introduction to smart source

An Introduction to Smart Source

Presented by: Scott Weathers, Senior Account Executive

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Smart Source Overview

Key Facts

• Founded in 2003 • Financially Strong • 17 Locations • Professional staff of 130 • Database of 2,500 suppliers

Company Mission

To manage all aspects of print spend and provide a “one-stop shop” focused on lowering the total cost of ownership by 10%-30%

Practice Areas

• e-RFX Sourcing Technology • Production Management • Branding and e-Marketing Solutions

• Inventory Management and 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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Smart Source Product Range

Promotional Products

• Apparel • Awards & Recognition • Bags & Travel • Business Accessories • Drinkware • Executive Gifts • Signage • Sports Accessories • Holiday Gifts • Pens & Pencils • Trade Show Giveaways

Graphic Design & Layout

Pre-press

Language Translation

Warehousing

Assembly/Kitting

Anything Branded

Marketing Materials

• e-Blast and PURLs • Brochures / Flyers • Datasheets / Sell Sheets • Sales Kits / Pocket Folders • Catalogs / Magazines • Direct Mail • POS and POP Displays • Posters / Banners • Variable Print-on-Demand •  Stationery-Letterhead, envelopes,

Bus Cards, Sell Sheets, Postcards Flyers, and Data

Process Consulting

Operational Print

• ATM Supplies • Billing Statements • Checks • Envelopes • Forms •  Inserts/Business Reply

Cards • Label product and mailing • Packaging • Manuals/ Instructions/

Guides

Print Services

We do not simply produce materials- we manage the supply chain, innovate production, and shape

campaigns that keep you ahead of the curve

Event Planning


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Smart Source Provides Services to Recognized Industry Leaders


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Smart Source’s Operational Infrastructure Network

Smart Source Vendor Base

Commercial Print

Stationery

Forms

Envelopes

Tag & Label Distribution & Kitting Promotional Item

Others

(# of vendors by category)

332

159

86

166

134

83

541

82

•  Total Factories 1,200 •  Total Presses & Equipment 9,500 •  Total Shipments $11.5 billion •  Total Employees 110,000

•  Total Online Users 18,500 •  On-time Shipments 99.6% •  Avg. Inv Turns per year 3.6x •  Inv Accuracy (audited 2x/yr) 99.9%

Smart Source Distribution Points


6 Confidential - Smart Source, LLC

•  Unbiased Vendor Manager (include incumbent suppliers)

•  Pure Gatekeeper (no factory affiliation)

•  No hidden factory rebates (cost is cost)

What Makes Smart Source Different?

Outsourcing print and brand merchandising collateral is the fastest growth segment in the industry

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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

A Shrinking Print Industry Creates Opportunity


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 60% less than a full press….

Pricing Comparison by Type of Job

The worst printer for one job can be the best printer on the next job.

Short-run Jobs

Large - Size Jobs Medium-Size Jobs

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Capacity Drives Large Variances in Print Prices

Pricing Comparison Across all Types of Jobs

On average over all types of jobs, there is a +/- 30% pricing variance from highest to lowest cost printer.

Highest Cost

Printer

Median Lowest Cost

Printer

1.3

1.0

0.7

Pricing Difference +/– 30%

B C A B A C

1.0 1.6

1.2 1.0

0.8

Suppliers

A

Suppliers

C

2.0

0.8 1.0

Using the right printer to match job requirements is critical

Suppliers

B

Study compares prices for jobs ranging in size and specs and shows (+/- 30%) variation across all jobs. The shorter the run size the larger the variance. As the industry moves to shorter run sizes the best printer will vary based on the equipment requirements for that job.


+/– 130% +/– 20% +/– 60%

2.6

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e-RFX Spec-Bid-Buy Technology

This is our fully integrated e-RFX quoting system that captures specifications and routes quotes to the appropriate pre-qualified manufacturers.


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An Example: Open Book Bid Tab


Vendor Rating and Turn Time

Previous Price Paid

Low Price Highlighted

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Vendor Sourcing and Order Management Process

1)  Specs/files to On-site traffic manager or back office as preferred 2)  Open book e-RFX bidding and P.O. generation 3)  Files returned and hosted on FTP Asset Management site 4)  Summary Invoice with cost center allocation and delivery audit


•  Designers •  Marketing •  Business User

with a one-off requirement

•  Procurement

Stakeholders

•  Specs and Files • Re-order notice

Brand Guidelines

Search Criteria Doc Link

Procurement Services

Sourcing: Bid/Buy – e-RFX

Customer Service

Vendor Management

Creative Recommendations

PO Generation

Real Time Reporting

Brand & Quality Control •  Summary Invoice • Reporting

Certified Manufacturers

•  E-RFX • Quotes •  PO’s

• Quality Check •  Invoice Audit •  Approval

Winning Manufacturer

SS Distribution Centers

• Quality Check •  Approval

1 3 2

• Direct Mailing & Kitting Shipments •  Single & Multi-Site Deliveries

• Online Delivery Tracking

Members

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12 Confidential - Smart Source, LLC

Current Capabilities:

  e-RFX open bidding

  Variable 1-to-1 Print on Demand

  e-Marketing and PURLs

  Digital Asset Management

  Budget control, order approval and order status

  Real-time proofing, reporting and delivery tracking

Upgrade Coming Soon: (online user portal)

  Online specifications templates

  Real-time status updates for transactional orders

  Interactive Bid-Tabs (p-Card enabled)

  Real-time reporting for transactional orders

Gatekeeper’s Technical Capabilities

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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 –  Unbiased e-sourcing –  Contracted and guaranteed savings of 10% to 30% –  Faster inventory turns and lower costs

Summary of Offering


introduction to smart source

Business

smart source different

print services

shrinking print industry

outsourcing print

aspects of print

print industry dynamics

print procurement process

total shipments