Effective Inventory Management Inc

Effective Inventory Management Inc - Description

EIM brPage 2br 7KLV57347UHSRUW57347LV57347WKH5734757536UVW57347LQ57347D57347VHULHV57347RI57347ZKLWH57347SDSHUV57347GHVLJQHG57347WR57347KHOS57347IRUZDUG57360WKLQNLQJ GLVWULEXWRUV57347LQFUHDVH5 ID: 25143 Download Pdf

116K - views

Effective Inventory Management Inc

EIM brPage 2br 7KLV57347UHSRUW57347LV57347WKH5734757536UVW57347LQ57347D57347VHULHV57347RI57347ZKLWH57347SDSHUV57347GHVLJQHG57347WR57347KHOS57347IRUZDUG57360WKLQNLQJ GLVWULEXWRUV57347LQFUHDVH5

Similar presentations


Download Pdf

Effective Inventory Management Inc




Download Pdf - The PPT/PDF document "Effective Inventory Management Inc" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.



Presentation on theme: "Effective Inventory Management Inc"— Presentation transcript:


Page 1
Effective Inventory Management, Inc. EIM
Page 2
7KLVUHSRUWLVWKHUVWLQDVHULHVRIZKLWHSDSHUVGHVLJQHGWRKHOSIRUZDUGWKLQNLQJ GLVWULEXWRUVLQFUHDVHHIFLHQF\FXVWRPHUVHUYLFHDQGSURWDELOLW\ZLWKVPDUWLQYHQWRU\ PDQDJHPHQWVWUDWHJLHVEDVHGRQWULHGDQGSURYHQPHWKRGVDQGEHVWSUDFWLFHV

:HYHZRUNHGZLWKWKRXVDQGVRIGLVWULEXWRUVWKURXJKRXWWKHZRUOG7KHVHUPVKDYHGLVWULEXWHGQHDUO\HYHU\W\SHRISURGXFW LPDJLQDEOH'HVSLWHWKHYDULHW\RIWKHLUORFDWLRQVDQGLQGXVWULHVZHYHIRXQGZKHQZHVWDUWWRZRUNZLWKWKHVHGLVWULEXWRUVWKDW

WKH\W\SLFDOO\KDYHYHU\VLPLODULQYHQWRU\UHODWHGSUREOHPV 7KH\ KDYH WRR PXFK RI VRPH SURGXFWV 7KLVH[FHVVLQYHQWRU\DQGGHDGVWRFNOHDGVWRGHFUHDVHGWXUQRYHU DQGSURWDELOLW\ 7KH\ H[SHULHQFH VWRFNRXWV RI RWKHU SURGXFWV 7KLVUHVXOWVLQEDFNRUGHUVORVWVDOHVDQGGLVVDWLVHGFXVWRPHUV 7KH\ GRQW NQRZ ZKDW LV LQ VWRFN

7KHRQKDQGTXDQWLW\LQWKHLUFRPSXWHUV\VWHPGRHVQRWDJUHHZLWKZKDWLVDFWXDOO\ 7KH\ FDQW QG PDWHULDO LQ WKHLU ZDUHKRXVH 7KH\NQRZWKHPDWHULDOLVRXWWKHUHVRPHZKHUHEXWWKH\GRQWNQRZ H[DFWO\ZKHUHLWLVORFDWHG

$VDUHVXOWPDQ\GLVWULEXWRUVGRQWKDYHFRQWURORIWKHLULQYHQWRU\,QIDFWWKH\IHHOWKDWWKHLULQYHQWRU\LVFRQWUROOLQJWKHP,I\RX DUHLQWKLVVLWXDWLRQSOHDVHGRQWJLYHXS$FKLHYLQJHIIHFWLYHLQYHQWRU\PDQDJHPHQWGRHVQRWUHTXLUHD3K'RU+HUFXOHDQHIIRUWV

DYDLODELOLW\ZLWKWKHDPRXQWRIHDFKLWHPWKDWZLOOPD[LPL]HWKHLUFRPSDQ\VQHWSURWRUPLQLPL]HLWVWRWDO (IIHFWLYHLQYHQWRU\PDQDJHPHQWLVWKHUHVXOWRIRXWVWDQGLQJLQYHQWRU\FRQWURODQGLQYHQWRU\PDQDJHPHQW:KDWLVWKHGLIIHUHQFH

EHWZHHQLQYHQWRU\FRQWURODQGLQYHQWRU\PDQDJHPHQW",QYHQWRU\FRQWUROLVPDQDJLQJWKHLQYHQWRU\WKDWLVDOUHDG\LQ\RXU ZDUHKRXVHVWRFNURRPRUVWRUH7KDWLV .QRZLQJZKDWSURGXFWVDUHRXWWKHUHDQGKRZPXFK\RXKDYHRIHDFKLWHP

