XSD Best Practices

Preface:

We at XS Direct have spent numerous years in the study and development of our policies and procedures to ensure all members the benefit of autonomy, fairness, and value. These policies are better for the greater good and have logical reasoning and study behind the process. We hold in highest regard all our members' questions and concerns. We have additional topics of interest outlined in our FAQ's.

1 :: We have a system! Why do we need your system?

We do realize there are other systems available and we do also realize words such as "system" and "integration" usually brings up apprehension from procurement professionals due to huge acquisition costs and laborious integration times. Our system is really a plug-in for your ERP that meets a specific demand within the supply chain. Our progressive SaaS low cost integration model and results driven initiative is a no lose proposition for taking yesterday's technology to the next level and take automation another step further. Once our members take a moment to educate themselves on some facts and see the differences, they then can make an educated decision. We desire all our prospective members to be comfortable in knowing all the facts.

2 :: Why is XSD's system better than what I am being offered from brokers?

XSD has spent much effort and financial resource to investigate, identify, and research exactly what systems are available to the professional. Our developed technology starts where others fall short. Our company does NOT have vested interests in what and from whom you buy your materials. Our company has no interest in what you are willing to either write off or pay. If your broker is touting a system for you to utilize please know they are influencing and taking YOUR control away from creating a truly FAIR wide open trade network. Until now, there was no other platform where a company provides a fully automated, anonymous, closed loop system that alleviates "spot" market dangers. XSD is focused with effective process flow and assuring our members are being fully protected while they now can take back the control with our secure, easy-to-use platform.

3 :: Why are XS Direct and its system unique?

At XS Direct we find our strengths to be founded on solid experience, research, and input from dedicated focus communities, key contributors within the electronics industry. Once researched, our members find we are the next generation in automation and by default this fact solves many of the problematic symptoms that ail procurement professionals. Our members have commented on the advanced level of technology we have available and how they see how we meet a sorely overdue need in the asset recovery business. XSD strives to become the technology of choice for leading manufacturing firms globally and seek to be long-term solution providers for fair and equitable trade practices.

4 :: We love your system BUT we hate the fact we have to pay for freight.

Believe it or not this has been a major topic until we point out some simple dynamics to our members. Remember, unlike a broker we are an automated portal that operates as a conduit for a fixed fee. This fee is minimal compared to being exposed to open market pricing when buying components. In short you will vastly save more than you spend on freight charges hands down. Instead of perhaps overpaying and feeling better by getting free inbound freight, we recommend one add a nickel to a dime price increase in their quotes to offset this cost.

5 :: Why shipment MUST come to XSD's facility in Florida first?

Many clients have asked this question and we do have many points to demonstrate on this topic. First we strictly adhere to a policy of protecting all our members from unscrupulous business practices with the overstock selling model. Research has shown that the availability of substandard product from various marketplaces has opened the door for the possibility of RMA's and returns of products that did not originate from your company. We catalog by photograph and time-stamp every inbound delivery in our receiving process. This data is securely stored on premises and can be made available to our members as needed. We take every step to ensure our client is insulated from these deceptive trade practices. This example is only one reason for not avoiding this step. Additionally, we discourage drop shipping in any form. We cannot utilize our identified best practice process to protect you, our members, from this identified downside risk. A final note on this topic is that our immediate expansion goal is to establish key distribution points in the EU and Asia to assist in turnaround time to clients.

6 :: Can we have our favorite broker sell our parts in your system?

NO, this breaches the essence of our system, compromises the strength of information and creates member encumbrance. Your favorite broker is not an OEM nor can he have the same membership rights. We cannot allow the rest of our clients that seek to work with ALL brokers through our platform to be affected by a "favorite broker" conflict. Our members have shown they are here for their company and their shareholders not outside interests. A final word on this issue is that of course we encourage these established contacts to buy parts from you through our conduit. We do have a very sharp revenue sharing strategy for the "favorite broker" situation that we will outline in further advanced teaming agreements.

7 :: How is XS Direct able to make this so affordable for our company?

Our research has identified that trends are moving more and more these days to the low cost integration SaaS model. We have also identified that traditional solution revenue models create a longer integration and cost factoring assessment which slows the wheels of progress. Let us make no mistake, we are NOT non profit at XSD and have invested considerable time and financial resource into our systems. Financial revenue allows our firm to continue to evolve our systems and process to better help the procurement member. With that said we feel however our success will come from creating success for our members first. This is our foundation and is paramount to creating a valuable resource.

8 :: Our inventory is in a broker's warehouse how can I use your system?

We have logistic experts on hand to help alleviate whatever need a member may have. XSD can arrange this merchandise to be collected, cataloged, and moved to one of our facilities. Once we have created a manifesto it can be inspected and approved by your firm for release. We then load the data in our system and your designated company system administrator now is on the trading platform.

9 :: How much time and resource did XSD's technology take to build?

XSD's trading formulas, source code, and market need analysis were thoroughly researched for 28 months before the first piece of source code was ever written. Focus groups from the technology to financial sectors and key industry executives from a variety of companies shared input. Through this investment in research, we can offer our services today. Legal teams have formed our agreements to protect all our members and to have an upfront and open initiative to fully understand for ALL. XSD is well positioned and capitalized. We are a LIVE trading center, not a bulletin board service...BIG difference.

10 :: Does XS Direct offer additional services?

Yes, XS Direct also has identified that sometimes clients face capacity issues. So we have CCD (Capacity, Consignment, and Distribution) programs created for the OEM or CEM that may require this assistance. If you are seeking more detail about this service our account executives can be contacted

11 :: What happens when I click "NO Stock" on a RFQ in the system?

Our system is geared to work with the member in every way. When a quote is received in our system with a </> quantity the master database automatically updates this data for future reference. When "NO Stock" is selected the entry is then removed from the system so a member will not be disturbed again. This fact needs to keep in mind when you are updating data to our system. Additionally, when the quote timer expires and the data synchs with the master system, all pricings are deleted because carrying costs may come into play. A member will get another request as needed once this action transpires.

12 :: What are the essential data fields your system needs and in what format?

XS Direct is capable of managing most common source files from XLS to DBF to TXT etc. If anything out of ordinary is needed then just drop us a line and we can advise accordingly. We say this because 99% of the files we receive are standard Microsoft Excel.

13 :: Does XSD offer code to integrate this technology into ERP models?

YES! If a member desires to have some code integration we can assess that need and implement accordingly.

14 :: Does XSD offer reporting tools for our company?

YES! We can provide an entrance into an administrative entry for our members to view, organize and pull reports. In closing we would like to thank you for your interest in XS Direct and its services. If there is some specific question you have then please contact us.

Thank You,
The XSD Team