1200
Alpharetta, GA 30004 USA

4.

Sourcing Solutions International (SSI)

Contact#1:
Robert Schlossberg
Email:
raschlossberg@ss-intl.com
Tel#/Fax#:
(973)514-1400 x203 / (973)574-1422
325 Columbia Turnpike,Suite 201
Florham Park, NJ 07932 USA
Contact#2:
Joanna King
Email:
joannakong@ss-intl.com
Tel#:
(852)29957024

5.

Quantum
Contact:
Nickie Yaun
Email:
nickie.yaun@quantumpkg.com
Tel#/Fax#:
(336)643-1381
6094 Clopton Drive
Greensboro, NC 27455 USA

Main Label Content Carters requires the following information on all labels
(CAR, CXP, jOY, WAL, OSH):

Logo
Size
COO
Snug fitting (Sleepwear Only)

Care Label Content Carters requires the following information on all labels:
1.
2.
3.
4.
5.
6.
7.

Style
Item Number
Size
Content
Exclusive of Decoration if applicable
RN# and CA#
Care/Wash instructions* - can be found in eS_S by typing in Tag* and selecting
the season. All must be in both English, Spanish, and French. MTL or BV must
test against these standards.
8. VID
9. BPU (FR) US styles only
10. UPC Number
11. Number of Pieces if applicable.
12. DPCI or Article # - (JOY only)
13. CRD

*Notice: Non-standard fabrics will require use of non-standard wording and

therefore the wording will change. This wording is NOT approved for all
fabrics/garments.
If denim or neon, this additional verbiage is required in English, Spanish, and
French:
COLOR MAY TRANSFER WHEN NEW
WASH WITH LIKE COLORS
If Velcro, please note the Velcro wash instructions for the care label. This is
required in English, Spanish, and French:
CLOSE COLLAR BEFORE WASH

Carters will issue a PO and UPC file for all bulk orders, at the PO level, 90
days prior to xfactory for labels. Factories are responsible for approving
labels per the current business rules.

Notice: UPC# is required on all care labels. If a product set includes a Toy, then the toy MUST
have a UPC as well.

Hangtags(Ktags) Due to the complexity of our UPC coding system, Carters

will issue a PO and UPC file for all bulk orders, at the PO level, 90 days prior to
CRD/xfactory for hangtags. Hangtags must be ordered through Avery Dennison,
Intertrend, SSI, SML, or Quantum. The vendor will forward a Proforma Invoice
to the vendor listed on the notification, confirming quantity and cost. It is the
vendors responsibility to verify all quantities and details on the Proforma
Invoice. The vendor is responsible for all costs and payments associated with
printing and shipping the tags. Once all payments and terms are settled, the
vendor will arrange shipping the tags to the appointed destination. Upon
receipt of the Tags, the vendor should check actual received quantities
against the packing list to ensure all tags and quantities are correct. The
vendor has 72hrs or 3 business days to identify discrepancies.
If the
shortage or discrepancy is not identified and claimed within the two-week
period, replacement tags will be the responsibility of the vendor. See page 7 for
contact information on 5 nominated suppliers.

Tagless Heat Transfer Labels Carters offers tagless neck labels in most
garments. The neck of the garment requires a heat transfer that identifies
the standard labeling information as required by the FTC . In addition to the
tagless neck label, each garment will require a satin side seam care instruction
label.

*** Please see Exhibit 16 for the Care Label & Hang Tag business rules.

Barcode / UPC Testing: Although the ktag supplier, such as Avery, will scan
the ktags / u-stickers before shipping to the vendor, Carters recommends that
each factory verify UPC code readability. This should be done using a standard
barcode verifier. Listed below are a few web-sites that barcode products can be
purchased:
www.barcodeproducts.com
www.printronix.com
www.bar-code.com
www.barcodeserv.com

Tracking Labels: Care labels were changed to make room for the tracking
numbers to be added to them, with no need for a separate label for the tracking
numbers.
The format is as follows for all bulk merchandise:
Style Number
PO# Date
Ex:

123-123
12345 0210

The date is the month and year with no slash or dash in between. This date
comes from the CRD date on the Purchase Order. So if the CRD date is
02/05/2010, then the date on the label will appear as 0210.
9

See below sample picture to follow:

Bulk Spring 2010 & forward

*** Please note: All samples must have a tracking label on them. The label
format is as follows for all samples:
The word SAMPLES
SeasonYear (Single letter for the season and the 4 digit year)
Ex:

SAMPLES
F2010

Hangers: Our approved suppliers for hangers are listed on the nominated
supplier listing. Hangers do not have to be sent in for approval. Vendors
should always refer back to the BOM for the correct hanger code to use for
each style. See Exhibit 26 for a complete list of approved hanger suppliers
and their contact information.

Swiftach Barbs: We specify the size of the swiftach to be used on our

products. For the lengths, see the BOMs, but for type and width:
Needle, Mark II, Fine Fabric, Avery Dennison Product
Outside needle diameter (OD) = .052" (1.3mm)
Inside needle diameter (ID) = .034" (0.9mm)
Swiftach Fine Fabric
Barb material = Polypropylene 0.22gms each
Barb Tensile strength = 3.5 to 5 Lbs.
Barb (opposite paddle)
Length = 0.29" (7.4mm)
Outside diameter (OD) = 0.030" (0.8mm)
** Swiftachs must not extend more than to below the garment sleeve
opening unless specified differently in the hangcode. The closer to , the
better.
*** All Hangtag placement guidelines can be found in the e-Product Development
module of eSPS by typing in HANGFOLDA for Carters and OSH-HNG for
OshKosh.
10

The needle from the swiftach gun is never supposed to leave a hole in the fabric.

Fine fabric needles must be used and needles must be changed frequently in the
factory to ensure that needles do not leave holes in the fabrics. See Exhibit 25.

Salesman Samples - Upon adoption of a style, salesmen samples will be

requested.
These must be in the requested size, colors, designs and
decorations. Depending on the requirement, the sample size may vary.
Orders are raised for these samples and the manufacturer is paid the agreed
contract price times 2 for their production.
QA will no longer press, measure, test or comment on Salesman Samples.

Other Garment Trim Items When reviewing the BOM, some styles may
require additional trim items such as a graphic Loop Label. Please note that
there is a 5/8 seam allowance on a graphic loop label. The long seam
allowance is so the same label can be used for merrow (3-thread over-lock)
(knit) and safetystitch (woven) seam applications. See Exhibit 28.

Thread specifications See the Q/A manual in eSPS for all details.

Trims accountability
In order to prevent counterfeit Carters merchandise, we ask that all unused Carters main
labels or logo trims be held in a secure area. Periodically, either a Carters employee or a
Carters representative will ask to see the trims and verify inventory count and control. If
future use is not practical, then we will ask that the obsolete trims be verified and
destroyed. See Exhibit 26 for a listing of our nominated suppliers.

11

PRODUCTION APPROVAL PROCESS

A.

PROCEDURES FOR PRE-PRODUCTION APPROVALS

Before production may begin, the following steps must be submitted and approved by
Global Sourcing:

Lab Dips of Bulk fabric - lab dips must be submitted for approval.
Submissions must be at least 4 x 4 squares and will be visually and
electronically assessed by our Internal Color Lab. See Exhibit 7 for submit
form and all related details. Lab dips should be used to determine dyeing
formulas. Lab dips are not to be used as color standards.
Please also note Exhibit 7 for instructions on the Production Color Approval
Process. This is for Carter and JOY product only.

Bulk Dyelots/dye bands/wash standards Submits must be 12 x 12

squares. For garments with special washes, the piece must include a seam
and a hem of the garment. Also requires MTL testing. See Exhibit 7.

Bulk Trim and Findings - Must be submitted for approval before proceeding
with placing orders. Also requires MTL testing.

Decorations - Samples should be submitted in actual colors/fabrics for

approval before proceeding with production.

Bulk Fabric for Quality Approval - Bulk fabric will be required for lab
testing and evaluation. Each Vendor is to submit one yard (full width) of any
color and yard (full width) in all colors to an MTL Laboratory. See the
Testing Requirements and Procedures Manual for the procedures and nearest
location. This is located in eSPS under Company Information.

All garment samples should be accompanied by a Sourcing Tag. Please see

Exhibit 12 for the appropriate layout (front & back).

Prototype/Counter/Fit Sample must be submitted and approved before

producing size set samples. This may require multiple submits. See page
16 for sample size requirement.

Size Set Samples (1 Set) IMPORTANT: Size sets are only required if the
Patternmaker requests them. Sourcing will notify the agent/factory if
any are needed. If Size Sets are needed, they are to be submitted after the
Prototype/Counter/Fit sample is approved. A sample of each size will be
requested to assess accuracy of the patterns. Only 1 set of size set samples
is required for all styles sharing the same body and fabric. All applicable
style #s should be listed on the sample tag. These should be made with
actual fabric, unless otherwise directed by Sourcing. Samples should have
appropriate decorations (or mock-up w/ copies or substitutes) to confirm
correct placement. Samples will be inspected by a Product Coordinator,
Patternmaker and Designer. Factory should always use the approved size set
patterns for bulk production.

12

PPs (Pre-Production Samples): Pre-Production samples in every style and

once per season must be submitted for approval 10 days prior to cutting
fabric. Samples must be of the actual design using approved fabrics and
trims/decoration. Ideally, these should be 100% correct. If a trim is not
available at the time, the vendor will be allowed to send a full description and
picture of the correct trim along with the PP sample. Quality may require a
corrected PP once the item has been received.
Size ranges or packing methods produced under different style numbers will
not require a separate submit unless requested. Multiple style numbers for
an item must meet the following criteria in order to submit only one
representative sample:

garments must be made of same fabric and color

garments must use the same hardware and trims (size may vary)
garments must use the same art application (size may vary)

The garments can differ in body size, art size and trim/hardware size and
still considered the same style. All same styles must be listed on a tag
attached to the sample. The vendor will have to submit the smallest size
range or sample size of the group of styles. Vendors are not required to
submit one set of samples per purchase order.
In some instances, Sourcing will require that PPs are complete and no
substitutions or pictures will be accepted, or will require a picture that shows
how the garment was packed.
PPs will be reviewed for everything other than fit, and Quality might require
a new set of samples if the garments received do not meet the above
requirements.
The PP quantities and process flow may vary between
divisions, so please contact the appropriate Sourcing team for all
requirements.
Quality will issue comments 3-4 business days from the moment they receive
samples.

TOPS (Top of Production Samples): Samples from the top of production

from the 1st shipment must be sent to Sourcing department for review as
soon as bulk production comes off the production line. These garments will
be reviewed for overall appearance.
Size ranges or packing methods produced under different style numbers will
not require a separate submit unless requested. Multiple style numbers for
an item must meet the following criteria in order to submit only one
representative sample:
garments must be made of same fabric and color
garments must use the same hardware and trims (size may vary)
garments must use the same art application (size may vary)
The garments can differ in body size, art size and trim/hardware size and
still considered the same style. All same styles must be listed on a tag
attached to the sample. The vendor will have to submit the smallest size
13

range or sample size of the group of styles. Vendors are not required to
submit one set of samples per purchase order.
The factory is obligated to have a garment test performed by BV and pass all
same requirements for bulk before shipping order. If approval is not received
before crd date, factory will require an approval from Sourcing before
shipping. The TOP quantities and process flow may vary between divisions,
so please refer to the attached chart for requirements. Quality will not
require TOP samples, so they will randomly audit bulk garments from
shipments arriving at the distribution centers. The product will be evaluated
to ensure conformity to quality standards.

