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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I I I \ (.... CONNEXTIONS ...... Fulfillment and Supply Chain Management Overview Connextions builds custom tailored solutions that consistently exceed our clients' expectations. This accomplishment requires true thought leadership, integrating all the key elements in the supply chain process and understanding the most advanced ways to plan, source, make and deliver products in a manner that always differentiates our clients from their competitors. We conceive the optimal balance between cost and service levels by managing all the key elements in the supply chain (i.e. people, process, and technology) necessary for our clients to satisfy their customers. In short, we deliver the right product to the right place at the right time. Our greatest strength continues to be the people who implement and deliver our services. These services span across a broad range of products. including: accessories and gifts, technology products, consumer electronics, vitamins/nutritionals, point-of-sale (POS) material, literature, consumer packaged goods and media products. Our fulfillment and supply chain management capabilities include: Order Fulfillment Connextions' Order Fulfillment Solution fully integrates all touch points and interactions within the order fulfillment process. We use barcode technology at various steps in the inventory management, fulfillment, and shipping process to allow our management staff, as well as clients and end users, to view fulfillment activity in real-time through our Web- based reporting and order status sites. Benefits include: . 99.99% order accuracy . Complete visibility throughout the order fulfillment life-cycle Shipping and Freight Management Connextions works with all of the major common carriers (UPS, FedEx, Airborne, and USPS) for consumer and direct shipping and LTLrfL carriers for our B2B fulfillmeut and retail distribution programs. Key capabilities include: . "Best Way" shipping . Rate shopping capabilities . Zone skipping and freight consolidation . Invoice reconciliation and claims processing Reverse Logistics Connextions maintains many options for handling the complete reverse logistics process. The major elements of our reverse logistics process are: . RMA issuance . Returns processing . Material disposition . Testing and refurbishment . Return to vendor processing . Exchange and credits/funds processing Systems aud Software Connextions uses a sophisticated Radio Frequency (RF) driven Warehouse ~anagement System (WMS) that incorporates multiple levels of security and auditing to ensure high levels of inventory accuracy. Accurate inventory control (maintained by audit, cycle counts, and physical inventory) feeds upstream to the available "to promise" inventory pipeline, ensuring that customers receive the inventory they are promised. Connextions does not rely on disconnected systems to promise and physically pick inventory. This means that whether inventory is being promised to a customer on the front-end CRM side, or the supply chain team is making purchasing decisions in the back office, accurate real-time inventory visibility is always available. -10 -