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S OFTWARE T HAT N EVER W EARS O UT

N ETWORK S YSTEMS I NTERNATIONAL, INC. S OFTWARE T HAT N EVER W EARS O UT. TABLE OF CONTENTS. _________________________________________. INTRODUCTION….………….……….………...……..3. THE NET COLLECTION...……………………….………...……..5. E-BUSINESS...….…………………….………...……..20.

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S OFTWARE T HAT N EVER W EARS O UT

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  1. NETWORK SYSTEMS INTERNATIONAL, INC. SOFTWARE THAT NEVER WEARS OUT

  2. TABLE OF CONTENTS _________________________________________ INTRODUCTION….………….……….………...……..3 THE NET COLLECTION...……………………….………...……..5 E-BUSINESS...….…………………….………...……..20

  3. Closing the LoopNETWORK SYSTEMSInternational, Inc. presents the net collection™, an enterprise-wide suite of software products developed specifically for complex process manufacturers and distribution centers. The product suite encompasses: Enterprise Demand Management forecast management, sales order processing, minimum stock auto- replenishment... Time-phased Resource Planning material requirements, capacity constraints, suggested quantities to purchase or make... Supply Chain Advisements and Monitoring purchase order/vendor analysis, manufacturing order analysis, WIP tracking, inventory processing... Distribution Center Authority receiving, locating, counting, optimized pick plans, ASN inbound/outbound, pick and pack, shipping/dispatch management... Executive Information Analysis data warehouse, accounting impact events, user-defined presentation models...

  4. Each of the products within the net collection™ may be implemented as an integrated enterprise-wide solution or to satisfy a specific business function. The application infrastructure supports multiple corporations, divisions, facilities, and activity centers with the ability to independently configure decision logic based on unique entity requirements. The net collection™ user interface options include graphical PC-based or traditional text-based screens. The software suite may run on a single centralized server or a have a mission-critical functions networked on distributed servers. The product also offers portable data collection capabilities utilizing radio-frequency devices updating the relational data-base real-time as bar-codes are scanned. NETWORK SYSTEMS guarantees that each customer is protected beyond the original implementation with our unique Support and Product Additions program (or SPA). In addition to 24 hour/7 day support, our customers receive ongoing releases to satisfy their changing market demands and evolving consumer requirements. All without the risks inherent within a traditional custom environment. The net collection™ from NETWORK SYSTEMS. Investing in your industry. Turn-key ERP Solution Fully Integrated The net collection™ is designed to run exclusively on all IBM® AS400 ® models. Network Systems International is an Independent Software Vendor (ISV) with IBM. ®

  5. net Resource Manager™ is the foundation product within the netcollection™. • net Resource Manager™ enables an organization to finitely define all product resources, process resources, overhead resources, and labor resources required in the manufacturing process. • net Resource Manager™ provides the user the ability to select different attributes to uniquely define product structures; yarn could utilize blend, count system, count and ply; fabric could utilize style, width, color, packaging supplies could use an item code; and a garment or blanket could utilize a style color, and size matrix. • net Resource Manager™ affords the user the opportunity to efficiently connect resources into a multi-plant bill of resources, thus building a parent/child relationship uniquely defining all resources (products, processes, overhead, and labor) required in manufacturing a unique product. • Business Functions: • Item Master Activity Center Overhead Elements • Yarn Master Plant Matrix Work Center • Fabric Master Fiber Master Process Routes • Labor Codes Warp Master Bill of Resources • Machine Sewn Products Network Systems International, Inc. 5

  6. net Cost Construction™ is the product within the netcollection™ responsible for building cost structures. net Cost Construction™ integrates with net Resource Manager™ enabling the entry of up to eight plant-based costs for all purchased products, labor resources, and overhead cost elements. These independent costs are summed immediately during the building of the bill of resources, giving the product development staff immediate cost for new products and “what if” cost for changes to existing resources. • net Cost Construction™ provides infinite cost allocation methods to distribute fixed costs to activity centers (departments) with calculation of these fixed costs detailed to a machine hour basis and automatically build into the bill of resources. • net Cost Construction™ detects new resources as well as changes to existing resources within net Resource Manager™ and affords the user the ability to execute a net change roll up to the cost files. The net change filters all impacted resources and gives the user the opportunity to select or omit the changes within the live cost files. The cost files provide the base line for all immediate financial comparative analysis. • Business Functions: • Plant Specific Resources Cost Matrix Entry • Bill Of Resource Integration for Immediate “What If” Cost • Resource Budget Cost File • User Defined Cost Files • Cost Group/Category Cost Files • Fixed Cost Allocation Method/Distribution to Machine Hour Basis • Net Change Additions of New and Changed Products Network Systems International, Inc. 6