.QRZLQJH[DFWO\ZKHUHHDFKSLHFHRIHDFKSURGXFWLVORFDWHGLQ\RXUZDUHKRXVH (QVXULQJWKDWDOOLQYHQWRU\UHPDLQVLQVDODEOHRUXVDEOHFRQGLWLRQ 6WRULQJSURGXFWVWRPLQLPL]HWKHFRVWRIOOLQJFXVWRPHURUGHUV

2QWKHRWKHUKDQGLQYHQWRU\PDQDJHPHQWLVGHWHUPLQLQJZKHQWRRUGHUSURGXFWVKRZPXFKWRRUGHUDQGWKHPRVWHIIHFWLYH VRXUFHRIVXSSO\IRUHDFKLWHPLQHDFKZDUHKRXVH7KDWLVHQVXULQJWKDW\RXKDYHWKH TXDQWLW\RIWKH LWHPLQWKH ORFDWLRQDWWKH

WLPH,QYHQWRU\PDQDJHPHQWLQFOXGHVDOORIWKHDFWLYLWLHVRIIRUHFDVWLQJDQGUHSOHQLVKPHQW 7KLVLVWKHUVWLQDVHULHVRIZKLWHSDSHUVGHYHORSHGWRKHOS\RXDFKLHYH(,07KHTXHVWLRQZHDUHPRVWRIWHQDVNHGLVZKHUH

GRZHVWDUW"7KHDQVZHULVLQYHQWRU\FRQWURO8QOHVV\RXNQRZH[DFWO\ZKDWLQYHQWRU\LVLQ\RXUZDUHKRXVHDQGZKHWKHUWKDW PDWHULDOUHPDLQVLQXVDEOHFRQGLWLRQ\RXFDQWSURSHUO\GHWHUPLQHZKHQWRUHRUGHUSURGXFWV,I\RXDFWXDOO\KDYHPRUHRIDQ

LWHPWKDQWKHTXDQWLW\LQ\RXUFRPSXWHUV\VWHP\RXOOUHRUGHUWKHSURGXFWWRRVRRQDQGKDYHH[FHVVLQYHQWRU\,I\RXKDYHOHVV WKDQWKHFRPSXWHUVRQKDQGTXDQWLW\\RXZRQWUHRUGHUWKHSURGXFWZKHQ\RXVKRXOGDQGWKHUHVXOWPD\EHVWRFNRXWVDQG

FXVWRPHUVHUYLFHSUREOHPV ,QWKLVGRFXPHQWZHZLOOGLVFXVVWKHUVWVWHSVWRJHWWLQJ\RXUFXUUHQWLQYHQWRU\XQGHUFRQWURO:HZLOOKHOS\RXGHWHUPLQH ZKDWSURGXFWV\RXVKRXOGVWRFNZKDWWRGRZLWKXQZDQWHGLQYHQWRU\DQGKRZWRRUJDQL]HVWRUDJHORFDWLRQVLQ\RXUZDUHKRXVH

$V\RXLPSOHPHQWWKHIROORZLQJVWHSVREVHUYHWKHHIIHFWRQ\RXUFRPSDQ\VRYHUDOORSHUDWLRQVDVZHOODVWKHERWWRPOLQH
Page 3
:KHQ\RXVWRFNDQLWHP\RXDUHPDNLQJDFRPPLWPHQWDFRPPLWPHQWWKDWWKHSURGXFWZLOOEHDYDLODEOHLQUHDVRQDEOH

TXDQWLWLHVIRULPPHGLDWHVKLSPHQWRUGHOLYHU\WRFXVWRPHUV0RVWGLVWULEXWRUVZDUHKRXVHVDUHOOHGZLWKWZRWKLQJV VWRFNDQGVWXII6WRFNLVWKHPDWHULDO\RXLQWHQGWREHLQWKHZDUHKRXVH7KDWLVWKHLWHPVQHFHVVDU\WRPHHWRUH[FHHG

FXVWRPHUVH[SHFWDWLRQVRISURGXFWDYDLODELOLW\6WXIILVHYHU\WKLQJHOVH RI\RXUZDUHKRXVHV2XUJRDOLVWROLTXLGDWHWKHVWXIIDQGDUUDQJHWKHVWRFNLWHPVLQVXFKDZD\WRPLQLPL]HWKHFRVWRI OOLQJFXVWRPHURUGHUV

7RGHWHUPLQHZKDWSURGXFWV\RXVKRXOGVWRFNZHVXJJHVW\RXVRUWWKHLWHPVFXUUHQWO\LQDZDUHKRXVHEDVHGRQHDFKSURGXFWV DQQXDOKLWV$QQXDOKLWVUHSUHVHQWVWKHQXPEHURIWLPHVHDFKSURGXFWZDVRUGHUHGE\FXVWRPHUVWUDQVIHUUHGRUXVHGLQDQ

