FULFILLMENT AMERICA

Performance Commitment

All employees at Fulfillment America are encouraged to value the importance of quality in their day-to-day operations. Quality training and awareness programs are periodically made available to employees on company-time. While every employee may not be able to dictate all key points of a Six Sigma operation, every employee is aware that Six Sigma is a quality-driven program, and that Fulfillment America embraces quality at the core of its operational philosophy.

Quality targets are part of the documented annual goals for management personnel; these goals are measured and re-assessed during annual reviews.

All employees are evaluated on a continuous basis against their specific job responsibilities ensuring they meet expectations and job performance is highly effective.

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Performance Metrics

The Senior management team and key personnel assigned to a customer account conduct quarterly reviews to analyze the business and performance of that customer's operations. The results of these analysis will be reviewed with the customer in a mutually determined format and frequency.

Fulfillment America employs business intelligence software to analyze key performance criteria and present this data in user friendly standard and ad hoc reports. A dashboard of key performance indicators (KPIs) is assembled to show critical metrics such as on-time performance and inventory accuracy with expected targets and Fulfillment America performance to those targets. This is an easy-to-read one-page summary with 'red, yellow and green' indicators to quickly identify potential problems (red), watch issues (yellow) and acceptable performance (green). The dashboard may also include reporting on such 'soft data' as customer satisfaction if such a measure is requested by the customer and its methodology for measurement is determined at program inception.

Performance Metrics
Service	Target Level	Notification Requirements	Frequency of Observation	Procedures
Turnaround Time	60% same day 39% within 24 hours 1% within 2 days*	When not performing target level.	Daily	Monitored to shipping manifest through online reports
Keying/Order Entry Accuracy	98% accurate	When return results indicate a problem	Daily	Return errors due to keying - undeliverable packages. Returns report
Pick, Pack, & Ship Accuracy	99.5% accurate	Any time more than random error	Daily	Picker never packs, thus giving us a second set of eyes. QC supervisor checks random packages every 15 minutes, online reports
Billing Accuracy	100% accurate	Any error incorrect	Monthly*	QC checks by Accounting dept. and Account Manager, Online report
Computer to Physical Inventory -- Counts/Accuracy	99% accurate	Cycle Count on active items investigation. Discrepancy report to client	Weekly	Cycle counts & annual physical inventory are checked, online reports
Verification of Weight/Postage Costs	Scales are calibrated weekly Best shipping methods	Any time a change occurs	Monthly	Shipping methods/rates are monitored continuously
Timeframe of Crediting Returns	24-48 hours	When not meeting standard	Daily	online reports
			*This time-frame relates to problem orders only

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Process – Driven Operations

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As a six sigma company, we are quality driven and achieve results more efficiently due to the fact that our operational activities and related resources are managed as a process.

Fulfillment America has documented its operational flow for process optimization and improvement. This process flow is shared with all department heads to be implemented across all functional areas of the company.

The process and its underlying philosophy of continual improvement are reviewed with new hires. If the process flow is updated as a result of any quality review or audit, the updated version will be distributed and reviewed with company employees.

A Few of the steps describing process-driven operations are as follows:

• Processes are documented for consistent, repeatable, effective, and efficient operations
• Procedures exist for the control of process documentation
• Quality metrics are used to manage the processes
• Preventive action is taken to address potential problems
• Corrective action is taken to address occurring problems

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Personnel Training

Fulfillment America maintains a training program inclusive of all staff within the company. The process and its underlying philosophy of continual improvement are reviewed with new hires. If the process flow is updated as a result of any quality review or audit, the updated version will be distributed and reviewed with company employees.

We provide training on the following dimensions:

• Quality Awareness training.
• Process specific training; aligned with authorized procedure and work instruction.
• Problem solving training; as it pertains to making a decision on a subject issue or a fault on a machine.
• Maintain training schedules and records of completion.

All employees are evaluated on a continuous basis against their specific job responsibilities ensuring they meet expectations and job performance is highly effective.