  7. net Sales Forecaster™ provides the user the opportunity to forecast at the style level with period-based adjustments to color and size distribution spreads. Each revision made to a forecast is sequentially numbered and stored in the history database for analysis. The system recognizes a global lock down date structure that prohibits changes to current period forecast as of a user-defined date. • net Sales Forecaster™ provides demand to net Pro Plan™ to be used in determining resource time-phased supply quantities. It also integrates with net Messenger™ for automatic user prompting of exceptional conditions detected that impact sales forecast, like new color additions, and size scale changes. • net Sales Forecaster™ is the product within the netcollection™ that enables the entry, maintenance, and analysis of sales forecast. • net Sales Forecaster™ provides forecast management as the customer level for all salespersons, at the salesperson level for all customers, at the product level for all customers/salespersons, or any combination thereof. Each forecast is given a unique number with a revision suffix. The forecast may be automatically populated form prior period actual sales. • Business Functions: • Automatic Build From Prior Year Performance • Matrix Maintenance of Color and Size Spread • Select/Un-Select For net Pro Plan • Current Year/Prior Year Running Comparatives • Revision History • Time Period Lock-Down Date • Net Messenger Automatic Prompting Network Systems International, Inc. 7

  8. net Customer Link™ is the sales order-processing product within the netcollection™. net Customer Link™ is built to process volumes of orders with minimal human intervention. • net Customer Link™ accepts sales orders electronically utilizing standard 850 EDI structures or through manual entry. Multiple methods of order entry including customer product, as well as style, color, and size matrix are supported. The sales orders are automatically credit approved or held in the approval queue for internal or factor-base approvals. • net Customer Link™ automatically reserves inventory to orders based on priority, or enables the users to manually allocate inventory to fill orders. The allocation is then released to net Distribution Handler™ for picking and loading. • net Distribution Handler™ then passes the actual pick results back t net Customer Link™ to automatically build an invoice (EDI Segment 810). The invoice triggers sales events with the appropriate accounts receivable transactions immediately available. Net Customer Link may be utilized in a hands-free mode with the system automatically performing many of the tasks. A free-form comments pad is integrated throughout the process with visibility of all comments and where they are originated. • Business Functions: • Customer Profile and Supporting Tables • Sales Order EDI and Manual Entry • Credit Management (Internal and Factored) • Inventory Reservations • Shipment Creation • Invoice Creation and Processing • Customer Service Inquiries Network Systems International, Inc. 8

  9. net Pro Plan™ is the product within the netcollection™ responsible for building time-phased resource plans. net Pro Plan integrates with all products within netcollection™ to answer the following questions: What are we going to make? What resources are required to make it? What do we have? What do we need? When do we need it? • net Pro Plan™ monitors the various products, compiles the available data, and builds a time-phased resource position grid netting on-hand resource against demand, ten suggesting a planned quantity to make or buy. • net Pro Plan™ initially suggests order quantities to satisfy all demand without influence of available capacity. It then recognized capacity constraints and offers work center leveling of product load, thus automatically adjusting the planed order quantities inside capacity capabilities. This change then automatically re-plans the lover level resources to accommodate the lower level resources to accommodate the leveling adjustments. • net Pro Plan™ provides a tool of firming the time-phased planned order quantities, which converts products that are purchased to a request for purchase and manufactured products to a manufacturing offers. The purchase requisition automatically appears in net PO+™ while the manufacturing orders are immediately routed to net Scheduler™. • Business Functions: • Resource Position Grid • Master Resource Budgeting/Planning • Rough Cut Capacity Planning • Planned Order Quantities Generation • Work Center Leveling within Capacity Capabilities • Automatic Lot Sizing And Lead Time Offset Analysis • Manufacturing Order/Purchase Order Generated Automatically Network Systems International, Inc. 9