DVVHPEO\GXULQJWKHSDVWPRQWKVUHJDUGOHVVRITXDQWLW\ FXVWRPHURUGHUVRQHSLHFHSLHFHVRUSLHFHVRIDSURGXFWLWLVFRQVLGHUHGWREHDVLQJOHKLW:K\GRZHUDQNEDVHG

RQKLWVDQGQRWWKHWRWDOTXDQWLW\RUPDWHULDOYDOXHRUGHUHG"&RPSDUHWKHVHWKUHHLWHPV 3DUW1XPEHU $QQXDO2UGHUV+LWV 7RWDO$QQXDO4XDQWLW\2UGHUHG 7RWDO$QQXDO&RVWRI*RRGV6ROG $ % &

3DUW$KDGWKHODUJHVWWRWDODQQXDOTXDQWLW\RUGHUHGDQGFRVWRIJRRGVVROGEXWZDVRUGHUHGRQO\WZRWLPHVLQWKHSDVW

PRQWKV6KRXOGWKLVLWHPEHVWRFNHG"0DLQWDLQLQJDODUJHTXDQWLW\RIDSURGXFWWKDWLVRQO\VROGWZRWLPHVD\HDUZLOO QHJDWLYHO\DIIHFWLQYHQWRU\WXUQRYHU3HUKDSVZHFRXOGVSHFLDORUGHUWKLVSURGXFWZKHQLWZDVRUGHUHGE\DFXVWRPHU:KLOHSDUW

&KDGWKHORZHVWWRWDOTXDQWLW\RUGHUHGDQGDQQXDOFRVWRIJRRGVVROGLWZDVRUGHUHGE\FXVWRPHUVWLPHVLQWKHSDVW

\HDUMXVWDERXWRQFHDZHHN'RHVQWLWPDNHVHQVHWRVWRFNWKLVLWHP"5HPHPEHUWKDWWKHUVWSDUWRIWKHJRDORIHIIHFWLYH LQYHQWRU\PDQDJHPHQWLVWRPHHWRUH[FHHGFXVWRPHUVH[SHFWDWLRQVRISURGXFWDYDLODELOLW\$SSDUHQWO\FXVWRPHUVFRQWLQXDOO\

H[SHFWSDUW&WREHDYDLODEOH
Page 4
:HVRUWSURGXFWVLQGHVFHQGLQJVHTXHQFHE\WKHDQQXDOQXPEHURIRUGHUVDQGDVVLJQDUDQNEDVHGRQDQQXDOKLWVWRHDFKLWHP /RRNDWWKLVVDPSOHUHSRUW 3URGXFW +LWV $FFXP+LWV $FFXP 5DQN

7KHDQQXDOQXPEHURIKLWVIRUHDFKLWHPLVGLVSOD\HGWRWKHULJKWRIWKHSURGXFWQXPEHU7KHQH[WFROXPQWDEXODWHVWKH

DFFXPXODWHGQXPEHURIKLWVWKURXJKWKDWLWHP)RUH[DPSOHWKHDFFXPXODWHGKLWVIRUWKHVHFRQGLWHPLQFOXGHVWKHKLWV

IRUWKHUVWDQGVHFRQGSURGXFWV7KHSHUFHQWDJHRIWRWDOKLWVUHSUHVHQWHGE\WKHDFFXPXODWHGKLWVRQHDFKOLQHLVDOVRGLVSOD\HG (DFKSURGXFWWKHQLVDVVLJQHGDSURGXFWUDQN 5DQN RI+LWV 7KHUVWRIKLWV 7KHQH[WRIKLWV

7KHQH[WRIKLWV 7KHODVWRIKLWV 1R+LWV
Page 5
)RUPDQ\RIRXUFXVWRPHUVSHUFHQWRIWRWDOKLWVFRPHIURPRQO\SHUFHQWRIWKHWRWDOSURGXFWVVWRFNHG8WLOL]LQJWKLV

DQDO\VLVH[DPLQHHDFKRIWKH'DQG;UDQNHGLWHPV7KHVHLWHPVDUHUHVSRQVLEOHIRUWKHODVWSHUFHQWRIKLWVRUKDYHKDGQR

KLWVDWDOO$VN\RXUVDOHVRUPDUNHWLQJSHRSOHZK\HDFKRQHRIWKHVHLWHPVQHHGVWRUHPDLQDVWRFNHGSURGXFW)RUH[DPSOH ,VLWDUHSDLUSDUWWKDWLVQHFHVVDU\WRVXSSRUWWKHVDOHVRIDSURWDEOHXQLW"

