Banner Business Supplies Ltd Presentation to The West Midlands Centre of Excellence 12th October 2007

1. Banner Business Supplies LtdPresentation toThe West Midlands Centre of Excellence12th October 2007

2. Banner Attendees Dominic Kennedy - Manager, Field Sales James Rippin - Regional Account Manager

3. Agenda • Company Overview • Customers • OGC/DWP Framework • Reflective Core List and Development • Contract Management • OPTIMISA • Best Value Contracts

4. BBSL Company Overview • Leading independent Office Services Company in the UK • Flotation in June 2004 enhanced stability, credibility and transparency • Founding member of EOSA - European Office Supplies Alliance • “Everything Anytime” for the office... • Office Supplies • Print • Furniture • Office Technology • Business Services

5. BBSL Company Overview • 2006 Turnover £165.9m • ISO14001 environmental accreditation • BSI ISO 9001 quality accreditation • 2007 Boss Federation Environment Certificate • Industry Award for Innovation (sponsored by 3M) • ECA Award for Excellence in eCommerce • Market Leader: • Account Management • Environmental Initiatives • eCommerce • Management Information

6. Public Sector Customers • 200 years Public Sector experience • High Percentage Turnover in Public Sector contracts • Focus on procurement efficiencies - Gershon Report - Best Value Procurement - Environment • Experience with over 70 Local Government Authority Contract Customers including • Borough of Telford & Wrekin • Staffordshire County Council • Redditch Borough Council • Yorkshire Metropolitan Stationery Partnership Framework • Manchester City Council Framework • Essex County Council Framework • Newcastle City Council

7. Public Sector Customers Key Public Sector contracts include: • OGC Buying Solutions Framework • DWP • HMRC Framework • NHS Supplies Framework • HM Prison Service • House of Commons • Metropolitan Police Force • North West Police Forces

8. Other Customers

9. OGC/DWP Framework

10. OGC/DWP Framework • Framework contract let by DWP/OGCbuying.solutions for Office Stationery and Paper • Contract until June 2008 +1 extension • Extensive core list 600+ lines • Flexible Core list • Excellent Discount Structure • Banner Brand 60% • Proprietary Brands 45% • Government Paper of choice EP4 • Available to all Public Sector Bodies both national and regional

11. OGC Reflective Core List • Ongoing monthly review programme • Detailed Customer Specific MI • Customer Agreed KPI’s • Core/Non-Core split Review • Product Optimisation • Continual Framework Development • Innovation Savings Tracker

12. Core List Development • Continuous efficiency savings, eProcurement, P2P, evolving contract list matching your requirements • Best Value Product • Best Value Environmental • Demand Challenge • Auto Substitution / Own Brand Substitution • Optimisa • Optimisation

13. OPTIMISA™ - ABC • The OPTIMISA™ Activity Based Costing model is an award winning cost reduction solution • The objective is to reduce the total cost of your office supplies, whilst maintaining a profitable contract for BBSL • The ABC model forms the basis of the BBSL cost reduction strategy and provides tangible evidence of our cost saving impact

14. OPTIMISA™ - Information • The OPTIMISA™ Information System is designed to be installed on site, and enables you to identify: • low value orders; • high value order lines; • non -core purchases; • how successful our cost savings initiatives really are. • It also provides a wide range of other reports and an easy-to-use graphical interface

15. Green Optimisa • Measures the environmental impact of our service to individual Local Government Authorities • Identifies opportunities to reduce: • Fuel consumption • CO2 emissions • Total volumes of paper and packaging • Delivers efficiency savings and improved environmental performance • “Win, win, win”

16. OGC Contract Management • Our objective is to develop a long-term business relationship with our customers • Dedicated Account Management works closely with key contacts within the West Midlands and Local Government • Supported by: • Named personnel in all operational functions • Flat Management Structure. • Management Information Reporting • Individual Regular Business Reviews

17. OGC Management Reporting • Industry leader in flexible reporting solutions • Specific requirements discussed and agreed during implementation • One central business system for end-to-end process (no risk of interface-related issues) • Hundreds of standard reports available • Powerful graphical query tools make it easy to customise them to meet your exact requirements • Customer-specific systems available, installed on your own PC

18. Business Reviews • Initial weekly meetings, to ensure a smooth implementation and to agree joint objectives • Minuted Formal Reviews at pre-agreed intervals: • Monthly meetings, attended by the Account Manager and functional specialists as necessary • Quarterly attendance by the Manager Field Sales. • Agenda focused on delivering continuous improvement: • performance against the SLA • identifying and overcoming maverick spend • review of process improvement initiatives • review of cost-saving opportunities • review of new product/service offerings.

19. Customer Service • Dedicated Local Government Customer Service Team overseen by Team Leader • Full contract briefing during Implementation • Knowledge and understanding of framework requirements • Available Monday to Friday between 8am and 6pm • Dedicated free phone and fax numbers • Query management tool (EMS) • Empowered to make decisions, in order to resolve your enquiries quickly and effectively

20. Best Value Contracts

21. Total Cost for Procurement • Which Pen is Best Value1 pence pen2 pence pen5 pence penA product can be made for a cost specified • Is saving 10 pence on a ream of paper really saving 10 pence?Considering the process costs how much paperwould be needed to cover the cost?

22. Total Cost for Procurement • Product Cost Overall • Brand / Own Brand • Process Cost • Purchase Cards • Low Value Orders • Volume/Value • Disruption Costs • Effective Core Management

23. Own brand • Offers savings against proprietary brands without compromising on quality or reliability • Named Brand • Ethical suppliers • Current Banner Products • Quality Brand equivalent to Premium Brands • Expanding Range • Samples always available

24. eProcurement -online2office • “Best Value” highlights the most cost-effective products within a particular area of the range • Red core list products • On-site training to ensure maximum end user “buy in” to the contract • User guides • Configurable authorisation chains • On-line Management Information • Dedicated In-house Support Team

25. Low Value Orders • Is saving a pound really saving a pound • Ordering Costs you money • Between £20 and £65 per order • LVO can impact process/efficiency savings • Impact on core list products • Impact on savings • Impact on the environment • Purchase Cards Offer Savings

26. Effective Core Management • Use MI Optimisa • Control Non - Contract spend • Discuss Own Brands and Sample • Increase order volumes • Consolidate • Optimisation

27. Thank you Question & Answer dominic.kennedy@bbslimited.co.uk07801180648 james.rippin@bbslimited.co.uk 07753774628