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DRIVING OUT COSTS
Attacking a commonly overlooked and undermanaged area of spend




                   Excerpted from Increasing Operational Efficiency by Taking
                   Control of Your Print Spend (InfoTrends Analysis 03/2010)
THE TRADITIONAL COMMERCIAL PRINT SUPPLY CHAIN



Direct Mail
Marketing Collateral
Promotional Products
Displays & Signage
Catalogues                                                         A complex web of
Forms & Labels                                                     workflows across
Envelopes                                                          multiple departments,
Folders
                                                                   buyers, suppliers,
Packaging
Statements
                                                                   agencies, subsidiaries,
Manuals                                                            distributors, channel
Inserts                                                            partners and geo-
Boxes                                                              graphic markets.
Books
Banners
Posters
And More…




                  Fragmented     Lack of visibility and control
                       Complex   Ine!cient, high cost (hard and soft)
                   Distributed   No centralization or leveraging of spend




                IMPACT: UP TO 3% OF TOP LINE REVENUE SPENT
                   ON COMMERCIAL PRINT RELATED COSTS
WHY?




PRINTING INDUSTRY FORCES               ORGANIZATIONAL FORCES

! Outdated distribution model          ! Structure

! Information asymmetry                ! Culture

! Price discrimination                 ! Inertia
OPPORTUNITY: PRINT BUSINESS PROCESS OUTSOURCING (BPO)



              Client                    Print BPO Provider


                                                       Sourcing
            Marketing
                            EXPERTISE                Procurement
            Purchasing      • All print categories
                                                      Production
                            INFORMATION NETWORK
               HR           • Proprietary data
                            • Technology                Storage
             Finance
                            Supplier Ecosystem        Fulfillment
                            • Printers
                IT          • Warehousing
                            • Shipping               Management




    IMPACT: IMMEDIATE COST REDUCTION OPPORTUNITY WITH NO CAPITAL
INVESTMENT, IMPROVED CONTROL AND VISIBILITY, GREATER STAFF PRODUCTIVITY
PRINT BPO DELIVERS BENEFITS ACROSS THE ORGANIZATION




Finance                            Marketing                                         Procurement
! Reduced indirect costs           ! Increased brand consistency & control           ! Single source access to large
! Increased operational e!ciency   ! Guaranteed quality & service                      certified supplier network
! Leveraged buying power           ! Inclusion of existing preferred suppliers       ! Minority spend tracking
! Strategic sourcing               ! Faster time to market                           ! Visibility into spend
                                   ! Greater return on marketing spend               ! Reporting
                                   ! Value engineering (product spec optimization)




             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

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Print BPO Primer

  • 1. DRIVING OUT COSTS Attacking a commonly overlooked and undermanaged area of spend Excerpted from Increasing Operational Efficiency by Taking Control of Your Print Spend (InfoTrends Analysis 03/2010)
  • 2. THE TRADITIONAL COMMERCIAL PRINT SUPPLY CHAIN Direct Mail Marketing Collateral Promotional Products Displays & Signage Catalogues A complex web of Forms & Labels workflows across Envelopes multiple departments, Folders buyers, suppliers, Packaging Statements agencies, subsidiaries, Manuals distributors, channel Inserts partners and geo- Boxes graphic markets. Books Banners Posters And More… Fragmented Lack of visibility and control Complex Ine!cient, high cost (hard and soft) Distributed No centralization or leveraging of spend IMPACT: UP TO 3% OF TOP LINE REVENUE SPENT ON COMMERCIAL PRINT RELATED COSTS
  • 3. WHY? PRINTING INDUSTRY FORCES ORGANIZATIONAL FORCES ! Outdated distribution model ! Structure ! Information asymmetry ! Culture ! Price discrimination ! Inertia
  • 4. OPPORTUNITY: PRINT BUSINESS PROCESS OUTSOURCING (BPO) Client Print BPO Provider Sourcing Marketing EXPERTISE Procurement Purchasing • All print categories Production INFORMATION NETWORK HR • Proprietary data • Technology Storage Finance Supplier Ecosystem Fulfillment • Printers IT • Warehousing • Shipping Management IMPACT: IMMEDIATE COST REDUCTION OPPORTUNITY WITH NO CAPITAL INVESTMENT, IMPROVED CONTROL AND VISIBILITY, GREATER STAFF PRODUCTIVITY
  • 5. PRINT BPO DELIVERS BENEFITS ACROSS THE ORGANIZATION Finance Marketing Procurement ! Reduced indirect costs ! Increased brand consistency & control ! Single source access to large ! Increased operational e!ciency ! Guaranteed quality & service certified supplier network ! Leveraged buying power ! Inclusion of existing preferred suppliers ! Minority spend tracking ! Strategic sourcing ! Faster time to market ! Visibility into spend ! Greater return on marketing spend ! Reporting ! Value engineering (product spec optimization) IMPACT: ALIGN CORPORATE-WIDE OBJECTIVES, CREATE MEASURABLE RESULTS AND DELIVER SUSTAINABLE COST REDUCTION
  • 6. 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