1. 11 th October 2012 Inventory Aging Tagging Proposal ～ KLRDC 2013 ～

2. 1 Introduction Inventory with lifespan; FIFO – First In, First Out FIFO and LIFO Methods are accounting techniques used in managing inventory and financial matters involving the amount of money a company has tied up within inventory of produced goods, raw materials, parts, components, or feed stocks. These methods are used to manage assumptions of cost flows related to inventory, stock repurchases (if purchased at different prices), and various other accounting purposes. FIFO stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold first but do not necessarily mean that the exact oldest physical object has been tracked and sold.

3. 2 Current Issue Non compliance of FIFO sticker at store side Short of Manpower Excessive Inventory Conflict of Interest Unspecific Job Scope Ordering Process Flow Aging Awareness

4. 3 Operational Cost Allocation 1 store2 OCWSRM 2,000 30 store60 OCWSRM 60,000 50 store100 OCWSRM 100,000 100 store200 OCWSRM 200,000 Store Ops Cost

5. 4 Impact of Current Issue PA Zero - Expired Item Customer Complaint Unmanageable Backroom Inaccurate Inventory LOSS Return Cost Resist to Change (Hidden Cost)

6. 5 Impact Study Source: http://www.forbes.com/sites/sageworks/2012/05/25/companies-cash-tied-up-in-inventory-slow-payers/

7. 6 Impact Study Source: http://www.forbes.com/sites/sageworks/2012/05/25/companies-cash-tied-up-in-inventory-slow-payers/

8. 7 Impact Picture

9. 8 Proposal – Short Term Store Ops Cost Centralized FIFO sticker tagging

10. 9 Proposed Process Flow W54 Carton Sticker Attach by supplier; Carton Sticker + Aging Sticker When deliver to DC

11. 10 Comparison Store Ops Cost Store Ops Cost Centralized Compliance Inconsistency Compliance

12. 11 Proposal – Long Term JIT “Just In Time”

13. BR stock Transformation – Status Visibility of merchandise 12

14. Right hand side of the DDT Every Monday Must complete 100% 13 FIFO from bottom to top FIFO Sticker – Requirements

15. 14 Sample FIFO Sticker

16. -This slide ends here – ありがとう THE END 15