4
*Inbound visibility is dependent on the information provided by the customer. FedEx Fulfillment Services Apparel When consumers enter a store full of beautiful apparel, they have little idea of the complexities involved in getting it there. They don’t see the relentless competition from big retailers and new arrivals that make brand differentiation and pricing strategies harder than ever. Nor do they witness the careful balancing act apparel manufacturers must perform to synchronize overseas production and local sourcing, especially as cycle times get shorter. Then, too, while consumers can have fun with Web surfing and e-mail, manufacturers must figure out how to capitalize on the Internet as a tactical business tool for sales and distribution. And if that weren’t enough, there are the ever-present realities of fluctuating commodities prices, overseas labor rates, and the fast pace of an industry that changes with the seasons. Many challenges, many needs—for cost-cutting, integration, visibility, planning, speed, reliability, efficiency, and plain old expertise. The very benefits, in fact, which we bring to the apparel industry. The fulfillment services offered by FedEx Supply Chain Services allows makers of apparel to focus on their core competencies while FedEx provides custom- ized, cost-effective distribution solutions to extend coverage, reduce trans- portation and warehousing costs, and enhance overall supply chain efficiency. Now there is a solution from FedEx that provides: • Fast, accurate pick, pack, and ship functions. • Higher inventory velocity and lower inventory carrying costs. • Capitalizing on the Internet as a distribution channel. • Planning for seasonal demand, short-lived fashions, and short shelf life. Complete supply chain visibility for inbound,* outbound, and static inventory. • Improved returns management. • Web-based dashboard details of activity status. If you need single-point access to a supply chain that expands and contracts with your business, FedEx Supply Chain Services could be the perfect fit. Seamless fulfillment. Includes features of service and locations scheduled for Summer 2003 release. FedEx Fulfillment Services

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Page 1: Seamless fulfillment

*Inbound visibility is dependent on the information provided by the customer.

When you fi ll orders, you’re fulfi lling expectations.Are you meeting your customers’ requirements for speed and accuracy? Have you given them a greater sense of confi dence? Have you helped them fulfi ll their customers’ expectations? Because that’s how you’ll be judged. FedEx Supply Chain Services helps you go beyond their expectations, with services that make fulfi llment one seamlessly integrated operation. For instance, synchronicity happens only when everyone is working with the same information. FedEx Supply Chain Services gives you that capability with electronic linkages up and down the supply chain. Customers, vendors, suppliers, and end users now have internally standardized communications confi gured to your method of business. In fact, fl exibility is a hallmark of this service. We integrate your business rules to seamlessly manage and execute your fulfi llment operations. And by leveraging the worldwide FedEx transportation and information infrastructures, you will have the visibility and insight to gain more control over the planning and forecasting of your business.

In short, you, the customer, feel sure instead of unsure, confi dent instead of anxious. And that’s a real feeling of fulfi llment.

To add effi ciency, subtract complexity.Simple arithmetic will tell you that the less you spend to fi ll orders, the more profi table you’ll be. That’s why we simplify the whole process for you. In a world of relentless competition, tight cash fl ow, shrinking margins, speed-to-market pressures, and on-line shopping, cutting capital and operating costs is the key to staying competitive.

FedEx Fulfi llment Services makes it real simple. It’s an outsourced service that may reduce or eliminate the need for capital investment in your fulfi llment infrastructure. Suddenly, order, warehouse, and inventory management become less of an expense. The long-term labor commitment for pick, pack, and ship is gone. Even returns are no longer an issue because we handle return logistics as well. Best of all, you, your partners, and your customers are always “in the loop” with customized dashboard details of real-time data the way you need to see it.

It’s the kind of focus that turns “business as usual” into unusual effi ciency. So that in the end, you can simply be more profi table.

To learn more about the fulfi llment offering provided by FedEx Supply Chain Services, call 1.800.543.7657, or visit fedex.com.

FedEx Fulfillment ServicesApparel

When consumers enter a store full of beautiful apparel, they have little idea of the complexities involved in getting it there. They don’t see the relentless competition from big retailers and new arrivals that make brand differentiation and pricing strategies harder than ever. Nor do they witness the careful balancing act apparel manufacturers must perform to synchronize overseas production and local sourcing, especially as cycle times get shorter. Then, too, while consumers can have fun with Web surfi ng and e-mail, manufacturers must fi gure out how to capitalize on the Internet as a tactical business tool for sales and distribution. And if that weren’t enough, there are the ever-present realities of fl uctuating commodities prices, overseas labor rates, and the fast pace of an industry that changes with the seasons.

