single source provider, we provide the advantage of convenience, accountability and speed. Our
comprehensive kitting and assembly services provide a quality one-stop resource for any
international channel. Our kitting and assembly services include light assembly, specialized
kitting and supplier-consigned inventory hub either in our distribution facilities or co-located
elsewhere. We also offer customized light manufacturing and supplier relationship management
(SRM).
We will work with clients to re-sequence certain supply chain activities to aid in an
inventory postponement strategy. We can provide kitting and assembly services and build-to-stock
thousands of units daily to stock in a Just-in-Time (JIT) environment. This service, for example,
can entail the procurement of packaging materials including retail boxes, foam inserts and
anti-static bags. These raw material components would be shipped to us from domestic or overseas
manufacturers, and we will build the finished SKUs to stock for the client. Also included is the
custom configuration of high-end printers and servers. This strategy allows manufacturers to make
a smaller investment in base unit inventory while meeting changing customer demand for highly
customizable products.
Combining our assembly services with our supplier-owned inventory hub services allows our
clients to reduce cycle times, to compress their supply chains and to consolidate their operations
and supplier management functions. We have supplier inventory management, assembly and fulfillment
services all in one place, providing greater flexibility in product line utilization, as well as
rapid response to change orders or packaging development. Our standard capabilities include:
build-to-order, build-to-stock, expedited orders, passive and active electrostatic discharge
(ESD) controls, product labeling, serial number generation, marking and/or capture, lot number
generation, asset tagging, bill of materials (BOM) or computer automated design (CAD)
engineering change processing, SKU-level pricing and billing, manufacturing and metrics reporting,
first article approval processes, and comprehensive quality controls.
Our kitting and assembly services also include procurement. We work directly with client
suppliers to make JIT inventory orders for each component in client packages, thereby ensuring we
receive the appropriate inventory quantities at just the right time and we then turn them around
JIT to customers.
Kitting and inventory hub services enable clients to collapse supply chains into the minimal
steps necessary to prepare product for distribution to any channel, including wholesale, mass
merchant retail, or direct to consumer. Clients no longer have to employ multiple providers or
require suppliers to consign multiple inventory caches for each channel. We offer our clients the
opportunity to consolidate operations from a channel standpoint, as well as from a geographic
perspective. Our integrated, global information systems and international locations support
business needs worldwide.
Product Management and Inspection Services. We also operate a coupon management system and
product management program. Coupons are managed and activated by a unique serial number thus
significantly reducing fraudulent activity. Our capabilities also extend into salvage operations,
allowing our clients to reclaim valuable raw materials and components from discontinued or obsolete
inventory.
We operate a test and repair center where we visually inspect items for cosmetic defects.
These items are put through rigorous testing that includes: functionality, durability, accessory
inspection and packaging. Items that pass the testing are repackaged and resold with a noted
exception of open-box merchandise. Items that fail the inspection are disassembled and working
spare parts are saved for future use in repairs.
Financial Management Services
Our financial services are divided into two major areas: 1) billing, credit, collection and
cash application services for B2B clients and 2) fraud review, chargeback management and processing
and settlement credit card services for DTC clients.
Business-to-Business Financial Management. For B2B clients, we offer full-service accounts
receivable management and collection capabilities, including the ability to generate customized
computer-generated invoices in our clients names. We assist clients in reducing accounts
receivable and days sales outstanding, while minimizing costs associated with maintaining an
in-house collections staff. We offer electronic credit services in the format of EDI and XML
communications direct from our clients to their vendors, suppliers and retailers.
7