Business Review for Texas Tech University Health Sciences Center Reporting Period: October 2009 – January 2010.

Business Reviewfor Texas Tech University Health Sciences CenterReporting Period: October 2009 – January 2010

Attendees

• Texas Tech University Health Sciences Center

– Don Sarchet, Sr. Director of Purchasing– John Haynes, Assistant Director of Purchasing– Celeste Kulinski, Accounting Services

•Summus Industries – Michelle DoPorto, Account Manager

• Staples Business Advantage – Tiffany Robinson, Account Manager

Focus of your review

• Process– Review your current procurement process and its effectiveness for

total cost management.

• Opportunities– Discuss your corporate goals and determine the ways in which we

can help you reach them.

• Programs– Discuss new Staples initiatives and programs.

Business Review Agenda

• What’s New at Summus Industries• Program Metrics

Relevant and current performance tracking• Reporting snapshot

• Product usage

• Ordering activity

• Service levels

• Savings opportunities Review of additional opportunities to save

• Program InitiativesStaples initiatives relevant to your business

• Summary of Action Plans – Recommended next steps

What’s new at Summus Industries

What’s New at Summus

• Summus Has MovedNew corporate office is located at 245 Commerce Green Blvd., Suite 155, Sugar Land, TX 77478(281) 640-1765

• Expanded Summus accounting and internal customer service staff to accommodate growth in business

Program Metrics

Product UsageContract vs. Non-contract Item Use

OPPORTUNITY: Great job you all are currently maximizing your savings potential by purchasing effectively on your contract.

72.57% 65.00%

27.43%

35.00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% Contract Items % Non-Contract Items

Texas Tech HSC SBA Average

Product UsagePurchase Analysis

OBSERVATION: Purchases from Wholesalers accounted for 4.08% of Texas Tech HSC’s

non-Contract purchases.

72.57%

23.34%

4.08%

0.02%

0.00%

0% 10% 20% 30% 40% 50% 60% 70%

Contract

Miscellaneous

Wholesaler

Special

Digital Copy

Order Activity Ordering Methods

OPPORTUNITY: Texas Tech HSC places .04% of their orders via fax. Shifting orders from Fax orders to StaplesLink.com internet ordering would save your company time and money.

Order ActivityAverage Order Size

Average order size is $249.40 5.03% of total orders are at or below $50

OPPORTUNITY: Average processing costs on orders under $50 can range between $90-$200 for both Staples and Texas Tech HSC. The average order size has been identified as one of the key drivers in saving process costs for our customers.

Order Size

Dollars Spent

% of Dollars Spent

Number of Orders

% of Orders

Orders < $50 $4,488.64 0.67% 136 5.03%

$50.01 - $100 $54,120.27 8.02% 761 28.12%

$100.01 - $200 $109,926.21 16.29% 751 27.75%

$200.01 - $500 $219,724.37 32.56% 719 26.57%

$500.01 - $1,000 $176,892.13 26.21% 259 9.57%

Orders > $1000 $109,712.98 16.26% 80 2.96%

TOTAL $674,864.60 100.00% 2,706 100.00%

Order ActivityReturns

OPPORTUNITY: Average processing costs on returns can run between $14-$25 for both Staples and Texas Tech HSC. Work to reduce the percent of returns through process and product education.

% of Returns vs. Sales : 1.99%

25.07%

3.21%

29.45%

3.79%

2.04%

3.50%

4.96%

2.62%

25.36%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80%

Mispick

Customer Error

Damaged

Manf Defect

Duplicate

Dissatisfied

No Reason

Other

Return

Program Overview Reporting Snapshot

2008 vrs 2007 Oct09-Jan10 Oct08-Jan09

Total Purchases $674,864.60 $756,089.17Total Returns $13,210.82 $13,506.90Avg Order Size $249.40 $239.27# of Orders Under $50.00 136 582# of Orders Placed 2,706 3,160% Contract Products 72.57% 43.53%% Miscellaneous products 23.34% 46.84%% Wholesaler products 4.08% 3.84%% Specials 0.02% 5.76%% Digital Copy 0.00% 0.04%% Recycled Purch. 10.81% 11.72%% Diversity Purch. 2.42% 2.68%% Stock-Only Fill 0-24hrs. 85.60% 85.47%% Total Returns 1.99% 1.82%

Environmental Report

Total Paper Purchases 28320.12 lbs.

Total Post Consumer Recycled Content 6209.33 lbs.

Average Post Consumer Recycled Content 21.93%

Green house gas emission reduced (CO2) 6544.63 lbs.

Equivalent number of average US cars not driven per year 0.5943

Water saved 27165.82 gals.

