1. Backend Fulfillment / Logistics March 5, 2003 What is backend fulfillment vs. logistics? Why outsource logistics? Client, campaign, & program examples

2. Webster’s Definition of Fulfillment ful  fill-ment n. 2a: to put into effect b: to bring to an end 3a: to convert into reality Industry Definition of Fulfillment To pick, pack and ultimately ship or mail materials or products for a customer to an end recipient The Basis

3. The eVolution Webster’s Definition of Logistics lo-gis-tics n. 1: the aspect of military science dealing with the procurement, maintenance and transportation of military materials 2: the handling of the details of an operation A Logistician's Definition of Integrated Direct Marketing Logistics Facilitating and managing one or more in-house or third-party operational inputs to ultimately process, manage, facility, and report multiple outputs. Translation: Take away a headache, be invisible to the end recipient and make our customer look good

4. Types of Services Most Integrated Logistics Facility will Support: Webstore Development, Merchant Services & Hosting Order Processing Systems & Online Reporting Lead & Database Management Procurement: CD, CDR & DVD Replication/Duplication Printing Shipping Materials Product Manufacturing, Kitting & Hand-Assembly Distribution & Shipping Warehouse Services & Inventory Management Fulfillment: Literature & Marketing Materials E-Commerce, Employee Stores & Product Project, Promotions, & Launches Direct Mail Rebates & SPIFF

5. Why outsource? Variable Costs vs. Fix Cost Reduced Cost by Shared Volume Control Extended Resources Doesn’t want to develop Expertise Presentation Startup Cost

6. Why outsource?Variable Costs vs. Fix Cost Outside Sales Call Center Web Oracle Database FTP 11 Batch-Files a Day Inventory Management CD Replication Material Procurement Project Management Online ReportingCo-Op’s Operating System Product Fulfillment Sales Collateral Bill of Material Management Product Assembly

7. Why outsource? eCommerce Site Real time operations Warehousing & Inventory Management Customer Service Product Reorders Merchant Management Online Reporting Co-Op’s Operating System Product Fulfillment Reduced Cost by Shared Volume $ Merchant Account Processing RMA Presentation

8. Why outsource?Control Outside Sales Inside Sales Intranet Warehousing & Inventory Management Online Reporting Usage Report Co-Op’s Operating System Trade show Fulfillment Personalize Letters Kitting of Sale Materials Password/UserID controls the what the user sees, the amount they can order and how much they are charges Sales Collateral Other Distributors

9. Why outsource? Warehousing & Inventory Management Online Reporting Co-Op’s Operating System Product Fulfillment Palletize Product International Documentation Extended Resources Request entered directly into operation system through Co-Operations Extranet Kitting of Large Materials

10. Why outsource? Outside Sales Call Center Web Oracle Database Based on UserID visitor transactions are reported and tracked to ultimate sale Inventory Management CD Replication Material Procurement Project Management Online ReportingCo-Op’s Operating System Product Fulfillment Sales Collateral Bill of Material Management Product Assembly Doesn’t want to develop Expertise Startup Cost CRM Data Management & Reporting

11. Lora Durst Director of Marketing & Sales Co-Operations, Inc. 16698 SW 72 nd Avenue Portland, OR 97224 503.620.7967 x312 ldurst@co-operations.com