XEROX

Customer Overview

Xerox is a 105 year old, $22 Billion dollar company that provides document technology products and services. With 136,000 employees and a spend of $781 million dollars on Research and Development with 9,400 active patents Xerox has successfully moved beyond it roots and is well positioned to be a survivor in the world of e-copies. Xerox is committed to diversity, green sustainability and product innovation throughout all levels of the organization. With our current Contract Logistics relationship we are well positioned to leverage the current “goodwill” into additional “Product Lifecycle Logistics opportunities

Strategic Importance

With our strong Contract Logistics foundation and this current Parts Return opportunity, there are many potential services that can bring after-the-sales support revenue over $10 million, forward parts fulfillment, sub assembly test & repair, in addition to product returns, test, repair & refurbishing.

Scope of Service – Parts Reverse Logistics

Annual Unit Volume – initial estimateParts Reverse Logistics year one 1,300,000 units (350,000 back log)Parts Reverse Logistics year two 1,000,000 units

RevenueParts Reverse Logistics, year one $2.5 million, year two $2.0 million, currently a 350K unit back log.

XEROX

• Cost containment in a variable non-union environment• Robust IT System that can manage all work stream processes Reverse, Inventory,

sort and ship functions including enhanced visibility capabilities.• Ability to meet the volume requirements that currently bottle neck their existing

internal operations through improved process, systems and teamwork.• Single source provider for all value added services, – platform for growth, All in one”

capability for reverse, forward parts fulfillment , sub assembly T&R and whole unit RC and T&R services (this was an outsourced function up until 2009)

Win Strategy/ Game Changer

This solution seems to mirror the current Dell Parts Reverse Logistics operation in Lockbourne………………with the same up side potential, for Forward parts fulfillment, & sub assembly refurbishing and whole unit Returns, Refurbishing and Re-deployment .

Assumptions & Gaps

Centralized location, probably Columbus for return processing and platform for future growth.

Receiving on an “open RA format” from the District parts centers , own FSC in Cincinnati and internationally. – receiving routine under development

Sort, Stage and ship to Webster, Low velocity items maybe warehoused for future shipping.

Solution

Competitor Information

Key Points: Currently a very satisfied Genco ATC customer (GCL) with Sr. Management

support and visibility (Peter O’Dell) Strong capability vs. need fit, R-Log visibility, strong process capability in

Reverse and the ability to be a AIO solution, forward and Test Repair & Refurb Concern that internal IT system is unable to manage current needs primarily

work stream visibility and process control, current system is Asteia A Genco ATC solution will improve overall TAT, lower transportation and parts

carrying costs, and improved work stream visibility – much improved ROI. Current internal operation is unionized and a concern exist as to the financial

implications of building out the needed infrastructure , personnel & systems.

Competitive Position

Initial meeting and basic needs / capability assessment, 13 May 2011 …………..02 Define data requirements and set follow up meeting 13 May2 011 ………..…….02

Conduct follow up meeting to review data, process flows and determine gaps in creating a costed solution 15 August, 2011………………………………………. 03

Present customer with Costed Solution 15 September 2011………………………..04

Opportunity Time Line