Newsletter for Warehouse Associates and Store Partners - Internal Communications and Recognition

1. WCSC News
Neiman Marcus West Coast Service Center
Serving the West Coast stores
since 1995
Craig Reynolds’ 10th Anniversary with
A Message from the Director Neiman Marcus in November 2006
The West Coast Service Center
(WCSC) ---a partner to the stores’
success…
“WCSC always plays a
It’s the end of the season and spring is
upon us. As we start a new season, I’d
significant role in the West
like to share the many accomplishments Coast stores’ success. It’s
WCSC has achieved last season. Stock also pulled and shipped over what we’re in business
255,000 units to the stores, an increase for.”
Recently, WCSC was used as a test of 7% vs. last year.
center to process direct receipts for five
So. California contemporary vendors to Human Resources went live with Phase
reduce merchandise turn around time to II of Genie, which introduced us to the
the stores. The goal was to get Self Service and iRecruitment systems.
merchandise to the sales floors quickly, WCSC has leased a 30,000 sq ft 2nd
to increase sales. The test was building where store fixtures, supplies
suspended in January with no impact on and no-cost, no-retail items are going
the stores’ sell-through. It was however, a to be stored to make room for an
worthwhile effort for WCSC in sales Alterations workroom expansion
support, with every participant doing a project. This leaves the main building
great job in making the test a success. with only live merchandise and daily
The regional stores fitted over 45,000 supplies.
garments with the WCSC alterations WCSC recently lend a helping hand to
workroom processing over 21,000 of the two newest West Coast stores.
garments.
The new CUSP Store in Century City and Neiman Marcus Last Call at the
LA Sends processed over 70,000 units the new Last Call store in Milpitas in No. Great Mall in Milpitas
and increased their productivity by more California both held their grand
than 22%. opening last season. WCSC stored both
Stock went live with the Automated stores’ fixtures and aided in their
Replenish system; making it possible for shipment to help make both grand
the Beverly Hills store to replenish openings possible.
merchandise sold, automatically WCSC always plays a significant role in
(stocked in the WCSC). the West Coast stores’ success. It’s what
we’re in business for.
Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333

2. Genie Phase II Training & Human Resources News
HR Conclave
The Genie Phase II training and HR Two days were dedicated to the
conclave, held January 8 in Dallas, Genie phase II hands-on training,
Texas, was participated by HR focusing on Line Manager and
Managers from Service Centers, Employee Self Service and
Clearance Stores, and the CUSP iRecruitment. Rose Jakab and
Stores. This conclave was a Garfield Harrison of Corporate LP
wonderful opportunity for HR presented the new background
professionals from different locations screening system that included
to put faces to names only seen on escreen for drug testing.
E-mails and voices only heard by The Genie team did an excellent
phone. Representing the WCSC is job in facilitating the classes. The
Marilou Guerrero, Manager, who team was represented by Jen
Hands on Training
met her counterparts from five other Eiseman, Andi Jakab, Peggy
Standing- Patty Odenbrett; Seated (front) Marilou
service centers all over the United Cavalle, and Nan McVey.
Guerrero; Seated (back) Amy Taylor States.
Mr. Ken Day of the National Service
Presentations were made by HR top Center took the time out of his busy
executives: Marita O’Dea, Lee schedule to drive to Dallas from
Roever, and Nina Fabian, while Longview to treat the Service
Taylor Petersen and Katie Sweet did Center HR Managers to a wonderful
an excellent presentation on dinner at the Newport Restaurant in
Recruitment and Behavioral Downtown Dallas. What a treat it
Interviewing and Susan Moye co- was!
presented real-life case studies for
Associate Relations.
Dinner with Ken Day -Newport
Restaurant, Dallas TX
L (front-back): Amy Taylor, Patty
Odenbrett, Pam Kidd, Susan Goldstein
R (front-back): Marilou Guerrero, Ken
Day, Denice Fuller
Recruitment
The HR/LP team hired a total of 14 seasonal / on-call
workers to assist with the holiday rush. High
productivity ratings were maintained as the more
seasoned and regular associates were tasked to Lori Silver, HR Coordinator – provides a friendly face
work on the more intricate corporate orders and and voice of HR at the front desk and the phones
other holiday gift wraps, while the seasonal workers
were given the straight sends to pack, with two of
them assigned to help unload the morning trucks in
Receiving. With the December 2005 Genie go-live,
December 2006 recruitment went off without a hitch
from the HR processing standpoint.
Quality Assurance Audits
Quality assurance has a lot to brag about these days.
The WCSC increased the number of garments to be
audited from 20% to 40%. For the first time in WCSC
history, a record high of 57.99% of garments altered in
the facility were audited. This success resonates to the
regional stores, which impacts customer service
positively as evident by the wonderful feedback Alma Coronado, Auditor, responsible for Audits in
Alterations, Warehouse, and Loss Prevention
recently received from Mr. Tom Lind, SVP/Director of
Stores.
Page 2 Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333

