Project Charter Revenue/Sales Implications of Trials Black Belt Jack Thackrah NE Region BS – Malvern PA

2 Background – Current Process n Sales Trials are requested by Reps to help in the sales process n Some are required by contract when requested by certain National Accounts n Sales reps use the Trial process to sometimes set up sales that they cannot normally get gear for as trials have priority n Sales Reps configure the equipment for trial using the QUOTE function in Oracle Sales On Line (OSO) in Regions that have implemented ORACLE. n Regional Inventory Controllers have 1 day to respond to trial order requests n Core Trials are delivered within 5 days of order, non-core 10 days with VP/GM hard copy approval n There are multiple reports tracking equipment in trial status throughout IKON n The current policy was written based on IKON’s Organization-wide conversion to ORACLE n It may not be possible to receive 100% compliance to current trial policy as it is designed for ORACLE users n Marketplace DOS and DSM are required to review reports on Trials, Loaners, etc. to determine the value of the equipment out on trial n They should a also be reviewing reports that “Overdue Trials” n Trials can be extended up to 14 days with Sales Manager approval and longer with MVP/GM or RVP/GM approval n Once sold, a Sales Rep must convert the trial to a sale n Stale Sales - Equipment out on trial longer than 45 days will receive a non recoverable charge to the appropriate Marketplace and as of Jan this will be reduced to 30 days or more

3 Project Definition n Problem Statement  Total inventory of trial assets in South Region $5.9M  Limited knowledge/data available to verify ratio of trials converted to sales  Lack of understanding for revenue opportunity and ROI dollars allocated to sales trials  Lack of information supporting optimal trials to include length of trial, type of equipment and accessories, customer requirements, applications and type of trials (closed -end trial)  Inadequate and undefined sales process at marketplace level to facilitate conversion of trial to sale  Requested "trial" data as to the number, dollars, length of time for current period and disposition for last ninety day period

4 Project Definition, Cont’d n Project Objective:  Enhance revenue, improve close ratio of trails and maximize ROI for dollars allocated to trials n Project Benefits:  Improved customer satisfaction as a result of a better understanding of products, services and applications  Maximize asset utilization of trial assets  Increased sales revenue

5 Project Definition, Cont’d n Financial Benefits:  TBD n Project Metric “Y”:  Strategic Goals = Revenue Growth and Improved customer satisfaction n Y 1 = Increased Revenue n Y 2 = Reduced cost of trials n Y 3 = Optimal utilization of trial assets n Defect Definition:  Loss of revenue, margin and inappropriate utilization of trial assets n Leveragability:  Supply chain will benefit from the proper utilization of trial assets, asset recovery, reduced inventory levels and obsolescence

6 Project Team n Champion – John Barbieri, VP/GM Central TX n Financial Analyst – Renate McLeod, Houston TX n Black Belt – Jack Thackrah, Malvern PA n Process Owners – Sales, Finance, Logistics, Service n Master Black Belt – E. Dan Douglas n Team Members: Possibilities  Logistics Analyst – Ester Davis  Order Coordinator – ??  Sales Manager – ??  Production Sales Manager - ??  Field Sales Manager - ??  Systems Analyst - ??  Infosys Systems Analyst – Supplied by Kim Bagi

7 Financial Impact n Old SE Region data available as of Sep  Still maintained for this part of the new SE Region by Alan Brooks

8 Project DMAIC Checklist/Status