,VLWDSURGXFWWKDW\RXQHHGWRKDYHRQKDQGMXVWLQFDVHDYHU\SURWDEOHFXVWRPHUQHHGVLWLQDKXUU\" ,VLWVKRZVWRFN"7KDWLVSURGXFWVWKDWGRQWVHOOZHOOEXWDUHQHFHVVDU\WRGHPRQVWUDWHWRFXVWRPHUVWKDW\RXFDUU\DIXOOOLQH"

,IDQLWHPIDOOVLQWRRQHRIWKHVHFODVVLFDWLRQVLWLVSUREDEO\QRWJHQHUDWLQJDSURWIRU\RXUFRPSDQ\7KHVDOHVRIWKHRWKHULWHPV

LWVXSSRUWVPXVWEHDEOHWRJHQHUDWHHQRXJKSURWWRFRYHUWKHFRVWRIFDUU\LQJHDFKRIWKHVHSURGXFWV,IWKHUHLVQWDYDOLG UHDVRQIRUFDUU\LQJRQHRIWKHVHSURGXFWVGLVFRQWLQXHWKHLWHPDQGSXWLWVUHPDLQLQJLQYHQWRU\LQWKHVWXIIFDWHJRU\

:KDWGR\RXGRLI\RXUFRPSXWHUV\VWHPGRHVQRWNHHSWUDFNRIWKHQXPEHURIWLPHVHDFKSURGXFWKDVEHHQRUGHUHG"'RQW ZRUU\7KHUHLVDQRWKHUPHWKRGIRUVHSDUDWLQJWKHVWRFNIURPWKHVWXII'HWHUPLQHLQKRZPDQ\RIWKHSDVWPRQWKVDQLWHP

KDGSRVLWLYHXVDJHDFWLYLW\WKLVLVXVXDOO\YHU\HDV\WRGRZLWKDUHSRUWJHQHUDWRURULQD0LFURVRIW ([FHO VSUHDGVKHHW,ID

SURGXFWKDGVDOHVLQWKUHHRUIHZHURIWKHSDVWPRQWKVDQGLVQRWDVHDVRQDOLWHPTXHVWLRQZK\LWVKRXOGEHUHWDLQHGLQ LQYHQWRU\

2QFHZHKDYHVHSDUDWHGWKHVWRFNIURPWKHVWXIILQ\RXUZDUHKRXVH\RXQHHGWRVWDUWJHWWLQJULGRIWKHXQZDQWHGLQYHQWRU\

,QGRLQJVRUHPHPEHUWKDWLQYHQWRU\LVQRWZRUWKZKDW\RXSDLGIRULW,WLVZRUWKZKDWVRPHRQHLVZLOOLQJWRSD\\RXIRULW:H

KDYHDVLPSOHUXOHIRUJHWWLQJULGRIVWXII7KHPRUHZHJHWIRULWWKHEHWWHUEXWDQ\WKLQJ\RXJHWDERYHWKHFRVWRIOLTXLGDWLRQ LVIRXQGPRQH\0RVWVXFFHVVIXOGLVWULEXWRUVKDYHDGRFXPHQWHGSODQIRUOLTXLGDWLQJVWXII$PRQJWKHVWUDWHJLHVWKDWKDYH

SURYHGVXFFHVVIXO 7UDQVIHU WKH H[FHVV VWRFN WR DQRWKHU FRPSDQ\ ORFDWLRQ ZKHUH WKH LQYHQWRU\ LV QHHGHG $SURGXFWPD\EHGHDGLQ RQHEUDQFKEXWVWLOODFWLYHLQDQRWKHUORFDWLRQ:K\VSHQGPRQH\WREX\PRUHRIWKHSURGXFWZKHQ\RXYHDOUHDG\LQYHVWHGLQ

LQYHQWRU\WKDWLVJDWKHULQJGXVWDWDQRWKHUFRPSDQ\ORFDWLRQ"7KLVRSWLRQLVSDUWLFXODUO\DWWUDFWLYHLIWKHFRVWRIWUDQVSRUWLQJWKH SURGXFWEHWZHHQEUDQFKHVLVDVPDOOIUDFWLRQRIWKHYDOXHRIWKHLWHP 5HWXUQ PDWHULDO WR WKH YHQGRU

7KHDFWXDOGHVLUDELOLW\RIWKLVRSWLRQYDULHVZLWKHDFKYHQGRU6RPHYHQGRUVDUHYHU\ JRRGDERXWDFFHSWLQJUHWXUQV2WKHUVDVVHVVVRPDQ\FKDUJHVDQGFRQGLWLRQVWKDWUHWXUQLQJPDWHULDOLVQRWDIHDVLEOHRSWLRQ

5HPHPEHUWKDWWKHEHVWWLPHWRQHJRWLDWHWKHWHUPVIRUWKHUHWXUQRIPDWHULDOZLWKDYHQGRULVEHIRUH\RXLVVXHDODUJHSXUFKDVH RUGHU7UDLQ\RXUEX\HUVWRFRQWLQXDOO\UHPLQGWKHLUVXSSOLHUVRIWKHPDWHULDOWKH\ZRXOGOLNHWRUHWXUQ 5HGXFH WKH SULFH WR PRYH WKH H[FHVV LQYHQWRU\