Many challenges, many needs—for cost-cutting, integration, visibility, planning, speed, reliability, effi ciency, and plain old expertise. The very benefi ts, in fact, which we bring to the apparel industry.

The fulfi llment services offered by FedEx Supply Chain Services allows makers of apparel to focus on their core competencies while FedEx provides custom-ized, cost-effective distribution solutions to extend coverage, reduce trans-portation and warehousing costs, and enhance overall supply chain effi ciency. Now there is a solution from FedEx that provides:

• Fast, accurate pick, pack, and ship functions.• Higher inventory velocity and lower inventory carrying costs.• Capitalizing on the Internet as a distribution channel.• Planning for seasonal demand, short-lived fashions, and short shelf life.• Complete supply chain visibility for inbound,* outbound, and

static inventory.• Improved returns management.• Web-based dashboard details of activity status.

If you need single-point access to a supply chain that expands and contracts with your business, FedEx Supply Chain Services could be the perfect fi t.

Seamless fulfillment.

Includes features of service and locations scheduled for Summer 2003 release.

2572FC© 2003 FedEx. All rights reserved.Includes features of service and locations scheduled for Summer 2003 release.

1. Order is sent to FedEx via XML, Internet, customer calls, EDI and is processed by the FedEx Order Management System.

2. Order information is sent from FedEx Information Network and the visibility, connectivity, business rules, order administration functions are applied.

3. Order is transmitted to the appropriate DC. The order is processed, picked and packed and shipped to the end customer.

4. The package is picked up by FedEx, scanned, and delivered to the end customer. 5. The FedEx customer is billed for the order. 6. If the end customer decides to return the product, the returns are processed in reverse order and

delivered to the appropriate network distribution center.

1 2

4

5 Returns

Flow of informationFlow of goods

FedEx Fulfi llment Services

Customer OrderManagementSystem

Supplier

DistributionCenter 3

DistributionCenter 4

DistributionCenter 2

DistributionCenter 1

Technology Functionality• Visibility: Complete inventory and order visibility across multiple facilities through

network capabilities.• Connectivity: Operations and IT support infrastructure in place across multiple partners

and locations.• Automated Business Rules: Executes processes, fl ags orders based on pre-set customer

requirements.• Order Management and Executions: Order process from inception to delivery.

Process integrates order management system with warehouse management systems.

EndCustomer

3

FedEx Fulfi llment Services

49687-AP2 1 6/9/03, 3:15:25 PM

Page 2: Seamless fulfillment

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NENV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Fulfi llment Network Locations

Chicago

Houston

Indianapolis

Memphis

Nashville

Reno

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Nashville Coverage

1 Day Service

2 Day Service

Using FedEx Ground or FedEx Freight.

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Chicago / Memphis Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL

IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Indianapolis / Memphis Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Nashville / Chicago Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Memphis Coverage

When being safe means being sorry.Better to be safe than sorry, right? Not in apparel supply chain management, where “safe” means having too much inventory and “sorry” means paying for it. Maintaining safety stock and overstocking your distribution channels show a lack of faith in your supply chain. That’s when you call FedEx Supply Chain Services and end up being safe and not sorry.

Now you can manage and maintain networks of multiple SKUs and multiple distribution points through a fl exible, scalable, hub-based fulfi llment system. You can respond quickly to changing market conditions through a distribution network that gives you the speed and precision of local sourcing. And you can reap the ultimate benefi ts of world-class fulfi llment resources:

• Improved warehouse, inventory, and transportation management.• Late order cut-off, emergency, and pick-pack-ship capabilities through

outsourced warehouse network.• Rapid replenishment on short-cycle fashion items.• Higher order accuracy and very reliable on-time shipment and delivery.• Deliver service levels that are supported by the reliability of FedEx. • Increased inventory turns and decreased inventory carrying costs.• Improved fi ll rate.• Lower overall supply chain costs.• Better asset utilization. • Minimal production downtime.• The “added value” that makes for added profi ts.

Includes features of service and locations scheduled for Summer 2003 release.Includes features of service and locations scheduled for Summer 2003 release.

Extend your coverage, and improve your performance. By utilizing the FedEx Supply Chain Services fulfi llment network of strategically placed distribution locations, you can extend your coverage and improve customer service in all aspects of your business.

