FEEDER APPAREL CORP.

1. FEEDER APPAREL CORP. FINISHED GOODS WAREHOUSE

2. oliver@sportscity.com.ph - Formerly called CLOG or Central Logistics - Started November 2004

3. CONTENTS: • Finished Goods Section Overview • - Org. Chart & Lay-out • - Capacity in CBM & Hist. Data • - Objectives • FG Process Flow and its Disciplines • Scan & Verify Process • Documents Used • Reports Used and Generated • FAQ’s ( Frequently Asked Questions )

4. Meanings & Terms Used in FG • ENDORSE - to hand-over an item/po to dispatch section ,that is already complete for shipment ( 100% close , Passed inspection ) • 2. Bin - an enclosed space for storage • 3. Discrepancy - anything of lacking in quantity or state of being different from what is acceptable and standard. • Invoice –or bill is a commercial document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services • 5. Tradecard – a software systems that is used by buyer ( UA, TNF, Adidas )

5. LCL – Less Container Load • FCL – Full Container Load • FCR date – Forwarders Confirmed Date • Scan & Pack - used in factory logistics only ( Adidas ) • Scan & Verify - used in FG during delivery on Adidas goods • PMS - Production Management System • CY – Container Yard • CFS – Container Freight Station . The CFS is the delivery (or receipt) of loose cargo from (or at) the carrier’s container freight station or consolidation. • Loose Cargo – Anything that is of excess in container is considered loose cargo. • Ship Plan or Load Plan –list of PO’s group or sequence together to form a list of PO’s for shipment per invoice. • Shipping Order – Booking confirmation from forwarder/buyer

6. Modes of CY and CFS Container Services • Modes of CY and CFS Container Services • 1. The CY/CY (read as ‘CY to CY’) container service - door-to-doorcontainer service or house-to-house container service—broadly means that the whole container received by the carrier is packed at the shipper’s or the forwarder’s premises, and the delivery of that same whole container to the consignee’s premises. • In a related term door-to-door service, which is often used in the cargo forwarding and may involve the LCL, refers to a type of freight service available from a forwarder whereby the cargo is picked up at the consignor’s premises and delivered to the consignee’s premises. • 2. The CY/CFS (read as ‘CY to CFS’) container service - door-to-port container service—broadly means that the whole container received by the carrier is packed at the shipper’s or the forwarder’s premises, and that same whole container is emptied at the carrier’s container freight station at the port of destination. • The consignee arranges the delivery of the loose cargo from the container freight station to his/her premises.

7. 3. The CFS/CY (read as ‘CFS to CY’) container service - port-to-door container service— broadly means that the delivery of the loose cargo to the carrier’s container freight station at the port of origin is packed into the whole container, and the delivery of that same whole container to the consignee’s premises.  • 4. The CFS/CFS (read as ‘CFS to CFS’) container service- port-to-port container service or pier-to-pier container service—broadly means that the delivery of the loose cargo to the carrier’s container freight station at the port of origin is packed into the whole container, and that same whole container is emptied at the carrier’s container freight station at the port of destination. • The consignee arranges the delivery of the loose cargo from the container freight station to his/her premises.

8. Organizational Chart Finished Goods Manager Document Controller (3) Warehouse Supervisor Dispatch Supervisor HR Supervisor Store TL (3) Receiving TL (1) Dispatch TL (1) Nurse (1) Safety Officer(1) PCO (1) Electrician(1) Utility (2) FG Assoc. (6) Dispatch Assoc. (4) Scanner (2) FG Asst (14) FG Asst. (11) Dispatch Asst. (5) Driver (1) Driver(3) Driver(3) Total Manpower = 64

9. LAY-OUT adidas BEFORE EXPANSION adidas adidas UA TNF Other buyers

10. LAY-OUT AFTER EXPANSION adidas YELLOW - ADIDAS adidas GREEN - UA TNF Other buyers adidas UA TNF

11. FGS Capacity

12. CBM COMPUTATION C B M – Cubic Meter ( Volume)

13. FGS CBM Historical Data

14. CAPACITY STATISTICS

15. CAPACITY RATE

16. CBM PER BUYER

17. TYPES OF VEHICLES FG USED

18. PLATFORM OF STORAGE • A. RACKS – used mostly during transfer of cartons • B. WOODEN PALLETS – used as storage Noted: All cartons should be piled in pallets

19. Finished Goods Objective • 100% Receiving Accuracy • 100% Binning Accuracy • On time Delivery

20. 100% Receiving Accuracy All cartons received from factory should be accurately checked based on the checklist forwarded by the factory, any discrepancy should be reported immediately to the concerned factory.

