Smart Source is a print and promotional product management company with over 100 professional staff across 17 locations. It offers a wide range of services including sourcing, production management, branding, inventory management, and fulfillment. The company aims to lower clients' total cost of ownership for print and promotional products by 10-30% by managing the entire procurement process. It works with many recognized industry leaders and has a database of over 2,500 suppliers. Smart Source provides visibility into clients' print spending through dashboard reports and an e-RFX quoting system to source high quality products at competitive prices.

1. Print and Promotional Product Management
Presented by:
Smart Source LLC
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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 quality
Confidential - Smart Source, LLC
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3. Smart Source Provides Services to Recognized Industry Leaders
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Confidential - Smart Source, LLC

4. Smart Source’s U.S. Locations
Sourcing Centers, Representatives and Distribution Points
Support & Sourcing Centers
Fulfillment Points
On & Off site Representatives
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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 curve
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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….
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7. e-RFX Spec-Bid-Buy System
Our fully integrated e-RFX quoting system
captures specifications and routes quotes to
the appropriate Geo-qualified manufacturers.
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8. An Example: Open Book Bid Tab
Vendor Rating
and Turn Time
Previous
Price Paid
Low Price
Highlighted
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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.
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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. „10
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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 9
Contract for Print Management
Process New Orders
Set-up Online Catalog
Establish Reorder Levels for Items
Establish User Profiles and Order Approval
Approve Online Catalog and Test
Identify and Verify Inventory Value
Transfer 1st half Inventory
Announcement to Users /Online User Guide
Go Live Date
Deplete Remaining Inventory
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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
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Confidential - 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 Ventures
Process 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.
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