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What is G Ks market strategy?

• GK promises its customers to enhance their image
  and safety through innovation
• How they do it
• Building a positive and consistent image
  throughout their customer's organization by
  providing quality, value-added products and
  services
• Managing the details of their customer's apparel
  and facility service needs
• Providing customized products available when
  needed through regional distribution centers.

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What does G K Services do?

• In a nutshell
• G K provides companies with uniforms, work
  clothing, linens, and cleanroom services.
• In addition, they provide corporate casual and
  unique orders.
• They clean, stock, and control the inventory for
  their customers.

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Customers

• What types of customers?
• Auto shops
• Restaurants
• Hospitals
• Corporate Offices
• Specifically
• Cargill
• Saturn
• SEIMENS

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Inventory Management Systems

• GKs innovative garment systems
• Accutrak Garment Asset Management System
• AccuSort Garment Processing System

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Inventory Management Systems

• Accutrak
• Assigns each garment a unique number and
• bar-coded label.
• Electronically scans labels before and after
  cleaning.
• Tracks and documents garments.
• Generates detailed reports showing on pick-up and
  delivery, repairs, additions, deletions,
  beyond-repair garments, individual garment
  history and inventory rotation.
• Eliminates missing or incorrect garments.

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Inventory Management Systems

• AccuSort
• Electronically sorts and matches every garment,
  guaranteeing delivery accuracy
• Maintains perfect garment spacing throughout
  processing to provide a wrinkle-free finish
• Makes sure the right garments are placed on the
  right trucks, on the right day, in the right
  order

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Inventory management

• Three separate classes of inventory
• A Brand new
• B Slightly used
• C Worn
• This information is based on the Accutrak system
  and its detailed reports to promote inventory
  image and quality.
• GK uses their SAC software to track inventory
  nationally, to place replenishment orders with
  Red Hook, and to communicate throughout the
  supply chain.

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Inventory cont.

• For special orders, they order direct from Red
  Hook.
• Each week drivers are given a set amount they are
  allowed to spend on new or used clothing.
• GK orders new items monthly to replenish stock
  from Red Hook Clothing based on prior years sales.

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Information Systems

• Routine orders done through paper invoices.
• Route managers check drivers invoices at the end
  of the day for errors.
• Then they are sent to their accounting department
  in Kingsport.
• New orders and changes in existing orders are
  entered into the SAC software at the Knoxville
  distribution center.

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Supply Chain Overview

• Red Hook
• Manufacturing
• Designs products
• Produces clothing,
• uniforms, etc.
• Prices
• Ships to
• warehouses

• GK
• Warehouse
• Kingsport
• Stores inventory
• Cleans
• Delivers to
• distribution center
• Accounting
• Monthly orders
• Adds logos

• GK
• Distribution
• Knoxville
• Milk run deliveries
• to customers
• Order processing
• Promotes
• Sales

Customers
Product Flow
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Supply Chain in Action
GK Services
Red Hook Manufacturing
Daily milk runs to Customers
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GK Warehouse

• Responsibilities
• Receives dirty garments daily from distribution
  center routes for cleaning, processing, and
  redistribution.
• Invoices are sent to in-house accounting
  department for processing.
• Orders and receives new garments from Red Hook
  manufacturers monthly.
• Prepares customized garments for new accounts.
• Packages garments and ships to local distribution
  centers.

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Distribution Centers

• Responsibilities
• Receives daily shipments of prepared garments
  from warehouse.
• Drivers distribute prepared garments to customers
  on daily routes.
• Handles new customer sales and enters information
  into SAC software for warehouse to prepare.
• Sends daily shipments of dirty garments to
  warehouse for processing.

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Drivers

• Responsibilities
• Handle existing customer sales.
• Act as sales representatives to set prices
  appropriately.
• Takes new orders.
• Daily routes to local customers.
• Receives dirty garments.
• Distributes clean garments.
• Handles facility services if needed.

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Questions??
Richard L. MarcantonioPresident and Chief
Executive Officer
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References

• Interview with Ben Metz, Route Manager.
• www.gkservices.com

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THE END

• William Scheib, Summer Nardi, Li-Chuan Tseng