  10. A user may apply severity codes to specific messages, which causes these messages to sort higher in the user message queue. •     net Messenger™ provides each user with their message queue. Based on the nature of the message, a user may be able to process the message by selecting it, and provide the system with a signal to immediately jump to the detailed transaction that created the condition, so the user may quickly initiate corrective actions. •      net Messenger™ was developed to provide a tool for efficient management by exception. Take advantage of system's structured discipline and manage your enterprise by exception. • net Messenger™ is responsible for monitoring exceptional conditions within all net collection™ products and distributing messages to the appropriate user community. •      net Messenger™ allows the entry of specific conditions which may occur and provides an identification code. Each message is part of a message group and has a description, sequence number, and delivery options of whether to send a break message or log to user message queue. •      net Messenger™ provides the user with capability to attach messages specific to users, or attach messages to a predefined user distribution list. Upon occurrence of a condition that triggers the message, the system determines broadcast rules from the message distribution tables. • Business Functions: • Message Identification Maintenance • Distribution List Master • Message to Resource Assignment • Message Severity Code • User Queue Message Maintenance • Dynamic Message Processing with Jump Logic Network Systems International, Inc. 10

  11. net PO+™ is the purchase order management product within the netcollection™. • net PO+™ enables an organization to consolidate all divisional and plant purchasing requirements into one system. Multiple supporting tables enable the user to build standard data that will default into the various business functions expediting the purchasing process. The vendor profile accepts traditional input such as name, address, and contact. • net PO+™ supports regular purchase offers, blanket contracts with associated releases, as well as purchases against a capital project. The purchase order is then releases with associated print copy or via EDI. net PO+™ then integrates with net Distribution Handler™ to conduct receipts reconciliation and quality assurances. The receipt is places in a pending invoice queue. • net PO+™ enables the user to enter the vendor invoice. The system will automatically match the invoice to open reconciled receivers to place the invoice in an error queue awaiting buyer approval before processing. Accounts payables transactions are generated for immediate posting. net PO+™ is one system for all purchasing requirements. • Business Functions: • Vendor Profile and Supporting Tables • General Ledger Category Tables • Request For Purchase Generation • Request for Purchase Consolidation/Approval • Purchase Order Services • Vendor Invoice Processing • Capital Projects Tracking • Cash Requirements Forecasting Network Systems International, Inc. 11

  12. net Scheduler™ is the product within the netcollection™ responsible for manufacturing order management. • net Scheduler™ provides visibility of the entire manufacturing environment allowing the user community to enhance manufacturing productivity through dynamic utilization of capacity and material resources. The system is built utilizing control numbers referred to as manufacturing orders. A manufacturing order may be created as a make-to-order for a specific customer, or created from net Pro Plan™ to satisfy an aggregate demand. • The system will automatically calculate the material and process requirements to satisfy the product quantity on the manufacturing order. The user may allocate inventory to satisfy the requirement or allow inventory to satisfy the requirement or allow the system to automatically allocate. net Scheduler™ may be a paperless product or users may print bar-coded paperwork for tracking on the floor including the process route guide, manufacturing instructions, tracking labels, as well as a pick list of raw materials allocated to the manufacturing order. • net Scheduler™ has a built in work-in-process tracking system that allows user input at each step in the route, including starts, stops, comments, associate responsible, and quantity being processed. All history is maintained for percent return calculations, variance analysis, and period-to-period comparisons. • Business Functions: • Production Calendars • Manufacturing Order Analysis • Inventory Allocation • Work Center Scheduling • Manufacturing Order Splits/Reworks Tracking • Machine Line-up Sequencing with Finite Dating • Production Entry Network Systems International, Inc. 12

  13. net Event Tracker™ is the product within the net collection™ responsible for building a data warehouse of specific events that occur. net Event Tracker™ supports system generated events (like manufacturing order starts and stops) as well as user defined events to alert the plant floor manufacturing associates with specific product run instructions and quality tracking measurement requirements. Certain events impact summary perpetual inventory. • net Event Tracker™ stores all event occurrences in a data warehouse detailing the origin of the event, the user, date, time, manufacturing order, product, quantity, work center, machine and any pertinent quality measurement data the user chooses to log. The quality measurement data stores what the system prompted the user to enter, what the acceptable range of values is, and what the user actually entered. The warehouse provides the user with potential trends and input for various statistical evaluations. • Business Functions: • Event Management with Quality Variables • Event/Inventory Transactions • Event Entry • Event Occurrence Warehouse • Inventory Transactions Network Systems International, Inc. 13