5HWDLOVWRUHVGRLWZK\FDQW\RX"7KLVVWUDWHJ\ZRUNVZKHQFXVWRPHUV KDYHVRPHGLVFUHWLRQDVWRZKLFKRIVHYHUDOLWHPVWKH\ZLOOSXUFKDVH)RUH[DPSOHDFXVWRPHUPLJKWSXUFKDVHDGLVFRQWLQXHGVLQN

LIWKHSULFHLVVXEVWDQWLDOO\ORZHUWKDQDVLPLODULWHPIURPQRUPDOVWRFN 2IIHU \RXU VDOHVSHRSOH PRQHWDU\ RU VRPH RWKHU LQFHQWLYH WR VHOO WKH SURGXFW /LNHUHGXFLQJWKHSULFHWKLVPHWKRG LVHIIHFWLYHZKHQDFXVWRPHUFDQFKRRVHEHWZHHQVHYHUDOSURGXFWVWKDWZLOOPHHWKLVRUKHUQHHGV6RPHWLPHVLWLVDOPRVW

PLUDFXORXVKRZIDVWLQYHQWRU\FDQPRYHZKHQVDOHVSHRSOHDUHSURYLGHGZLWKWKHSURSHULQFHQWLYH $GYHUWLVH WKH DYDLODELOLW\ RI WKLV PDWHULDO WR RWKHU VXSSOLHUV 6HDUFKIRU,QWHUQHWVLWHVWKDWVSHFLDOL]HLQOLTXLGDWLQJPDWHULDO

XVLQJWKHZRUGVVXUSOXVLQYHQWRU\DQGWKHQDPHRIWKHSURGXFWOLQHWKDWFRQWDLQVWKHPDWHULDO\RXZDQWWRGLVSRVHRI7KH ,QWHUQHWLVSDUWLFXODUO\HIIHFWLYHIRUOLTXLGDWLQJPDWHULDOZKHQWKHUHDUHDODUJHQXPEHURISRWHQWLDOFXVWRPHUV$SURGXFWPD\QR

ORQJHUEHSRSXODULQ\RXUPDUNHWEXWVWLOOEHQHHGHGHOVHZKHUH
Page 6
6XEVWLWXWH WKH SURGXFW IRU OHVV H[SHQVLYH LWHP 6XSSRVH\RXVHOOZDWHUKHDWHUV $ZLWKWKHPRGHO$WKDWRIIHUVHDVLHUDFFHVVWRWKHKHDWLQJHOHPHQWRULVPRUHHQHUJ\HIFLHQW

WKLVGLVFRQWLQXHGJDOORQKHDWHULQVWRFN1DWXUDOO\FRQWUDFWRUVRUGHULQJDJDOORQKHDWHUZDQWWKHQHZPRGHO%XWZKHQD

FXVWRPHURUGHUVDJDOORQKHDWHUZK\QRWRIIHUKLPRQHRIWKHGLVFRQWLQXHGJDOORQKHDWHUVDWWKHSULFHRIDJDOORQXQLW" 'RQDWH WKH PDWHULDO WR QRQSURW RUJDQL]DWLRQ &DQDVFKRROFKXUFKRUFKDULW\XVHVRPHRI\RXUGHDGRUVORZPRYLQJ

LQYHQWRU\"7KLVDOWHUQDWLYHLVHVSHFLDOO\DWWUDFWLYHIRUVXEFKDSWHU&FRUSRUDWLRQVLQWKH8QLWHG6WDWHV7KHVHFRPSDQLHVFDQWDNH DGHGXFWLRQRIXSWRWZLFHWKHFRVWRIWKHLQYHQWRU\7DONWR\RXUDFFRXQWDQWRUWD[DGYLVRUIRUGHWDLOVDQGUHVWULFWLRQVFRQFHUQLQJ

PDWHULDOGRQDWLRQV$JRRGVRXUFHIRUQGLQJRUJDQL]DWLRQVWKDWFDQXVHZKDW\RXKDYHWRRIIHULVWKH1DWLRQDO$VVRFLDWLRQIRU

WKH([FKDQJHRI,QGXVWULDO5HVRXUFHV0F&OXUH6W*DOHVEXUJ,/RUZZZQDHLURUJ ,I \RX DUH VKRUW RI VSDFH WKURZ DZD\ PDWHULDO WKDW FDQW EH OLTXLGDWHG

