Business Process Outsourcing

Definition – The delegation of non-core operations from internal production to an external entity specializing in the management of that operation.

Wikipedia

Attributes of Successful Outsourcing

• Cultural fit• Willing to adapt to changing situations• Seamless integration of internal and external people and

processes• Considerable degree of two way information exchange• A relationship built on coordination and trust

About Us

• Founded by a progressive entrepreneur with over 20 years of merchandising experience

• Solely focused on floor-ready retail preparation• Committed to longevity in the marketplace• Portfolio of both quick-hit and long-term programs

Company History

Company founded Nov ’00Hendersonville, NC2,000 sq ft – 5 associates1 production table

Expanded May ’01Tuxedo, NC12,000 sq ft – 18 associates1 production table

Moved to larger facility Oct ‘03Fletcher, NC40,000 sq ft – 36 associates2 production tables

Moved to larger facility Aug ‘05Arden, NC136,000 sq ft – 60 associates4 production tables

Fletcher facility July ’0470,000 sq ft – 54 associatesAdded production table #3

Arden facility Jan ’07Added hard-lines work area

Satellite warehouse Mar ’0780,000 sq ft

Operations

Arden, NC• 136,000 square feet• 5 processing lines• 70 full-time associates• 30+ million units processed in ‘06• OSHA compliant

Fletcher, NC• 80,000 to 250,000 square feet• Expandable warehousing• OSHA compliant

Service Area

1 Day2 Days

Floor-Ready Services

Receiving Warehouse PackageProcess Shipping

- In bound truckcoordination

-Sort at check inPalletize

Accurate countReceiptacknowledgement

-Pre sorting Accurate inventory

reporting Ship sample packs

Secure storage

Full inspection Quality grading

Shade sorting Label removal

Labeling Ticket removal

Ticketing "Gun" pricing Insert hangers

Spot cleaningPressing/steaming

Single fold Printer fold

Wrap in setsBaggingHanging

-Pre packing-Re packing

Kit/displayassembly

Cases (new ororiginal)Palletize

Shrink wrapBand

Vendorcoordination

Floor load Direct to store

Segregate bylocation

Detailed packingslipsShipmentacknowledgement

Floor-Ready Services will be happy to entertain additional service requests on a per order basis.

Shade Sorting

• All employees subjected to Ishihara test for color blindness

• Inspectors require “Superior” rating on the Farnsworth-Munsell 100 Hue test

• MacBeth light box to establish shade standards• Process area lighting conforms to retail floor condition

(e.g., Target and Wal-Mart)

Indirect Materials

• Hangers (new/used)– Size tabs

• Product Labels• Tickets

– In-house one-color printing

– Conforming to your UPC requirements

• Bags• Floor Displays• Shelf Displays• Stretch Wrap• Boxes (new/used)• Shipping Labels• Pallets

Client may provide or Floor-Ready Services will source:

Committed to Quality

• Full-time dedicated QC person

• Only utilize full-time company employees

• Experienced shift leaders• Detailed floor work order

instructions• Housekeeping is a priority

Expected Benefits for Retailers

• Time• Our dedicate resources to the difficult tasks result in

on-time processing and reduced in-house disruptions allowing you to optimize the efficiency of your core workforce.

• We are able to respond quickly, adhering to rigid time schedules on critical non-conformance issues.

• We enhance your ability to facilitate last-minute buys, increasing your capacity to prep the goods and achieve critical floor placement.

Expected Benefits for Wholesalers

• Time• We help you resolve off-shore non-conformance

issues (of any magnitude!) and meet your promise dates.

• Floor-Ready Services provides a seamless extension of your in-house processing and helps you avoid seasonal overloading.

• A partnership with us allows you to respond quickly to impromptu fluctuations in demand.

• You can focus your internal resources on first-quality production!

Expected Benefits for Wholesalers

• Space• With us onboard, you can move closeouts off your

floor, and retain fast turn around reprocessing capability, to optimize value to the marketplace.

