Distribution Warehouse

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: • Cross dock – Express Flow Through • Pick and Pack • Garment on Hanger Processing • E Commerce • Inventory Control • RFID - Radio Frequency

KDS 3PL Distribution Support: • 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 BARCODE: Y N CAMBODIA JCP WEIGHT/GMT WEIGHT/CNT PP 30X18X8 PO # 2009215 STYLE 27354 SRP $19.99 INVOICE # C200803021 COLOR 4413 Invoice Date 3/8/08 CTNS 68 12 HAND FEEL? P F "L" MEASURES CORRECTLY? Y N COUNTED

CART# 1001 1002 1003

SML 36 36 36

MED

LG

XL

XXL

TOTAL 36 36 36

QTY.

UPC'S SM 047543934874 MD 047543934881 LG 047543934898 XL 047543934904 XXL 047543934911 February 2007 Market PULL 2 GMTS WAS & BURN 55% Ctn 45% Poly Woven

• Quality Assurance Audit Standards

Carton Audit Violations Examples Violation ID

Violation

1 Shortage 2 Overage 6 Incorrect UPC 7 No UPC 28 No ASN 29 No Hanger 8 Incorrect Bag Label 9 No Bag Label 10 Garment not bagged 11 Garment Folded Incorrectly

Desc Packing slip units or carton label are less units than actual carton Packing slip units or carton label exceed actual carton content Carton contents have incorrect UPC ticket Carton contents have no UPC ticket No ASN transmitted or incorrect ASN Merchandise sent on hangers must follow the VICS Guidelines Carton contents have incorrect bag label Carton contents have no bag label Carton contents are not in polybag Carton contents are not folded to style specs

Quality Assurance Documentation Carton Audit Summary - JCP ROO HSING GARMENTS/CAMBODIA Items for Comparison PO# Style# Color Total # of cartons # of cartons audited # of cartons w/ violations # of garments audited # of garments w/ violations % of violations/rejections % Quality Defect Violations: 1. V-1 = Shortage 2. V-2 = Overage 3. V-3 = Substitute size 4. V-4 = Substitute color 5. V-5 = Substitute style 6. V-6 = Incorrect UPC 7. V-7 = No UPC 8. V-15 = dirty gmt 9. V52 = mismatched Total:

ROO HSING-24 2009027 27354 674 200 3 0 108 0 0.00% 0.00%

ROO HSING-26 2009225 27367 3144 1 1 0 30 0 0.00% 0.00%

ROO HSING-26 2009205 27357X 340 13 13 0 420 0 0.00% 0.00%

Week ending: 4/11/2008 ROO HSING-27 2009208 27354 4413 112 8 0 288 0 0.00% 0.00%

ROO HSING-27 2009207 27357X 3689 13 13 4 441 19 30.77% 0.00% 6 6

7

0

0

0

0

19

Quality Results – Customer Satisfaction CHARLES KOMAR & SONS INC

YTD SUPPLY CHAIN GRADE:

September 2009 (YTD)

CHARLES KOMAR

A

A

SUPPLY CHAIN PERFORMANCE SCORECARD

INTIMATES/ACTIVE 147 205

% Landed 0.0% % Inforem 0.0%

Received as Ordered (1) % to Cost Receipts (2) Audit Failure Rate % TOTAL (3) P.O. Lead Time (4) Avg. Number of Days Routing Per Week (5) Shipment Creation( 6) First Available Day (7)

Fill Rate: Compliance $: Audit Failure Rate %: Shipping Performance: Shipping Performance: Shipping Performance: Shipping Performance:

PO TYPE

% Domestic 95.8% % Flow 4.2%

Optimal Score

Supply Chain Category

Sales Rank 2009 YTD Vendor Rank (Sales): 2008 Year End Vendor Rank (Sales):

% Import 0.0% % Other 0.0%

TOTAL

Sales

2009 25.0 15.0 15.0 10.0 10.0 15.0 10.0 100.0

Your Score 2009 YTD 24.8 14.9 13.4 10.0 10.0 13.0 4.0 89.9

Fill Rate

Sep 09

2008 YE 24.5 14.0 0.0 9.5 9.0 14.0 1.5 72.4

24.8 9.9 15.0 10.0 8.0 13.0 0.0

80.6

Compliance $

Sales TY

Sales LY

% Change

Received as Ordered (1)