(YHQLI\RXGRQRWUHFHLYHDQ\SD\PHQWWKH IUHHVSDFH\RXJDLQLQ\RXUZDUHKRXVHPD\PDNHWKHHIIRUWZRUWKZKLOH$UH\RXQRZWULSSLQJRYHUXQZDQWHGPDWHULDODV\RX OORUGHUVIRUSRSXODUSURGXFWV"

0RVWGLVWULEXWLRQZDUHKRXVHVXWLOL]HDWUDGLWLRQDOPDWHULDOOD\RXW7KDWLVDQHQWLUHSURGXFWOLQHLVORFDWHGLQRQHDUHDDQGVLPLODU SURGXFWVDUHVWRFNHGQH[WWRRQHDQRWKHU 3ODVWLF)LWWLQJV %U\HU3URGXFWV 0XUSK\3URGXFWV &DWHV3URGXFWV &ODLUPRQW3URGXFWV :HGJH3URGXFWV 6PLWK3URGXFWV -RQHV3URGXFWV )LWWLQJV &KHPLFDOV

6KLSSLQJDQG6WDJLQJ$UHD 7KLVW\SHRIPDWHULDORUJDQL]DWLRQLVDSSURSULDWHZKHQFXVWRPHUVOOWKHLURZQRUGHUV$VDQH[DPSOHFRQVLGHU\RXUORFDOJURFHU\ VWRUHRUVXSHUPDUNHW WRRQHDQRWKHU SLFNLQJGRFXPHQWVRUEHLQJGLUHFWHGE\UDGLRIUHTXHQF\5)EDUFRGHHTXLSPHQW

+RZHYHUWUDGLWLRQDOZDUHKRXVHRUJDQL]DWLRQJUHDWO\LQFUHDVHVWKHFRVWRIOOLQJRUGHUV$IWHUDOOPRVWSURGXFWOLQHVFRQWDLQLWHPV

DVVLJQHGWRVHYHUDOSURGXFWUDQNVEDVHGRQKLWVRUWKHIUHTXHQF\DQLWHPLVRUGHUHG)RUH[DPSOHORRNDWWKHVHYHSURGXFWV LQWKH6LPSVRQOLQH 5DQN+LWV

3URGXFW%KDVDQ$UDQNDQGLVIUHTXHQWO\SLFNHG7KHLWHPQH[WWRLW&KDVQRWEHHQSLFNHGDWDOOLQWKHSDVW\HDU,ID

ZDUHKRXVHLVRUJDQL]HGZLWKDWUDGLWLRQDOOD\RXWWKH$UDQNHGLWHPVWKDWDUHSLFNHGPRVWRIWHQZLOOEHVWRUHGZLWKVORZPRYLQJ SURGXFWVLQWKHVDPHSURGXFWOLQHDQGVFDWWHUHGWKURXJKRXWWKHZDUHKRXVH$VDUHVXOW\RXUSLFNHUVPD\KDYHWRWDNHDWRXURI

WKHHQWLUHZDUHKRXVHHYHU\WLPHWKH\OOFXVWRPHURUGHUV
Page 7
ORFDWLRQLVDQ\GHVLJQDWHGVWRUDJHDUHDIRUDSURGXFW,I\RXORFDWHDOO$UDQNHGSURGXFWVUHJDUGOHVVRIWKHLUSURGXFWOLQHWKDW

KDYHWKHVDPHVWRUDJHUHTXLUHPHQWVLQWKHPRVWDFFHVVLEOHELQORFDWLRQV\RXUHPSOR\HHVZLOOVSHQGPRUHWLPHSLFNLQJRUGHUV DQGOHVVWLPHZDONLQJDURXQG\RXUZDUHKRXVH&RQVLGHUWKHIROORZLQJUDQNEDVHGZDUHKRXVHOD\RXW 6XUSOXVDQG%XON 6WRUDJH 6ORZHVW0RYLQJ 3URGXFWV )DVW0RYLQJ3URGXFWV )DVWHVW0RYLQJ3URGXFWV

6KLSSLQJDQG 6WDJLQJ$UHD 6ORZ0RYLQJ 3URGXFWV 7KHIDVWHVWPRYLQJSURGXFWVDUHORFDWHGFORVHVWWRWKHVKLSSLQJVWDJLQJDQGUHFHLYLQJDUHDLQWKHORZHUULJKWRIWKHGLDJUDP

$VWKHQXPEHURIKLWVIRUHDFKSURGXFWGHFUHDVHVWKDWLVWKHOHVVIUHTXHQWO\LWLVSLFNHGLWVDFFHVVLELOLW\UHODWLYHWRWKHVKLSSLQJ

DQGVWDJLQJDUHDGHFUHDVHV7KHUHVXOW7KHPDMRULW\RI\RXUSLFNLQJDFWLYLW\LVSHUIRUPHGLQDUDWKHUVPDOODUHD+RZZLOO\RXU SLFNHUVQGWKHPDWHULDOLIVLPLODUSURGXFWVDUHQRWVWRUHGQH[WWRRQHDQRWKHU"3LFNWLFNHWVDQGLQIRUPDWLRQGLVSOD\HGRQ5)EDU

