Operational efficiency and experience is a KDS 3PL Services hallmark.

•On Time Performance

• Accuracy and Quality Assurance
• Proactive Communication
We manage delivery to start date to
optimize your vendor scorecards!

KDS 3PL Distribution Capabilities: KDS 3PL Distribution Support:

• Cross dock – Express Flow Through
• Pick and Pack
• Garment on Hanger Processing
• E Commerce
• Inventory Control
• RFID - Radio Frequency
• Inbound / Outbound Quality Assurance
• EDI – Back Office Systems
• Supply Chain Management
• Factory and Vendor Compliance + Scorecards
• Chargeback Reduction Program
• Transportation Management Program

Our talented management and staff accomplish your goals leveraging

KDS advanced technology and KDS proven business practices.
Komar Distribution Services – San Bernardino, California
Port of Long Beach - Containers delivered same day

320,000 square foot facility

– 52 dock doors
– 25,000 pallet positions
– State of the Art Handling Equipment
– RFID
Komar Distribution Services – McAlester, Oklahoma
Equidistant Optimized for Replenishment Free Trade Zone Long Beach Land Bridge

300,000 square foot facility

– 27 dock doors
– 9,000 pallet positions
– State of the Art Handling Equipment
– RFID
Komar Distribution Services – Carteret, NJ
Port Elizabeth + Newark - Containers delivered same day

320,000 square foot facility

– 65 dock doors
– 20,000 pallet positions
– State of the Art Handling Equipment
– RFID
Process - Quality Assurance
Inbound Carton/Quality Audit
1. Purpose- To define the proper procedures for auditing cartons received at the McAlester Warehouse.

2. Scope- Audit is done on every shipment received.

Inbound Carton/Quality Audit FORM

Shipment # ROO HSING-28 Country Company UPC'S
BARCODE: Y N CAMBODIA JCP SM 047543934874
WEIGHT/GMT WEIGHT/CNT PP 30X18X8 MD 047543934881
PO # 2009215 STYLE 27354 SRP $19.99 LG 047543934898
INVOICE # C200803021 COLOR 4413 XL 047543934904
Invoice Date 3/8/08 CTNS 68 12 XXL 047543934911
HAND FEEL? P F "L" MEASURES CORRECTLY? Y N
COUNTED February 2007 Market
CART# SML MED LG XL XXL TOTAL QTY. PULL 2 GMTS WAS & BURN
1001 36 36 55% Ctn 45% Poly Woven
1002 36 36
1003 36 36
• Quality Assurance Audit Standards
Carton Audit Violations Examples
Violation ID Violation Desc
1 Shortage Packing slip units or carton label are less units than actual carton
2 Overage Packing slip units or carton label exceed actual carton content
6 Incorrect UPC Carton contents have incorrect UPC ticket
7 No UPC Carton contents have no UPC ticket
28 No ASN No ASN transmitted or incorrect ASN
29 No Hanger Merchandise sent on hangers must follow the VICS Guidelines
8 Incorrect Bag Label Carton contents have incorrect bag label
9 No Bag Label Carton contents have no bag label
10 Garment not bagged Carton contents are not in polybag
11 Garment Folded Incorrectly Carton contents are not folded to style specs
Quality Assurance Documentation
Carton Audit Summary - JCP
ROO HSING GARMENTS/CAMBODIA Week ending: 4/11/2008
Items for Comparison ROO HSING-24 ROO HSING-26 ROO HSING-26 ROO HSING-27 ROO HSING-27
PO# 2009027 2009225 2009205 2009208 2009207
Style# 27354 27367 27357X 27354 27357X
Color 674 3144 340 4413 3689
Total # of cartons 200 1 13 112 13
# of cartons audited 3 1 13 8 13
# of cartons w/ violations 0 0 0 0 4
# of garments audited 108 30 420 288 441
# of garments w/ violations 0 0 0 0 19
% of violations/rejections 0.00% 0.00% 0.00% 0.00% 30.77%
% Quality Defect 0.00% 0.00% 0.00% 0.00% 0.00%
Violations:
1. V-1 = Shortage 6
2. V-2 = Overage 6
3. V-3 = Substitute size
4. V-4 = Substitute color
5. V-5 = Substitute style
6. V-6 = Incorrect UPC 7
7. V-7 = No UPC
8. V-15 = dirty gmt
9. V52 = mismatched
Total: 0 0 0 0 19
Quality Results – Customer Satisfaction
CHARLES KOMAR & SONS INC

A
YTD SUPPLY CHAIN
CHARLES KOMAR
September 2009 (YTD) GRADE: A
SUPPLY CHAIN PERFORMANCE SCORECARD

INTIMATES/ACTIVE
Optimal Score Your Score
Sales Rank Supply Chain Category 2009 2009 YTD Sep 09 2008 YE
2009 YTD Vendor Rank (Sales): 147 Fill Rate: Received as Ordered (1) 25.0 24.8 24.8 24.5
2008 Year End Vendor Rank (Sales): 205 Compliance $: % to Cost Receipts (2) 15.0 14.9 9.9 14.0
Audit Failure Rate %: Audit Failure Rate % TOTAL (3) 15.0 13.4 15.0 0.0
PO TYPE Shipping Performance: P.O. Lead Time (4) 10.0 10.0 10.0 9.5
% Domestic % Landed % Import Shipping Performance: Avg. Number of Days Routing Per Week (5) 10.0 10.0 8.0 9.0
95.8% 0.0% 0.0% Shipping Performance: Shipment Creation( 6) 15.0 13.0 13.0 14.0
% Flow % Inforem % Other Shipping Performance:

Report Cards
First Available Day (7) 10.0 4.0 0.0 1.5
4.2% 0.0% 0.0% TOTAL 100.0 89.9 80.6 72.4

