Logistics Services - DSL

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Contents

Introduction ................................................................................................................................... 3

Why you should choose dsl logistics ...................................................................................... 3

Our Guarantee ........................................................................................................................... 3

Receiving and Storage.................................................................................................................... 4

Inwards ...................................................................................................................................... 4

Storage ....................................................................................................................................... 4

Stock Control.............................................................................................................................. 5

Packing at Origin ........................................................................................................................ 6

Store Replenishment ..................................................................................................................... 7

Store Transfers ............................................................................................................................... 8

Value Added Services ..................................................................................................................... 9

Performance Reporting ............................................................................................................... 10

Sample Interactive Performance Report ................................................................................. 11

Company Information .................................................................................................................. 12

Facilities ....................................................................................................................................... 13

Technology / System Integration ................................................................................................. 14

Proposed KPIs .............................................................................................................................. 15

Inwards Processing .................................................................................................................. 15

Outwards Processing ............................................................................................................... 15

Inventory Variance ................................................................................................................... 15

References ................................................................................................................................... 16

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Introduction We would welcome your RFP and would

appreciate the opportunity to make a

presentation of our web tracking systems,

show you our premises, introduce our staff

and answer your questions.

All three directors have been with the

company for over twenty years. Daniel Silva

founded and runs the Importers Institute.

John Widdows set up and manages the 3PL

operation and Phillip Rashleigh develops all

our software.

Why you should choose dsl logistics

We are a well-established company and experienced providers of 3PL (third party

logistics) services. Our clients include leading retailers and wholesalers of fast-moving

consumer goods.

We have strong partnerships in China, India, Australia and other source countries.

These enable us to offer seamless direct-to-store (DTS) solutions when required.

We operate from modern secure premises near Auckland airport and have ample

storage capacity.

Our Internet tracking systems, provide the ability to track individual SKUs from origin

to final delivery to store. Our unique IT systems are sophisticated and sold to 3PL

operators internationally. They were developed in-house by operators over a period of

fifteen years. We modify them for each client, so clients do not need to modify their

systems. We do not charge clients for integration costs – it is what we do.

We are neutral on the selection of couriers and overseas forwarders and make our

bulk rates available to clients with no hidden mark-ups.

We own and operate a steam tunnel and comprehensive pressing and stock

preparation facilities to ensure garments arrive in the stores ready for sale.

Our Guarantee

“We are so confident in the quality of services that we offer new clients an initial

period of six months, during which the contract can be terminated by the client, for

no cause and with no obligation.”

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Receiving and Storage

Inwards

Stock is counted and checked off against suppliers’ documentation upon arrival. Any further

tasks that are required, such as QA, are then performed. When these processes are completed,

the goods are put away in a pre-allocated location ready for picking.

At this point, our system automatically emails a report listing any discrepancies between the

suppliers’ documentation and our count. Any issues detected during QA are also reported. The

stock-on-hand record is immediately updated and visible through our website.

Example of an inwards report with discrepancies

Storage

We have a number of different storage types: bulk pallet locations for overflow or bulk items,

pick faces locations that we use for replenishment picking purposes, and our GOH (garment on

hanger) static and overhead railing system.

We have sufficient space in our four warehouses to store hangers and other accessories,

subject to a separate storage charge for the space used. The storage costs for stock are

automatically calculated by the system with reference to items on hand at the end of each day.

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Stock Control

We offer a couple of options. We have a stock control team that performs on-going cyclic stock

counts on all our pick bays on a client-by-client basis. This ensures stock is accurate, and it also

assists us in providing accurate picks, and a very high percentage of DIFOT. We are able to give

you the details of this type of counting process if you require it to be approved by your

auditors.

One of our large clients dispensed with the annual stock count altogether, relying exclusively

on the cyclical counts. The cost of both the cyclical counts and one annual stock count are

included in our processing fees. We will perform cyclical counts even when an annual stock

count is required, as we rely on that process to maintain order fulfilment accuracy.

Where an annual stock count is required, we need to agree with the client on a period of no

stock movements, sufficient to perform the task. This varies according to the number of units

to be counted. Some clients require more than one stock count in a year. In those cases we

charge for that work based on our normal hourly rate.

You can check on all inwards and outwards movements of any SKU to reconcile stock-on-hand. All stock reports can be

downloaded in Excel format

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Packing at Origin

Some retailers have moved to a mixed model, where some base lines are packed at origin

(typically in Shanghai and Shenzhen) and consolidated with replenishment lines for storing and

subsequent pick-and-pack in our Auckland DC. The packed-at-origin cartons are cross-docked

to stores immediately on arrival. We receive a data stream from the agents in China, which

enables us to provide visibility in our website at item level, regardless of whether the carton

was packed in China, Melbourne or in Auckland.