FRGHUHDGHUVZLOOLQFOXGHWKHELQORFDWLRQDQGLWHPVRQHDFKRUGHUWREHSLFNHGZLOOEHVRUWHGLQELQORFDWLRQVHTXHQFH HPSOR\HHVZLOOFRQWLQXDOO\EHGLUHFWHGWRZKHUHWKHQH[WSURGXFWWKH\KDYHWRSLFNLVVWRUHG

1RWHWKDWWKHPRVWDFFHVVLEOHORFDWLRQVDUHQRWQHFHVVDULO\WKRVHWKDWDUHSK\VLFDOO\FORVHVWWR\RXUVKLSSLQJDUHD+LJKVKHOYHV ORFDWHGDERYHSLFNHUVKHDGVPD\EHFORVHWRWKHVKLSSLQJDUHDEXWWKH\DUHQRWYHU\DFFHVVLEOH VWRUDJHORFDWLRQDQGGHWHUPLQHLWVDFFHVVLELOLW\

UHTXLUHPHQWV)RUH[DPSOH\RXSUREDEO\FDQWVWRUHVPDOOWWLQJVQH[WWRODUJHGLDPHWHUOHQJWKVRISLSH-XVWUHPHPEHUWKDW IRUHDFKW\SHRIUDFNLQJRURWKHUVWRUDJHPHWKRGSODFHWKHSULPDU\VWRFNLQJORFDWLRQIRUWKHSURGXFWVZLWKWKHPRVWKLWVLQWKH

PRVWDFFHVVLEOHORFDWLRQV 0RVWGLVWULEXWRUVZDQWWRJHWDOORIWKHLUIDVWHVWPRYLQJSURGXFWVLQWRWKHPRVWDFFHVVLEOHORFDWLRQV%XWDEXON\IDVWPRYLQJ SURGXFWPD\WDNHXSDGLVSURSRUWLRQDWHDPRXQWRIWKHVSDFHLQWKLVJROG]RQHRI\RXUZDUHKRXVHFURZGLQJRXWSURGXFWV

ZLWKDVLPLODUQXPEHURIKLWV7RHQVXUHWKDW\RXFDQVWRUHDOORI\RXUKLJKKLWLWHPVLQYHU\DFFHVVLEOHVWRUDJHORFDWLRQVFRQVLGHU VL]LQJWKHSULPDU\VWRUDJHORFDWLRQRIHDFKSURGXFWWRKROGVXSSO\IRUDVSHFLFQXPEHURIGD\V)RUH[DPSOH 5DQNRI3URGXFW

'D\V6XSSO\LQ3ULPDU\%LQ 'D\V 'D\V (QWLUH6WRFN4XDQWLW\ (QWLUH6WRFN4XDQWLW\ (QWLUH6WRFN4XDQWLW\
Page 8

2QHWRWZRZHHNVVXSSO\RIHDFK$UDQNHGLWHPLVW\SLFDOO\NHSWLQWKHSULPDU\SLFNLQJORFDWLRQ7KLVFDQHYHQEHDVOLWWOHDVD

RQHGD\VXSSO\IRUDYHU\EXON\KLJKYROXPHSURGXFW7KHEDODQFHRIWKHLQYHQWRU\LVPDLQWDLQHGLQEXONVWRUDJH:DUHKRXVH ZRUNHUVUHSOHQLVKLWVVWRFNIURPEXONVWRUDJHRQDSUHGHWHUPLQHGVFKHGXOHRUZKHQWKHSULPDU\ELQLVHPSW\,WLVIDUPRUH

HIFLHQWWRJRWRWKHEDFNRIWKHZDUHKRXVHRQFHDQGEULQJEDFNVHYHUDOGD\VVXSSO\RIDQLWHPWKDQWRFRQWLQXDOO\UXQEDFNDQG IRUWKOOLQJLQGLYLGXDORUGHUV

:KLOHZHOLPLWWKHDPRXQWRIVWRFNLQWKHSULPDU\ELQRI$DQG%UDQNHGLWHPVZHZLOOVL]HWKHSULPDU\ELQIRU&'DQG

;LWHPVWRKROGWKHQRUPDOPD[LPXPVWRFNTXDQWLW\$IWHUDOO\RXVKRXOGKDYHDUHODWLYHO\VPDOOTXDQWLW\RIWKHVHVORZHU PRYLQJSURGXFWV$QGWKH\DUHQRWVWRUHGLQWKHPRUHDFFHVVLEOHORFDWLRQVLQ\RXUZDUHKRXVH

