ASN TOOLKIT

ASN Toolkit “Leveraging Supply Chain Information”

ASN “I am shipping 75 pair on the APL Holland, ETA October 1” Q: WHAT IS AN ASN A: ADVANCE SHIP NOTICE The APLL ASN Toolkit is an integrated solution that links the information flow between customers and suppliers and ensures Advanced Ship Notification (ASN) compliance. “I need 100 pair” Order

HOW THE ASN CREATES VALUE Allows for automated DC receiving and sortation (electronically sent to ERP/WMS system) Allows for automated DC receiving and sortation (electronically sent to ERP/WMS system) Improves inventory mgt by sending the ASN file directly to the order system Improves inventory mgt by sending the ASN file directly to the order system –Earlier visibility to inventory –Actual in transit inventory can be pre-allocated –Updates inventory systems for future orders Ensures higher level handling at deconsolidation facility or distribution center Ensures higher level handling at deconsolidation facility or distribution center Ensures accurate, consistent ASN compliance to avoid penalties (customer or vendor/factory) Ensures accurate, consistent ASN compliance to avoid penalties (customer or vendor/factory) Increases customer data integrity Increases customer data integrity

ASN TOOLKIT SERVICES Identify the product Identify the product –Label printing – item and carton Capture the data Capture the data –Factory scan and pack – ASN123 –APLL origin scanning (APLL cross-dock or factory) –Packing list input PO management PO management –WebLink – PO allocations over the Internet

Printing multiple label types Printing multiple label types –Carton (UCC128), part number (UPC, EAN), shoe box, etc. Label printing in factories Label printing in factories –PO required –On-site, on demand at the inner-pack, item/part, SKU (UPC/EAN), level Label printing at APLL facility Label printing at APLL facility –Economies of scale –Experience with all label types (carton, hang-tags, shoe box, sticky labels, etc.) LABEL PRINTING SERVICES

Benefits to customers and factories Data feeds to ensure correct information on labels Data feeds to ensure correct information on labels Label printing software for self printing in factories Label printing software for self printing in factories Avoid delays from 3 rd party printers Avoid delays from 3 rd party printers Eliminate label shipping costs Eliminate label shipping costs Trusted supply chain provider for label printing services Trusted supply chain provider for label printing services Ability to have scannable carton and/or product labels Ability to have scannable carton and/or product labels EDI savings EDI savings LABEL PRINTING SERVICES

FLAVORS OF ASN Creation  ASN123 Item level scan and pack - Identifies carton contents, creates carton labels at the factory  APL Cross-Dock Scanning - APLL carton label scanning at the APL cross-dock facility or directly on the factory floor (outer carton)  APL ASN Services - 3 rd party factory packing list sent to APLL to send final outbound ASN to the customer  APLL Manual Packing List Generation – APLL manual input into internal systems and electronic ASN transmitted (no labels, carton detail not required)

ASN123 - SCAN and PACK  Most accurate data capture tool  Provides earliest visibility  Enables electronic information flow between buyer and seller  Standardizes commercial documents (CI, PL)  Multiple file formats (ANSIx12, EDIFACT, flat file)

ASN 123 PACKER MODULE  Receive PO from Supplier  Define packing instructions  Standard pack, mixed pack  Update carton dimensions  Scan and pack items into shipping cartons  Validate correct SKUs and quantities  Change master pack quantity  Preprint labels  Generate outer carton label  Send electronic packing lists to APLL  Standardize packing lists across all suppliers

WEBLINK – PO MANAGEMENT  Distribute customer PO’s to suppliers electronically  Allows supplier to confirm PO receipt  Facilitates splitting of PO’s to factories (suppliers allocate to the factories)  Enables e-Packing List transmissions  Provides a customer view of PO status

KEY BENEFITS Facilitates timely PO delivery; eliminate costly need of building EDI infrastructure Facilitates timely PO delivery; eliminate costly need of building EDI infrastructure Enhances data integrity and eliminate duplicate data entry of PO information Enhances data integrity and eliminate duplicate data entry of PO information Fully integrated with ACS123; PO is only loaded once Fully integrated with ACS123; PO is only loaded once

KEY BENEFITS Enables earlier supply chain visibility Enables earlier supply chain visibility Improves vendor management Improves vendor management Provides historical PO visibility Provides historical PO visibility

KEY FEATURES - CURRENT Web-based Web-based Role-based security: customer, vendor, factory, warehouse, agent Role-based security: customer, vendor, factory, warehouse, agent View, print, export of PO information View, print, export of PO information Allow splitting of one PO to multiple factories Allow splitting of one PO to multiple factories PO status visibility PO status visibility

COMING ATTRACTIONS WIP / Production compliance – developed prototype WIP / Production compliance – developed prototype Ex-factory date negotiation – developed prototype Ex-factory date negotiation – developed prototype

ASN123 INFORMATION FLOW Consolidation Bookings, Cargo Tendering, etc. Vendor 1. Upload PO details to APL Logistics 2. Push out POs Factory 4. Allow Factory PO Download 5. Generate and print carton labels 6. Scan and upload e-P/L ASN123 - Scan and Pack 7. Upload e-P/L details to APLL for earlier visibility to inventory 3. PO Downloads Receive planned PO volumes Allocate to factories if required via WebLink Update Production Status Customer Supplier Module Packer Module WebLink Factory

Scanning Locations  Bangladesh  Brazil  Cambodia  China - 7 locations  Hong Kong  India – 3 locations  Indonesia  Korea  Malaysia  Mauritius  Mexico  Pakistan  Philippines – 2 locations  Saipan  Singapore  Sri Lanka  Taiwan  Thailand  Turkey  USA BARCODE SCANNING & LABELING LOCATIONS Additional locations pending customer demand!!!

ASN123 CUSTOMER/CONSIGNEE BENEFITS ASN Issues “Toolkit” Advantages Packing lists inaccurate or unreadable Packing lists generated from scanned data standard printed and electronic packing lists Packing lists do not match orders Packing lists created and matched directly to the PO Paper packing lists must be manually entered in customer systems Reduced data entry costs Increased data integrity Vendors unable/won’t invest to provide EDI feeds to systems No EDI required Internet connectivity low cost Factories located in countries not supported by other scanning software companies APLL can support worldwide, including W. Asia and Latin America

ASN Issues APLL Advantage Hard for vendor to allocate, distribute, and confirm factory orders Web-based allocation, distribution, and confirmation tools Difficult to create accurate packing lists and other documents Scanning increases accuracy, generates documents Expensive to build scanning and EDI capabilities Leverages existing hardware Low cost software Charge-backs for inaccurate/non-standard ASNs Creates standard and timely ASN directly to the customer ASN123 VENDOR/FACTORY BENEFITS

 Ensures complete ASN compliance  Improves ASN accuracy and timeliness  Increases carton content accuracy  Eliminates third party label printing and required lead time  Reduces corporate resources dedicated to EDI and data entry  Provides APLL support to your vendors  Provides earlier visibility  Minimal Hardware/Software Investment BENEFITS COSTSAVINGS