DRIVING OUT COSTS

Attacking a commonly overlooked and undermanaged area of spend

Excerpted from Increasing Operational Efficiency by TakingControl of Your Print Spend (InfoTrends Analysis 03/2010)

THE TRADITIONAL COMMERCIAL PRINT SUPPLY CHAIN

Lack of visibility and control

Ine!cient, high cost (hard and soft)

No centralization or leveraging of spend

IMPACT: UP TO 3% OF TOP LINE REVENUE SPENT

ON COMMERCIAL PRINT RELATED COSTS

Fragmented

Complex

Distributed

A complex web of

workflows across

multiple departments,

buyers, suppliers,

agencies, subsidiaries,

distributors, channel

partners and geo-

graphic markets.

Direct Mail

Marketing Collateral

Promotional Products

Displays & Signage

Catalogues

Forms & Labels

Envelopes

Folders

Packaging

Statements

Manuals

Inserts

Boxes

Books

Banners

Posters

And More…

WHY?

PRINTING INDUSTRY FORCES

! Outdated distribution model

! Information asymmetry

! Price discrimination

ORGANIZATIONAL FORCES

! Structure

! Culture

! Inertia

OPPORTUNITY: PRINT BUSINESS PROCESS OUTSOURCING (BPO)

Print BPO ProviderClient

Marketing

Purchasing

HR

Finance

IT

EXPERTISE• All print categories

INFORMATION NETWORK• Proprietary data• Technology

Supplier Ecosystem• Printers• Warehousing• Shipping

Sourcing

Procurement

Production

Storage

Fulfillment

Management

IMPACT: IMMEDIATE COST REDUCTION OPPORTUNITY WITH NO CAPITAL

INVESTMENT, IMPROVED CONTROL AND VISIBILITY, GREATER STAFF PRODUCTIVITY

PRINT BPO DELIVERS BENEFITS ACROSS THE ORGANIZATION

! Reduced indirect costs

! Increased operational e!ciency

! Leveraged buying power

! Strategic sourcing

Finance! Single source access to large

certified supplier network

! Minority spend tracking

! Visibility into spend

! Reporting

Procurement! Increased brand consistency & control

! Guaranteed quality & service

! Inclusion of existing preferred suppliers

! Faster time to market

! Greater return on marketing spend

! Value engineering (product spec optimization)

Marketing

IMPACT: ALIGN CORPORATE-WIDE OBJECTIVES, CREATE MEASURABLE

RESULTS AND DELIVER SUSTAINABLE COST REDUCTION

A SUCCESS STORY: INNERWORKINGS (Nasdaq: INWK)

! A market leader in print BPO

! Proprietary data and information network

! Open book, transparent enterprise solution

! Contractually guaranteed savings

! Up-front fit/no-fit analysis

! Economic audit of current print spend

! Organizational/cultural alignment

! Established implementation model

! Return derived solely from savings (low risk)

CONTACT JIM CARINI, VP MARKETING, FOR FURTHER INFORMATION:

312-784-2607 / jcarini@inwk.com