Shipping of PP/TOP Samples:

Carters Baby, Playclothes, Sleepwear and COM/JOY PP Samples
will be shipped to Carters Buckhead office in Atlanta, GA.
Oshkosh BGosh Baby, Sleepwear and Denim PP Samples will be
shipped to Carters Buckhead office in Atlanta, GA.
Oshkosh BGosh Playclothes PP Samples (including denim) will be
shipped 1pc to Carters Buckhead office in Atlanta, GA and 1pc
directly to Quality in Griffin, GA.
All samples must have an attached warning label. This label can be done inhouse at the factory, and it must contain the information we are requiring.
The label must read in RED INK only. The label placement should be at the
back of the neck for a top. And for a bottom, it should be applied at the back
of the pant next to the main label/care label. Please see Exhibit 34 for a
picture. And see page 18 of this manual for more information about this
label.
Garments will be placed in an organized manner for easy identification and
the box should include a paper with the list of styles. The DHL paperwork
will include the word Carters Samples OR Oshkosh Samples in the
reference field. Each shipment should follow-up an e-mail with tracking
number and description of the samples shipped. DHL costs for sample
garments from bulk that do not meet quality specifications sent to get special
approval, will have to be paid by the vendor.
Samples should be shipped in the standard carton sizes 23.5 x 15 x 13 OR
23.5 x 15 x 6.5. If needed, its okay to use the DHL standard size boxes to
prevent shipping half full cartons. Samples should be packed to utilize
carton space to ship the least amount of cartons as possible.
The Commercial Invoice must have the following phrase added to it in order to
take advantage of the duty free provision for samples:
Mutilated Samples 9811.00.60

14

The DHL Account# for shipping Carter samples to Georgia is 967882398.

The DHL Account# for shipping Oshkosh samples to Georgia is 967882455.
*** For more detailed instructions, please refer to the DHL Procedures on
pages 42-44.

15

B.

SAMPLE SIZE REQUIREMENT

The following identifies the accepted sizes for each sample submit by division.
Carters Sample Size Recap:

Sample Type
Market Samples
Sales Samples
Proto Samples
Fit Samples
Pre-Production
Samples
PMS
Production Sample
Distro
****Pre-Production
Samples
TOP Sample to
Phipps/ATL (FR
Testing)
Total Production
Samples

Baby
6M
6M/9M**
6M
6M

PW Sets
6M
12M/3T
3T
12M/3T

PW 4-8
Sets
5
5
7

6M
6M

12M/3T*
-

5
-

Baby

PW

SW

PW
Separates
12M*/3T
12M/3T/5
3T
12M/3T/7

PW
Dresse
s
3T
3T/5
3T
3T/7

SW
12M/3T*/5
12M/3T/5
3T
12M/3T/10

SW
Gown
SW UW
4/5
4/5
4/5
4/5

12M*/3T/5*
-

3T/5*
-

18M***/3T/5*
12M/5*

4/5
-

* Sample Received ONLY if Unique Creative

** 9M for Wholesale Accounts ONLY (Majors)
*** Sleepwear: PP Samples 18M 1pc ONLY

Oshkosh Sample Size Recap:

Sample Type
Proto Samples
Market Samples
Sales Samples
Fit Samples
Pre-Production Samples

OBG Layette

OBG PW

OBG SW

6M

As Needed*

6M
6M/12M
6M
6M

12M/3T/5
12M/3T/5/6
12M/***3T/5
12M/3T/5

12M/3T/6
12M/3T/6
12M/6/***3T
12M/6

* One garment per silhouette in the target size range. Can be either 12M, 3T or 5.
** Only for silhouettes that have only 2T-5T orders. All other silhouettes can be approved through
development of the 4-12 size range unless a sample is requested.
*** By request only. Toddler size range can be approved through development of the 4-12 size
range unless a sample is requested.

For Sample Size requirements for JOY and COM, please reference their Handbooks
located in eSPS Company Information.

Sleepwear Sales Samples Sleepwear sales samples are to have a separate

warning label. See Exhibit 22.
*** The appropriate Sourcing team will advise details for any special
programs or special sample requests.
16

C.

GUIDELINES FOR REQUIRED SAMPLE QUANTITIES

The guidelines set forth below are intended to clearly differentiate the various types of
product samples, the required quantity by sample type, and to specify who is responsible
for payment of the cost of the sample.
1. SAMPLE COSTS TO BE ABSORBED BY THE FACTORY

Development/Counter Samples: provided along with cost quotes.

Prototype Samples or Fit Samples

Samples made once the order is confirmed, using similar fabrics, to be used
as first fit samples. Weight deviation allowed within five percent (5%) of bulk
fabric. One (1) sample per size range or style number. Additional submit
may be requested if fit does not represent a starting point for the correct
measurements.

Lab Dips and Trim Approvals

All submits of color swatches, trims, labels, and packaging accessories sent
to obtain approval for production

Size Set Samples

These are the next samples made after the proto has been fit approved or fit
comments given. The size set sample should represent all sizes on spec
unless otherwise requested. Weight deviation allowed within five percent (5%)
of bulk fabric. One (1) of each size per style. PLEASE NOTE these are
only needed if requested by the Patternmaker.

Pre-Production Sample
Units submitted prior to bulk production to represent actual design of
garment. Sample is of correct fabric, trims, and decorations. All artwork and
placement should be 100% accurate.

Top of Production Sample (TOPS)

Units pulled from the production line to submit for garment QC and Lab
testing.

2. SAMPLE COSTS TO BE PAID BY CARTERS/OSHKOSH

Market Samples
Carters will pay for all requested market samples at two (2) times the FOB
cost. All transportation costs for these samples will be paid by Carters.
Your Sourcing team will advise the number of market samples needed at the
beginning of each season. All market samples are to be sent to the Buckhead
office.

Salesman Samples
Carters will pay for all requested salesman samples at two (2) times the FOB
cost. These invoices will be handled as normal commercial shipments. The
amount of Salesman Samples needed for each division is different and
17

changes often between seasons. Your Sourcing team will advise the amount
needed at the beginning of each season.
3. ROUTING FOR SALESMAN/DESIGN SAMPLES & MARKET SAMPLES ONLY
Market and Salesman samples should ship to the appropriate location based
on the division requirements. All samples that ship to the Atlanta or New
York office should ship via DHL Express.
All samples must have an attached warning label. This label can be done inhouse at the factory, and it must contain the information we are requiring.
The label must read in RED INK only. The label placement should be at the
back of the neck for a top. And for a bottom, it should be applied at the back
of the pant next to the main label/care label. Please see Exhibit 34 for a
picture. And see page 20 of this manual for more information about this
label.
For Carter Salesman samples that are shipped directly to Braselton DC 12,
with a total shipment weight of 50k(110lbs) or less, these should be shipped
via DHL with account # 967882398. The reference Carters Samples
should be included in the reference field on the airway bill. Each single
carton must NOT exceed 30 lbs. For shipments over 50k (110lbs), these
should ship via an approved air forwarder (just as air shipments of bulk
merchandise).
For Oshkosh Salesman samples that are shipped directly to Braselton DC
12, with a total shipment weight of 50k(110lbs) or less, these should be
shipped via DHL with account # 967882455. The reference Oshkosh
Samples should be included in the reference field on the airway bill. Each
single carton must NOT exceed 30 lbs. For shipments over 50k (110lbs),
these should ship via an approved air forwarder (just as air shipments of
bulk merchandise).
Carters/OshKosh will pay for all requested salesman/market samples at 2
times the FCA cost. All transportation costs for these samples will be paid by
Carters per the noted DHL account#s.
Please remember to place the SAMPLE ORDER adhesive label on each
carton that contains salesman samples. See Exhibit 23.
Samples should be shipped in the standard carton sizes 23.5 x 15 x 13 OR 23.5 x
15 x 6.5. If needed, its okay to use the DHL standard size boxes to prevent
shipping half full cartons. Samples should be packed to utilize carton space to ship
the least amount of cartons as possible.
The Commercial Invoice must have the following phrase added to it in order to
take advantage of the duty free provision for samples:
Mutilated Samples 9811.00.60
GOODS MUST BE CONSIGNED TO The William Carter Company.
*CONSIGNEES IDENTIFICATION NO. FOR CUSTOMS PURPOSES = 0029270139
(For inbound freight that must clear USCS)
18

*** Please refer to the DHL procedures on page 43 for more information.
PLEASE SHIP SALESMAN AND MARKET SAMPLES AS INDICATED BELOW. THE
AMOUNT VARIES PER EACH DIVISION. INSTRUCTIONS WILL BE ADVISED BY THE
SOURCING TEAMS.

Please send xx amount of salesman and market samples to:

Carters, Inc. (for Carter and Oshkosh product)
Suite 1800
3438 Peachtree Road
Atlanta, GA 30326 USA
Attn: Appropriate Sourcing person
Please send xx amount of salesman samples only to:
Name of division: (Carters OR Oshkosh)
Distribution Center
DC# 12
625 Braselton Parkway
(Door 355) Samples Area
Braselton, GA 30517
Tel# 762-232-1119
Attn: Anita Moody
Reference field: Carters Samples OR Oshkosh Samples
Always remember to identify the Style # on the Sourcing Tag for each salesman
sample.

**When samples are ready to be shipped to Braselton, GA DC #12, an

email should be sent to the appropriate Sourcing team with a
spreadsheet detailing the styles & quantities shipping. The following
email
address
should
also
be
included
in
these
emails:
#BraseltonSamples@carters.com

For all JOY (Target) SAMPLE REQUIREMENTS Please reference the JOY
Handbook located in eSPS Company Information.
For all COM (Wal*Mart) SAMPLE REQUIREMENTS Please reference the COM
Handbook located in eSPS Company Information.

19

4. SAMPLE WARNING LABEL AND 2 INCH CUT

ALL samples must have the Sample Warning label attached to them, as well
as have a 2 inch slit in the back of the garment. This must be done to
identify samples which are not from mass/bulk production and therefore,
may not meet all applicable standards and requirements. This would include
any samples which do not have appropriate pass test report(s) / PO# /
tracking label / etc. and/or which are from any stage prior to normal
mass/bulk production, such as Sales/Market samples, Ad Samples, PP
Samples, etc.
The label can be done in-house at the factory, and it must contain the
information we are requiring. The label must read in RED INK only. The
label placement should be at the back of the neck for a top. And for a
bottom, it should be applied at the back of the pant next to the main
label/care label. Please see Exhibit 34 for a picture.
*** Samples may no longer be stamped.

20

QUALITY ASSURANCE STANDARDS

In order to maintain our guarantee of providing quality merchandise to our customers, we
have a strong, proactive Quality Assurance Program. This program is designed to ensure
that our quality standards are met in all the merchandise we offer. Topics within this
Quality Assurance section include:
A.
B.
C.
D.
E.
A.

Testing Requirements and Procedures

Defect Classification
Measurement Methods
Inspection Procedures and Audit Reports
Return to Vendor Policy

TESTING REQUIREMENTS AND PROCEDURES

A representative sample of all colors of bulk fabric and production garments from each
purchase order must be submitted to Bureau Veritas (BV). The Vendor is responsible for
all costs associated with testing fabrics and garments as specified in our Testing
Requirements and Procedures Manual. This manual can be viewed in the Company
Information section of ESPS.
1. SUBMISSION PROCEDURES
There are three sample submissions a vendor must supply:

COLOR
Lab dips should be submitted to Carters. These submits will be reviewed
objectively visually in both daylight and cool white florescent (CWF), and
additionally by a spectrophotometer. Metamerism should be controlled under
both light sources. Currently, Carters is using a Spectroflash 600 SF Plus to
quantify color differences which will help to promote more accurate color
comments. Any lab dips above +/- 0.60 L*a*b must be visually approved by a
Carters Color Lab Representative. Dye lots with a L*a*b reading greater
than +/- 0.80 will not be reviewed. Vendors should not submit dye lots with
a reading greater than 0.80 because it will be automatically rejected. See
Exhibit 7.