3. Stock & Receiving News
Auto Replenishment is a fabulous tool used
Stock and Receiving –- by the WCSC to aid the Beverly Hills store to
focus on sales without any need to reorder
Exploring new business from Stock, the items just sold.
opportunities
In the future, WCSC will include more Fashion
Island store merchandise to stock. The San
Diego store will look into utilizing this service
as their store continues to grow. In 2008, the
Topanga Canyon store (Los Angeles Valley
area) will open. This will open other business
opportunities for the WCSC, particularly in
Stock.
Currently, Stock has been occupied with
moving their location within the building in
order to make room for Central Alteration’s
physical expansion. Enabling this is the move
of fixtures and no-cost items to a 2nd building
recently leased by WCSC to make room for
only live merchandise in the main building.
Statistical Data Season-to-Date
Stock and Receiving Orders Picked 7300
“offer and support
Optimum Selling
Units Shipped 255,542
services to every
customer.”
Current $2.9 Million
Inventory Craig Reynolds presents the Star Award
to Janet Fowler, Manager, for her
contribution to the success of the CUSP
Receiving News store grand opening in Century City
team of dock men have been
The Direct Receipt pilot project was
instrumental in moving store fixtures,
completed in six months for the supplies, and no-cost/no-retail
Contemporary Division for regional stores. items to the new building, located
Rose Haydel, receiving clerk, lead this just three miles from the WCSC.
endeavor in order to test the viability of Everyone in the department is
processing direct receipts from four feeling the crunch from RTVs,
contemporary vendors, which was recently transfers, direct receipts, making
ended in January. The result of the test Katie Botello and Thomas
revealed little to no effect on sales. This is Escobedo, among the busiest and
an example of how Neiman Marcus hard working team members along
with Rose Haydel, Jose Robles,
“explores new business opportunities,” one
Cecilia Marujo and Manager Janet
of our company values.
Fowler. Alongside with this team is
The Receiving dock has been extremely the Stock team who has been
busy preparing for the construction project working diligently to move
that will be completed in June of 2007. merchandise to prepare for the
expansion. Thank you Lupe Doyle,
Richard Velasco, dock master, with a
Irene Coronado, and Rene Solano.
Page 3 Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333

4. LA Sends News
A word from Craig Reynolds
It is with regret that I announce the
departure of Lisa Nakasone, Manager. For
two and a half years she has managed to
increase productivity for the department
that consequently decreased the cost. She
enjoyed working with her many store
business partners and will surely miss
everyone, including her department staff,
who have all enjoyed working with her. We
wish Lisa well in her new endeavor and
thank her for being part of the team.
Ken Day awards Lisa Nakasone for her
“Bright Idea,” saving the company thousands In the absence of a manager, Elva
of Dollars Gutierrez and Gloria Matheney take care of
Sends and Customer service. We thank
them for being such troopers!
12.1% increase in
units produced
Comparison Units Cost/ Unit/Hr
Unit 22.7% increase in
productivity
Total Yr 70,561 $0.98 9.35
(Actual)
12.3% decrease
in cost per unit
Total Yr (Plan) 65,322 $1.15 7.71
Last Year 62,968 $1.12 7.62
(Actual)
Performance Evaluation Program (PEP) Award
for Highest Productivity:
Eva Rodriguez – 154% rating for the 1st Quarter
LA Sends completed the season with a
whopping 12.1% increase in units
produced with an increase in productivity
of 22.7%. The powerful combination
packed quite a punch that resulted in a
reduction in the cost per unit charged to
the stores. This is another WCSC success
resonating to the regional stores; a win-
win for all!
The department associates continue to
produce at a level above 100%, while
maintaining the quality of the work. The
average productivity rating for seasoned
associates is between 120%-150%.
Page 4 Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333

5. Central Alterations News
During the fall season, the regional stores fitted 45,584
garments, 47.6% of the total garments were processed
through the WCSC.
Store Garments Cost/Unit Units/Hour
Actual Plan Actual Plan
Beverly
Hills 14,011 .52 .54 50.5 49.8
Fashion
Island 8,392 .50 .54 54.3 50.3
San
Francisco 15,585 .55 .60 53.2 52.0
San
Diego 7,596 .48 .51 56.4 55.8
WCSC 21,707 .36 .32 59.9 63.9
Recently, we bid Charles Hubacka, manager of the
San Francisco alterations, happy trails, as he road
off in the sunset to bask in the glory of his retirement
after 34 years with Neiman Marcus.
In January, the Chicago and the New Jersey
Service Centers have graciously reached out to
rescue the WCSC from garment overload in order to
maintain the integrity of customer promise dates.
For that, the WCSC thanks them for your partnership!
As the WCSC continues to grow and develop to
Aynel Vechi, Pedro Guzman, & Dan Fabricant meet and exceed Neiman Marcus’ customers’
– Pedro’s retirement party expectations, a need for a remodel and expansion
has come. February is the month when construction
commences and Alterations thanks every staff and
manager of the WCSC for accommodating this
need and doing everything necessary to make the
project as smooth as possible. The Alterations team
is deeply grateful, without their help, the expansion
will not be possible.
The Alterations team also joins Human Resources in
celebrating the recent success of Quality Assurance
Partnership is the in auditing 57.99% of garments altered in the
key to success workroom. This is a joint commitment to customer
service excellence.
Page 5 Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333

6. Fur Services News
The West Coast Fur Service Center
(WCFSC) ended the season with
combined sales of $190,656. Sales in fur
services include repairs/restyles, cleaning,
and storage.
Welcome!
Maria Mayorga, fur finisher,
who is the newest addition to
the WCFSC team.
Joe Moreno and his team are gearing up
for the busy spring restyle season. As a
result, Joe has planned restyle clinics for
all his stores.
The spring plan will be aggressive, in order
to make up for the sales from the fall
season. With Joe and his very dedicated
team, this plan will not be impossible to
meet.
WCFSC Team
Joe Moreno, Manager
Keny Ozuna, Coordinator
Robert Fuentes, Fur Cleaner
Vivian Martinez, Clerk
George Sosa, Furrier
Irma Munguia, Finisher
Maria Mayorga, Finisher
Keny Ozuna & Joe Moreno
Page 6 Fall Season End Edition ● February 2007 ● West Coast Service Center ● (562) 463-9333