,QWKLVZKLWHSDSHU\RXUHFHLYHGWKHUVWVHYHUDOVWHSVIRUDSURJUDPWRDFKLHYHHIIHFWLYHLQYHQWRU\PDQDJHPHQW:HGLVFXVVHG GHYHORSLQJ\RXUDSSURYHGVWRFNOLVWOLTXLGDWLQJXQZDQWHGLQYHQWRU\DQGGHWHUPLQLQJWKHSULPDU\SLFNLQJORFDWLRQIRUHDFKLWHP

LQ\RXUZDUHKRXVH,QWKHQH[WZKLWHSDSHUZHZLOOQLVKRXUGLVFXVVLRQRIEHVWSUDFWLFHVLQLQYHQWRU\FRQWURODVZHH[SORUHKRZ WRHQVXUHWKDWWKHRQKDQGTXDQWLW\RIHDFKLWHPLQ\RXUFRPSXWHUV\VWHPDFFXUDWHO\UHHFWVZKDWLVDFWXDOO\LQ\RXUZDUHKRXVH
Page

9
-RQ6FKUHLEIHGHULVSUHVLGHQWRI(IIHFWLYH,QYHQWRU\0DQDJHPHQW,QFDUPGHGLFDWHGWRKHOSLQJPDQXIDFWXUHUV GLVWULEXWRUVDQGODUJHUHWDLOHUVJHWWKHPRVWRXWRIWKHLULQYHVWPHQWLQVWRFNLQYHQWRU\)RURYHU\HDUV-RQKDVKHOSHG

RYHUWZRWKRXVDQGUPVLPSURYHWKHLUSURGXFWLYLW\DQGSURWDELOLW\WKURXJKEHWWHULQYHQWRU\PDQDJHPHQW-RQKDV GHVLJQHGVHYHUDOLQYHQWRU\PDQDJHPHQWFRPSXWHUV\VWHPVDQGKDVDOVRVHUYHGDVDGLVWULEXWLRQLQGXVWU\WURXEOHVKRRWHU

IRUWZRPDMRUFRPSXWHUFRPSDQLHV+HLVWKHDXWKRURIQXPHURXVDUWLFOHVDQGDVHULHVRIERRNVRQHIIHFWLYHLQYHQWRU\ PDQDJHPHQWLQFOXGLQJWKHUHFHQWO\SXEOLVKHG $IHDWXUHGVSHDNHUDWVHPLQDUVDQGFRQYHQWLRQVWKURXJKRXW1RUWK$PHULFD/DWLQ$PHULFD(XURSH$VLDDQGWKH3DFLF

5LP-RQKDVEHHQDZDUGHGWKHWLWOH6XEMHFW0DWWHU([SHUWLQLQYHQWRU\PDQDJHPHQWE\WKH$PHULFDQ3URGXFWLYLW\DQG 4XDOLW\&HQWHU+HLVDQDGYLVRUDQGJXHVWOHFWXUHULQWKH,QGXVWULDO'LVWULEXWLRQ3URJUDPDW3XUGXH8QLYHUVLW\ 0LFURVRIW'\QDPLFV

LVDOLQHRILQWHJUDWHGDGDSWDEOHEXVLQHVVPDQDJHPHQWVROXWLRQVWKDWHQDEOHV\RXDQG\RXUSHRSOHWR PDNHEXVLQHVVGHFLVLRQVZLWKJUHDWHUFRQGHQFH0LFURVRIW'\QDPLFVZRUNVOLNHIDPLOLDU0LFURVRIWVRIWZDUHVXFKDV0LFURVRIW

2IFHZKLFKPHDQVOHVVRIDOHDUQLQJFXUYHIRU\RXUSHRSOHVRWKH\FDQJHWXSDQGUXQQLQJTXLFNO\DQGIRFXVRQZKDWVPRVW LPSRUWDQW%XLOWWRZRUNZLWK0LFURVRIWWHFKQRORJLHVLWZRUNVHDVLO\ZLWKWKHV\VWHPV\RXUFRPSDQ\DOUHDG\KDVLPSOHPHQWHG%\

DXWRPDWLQJDQGVWUHDPOLQLQJQDQFLDOFXVWRPHUUHODWLRQVKLSDQGVXSSO\FKDLQSURFHVVHV0LFURVRIW'\QDPLFVEULQJVWRJHWKHU SHRSOHSURFHVVHVDQGWHFKQRORJLHVKHOSLQJLQFUHDVHWKHSURGXFWLYLW\DQGHIIHFWLYHQHVVRI\RXUEXVLQHVVDQGKHOSLQJ\RXGULYH EXVLQHVVVXFFHVV9LVLW ZZZPLFURVRIWFRPG\QDPLFV

WROHDUQPRUH :RUOGZLGH 8QLWHG6WDWHVDQG&DQDGDWROOIUHH ZZZPLFURVRIWFRPG\QDPLFV