Transcript Tim Beauchamp – SVP Operations & Distribution 1

Tim Beauchamp
– SVP Operations & Distribution
Corporate Express US Analyst Meeting Denver – 12-13 September 2007
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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“Safe Harbour” Statement
under the Private Securities Litigation Reform Act of 1995
Statements included in this press release, which are not historical facts are forward-looking
statements made pursuant to the safe harbour provisions of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934.
Such forward-looking statements are made based upon management’s expectations and
beliefs concerning future events impacting Corporate Express and therefore involve a
number of uncertainties and risks, including, but not limited to industry conditions,
changes in product supply, pricing and customer demand, competition, risks in integrating
new businesses, currency fluctuations, and the other risks described from time to time in the
Company’s filings with the US Securities and Exchange Commission, including the
Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission
on March 9, 2007. As a result, the actual results of operations or financial conditions of the
Company could differ materially from those expressed or implied in such forward-looking
statements. Shareholders and other readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they are made.
The Company undertakes no obligation to update publicly or revise any forward-looking
statements.
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Areas we will cover today:
• Customer Care
• Supply Chain Infrastructure and Process
– Warehouse
– Delivery
• Replenishment Purchasing
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Customer Care
• Migration from decentralized to centralized model
–
Timeline
–
People
–
Technology
–
Processes
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Customer Care Today
• Reorganized by Market
• Back-up sites online in North Carolina & California
• Implemented detailed Quality Monitoring Process
– Customer Survey improved from 82% (excellent or very good)
in January to 89% in August
• Implemented Special Order Process
• Implemented Tier Two specialty groups to support
Furniture and Facilities
• Implemented Product Training Program
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Key Distribution Technologies
Proof-ofDelivery
Pick-to-Voice
Pick-to-Cart
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
RoadNet
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Supply Chain Infrastructure
• Distribution Center Network Changes
–
–
–
–
–
–
Q406
Q406
Q107
Q207
Q307
Q307
-------------------------
Gulf Coast
Portland & Seattle
New Michigan
New Georgia
Tampa & Miami
Milwaukee & Chicago
Houston
Auburn, Washington
Tampa
Milwaukee
• Distribution Center Network Statistics
– 27 Sites to 23 Sites
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Replenishment Purchasing
• Inventory/Working Capital
– Increased in FY07


–
Focused effort Q407 and early FY08 to reduce inventory levels



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New Building Transitions
New Off-shore Sourced Private Label Brand Products
Reduce inventory builds
Adjust safety stocks in new consolidated Distribution Centers
Adjust Private Label inventory levels
Coordinate efforts with Merchandising to funnel

Customer demand
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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Thank you.
Productivity in your hands.
CXP Analyst and Investor Meeting Denver – 12-13 September 2007
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