Adding Mailing Services in a Print Media Environment Stephen R. Whittaker Adjunct Professor, RIT CIAS/SPM Vice President, Quality Assurance Monroe Litho Rochester, NY ASQ/CMQ/OE, CQA, Senior Member

What do our customers need? History from subcontracted services Identify specific client requirements [21 questions] Interviewed specific clients about service requirements Build the operating model Review PIA/GATF Economic Data

Development of a Strategy What are the required elements? [Critical Element: Scope] –Develop the capability to imprint mailing information on collateral that is printed in our facility –Imprinting from supplied files directly onto product –Fold, seal, imprint, bundle and deliver to the USPS

Competitors Developed a SWOT analysis of three major resources Strength: Very strong client realtionships [out of town] Challenge: Tremendous learning curve

Technology Basic technology: Purchase all NEW Equipment –Basic Unit to imprint [Turnkey HP Array System with Cheshire Base] –BCC Mailing Software and Accessories –Pro-Fold Linx-H Tabber –SV 5000 Auto Strapper –Quoted at near $100,000*

Team Resources People [three additional staff] Equipment: Defined Location: Integrate with new Fulfillment Center Support: IT Management [Critical] Operation: Training Sales: Ongoing training/client education

Schedule Financial Considerations: –Prior year services at $125,000 –Need approximately $225,000 annual revenue to provide two year ROI* –Constructed a complete financial template as an operating guide

Current Status Overview of progress against schedule –Monitoring contract purchases YTD vs. ROI Volume requirements –As of 1 July, we are six-eight months away from initiating this plan –Challenge: Changing client demands and products in 2007

Summary Positive business plan for growth Fits the firm’s strategic initiative Positive marketing initiative Excellent cooperation from USPS Thanks for your assistance!