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ANALYST PRESENTATION - Adler

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Indirect sourcing remains a strategic component to cover<br />

short-term customer demand<br />

1<br />

Direct<br />

sourcing<br />

(MGB)<br />

2<br />

Indirect<br />

sourcing<br />

Sourcing<br />

Preparation<br />

of plan<br />

ADLER | <strong>ANALYST</strong> <strong>PRESENTATION</strong><br />

Preparation<br />

of plan<br />

Sampling at<br />

suppliers<br />

Order<br />

placing<br />

Timing of order process: ~28 weeks<br />

Order<br />

placing<br />

Order<br />

processing<br />

Order<br />

processing<br />

Sample<br />

finishing<br />

per article<br />

Timing of order process: ~22-24 weeks<br />

Sample<br />

finishing<br />

Control and<br />

approval of<br />

production<br />

samples<br />

Shipment<br />

Control and<br />

approval of<br />

production<br />

samples<br />

Delivery<br />

and<br />

distribution<br />

Delivery<br />

and<br />

distribution<br />

� Within direct sourcing, the order process for fall/winter collection starts in November of the prior year and then follows a structured<br />

process with delivery of merchandise at PoS in June/July<br />

� Indirect sourcing achieves shorter order process cycles as sourcing activities will be done by the importer and the majority of goods are<br />

delivered from nearer sources (e.g. Europe)<br />

� In the course of expanding its direct sourcing activities, management plans to maintain a strategic residual amount of indirect sourcing<br />

to cover the customer demand for NOS, flash and repeat items<br />

76

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