FABRIC

All Prototype and bulk fabric will be tested in the quantities as follows:

One yard of any color from bulk production and yard of the remaining
colors way must be sent to Bureau Veritas (BV) for performance testing.

Twelve inch (12) squares from each dye lot/dye band/wash standard are to
be sent to Carters for shade testing and approval. If the product is fleece,
the fabric should be submitted prior to napping process to determine color
shade adherence. See Exhibit 7 for details.

Be advised that trim fabrics should be tested in fabric form to assure

compatibility with body fabric (dye fastness and shrinkage are especially
important). If they are not tested, there is a risk of failing in garment form
21

which, is too late in the process. Non-fabric trims from nominated suppliers
do not have to be tested in trim form but, must be tested as used on the
garment.
BV lab operations performs testing as per Carters requirements, not per the vendors
request. See the Testing Requirements and Procedures Manual in eSPS. It is
imperative that the Vendors understand that they are responsible for the performance of
all fabrics to our established Quality Standards.

GARMENT

Four types of pre-production samples, as well as production samples will be

required per style/program as follows:

Initial Prototype Sample

Counter Sample - If changes on initial sample are necessary.
Size Set Samples (if requested by the Patternmaker).
Pre-Production Samples - These samples should be produced as if they
were actual production. One to be sent for testing to BV labs and the
remaining samples to Carters.

Each sample garment must be properly tagged and identified. Please see Exhibit 12 for
the layout of the Sourcing tag. The following information must be clearly marked/listed on
the tag:

Submit Date
Vendor & Agent Name
Carters Division Name (Baby, Playclothes, Sleepwear, JOY, COM,
Oshkosh)

Style # (List ALL applicable style numbers)

Garment Description
Sample Type (Proto / PrePro / Size Set / TOP / etc)
Size
Color (please list the color code as shown on PO)
Fiber Content & Fabric Type
** If it is a re-submit, please indicate # of submit (2nd, 3rd, etc)
** If it is a shipment sample, please indicate PO#

All of these samples (except the Top of Production samples) must be approved before
production may begin. See the Testing Requirements and Procedures Manual in eSPS.
In addition, we also have standardized stitching requirements. See Exhibit 11.

22

2. EXCEPTIONS TO GARMENT FABRIC TESTING

Normal submit procedures should be followed for garment and fabric testing unless
it meets the following criteria:

If the garment and the test request form are both submitted with and
accompanied by the previous fabric test report, and no further processes
were performed on the garment (such as washing), there is no need to
conduct the physical fabric testing. Only garment-related tests should be
performed.

If the garment is submitted without a previous fabric test report, or if the garment
has been subjected to further processing since fabric testing (such as washing),
then all applicable garment and fabric tests should be performed.
** Refer to the Testing Procedures, Requirements & Vendor Reference Manual in eSPS for all
details.

B.

DEFECT CLASSIFICATION

Defects can be subjective in nature.

Interpretations will vary depending on the
circumstances. Therefore, it is important that the Vendor understands what Carters
considers a defective garment. We have standardized the defects as Class I (major) and
Class II (minor), as noted in Exhibit 9.
As a general rule, if the defect would result in a customer complaint or return, then the
defect is considered major. However, all major and minor defects should be notated on
all audit reports so that an accurate assessment may be made concerning the quality
performance of the manufacturer.
C.

MEASUREMENT METHODS

The following measurement methods have been standardized for ease of measuring .
Measurements which are effected by stylized features will be detailed in the finished
Garments Specifications Forms issued for that individual garment.
Garment measurements are to be taken with the garment flat on the table, without tension
and free from wrinkles or creases. Record the measurement to the nearest 1/8 inch. All
measurements should be taken using either a fiberglass or a inch metal tape measure.
Do not use a cloth tape as this may stretch and distort over prolonged use. Good lighting
is also recommended to achieve accurate results. To ensure accurate measurements are
taken, please follow the garment checklist that is provided.
For all measurement guidelines, please see the How to Measure manual. This manual is
available to view in eSPS. Go to the Product Development module in eSPS and type in
PDMHTMA. See Exhibit 5.
Finish Garment Checklist:
1.
2.

Items of apparel are to be measured individually.

For full length and upper (shirts, jackets, etc.) garment measurements, the
garment should be flat with the bottom of the armholes even.
23

3.

Length measurements for bottom garments

(shorts, pants, etc.) will be
taken from top of garment including waistband, if applicable.
All garment openings will be measured from outside edge unless otherwise
specified.

4.

Extended measurements should be taken in the following manner:

Insert measuring tape inside elastic. Extend garment until fabric is smooth,
without breaking stitches.
Garment should be fully extended without
distortion.

* Please note it may be necessary to take all measurements listed in this manual. The
measurements indicated on the specification sheets should be made by the methods
described here unless otherwise instructed.
* Also refer to the PDMHTM (How to Measure) Guide in eSPS.
D.

POINT OF SALE APPEARANCE/PACKAGING REQUIREMENTS

Below are a few issues of particular importance.
appearance issues.

This list does not include all

Collars must be shaped correctly, lying flat, not flipped up or askew.

Garments have to be straight on the hanger, both shirt shoulder seams along
the line of the hanger. Pants with side seams on the side, not rotated to the front
or back.
Turn ends properly straightened, not drawn up.
Flat seams, not puckered, pleated or stretched. Good looking plackets, front or
back.
Merrow seam hems must not flip up or have deep bites.
Hangers must be correct for the product. No product slipping off the hanger.
Neck labels to the inside, properly centered, not puckered or crooked.
No embroidery hoop marks or prominent wrinkles.

24

E.

INSPECTION PROCEDURES AND AUDIT REPORTS

The production of quality products requires both quantitative testing and qualitative
inspections. Quantitative product and component testing involves the use of a qualified
laboratory such as Carters Corporate Testing Facilities or MTL, as specified in the testing
section of this manual. A qualitative inspection is necessary to be able to control raw
materials, the manufacturing process and the final product. The main objective of
inspection is to detect visible manufacturing defects and any variations from established
standards, to determine their cause and correct the defect, and to improve the
manufacturing process to achieve a higher level of customer satisfaction.
This section is designed to provide manufacturers with insight in applying proven quality
control inspection techniques which control the manufacturing process and improve the
level of outgoing quality. It is the responsibility of the Vendors Quality Assurance
Departments to provide a quality control program that is preventative in nature and
customer oriented. In order to be preventative in nature, it is the Quality Assurance
Departments role to ensure the following:
1.
2.
3.

The Vendors factory capability meets Carters product quality

standards.
The Vendor understands Carters expectations as to performance,
construction and workmanship requirements.
The customer, Carters, receives defect free products on schedule.

To ensure that goods will be received into Carters warehouses without interruption, it is
imperative that only those goods that have passed the in-plant Quality Inspections are
shipped. It is the responsibility of the Vendor to perform and pass quality inspections
prior to shipping finished product. There are three (3) types of factory inspections:
1. In line Inspections
In-line inspections are done at any point during the manufacturing process to
assure that manufacturing procedures are performed correctly and consistently by
operators. Normally these inspections are performed on incoming piece goods and
trims, cut parts after cutting, and during the assembly operation.
2. Final Inspections
Final Inspections are performed on a 100% basis after trimming. Every finished
garment is to be examined for defects related to material, construction,
workmanship, measurements, finishing, labeling, marking, and general appearance.
3. Packaging Inspections
Packaging inspections are performed to assure that the packaging, packing and
markings comply with the established requirements. The areas inspected are
carton markings, polybag markings, carton contents, U-tags (UPC tickets), K-tags
(hangtags) and shipping documentation.

Prior to shipping, all factories are required to perform a final audit for packing and
garment quality according to US Mil. Std. 105E using a 2.5 AQL single sample plan. See
Exhibit 10.
25

Once the factory has passed their audit, the Agent/Carters Direct Sourcing QA is required
to perform a final audit for packing and garment quality according to US Mil. Std. 105E
using a 2.5 AQL double sample plan. See Exhibit 10. (Now known as ANSI/ASQC Z1.41993). This sampling plan is based on the mathematical theory of probability, in that for a
delivery of X amount of garments, you take a sample of Y number of garments and reject
figure Z will be representative of the total delivery. Although we always strive for zero
defects in every delivery, Carters will accept anything which falls within the acceptance
guidelines of AQL 2.5 Level II.
If an audit fails, a general inspection Level II, AQL 2.5, is recommended to validate the
results and to help focus on the nature of the suspected defects. Any rejected lots must be
removed from the shipment and corrected to the satisfaction of management (including
100% re-inspection prior to shipment).
A copy of the results of the audit along with the Inspection Certificate needs to be sent to
your Carters representative prior to shipping. All documentation should be written in
English.
Email to the Quality team qualityaudit@carters.com
Clearly note the following:
Date
Factory Name
Factory ID#
Country of Origin
Garment Style #
Garment Color (name & number)
Purchase Order # / Line#
Lot Size
Sample Size
Total Actual Major Defects
Defect Codes with quantity of each defect
Failure to comply may result in a delay of payment. The sampling for the audits should be
done on a PO-Line number basis. This means that you should pull a representative
sample according to the 2.5 AQL plan for all sizes and colors. If there is a question on how
to proceed with this, please contact your Carters Quality Manager.
Packing/Audits - All goods must be packed and passed final audit five (5) days
prior to the ex-factory date. Partial shipments are not allowed unless previously
authorized in writing by the Sourcing Manager. Time and resources permitting,
it is our desire that the first shipments will be audited by authorized Carters
Personnel. Before this final audit is performed, the Vendor/Agent must present
audit reports documenting that the goods have passed a final plant AQL audit.
The Carters auditors will not perform the final audit unless the
Vendor/Agent has completed their internal audit.

26

F.

RETURN TO VENDOR POLICY (REJECTS and SECONDS)

Seconds and irregulars will not be accepted as part of first quality products. If the
merchandise is not repairable before shipping to a Carters warehouse, then all labels and
branded trims must be removed and disposed of in a responsible manner. The inside
labels should be cut out of the garment or marked through with permanent ink.
These goods may be sold in the local market ONLY. However, the goods must be held
at the factory 6 months prior to disposing of the goods in the local market. They
cannot appear in the US market.
All products received into a Carters 3rd party DC, are subject to quality and packing
audits. If goods are rejected after a packing and/or quality audit at a Carters 3rd party
facility overseas, a SFNF will be issued. It will be up to the factory to 100% inspect goods
at the facility and repair or replace defective garments prior to shipping to the U.S. or an
international account. Goods must be reworked as soon as possible and prior to any
picking and packing the 3rd party DC may have to do.
All products received into a U.S. Carters facility will be subject to quality audits.
(ANSI/ASQC Z1.4-1993, general inspection level II, AQL 2.5). If a Vendor fails a quality
audit at the Carters warehouse, then the failed lots will be subject to reprocessing.
Carters 100% Inspection Findings and Procedures:
Upon shipment failure (See Exhibit 24 for Shipment Failure Notification form),
goods will be sent to a 3rd party rework center for a 100% inspection. Carters will
issue a charge-back for all costs associated with the 100% inspection and/or repair.
The deducted amount will cover the cost of the inspection and administrative fees
associated with doing the inspection.
Once the inspection has been completed, the first quality goods will be received into
inventory. All second & third quality goods will be charged to the Vendor at
one hundred percent (100%) of Landed Duty Paid (LDP) costs. If the vendor
would like the garments returned to them (for large quantities only), and both
parties agree to the return, the Vendor is responsible for accepting all freight and
handling charges to return the defective merchandise. See Vendor Reprocesses
Merchandise below. Otherwise, the garments will be destroyed. A Charge-back
(debit memo) will be sent to the vendor to recover all costs. A chargeback will also
be sent to the agent to recover their fees.
In some cases, goods cannot be returned to the Vendor due to customs and freight
concerns. If feasible, Carters will retain the garments for repair, but recover
reasonable repair costs through a Vendor Charge-back (debit memo). Repairs could
See Third Party Reprocesses
be completed internally or by a third party.
Merchandise below. Reasonable repair costs are identified as the lesser of the total
costs of repairs versus 100% of LDP cost for seconds. In either case, all charges
incurred will be deducted from the Letter of Credit (if not already paid), current
invoice, subsequent invoices, or commissions.

