SYNERGIZING FORCES FOR BUILDING CONFIDENCE

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1 ACME INTERNATIONAL Buying, Sourcing & Inspection Company BUYER ACME INTERNATIONAL VENDOR SHIPPER SYNERGIZING FORCES FOR BUILDING CONFIDENCE 1

2 Company Profile We can best describe ourselves as a team of qualified individuals striving to add value to your supply chain. Pakistan offers a natural platform to source Home Textiles Products and Apparel worldwide owing to its inherent strengths high availability of raw materials in shape of Yarn to Finished Products, combined with a very strong infrastructure from sourcing to value-added products. Successful Ready Made Garments & Home Textile Products MANUFACTURING involves combining quality raw-materials with effective management to maintain delivery schedules and quality parameters. Our experience in handling Pakistani manufacturers along with strong market knowledge, strong and stable work-force and relations with leading progressive suppliers are what give us the advantage. As a service provider, we work diligently to pass on these benefits to your organization by adding value in the process. It is a tricky balance trying to juggle with low attractive prices offered in a developing country and meeting delivery timelines with effective quality control measures. We strike a balance by bringing the BEST VALUE to you in negotiating best prices from suppliers here but coupled with effective management of your business, hence achieving a high success rate for your purchases made through our organization. Our real benchmark is our close personal communication we build with each of our clients and then our effective execution of their business once gotten. As we grow, our focus remains unchanged. Understand each of our customer s business and find ways/means to add value, allowing them to grow and profit in return. Home Textile (Terry): Products 1- Terry Towels (Bath, Beach, Face, Fancy, Velour, Hooded, Kitchen, Wash, Tea etc.) 2- Bath Robes (Kimono, Shawl Collar, Hooded, Waffle etc.) 3- Bath Mats. 4- Shower wraps. 5- Institutional Product. 6- Slippers. 7- Gloves + Pot Holder, Oven Mitt + Pocket Mitt. 8- Fitted Sheets. 9- Terry Fabrics Etc. 2

3 Home Textile (Bedding & Etc): 1- Knitted Jersey/Terry fitted sheets 2- Jersey printed quilt cover sets (bed sets) in 100% cotton 3- Flat sheet 4- Pillow Covers 5- Napkin 6- Table Cover 7- Yellow Duster 8- Aprons etc. Textile Fabric: 1- Grey 2- Bleached & Dyed 3- Percale 4- Poplin 5- Satin 6- Twill 7- Flannel 8- Denim 9- Duck Fabric 10- Canvas Fabric etc. 3

4 Ready Made Garments : 1- Polo Shirts 2- Basic / Hooded Sweat Shirts 3- T-Shirts 4- Henley Shirts 5- Crew 6- V-Neck 7- Rompers 8- Boxer Shorts 9- Cycle Shorts 10- Jogging Suits 11- Overalls 12-Pyjama Suit 13-Night Gown 14-Cargo Pants 15-Denim (Top / Bottom) Etc. 4

5 Vendor base We qualify each supplier according to their strength when matching with each unique customer. Among other things, we focus on technical/financial resources, international compliance standards, child labor, systems, work force qualifications and integration with our group. Each vendor is evaluated on the basis of data acquisition on our prescribed format, appended below. Specimen of Vendor Profile form; VENDOR PROFILE Date Company Name Factory Add. Other Add. (If applicable) Phone Cell phone Fax Website URL Owner's Name Contact details (Pls. provide all direct ph. /cell & fax nos.) Contact person (If different then owner) Contact details (Pls. provide all direct ph./cell & fax nos.) Products detail (Pls. provide a concise & specific description of products & services you offer) Specialty product No. of machines No. of employees Production capacity/month Turn over in last 3 years (Value & Qty.) Type of machines (Pls. provide details e.g. pattern making machine, triple transport sewing,bar tack, embroidery Manufacturing system (Assembly line, individual labor etc.) Raw material source (Own vertical set up or outsource etc.) Quality control systems (Pls. elaborate what systems are in practice & how you can assure quality) Specialty offers Any other details you would like to add Note: 5

