1. Li & Fung Bulk Fabric Approval Process
Speed
Quality
Consistency
Org Evolution Teams

2. Li & Fung Bulk Fabric Approval Process:
Who: Brand, Production and Li & Fung for Org Evolution Brands only What: Li & Fung will review and approve Bulk Fabric Approvals for quality, hand feel, basic wash, construction, finishing and weight as it directly compares to the approved Raw Material Form-Confirmation Why: To increase approval speed, fabric quality consistency and efficiency When: Rolling start for Fall 14 and fully in place for Spring 15 for solid knit and wovens, both non washed and basic washed programs How: By implementing a robust process that will govern and ensure fabric quality and consistency * No Change to current Color Approval Process

3. Heavily Washed/Color Loss Programs Sweater Yarns
Li & Fung Bulk Fabric Aesthetic Approval Process:
What it Covers:
Solids
Knits, non & basic wash
Woven, non & basic wash
What it Doesn’t:
Prints
Yarn Dyes & Heathers
Denim
Garment Dyes
Heavily Washed/Color Loss Programs
Sweater Yarns
*basic wash is a rinse wash w/silicone or softener w/little or no color loss
*Testing applies to all approvals

4. Li & Fung Bulk Fabric Approval Process: Ownership
Step 1:
Submission of Fabric Standard
Step 2:
Approval of Fabric Standard
Step 3:
Bulk Fabric Production Starts
Step 4:
Submission of Bulk Fabric for Approval
Step 5:
Approval of Bulk Fabric
Mill/Garment Supplier
Kohl’s Design/Brand
Mill/Garment Supplier
Garment Supplier
Li & Fung
*Submits Raw Material Form
*Fabric Development Test Report , either 3rd party or internal, submitted to Li&Fung
*Approves fabric for quality, hand feel, wash, finishing, weight, construction. This approval sets the standard for bulk production
*Li & Fung must confirm fabric meets performance standards through either internal mill report or 3rd party test report
*In cases where gmt wash is approved separately from base fabric, Kohl’s assures that wash standard is also established
*Proceeds with initial bulk production and submits Bulk Approval Form- to Li&Fung
*On basic gmt wash programs, mill sends initial bulk lots to garment supplier for wash execution and sends to Li&Fung for approval quality approval
*Submits bulk fabric to 3rd party testing lab along with the Raw Material Form – Confirmation
*Mill should not ship bulk fabric until they have an approved test report or a waiver from Kohl’s or Li&Fung along with a Bulk Approval for color and quality from Li&Fung or Kohl’s. **This is mandatory for high risk & consolidation fabric as identified by Kohl’s
* Post color approval, Li&Fung MR compares Bulk Approval Form –to approved Raw Material Confirmation Form . If matching, Li& Fung approves for bulk production and sends the Bulk Fabric Approval swatch to Kohl’s color office marked “L&F approved for Quality for Kohl’s reference only”