27

Vendor Reprocesses Merchandise:

The defected lots may be returned to the vendor for reprocessing. The vendor will
be responsible for paying all return freight charges plus any broker/duty cost. If
payment for the merchandise has not been made, then it will be withheld until
acceptable merchandise has been received. If payment has been released, then
Carters will deduct the full value from subsequent invoices or Letters of Credit until
goods have been repaired as first quality.
Note: Delivery demands frequently prevent Carters from returning merchandise for
reprocessing.
Third Party Reprocesses Merchandise:
In the event that garments cannot be returned to the Vendor and/or Carters cannot
perform the repairs internally, a third party repair contractor may be used. The
defective lots will then be shipped to a third party for reprocessing. Carters will
charge the Vendor for the cost of transporting the goods to and from the third party
location and all reprocessing fees. The full value of goods (LDP) will be deducted
from the invoice prior to payment or from subsequent invoices if payment has been
made for any seconds or repairs found during reprocessing. All charges incurred
will be deducted from the Letter of Credit (if not already paid), from current invoice,
subsequent invoices or commissions. Any deductions will be handled so that U.S.
Customs documentation reflects the full value of all goods.
Carters will have the right to offset the charges against any amounts due to the
Vendor, including amounts due under purchase orders covering merchandise other
than defective merchandise. Carters will notify the Vendor/Agent as soon as
possible after discovery and computation of charges. A debit memo will then be
issued by Carters. This amount can either be deducted from the Letter of Credit,
current invoices (if not yet paid), subsequent invoices or commission statements.
** See page 30 for all details regarding chargeback claims.

28

PURCHASING
A.

STANDARD PURCHASE ORDER AGREEMENT

A purchase order will be generated for each program once all parties have agreed upon the
Vendor address & Ship label address, quantity to be ordered, delivery schedule, and FCA
price. Once the purchase order has been signed, a copy will be forwarded to the Vendor so
that production may begin. The original will be maintained in our sourcing office by the
Sourcing Business Team. Upon acceptance of the purchase order, the Vendor is bound by
the Terms and Conditions which are included with the purchase order. See Exhibits 13 &
14.
1. FORWARD PURCHASE ORDER AGREEMENT

a. In addition to our standard purchase orders, Carters/OshKosh will also

issue certain purchase orders designated as forward purchase orders
(FPOs). FPOs will facilitate the issuance of purchase commitments in
advance of finalization of color, size and art for included styles. In addition to
allowing for the finalization of these items, FPOs will also allow for
redirection of committed underlying yarns or fabrics volumes to produce
alternative silhouettes/styles to those stated on the FPO.
b. Any FPO will be so designated on its face. The terms and conditions of FPOs
will be consistent with standard purchase orders, with the exception of the
additional terms noted in Exhibit 43 & 44.
B.

CONCEALED SHORTAGES

If a shortage is found during the inspection process, Carters will notify the Vendor of any
discrepancies. In turn, Carters will request reimbursement from the Vendor. In the event
the Vendor has provided incorrect paperwork, they must resubmit corrected documents
before adjustments will be made.
If the shortages were due to cartons lost in transit, the broker/freight forwarder will be
notified with the actual discrepancy and a reconciliation will occur.
It is important that the Vendor completes all packing lists correctly prior to shipping to
avoid any unnecessary complications or slow payments due to incorrect documents. We
require that the packing list be completed in English and in our company format. We
have included a packing list for your reference. See Exhibit 20.
C.

DOCUMENT ISSUES

We are identifying ways to reduce the amount of processing required for goods tendered
under Documents Presented (DP) terms. In order to help speed the processing of these
documents and reduce the amount of duplications, please help us out by doing the
following:

Do not create separate documents for each different style on a shipment. As

much as possible, consolidate styles onto one invoice. The only limitation
should be that styles destined for the Hogansville distribution center (DC #
29

22) should not be part of the same bill of lading as goods for Stockbridge
(DC#33) , Braselton (DC#12)or 3PL West Coast (DC#60).

Use the template (See Exhibits 17, 17b, 18 and 18a) that has been provided
for all shipments (ocean & air) and email to the following address:
o

Carters Documents
Customscompliance@carters.com
Carters.usdocs@dbschenker.com

Oshkosh Documents
Customscompliance@carters.com
Oshkosh.usdocs@dbschenker.com)

** Email documents no later than 2 days after ocean shipment departs of 1 day after
air shipment departs to ensure timeliness of Import Documents arriving to the
broker for pre-clearing.
*** See pages 40-42 for further details/instructions about shipping documents.
D.

INVOICES AND CLAIMS

Debit Note Invoices: Charges that are owed to the vendor.

o All debit note invoices are sent via email to the appropriate Sourcing sbu
team for their approval. Copy Gina Gaetani for tracking purposes.
o These invoices should be sent to Carters, at the latest, 60 days after the
goods (samples, case packs, trims, fabric, etc) have been shipped. In special
cases (ex - liabilities) and when it is approved by each Sourcing sbu, the
agent can wait until the end of the season to issue an invoice.
o All debit note invoices sent to Carters will be paid within 30 days of receipt.
o All charges are paid directly to the Agent.
o Carters will not accept any liability invoices for less than $100.00.

Debit Memo Claims: Charges that are owed to Carters.

o All debit memo claims are sent via email to the appropriate Agent office.
o Upon receipt of all claims, the Agent must remit payment to Carters within
30 days. Once the 30 days have passed and Carters has not received
payment, a final reminder will be sent via email and then we will pass the
information to our Finance team for deduction from the next wire payment
scheduled to the Agent.
o Debit memo claims can be issued for quality errors, packing errors, social
compliance failed audits, truck charges, or any other circumstance that may
arise, due to the vendors fault.
o Carters will not issue any debit memo claims for less than $100.00.

30

PACKING AND SHIPPING

The following guidelines are for the Vendor to use when packaging and shipping product
for Carters. Please be advised these guidelines may change depending on the product and
divisional requirements. Please contact your Sourcing Manager or Sourcing Coordinator if
you have questions about individual program requirements.
A.

FINISHED GOODS PACKING

HANGERS
All hanging garments should be shipped on the hanger with the appropriate size tab.
POLYBAG DUST COVERS
Carters / Oshkosh guidelines for use of individual polybag dust covers. *The polybag
must be perforated across the shoulder seam of the bag.
This is for Carters &
Oshkosh Wholesale/Retail individual hanging pro
duct only. Please see Exhibit 33.
Cotton
(All
fabric
types)

Linen
Rayon
Acetate
Ramie
Wool
Silk

Synthetics
(polyester,
nylon plain
surface or
napped)
Corduroy

Abrasive or
snagging
embellishments
(Jewels,
bead,
sequins)

Velvet
Velveteen
Velour
Chenille
Satin
Sateen
Charmeuse

Other
fabrics
prone to
hanger
impression
marking

No bag

Bag

No bag

Bag

Bag

Bag or
tissue

Exceptions:
The following body fabrics require a bag:
- Velvet, Velveteen, Velour
- Chenille
- Satin, Sateen
- Charmeuse
- Linen, Rayon
- Acetate, Ramie
- Wool, Silk
Items presenting color transfer potential are to be bagged.
Multiple fabric sets, bag if any item would require bagging if packed as a single.
Multiple sets that are swiftached together will be bagged.
- All bulk shipment cartons must require a carton liner.
* Any special requirements from other customers like Sams, Costco, BRU(DC#60),
Wal*Mart(COM), Target(JOY), etc. will also supersede these new polybag dust cover
requirements as well.
* Exceptions list is subject to change based on product changes & performance.

Per the instructions above, if a polybag dust cover is required, the size of the individual
dust cover should be determined by the size of the garment. Use one polybag dust cover
per garment/set (unless otherwise noted for special packing programs). For hanging
31

garments, the hanger must protrude through the top of the polybag. For folded garments
that require a polybag, the polybag should be the smallest size to adequately fit and
protect the garments in a neat appearance and have no extra space. See Exhibit 42.
The following statement must be printed on all bags with an opening diameter greater
than 5 (15.7 in circumference) and less than 1 mil (0.001) thick. Regardless of
thickness, any bag greater than 9x12 must have a warning statement. This includes the
polybag dust covers AND the carton plastic liners. The statement must be in English,
Spanish and French. See below verbiage:
WARNING: To avoid danger of suffocation, keep this plastic bag away from
babies and children. Do not use in cribs, beds, carriages or playpens. The thin
film may cling to nose and mouth and prevent breathing. This bag is not a toy.
ADVERTENCIA: Para evitar peligro de asfixia, mantenga esta bolsa de plastico
fuera del alcance de bebes y ninos. No lo use en cunas, camas, carriolas o
corralito para bebes. La capa fina de la bolsa se puede pegar a la nariz o boca y
puede impedir la respiracion. Esta bolsa no es un juguete.
AVERTISSEMENT : Pour viter tout risque dtouffement, garder ce sac hors de
porte des bbs et des enfants. Ne pas utiliser dans le berceau, le lit, la
poussette ou dans le parc. Le film plastique mince pourrait se coller au nez et
la bouche de lenfant et lempcher de respirer. Ce sac nest pas un jouet.
** Ecommerce bags must also have the warning statement in Chinese. Please reference the
Ecomm Manual for all details. This manual is located in eSPS/Company Information.

Standard Poly Dust Cover Film Thickness/Quality

Low Density Polyethylene (LDPE) only. (PVC) Polyvinyl Chloride is NOT

permitted.
0.0005 to 0.0007 inch (0,013 to 0,018 mm) thickness. (1mil = 0.0254mm; 1.5mil
= 0.0381mm.
Polybag/polycover bag labels detailing style #, size, color are NOT required.

Any other additional packaging instructions/requirements for Clubs, TRU, PPKS,

Ecommerce, or any other special program will be noted in the PDF files in eSPS at the style
level. Contact your Carters/Oshkosh Sourcing team for any questions or clarifications.
SHIPPING CARTONS
The standard size for a shipping carton must be a 23 1/2L x 15W x 13H Standard
Carton. The standard carton must be used for packing all wholesale and retail orders
except for COM, JOY, TRU, Sams, Costco or when the PO requires it. An alternative
carton with the following dimensions (23.5L x 15W x 6.5H) can be used when a small
quantity (either overflow or stipulated pre-packs) of garments is packed in a carton. The
carton sizes for JOY and COM can be found on pages 59-60. For Sams/Costco carton
standards, please see Exhibit 31. Exceeding or going below the indicated dimensions is
NOT acceptable.
The Standard Carton must be made of no less than 175 pound test corrugated cardboard
(i.e. a rigid box able to support the weight of its contents, as well as the weight of other
cartons stacked on top of it). In some situations, the exact carton specifications will be
dictated by Carters, and every attempt must be made to comply.
32

All cartons shipped to Carters must be lined with a poly or plastic case liner before polybag dust covers or garments are placed inside and the carton closed.
DO NOT USE
cardboard liners inside the cartons OR inside the polybag dust covers. Our warehouse
picking process does not provide a method of disposing of the inserts. DO NOT USE
waxed or coated cartons.

Packing of goods in shipping Cartons

The garments should be firmly packed in the Standard Carton to assure secure transit of
the goods, and be suitable for warehouse storage. Pack garments in groups of six (6) to
reduce wrinkling (groups of three (3) if garments are bulky). Unless specifically noted by
Sourcing, the vendor will determine how many pieces should be placed in each carton to
prevent excessive wrinkles. Cartons must not be over packed and garments must be
placed carefully within the carton.
Vendor will fully utilize the space in the shipping carton. If necessary, it is ok to fold the
group of garments in half to better utilize the space in the carton, while still minimizing
the wrinkles in the garment. The pictures below show an example of how to more
effectively utilize the space in the carton.

