This Managed Services Program proactively creates additional net profit for small and medium enterprises through new operations outside their traditional geographic terrain.

1. Global Sales and
Purchasing™
A Managed Service Program to
increase the Net Profitability of
Companies through International
activities.

2. Terminology and why the Program benefits its Users
and Participants.
• Managed services is the practice of outsourcing on a proactive
basis management responsibilities and functions and a strategic method for improving
operations and cutting expenses. (Wikipedia)
• Supply-chain management has been defined as the “design, planning, execution,
control, and monitoring of supply chain activities with the objective of creating net
value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance globally.” (Wikipedia)
• The requirements of “proactive basis”, “worldwide” and “globally” in these two
definitions imply an opportunity gap in many small and medium size companies
lacking the scale of economics to overcome international barriers or to be proactive.
• GSP™ is a managed services program which consolidates proactive and international
activities to create an enabling scale of economics for its users to profit from the
closing of the opportunity gap caused by the geographical constraints of current
operations. Outsourcing provides the necessary additional specialized skills and
activities at an affordable and predictable cost. All GSP™ transactions are new to
Users.

3. Targeted Users and Managed Service Providers
(“MSP”)
Users:
• Small and Medium Manufacturers with limited global exposure re selling of
products or sourcing of raw materials.
• Medium sized Sales Organizations with limited global exposure re sourcing of
products or selling their products to a wider geographical expanse.
MSP team members:
• Texas-Carolina Inc (“TCI”), with its worldwide associates and network of
suppliers in
• International Banking, Trade Finance, Air Freight, Sea Freight, Overland
Transportation, Customs Broking, Clearing, Expediting, Lawyers, Goods
Insurance, QC Inspection, Duty Free Zone warehousing, Freight Consolidation,
Packaging and other services.

4. Global Selling and Purchasing™ (“GSP™”)
GSP™ actions taken on behalf of Users include:
• Market Research of manufactured products worldwide and marketing and
sales wherever economically possible;
• Sourcing raw materials for manufacturing or expanded and/or better priced
product range for the supply chain worldwide;
• Executing on International Compliance, Logistics, Payables, Receivables and
Financing
• Budget Control to increased corporate profitability by better than 10% without
payroll, overhead or capital increases by closing the Opportunity Gap for users.

5. Combined Impact of GSP™ on Sales, Purchasing
and Net Profitability of Manufacturer
Sales Revenue Cost of Raw Materials Net Profit
Without GSP $5,000,000 $2,000,000 $750,000
With GSP: Year 1 5,400,000 2,052,000 1,018,000
With GSP: Year 2 6,000,000 2,280,000 1,270,000
Improvement $1,000,000 $240,000 $520,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000

6. Remarks on Financial Impact Table
• Starting at the free initial feasibility study, the MSP will work with the
GSP™ User to establish budgets for the program. In this example GSP™
reduced Raw Materials Costs as a percentage of sales from 40% to 36%
of sales; an improvement of $240,000. Sales improved by 20% and Net
Profits increased from $750,000 to $1,270,000 – a 69% improvement!
• GSP™ costs are low and predictable and the User does not incur
additional overhead or headcount or company contributions to Federal,
State and Healthcare costs. Additional supply chain gross margin will
tend to contribute well above the standard percentages to Net
Profitability.

7. The MSP is aimed at Manufacturers and Large
Distributions groups, such as Regional Wholesalers or
Independent Sales Representative Groups
• Better results are generally
expected from Users of certain
size with certain product type.
• Products with certain physical
attributes such as a relatively low
transportation cost to selling
price, non-perishable nature and
early in a life cycle of at least
three years.
• These rules are general
indications.
General Guide
Line
Manufacturers Sales Groups
Annual
Revenue
$2mm - $50mm $5mm-$50mm
Transport Ratio <15% <10%
Product Cycle >3 Years >2 Years
Perishable
Products
No No

