Print and Promotional Product Management                Presented by:           Smart Source LLC                          ...
Smart Source Overview                      Practice Areas                         Key Facts                  Company Missi...
Smart Source Provides Services to Recognized Industry Leaders                                                             ...
Smart Source’s U.S. Locations                                           Sourcing Centers, Representatives and Distribution...
Smart Source Product Range                                                                Anything Branded           Marke...
A Shrinking Print Industry Creates Opportunity                          Print Industry Dynamics                          •...
e-RFX Spec-Bid-Buy SystemOur fully integrated e-RFX quoting systemcaptures specifications and routes quotes tothe appropri...
An Example: Open Book Bid Tab   Vendor Rating   and Turn Time                                                Previous     ...
An Example: Print Inventory Management                  Smart Source’s inventory management technology forecasts optimum r...
Dashboard Control Reports         Customer Performance Summary                                                            ...
Typical Transition Plan                      (moving ½ of existing inventory)TRANSITION TIME LINE                         ...
Summary of Value Service Offering                                   •   Category Partner for the Long Term                ...
Industry Statistics           Strategic supplier agreements, coupled with e-procurement, can reduce operating costs by    ...
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Smart Source LLC

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Smart Source LLC

  1. 1. Print and Promotional Product Management Presented by: Smart Source LLC 1
  2. 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. 3. Smart Source Provides Services to Recognized Industry Leaders 3Confidential - Smart Source, LLC
  4. 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. 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. 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. 7. e-RFX Spec-Bid-Buy SystemOur fully integrated e-RFX quoting systemcaptures specifications and routes quotes tothe appropriate Geo-qualified manufacturers. 7
  8. 8. An Example: Open Book Bid Tab Vendor Rating and Turn Time Previous Price Paid Low Price HighlightedConfidential - Smart Source, LLC 8
  9. 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. 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. 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. 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. 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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