The map below designates the locations of the distribution centers, optimally located around FedEx hubs and supported by integrated order/inventory visibility. This lets you provide your customers with reliable FedEx shipping and delivery performance without you having to invest in warehousing, fulfi llment facilities, labor costs, and a technology infrastructure.

The maps on the facing page indicate the specifi c regions that can be serviced by one- or two-day service using FedEx Ground or FedEx Freight from the respective network distribution location. With “normal” delivery in one or two days, your customers will think you’ve built a top-notch fulfi llment and distribution network. You’ll know that FedEx Supply Chain Services is providing the superior performance features that help you fulfi ll your customers’expectations.

49687-AP2 2 6/9/03, 3:15:27 PM

Page 3: Seamless fulfillment

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NENV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Fulfi llment Network Locations

Chicago

Houston

Indianapolis

Memphis

Nashville

Reno

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Nashville Coverage

1 Day Service

2 Day Service

Using FedEx Ground or FedEx Freight.

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Chicago / Memphis Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL

IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Indianapolis / Memphis Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Nashville / Chicago Coverage

AL

AZAR

CA CO

CT

DE

FL

GA

ID

IL IN

IA

KSKY

LA

ME

MD

MA

MI

MN

MS

MO

MT

NE

NV

NH

NJ

NM

NY

NC

ND

OH

OK

OR

PA

RI

SC

SD

TN

TX

UT

VT

VA

WA

WV

WI

WY

Reno / Memphis Coverage

When being safe means being sorry.Better to be safe than sorry, right? Not in apparel supply chain management, where “safe” means having too much inventory and “sorry” means paying for it. Maintaining safety stock and overstocking your distribution channels show a lack of faith in your supply chain. That’s when you call FedEx Supply Chain Services and end up being safe and not sorry.

Now you can manage and maintain networks of multiple SKUs and multiple distribution points through a fl exible, scalable, hub-based fulfi llment system. You can respond quickly to changing market conditions through a distribution network that gives you the speed and precision of local sourcing. And you can reap the ultimate benefi ts of world-class fulfi llment resources:

• Improved warehouse, inventory, and transportation management.• Late order cut-off, emergency, and pick-pack-ship capabilities through

outsourced warehouse network.• Rapid replenishment on short-cycle fashion items.• Higher order accuracy and very reliable on-time shipment and delivery.• Deliver service levels that are supported by the reliability of FedEx. • Increased inventory turns and decreased inventory carrying costs.• Improved fi ll rate.• Lower overall supply chain costs.• Better asset utilization. • Minimal production downtime.• The “added value” that makes for added profi ts.

Includes features of service and locations scheduled for Summer 2003 release.Includes features of service and locations scheduled for Summer 2003 release.

Extend your coverage, and improve your performance. By utilizing the FedEx Supply Chain Services fulfi llment network of strategically placed distribution locations, you can extend your coverage and improve customer service in all aspects of your business.

The map below designates the locations of the distribution centers, optimally located around FedEx hubs and supported by integrated order/inventory visibility. This lets you provide your customers with reliable FedEx shipping and delivery performance without you having to invest in warehousing, fulfi llment facilities, labor costs, and a technology infrastructure.

The maps on the facing page indicate the specifi c regions that can be serviced by one- or two-day service using FedEx Ground or FedEx Freight from the respective network distribution location. With “normal” delivery in one or two days, your customers will think you’ve built a top-notch fulfi llment and distribution network. You’ll know that FedEx Supply Chain Services is providing the superior performance features that help you fulfi ll your customers’expectations.

49687-AP2 2 6/9/03, 3:15:27 PM

Page 4: Seamless fulfillment

*Inbound visibility is dependent on the information provided by the customer.

When you fi ll orders, you’re fulfi lling expectations.Are you meeting your customers’ requirements for speed and accuracy? Have you given them a greater sense of confi dence? Have you helped them fulfi ll their customers’ expectations? Because that’s how you’ll be judged. FedEx Supply Chain Services helps you go beyond their expectations, with services that make fulfi llment one seamlessly integrated operation. For instance, synchronicity happens only when everyone is working with the same information. FedEx Supply Chain Services gives you that capability with electronic linkages up and down the supply chain. Customers, vendors, suppliers, and end users now have internally standardized communications confi gured to your method of business. In fact, fl exibility is a hallmark of this service. We integrate your business rules to seamlessly manage and execute your fulfi llment operations. And by leveraging the worldwide FedEx transportation and information infrastructures, you will have the visibility and insight to gain more control over the planning and forecasting of your business.

