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1. Nürnberger Logistik-Tag an der Georg Simon
Ohm Fachhochschule Nürnbergam 24. Oktober 2006
Supply Chain Management bei KarstadtQuelle ein
Praxisbericht Carsten WolffManaging Director
KarstadtQuelle International Services AG
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Schiff
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1. What is KQ IS AG / Noris Trading MISSION
We deliver Time Price Quality Our network and our
experience secures our common success. We provide
added value to the customers global sourcing.
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2. Organisation of the Buying Division
KarstadtQuelle AG, Essen
KarstadtQuelle IS St. Gallen
Europe
ASIA
Noris International Trading
NIT
NIT
Milan
Latvia
Hong Kong
New Delhi
Nuremberg
Istanbul
Romania
Shanghai
Bombay
St. Gallen
Dalian
Tirupur
Izmir
Hungary
Beijing
Pakistan
Hong Kong
Bulgaria
Shenzen
Vietnam
Thailand
Bangladesh
? All buying offices are managed by KQ IS AG ?
Non-group business through N.I.T.
Korea
Indonesia
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3. Selling is Local Sourcing is Global
Vilnius
Dalian
Seoul
Milan
Budapest
Beijing
Bucharest
Quingdao
Istanbul
Sophia
Shanghai
Izmir
New Delhi
Karachi
Taipei
Hong Kong
Ho Chi Minh City
Bangladesh
Bombay
Tirupur QC
Bangkok
Jakarta
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4. Buying Organisation
The standardized organisation within each office
is grouped according to the customer or relevant
products.
Bulgaria
Hongkong
Hungary
Taiwan
Italy
Lithuania
P.R. China
Turkey
Romania
South Korea
Merchandise Manager T-Shirts
M 1
M 2
M 3
Staff Merchandising

501

Supplier A
Staff QC



318

Staff Administration

254

Supplier B
Total



1073

Supplier C
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5. USPs Advantages of our Buying Offices
KarstadtQuelle offers a unique combination of
benefits for third party customers.
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6. Customer Structure
Previously established for the KarstadtQuelle
organisation, the buying offices today already
handle a substantial and growing volume for
Non-Group Customers.
Non Group Customer
Other KQ Group
Karstadt
Neckermann D
Quelle D
Total sourcing volume 2005 1,1 billion
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7. Trading volume by region and product group
Our offices combine expertise in the local
markets with fundamental product knowledge for
many merchandising groups.
Trading volume by regions
Trading volume by product groups
South-East Asia
Other
Indian Sub- continent
Other
Childrenswear
Toys
Shoes
Eastern Europe
Brown Goods
Home textiles
Hard-ware
Sports
Northern Asia/HK
Under Swimwear
PC/Telco
Textiles
Western Europe
White Goods
Menswear
House Home
Ladieswear
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8. KQ IS AG Services provided by the Buying
Offices
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9. IPOS - KQ IS AG own order system
The IPOS system constitutes the connection
between your buying department and the buying
offices.

• Features
• Up-to-date and online information about the
  status of each order
• System can be accessed by all parties involved
• Means of interaction between the buyer and the
  buying office

• Technology
• Web-based interface
• Software based on QRS/Rockport development
  (Tradeweave)
• Open system / interfaces to supplier and
  logistics systems

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10.1 Standard Core Process 1
SizeSet
Production
Inspection
Offer SampleBuying / CounterSample
Release of Buying / Counter Sample
LabDip
Production Release
Logistics Execution
Shipping Approval
Order Placement
Invoice / Payment
Offer Sheet
Lab Test
Final
In-Line Insp.
Sample
Customer
Photo
Supplier
System Support IPOS, PILOT, TargetAQM
Finance / Administration
OrderClearing
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10.2 Standard Core Process 2
Total process
Process step
Productrequest
ProducingCounter Sample
Sending Counter Sample
...
A1
A2
A3
...
Description ....................................
..................................................
..............................................
Execution ......................................
..................................................
............................................
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10.3 Standard Core Process 3 Process Overview
Order Development Textiles and Non technical
hardware

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Textiles and Non technical hardware
B
BO obtains offer by Supplier
A
Order Development
Buyers Request
C
Auctions
Product Request photo / descrip-tion /
original sample
Producing the Buying / Counter Sample
Sending the Buying / Counter Sample
Negotiations
Order Placement
Buying / CounterSample Review
1A1
1A2
1A3
1A4
1A6
1A5
A
Product Offer to Customer by BO
Offer Sheet
Sending the Offer Sheet
Reviewing theOffer Sheet
Confirmation / Sample Request
Producing theOffer Sample
Shipment of theOffer Sample
Negotiations
1B1
1B2
1B3
1B4
1B5
1B6
1B7
1B8
B
Order Placement
Offer Sample Review
1B10
1B9
Preparation for an Auction
Online Evaluation
Final To-Dos before Auction starts
Auction
Auction Wrap-Up
Ordering Buying /Counter Sample
Producing theBuying / CounterSample
Sending theBuying / Counter Sample
1C1
1C2
1C3
1C4
1C5
1C6
1C7
1C8
C
Buying / CounterSample Review
1C9
Order Placement
1C10
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10.4 Process Overview Order Fulfilment Textiles
Non technical hardware Technical hardware
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11. C.I.S. Screen Shot
Admin
DescriptionThe buying office passes all
information received to the supplier. In some
cases there are several suppliers requested to
make the buying / counter sample Execution
Depends on the request, photos per e- mail,
sketches per fax or mail, samples per courier
service
MC
QM
Supplier
Customer
X
X
Special instructions
LINK to operational IT system
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12. Li Fung
Li Fung generates new options for the
international sourcing Countries, suppliers,
more favorable buying conditions..
Comparison of important operating figures of KQIS
and Li Fung

• Advantages Li Fung
• Economies of scale for Li Fung/much more buying
  power
• Li Fung with higher presence in sourcing
  markets
• Longer payment terms for KQ

Turnover 2005 (in bn. EUR) Offices Countries Numbe
r of suppliers Number of employees
1,2 26 20 2.000 1.000
5,5 731) 41 7.000 gt7.000
LF is world market leader in international
sourcing!
1) There of several sales offices (London,
Amsterdam, div. USA)
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13. C.I.S. Screen Shot
as well as more services for KQ
Comparison of operative services of KQIS and Li
Fung
Headline
?
?
Order-Management
?
?
Quality Inspection
?
?
Documentation
?
?
Sourcing (fabrics, raw materials)
?
?
Financial Services (Payment)
?
?
Volume Increasing Positive price effects
Commission rate stays the same!
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Pudong Shanghai 1990
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15. Pudong Shanghai 2005
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16. How to describe Emerging Markets?
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Thank you for your kind attention
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Contact Carsten Wolff Managing Director
KarstadtQuelle International Services
AG Professional Buying Services Worldwide
Phone [phone] Fax [phone]
31 Email carsten.wolff_at_karstadtquelle.com