8. Implementing GSP™
• Step 1: Meetings are held with
the prospective User so that a no
charge Feasibility Study may be
done and an GSP™ agreement
reached.
• Step 2: MSP establishes Sources,
Suppliers, Product details and
Customers and documents.
• Step 3: MSP briefing of all staff
members involved and
Implementation.
• Feasibility Study (and if positive)
• Agreement on Budgeted Income & Costs
Step 1 Feasibility & Agreement
• Identification of Sources, Service Suppliers & Customers
• MSP Documentation developed
Step 2 Matching Needs & Documentation
• Implementation: Staff Education and Guidance during
launch
• Routine supervision and guidance, reporting to
Management.
Step 3 Implementation and Reporting

9. Market Research, Marketing & Sales
GSP™ will on behalf of the User
• Do extensive market research to establish the widest, relevant network of
customers and suppliers of goods and services according to the needs of the
User. Potential material flow chains will be investigated and landed costs will
be established.
• Transform User Sales or Procurement material to be in the correct units and
language and needs of the counterparty.
• Perform the activities to close the deal by visiting, phone calls, netmeetings,
emails or faxes, proving samples and other actions.
• Meticulously attend to Customer Service to ensure the satisfaction necessary
for repeat business. Technical Support and Warranty are cornerstones.

10. Procurement
GSP™ will on behalf of the User:
• Apply the necessary diligence to ensure reliable, punctual sources of quality, warranted
product shipped properly inspected.
• Arrange for the most economical, reliable transportation and expedite shipping,
transportation and clearing.
• Compile all documentation related to the purchase from Request for Quote to Purchase
Order, shipping, clearing and payment instructions.
• Supervise that product is properly insured and inspected.
• Follow up diligently on all requests for technical support, warranty and claims.

11. Payments of Receivables, Payables, Foreign Currency,
Extended Payment Terms and Trade Finance.
GSP™ will on behalf of the User:
• Supervise that A/R are collected and, where necessary, arrange for Credit
Insurance on Receivables shipped on Open Account. Where
appropriate/required GSP will arrange for Trade Financing for Free Floor
Plans, Capital Good sales etc. at best rates and terms. Shari’a law compliancy
will be incorporated where necessary. The User will be protected against
currency exchange risks.
• Arrange for best possible terms from vendors and suppliers of services, which
may include trade financing.
• Use foreign currency where required by the counterparty, but without
exposing the GSP User to risk.

12. Compliance
GSP™ will conduct compliance on behalf of the User to ensure that:
• All transactions meet with Office of Foreign Assets Control approval
regarding product and counterparty.
• All international logistic and financial documentation comply with USA
Federal and State requirements; as well as with those of the
counterparty’s operational base.
• Various classifications are correctly stated but that values most
favorable for shipping rates, foreign duties and tariffs are used.
• Inspections, Certifications and Quality Control are done to best
safeguard the interests of the GSP User.

13. Communications, Support and Reporting
GSP™ will establish with User Internal Departments:
• Communications for least possible difference between GSP™ and
Domestic transactions.
• Support arrangement for logistics, technical support, etc and be
available to User personnel at all relevant times by phone, text, email
and cloud communications.
• Reporting to satisfy User Management information needs regarding
daily needs as well as weekly and monthly reporting on progress against
budgeted targets.

14. GSP™ Costs
Contract renewable
annually
Monthly Fee Success Commission
on shipment value
Program Sales $0 5.0%
Program Purchasing $0 2.5%
Other functions $2,500 0

15. The Next Step:
A No Cost feasibility study done with a
prospective User or
Meeting with a Corporation or Specialist
interested in being part of our Managed
Services Provider Team and work for our
Users in GSP™ programs,
To arrange it, please contact:
Ed Büchner
President: Texas-Carolina Inc
EdBuchner@Texas-Carolina.com
www.Texas-Carolina.com
Mobile 1-704-236-7808
Office 1-704-246-6610 x 303
Fax 1-704-831-5293