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Smart Source LLC

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  • 1. Print and Promotional Product Management Presented by: Smart Source LLC 1
  • 2. Smart Source Overview Practice Areas Key Facts Company Mission • e-Auction Sourcing • Founded in 2003 To manage all aspects of print • Production Management • Financially Strong spend and provide a “one- stop shop” focused on • Branding and e-Marketing • 17 Locations lowering the total cost of Solutions • Professional staff of 100+ ownership by 10%-30% • Inventory Management and • Database of 2,500 suppliers Pic-Pac Fulfillment • Online Company e-Stores As a Gatekeeper we manage print procurement process and eliminate hidden costs, while increasing service and qualityConfidential - Smart Source, LLC 2
  • 3. Smart Source Provides Services to Recognized Industry Leaders 3Confidential - Smart Source, LLC
  • 4. Smart Source’s U.S. Locations Sourcing Centers, Representatives and Distribution Points Support & Sourcing Centers Fulfillment Points On & Off site RepresentativesConfidential - Smart Source, LLC 4
  • 5. Smart Source Product Range Anything Branded Marketing Materials Operational Print Promotional Products Print Services • Brochures / Flyers • ATM Supplies • Apparel • Datasheets / Sell Sheets • Billing Statements • Awards & Recognition Assembly/Kitting • Sales Kits / Pocket Folders • Checks • Bags & Travel • Envelopes • Business Accessories Event Planning • Catalogs / Magazines • Large Format • Forms • Drinkware Graphic Design & • Direct Mail • Inserts/Business Reply • Executive Gifts Layout • POS and POP Displays Cards • Signage • Posters / Banners • Label product and mailing • Sports Accessories Language Translation • Variable Print-on-Demand • Packaging • Holiday Gifts • Stationery-Letterhead, envelopes, • Manuals/ Instructions/ • Pens & Pencils Pre-press Bus Cards, Sell Sheets, Guides Postcards Flyers, and Data • Trade Show Giveaways Process Consulting Warehousing We do not simply produce materials- we manage the supply chain, innovate production, and shape campaigns that keep you ahead of the curveConfidential - Smart Source, LLC 5
  • 6. A Shrinking Print Industry Creates Opportunity Print Industry Dynamics • The industry is shrinking which causes extra manufacturing capacity • Print is a complex category with many variations - one size does not fit all • Over time printers lower prices to attract new work to fill the capacity void Challenges • What can be done to take advantage of lower cost with current resources? • How can I take advantage of new technologies (P.O.D, e-Blasts, PURLs, e-Forms) that are changing the print industry? An empty press sells for roughly 40% less than a full press….Confidential - Smart Source, LLC 6
  • 7. e-RFX Spec-Bid-Buy SystemOur fully integrated e-RFX quoting systemcaptures specifications and routes quotes tothe appropriate Geo-qualified manufacturers. 7
  • 8. An Example: Open Book Bid Tab Vendor Rating and Turn Time Previous Price Paid Low Price HighlightedConfidential - Smart Source, LLC 8
  • 9. An Example: Print Inventory Management Smart Source’s inventory management technology forecasts optimum reorder quantities based on real time usage not min/max levels. Inventory Case Example 1 Year Economic Print Inventory Management Later Value Before Generated Annual print volume produced $10 mill. $10 mill. % Straight ship 20% 20% % Produced to inventory 80% 80% Annual inventory addition $8 mill. $8 mill. Inventory turns 1.5 4 Average value of carried inventory $5.3 mill. $2 mill. Obsolescence @18% 1 $950k $360k $590k Carrying Cost @12% 2 $635k $240k $395k Storage Cost @14% $742k $280k $462k $1,447M annually, or Notes: ~14.4% of baseline 1 The Company estimated their historical obsolescence factor at 18%. Higher figures are not unusual. For example, the DMIA estimates that inventory obsolescence runs at 30% annually from their study on the topic. 2 Weighted average cost of capital (WACC) as the carrying cost percentage; 12% in this example.Confidential - Smart Source, LLC 9
  • 10. Dashboard Control Reports Customer Performance Summary Purchases vs. Inventory Status $300,000 Shipment Value: Sales Order Dollars Pct. of Sales 257,530 Catalog Sales: $257,530 73% Distribution Value Straight Ship: $93,400 27% TTM Gross Sales: $350,390 100% Active Inventory Aged < 6 Months $200,000 Inventory Aging: Inventory Value $ Inventory Value % Active Inventory Value < 6-months: $91,120 74% Inventory Aged > 6 Months Aged Inventory Value > 6-months: $32,834 26% $91,120 Inventory Value March 12, 2007: $123,954 $100,000 Active Inventory Turns / Year: 2.8 On-time Shipping for Catalog: $19,479 Same Day & One Day Shipping %: 87% 2nd Day Shipping %: 9% $0 3rd Day or Greater Shipping %: 4% Shipments By Product Type Inventory Aging Forecast $ amount, % 6 Month Aged Inventory Value as of 3/12/2010 $65,472 Drink Ware Misc., Promotional - $70,000 $32,545.18 $343.63, 0% General, $65,301 Writing Instruments 9% .09, 19% $60,000 $36,167.73 11% $50,000 Golf $14,598.37 Apparel - $40,000 4% General $67,170.54 $30,000 19% Bags $20,000 $28,251.78 8% Desk Items $10,263 $8,882 $10,000 $2,006 $749 $3,748 $106,011.68 30% $0 April „10 May „10 June „10 July „10 August „10 Sept. „10Confidential - Smart Source, LLC 10
  • 11. Typical Transition Plan (moving ½ of existing inventory)TRANSITION TIME LINE Week1 Week 2 Week 3 Week 5 Week 6 Week 7 Week 8 Week 9Contract for Print ManagementProcess New OrdersSet-up Online CatalogEstablish Reorder Levels for ItemsEstablish User Profiles and Order ApprovalApprove Online Catalog and TestIdentify and Verify Inventory ValueTransfer 1st half InventoryAnnouncement to Users /Online User GuideGo Live DateDeplete Remaining Inventory 11
  • 12. Summary of Value Service Offering • Category Partner for the Long Term – Scalability to grow with your needs – Strong category knowledge – On-site customer and consultative service • Web Based Technology – Variable 1-to-1 personalization, and e-marketing – Brand control and compliance management – Order History, Usage, Content Library, Inventory – Budget control by User • Cost Management – Open book pricing and unbiased e-sourcing – Contracted and guaranteed savings of 10% to 30% – Faster inventory turns and lower costs 12Confidential - Smart Source, LLC
  • 13. Industry Statistics Strategic supplier agreements, coupled with e-procurement, can reduce operating costs by 20-30%. Granada Research “Document mismanagement claims 12-15% of corporate revenue” Gartner Group Companies today spend about 15% of total revenue on overall document management Dataware Technologies “The benefits of personalized print communications include a 34% increase in response rate, 25% increase in order size, and a 48% increase in repeat orders” CAP Ventures For every $1.00 spent on printing (ink and paper) companies spend an average of 10.00 in the process. CAP VenturesProcess includes: creative, requisition, order entry, proofing, receiving, obsolescence, internal document review, gathering usage data, warehousing, administrative, fulfillment and end user distribution With a solid understanding of what is going on in the industry and documented success in the implementation and management of scalable solutions to some of the country’s largest financial institutions I have the knowledge and experience to make a significant impact on your organization. 13

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