STORAGE & DISTRIBUTION SERVICE PROPOSAL. Prepared for Jade Lambert

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1 STORAGE & DISTRIBUTION SERVICE PROPOSAL Prepared for Jade Lambert Fulfillment Logistics Units 3&4 The Laurels Cribbs causeway Centre Cribbs Causeway Bristol, BS10 7TT Tel: December 2014

2 1. Fulfillment Logistics Overview 1.1 The Company Founded in 2013, Fulfillment Logistics (FLUK) supplies high quality, service orientated solutions to its clients in the core fields of storage, fulfilment, distribution and mailing. Our approach is to work in partnership with our clients to develop tailormade services which allow them to utilise otherwise committed resources for the development of their businesses. This customer-geared outlook has resulted in virtually all new business coming to us via word of mouth. We are proud of the reputation we have developed over the past years and look forward to enhancing it still further. 1.2 Business Philosophy The nature of our business is such that we are often an invisible but vital link in the supply chain. Our performance can reflect directly on the reputation and perception of our clients amongst their customers. It is a responsibility we take very seriously. Consequently, we treat each of our clients customers in the same way we treat one of our own. In so doing, we strive to produce a service that will not just complement our clients businesses, but will help facilitate their development and growth too. A fundamental tenet of this approach is that we take on business in a controlled and considered fashion. We will not take on new business unless we can service it to the high standards to which we expect to work. Likewise we do not accept new business if we feel it will have an impact on the service we offer to our existing loyal customers. We seek to work with clients on a long-term basis and will not jeopardise long-term successful relationships for short term gains. It is an approach that has served us well and one which provides peace of mind for our clients that their reputations are in safe hands.

3 1.3 Environmental Policy It is the policy of FLUK to minimize the impact its trading activities have on the environment and to conserve natural resources wherever possible. FLUK reviews its environmental policies and procedures regularly to improve their performance and quality. Cornerstone policies include: Purchasing: Wherever possible FLUK purchases items produced from sustainable sources: All paper purchased is either recycled or is produced sustainably. All cardboard cartons purchased come from sustainable sources and are at least 80% recycled All electrical items purchased are low energy Recycling: Wherever possible FLUK will recycle any materials produced as a result of our trading activity: Cardboard cartons are re-used to hold goods/materials shipped out from us. FLUK now no longer purchases any packaging materials other than some cardboard cartons. Office paper waste is collected and sent for recycling Client s surplus literature is recycled. Where such items contain plastic, the plastic items are removed so that the paper element can be recycled Our waste output for landfill has been reduced by 80% since the introduction of these policies. Operations: Fulfillment Logistics seeks to conduct business electronically wherever possible. All non-critical equipment is switched off when not needed. Fulfillment Logistics has adjusted staff shift patterns to encourage car sharing between staff members. Currently 25% of staff either car share or cycle to the office. All Fulfillment Logistics employees are made aware of this policy and their responsibilities for environmental issues.

4 1.4 Data Protection FLUK considers the protection of data of paramount importance. Key precautions taken in this respect include: Deletion of data files used for individual mailings immediately the mailing is completed. Establishment of standing authorities for each of our clients. These documents detail who within a client s organisation can request information contained on our systems and from whom FLUK can accept instruction. Should a request be received from an individual not listed in our standing client authority, FLUK will require written confirmation from an authorised person prior to releasing the information. Complete prohibition of disclosure of data to any third party irrespective of whether the request is made by one of our clients. Under such circumstances the requested data is sent to the appropriate client allowing that client to disclose the data within the parameters of the Data Protection Act. A strict requirement for written/ confirmation from the client before any data file is used for a mailing Sequencing and fragmenting data files for transmission via . Due to the insecure nature of , FLUK has the capability to sequence and subdivide data files so that the information can be securely transmitted over a series of s. It is an additional layer of security we are happy to provide clients who feel it necessary. Daily backing up of all data on our systems with a copy being kept off site. Ensuring our systems are totally protected from unauthorised access. Levels of protection include hardware firewall, McAfee and GFI Corporate Antivirus/Antispyware software, use of workstation passwords as well as database access passwords.

5 2. Infrastructure 2.1 Storage Facilities Fulfillment Logistics has a 19,000 sq ft warehouse situated in Bristol Cribbs Causeway. The warehouse provides a mix of storage options from clear floor space for pallet storage to fully racked bays. The facility itself affords clean, dry and secure storage with full fork lift capabilities and vehicle access to container size. 2.2 Systems and Data Handling FLUK has developed a bespoke, in-house stock handling and order processing system. Core functionality of the system includes: Recording of product details using customers internal SKU codes Recording of all orders and deliveries received Postcode verification of all manually input orders Electronic input of orders from clients systems via Excel/CSV/XML files irrespective of the data structure within those files Web based input of orders via secure internet portal Automatic processing of daily product shipments in light of the cheapest distribution options available Production of client branded address labels and dispatch notes Detailed event materials tracking and management capabilities Detailed mailing progress and management capabilities Full data back up with copies kept off site

