I - Full Inventory Management & Sales Service

Customer will be able to depend on Sankyo for full inventory management services. This service includes: order release to vendor, warehousing with FIFO rotation, just-in-time delivery with small volume, engineering support, and quality coordination. Invoices will be issued upon the actual shipment to customer, accordingly customer will not bear the cost of inventory interest. Customer will only need to maintain minimum receiving space and operations. Sankyo will assure timely delivery with short lead times and safety stock always kept at Sankyo's warehouse.

BI - Blanket Order Inventory Management Service

Customer will be able to depend on Sankyo for full inventory management, same as category "I" except for order release management. Customer is requested to place blanket orders or open orders to Sankyo as the first step. Sankyo will immediately place orders to supplier and will keep enough inventory to cover customer's requirements, but no more than the blanket order volume. Sankyo will be responsible for warehousing with FIFO rotation, just-in-time delivery with small volume, engineering support, and quality coordination.

NI - Non Inventory Sales

Sankyo places orders for product upon receipt of customer purchase order. After the product is received at the Sankyo warehouse, delivery to the customer is scheduled immediately or a drop shipment is arranged, whichever is suitable. Sankyo will assure timely delivery and orderly packaging based on quoted lead times and shipping terms. Sankyo performs coordination for quality with the original manufacturer. Purchase orders are not subject to cancellation or modification without Sankyo's consent. Product will be billed upon actual shipment to the customer.

SI - Service Sales

Sankyo orders and receives product per customer inventory level guideline and warehouses the material at the Sankyo warehouse. Original manufacturer invoices our customer directly for product delivered to Sankyo and title transfers directly to the customer from the manufacturer. Sankyo assesses an inventory management charge per each shipment release to the customer from our warehouse. Sankyo provides insurance for material stored in our warehouse and assures timely delivery and orderly packaging based on quoted lead times and shipping terms. Sankyo will bill service charge only to cover warehousing and shipping.

DS - Drop Shipment

Sankyo places orders for product upon receipt of customer purchase order for full container or truck load orders. Product will be delivered directly from manufacturer to customer site at maximizing unit cost savings on product. Sankyo will provide inventory management resource recommending by fax or email order placement timing or on extension of customer production control. Sankyo will assure timely delivery and orderly packaging based on quoted lead times and shipping terms. Sankyo performs coordination for quality with the original manufacturer. Purchase orders are not subject to cancellation or modification without Sankyo’s consent. Product will be billed upon actual shipment to the customer.