6 QUALITY PLAN Placement / Order Confirmation - Either Receive Confirmation by Fax or Written Purchase Order - Supply vendor with: 1. Colour Standard Receive Letter Pre-Production 2. Master Sample (if any) Of Credit Stage - Counter sample evaluation - Size set / PPS Evaluation - Photo / Salesman Samples evaluation - Bulk Inspection (Before Production) - First pc. Concept implementation - Trims & Accessories Check - Advise Pre-Production Status to Customer - In-Line inspection (Minimum 3 in-line insp.) Production Stage - Advise production status to customer via CRITICAL PATH - Inspection Status according to AQL 4.0 (Normal). This is minimum. - Check for workmanship, styling and Production output of suppliers. - At time when approx. 20% merchandise is Packed. - Check for correct packing, assortment and Presentation. Pre Final - Inspection Status according to AQL 4.0 Inspection (Normal). This is minimum. - Advise shipping department / customer of Expected departure schedule. Final Inspection Shipment Release Issue Inspection Certificate Receive Commission From Customer - At time when 100% merchandise is packed. - Full packing list is required. - Inspection Status according to AQL 4.0 (Normal). This is minimum. - Advise shipping department / customer of Inspection release. - Move cargo to forwarding agent, sea port Or air port. - Receive export documents from supplier for Acme International verification. - Issue inspection certificate to supplier. - Send duplicate copy of original export Documents to customer. - Advise customer of commission status for Acme International. - Receive commission from customer. Order closed 6

7 Merchandizing: PROCESS FLOW CHART Inquiry received It is reviewed by Merchandising Staff If OK It is sent to the suitable Factories for pricing In house pricing is also done for the same item If too high then factories are asked to do re-costing Pricing done in house plus the Ones that are received from the Factories are evaluated If found reasonable Sent to customer for Making decision other wise Inquiry CXLD If OK Order confirmed See separate flow chart 7

8 Product Development Effort Order Confirmation Receive P.O Otherwise get it corrected Read and Check P.O Give it to Factory Keep communicating w/customer plus factories on a regular basis Get factory started along the entire production cycle on raw material to apprise both parties on the processing, progress of the order via , accessories etc. critical path Development process Monitor & control If Not OK Check all items at the office If OK send to customer Once approves go for bulk This process is optional Need Photo / Pre-production samples As per customer requirements Acquire sample garment & Leather for testing If Not OK If Not OK Once all is clear give Go head for production Once testing is clear approve to start production Need to monitor production Along with QA Team Keep a close watch for the Shipment date as well Advise Buyer with the help of critical path Periodically update buyer via critical path Simultaneous activity Arrange Final Audit If not OK If OK Keep shipping Dept. apprise Of ship date + mode of shipment Ship goods 8

9 Date: 15/02/2007 Company M/s XYZ Status as on 10/02/2007 Critical Path Style P.O Ref. Del. Date ETD Desc. Color Qty. Cut Stitch Finished Insp. App. Failed Re- Check Pack 1234 AB/07 25/02/07 05/03/07 T-Shirt Black

10 Quality Control Work Instructions Preparation of document / order ORDER PROCESS Process after confirmation of Purchase order Forms:.Design Sheet Make Size Set / PPS. Measurement Chart (By Supplier). Style Description Order details given to. Action calendar Supplier by Acme. Master Sample (if any) Make counter sample (By Acme / Buyer) (By supplier) Size Set / PPS Comments If not OK If Not OK C / Sample Comments 2 nd Counter sample Resub. (By Acme / Buyer) (By Supplier) If OK 2 nd Counter sample Re-sub (By Supplier). 2 nd C / Sample Comments Size Set / PPS Comments (By Acme / Buyer) (By Acme / Buyer) PHOTO SAMPLE (If buyer requests) If Not OK If OK If OK CXLATN BY Photo sample comments CXLATN BY BUYER? (By Acme / Buyer) BUYER? PRODUCTION RELEASE Send Production Sample To Buyer Rec. Cmnts. IN-LINE INSPECTION (min. 3) PRE-FINAL INSPECTION (at SI) If Not OK RE-SORT CXLATN BY If not OK If OK BUYER? If OK FINAL INSPECTION (At Supplier) If OK SHIPMENT RELEASE 10

