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Sourcing Office Istanbul, Turkey

Hasan ALICI

Agenda•Company•Sourcing •Suppliers•Products•Prices•People

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XXXLUTZ Group http://www.xxxlutz.at/cms/about/compayvideo

•71 years experience since 1945•21.500 employees•10 Million regular customers •3,0 Billion € annual turnover.•230 stores in 8 countries•2nd largest furniture retailer of the world

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XXXLUTZ KG - Over 230 Furniture Stores

• 85 Furniture stores XXXLutz

• 70 Discount stores Möbelix

• 66 Furniture stores Mömax

• 21 Furniture stores Lesnina

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From ideas to sales in stores• Research and design• Planning of trend themes• Follow up same period last year• Budget• Make patterns and styles• Price points and campaigns• Sourcing• Negotiate and decide supplier• Make order• Samples and testing• Delivery control• Shipping• Allocations• Distribution

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Product Range• Livingroom• Kitchen & Dining Rooms• Bedroom• Bathroom• Children’s & Teenager’s rooms• Study & Office• Garden• Boutique• Home Textiles• Carpets • Flooring• Lamps

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Home Textile & Furnishing

• Curtain fabrics, readymade• Roller Blinds• Bedsets, sheets, cushions, pillows• Towels, bathrobes, bathmats• Upholstery fabrics, Wallpaper• Blankets, throws• Machine made & Hand madeCarpets• Tablecloths, kitchen textile• Baby Textile

Kitchen & Dining

• Porcelain• Electrical appliances, Household• Metal Kitchenware, Cutlery• Plastic-gift• Glassware• Decorative items, vases• Lamps• Garden-Outdoor• Baby Boutique

Private Labels

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HSN 2007/01/2016

Brands

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Organization Schema of XXXLutz KG Turkey Istanbul Liaison Office

143 May 2023

Mr. Gernot FRANK ( gtf@lutz.at)Purchasing Dpt. Manager Europe/West Asia

Head Representative OfficerDelhi/Dhaka/Istanbul/Warsaw

Mr. Hasan ALICI ( hsn@lutz.at)Office & Sourcing ManagerCurtain & Carpets T :+90 (212) 543 2371 M:+90 (532) 164 9243

Mr. Berkay AYDIN ( bay@lutz.at )Sourcing ManagerHousehold & Boutique & Baby Hard goods & Baby Furniture T :+90 (212) 543 2370M: +90 (212) 164 9242

Mr. Gabor GABANYI ( gga@lutz.at )Chief Administrator Import Supply Chain XXXL EDI/OCR

Mr. Günter KALTENECKER ( kg@lutz.at )COO – Purchasing FASO XXXL

Ms.Ilke IRDAY ( ike@lutz.at )Sourcing ManagerHome textile & Lighting & Baby TextileT :+90 (212) 542 9650M:+90 (531) 218 5791

Mr.Hakan Yorulmaz( ylz@lutz.at )Quality Control ManagerM:+90 (533) 063 9699

Ms. Mehtap ALTINTAS (mha@xxxlutz.at )Office Assistant/SecretaryT :+90 (212) 571 9302M:+90 (533) 063 9688

Standard Core Process

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Finance / Administration

Import Office+

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uyer

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Lab

Test

Order Fulfilment

Order Development

ABC

Buyer‘s Request

Auction

SO obtains offer from supplier

OrderClearing

Sup

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Cus

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Services provided by the sourcing offices

By delivering professional services in all phases of the sourcing process we support buyers in reaching their goals.

Development of Collection

•Market and supplier research

•Travel preparation and support

•Development of offer samples

1 Order Development

•Sample Management

•Technical support•Purchase decision •Order follow-up

2 Order Fulfilment

•Production release•Production follow-up

• In-line and final inspections

3

Logistics and Documentation

•Delivery of merchandise (outsourcing Forwarder)

•Handling export and shipping documents with Import Office

4 Order Paymentand Commission

•Payments and reimbursements of customers

•Documentation and recording of prices and commercial invoices

5 Processing Claims

•Merchandise claims•Delivery date claims•Follow-up and settlement of claims

6 Process Related Tasks

•System development•Reporting and controlling

•Budgeting and capacity planning

•Travel management bookings

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What are we doing for our buyers?

• Finding new suppliers , products based on price, quality, and delivery speed expectations

• Interview with Buyers in Head quarters and visit our stores and distribution centers to examine and learn about products, services, and prices

• Attend meetings, trade shows, and conferences together with our Buyers to introduce new collections, products and suppliers

• Analyze price proposals and inform raw material prices or currency changes to determine reasonable prices

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• Negotiate the terms of contract

• Work out policies with Buyers, such as when products will be delivered

• In case of defective or unacceptable goods or services and determine corrective action by pre-shipment QC and AQL tests.

• Arranging country visits, trip schedules for our existing and new suppliers.

