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Tim Beauchamp – SVP Operations & Distribution. Corporate Express US Analyst Meeting Denver – 12-13 September 2007. “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
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Tim Beauchamp– SVP Operations & Distribution Corporate Express US Analyst Meeting Denver – 12-13 September 2007
“Safe Harbour” Statementunder 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.
Areas we will cover today: • Customer Care • Supply Chain Infrastructure and Process • Warehouse • Delivery • Replenishment Purchasing
Customer Care • Migration from decentralized to centralized model • Timeline • People • Technology • Processes
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 supportFurniture and Facilities • Implemented Product Training Program
Key Distribution Technologies Proof-of-Delivery Pick-to-Cart RoadNet Pick-to-Voice
Supply Chain Infrastructure • Distribution Center Network Changes • Q406 ----- Gulf Coast Houston • Q406 ----- Portland & Seattle Auburn, Washington • Q107 ----- New Michigan • Q207 ----- New Georgia • Q307 ----- Tampa & Miami Tampa • Q307 ----- Milwaukee & Chicago Milwaukee • Distribution Center Network Statistics • 27 Sites to 23 Sites
Replenishment Purchasing • Inventory/Working Capital • Increased in FY07 • New Building Transitions • New Off-shore Sourced Private Label Brand Products • Focused effort Q407 and early FY08 to reduce inventory levels • Reduce inventory builds • Adjust safety stocks in new consolidated Distribution Centers • Adjust Private Label inventory levels • Coordinate efforts with Merchandising to funnel • Customer demand
Thank you. Productivity in your hands.