  14.  net Earnings Monitor™ will provide multiple methods of calculating gross payroll earnings utilizing user-defined tables. The system will maintain an associate's running average, minimum to pay, current pay earned, and percent efficiency compared to standard. •      net Earnings Monitor™ builds a series of integration tables available for exporting to the payroll system responsible for calculating gross to net pay. The system stores all transactions in the net Event Tracker™ data warehouse with secured access. Week-to-date, month-to-date, quarter-to-date, and year-to-date analysis is available from the data warehouse. • net Earnings Monitor™ is the product within the net collection™ responsible for time and attendance tracking as well as calculating associative incentive-based gross payroll earnings. •      net Earnings Monitor™ enables entry of standard information for all associates such as address, email address, telephone number and contact instructions. It also defines all labor assignments with the associate's pay rate standard. •      net Earnings Monitor™ provides clock-in and clock-out utilizing bar-code collection to establish the cumulative time performing a particular labor assignment. The system integrates with net Scheduler™ to connect an associate with a particular manufacturing order, product, and quantity produced during the time horizon. The associate badge and the manufacturing order will be wanded on the plant floor, thus calculating real-time associate earnings. • Business Functions: • Associate Master • Associate/Labor Code Assignments • Clock-In/Clock-Out Management • Associate Production Credit in net Scheduler™ • Associate Gross Payroll Calculations • Gross Payroll Integration to Third Party Payroll Packages Network Systems International, Inc. 14

  15. The maintenance order will be a work order that appears in the scheduler's machine lineup queue, including all instructions for maintenance and anticipated parts to be utilized. The user will start and end the work order, which will immediately make the machine available for scheduling. •      Net Maintenance Controller™ will log all maintenance order to the net Event Tracker™ data warehouse. The warehouse will store machine maintenance reason code historical details, and make them available for summarization and reporting. • net Maintenance Controller™ is the product within the net collection™ that enables better machine preventative maintenance. •      net Maintenance Controller™ integrates with the machine table in net Resource Manager™ to establish standard preventative frequencies (schedule every X days or X quantity of production) and preventative type codes. These codes are user defined and should contain specific instructions including parts to use, and the expected downtime of the machine. •      Net Maintenance Controller™ will integrate with net Scheduler™ to update the machine's production availability calendar thus removing the hours expected for maintenance from the operations calendar. • Business Functions: • Machine Master • Maintenance Reason Code Table • Machine Maintenance Frequency and Schedule • Maintenance Summary Analysis • Machine Down Analysis • Integration with net Scheduler™ for Capacity Allowance • Integration with net Distribution Handler™ for Parts Usage Network Systems International, Inc. 15

  16. net Inventory Processor™ manages unit level stock inventories as well as perpetual summary inventories. net Inventory Processor™ receives inventory event requests primarily from net PO+™, net Customer Link™, net Scheduler™, and net Distribution Handler™ to receive inventory against open orders; allocate available inventory to sales orders; issue direct material to manufacturing orders; handle customer and work in process returns; re-pack non-consumed inventory; transfer inventory to off-site locations; and ship inventory to customers. • net Inventory Processor™ immediately processes the events and re-calculates on-hand stock as well as summary inventory available. On-hand stock is the summary of all tangible units non-committed and available for utilization. Summary inventory available is the calculation of on-hand stock plus scheduled receipts (both open purchase orders not received and/or manufacturing orders in process), minus any reservation and allocations (against sales orders and/or manufacturing orders). • net Inventory Processor™ captures the origin of all events and commits the user, work station, program, quantity, date time, etc. to a data warehouse and is available for analysis or trouble-shooting. • Business Functions: • Integration with Other netcollection™ • Unit Inventory Structures • Summary Inventory Processor • Summary Inventory Structures • Summary Period-End Roll Forward • Inventory Valuations/Listings Network Systems International, Inc. 16