Sales Fill Rate Compliance $

Shipment
Received as Orderd E- % to Cost
Sales TY Sales LY % Change Received as Ordered (1) New Store (NS) On Time Packaging and Transportation
Commerce Only Receipts (2)
Preparation
2008 $17,888,713 $7,979,696 124.2% 98.7% 99.3% 97.8% $11,387 $5,298 0.10%
2009 YTD $14,528,055 $9,646,072 50.6% 99.4% 99.7% 99.9% $7,192 $257 0.08%
Sep-09 $1,879,115 $1,035,643 81.4% 99.1% 99.2% 99.9% $1,874 $0 0.19%

UNITS QC Audit Rank Audit Failure Rate % Total Audit Failures / Total Receiver Audits

2008
2009 YTD
Ordered Units

1,191,966
888,537
Verified Units

1,202,243
895,433
TOTAL

Poor
Average
PBS

-
#DIV/0!
PREPACK

8.9%
3.0%
BULK

1.9%
0.5%
TOTAL (3)

6.1%
1.6%
PBS

0/0
0/0
PREPACK

21 / 235
5 / 165
BULK

3 / 156
1 / 219
TOTAL

24 / 391
6 / 384
JC Penney
Sep-09 108,432 105,230 Very Good #DIV/0! 0.0% 0.0% 0.0% 0/0 0 / 26 0 / 23 Supplier Logistics Report Card
0 / 49

Number of P.O.'s Packaging - YTD Crossdock % by Pack Type Units Per Carton Average 046490 - Charles Komar & Sons *
2008
PBS
0
CASE
0
INNER
0
MULTI
31
BULK
38
Total
69
PBS
0.0%
MULTI
86.8%
CASE
0.0%
TOTAL
86.8%
PBS PREPACK
9
CASEPACK BULK
9
Retail - Report Summary
2009 YTD
Sep-09
0
0
0
0
0
0
28
10
43
8
71
18
0.0%
0.0%
83.3%
70.5%
0.0%
0.0%
83.3%
70.5%
Year  2009  Period  09  Week  39  
10
10
10
9
Thru Year  2009  Period  09  Week  39  
Compound Prepack Status Approved

Shipping Performance
Avg. Number of % of Shipments
% of P.O's: 6 days or PO First Available Day for
P.O. Start to Days DC Supply Chain Days
P.O. Lead Time (4)
more Lead Time
Avg. P.O. Ship Window Days Routing Per
Week (5)
Shipment Creation (6) Retail includes
Pickup (7) Actual Ship multiple
Days in Transit business
Processing
Days types(SSC/Retail,
to Store
Total DFW, Warehouse)
with LTL
Carriers

2008 8 90% 6 1.2 -4 2.7 4 6 3 2 23 Measurement

13% Error Total Compliance
2009 YTD 6 78% 6 1.1 -3 2.2 3 5 3 2 19 24%
Sep-09 6 69% 6 1.3 -3 3.5 4 Compliance
4 4 Error 2 20 (% 4% calc) Weeks Net Offsets Records Records Percentage Grade
Sustainability Metric Total 40  Missing Asn * Shipping Location Cartons 200939 - 200939 $0.00 0 5754 100.00% A
Formal Ave. Days
Sustainabili Waste Kohl's Green YTD 2009 Volume
ty Manager
Statemen Energy Mgmt
t
Mgmt
Sustainability Partnerships
Partner  Invalid Asn
Shipping Location
(Cube)
YE 2008 Volume (Cube)
Cartons
Routing per
Week
200939 - 200939 $0.00 0 5754 100.00% A
Goal
2008
20
-
20
-
15
-
15
-
20
-
10
-
 Contents Do Not Match22,054
MCALESTER, OK
SAN BERNARDINO, CA
Asn *
109,368 150,574
0
Cartons1.1
1.0
200939 - 200939 $180.00 18 5286 99.66% A
2009 10.0 0.0 0 10.0 10 10.0  Logistics Data Error ** ASNs 200939 - 200939 $0.00 0 21 100.00% A
2009 Monthly Score Tracking  Late Asn/Invalid Date ASNs 200939 - 200939 $0.00 0 21 100.00% A
February March April May June July August September October November December January
85.3 B 94.1 A 96.9 A 64.5 D 97.5 A 92.0 A  Missing
94.7 A /80.6Invalid
B Asn Status Code ASNs 200939 - 200939 $0.00 0 21 100.00% A
 POM PO POM POs 200939 - 200939 $0.00 0 1 100.00% A
 Missing Tms Load Id/Routing Authorizaton * Units 200939 - 200939 $0.00 0 51018 100.00% A
 TMS/ASN Accuracy ASNs 200939 - 200939 $20.00 1 21 98.81% B
 Early/Late Shipments * Units 200939 - 200939 $0.00 0 51066 100.00% A
 Multiple Shipments Against A Di Lot #s 200939 - 200939 $0.00 0 8523 100.00% A
 Bulk-Multiple Skus Per Carton Cartons 200939 - 200939 $0.00 0 862 100.00% A
 Fill Compliance (Fill Rate) Qty Ordered 200939 - 200939 $24.15 21 30392 99.93% (99.75%) A
 Point-Of-Sale Ticketing Units 200939 - 200939 $58.50 117 53355 99.78% A
 Hanger Compliance Units 200939 - 200939 $0.00 0 51774 100.00% A
 Barcode Label Compliance Cartons 200939 - 200939 $1,227.00 n/a n/a n/a n/a
 Commercial Zone (Non-Comp Deduction) Shipments 200939 - 200939 $2,475.16 8 n/a n/a n/a
 Total  $3,984.81 A