Trees saved 74.51 trees

Wood resources saved 18627.99 lbs.

Total energy (BTUs) saved 52779305 BTUs

Energy equivalent to oil saved 377 gals.

Equivalent number of average US homes heated per year 1.3561

Energy equivalent to electricity saved 15028.28 kWh

Equivalent number of average US homes powered per year 1.3252

Environmental impact estimates were made using the Environmental Defense Paper Calculator and publicly available US. DOE data. For more information visit: www.papercalculator.org

Current Program Overview

• Accomplishments: – Successful order of SON Promotional Products

– Successful Annual Vendor Show in December 2009

Current Program Overview

• Opportunities: – Introduce Facilities Services Program

– Introduce Digital Copy/ Print Program

Cost Saving Analysis

Potential Savings for TTUHSC Summus Industries CNSRTM/NJPA

Area of Opportunity Potential savings

Move miscellaneous items to Contract with new pricing

$xxx,xxx.00

Modification of proprietary items $xxx,xxx.00

Recycled toner program $xxx,xxx.00

Transitioning Fax orders to StaplesLink.com (average number of orders/year x $.98)

$xxx,xxx.00

Increase Staples brand product percentage $xxx,xxx.00

Continue to increase number of orders over $50

$xxx,xxx.00

Total Potential Savings $xxx,xxx.00

Easy Ways to Save on StaplesLink.com

We're always looking for new ways to help our customers save money. And now, we've made it even easier with the enhanced features of our "Recommended Alternatives.“

When placing orders, certain products may have a lower-cost alternative. We’ll show you that another option is available. The choice is up to you.

• Benefits of “Recommended Alternatives”: Easy — Items with “Recommended Alternatives”

appear automatically while browsing. Cost effective — “Recommended Alternatives”

save money without sacrificing quality. Fast — Comparing products and adding the

“Recommended Alternative” to your order is simple. Flexible —The choice is always yours whether you want

the original product or the “Recommended Alternative.”

One Sourcefor all your office supply needs.

Staples Facility Solutions

• Staples offers competitive prices and superior convenience with a broad selection of:– Bathroom cleaners, facial tissues, folded paper towels and more– Janitorial carts, vacuums, push brooms, face and eye protection– Snacks, hot beverage mixes and

disposable dinnerware and cups– Recycling and waste receptacles– Time clocks, cards and badge

holder racks

Staples is the one source for the tech products you use everyday

• We sell 21st century office supplies such as:– Desktop Tech: mice, keyboards, monitors, printers– Mobile Products: headsets, flash drives, GPS, digital cameras– Security Products: shredders, laptop locks, privacy screens– Conference Room Necessities: webcams, projectors, phones

• Staples dedicated technology experts can:– Provide assessments and vendor neutral recommendations– Recommend standards programs to help reduce costs and save IT resources time– Negotiate great pricing by leveraging our relationships with leading vendors– Use our streamlined process for faster role out

Staples Technology Solutions

Staples Network Services by Thrive

Staples Network Services by Thrive offers outsourced IT support foremerging and mid-market companies in the Boston and Atlanta area.

• Our comprehensive array of IT services include:– Technology consulting– Disaster recovery planning– Remote support

• Our services can help to:– Create a network infrastructure that runs efficiently and seamlessly.

– Reduce the time employees spend on IT issues, so they can focus on their core responsibilities.

– Improve client technology decisions by leveraging proven best practices.

Staples Network Services by Thrive

• Thrive Online Backup is the efficient and safe way to back up important information on a computer.

• Staples delivers a premium online backup service at one of the most competitive price point in the industry.

• A copy of the data is stored in a secure, remote location for safekeeping and always retrievable – even in the event of a disaster.

Health & Wellness

Staples can help you find ways to keep your

employees healthy, productive and safe.• Pandemic Preparedness

Disposable latex gloves, flashlights, customized disasterand first aid kits, face masks, and batteries.

• Disinfecting ProductsHand sanitizers, disinfecting wipes and office cleaners, disinfecting air spray and antibacterial soap.

Digital Copy Services

Free up your valuable time and gain more control byconsolidating all your printing jobs at Staples. Get the quality, pricing and fast delivery you expect.