** Reminder: All bulk shipment cartons must require a carton liner. And please refer
back to page 31 for the polybag guidelines.
And for Retail PPK packing, the vendor should pack as many inners as possible that will fit
the Standard Carton comfortably and fully utilize the space.
The Standard Carton weight should not exceed 40 pounds when packed, and must be
securely sealed with no loose flaps by using tape. DO NOT put plastic bands around the
cartons unless required by local ordinances. DO NOT mix sizes and colors within a carton
unless the purchase order requires it.
*** An Important Reminder about CASEPACKS. Casepack cartons should NEVER ship
to our DCs incomplete. Our DCs cannot receive in an incomplete/shorted casepack
carton. Casepacks typically consist of mixed sizes and/or styles for programs such
as JOY, COM, SAMS, COSTCO, TRU, and RETAIL PPKs.

33

B.

FREIGHT FORWARDER

All vendors should be making ALL bookings with their approved Freight Forwarders local
office. Please see Exhibit 21 that documents the approved Freight Forwarders contact
names and addresses for each origin.

Please see Exhibit 8 for all HBL and HAWB Consignee and Notify party details.
KEY POINTS TO REMEMBER WHEN MAKING BOOKINGS W/ the Freight
Forwarder:

The factory or agent is to submit the initial booking at least 14 days prior to the
CRD date and NO EARLIER than 21 days. Please go to the Company Information
section in eSPS to view the correct Broker Code Listing.

It can take up to 48 hours for bookings to be processed. If a booking approval has

not been received back within 48 hours, please contact
inbound.transportation@carters.com for immediate attention to this matter.

The factory should receive booking confirmations from the shipping line
approximately 5 days in advance of CRD. Please contact
inbound.transportation@carters.com if there are delays.

If there is a change in qty after a booking has been made, please rebook with a nw
ASN. ALSO VERY IMPORTANT, if a new PO is added, DO NOT add to the old
booking - please start a new booking or ALL of the goods will be delayed.

All header information must be complete. It is critical that the CRD date is
populated. If the CRD date is left blank, the booking approval will be delayed.

Carters has designated Schenker as our agent to file ISF (Importer Security Filing),
otherwise known as 10+2 on our behalf, and requires the cooperation of all vendors.
10+2 must be filed with US Customs no later than 24 hours prior to loading on the
ocean vessel destined to the U.S. For origins where Schenker is the Freight
Forwarder, they will gather the information required for filing at time of booking. For
origins where Schenker is not the Freight Forwarder, the information will be sent to
Schenker via email on a template. See Exhibit 46.

ADDITIONAL NOTES REGARDING SHORTAGES AND OVERAGES:

SHORTAGES: A 5% shortage per style/size is allowed; prefer shortages on blank

non-DIM lines first, then EC002, DM001, and FP002 shipments. Any shortages
larger than 5% per size, per style must be communicated to Sourcing before
shipping. Do not delay booking waiting on approval for the shortage. Go ahead and
start the approval process for the bulk of the shipment thru a booking request with
the Freight Forwarder & Carters Transportation Department for the amount you
have ready to ship. During that 12 day period that you are waiting for approval, you
can work with your Sourcing Coordinator to get approval either to replenishment the
goods and when, to accept the shortage, OR to delay shipment until all units are
ready.
** Shipments for Sams, Costco, TRU, and Retail PPKs MUST be shipped 100%
with NO shortages.

34

OVERAGES: 5% shortage per style/size is allowed; prefer overages on blank nonDIM lines first, then EC002, DM001, and FP002 shipments. For shipments over 5%,
DO NOT HOLD the shipment waiting on approval to over ship from your Sourcing
Coordinator. Go ahead and start the approval process for the bulk of the shipment
thru a booking request with the Freight Forwarder & Carters Transportation
Department. During that 12 day period that you are waiting for approval, you can
work with Sourcing to get approval to ship the amount over 5%. If you get approval
before the shipment leaves, let your Sourcing Coordinator know and they will work
with the Sourcing Business Manager to change the % tolerance in eSPS.
** Shipments for Sams, Costco, TRU, and Retail PPKs MUST be shipped 100%
with NO overages. Please alert your Sourcing Coordinator if there are any
overages. They will advise if the overages will be accepted.

*** Remember that shipments must be booked 14-21 days in advance and NO EARLIER.
*** Casepacks must be shipped COMPLETE. Our DCs CANNOT receive incomplete casepack
cartons.
*** See page 54 for the JOY/COM shipping requirements regarding shortages and overages.
*** Also Please note that ALL shipments in eSPS must be closed within 24 hours of the goods
departing the port. This is especially important for all AIR shipments. AIR shipments must be
closed ASAP since the goods could arrive at the DCs much faster.
C.

LABELING FOR SHIPPING

1. TLO/eSPS CASE LABELS
Carton ID shipping labels must be created in TLO and applied to each carton.
(For those vendors not implemented with TLO, they will create carton ID shipping
labels in eSPS). All information required by Carters is included on the TLO or
eSPS shipping label. For all JOY, COM, Sams, Costco, TRU, Retail PPK & ECommerce shipments, or any other specific customer shipments, the carton will
also need to include the program name stamped on the same short end that the
shipping label is placed. And any other additional carton marking requirements
for Sams, Costco, TRU, PPK, EComm will be noted in the packouts in eSPS. *If
an event sticker is required for JOY/COM, this sticker can be placed on the long
side of the carton if there is no room on the short end.
*** Please see Exhibit 15 for a diagram of how the eSPS/TLO label and any carton
markings should be applied. For all Bulk Orders shipping to DC#12, #22, #33, #44, #65,
#70, 72, 76, #60, place the adhesive label on the LOWER right-hand side of the short end
of the carton. The adhesive label should NOT cover up any stamped logos on the carton.
Direct ship to customer shipments may have a different label placement. This will be
called out in the packout instructions in esps. Ask your sourcing representative if there
are questions.

2. ESPS (Internet Sourcing Production System) and TLO (Tradelink One)

All Bulk and Test purchase orders must ship using the TLO and eSPS systems.
The accuracy of all shipments in TLO/eSPS is very important. Please reference
the eSPS web-site to view all training documents and manuals related to
eSPS and TLO. They are located in the Company Information section. If
35

urgent help is needed with using eSPS, please include Carters Helpdesk in your
e-Collaboration - helpdesk@carters.com. Or if you are having problems with the
Freight Forwarder, include both Carters Transportation
inbound.transportation@carters.com and the Helpdesk in your e-Collaboration.
If help is needed with using TLO, reference the TLO Troubleshooting guide.
The guide is located in eSPS. If you are still having technical difficulties
accessing TLO, please contact support@tradelinkone.com

D.

CONTAINER LOADING

All carton labels should be facing the tail of the container, and PO lines should be loaded
together where possible.
The Standard Carton was designed to maximize utilization of space within a container.
The following are the number of cartons than can fit in the different container types:
Container

Maximum # of Cartons

20
40
40 HC
45
53

420 - 429
840 - 858
960 968
1056 1084
1248

To achieve these loads when packing containers, cartons should be stacked with the
length of the carton parallel to the length of the container. See below pics:

When requesting containers from the Carters designated forwarder, the request should be
based on the number of cartons that will be shipped.
Vendors are designated as either
i) Full Container Loader; or
ii) Matrix only loader.
The Full Container Loader vendors are the ones that have orders with volumes that
require them to do regularly weekly shipments through out the calendar year. Vendors
will receive communication if their status as a Full Container Loader from Sourcing.
Absent such communication, vendors are designated as Matrix only loaders by default.

36

Both categories of vendors will use the Container Loading Matrix shown below to request
the most cost efficient container mix based on the number of cartons they anticipate
shipping.
To use the Matrix to determine the containers to request from the forwarder, a Matrix only
loader calculates the number of cartons they will be shipping and locates the carton range
in the first two columns of the Matrix into which this carton count falls. The vendor then
references the columns at the left of the Matrix to identify the mix of containers to order.
The operation of the Matrix is similar for a Full Container Loader, however, a vendor in
this category, will be required to try to replace any air shipments or 20 containers with a
40 container by adding to the current shipment available product from their next
shipment (product will be considered to be available if their next shipment has a CRD date
within one week of the CRD date of the original shipment).
As an example of the operation, of the Matrix for a Full Container Loader, consider a
shipment which consists of 2058 cartons. The Matrix initially identifies that his load
would require two 40 and one 20 containers. If the vendor has available product from its
next shipment they will order three containers and fill those containers.

37

Container Loading Matrix

Equivalent

Standard Cartons
in container
Min
1
67
429
859
969

Max
66
428
858
968
1074

Cubic Meters
Min
Max
0.1
5.0
5.0
32.1
32.2
64.4
64.5
72.7
72.8
80.6

Air

20'

40'

1075
1287
1397
1502
1717
1827
1937
2043

1286
1396
1502
1716
1826
1936
2042
2148

80.7
96.6
104.9
112.8
128.9
137.2
145.4
153.4

96.6
104.8
112.8
128.9
137.1
145.4
153.3
161.3

2149
2575
2685
2795
2905
3011
3117

2574
2684
2794
2904
3010
3116
3222

161.4
193.4
201.6
209.9
218.1
226.1
234.1

193.3
201.5
209.8
218.1
226.0
234.0
241.9

3
2
1

2795
3361
3481
3653
3763
3873
3979
4085
4191

3432
3480
3652
3762
3872
3978
4084
4190
4296

209.9
252.4
261.4
274.3
282.6
290.8
298.8
306.7
314.7

257.7
261.3
274.2
282.5
290.7
298.7
306.7
314.6
322.6

4
3
2
1

3873
4291
4321
4511
4621
4731
4841
4946
5052
5159
5265

4290
4320
4510
4620
4730
4840
4946
5052
5158
5264
5370

290.8
322.2
324.5
338.7
347.0
355.3
363.5
371.4
379.4
387.4
395.3

322.1
324.4
338.7
346.9
355.2
363.4
371.4
379.4
387.3
395.3
403.2

5
4
3
2
1

40'
HC

45'

Total

1
1
1
1
1

1
1
1
1

1
1
1

1
1
1
2
1

1
2
1

1
2
3
2
1

1
2
3
4
3
2
1

1
2
3
4
5
4
3
2
1

2
2
2
2
2

1
2

1
2
3

3
3
3
3
3
3
3

1
2
3
4

4
4
4
4
4
4
4
4
4

1
2
3
4
5

5
5
5
5
5
5
5
5
5
5
5

38

4841
5149
5259
5369
5479
5589
5699
5809
5915
6021
6127
6233
6339

5148
5258
5368
5478
5588
5698
5808
5914
6020
6126
6232
6338
6444

363.5
386.6
394.9
403.2
411.4
419.7
427.9
436.2
444.2
452.1
460.1
468.0
476.0

386.6
394.8
403.1
411.3
419.6
427.9
436.1
444.1
452.0
460.0
468.0
475.9
483.9

6
5
4
3
2
1

5809
6007
6117
6227
6337
6447
6557
6667
6777
6883
6989
7095
7201
7307
7413

6006
6116
6226
6336
6446
6556
6666
6776
6882
6988
7094
7200
7306
7412
7518

436.2
451.1
459.3
467.6
475.8
484.1
492.4
500.6
508.9
516.8
524.8
532.8
540.7
548.7
556.6

451.0
459.3
467.5
475.8
484.0
492.3
500.5
508.8
516.8
524.7
532.7
540.6
548.6
556.6
564.5