In short, you, the customer, feel sure instead of unsure, confi dent instead of anxious. And that’s a real feeling of fulfi llment.

To add effi ciency, subtract complexity.Simple arithmetic will tell you that the less you spend to fi ll orders, the more profi table you’ll be. That’s why we simplify the whole process for you. In a world of relentless competition, tight cash fl ow, shrinking margins, speed-to-market pressures, and on-line shopping, cutting capital and operating costs is the key to staying competitive.

FedEx Fulfi llment Services makes it real simple. It’s an outsourced service that may reduce or eliminate the need for capital investment in your fulfi llment infrastructure. Suddenly, order, warehouse, and inventory management become less of an expense. The long-term labor commitment for pick, pack, and ship is gone. Even returns are no longer an issue because we handle return logistics as well. Best of all, you, your partners, and your customers are always “in the loop” with customized dashboard details of real-time data the way you need to see it.

It’s the kind of focus that turns “business as usual” into unusual effi ciency. So that in the end, you can simply be more profi table.

To learn more about the fulfi llment offering provided by FedEx Supply Chain Services, call 1.800.543.7657, or visit fedex.com.

FedEx Fulfillment ServicesApparel

When consumers enter a store full of beautiful apparel, they have little idea of the complexities involved in getting it there. They don’t see the relentless competition from big retailers and new arrivals that make brand differentiation and pricing strategies harder than ever. Nor do they witness the careful balancing act apparel manufacturers must perform to synchronize overseas production and local sourcing, especially as cycle times get shorter. Then, too, while consumers can have fun with Web surfi ng and e-mail, manufacturers must fi gure out how to capitalize on the Internet as a tactical business tool for sales and distribution. And if that weren’t enough, there are the ever-present realities of fl uctuating commodities prices, overseas labor rates, and the fast pace of an industry that changes with the seasons.

Many challenges, many needs—for cost-cutting, integration, visibility, planning, speed, reliability, effi ciency, and plain old expertise. The very benefi ts, in fact, which we bring to the apparel industry.

The fulfi llment services offered by FedEx Supply Chain Services allows makers of apparel to focus on their core competencies while FedEx provides custom-ized, cost-effective distribution solutions to extend coverage, reduce trans-portation and warehousing costs, and enhance overall supply chain effi ciency. Now there is a solution from FedEx that provides:

• Fast, accurate pick, pack, and ship functions.• Higher inventory velocity and lower inventory carrying costs.• Capitalizing on the Internet as a distribution channel.• Planning for seasonal demand, short-lived fashions, and short shelf life.• Complete supply chain visibility for inbound,* outbound, and

static inventory.• Improved returns management.• Web-based dashboard details of activity status.

If you need single-point access to a supply chain that expands and contracts with your business, FedEx Supply Chain Services could be the perfect fi t.

Seamless fulfillment.

Includes features of service and locations scheduled for Summer 2003 release.

2572FC© 2003 FedEx. All rights reserved.Includes features of service and locations scheduled for Summer 2003 release.

1. Order is sent to FedEx via XML, Internet, customer calls, EDI and is processed by the FedEx Order Management System.

2. Order information is sent from FedEx Information Network and the visibility, connectivity, business rules, order administration functions are applied.

3. Order is transmitted to the appropriate DC. The order is processed, picked and packed and shipped to the end customer.

4. The package is picked up by FedEx, scanned, and delivered to the end customer. 5. The FedEx customer is billed for the order. 6. If the end customer decides to return the product, the returns are processed in reverse order and

delivered to the appropriate network distribution center.

1 2

4

5 Returns

Flow of informationFlow of goods

FedEx Fulfi llment Services

Customer OrderManagementSystem

Supplier

DistributionCenter 3

DistributionCenter 4

DistributionCenter 2

DistributionCenter 1

Technology Functionality• Visibility: Complete inventory and order visibility across multiple facilities through

network capabilities.• Connectivity: Operations and IT support infrastructure in place across multiple partners

and locations.• Automated Business Rules: Executes processes, fl ags orders based on pre-set customer

requirements.• Order Management and Executions: Order process from inception to delivery.

Process integrates order management system with warehouse management systems.

EndCustomer

3

FedEx Fulfi llment Services

49687-AP2 1 6/9/03, 3:15:25 PM