6 2.3 Reporting Functions FLUK s systems produce a series of standard operational reports for clients on a daily or weekly basis. In addition, it has the flexibility to produce a vast array of customer specific reports and/or define customer specific functions. Examples of both include: Standard Reports: Provision of single page product histories showing all deliveries and shipments Automatic ing to clients on a daily basis confirming all orders shipped and all deliveries received that day in Excel/CSV or RTF formats Automatic ing to clients every Monday confirming stock levels in Excel/CSV format Example Bespoke Reports: Here at Fulfillment Logistics we are happy to tailor to any specific requirements on reports to your individual needs. We are able to provide this option due to our custom built system which gives us full flexibility on fulfilling complete customer satisfaction. In addition to the above, clients can access our web portal to view: Order histories and tracking Order status Stock levels Stock Usage

7 3. Fulfillment Logistics Standard Operational Procedures 3.1 Goods Invards All deliveries are checked on receipt to ensure that they are in good condition and that the quantities delivered match those ordered. All products including their weights, dimensions and delivery quantities are logged onto our database on receipt so that an accurate log of the items held in stock is maintained. An is sent to the client confirming every delivery received and any discrepancies relating to it. Delivery notes are indexed against our internal delivery log and filed on site. They are kept on file for a period of twelve months. Stock figures showing the physical stock on site as well as any stock required for orders pending dispatch are ed to each client every Monday morning. Where advance notification is given by the client of the products being delivered, the SKU codes to be used, the quantities due etc, FLUK seeks to receive those goods into stock within 24 hours of their physical delivery. 3.2 Order Processing FLUK can receive orders both in an electronic format for auto import into our system or in a paper based format for manual by our staff. Auto Import: Orders are received in bulk on a daily basis via a CSV/Excel/XML formatted file containing the following information: Client order number Customer address Customer Customer telephone Product codes of the items being ordered Quantity of items being ordered Manual Order Input: With manual order input, orders can be received via post, , fax or telephone. They are then manually entered into our system and postcode verified against the Post Office Address File. Alternatively, orders can be entered by our customers direct onto our system via a web portal. Once entered into our system, be that manually or automatically, the orders are batched and processed to produce dispatch notes, address labels, picking tickets and carrier bar codes if applicable.

8 3.3 Fulfillment All orders are picked on a batch basis that is to say that the items required to fulfil all of the orders in the batch are picked en masse and then sorted into individual orders for checking and packing Each order is packaged to the standards defined by the client depending on the weight, value and fragility of the items being sent Once packed, all orders are allocated to the individual carriers who will be shipping them and are caged for shipment. An is sent to each client at the end of every day giving details of the orders shipped on their behalf that day, the carrier & service used and the number of parcels shipped. 3.4 Stock taking In order to maintain and validate accurate stock levels it is necessary to carryout regular stock takes. Depending on shipping volumes this can be done annually, bi-annual or quarterly as required by the client. 4. Quality Control Fulfillment Logistics makes every effort to ensure that all data processing, picking and packing functions are error free. To ensure this we employ double-checking procedures at all critical control points in the despatch process. Key procedures include: Operatives who efficiently and accurately pick the required items, SKU scanning out each item to ensure 100% fulfillment accuracy, before carefully and securely packaging the products, ready for dispatch. Once packed and ready to go, your customers order is updated accordingly, triggering the sending of an (if required) to inform them that their order is on its way. Where stock is bar-coded, our system will not allow orders to be dispatched until the correct products have been scanned against their individual orders. This process allows orders to picked and packed error free. Where stock is not bar-coded, each order is double checked prior to sealing and addressing.

9 5. Service Costs 5.1 Pricing proposal for Small Ideas Ltd prepared 14 August 2014 Despatch Preparation Additional Insert Consumables Returns Processing Warehouse Storage Setup Shipping Miscellaneous Work Description To Include: Polythene wrapping, if required Production of paperwork to include with shipment Address labelling Insertion of letter/leaflet to order (cost is based on printing & insertion ofpredominantly text based letter on 1 sheet of A4 white paper) If not supplying your own boxes, tape, invoice/delivery note sheets etc. Processing returned items into stock or disposing, as applicable. Weekly storage charge in standard (i.e. non-chilled) conditions. Minimum charge is for half-pallet Standard, one off setup fee. To include provision of dedicated despatch station, initial stock take-on etc. Courier charges incurred Hourly rate for any additional work we undertake that is not covered by any of the above. Price Pallet = Box of 6 = 5.00 Re-boxed 12 = 8.00 Single = 2.50 Per letter, per order = 25p Cost to us + 10% Estimated costs: 10p per invoice/delivery note. 60p for standard unbranded brown cardboard box (for single item). 50p per 25m roll brown tape per single item 2.50 box of re-boxed pallet Pallet = 10 Half-pallet = per single item 2.50 box of re-boxed pallet At Cost (please see below) 20 per hour 5.2 Shipping Costs Delivery scenario 1 Delivery scenario 2 Delivery scenario 3 Delivery scenario 4 Guaranteed by 10am Guaranteed by 12 Noon Next Day Two Day Saturday Guaranteed by 10am Saturday Guaranteed by 12 Noon Saturday Anytime Palletised 2 Day N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A In all 4 scenarios the prices quoted are based on using DPD as the courier, due to the excellent levels of service, high delivery success, low lost/damaged items rate and competitive costings our clients continually receive from them. If you have a preferred courier of choice then we would of course be more than happy to work with that company.

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