Received as Orderd ECommerce Only

New Store (NS) On Time

2008

$17,888,713

$7,979,696

124.2%

98.7%

99.3%

97.8%

Shipment Packaging and Preparation $11,387

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 %

Transportation

% to Cost Receipts (2)

$5,298

0.10%

Total Audit Failures / Total Receiver Audits

Ordered Units

Verified Units

TOTAL

PBS

PREPACK

BULK

TOTAL (3)

PBS

PREPACK

BULK

TOTAL

1,191,966

1,202,243

Poor

-

8.9%

1.9%

6.1%

0/0

21 / 235

3 / 156

24 / 391

2009 YTD

888,537

895,433

Average

#DIV/0!

3.0%

0.5%

1.6%

0/0

5 / 165

1 / 219

6 / 384

Sep-09

108,432

105,230

Very Good

#DIV/0!

0.0%

0.0%

0.0%

0/0

0 / 26

0 / 23

0 / 49

PBS

2008

Number of P.O.'s

2008 2009 YTD Sep-09

Packaging - YTD Crossdock % by Pack Type

PBS

CASE

INNER

MULTI

BULK

Total

0 0 0

0 0 0

0 0 0

31 28 10

38 43 8

69 71 18

Avg. P.O. Ship Window

Avg. Number of Days Routing Per Week (5) 1.2

PBS

Report Cards

MULTI

CASE

TOTAL

0.0% 86.8% 0.0% 83.3% 0.0% 70.5% Compound Prepack Status

0.0% 0.0% 0.0%

86.8% 83.3% 70.5% Approved

JC Penney

Supplier Logistics Report Card 046490 - Charles Komar & Sons * Units Per Carton Average PREPACK CASEPACK BULK Retail - Report Summary 9 9 10 10 Year  2009  Period  09  Week  39   Thru Year  2009  Period  09  Week  39   10 9

Shipping Performance P.O. Lead Time (4)

% of P.O's: 6 days or more Lead Time

2008

8

90%

6

2009 YTD

6

78%

6

Sep-09

6

69%

6

Sustainability Metric Formal Sustainabili Statemen Energy Mgmt ty Manager t 20 15 Goal 20 2008 2009

10.0

February 85.3 B

0.0

1.1 1.3

Total

40 Kohl's Green Partner

Waste Mgmt

Sustainability Partnerships

15 -

20 -

10 -

0

10.0

10

10.0

March 94.1 A

April 96.9 A

May 64.5 D

June 97.5 A

PO First Available Day for Pickup (7)

% of Shipments

P.O. Start to Days DC Supply Chain Days Days in Transit Days types(SSC/Retail, to Store with LTL Retail includes multiple business DFW, Warehouse) Actual Ship Processing Total Carriers -4 2.7 4 6 3 2 23 13% Measurement Error Total Compliance -3 2.2 3 5 3 2 19 24% -3 3.5 4 4 4 Error 2 20 4% calc) Compliance (% Weeks Net Offsets Records Records Percentage Grade Shipping Location  Missing Asn * Cartons 200939 - 200939 $0.00 0 5754 100.00% A Ave. Days YTD 2009 Volume YE 2008 Volume (Cube) Routing per  Invalid Asn Cartons 200939 - 200939 $0.00 0 5754 100.00% A (Cube) Shipping Location Week MCALESTER, OK 109,368 150,574 1.1  Contents Do Not Match22,054 Asn * Cartons 200939 - 200939 $180.00 18 5286 99.66% A SAN BERNARDINO, CA 0 1.0  Logistics Data Error ** ASNs 200939 - 200939 $0.00 0 21 100.00% A  Late Asn/Invalid Date ASNs 200939 - 200939 $0.00 0 21 100.00% A 2009 Monthly Score Tracking July August September October November December January 92.0 A 94.7 A B  Missing /80.6Invalid 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 Shipment Creation (6)