21. 100% Binning Accuracy All cartons piled should have bin location and must accurately be reflected on the PMS.

22. On-Time Delivery All cartons closed & passed inspection and scheduled for shipment should be delivered on time based on buyers delivery date.

23. F G Process Flow

24. RECEIVING • Hauls cartons from factory logistics • Cut-off time for pulling out cartons from factory is until 5 pm • Load cartons to tractor/Winged van • For GMI, Load cartons using CLOSED VAN / WING VAN • Receiving Hauler segregates cartons ( By buyers & PO ) • Discipline: • Everything delivered within cut-off time must be endorsed to Stores before going home. • If no discrepancy, sign the Logistics Checklist (original) and forward checklist encoder & endorse the scanner to the receiving encoder for uploading . • Move to staging area (ready for binning). • Discrepant cartons are moved to “Red Tag Area / holding Area”. • Any discrepancy must be settled by factory within 1 hour. • Receiving Team Leader/Encoder will send Receiving Discrepancy Report to factory. • Check & scan each carton based on the carton #, labels, shipping marks (P.O. #, Customer Order.) and the carton quality.

25. REPORTS GENERATED BY RECEIVING: RATE OF DISCREPANCY RATE = Number of Discrepancy / Total number of cartons TYPES OF DISCREPANCY

26. BINNING • Reach Truck Operator bins cartons to corresponding bin location (pallet # match to rack #) • warehouse asst. moves cartons from staging area to Stores. • Write down bin location in the Checklist(Copy) based on the actual location. • Discipline: • All cartons must be binned and encoded prior to going home. • Warehouse asst. indicates the location at the checklist and forwards to receiving encoder • Encoder encodes bin location • Arrange Log. Checklists by control no.

27. DISPATCHED CARTONS FOR FINAL INSPECTION • CFA requests Move Ticket from Clerk. • CFA gives to Receiving Team Leader. • Warehouse asst. prepares cartons • Endorse to requesting CFA • Warehouse asst. moves cartons for final inspection at designated area • Area is arrange according to factory per P.O. • Adidas Requirement : Should reach 80% close • Other Buyers : Complete Sizes • UA Requirement : ‘Staggard Inspection

28. FINAL INSPECTION - majority of inspection here is done by buyers -inspectors CFAs / Buyer Inspectors conduct Final Inspection

29. METAL DETECTION MD Operators conduct Metal Detection • If passed, cartons will be rechecked for completeness and then binned. • If failed, cartons will be returned back to factory using the “RETURN SLIP” endorsed to Factory Manager.

30. DISPATCH FOR SHIPMENT - should be passed inspection and close • Warehouse Asst. endorsed the prepared cartons to the dispatch • CLOG Supervisor provides SHIPPING ORDER to Store Team Leader • Warehouse Asst. prepares cartons per Shipping Order or Invoice • From Shipping Department -CPRD • Stamp the DR and Shipping Order with “DISPATCHED” once the cartons are already shipped • Scan and verify cartons for S&P P.O. and randomly weight cartons for LLL, UA & TNF • Record Video during loading for all China Destination ( all Buyers )

31. REPORTS GENERATED BY DISPATHED: EXCLOG REPORT ( By Buyer, Invoice, Forwarder & Delivery Date )

32. DOCUMENTS USED: • Transfer Slip & Gate Pass- Adocument used to transfer finished goods from SCI factory to IMPEX Section in which the receiver will affix his signature indicating the goods has been received in complete and good order. • Delivery Receipt - Adocument in which the forwarder will affix his/her signature indicating that the cargoes have been received in complete and good order. • Move Ticket – is an internal transacting document which triggers the movement of specified cartons from one area to another. • Return Slip – is an external transacting document which enables the return of rejected lots after conducting final inspection and/or Metal Detection. • Shipping Order - A document use to deliver cargoes to forwarder as per invoice, also serves as a booking. • Invoice A document that Contains the price per pcs, total amount of goods, payment methods , bank name, FCR date. • Packing & Weight List - A document that contains packing details like sizes and quantity, weight and measurement details of each cartons, Individual description of garments like model and style. ( or checklist ) ( DR )

33. COMMON BARCODES / MARKINGS USED:

34. USAGE OF PMS • FINISHED SOLELY RELY ON PMS FOR THE FOLLOWING REASONS • CLOSE PO’S • BALANCE CARTONS • BIN LOCATIONS • PASSED INSPECTION • BUYERS DELIVERY DATE • AND OTHER NECESSARY DETAILS

35. BIN LOCATION

36. SAMPLE

37. SAMPLE

38. SAMPLE

41. ANY QUESTIONS AND CLARIFICATIONS ?