Staples Advantage does it all — Catalogs, Employee handbooks, Brochures, Forms, Marketing Materials, and more…

• Facilities dedicated to Staples Advantagecustomers feature:

– State-of-the-art equipment and fast turnarounds

– Order online anytime, anywhere

– Network of integrated closed-door production facilities

– Contract pricing and service levels

– Delivered to your door

Print Services on StaplesLink

Order all your copy and print products on the same site you order office supplies

Two main product offerings make it quick and easy to access all your print products on StaplesLink.com

• Online Copy and Print Center

• Custom Imprint Templates

Stapleslink.com is now your one source for all your office product needs

Print Services on StaplesLink

Online Copy and Print Center

Now order your copy and print projects online, anytime, anywhere.• Upload documents

• Configure your project

• View an online proof

Custom Imprint Templates

Provides quick and easy access to customizable product templates for stamps, business cards and more.• Upload your logo

• Add custom text

Staples Promotional Products

Promoting your brand just got easier.• One of the largest global manufacturers

and distributors of corporate branded merchandise

• Design services to get exactly what you want– Complete customization of style,

fabric color and decoration

• Quick turnaround on in-stock items• Flexibility to fulfill one-time special orders

Business Interiors by Staples

Business Interiors by Staples has the furniture products and services to fit your style and budget.

– Concept to completion. Business Interiors by Staples can help you at every step:

• Furniture needs analysis• Design consultation• Space planning• Project Management• Move & Asset Management• Installation services• Refurbishing, Refinishing and Reupholstering

– Access to the top manufacturers• We offer more than 300 premier brands of office

furniture, from chairs or desks to complete cubicle systems, we stock and service it all.

We also offer Furniture Standards programs to help you maintain consistency within your organization, leverage price savings, and ensure compliance across multiple sites.

Environmental Initiatives

• Staples offers more than 3,000 environmentally preferable products to help you meet your environmental procurement goals:– Paper: choose from multiple brands, and multiple grades– Supplies: remanufactured ink and toner– Technology: Energy Star certified office technology products– Furniture: cubicle systems made from recycled-product content

• Staples is pursuing earth-friendly innovations:– Biodegradable packing peanuts made from cornstarch– Paper made from sugarcane, file folders from recycled denim

“Green” Products

Now on StaplesLink.com – the EcoEasy Banner. Quickly find the most popular Green products included in your contract with the click of a mouse.

Sustainable Earth by Staples™

Easy on the planet. Sustainable Earth by Staples™.

• Our most eco-conscious line of Staples® brand products

• Uses only eco-conscious manufacturing processes, product components and/or packaging made from recycled materials

• Every product must meet our brand’s high environmental standards

• Quality guaranteed

Green Seal-certified Cleaners

Remanufactured Toner Cartridges

Sustainable Earth by Staples™Ready to Use Cleaners

• There are 4 SKUs being introduced in the Sustainable Earth family.

– 807727: 32 oz Multi-Purpose Cleaner– 807721: 1 Gallon Refill Multi-Purpose Cleaner– 807728: 32 oz. Glass Cleaner– 807729: 1 Gallon Refill Glass Cleaner

Developed with natural ingredients and no harsh chemicals Green Seal Certified and EPA Designed for the Environment

recognized

• Multi-Purpose Cleaner– Is the one cleaner that does it all– Superior cleaning on floors, walls, countertops, desk & cabinets– Great for cleaning glass & porcelain

• Glass Cleaner– Makes cleaning windows and hard surfaces quick and easy– Alcohol, ammonia and phosphate free

Sustainable Earth by Staples™

• Announcing our exclusive new line of remanufactured toner – Sustainable Earth by Staples™

• Every Sustainable Earth toner meets high environmental standards

• This new brand is a repackaging of the Dataproducts Signature Select remanufactured toner

• Beginning this summer, you may receive toner in either Dataproducts Signature Select or Sustainable Earth brand boxes

• During the transition, continue to use the same item number to order your toner

Remanufactured TonerGreat Quality & Savings

Quality printing• Engineered to national brand specifications• Certified to ISO 9001:2000 standards• High quality with no spotting, smudging or fading• Backed by one-year manufacturer’s warranty• Third-party quality tested

Cost savings • Affordable option over national brands

Environmentally responsible printing solution• Recycled toner cartridges help protect the environment by

keeping reusable, non-biodegradable materials out of landfills

• Eco-preferable ISO 14001 certified manufacturing process• Packaging made from recycled materials• Cartridge recycling program

Catalogs

Facilities and Breakroom Catalog

• This catalog features all the products to keep your facility running—from chemicals to breakrooms—all at a great price!– Helpful tools that provide information

and answers to common facility concerns such as:

• Carpet Spotting• Restroom Cleaning

• Net Priced, valid until 4/1/2010• Order online with SKU 788416• 400 pages and more than 4,500

items

Staples Furniture Catalog

Thinking about buying furniture?

Staples Furniture Catalog is now available!From a new chair to a whole new office, lookno further than Staples.