Although these models reduce the volumes processed through our DC, they result is a very

substantial cost saving for our clients and we fully support them.

Example of a tracked delivery to store

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Store Replenishment We have a number of picking options available. For picking from bulk into pre packs, we would

use our voice-scan-directed wave pick system. This provides us with fast accurate store picks.

All packs or stock that have been prepared for retail can be shipped to the stores in

accordance with your specifications (SOP). We can ship in flat packs, hanging bags or a mixture

of both.

We are neutral on our clients’ choice of courier service and can quote our best wholesale rates

at cost.

We use the transfer of files between clients’ systems and our WMS to provide the automated

pick requests. We do not normally accept work that involves operating a client-provided WMS,

as that model does not allow us to use the management features of our WMS. We work to

agreed KPIs with respect to all deliveries into store.

Scan-packing from a wave pick

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Store Recalls and Returns We accept recalls sent from stores to the DC for further processing in accordance with

instructions. The same applies to client returns.

With respect to goods held for a supplier and the return of faulty goods, we store the goods in

a ‘virtual’ sub warehouse in our WMS, so they are kept separate from the normal stock. Goods

can be moved from the sub warehouse and either destroyed, returned to the supplier, or given

to charity at a time specified by the client. You have full visibility of the contents of sub

warehouses in the same way that you can see your stock in our website.

Main flat pack storage area

Hand pressing stations

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Value Added Services We are experienced with conducting quality control procedures as part of the inwards

processing of stock. Most clients request us to perform basic checks, such checking labels and

price ticket accuracy. Our staff are experienced with garment handling and will also provide a

basic level of QA.

Where a more in-depth level of QA is required, for example checking on stitch counts, colour-

fastness and the like, some clients choose to have their own expert located in the DC, either

permanently or on a visiting basis. We provide them with office space and IT support on a

straight cost-recovery basis.

To support this option, we have developed a web-based model that gives full visibility of

movements in to and out of the QA virtual warehouse. There is no additional cost involved.

Our Garment Care division is well resourced with in-house steaming and pressing facilities. We

have a 5-chamber Veit steam tunnel with a capacity of 1,200 units per hour, on average. The

settings can be adjusted, depending on the processing requirement, to do more than double

that. We also have specialised equipment that enables us to further process garments to

ensure they are at their best when they get to your retail stores.

We provide in-house a range of additional value added services such as re-printing and

applying price tickets, swing tags etc. We outsource sewing or dry-cleaning work to Apparel

Solutions, with whom we have worked successfully for a number of years.

Steam tunnel

Specialised loading bay for hanging bags

Trouser presses

Shirt Formers

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Performance Reporting dsl logistics manages its 3PL process by using robust and accurately measured KPIs, which

need to be clear and documented prior to the start of the contract.

Our online web site provides live KPI information for any current or previous period. We

encourage our clients to hold regular performance review meetings. The next page is an

example of an actual client report.

High-pick aisles

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Sample Interactive Performance Report

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Company Information dsl logistics has been in business since 1986 and currently employs approximately 60

fulltime staff. There are three working Directors, five office staff who work on administration,

with the balance being involved in the 3PL operation. Our warehouse manager has been with

the company for over ten years.

The main 3PL facility operated by dsl logistics is a licensed Customs Bonded Warehouse

facility and a MAF (MPI) Authorised Transitional Facility (ATF). It is a modern purpose-designed

4,200 square metre building situated on a visible corner site within a newly developed

business park close to Auckland International Airport. The business park has a number of

security cameras set amongst the buildings, and there are signs to this effect throughout the

area.

The corner site of dsl logistics is fully fenced with a 2.6-metre high perimeter electric fence.

Key access to the facility and building is provided only to authorised personnel. Security

lighting is installed throughout the facility and all access doors are alarmed and monitored

24/7.

Multiple CCTV cameras are strategically positioned externally and internally and these provide

visual recording of all movement activity up to 30 previous days. At dsl logistics, we have a

zero-tolerance policy on theft.

The site is also equipped with monitored fire sprinklers and all security features and

applications are regularly inspected and maintained.

dsl logistics holds $10 million of public liability insurance. As we do not own our clients

goods, we cannot insure them and clients are required to carry adequate insurance on their

stock. Insurance companies regularly vet our premises and security systems.

The majority of our clients are engaged in the fast-moving consumer goods trade, which is our

main area of expertise and experience. A number of trade references and their contact details

are listed in this document. You are most welcome to contact any or all of the references

listed.