• Using our warehouse capability allows for shipping large, non-conformance projects all at once. You reap the benefits of reprocessing and shipping JIT to your DC!

• Working with us optimizes cross-docking on incoming goods.

Expected Benefits for Wholesalers

• Money• Because we employ 100% full-time employees, you

avoid costly workforce fluctuations and do not suffer the inefficiencies associated with using temporary, untrained workers.

• Outsourcing complex problems allows your in-house resources to remain efficient by concentrating on what you do best.

• We provide a cost-effective resolution to on-the-water price changes.

Expected Benefits for Retailers

• Space

• By outsourcing with us, you avoid tying up valuable DC floor space to execute a complex sort. Our facility is designed to accommodate projects requiring expansive work area.

• We facilitate cross-docking at your DC, allowing your operations to remain streamlined.

• We have the facility to receive buys of any magnitude, and can then warehouse, prep and ship JIT!

Expected Benefits for Retailers

• Money

• With a Floor-Ready Services partnership in place, you can reduce your commitment to internal fixed costs and benefit from outsourced variable expenses.

• Avoid costly workforce fluctuations and the inefficiencies associated with using temporary, untrained workers.

Examples of Services Provided

Job• Russell boys’ sweatshirts• 250,000 pieces

Process• Unpack by size• Remove plastic bag• Apply label over existing label• Mix colors• Pre-pack a blend of sizes in

original boxes (36/box)• Palletize• Label on outside of box• Stretch wrap

Job• Men’s colored Tee’s• Irregulars• 38,000 pieces

Process• Unpack by size• Inspect front and back• Single fold• Apply label• Mix colors• Pre-pack a blend of sizes into

shelf display (36/box)• Palletize• Label on outside of box• Stretch wrap

Job• Men’s dress shirts• First quality• 11,839 pieces• Process in 1 day

Process• Unpack by size and color• Remove plastic bag• Pre-pack a blend of sizes and

colors (48/box)• Palletize• Label outside of box• Stretch wrap

Job• Men’s LS athletic shirts• First quality• 15,000 pieces

Process• Unpack and dispose of box• Remove from plastic bag• Swiftach price tag in collar• Insert hanger with size collar• Print fold in sets of 12• Re-pack by size and color in

new boxes (12/box)• Apply price tag on box• Stack 65 per pallet• Apply location label on pallet• Stretch wrap

Job• Ladies’ fashion pants• First quality• 65,000 pieces

Process• Unpack• Remove plastic bag• Verify hanger tag with pant

size• Sort to 10 shade standards• Inspect for panel shading• Spot clean stains• Bag in original bags• Re-pack as pre-packs in

original boxes (9/box)• Re-pack by size and shade in

original boxes (24/box)• Palletize• Stretch wrap

Project• Vertical blinds• First quality• 11,000 pieces

Process• Unpack parts• Cut rails to standard length• Remove 10 vanes• Cut valance to length• Cut packing to size• Construct new box• Pack 34 parts• Apply label and price sticker

to box• Band in fours and palletize• Band and stretch wrap pallets

Project• Home decor closeout• 473,000 pieces• 1,024 skus

Process• Sort incoming sku’s by price• Count cartons• Open inner cartons• Apply price sticker• Repack into master cartons• Build mixed sku pallets by price• Stretch wrap• Provide unit count for distribution• Apply location labels on pallets

Commitment and Value

Floor-Ready Services' Responsibilities

• Communicate• Proactively identify opportunities for ongoing cost

savings, value enhancement and service improvements• Discover and implement best practices• Establish a flexible relationship that is highly responsive

to your changing needs

Just once, and we were hooked…

“The customer changed the price while the goods were on the water. We needed 120,000 shirts sorted, tickets removed, re-ticketed and pre-packed. Using our people, it would have cost 32 cents a piece and taken ten days. I figured, what could it hurt? So I tried Floor-Ready Services.

Well, they blew me away. Done and out the door in 72 hours for 20 cents a shirt. Now I find them indispensable”

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