  17. net Distribution Handler™ manages all distribution and warehouse management functions. net Distribution Handler™ integrates with net PO+™ to manage the receipt of incoming EDI 856 advanced ship notices (ASNs). It allows the user to build a receiver by wanding the bar-coded inventory. For receipts not bar-coded, or in environments where consistent inventory labeling is a strategy, the system allows bar-code label printing for all units received. A receipts reconciliation is conducted comparing the ASN to actual receipts, thus making the receiver eligible for invoice payment. • net Distribution Handler™ integrates with net Customer Link™ to manage the shipping and distribution process. The allocated sales orders are received into the shipping queue and ready for traffic routing decisions pertaining to a customer’s shipment requests. The shipments are released to the distribution queue and are ready for processing. An optimized pick plan may be created with method controls including FIFO, minimum warehouse stops, and smallest quantity locations first, or fill from pick and pick area. UCC 128 shipper labels are printed and available for application or in batch during stage or wave preparation. As the stage is loaded a bar-coded ship verify function is performed, thus assuring integrity of the load. • Business Functions: • Inventory Transfers and Receiving • Inventory Locates, Moves, And Issues • Picking/Shipping/Distribution Management • Repack and Returns • Physical and Cycle Count Management • Pick and Pack Replenishment • Shipping Labels, Bills of Lading, And 807 Requirements Network Systems International, Inc. 17

  18. net Cash Controller™ is the product within the net collection™ that provides a unified view of a company's cash assets with visibility of current positions in Accounts Receivable (A/R) and Accounts Payable (A/P). • Traditional A/R and A/P systems are islands of information within a corporation, with no access or visibility of pending sales orders from customers or pending purchase orders to vendors. net Cash Controller™, however, is fully integrated on a "real-time" basis to other products within the net collection™ and does not rely on an outdated "batch" posting to a general ledger which then provides account status. • net Cash Controller™ is responsible for managing cash receipts, collection, cash disbursements and bank reconciliation. net Cash Controller™ is directly linked with net ProPlan™ for visibility of scheduled receipts; net Customer Link™ for new sales orders and invoicing, payments history and working with Factors; net PO+™ for goods and services purchased from vendors and contractors; net Inventory Processor™ for current Unit and Summary inventory valuations at a plant, division, corporate level and with net Distribution Handler™ for three-way matching for vendor payment. • net Cash Controller™ provides meaningful information for the management of past and planned purchases and expenditures. RECEIPTSAllocation To Invoices A/R Aging Analysis Credit Management Alerts Unearned Discount Alerts Partial Payments Factor Receipts Deposit Slip Preparation DISBURSEMENTSThree-Way Matching Discount Handling Payment Scheduling Multiple Remit To's Partial Payments Manual Checks and EFT's 1099 Reporting BANK RECONCILIATIONMultiple Accounts Miscellaneous Fees Deposit Register Reconciliation Posted Checks Reconciliation Immediate On-hand Reconciliation Account Transfer (Operating/Payroll) Network Systems International, Inc. 18

  19. netExec™ is a graphical executive information system (EIS) within the net collection™. Each transaction or "event" occurring within the net collection™ is harvested and exported into one of five distinct data warehouses for trend or detail "drill-down" analysis and reporting. Executives or managers may easily move between various pre-defined presentation models to visually track performance over time throughout the entire enterprise. By monitoring trends, operational exceptions and "what-if" scenarios, the user community can proactively manage all business activities with relevant information presented in graphical format. NET INVENTORY EXEC™Raw Material/Direct Components PositionsUnit and Summary Valuations Views By Department/Plant/Division/Corporation Finished Goods Replenishment Programs Scheduled Receipts and Transfers NET SUPPLY CHAIN EXEC™Vendor Quality and delivery performanceCommission processing ServicesLead Time tracking Best routing of shipments Domestic and Off-Shore Tracking Import /Export Status NET SALES EXEC™Sales Person Performance Sales Channel or Market SegmentCustomer/Group Margin Analysis Products/Seasons/Gross Margin AnalysisActual vs. Sales Forecasts NET PRODUCTION EXEC™Actual vs. Planning ForecastCapacity BalancingWork Center TrackingLead Time ReductionQuality Monitoring Network Systems International, Inc. 19

  20. TrackingPortal.net is a three-tiered e-application designed to give you and your customers more visibility of the information that helps you run your business. Customer Inquiry Armed with only a web browser and a password, your offshore contractors and remote salespeople will have visibility of sales orders, invoices, shipments, and manufacturing orders over the internet. eCustomer Link While Customer Inquiry will help your customers view orders, eCustomer Link will let your customers place orders. Your customers can access your product catalog through your website to place orders and then browse their Customer Inquiry to view the order status. Web Development Don’t have a website or the know-how to develop one? Our web development team can set your website up so that someone with little or no HTML experience can make informational changes to the website without having to hire a webmaster. After the initial design is laid out, updating your new website will be easy for anyone who can surf the web. Network Systems International, Inc. 20

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