Delivering Value at YXZ

Company ABC Business Value Case Study

CSX Transportation BackgroundYXZ, Inc. is a B2B distributor of products used to maintain and operate facilities. Over xx million businesses and institutions worldwide rely on YXZ for products such as safety gloves, ladders, motors and janitorial supplies, along with services like inventory management and technical support.

YXZ’s Strategic Priorities

DRAFT

Company ABC supports YXZ’s top business priorities:

• Create unique value for customers

– Create insight-driven solutions for all types of customers

• Ensure an effortless customer experience

– Find easier ways for customers to do business with us

• Reduce costs

– Standardize and eliminate unnecessary processes and steps

– Realize the benefits of our investments

• Help each other grow and succeed

– Equip and energize team members to excel amid change

• Be a responsible steward

– Make choices with a long-term view of impact

• Conducted assessment of existing fleet

• Deployed modern fleet of Company ABC MFPs

and monochrome printers

• Outsourced fleet management to Company

ABC via Managed Print Services (MPS)

agreement with proactive consumables

management

• Implemented Company ABC Print Release

solution to reduce printing and increase

security

• Deployed Company ABC OCR solutions to

capture efficiencies and accelerate processes

Company ABC Products, Solutions and

Services

YXZ: B2B Distribution Leader

Location: Over 100 locations; Headquartered in USA Employees: Approx. 15,000

YXZ’s investment in Company ABC products, solutions and services will generate $XM total

benefits in the first 5 years, with a cumulative net cost reduction of $XM over 5 years.

• $XXXK CAPEX device cost avoidance of over 5 years

• Optimized usage: x.x users per device, from x.x per device

• Over XX% of devices now connected to network

• $XXXK in cost avoidance from Print Release solution over 5 years

- Avoided printing 6.6 million pages (19% reduction)

• $XXK cost savings realized from scanning solutions

• XX% reduction in toner cartridge consumption

• $XXK* cost avoidance relating to reduce cartage use (TBD)

• $XXM per year potential in order processing FTE cost avoidance

- X FTEs optimized due electronic order processing initiatives

- X% faster data processing time and greater data-entry accuracy

DRAFT

-$M

$K

$M

$M $M

Year 1 Year 2 Year3 Year4 Year 5

Financial and Operational Impacts

CUMULATIVE NET BENEFITS

KEY IMPACTS

YXZ’s output fleet was rationalized and networked, with the number of devices reduced to

5,000 (all Company ABC models) even while YXZ continues to expand and grow

Fleet Optimization

All Locations

Users per device

Legacy Environment X

Current/Goal Environment X

Help Each Other Grow & Succeed

Cost Reduction

BENEFIT IMPACT

• Number of users per printer has risen from XX users per

device before to XX users per device today

• ~X% reduction in the # of devices, resulting in CAPEX

device cost avoidance of $XXXK* over 5 years

• Printer fleet has been modernized with the latest equipment,

software, and services

• Monthly reporting provides Grainer with full visibility,

including device and employee usage

NUMBER OF USERS PER DEVICE

DRAFT

Print Release Benefits

COST IMPACTS

• $XXK per year cost avoidance with, Company ABC Print Release, and

elimination of cover sheets*

- Approx. 6.6 million pages eliminated, a XX% reduction (2014)

• $XXK cost savings generated by Company ABC scanning solutions

- 2015 Mexico scan-to-network solution

Responsible Stewardship

Cost Reduction

5 Year Cost Saving

EARTH DAY 2013/14:

Company ABC’S ZERO IMPACT INITITATIVE

• Company ABC planted 5,881 trees to offset 1

year of office printing output for YXZ

DRAFT

Company ABC Print Release will reduce costs and improve environmental sustainability

ENVIRONMENTAL IMPACTS

• Avoided sending 1,138 lbs. of paper to landfill

• Cut CO2 emissions by 3,552 lbs.

• Avoided consuming 180 gallons of gas

-$M $K $M $M $M

Year 1 Year 2 Year3 Year4 Year 5

Consumables Cost Avoidance

Proactive consumables management simplifies toner management and eliminates costly

stockpiling of toner for different printer brands and models

Responsible Stewardship

Cost Reduction

BENEFIT IMPACT

• Reduced cartridge usage by X% (from X to X); X fewer cartridges are now

required to run existing device fleet

• $XK* cost avoidance relating to reduce cartage use (TBD)

• Introduced automated ordering of toner and other supplies

• Optimized inventory processes to better manage costs

• Eliminated need for employees to reorder consumables, saving

administrative soft costs

• Eliminated toner disposal costs – cartridges shipped by to Company ABC

at no costLEGACY CURRENT/GOAL

XXX

XX

NUMBER OF CARTRIDGES IN USE

X% Reduction

DRAFT

Electronic Order Processing

By converting email orders into an electronic data stream (EDI) that is easily integrated with YXZ’s

system, the company will significantly reduce manual work and labor costs*

ESTIMATED FUTURE BENEFIT IMPACT

• Potentially avoid $XXM per year in labor costs (approx. X FTEs)*

- X% of headcount associated with manual data entry of sales orders

• Reduce processing time by X% and increase data-entry accuracy**

- Enable auto-sorting of “non-orders” (about X% of incoming traffic) for later processing as needed

• Increase security through redaction of credit card information in email attachments

- Enhance PCI compliance

Company ABC SOLUTION OPPORTUNITY

• Capture for Data Entry Automation, Content for Email Capture, ERP Integration and Image Storage

Create Unique Value for Customers

Cost Reduction

DRAFT

TOTAL COST AND BENEFITS BY CATEGORY (5-YEAR VIEW)

$x.xM$xK

$x.xM $x.xM $x.xM

$x.xM

$x.xM

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

CAPEX Benefit MaintenanceCost Avoidances

ConsumablesSavings

Total Benefits CAPEX Cost MaintenanceCost

Net Benefits

Mill

ion

s

Financial Benefits Cost and Benefit Summary

9

World-Class Companies Trust Mainstay

“Mainstay has been a valuable contributor to our sales and marketing efforts for nearly a decade.”

Scott LovettVice President of Enterprise Architectures – Americas, Cisco

Attie VandermerweVP Business Services(949) 331-8270attie@mainstaycompany.com