11 DIVISION READY HOME MADE TEXTILE GARMENT PRODUCTS BUYER FACTORY INSPECTOR D.T. OF INSPECTION TIME DEL. DATE AUDIT INLINE / FINAL PASSED FAILED STYLE # P.O. # ORDER QTY. SHIP. QTY. GARMENT DESC. COLOR ORDER QTY. CUT QTY. IN LINE OFF LINE PACKED QTY TTL-CTNS DESCRIPTION MAJOR MINOR DESCRIPTION MAJOR MINOR DESCRIPTION MAJOR MINOR SEWING PACKING -COLOR INCORRECT SPECS P/B (TYPE/SIZE MARKING) -SUBSTANCE NEEDLE DAMAGES HANGER (TYPE/SIZE) -SELECTION UNEVEN/BROKEN/LOSE ST. INCORRECT FOLDING -FEEL HOLES/OPEN SEAM HANG TAGS/TICKETS -SHINE PUCKERING CTN MARKING/SIZE -OPTIC UNEVEN/CROOKED PKT. UNIT PACK/ASSORTMENT -VARIATION BUTTON HOLE DEFECTS BUTTON ATT DEFECTS POOR STITCHING OTHERS POOR LINING ATT. TACKING BROKEN ZIPPERS EMBRO TRIMS -MAIN LABEL FINISHING -CARE LABEL OIL STAINS -R. N. # STAIN & DIRT MARKS -CARE INSTN POOR PRSG/SHINE MARKS - UN CUT THREAD ENDS -WRONG THREAD COLOR FOLDS -WRONG SIZE LABELLING POOR PRESENTATION -CONTENT # PCS. TO BE INSPECTED ACCEPTABLE DEFFECTIVE PCS TOTAL QTY. INSPECTED (PCS.) QTY. DEFECTIVE (PCS) % DEFECTIVE 11

12 Shipping Work Instructions Customer sends L/C Applications Acknowledgement Of L/C Application Forward L/C Application to vendor Send L/C No Review L/C Application Amendment Yes Production Start If Yes Advise shipping Pre-alert to customer Resort or Cancel Final Inspection Yes Receive Original Documents From vendor Section Issue Inspection Certificate Dispatch Documents to Customer or Forwarder OR Dispatch Documents to Customer (Bank to Bank) If Order Cancelled Send commission Note to Customer Send Received Amount NO Review Incoming Account Yes Order Closed 12

13 Inspection Certificate Specimen attached. OFFICIAL MESSAGE AI/001/07 DATED: 2/04/2007 Inspection Certificate ISSUED AGAINST L/C # 1234, INVOICE NO. 001/07 THIS IS TO CERTIFY THAT INVOICE GOODS ARE IN ACCORDANCE WITH "XYZ COMPANY" ORDERS AND HAVE BEEN INSPECTED AND APPROVED FOR SHIPMENT. WE CERTIFY THAT THEY WERE MADE IN PAKISTAN. WE ALSO CERTIFY THAT THE FOLLOWING P.O's BEING SHIPPED BY "M/s. XYZ (Pvt.) LTD, KARACHI- (PAKISTAN)"., BY "SEA" B/L NO: DATED:, GOODS HAS BEEN INSPECTED TO THE CONTRACTUAL SPECIFICATION AND/OR TYPE SAMPLE AND THAT THIS CERTIFICATE DOES NOT RELEASE THE SELLER/MANUFACTURER FROM THEIR CONTRACTUAL LIABILITIES AND RESPONSIBILITIES OF THEIR PRODUCT. SHIPMENT DETAILS AS UNDER; P.O No s.: STYLE: DESCRIPTION: QUANTITY: UNIT PRICE /PCE: NET INVOICE VALUE: NO OF CARTONS: INVOICE NO: SHIPPED: M/s XYZ (Pvt.) LTD.; WILL HOWEVER BE RESPONSIBLE FOR DEFECTIVE/SHORT MERCHANDISE RECEIVED UPON ARRIVAL AT DESTINATION. For: Acme International Authorized signature 13

