Policies¶
8 governance policies that constrain entity operations, workflow execution, and business rules across the retail ontology. Each policy is defined in enterprise-knowledge/policies/ as a Markdown file.
Policy Summary¶
| # | Policy | ID | Standard | Risk | Owner | Constrains |
|---|---|---|---|---|---|---|
| 1 | Pricing & Promotion Policy | POL-PRICE-001 | NRF: Merchandising | High | Chief Merchandising Officer | Product_Master, Promotion, Price_Record, Markdown_Schedule |
| 2 | Inventory & Fulfillment Policy | POL-INV-001 | GS1 | High | VP Supply Chain | Inventory_Position, Warehouse, Shipment, Stock_Movement |
| 3 | Customer Data & Privacy Policy | POL-CUST-001 | GDPR/CCPA | Critical | Chief Privacy Officer | Customer_Profile, Loyalty_Account, Browsing_Session, Customer_Segment |
| 4 | Store Operations Policy | POL-STORE-001 | NRF | Medium | VP Store Operations | Store_Master, Store_Traffic, Labor_Schedule, Shelf_Condition |
| 5 | Supplier & Procurement Policy | POL-SUPP-001 | GS1 | High | Head of Procurement | Vendor_Master, Purchase_Order, Goods_Receipt, Product_Master |
| 6 | Sustainability Policy | POL-SUST-001 | GRI/SASB | Medium | Chief Sustainability Officer | Product_Origin, Carbon_Footprint, Waste_Record, Packaging |
| 7 | Data Freshness Policy | POL-DATA-001 | NRF/GS1 | Medium | Chief Data Officer | All integration feeds |
| 8 | Loss Prevention Policy | POL-LP-001 | NRF | High | Director of Loss Prevention | Transaction, Register, Inventory_Position, Store_Master |
1. Pricing & Promotion Policy¶
ID: POL-PRICE-001 | Standard: NRF: Merchandising | Systems: POS, ERP, E-commerce
| Rule Area | Key Rules |
|---|---|
| Margin Floor | No transaction below 20% gross margin without CMO approval; exception requires documented competitive justification |
| Promotion Stacking | Maximum 30% combined discount when stacking tier + campaign + coupon; BOGO limited to 1 per customer per campaign |
| Markdown Cadence | Seasonal markdowns at 4-week intervals: 30% → 50% → 70%; clearance override requires Merchandising Director approval |
| Competitive Price Matching | Key Value Items (KVIs) matched within 48 hours of verified competitor price change; non-KVI at CMO discretion |
| Vendor-Funded Promotions | BOGO and deep-discount promotions require minimum 50% vendor cost share; co-op agreements documented in Vendor_Co_Op |
| Price Change Frequency | Maximum 2 price changes per week per SKU; exceptions for perishables and competitive response on KVIs |
2. Inventory & Fulfillment Policy¶
ID: POL-INV-001 | Standard: GS1 | Systems: ERP, WMS, E-commerce
| Rule Area | Key Rules |
|---|---|
| Safety Stock | ABC classification: A=7 days, B=14 days, C=21 days; recalculated weekly from demand forecast variance and lead time variability |
| FIFO Enforcement | Oldest batch shipped/sold first; exception requires Supply Chain Manager approval; perishables: strict FIFO, no exceptions |
| Stockout SLA | Critical items (top 200 SKUs) replenished within 24 hours; standard items within 48 hours; seasonal within SLA + 3 days |
| Ship-from-Store | Store must have >10 units excess above safety stock; pick-pack SLA: 2 hours; carrier pickup within 4 hours |
| Split Shipment Avoidance | Route to single fulfillment node if >70% of order available; <70%: split with customer notification; max 2 shipments per order |
| ATP Accuracy | Available-to-Promise accuracy target >98%; breach triggers inventory reconciliation within 24 hours |
3. Customer Data & Privacy Policy¶
ID: POL-CUST-001 | Regulatory: GDPR / CCPA | Systems: CRM/CDP, POS, E-commerce
| Rule Area | Key Rules |
|---|---|
| Consent | Explicit consent required for cross-channel identity stitching; separate consent for marketing, analytics, and partner sharing |
| Data Retention | Transaction data: 7 years; browsing/clickstream: 2 years; marketing consent records: until withdrawn + 1 year audit trail |
| Right to Delete | Customer deletion request fulfilled within 30 days; cascades to Browsing_Session, Clickstream_Event, Customer_Segment membership |
| Anonymization | All personally identifiable data anonymized for analytics after 24 months; aggregated cohort data exempt |
| Loyalty Data Sharing | Loyalty transaction and preference data shared with partners only with explicit opt-in; revocable at any time |
