Since 1991, the Sourcing Interests Group (SIG) has provided forums for networking, relationship building, knowledge sharing and education in a non-commercial environment. SIG, a recognized industry-leading, membership-based organization, helps members to achieve improved business results, sooner, at a lower cost and with reduced risk across the spectrum of outsourcing, offshoring, insourcing, procurement and shared services. SIG members are from both the user and provider communities drawn from Fortune 500 companies. For more information go to www.sourcinginterests.org Welcome to Neutralizing the US Postal Rate Increase: Strategies and Tactics Procurement and Sourcing Professionals Should Know to Help Control the Cost of Mail Presented by Océ Business Services, Inc.

Joseph Freeman, CMDSM, MQC, AQS, ECMP James P. Mullan, CMDSM, EMCM, MQC, CSSGB April 21, 2009 Neutralizing the U.S. Postal Rate Increase: Strategies and Tactics Procurement and Sourcing Professionals Should Know to Help Control the Cost of Mail

Speakers Joe Freeman, CMDSM, MQC, AQS, ECMP Joe is a Business Solutions Architect with over 20 years of experience managing planning, and implementing large and complex mail center operations in Fortune 1000 companies. He is a leader in the Mail Systems Management Association (MSMA) where he currently serves as the NY Chapter President. James P. Mullan, CMDSM, EMCM, MQC Jim is a National Operations Manager at Océ responsible for overseeing complex client mail operations. His 35 years of experience includes mail process management, mail automation, shipping & receiving, disaster recovery planning, distribution, and fulfillment. Jim currently serves as Executive Vice President of the GNY MSMA. He also served as Chairman on the CMDSM Study Guide Committee.

What shape is it?

Poll Question #1 Do you know what your total cost of mail is? Yes No

Poll question #2 Has your company implemented changes to take advantage of the postal discounts offered under the shape-based pricing method? Yes No Don’t know / not sure

Mail cost reduction tactics Letter - reduce thickness to < ¼ inch 6” x 9.5” + = $1.14 Flat Rate 10 sheets folded in half < ¼ thick + = $0.59 Letter Rate Reduce envelope thickness save 40%! 6 Pages 6 Pages 6 Pages 6 Pages 10 sheets tri-folded 20lb. stock > ¼” thick 4” x 9.5” From To For every 10,000 pieces save = $5,100

Mail cost reduction tactics Category - change from FLAT to Letter + = $1.14 + = $0.59 10” x 13” Flat Change size category by folding save 49%! From To 9 sheets folded in half 6” x 9.5” For every 10,000 pieces save = $5,500 6 Pages 6 Pages 6 Pages 6 Pages 6 Pages 9 Sheets mailed flat

Mail cost reduction tactics Automation - IMB 2 oz. letter 1 oz. letter 33.4¢ 45.9 ¢ Automated 21% Savings 20% Savings Based on 3-digit sort Not Automated 59 ¢ 42 ¢ Automate and save 20%! Automation requires a minimum volume of 200 mail pieces

Mail cost reduction tactics Duplex print reduces weight and thickness by 50% 10 Pg document Double side print, 5 sheets Weight reduced by 1 oz. Mail category – letter (bi-folded) Cost $0.42 6” x 9.5” 10 Pg document single side print, 10 sheets If tri-fold thickness >1/4 = flat Or Flat Mail category – flat Cost $1.14 10 Pg document single side print, 10 sheets Mail category – letter (bi-folded) Cost $0.59 Bi-fold, change shape save 49% 6” x 9.5” Duplex print, reduce weight, (help the environment) + Bi-fold, change shape save 63% 9” x 13” or 4” x 9.5” thickness >1/4”

Thank You! Q & A Joe Freeman [email_address] Jim Mullan [email_address] ADVANCING TO A HIGHER LEVEL Business Services www.obs-innovation.com

Since 1991, the Sourcing Interests Group (SIG) has provided forums for networking, relationship building, knowledge sharing and education in a non-commercial environment. SIG, a recognized industry-leading, membership-based organization, helps members to achieve improved business results, sooner, at a lower cost and with reduced risk across the spectrum of outsourcing, offshoring, insourcing, procurement and shared services. SIG members are from both the user and provider communities drawn from Fortune 500 companies. For more information go to www.sourcinginterests.org Thank you for attending Océ Business Services, Inc. presentation of: Neutralizing the US Postal Rate Increase: Strategies and Tactics Procurement and Sourcing Professionals Should Know to Help Control the Cost of Mail