14 PRE SHIPPING BOOKING ADVICE Purchase Order # Freight Forwarder: ABC Co. Ltd. Vendor / Shipper: XYZ Co. Ltd. Consignee / Customer: KLM Co. Ltd. Payment Terms: Letter Of Credit Advance CAD Others Others, Please specify: Style No. PO No. Colors Actual QTY Shipped QTY Balance QTY Feeder Name Vessel Name Lead Time Shipping Line 14

15 WHY PAKISTAN? PAKISTAN FACTS Independence from British ruled India 1947 Location/Region South Asian, sub continent Neighbors- India, China, Iran, Afghanistan Capital Islamabad (North) Sea port & largest industrial city - Karachi, population approx. 15 Million Provinces - 4 Total population 150 million approx. Language Urdu & English Currency - Rupee Core industry centers - Karachi, Lahore, Faisalabad, Sialkot Industry Agriculture, Cotton, Leather & Leather made ups, textiles & textile made ups PAKISTAN ECONOMIC PERSPECTIVE Heavy dependency - agriculture, cotton, leather Moving-value addition Home Textile & Ready Made Garment Approx. 69% of exports Abundant availability of raw material Favorable & flexible govt. policies Improving & growing investment environment PAKISTAN FUTURE FOR TEXTILE INDUSTRY Home Textile & Apparel + related value added products backbone of economy German machineries, dyes/chemical ISO & Okotex standards (Azo dyes) Large/skilled growing labor pool Competitive labor rates Possibility for quick lead- times via alliances (carry stock) Vertical infrastructure High rate of BMR (balancing, modernization, restructuring) Heavy re-investment despite global economic slowdown 15

16 MAJOR BRANDS WORKING IN PAKISTAN Gap PVH(PHILIPS VAN HUESEN) Eddie Bauer Levi s Calvin Klein Tommy Hilfiger NIKE Reebok Timberland Next C & A H & M Kaufhoff Torras Macdouglas Christian Dior Banana republic Zara Mango Wall Mart JcPenny Target 1888 Mills. Baltic West Point Stevens Dan River Macy s Zeeman KIK Family Dollar Etc. ACME ACTIVITIES Sourcing Supplier evaluation /Match making Monitor compliance Facilitate pricing and negotiation Sampling Quality control inline and final inspections Testing & approvals facilitations Monitor and facilitate export documentation Updates on production status Product development Market reports 16

17 QUALITY POLICY Quick Response Utilizing Resources effectively Act Not react. Be Pro-active Learn new concepts Inspections according to international Standards Ensuring timely delivery SUPPLIER PARTNERS KEY AREAS OF BUSINESS Apparel & Home Textile Products. Ladies & Men High Fashion ready made garments & Home textile products. SUPPLIER PARTNERS CRITERIA Existing relationship where possible & Market goodwill Flexibility & adjustment/adherence to customers need Financial strength Qualitative management Vertical integration Established in exports for years Product specialization Social compliance (human rights) awareness Quality certifications (ISO Etc.) Reputable customer base CONTACT INFORMATION: Company Name Acme International Mailing Address Plot # A - 684, Sector 11-B North Karachi, Karachi Pakistan Office Fax URL acmeintl@khi.wol.net.pk 17

Plot # A-001, Sector U -11, Gulshan-E-Maymar Karachi, Pakistan 75850, Pakistan Tel: Skype:acme.intl

Plot # A-001, Sector U -11, Gulshan-E-Maymar Karachi, Pakistan 75850, Pakistan Tel: Skype:acme.intl ACME INTERNATIONAL Buying, Sourcing & Inspection Company BUYER ACME INTERNATIONAL VENDOR SHIPPER SYNERGIZING FORCES FOR BUILDING CONFIDENCE Table Of Content - Company Profile - Product Details - Vendor