prospectus for - Pumpkin Patch investor relations

product sourcingPumpkin Patch’s continuous design philosophy results in regular orders to itsmanufacturers. Manufacturers are largely based overseas, supplemented byNew Zealand manufacturers, and are selected based on their skills, product quality,timeliness and cost. Many of the suppliers have long-standing relationships withPumpkin Patch and this assists the Company’s quality aspirations while still meeting thedemanding production timelines of an apparel company.warehousing and distributionPumpkin Patch operates a 13,395m 2 distribution centre attached to its head office inEast Tamaki, Auckland. The distribution centre serves as the global warehouse for all ofPumpkin Patch’s stores and sales. The distribution centre receives substantially allmanufactured garments and product ranges and is responsible for the daily dispatchof the products to its stores in New Zealand, Australia and the United Kingdom to itsinternational wholesale customers and to fill its internet and catalogue orders. Thedistribution centre receives, picks, packs and distributes approximately 70,000 garmentsper day. Existing facilities are expected to be sufficient for the foreseeable future.The distribution centre employs approximately 70 staff. It utilises a paperlessmanagement system which enables Pumpkin Patch to receive daily sales informationfrom each Pumpkin Patch store, individual catalogue purchases and internet sales.These are then usually dispatched the following day. The management system alsoallows packages that are sent internationally from the distribution centre to be trackedand electronically processed through various countries’ customs departments.The distribution centre is capable of handling over 30,000 SKUs (discrete lines of stock)in any given period enabling the Southern and Northern hemispheres to be servicedsimultaneously despite differing seasons and ranges.The distribution centre was leased in August 1999 for an initial term of approximately 10years with rights of renewal for a further 15 years. To provide for future development ofthe distribution centre, should the need arise, Pumpkin Patch has acquiredapproximately 20,300m 2 of undeveloped land surrounding its East Tamaki site.9