7
6
5
4
3
2
1

1
2
3
4
5
6
5
4
3
2
1

1
2
3
4
5
6
7
6
5
4
3
2
1

1
2
3
4
5
6

6
6
6
6
6
6
6
6
6
6
6
6
6

1
2
3
4
5
6
7

7
7
7
7
7
7
7
7
7
7
7
7
7
7
7

If a shipment contains less than 67 cartons, which are equivalent to 5 cubic meters, the
vendor will request to Air Collect the goods.
Documentation support for Full Container Loaders
Full Container Loaders will need to ensure that all documentation supports the shipments
that they make particularly in the event that they have combined product from two
deliveries to ensure full container utilization. To assist them in this process Carters staff
will work with them to develop a system to facilitate scan loading of containers with
systematic capture of case identification for cases loaded to the containers.
Consolidation of 20 Containers
At the time of the booking, vendors will inform Sourcing and Transportation if their
shipment only requires a single 20 container. Forwarder and Transportation department
will make arrangements to try to consolidate container with another shipment coming out
of another vendor. Instructions will be provided at time of booking by forwarder to vendor
if CFS delivery is required.
39

Consolidation of Carters and Oshkosh Shipments

If a vendor has shipments for Carters and Oshkosh in the same week and if the vendor
were to consolidate the loads and apply the Container Loading Matrix it would result in a
lower number of containers, vendor will consolidate shipments. It will load one complete
shipment first, and then the other.
All consolidations have to be informed to
Transportation Department at the time of booking. Each shipment needs to be under a
separate ASN number.
Consolidation of shipments to different DCs
Shipments to all Georgia Distribution Centers (DC#22 & 33) & the 3PL DC #60 in
California should be consolidated if such consolidation would result in a reduction in the
number of containers. If a load is mixed with shipments for Georgia and California, then
the Georgia shipments will be loaded at the tail (next to the door), and the California
shipments will be loaded at the nose of the container. This will allow the GA goods to be
quickly offloaded, and the trailer can proceed to the 3PL with minimal delay.
Two points to follow:
1. The Freight Forwarder will process the booking requests as normal. If the factory
knows at the time of booking that they will be combining loads, instead of booking
the GA calendar as MLB, they will book as IML Intermodal after transload. ALL
shipments to DC#12 that pass through the Longbeach port, will default ship as
IML.
If the factory does not know if they will be consolidating at the time of booking, they
can book as normal MLB, but then when the container is loaded they will need to
send The Freight Forwarder a load report. If a consolidation is possible, the Freight
Forwarder will then advise Carters Transportation to change the calendar from
MLB to IML.
No changes will be required for the 3PL DC#60 calendar shipments.
Extra communication will be required to ensure that there are NO delays.

2. If consolidated shipments in a container are shipping to the same destination, or if

there are shipments to both GA DCs, then the shipment with the smallest quantity
will be loaded at the tail (next to the door), and the largest shipment will be loaded
at the nose of the container.
All cartons of a shipment should be loaded together. Each shipment needs to be under a
separate ASN number.
** Goods shipping through any ports other than LA/Long Beach will not be consolidated
unless pre-approved by the Freight Forwarder.

Container Inspection
All factories must fill out a Container Inspection report for each container they ship. These
forms must be kept on site at each factory for 6 months. This is necessary just in case
Carters receives wet or damaged goods. This inspection report will be proof that the
40

factory did in deed inspect the container before loading their goods. See Exhibit 35 for
the form.
*** If a container is damaged at the time of inspection, the factory must refuse it and
request another one.

E.

SHIPPING DOCUMENTATION

GENERAL GUIDELINES

Vendors are authorized to ship first quality goods only.

Unauthorized substitution of goods will be returned to the Vendor at

Vendors expense.

All shipments should be full container/exclusive loads whenever possible.

Our appointed freight forwarder will be advised via the Purchase Order or
other correspondence via Carters Transportation Dpt. The current freight
forwarders are Schenker or DAMCO for ocean shipments, Jetspeed for Air
Collect shipments and Jetspeed, RCS, AGS for Air Prepaid shipments.

Shipments will be on a freight collect basis, unless negotiated or arranged

otherwise.

Any shipment that arrives at a Carters facility after the Purchase Order has
been canceled will be refused and returned to the Vendor at the Vendors
expense..

There will be a charge back penalty for noncompliance to any of Global

Sourcings packing, carton markings or shipping instructions.
These
chargebacks will include the incremental costs to The William Carter
Company plus an administrative fee.

1. SHIPPING DOCUMENTS
ALL DOCUMENTATION RELATED TO THE IMPORTATION OF GOODS INTO
THE UNITED STATES MUST BE IN ENGLISH. In addition, it is important to
note that a detailed packing list and all required documents as noted in the
Full Package Documentation Guide for every shipment must be emailed to
Carters.usdocs@dbschenker.com or Oshkosh.usdocs@dbschenker.com and
Customscompliance@carters.com in our Customs Compliance Department. This
must be done within 2 days of vessel departure or 1 day after air shipment
departs to ensure timeliness of Import Documents arriving to the broker for preclearing.
Packing lists must be in English and provide the following information: See
Exhibit 20.
Vendor name and address
41

Purchase Order number

ESPS Shipment number
Style, color, size, and quantity by carton
Case label number, or Manual form referenced for each carton
Total number of cartons

Bill of Lading must be in English and include the following information:

Vendor name and address
Consignee and notify party
Vessel/flight details including port of loading, delivery and final
destination
Purchase Order number
Style and description of merchandise
Total number of cartons
Total weight of cartons
Total measurement (CBM) of shipment
Container number
Date of release of shipment to Freight Forwarder.
Other documents include:

FCR
Commercial invoice
Certificate of origin*
Textile Declarations*
Textile export visa / export license (If Applicable)
Quota charge certificate
Single/Multiple country declaration
Evidence of Receipt
Government Issued Country of Origin
Certificate of Compliance (COC)
*Certificate of Origins/Textile Declarations is required for every shipment from every origin
for US Customs clearance purposes, regardless of what the exporting country requirements
are.
! ALL APPROPRIATE DOCUMENTATION MUST BE SUBMITTED WITHIN 2 DAYS OF VESSEL DEPARTURE
OR 1 DAY AFTER AIR SHIPMENT DEPARTS TO ENSURE TIMELINESS OF IMPORT DOCUMENTS
ARRIVING TO THE BROKER FOR PRE-CLEARING. FAILURE TO PROVIDE REQUIRED DOCS WILL
DELAY PAYMENT FOR GOODS AND SAMPLES. CARTERS COMPLIANCE FORMS MUST BE COMPLETED
BY VENDOR AND RECEIVED BY CARTERS CUSTOMS COMPLIANCE DEPARTMENT PRIOR TO ARRIVAL
OF GOODS AT U.S. CUSTOMS. SEE EXHIBITS 17, 17A, 18, 18A FOR US CUSTOMES REQUIRED
DOCUMENTATION, CARTERS INSTRUCTIONS AND SAMPLE OF TEMPLATE.

42

2. DHL PROCEDURES
New DHL Procedures Effective March 16, 2015
Please reference the following chart which indicates the appropriate DHL
Account numbers to be used depending on the type of package being
shipped. The following procedures and rules must be followed starting
immediately.
***Any deviation from these rules will result in incremental charges to
Carters. These extra charges will be charged back to the sender***

Type of Shipment
All Oshkosh Inbound
Market/Sales/Design
and Case-pack Samples
to the U.S.

All Carters Inbound

Market/Sales/Design
and Case-pack Samples
to the U.S.

All Carters/Oshkosh
Non-Sample packages
to / from the U.S.

All Carters/Oshkosh
packages to Product
Development, including
Fit Samples

All Carters/Oshkosh
packages to Quality,
including PP's and
TOP's.

All Bulk Production

packages (Air Collect)
shipping from Asia to the
U.S.

DHL ACCT#
967882455

Reference Field
Comments
Oshkosh
Samples

967882398

Carters Samples

967888763

Name of person
the package goes
to

967882356

Name of person
the package goes
to

967882369

Name of person
the package goes
to

967882314

ESPS ASN#, and

either "Carter's"
OR "Oshkosh"

DHL Shipping
Type

Carton
Size/Weight

International
Express

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

OSHKOSH
PURCHASE
SAMPLES

International Express

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

CARTERS
PURCHASE
SAMPLES

International Express

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

OTHER

International Express

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

PRODUCT
DEVELOPMENT

International Express

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

QUALITY

Max carton size:

23.5"L x 15"W x
13"H Max
Weight is 30lbs
per carton

BULK SHIPMENTS

All shipments have to

be previously
approved by
Transportation

Coding Logic

43

ADDITIONAL DHL RULES:

1. Never exceed the maximum required carton measurements or weight.
Vendors and agents are allowed to use smaller size cartons.
2. For packages shipping to the Atlanta office: Consolidate packages by
SBU (Baby, Sleepwear, Playwear, Oshkosh, JOY, COM). If packages are
not full enough to fill a carton for one SBU, its okay to combine
Baby/Playwear/Sleepwear into a package, and JOY/COM into a package
since they reside on the same floor. DO NOT combine them any other
way. Make sure the carton does not exceed maximum measurements or
weight, as indicated in the above chart. (See internal email from
Sourcing for all rules)
3. SBU and address need to be clear and correct. DHL charges us extra for
incorrect address information.
4. No Saturday pick-ups in Asia, unless it is extremely urgent.
5. No Saturday deliveries in the US unless it is previously approved by the
recipient.
6. Do not send any paperwork by DHL unless it is approved by Carters.
7. All shipments of sample rejected garments will be paid by the agent or vendor
office.
8. Most packages should be consolidated and shipped twice per week on
Tuesdays and Thursdays. Exceptions:
A. All packages shipping from Shenzhen to the Carters Hong Kong Color
office, should ship via local courier.

B. All other country offices shipping to the Carters Hong Kong Color office,
are allowed to ship everyday via DHL.
C. All packages shipping from Shenzhen AND Carters Hong Kong Color
office to the U.S., should ship Mon/Wed/Fri via DHL.
*** Remember, if a carton is full to the max weight/space needing to ship to a
single location, it is okay to ship on any day.

9.

All Market and Sales samples should be shipped with enough time to use
DHLs International Express.
10. All Bulk Air shipments MUST be booked with Carters nominated air
forwarder. Then if the shipment is more cost efficient, the forwarder and
Carters transportation team will make the decision if the shipment will ship
via DHL or our air forwarder.
11. For the Carters and Oshkosh teams shipping from the U.S. to Asia,
please ship to Shenzhen and Hong Kong on Mon/Wed/Fri. Ship to all other
countries on Tues/Fri. Okay to ship via DHL.
*** Please remember to consolidate packages between all departments when
possible. And if a carton is full to the max weight/space needing to ship to a
single location, it is okay to ship on any day.

