Sourcing Guide

PACKING ACCURACY

What Case contents must perfectly match the purchase order and the case label Packing accurately means o No mis-mates (both shoes in the pair must be the same Product ID and size) o No substitutions (must have correct Product and size in the case) o No unplanned empty shoe boxes (the quantity in the case must match the case label) o No incomplete size runs (size runs must be complete and accurate)

No defective shoes! How Factories must have extra materials to fill in any pairs that are inspection culled PO quantity changes must be approved before shipment

Inspection Packing accuracy is a critical defect because it directly affect retail sales 1 mis-packed pair defect = the inspection batch fails the CFS or DC inspection Factory must quickly rework so the shipment will not be delayed If the rework will delay the shipment, then Brown will ship with a factory claim Violation = US$ 1.00 per pair + US$ 250 processing fee to accommodate DC rework

When Claim warning will be done till 1/1/2013 XF After 1/1/2013 XF claims will be deducted from factory payments

November 6th 2012

SG 17

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