Customs-controlled area

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Facilities The main dsl logistics warehouse occupies an area of 4,200 square metres and has a stud

height of 12 metres , within which is a configuration of standard and narrow isle high rise

racking which supports both bulk pallet and individual item picking. Our second warehouse

houses our GOH service. This comprises approximately 1,200 square metres of static and

overhead railing system, and further isles of 10 metre high narrow isle pick faces where we can

store flat-packed items of stock. In the same building we have the following equipment:

Five-chamber Veit steam tunnel

Multiple steam irons and Veit ironing vacuum boards

Veit automatic shirt formers

Veit multi-formers used in the preparation of jackets, skirts, blouses and dresses

Veit automatic pant formers

Manual press machines

We are in the process of extending our current storage and processing facility by 75%, and also

taking on further space within a few hundred metres of our main complex. In total this will

give the company approximately 10,500 square metres of useable space of which

approximately 7,000 square metres are allocated. Space is allocated to clients based on a

required footprint that is worked out prior to moving into the facility. There is always an

allowance made to accommodate growth, whether seasonal or permanent.

A continuous capacity management process enables an assigned client footprint space to be

expanded or decreased to meet the changing demands of client stock management as well as

enable fill optimization of the warehouse capacity by dsl logistics.

Hanging garment storage

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Technology / System Integration dsl logistics uses custom written in-house software for all its applications. Our objective

with software development is to make any application robust, reliable, easy to use and smart.

Software development at dsl logistics is conducted using tools provided by Microsoft.

All of dsl logistics in-house applications use Microsoft SQL

Server as the back-end database, and run on a Windows

platform. An electronic Cubiscan and weighing station that

integrates tightly with the dsl logistics WMS is used for all

courier dispatches.

dsl logistics has used IT to its competitive advantage since

it started in 1986. In the early 1990’s dsl logistics

pioneered the use of EDI as a means of streamlining customs

clearances in New Zealand for goods shipped from Australian

retailers and manufacturers and were heavily involved in the

first trials of paperless import entries with NZ Customs.

dsl logistics developed a Warehouse Management System (WMS), Trackstock, that has

been in existence since 1996 and was specially developed for 3PL operations. It provides RF

capability for:

Inwards processing

Outwards Scan Packing

Inventory relocation/Pick face Replenishment

Location product verification

Stock item look up

Because our software is written in-house, changes that are required for each client can be

made quickly and efficiently. This provides the client with more flexibility. When moving to dsl

logistics as a 3rd Party Provider, the clients do not need to change their internal systems.

We use the transfer of files from your ERP system to look after inwards, outwards, returns and

stock control functions of the 3PL process. We send you back any information you require for

loading back into your system the same way. There is no cost for this integration service, it is

what we do for new clients.

dsl logistics has a sophisticated online web tracking system. From here you can track the

progress of both your inwards and outwards orders, get PODs with delivery time-stamps and

recipient names. You can also get live updates on both stock on hand and performance under

the KPIs. This information is available 24/7.

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Proposed KPIs

These KPIs are put forward as examples for discussion. They are modelled on KPIs currently in

use with other clients. The final form would take account of service level requirements and

volumes.

Inwards Processing

Target 98%, Breach 95%

Percentage of inwards orders checked in and put away by 6 pm on the working day

following the date of receipt of the cargo at the dsl logistics warehouse.

Outwards Processing


Percentage of outwards orders received before 6.00 am to be shipped out on the same

day and delivered in accordance with the courier KPIs.

Fulfilment


Percentage of outwards units ordered that can be shipped at the time of order and are

shipped.

Inventory Variance


Any cumulative losses calculated on a yearly basis that are below 98% will be credited,

on a landed cost basis, by dsl logistics.

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References Please feel free to contact some or all of these references.

COMPANY CONTACT TEL

Chea Ying +61 409 545 605

Julie Michell +61 3 9859 9111

Barbara Emerson +64 21 882 554

Ian Cameron +61 3 9237 2209

Vinessa Urlich +64 9 304 0995

Mark Glidden +64 9 444 9424

Dale Buckley +61 400 920 232

Russell Mullane +61 448 553 256

Gail Cornish +61 3 9486 9277

“We have worked with DSL for over twenty years. They have provided excellent service as the

New Zealand 3PL contractors for our Sussan and Suzanne Grae divisions. I recommend their

services.

Russell Mullane, CFO, Sportsgirl / Sussan Group”

“We had problems with large delays in order processing and serious inaccuracy in stock

recording with our previous logistics service provider. We decided to move 700 pallets to DSL

and to deliver seven un-opened containers. The DSL team achieved a complete move of all 700

pallets and deconsolidation of seven containers within a week, clearing backlog orders within

one day of the container doors opening. I can’t speak highly enough of the service and the

attention that DSL gave SENCO.

Mark Glidden, General Manager, Senco Brands (NZ) Limited”

Logistics Services - DSL

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