*CONSIGNEES IDENTIFICATION NO. FOR CUSTOMS PURPOSES = 0029270139 (For inbound

freight that must clear USCS)

For Bulk shipments in which Carters Inbound Transportation team has given a routing of
DHL, please make sure that a single carton does not exceed 30 lbs and the total shipment
should not exceed 110lbs (50K).
44

** The following are Transit Times guaranteed by DHL based on information from Carter's
Transportation:

Inbound
ShipFrom
Bangladesh
Cambodia
China
Guatemala
Haiti
HongKong
India
Indonesia
Kenya
Korea
Malaysia
Philippines
Singapore
SriLanka
Swaziland
Taiwan
Thailand
VietNam

Outbound
ShipFrom
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326

ShipTo:
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326
Atlanta,GA30326

ShipTo
Bangladesh
Cambodia
China
Guatemala
Haiti
HongKong
India
Indonesia
Kenya
Korea
Malaysia
Philippines
Singapore
SriLanka
Swaziland
Taiwan
Thailand
VietNam

TransitTime
2days
2days
2days
2days
2days
1day
2days
2days
3days
1day
2days
2days
2days
2days
4days
1day
2days
2days

TransitTime
3days
3days
4days
2days
3days
3days
4days
3days
3days
3days
4days
3days
3days
3days
5days
3days
3days
4days

45

3. VENDOR REQUIREMENTS RELATING TO C-TPAT

Carters is a certified participant in the Customs-Trade Partnership against
Terrorism (C-TPAT) program which was developed by US Customs and Border
Protection (CBP) following the events of September 11, 2001. The C-TPAT
program addresses requirements to enhance supply chain security associated
with product shipping into the US. As part of its participation in the program,
Carters employs the following procedures in its relationships with its vendors.
Vendor Self-assessment
New Vendor C-TPAT Profile
As part of the initial evaluation of new vendors, all new vendors are required to
complete a questionnaire in the form of Carters C-TPAT Manufacturer Security
Profile (see Exhibit 19) detailing a potential vendors security profile consistent
with the provisions outlined in Section 4. It is anticipated that the requirement
for completion of a C-TPAT profile will be combined with the requirements to
complete a Vendor Profile, Factory Performance Evaluation and Factory
Evaluation report, all of which are completed in advance of first purchase order
issuance by Carters agents.
The purpose of the questionnaire is to confirm a vendors compliance with the CTPAT requirements relating to:
- Access controls
- Personnel security
- Procedural security
- Security training and threat awareness
- Information technology
- Physical security
- Container security (see detail on container security below)
Further details relating to these compliance requirements can be obtained from
the US Customs and Border Protection website www.cbp.gov , from the agent
responsible for a suppliers relationship with Carters or from the Carters CTPAT coordinator contactable at the email address c-tpat@carters.com.
All profiles must be completed as part of the vendor approval process and will
likely be communicated through Carters agents overseeing the relationship with
a specific vendor. Agents representing Carters are aware of the C-TPAT
compliance obligations of Carters and its vendors and as such are expected to
only recommend vendors anticipated to be fully compliant with these C-TPAT
requirements. Agents will incorporate the completion of C-TPAT questionnaires
within their initial evaluations of facilities. Agents may also complete separate
assessments for their C-TPAT programs, copies of which will be made available
to Carters.
Where negative responses are provided by vendors to the questions on a profile,
a vendor is required to provide detail of the security procedures that they
undertake that they believe address the requirement of the procedure discussed
in the security profile question.
46

Any profiles received from vendors with negative responses, will be referred to
Carters Supply Chain Security Oversight committee for further review. This
committee is responsible for taking a risk based approach to enhancing security
across the supply chain. Upon review of questionnaire and any incremental
information provided by Agents, the committee will either recommend
remediation of the weakness within a given time period or if the extent of
remediation required is considered to be too significant, will require that a
vendor not be used to source product.
Annual Vendor Review
At the beginning of each year, all vendors are required to reconfirm or update
responses provided to their original C-TPAT Security Profile. The current C-TPAT
profile will be distributed at the beginning of January each year and vendors will
be expected to submit their responses ASAP. Vendors who do not provide their
responses will be subject to on-site validation.
Vendor Audits
Vendor On-site Visits
Carters, together with its agents and other qualified service providers, has
developed procedures for the completion of on-site security reviews. The
framework for these visits will involve onsite confirmations of submitted security
profiles for vendors in accordance with the following:
-

All new vendors will be subject to an on-site visit no later than 3 months
following commencement of production for Carters, and typically as part of
the initial vendor evaluation.
Any vendors not submitting their annual profile re-confirmations/updates by
March 30 (or within 45 days of request) will be visited unless they were
previously visited in the prior 6 months or no further production is
anticipated with them.
High risk vendors will be visited at least once every 2 years
Medium risk vendors will be visited at least once every 4 years
Low risk vendors will be visited at least once every 5 years

In laying out our on-site audit program detailed above, a risk level will be
assigned to each vendor and be reviewed periodically by the Supply Chain
Security Oversight Committee. Risk level will be a function of:
-

Political/economic/terrorist climate of countries within the supply chain

including level of factory/port security
Level of complexity or length of specific supply chain
Level of involvement of C-TPAT certified partners in a specific supply chain
Participation of supply chain partners in security programs similar to C-TPAT
Carters prevailing relationship with specific 3rd party vendors
Submission of negative responses to C-TPAT Profiles and Questionnaires
Import volumes from specific supply chains
Nature of latest terrorist activity

47

Container Security
Recognizing the criticality of container security to overall supply chain security,
the following requirements pertaining to container security must be met by all
vendors:
Overview
Container integrity must be maintained to protect against the introduction of
unauthorized material and/or persons. At point of loading, procedures must be
in place to properly seal and maintain the integrity of the shipping containers. A
high security seal must be affixed to all loaded containers bound for the U.S. All
seals must meet or exceed the current PAS ISO 17712:2010 standards for high
security seals.
Container Inspection
Procedures must be in place to verify the physical integrity of the container
structure prior to stuffing, to include the reliability of the locking mechanisms of
the doors. A seven-point inspection process is recommended for all containers:

Front wall
Left side
Right side
Floor
Ceiling/Roof
Inside/outside doors
Outside/Undercarriage

Container Seals
Written procedures must stipulate how seals are to be controlled and affixed to
loaded containers - to include procedures for recognizing and reporting
compromised seals and/or containers to US Customs and Border Protection or
the appropriate foreign authority. Only designated employees should distribute
container seals for integrity purposes.
Container Storage
Containers must be stored in a secure area to prevent unauthorized access
and/or manipulation. Procedures must be in place for reporting and neutralizing
unauthorized entry into containers or container storage areas.
Communication of Container Seal information
Upon completion of shipments at 3rd Party factories, vendors are required to
provide seal and container numbers to Carters Transportation organization.
Vendors are required to input seal numbers together with associated container
numbers into the ESPS system. When inspections occur and seals are broken,
notify Carters Inbound Transportation with the new Seal#.

48

4. Policy Statement Prepaid Air Freight

On all late x-factory orders where Carters asks the vendor to prepay the air
freight:

If you use our nominated Freight Forwarders Jetspeed, RCS, and AGS as
the air freight forwarder, Carters will rebate the sea portion.

FYI: We use Schenker and Damco as our preferred Ocean forwarder and Jet
Speed as our preferred Air forwarder and have contracted inland/domestic
rates established. The use of a different forwarder other than Carters
preferred forwarder can result in higher inland cost to Carters.
Deferred service and Sea/Air options must be approved by Carters Inbound
Transportation/Planning during the booking process.
** One additional note: Please keep in mind that if the factory has a very
large shipment (from any origin) they should contact the freight forwarders
for a spot rate. Often the spot rate will be better than our current contract
rates for very large shipments. Additionally, as a reminder, the vendor is
responsible for the cost of the shipment to our DC doors, and Carters will
pay the Air Sea Difference (ASD).

49

ADDITIONAL NOTES
The following topics are items of importance that may or may not be detailed in other
sections of the manual. However, each topic is mentioned to give further guidance or
explanation and to reiterate its importance. Please review each carefully.
A. Needle Policy
Carters requires vendors to maintain policies and procedures to detect and remove
needles, broken needles, loose snap prongs or other harmful, extraneous items from
the garment.
The vendor is required to utilize appropriate metal detection devices. The use of
ferrous metals for some garment hardware components may influence the type of
metal detection device used. For example, a hand held metal detector may have to
be sued instead of a conveyor type. See Exhibit 9.
*** Any and all expenses incurred by Carters as a result of broken
needles or other harmful, extraneous parts left in a garment, will be
charged back to the supplier
B. Grippers on Denim Styles
As of 8/3/2000Carters requires the use of stainless steel grippers ONLY on ALL
DENIM styles for SP2001 and onward. Stainless steel grippers will be specified in
the BOM and will have longer prongs. The longer prongs will provide a more secure
fastening to the garment and help to prevent the small parts from detaching.
Stainless steel grippers will be 16L only, and will remain unpainted.
C. Heat Sealed Appliqus and Thermal Transfers
There should be written approval from Q/A before use of any heat seal product.
*Exception will be the tagless label on the inside of the ferment.
Woven heat sealed appliqus are to be applied with a heat seal machine. It is
critical that all heat seal and thermal transfer operations be monitored closely to
assure the application of the item is as secure and durable as possible. Possible
causes of poor applications are low temperatures, reduced dwell times, improper
platen pressure and improper platen padding.
Each application type must pass Small Parts Government Requirements. The
attachment must be able to withstand fifteen (15) pounds of pressure / pull. BOM
should specify the use of reinforcement tape when necessary. Fabric tear, ripping
and breakage of part will fail testing. See Exhibit 27.
D. Two-Piece Sets Pricing for Purchase Order and Commercial Invoice
United States Customs now requires all styles that are a two-piece (2-piece) set to
be identified as a garment with component pricing. Carters purchase order will list
the set as one style number with a single price. Price per component will be
provided by Sourcing to the Agent.
The vendors Commercial Invoice will list each component and its price rather than
the 2-piece set and the sets price. For example, a 2-piece set that is $5.00 on the
PO would appear as dress = $3.00 and bloomer = $2.00 on the Commercial
50

Invoice.
US Customs will compare vendors Commercial Invoice to Carters
Purchase Order for verification.
E. Prohibiting Method of Chemically Sealed Ribbon Edges
Vendors will not use chemicals to seal or finish the edge of a satin ribbon or any
other decorative item that may be put into a childs mouth. The only approved
method for sealing a ribbons edge is the Hot Knife method. The heat of the knife
can be easily controlled to avoid blackening the item. Any ribbon, trim, or
decorative item that is finished using a harmful chemical will not be approved for
production.
F. Unauthorized Manufacturing / Selling of Carters & Oshkosh Labeled Goods
Vendors will not manufacture or sell goods containing Carters/Oshkosh labels
without the prior written consent from the appropriate VP or Director of
Carters/Oshkosh. The license to manufacture Carters/Oshkosh merchandise is
granted on a purchase order by purchase order basis. Overruns and irregulars may
be sold in the local market only and must be stripped of all Carters/Oshkosh
labels, logos, or identifiable trademarks. Garments must be unbranded and free of
all Carters/Oshkosh trim items (see Product Development Process : Trims
Accountability). The inside labels should be cut out of the garment or marked
through with permanent ink. This product must be held at the factory 6
months prior to disposing of the goods in the local market. Overruns and
irregulars will not be exported and can only be sold in the local markets of the
country of manufacturer.. They cannot appear in the U.S. market. Violators will be
prosecuted to the fullest extent of the law.
G. Special Instructions

Corduroy - Patch pocket openings must be secured with bar tack (or
grommet as design feature). All overall and jumper bibs which are not
double faced, must be secured with reinforcement of self fabric at
button.

Single Knot Please see Exhibit 29 for the CORRECT SINGLE

KNOT required for ALL Boys Playclothes drawstring bottoms. ALL
salesman samples as well as production MUST BE CORRECT.

H. Safety

Button and Bow Attachment 4-Hole buttons will be required for all
decorative button items. Buttons not in a placket must have fuseable
non-woven heat seal backing of sufficient size (2-3 times the size of the
button). Buttons on top of embroidery must be sewn through the fillstitch. Therefore, all embroidery requiring buttons must have fillstitching.
Bows must have backing larger than 1 inch unless bow is on
embroidery or through the placket, or a seam, or two layers of fabric.
Bows must be tacked / cross-tacked horizontally instead of vertically.
This will create a stronger hold. See Exhibit 30.
51

Details on Toe Seaming Using the correct sewing method for footed
garments is very important. The following is the recommended step by
step procedure on closed toe sewing:

Get garment at inseam or side seam.