4. Store Operations Policy¶
ID: POL-STORE-001 | Standard: NRF | Systems: POS, IoT, WFM
| Rule Area | Key Rules |
|---|---|
| Staffing Ratios | Minimum 1 associate per 2,000 sq ft during trading hours; peak hours (11am-2pm, 5pm-7pm): 1 per 1,500 sq ft |
| Planogram Compliance | Target >92% compliance on audited sections; below 85%: store manager remediation plan within 7 days |
| Shrinkage Investigation | Cashier void rate >3σ above store average triggers LP investigation; self-checkout void rate monitored separately |
| Self-Checkout Loss Prevention | Scan rate target >95%; stores below 90% for 2+ consecutive weeks: intervention review with LP Director |
| Energy Target | 10% year-over-year reduction in kWh per sq ft; stores exceeding 15% over budget flagged for energy audit |
5. Supplier & Procurement Policy¶
ID: POL-SUPP-001 | Standard: GS1 | Systems: ERP, Vendor Portal
| Rule Area | Key Rules |
|---|---|
| Vendor Approval | Performance_Score >60 required for continued listing; below 40: suspend new POs; below 30: delist with 90-day wind-down |
| PO Approval | <$50K: auto-approve; $50K-$250K: Procurement Director; >$250K: VP + CFO; >$1M: Board approval |
| Lead Time Compliance | Target >95% on-time delivery; below 90% for 3 consecutive months: vendor performance improvement plan |
| Quality Defect Threshold | <2% rejection rate on incoming inspection; >5%: automatic vendor hold; >10%: delist review |
| Single-Source Prohibition | Top 100 SKUs must have ≥2 approved vendors; exception: proprietary/patented items with VP Supply Chain approval; qualification deadline: 90 days |
6. Sustainability Policy¶
ID: POL-SUST-001 | Standard: GRI / SASB | Systems: ERP, Vendor Portal, IoT
| Rule Area | Key Rules |
|---|---|
| Carbon Targets | 5% year-over-year reduction in kg CO2e per product unit; Scope 1+2 tracked at store and DC level |
| Packaging | Recyclable packaging target >80% of SKUs by 2027; recycled content minimum >30% across all private label |
| Food Waste | Target <3% of perishable inventory; donation rate >50% of near-expiry safe product; stores exceeding 5% for 2+ weeks: investigation |
| Cold Chain Excursion | Any temperature excursion outside spec = immediate quarantine + root cause investigation; affected inventory blocked until QA release |
| Supplier Certification | New suppliers must hold recognized sustainability certification (Rainforest Alliance, Fair Trade, BSCI, or equivalent) within 12 months of onboarding |
7. Data Freshness Policy¶
ID: POL-DATA-001 | Standard: NRF / GS1 | Systems: All
Structured System SLAs¶
| Source | Data | SLA |
|---|---|---|
| POS System | Transaction, Transaction_Line_Item, Register | Real-time (<1 min) |
| ERP | Inventory_Position, Stock_Movement, Goods_Receipt | Daily full + real-time delta |
| E-commerce Platform | Online_Order, Clickstream_Event, Browsing_Session | Real-time (<1 min) |
| CRM / CDP | Customer_Profile, Loyalty_Account, Customer_Segment | On-change + daily full sync |
| Social / Reviews | Product_Review, Brand_Sentiment, Market_Trend | 4-hour refresh cycle |
| IoT Sensors | Store_Traffic, Shelf_Condition, Temperature_Sensor | Real-time (<1 min) |
Staleness Rules¶
- 2x SLA gap: alert Data Engineering
- 3x SLA gap: mark data as stale; exclude from AI workflow inputs; notify operations management
8. Loss Prevention Policy¶
ID: POL-LP-001 | Standard: NRF | Systems: POS, CCTV, IoT
| Rule Area | Key Rules |
|---|---|
| Shrinkage Target | <1.0% of revenue; stores exceeding 1.5% for 2+ consecutive periods: LP audit within 14 days |
| Void/Refund Investigation | Cashier void or refund rate >3σ above store average: automatic flag for LP review within 48 hours |
| Self-Checkout Intervention | Intervention rate monitored per store; stores with scan-miss rate >5%: technology and process review |
| Age-Restricted Items | 100% age verification on controlled substances (alcohol, tobacco); failed verification = blocked transaction; no override |
| Internal Theft Protocol | Suspected internal theft: LP Director notification within 24 hours; investigation completed within 30 days; dual-approval for employee termination based on LP findings |
| Cycle Count Frequency | A items: monthly; B items: quarterly; C items: semi-annual; >5% variance triggers full location audit |