– Wide range of products in an array of styles and colors.

• 300+ pages displaying 5000+ products• Dedicated Furniture Solutions associates

available to give expert advice & planning.

– Design and installation services available.

– Staples No. 755167

– Valid until March 2010

View this catalog online! Click Here

Staples “Green Guide”

• Staples’ Green Guide offers an assortment of hundreds of eco-friendly products in categories such as:– Core office supplies

– Cleaning and Breakroom

– Paper

– Toner

– Furniture

• Bright ideas and tips togreen your office

• Glossary of commonenvironmental terms

View our online“Green” CatalogCLICK HERE

The Full Line Catalog

The 2010 Full Line Catalog features everything you need for your business – from basic office supplies and facilities to technology and furniture.

– Order from StaplesLink.com, Staples No. 824021

– 8,800 unique SKUs– 1,800+ Staples brand products– 1,700+ new products– 2,000+ recycled products – ~400 diversity supplier products– Printed on 30% post-consumer recycled

FSC-certified paper

And online version will be available

Online Catalogs on StaplesAdvantageCatalogs.com

• What are online catalogs?– Online, interactive versions of a

variety of our product catalogs – simply click on a catalog, and begin to shop

• Benefits of online catalogs– Provides instant access to our

catalogs, no login required– “Click to buy” feature adds products

to your StaplesLink.com shopping lists directly from the online catalog

– An environmentally friendly solution – a great way to help our customers decrease their impact on the environment

Customer Service &Satisfaction

Staples Advantage Differentiators

Staples Advantage makes it easy for business customers of all sizes around the globe to buyproducts, services and solutions for all of their business needs.

Global Reach: We are the world’s largest office supplier, serving businesses in 27 countries on five continents.

Financial Strength: Staples’ best-in-class financial position allows us to continually invest in our delivery businesses.

Account Management: Our unique account management model provides one point of contact across all lines of our business.

Operational Excellence: Our state-of-the-art distribution network provides 96% of the U.S. population with next-day service.

eProcurement: Our industry-leading expertise includes proprietary Web sites and third-party platform integration with a 30-day customer implementation standard.

Integrated Solutions and Supplier Consolidation: “One Source” for all of your business needs including technology products and services, data supplies, print and document management, furniture, facilities and promotional products.

Customer Service: Customer satisfaction is our highest priority. Our call centers’ excellence has been recognized by JD Power and Associates every year since 2004.

Retail Store Network: Our 1500+ U.S. retail stores, the most in the industry, provide same-day purchases and emergency services at preferred-customer pricing.

Staples Brand Products: Staples brand offers customers savings opportunities with more than 1600 high-quality, innovative products.

Staples Soul: Staples recognizes the close connection between our success and our efforts in the areas of environmental sustainability, ethics, diversity and community.

Why Staples Advantage?

Staples offers distinct advantages that consistently deliver more value to ’s business.

– Account Management: Count on a dedicated, local Account Manager to provide you with a single point of contact and proactive support for your strategic business objectives.

– E-Procurement Expertise: Streamline ordering and enhance compliance via our proprietary B2B Web site and expertise at third-party platform integrations.

– One Source Solution: Running your organization is “EASY” when you purchase your office supplies, technology, furniture, facility, print and promotional product needs from one trusted and cost-effective source.

– Delivery Excellence: Experience accurate and FREE next-business-day delivery through our best-in-class fulfillment network.

– Customer Service: Keeping your end users satisfied and productive is our highest priority. They’ll enjoy expert and responsive service through our call center network, recognized by J.D. Power and Associates for 6 consecutive years (2004 – 2009).

Distinct Advantages (Continued)

– Retail Store Network: You’ll have a convenient same-day purchasing solution through our 1,500 U.S. retail stores.

– Staples® brand Products: Achieve exceptional savings through our more than 2,000 high-quality and exclusive Staples® brand products.

– Financial Strength: Benefit from the strength and stability of the industry’s financial leader. By constantly investing and reinvesting in our business, our customers experience the very best in technology and service.

– Global Reach: With coverage across 37 countries and 5 continents, you can expect consistent value and quality for all your locations worldwide.

– Staples Soul: We share and complement ’s core values. Our environmental and diversity supplier solutions help you to meet and/or exceed your corporate responsibility goals and initiatives.

– Our People: From our account managers and Customer Service Reps to our delivery drivers and warehouse associates, we hire only the best and hold them responsible for delivering incomparable results for our customers.

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Next Steps

Summary of Action Plans

Subject Action Plan Timeline

We are committed to a successful partnership with

Texas Tech Health Sciences Center

Thank you