• Maintaining samples, catalogues, color lab-dips, prototype and packing

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What are we doing for Suppliers?• Evaluate suppliers based on price, quality, and delivery speed

• Evaluate plants, factory and mills capacity and machine process capabilities

• Teaching our document forms and label and packing requirements

• Interview vendors and visit suppliers' plants and distribution centers to examine and learn about products, services, and prices

• Attend meetings, trade shows, and conferences to learn about new industry trends and make contacts with suppliers

• Analyze price proposals and other raw material information to determine reasonable prices

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• Negotiate contracts on behalf of our organization

• Work out policies with suppliers, such as when products will be delivered, customs and EU regulations, certifications

• Meet with staff and vendors to discuss defective or unacceptable goods or services and determine corrective action

• Evaluate and monitor contracts to be sure that vendors and supplies comply with the terms and conditions of the contract and to determine need for changes

• Maintain and review records of items bought, costs, deliveries, product performance, and inventories

• New product development with our color& theme and specifications and accessories

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Supplier Resarch and Evaluation•Supplier applications by mail,phone and others•Company profile check•Market references•Goverments•Fair, supplier conferances•Fabric, trim , garment suppliers•Company visits

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Purchasing cycle

8. Payment

3. Requisition assigned to a Vendor

5. Order follow-up

2. Source determination

1. Requirements determination

4. Order processing

Purchase OrderPurchase Order6. Goods receipt and inventory management

Purchase OrderPurchase Order

7. Invoice verification

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Supply Chain Management DesignBuyingPlaningSourcing

Fabric PocketingMerchandising

TrimsMerchandising

ManufacturingQuality Control

Logistic

Warehouse

Retail

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Sourcing from Turkey Time Price Quality Our network and our experience

secures our common success. We provide added value to our Buyer’s global sourcing.

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Turkey

•Rich in basic textile raw materials ( ranked 7th in the world’s cotton production)

• Geographical proximity to main Europe markets.

• Short logistic periods due to geographical proximity.

• Acceptance of min. quantities and amounts, fast sampling, product development and rich collection.

• Qualified well-educated labour force

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Young and modern domestic market potential, high quality demand, scale of economy of 76 M. population.

Liberal trade policies

Well developed textile finishing industry, integration.

Giving importance to quality, environment and human health and sensitivity on working conditions of workers

Customs Union agreement with EU and free trade agreements with many countries.

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Logistics

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Warehouse, Allocation, Distribution

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Competition Top Furniture retailers in EuropeTurnover in Europe 2014 in Million € 

Rank Retailer Turnover Headquarter

1 IKEA 28.700 Sweden

2 Otto Group 12.057 Germany

3 Steinhoff 9.000e South Africa

4 Home Retail Group 7.645 UK

5 XXXLutz 2900e Austria

6 JYSK group 2800 Denmark

7 Höffner 1500 Germany

8 Howdens 1500 UK

9 Tessner Gruppe    1410 Germany

10 Porta Gruppe    1350 Germany

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Furniture and Home Textile chain stores in Turkey

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Main retailers of home textiles and their specific characteristics

Variety storesWoolworth (UK)Prisunic (F)Upim (I)Blokker (NL)

Department storesKarstadt Quelle (G)Galeria Kaufhof (G)John Lewis (UK)El Corte Inglés (SP)Vroom & Dreesman (NL)

Internet/ Mail-orderManufacturer sitesRetailer sitesInternet specialistsMail-order companies

Gift shopsExpo (NL)The Gadget Shop (UK)Depot (G)

Category killerIKEA (all)

Broad

Product Mix

Narrow

Mass Premium

Furniture outletsConforama (F)Porta (G)MFI Furniture (UK)Divani & Divani (I)

Fair TradeFair trade stores (all)

Garden centresObi (G)Jardiland (F)Wyval (UK)Intratuin (NL)

SpecialistHabitat (F,G)Allders at Home (UK)

Directly-ownedWaterford-WegdwoodRichard GinoriArmani, Gucci

Grocery MultiplesSupermarketsHypermarketsOr Aldi - Tchibo

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Trade channels for home textiles articles

Consumers

IndependantSpecialists

StoresDIY

storesDepartment

StoresStreet

marketsWorld Shops

Hyper- andSuper

marketsVarietyShops

Furniture &Home

InteriorsStores

Mail order Houses

BuyingGroups –

Importing tradingcompanies

Purchasing agents

Domestic(importing)

manufacturersSales Agents Importers/

Wholesalers

Manufacturers

Home textile sales channels in EU

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Competitors

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International Fairs• Heimtextil, Frankfurt-Germany• Evteks, Istanbul-Turkey• Mood, Brussels-Belgium• R+T, Stuttgart-Germany • Zuchex, Istanbul-Turkey• Ambiente, Frankfurt-Germany• Ismob, Istanbul-Turkey• Domotex, Hannover-Germany• Ideal Home, Istanbul-Turkey

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Hasan ALICIOffice & Sourcing Manager

Mobile: +90 532 164 9243Email : hsn@lutz.atWeb : www.lutz.at

THANKS!