Get sole. Align sole over heel at seam.
Position under machine foot with sole on top.
Tack on to secure under machine foot.
Align at heel.
Sew around heel.
Align at toe.
Straighten at toe.
Adjust plies at toe.
Sew to toe.
Align to starting seam.
Sew to overlap at starting sew approximately 1 inch and
sew off 2 inches.
Guide chain past knife to trim threads.

Vendor must make sure they are coming off at the heel. Trimming
must be no more than 3/8. Doing this method, the sewers will start
at the inseam of one foot and outseam of the other.

Broken Needles Any and all expenses incurred by Carters as a

result of broken needles or other extraneous metal parts left in a
garment, will be charged back to the supplier.

JOY REQUIREMENTS
The Just One You brand is sold exclusively to Target.
*** All JOY requirements are located in the JOY Baby/PW handbook, which is located in
eSPS. Any further questions, please contact the JOY Baby/PW Sourcing team.
*** For all Sleepwear JOY requirements, please see the SW Sourcings team handbook, which
is located in eSPS. Any further questions, please contact the JOY SW Sourcing team.

Packing and Shipping requirements for JOY are the same for COM, as detailed below in
the COM section, pages 55-58.

52

CHILD OF MINE REQUIREMENTS

The Child of Mine brand is sold exclusively to Wal*Mart but all items must meet both
Carters and Wal*mart requirements.
There are similarities and differences in the
requirements.
For example, all styles must be submitted to MTL/Bureau Veritas for testing. Please refer
to page 19 of this manual and also see the Testing Procedures in eSPS for the MTL testing
requirements. Carters will also pay to have each style tested at Wal*Marts designated
facilities named Consumer Testing Laboratories (CTL) in order to satisfy the additional
requirements. These requirements include, but are not limited to, extensive testing for
color and garment performance at a fabric, pre-production, and production level. There
are also differences in style identification, sampling quantities, and shipping requirements.
A.

COLOR PROCESS AND PROCEDURES

The color development process for the Child of Mine brand varies slightly from the Carters
brand. All brands have the same high standards for color control, but the Child of Mine
brand has additional terminology, procedures, restrictions, and submittal forms.
1. COLOR TERMINOLOGY
CTL uses specific abbreviations and terminology when reviewing color. The most
common are as follows:
LDE = Electronic Lab Dip
LD = Physical Lab Dip
SBE = Electronic Shade Band
SB = Physical Shade Band
Electronic lab dips and shade bands are reviewed on the Data Color machine and
the readings are passed electronically to CTL for review. Physical lab dips and
shade bands are mailed to CTL for electronic and visual review.
Carters also differentiates the initial lab dip from the official lab dip. Initial lab
dips are only reviewed by Carters. The official lab dip is the finished fabric version
produced using the guidance from the initial dip.
2. COLOR PROCEDURES & RESTRICTIONS

Wal*Mart requires all lab dips and bulk dye lots to be sent to CTL for color review
against the color standard. The color process flow is the same for any apparel item
being sold to Wal*Mart. Please see Exhibit 37 for detailed step-by-step color
procedures and restrictions for the Child of Mine brand.
Sleepwear, Baby, and Playwear items follow this process:
A. Carters provides color standards to CTL and to the garment factories.
B. Factories submit initial lab dips to Carters for review unless they are self
approving agents.
C. Upon initial lab dip approval, factories submit official lab dips for
electronic and physical review by Carters and CTL.
D. Upon official lab dip approval, factories submit first bulk fabric lots for
electronic and physical review by Carters and CTL.
E. Upon approval of 1st bulk, factories submit subsequent bulk fabric lots for
electronic, and possible physical, review by Carters and CTL.
F. Trim items, such as binding, are reviewed by Carters and not by CTL.

53

3. COLOR SUBMIT FORMS

Each submit must be accompanied by a completed Child of Mine Submittal Form

For Color Swatches. Exhibit 38 shows the most current submittal form, but
please contact your appropriate Sourcing Coordinator or Sourcing Manager to
obtain an updated version. It is imperative that all requested information is
accurately provided.
Carters will provide color results for each internally reviewed submit within 24
hours of receipt. Prints and yarn dyes will require an extra 24 hours for review.
CTL color results will be forwarded to the factories as soon as Carters receives the
information. Electronic results are usually available within 48 hours. Physically
reviewed color submits should have results available within a week of electronic
approval.

54

B.

WAL*MART PACKING AND SHIPPING REQUIREMENTS

Wal*Mart have very sophisticated and extensive transportation and distribution plans. These plans
require special packing and shipping from the garment vendor that are different from standard
Carters requirements. See page 31-33 for standard Carter packing and shipping information.
Differences between the Carters and Child of Mine brands include, but are not limited to, carton
sizes, carton identification/markings, and packout requirements.
1. MASTER CARTON SIZES (for both Walmart and Target)
Carters master carton size requirements can be different from those of Wal*Mart/Target
because of the various distribution center layouts and rack storage systems.
Wal*Mart/Targets standard master carton dimensions are as follows:

6.5

50%

6.5

15.9%
7.5

15

15

23.5

13

Standard Carton
100%

31.9%

6.5

15
15
15
23.5

13

63.8%

15

200%

15

26

15
23.5

55

Standard Cartons
#

Length

Width

Height

1
2
3
4
5
6

15
15
23.5
15
23.5
23.5

7.5
15
15
15
15
15

6.5
6.5
6.5
13
13
26

15.9%
31.9%
50.0%
63.8%
100%
200%

** If none of the Standard cartons fit a particular product, the vendor can
design a carton based on the following requirements:
1.
2.
3.

Length of width of the carton must be 15. The other side can vary to
meet product dimensions.
Height of carton must be one of the following measurements: 4.5, 6.5,
8, 13, and 20.5.
Carton dimensions need to allow the complete utilization of the height
(104) and width (90) of the container.
Packing Guidelines

12.
13.
14.
15.
16.

Garments should be folded in half when packing

When packing, place each group on the opposite direction of the previous
one, so hangers do not lay on the same side all the time.
Always use the smallest possible carton to pack.
Do not over pack a carton. The top of the carton should always be flat.
Do not load cartons sideways.

All carton labels must face the rear of the container.

Cartons should not exceed 40 pounds when packed. The master cartons should be
double or triple wall construction with a burst strength of 175 to 200 lbs per
square inch. The carton should be resistant to moisture. And the Edge Crush Test
(ECT) must meet lbs/inch based on gross weight of carton and packing method.
2. JOY/COM P.O. FULFILMENT POLICY

Fulfillment

All components of Just One You, Precious Firsts and Child of Mine orders
must ship 100% complete and on time.
In rare cases where shortages cannot be avoided, the shortages must be
applied to the solid sku replenishment cartons for U.S. stores, whereby
assorted cartons and dot com quantities are fulfilled 100% complete.
Mass Channel brands should be fulfilled based on the following
prioritization per brand so that any minor shortages are applied to the
last component of the priority ranking.

56

Just One You/Precious Firsts

First Priority
Second Priority
runs)
Third Priority

Store Set assortments cartons(mixed style or size runs)

E-commerce/dot com assortments cartons(mixed style or size
Replenishment( solid sku cartons)

Child of Mine
First Priority
Second Priority
Third Priority
Fourth Priority
Fifth Priority U.S.

Canada product
Mexico product
E-commerce/dot com product
U.S. store set assortment cartons(mixed style or size runs)
replenishment(solid sku cartons)

Over shipments

Over-shipments are not encouraged, but are allowed up to +2% of the

total buy for a creative style.
Overages for JOY/Precious Firsts should always be packed in the solid
sku replenishment cartons for U.S. stores and booked against those p.o.
lines. JOY/Precious Firsts overages should not be packed in assortment
or dot com cartons or booked against those p.o. lines.
COM overages should be packed in the U.S. store assortment (mixed style
or size) cartons and booked against those p.o. lines.
COM overages should be packed in the U.S. store assortment cartons and
booked against those p.o. lines.

3. CARTON IDENTIFICATION AND MARKING

Wal*Mart requires each national brand vendor to identify their master cartons with
a stamped logo. The Child of Mine logo should be stamped or printed on each
master carton. The logo belongs on the left-hand side of both short ends of the
master carton. This is because the esps/TLO adhesive shipping label should be on
the lower right-hand side of one short end of the carton

Please see Exhibit 45 for a digital file of the logo.

** The adhesive label should NOT cover up the logo stamp.
**If an event sticker is required for JOY/COM, this sticker can be placed on the
long side of the carton if there is no room on the short end.
57

4. PACKING REQUIREMENTS

Some Wal*Mart packing and packout requirements are similar to Targets needs and
some requirements are different. For example, the Child of Mine brand must ship
in complete master cartons. A complete master carton has no more or no less
than the required number of selling units. Other differences are related to packout
terminology and the use of polybags and packing materials to create inner case
packs.
PACKOUT TERMINOLOGY
The term packout refers to how a master carton is packed. Wal*Mart also
uses the term innerpack to specify how many selling units are bundled
together in a sealed polybag before being packed in a master carton.
Packouts are stated on the BOM as a ratio of selling units in a master carton
and the number of selling units bundled in an innerpack. For example, a
packout of 24/2 means twentyfour (24) selling units in the master carton
and two (2) selling units bundled per innerpack. By dividing the master
carton quantity by the number of innerpacks the packout requires twelve
(12) innerpacks to make a complete master carton. The following are some
more examples of standard packouts:
12/1 = 12 selling units per master and individual selling units per inner
36/3 = 36 selling units per master and 3 selling units per inner
18/3 = 18 selling units per master and 3 selling units per inner

**It is very important to note that the ratio is always stated in selling units.
For multipack items such as 3-pack bodysuits, the packout number still
refers to selling units. For example, a packout of 24/2 for a style of 3-pack
bodysuits would have 24 packs (selling units) in the master carton.

POLYBAGS AND PACKING MATERIALS

Wal*Mart tries to minimize debris and trash when possible. Each master
carton will allow for one form of protection for the contents. Wal*Mart
requires either a master carton liner or sealed inner case pack polybags.
Excess polybags, cardboard inserts, or packing materials are not permitted.

Carters Sourcing will help clarify which master cartons require a carton liner
and which items will to have multiple selling units placed in sealed/taped
inner polybags. The term sealed inner pack means that the entire garment
and hanger (including the hook) are inside the polybag that is taped shut or
sealed using heat. The following guidelines should help:
-

Assorted shipments with multiple sizes of the same style will usually ship
in a master carton with a carton liner. No individual or innerpack
polybags required.
Replenishment shipments that ship single style and size per master
carton will usually ship without a carton liner. The packout ratio will
identify the number of selling units that will be placed inside a sealed
polybag.

58

**Do not use individual polybags for a single garment unless specifically
required by Sourcing. If required, follow the polybag rules for Carters
and Oshkosh on page 31.
*** In addition, please see Exhibit 40 for the Wal*Mart/Sams Club Hanger manual and
Sizer Tab manual.
*** All Child of Mine requirements are also located in the COM Baby/PW handbook, which is
located in eSPS. Any further questions, please contact the COM Sourcing team.
*** For all Sleepwear Child Of Mine requirements, please see the SW Sourcings team
handbook, which is located in eSPS.

59

THE END
Please sign and return form.
All agent offices and vendors must sign and return the form.

Carters
3438 Peachtree Road
Suite 1800
Atlanta, GA 30326
VENDOR CONFIRMATION FORM
I acknowledge receipt of Carters Revised Vendor Policy Manual dated 3/12/15. The manual has
been revised with significantly new information, policies, and procedures. Although most sections
remained unchanged, please destroy and discard previous versions of the vendor manual. Please
replace the entire manual with the new manual.
I have read and understand the policies and procedures set forth in the above documents and
agree to comply with all procedures and agree to be responsible for all testing costs.

Company Name (type or print)

Company Address

Company Telephone

Company Officer Signature

(Type or Print Name Signed Above)

Title

Date

60