Group o overview 6 24 14

Group O Overview

proprietary and confidential | 2

• Founded 1974• 1,500+ employees• $600+ million annual revenue• One of the top five Latino-owned

businesses in the U.S. (USHCC)• National Minority Supplier of the Year

and Corporate Plus Member (NMSDC)• Quality Certifications

─ ISO 9001:2008─ TL 9000─ SSAE 16 (SAS 70) Type II compliant─ HIPAA and PCI compliant

• Primarily serve Fortune 100 clients in retail, CPG, manufacturing, telecommunications and pharmaceutical industries

Group O Overview

Group O is a business process

outsourcing provider that helps

world-class organizations

o p ti m i z e

their operations through strategic

marketing, supply chain, packaging

and business analytic solutions


• Established relationships with more than 7,000 suppliers worldwide─ Sources and purchases product from more than 30 countries

• Manages over $2.6 billion in customer assets

• Owns/manages/operates from warehousing and manufacturing facilities covering more than 6 million square feet – greater than 120 U.S. football fields

• Established credit lines with strategic suppliers of $850 million

• Processes over 120,000 POs annually

• Handles 5+ million page views on web portals created and hosted by Group O

• Delivers finished products to 5 continents

• Distributes a mobile handset, on average, every 6 seconds, 365 days a year

Group O Snapshot


Group O Expertise

Marketing Supply Chain Packaging Business Analytics

Industry-leading marketing services to help business acquire and retain customers through efficient fulfillment, promotion management and print optimization solutions.

Six Sigma, world-class supply chain expertise for industries requiring high-touch, high-velocity support anywhere in the world they do business.

Containment materials, equipment and engineering services to analyze operations and lower your total cost of ownership.

Recruiting and staffing with a focus on big data analytics geared to identify new opportunities and uncover information that leads to better business decisions.


Customers and Industries Served

FOOD & BEVERAGE PHARMACEUTICALS PUBLIC SECTOR

RETAIL & DISTRIBUTION FINANCIAL SERVICES

MANUFACTURING

TELECOMMUNICATIONS & TECHNOLOGY

CONSUMER PACKAGED GOODS

http://goodlogo.com/vote/johnson-controls-logo-3182





Coast to Coast Presence

Legend

SALES

MANAGED SERVICES

WAREHOUSE

Richard Resch, National Equipment ManagerMark Bohman, VP National AccountsMichael Gray, National Account Manager

SERVICE TECHS

Robert Cosaert

Contact Richard Resch

Dale Wheeler

Scott Thatcher & Matt Ontiveros

Michael Cobane, Fran Wilson, Carl Schumaker and Drew Bedan

Howard Pattee

Michael Gray

Tim Miers

Jeff Kautz

Otto Becker

Jake McGeary


The Group O Advantage

Deep experience with providing forward and reverse logistics for retail industry

Deep experience and ability to provide turnkey services─ including inventory management, online ordering, managed services,

print management, reporting, etc. – throughout our client’s ecosystem

High quality, predictable, reliable performance week after week

Proactive partnership to drive ongoing improvement

A collaborative partner with real-time feedback to help achieve goals


Marketing

Group O provides a continuum of tailored, scalable business process outsourcing services

O-Sourcing™ Marketing Solutions

TRANSACTIONALQuickly deployable services that allow our customers to focus on their core business

TRANSITIONALIntermediate, time-fixed solutions that drive changes in process, structure, technology or resources

TRANSFORMATIVELong-term improvements that reduce cost and create value, while optimizing the business process / supply chain

Rewards / LoyaltyFulfillment

Prepaid Reward Cards

Creative Services

Customer Care / Help Desk Centers

Customer Surveys / Analysis

Web Development / Hosting

Direct Mail / Print Management

Rewards / Loyalty Campaign Management

Mobile Marketing Solutions

O2® Collaborative Marketing Optimization

Group O marketing solutions help our clients acquire more clients, improve loyalty and reduce operational costs

Learn more at groupo.com/marketing

http://www.groupo.com/marketing


Supply Chain


O-Sourcing™ Supply Chain Solutions




Sourcing/Purchasing Management

Global Sourcing

Supplier Management

Logistics/Inventory Management

Forward and Reverse Logistics

Inventory Management

Integrated Distribution Solutions

Fulfillment and Production

Value Added Services

Integrated Retail Solutions

Group O provides Six Sigma, world-class supply chain expertise that helps our clients improve logistical velocity and efficiency while reducing costs

Learn more at groupo.com/supply-chain-solutions

http://www.groupo.com/supply-chain-solutions


Business Analytics


O-Sourcing™ Business Analytics Solutions




Recruitment Process Outsourcing/Staffing

Big Data/Technology Assessment

Big Data Knowledge

Web Creation/Maintenance

Systems Implementation

Business Intelligence

Customer/Marketing Analytics

Operations Analytics

Sales/Customer Service Analytics

Application Modernization and Optimization

Custom Software

Group O helps our clients analyze structured and unstructured data in order to improve their business results

Learn more at groupo.com/business-analytics

http://www.groupo.com/business-analytics


Packaging


O-Sourcing™ Packaging Solutions




Materials and Consumables

Packaging Engineering

Packaging Operations Packaging Managed Services

SMART Audit®

Group O helps our clients achieve better containment results while reducing total cost of ownership

Learn more at groupo.com/packaging-solutions

http://www.groupo.com/packaging-solutions


Packaging Solutions

SMART Audit® Applications• Periodically gather data and report on each packaging system• Define and configure qualification and monitoring processes

Introducing New Products• Bring proven innovative packaging technology to our clients• Manage the qualification process

Resolving Issues• Quickly assess and meet immediate needs related to price, quality, delivery and service• Complete the corrective action process to find and fix root cause

Improving Business Process• Standardize and consolidate SKUs• Analyze ordering systems to find opportunities to automate• Design logistics systems that meet delivery needs• Vendor Consolidation


Service Program & Benefits

Group O’s nationwide network of dedicated technical service representatives are manufacturer-trained to quickly assess and meet the immediate needs of our clients

We are able to quickly respond to emergencies with next-day, nationwide service and in-stock part delivery

Group O offers exceptional service programs – including preventative maintenance, retrofit programs and flexible order processing

• Preventative maintenance programs include: machine specific checklist of common wear items, quotes on recommended parts/service, follow-up testing and audits/service recommendations

• Retrofit programs offer innovative technologies to cost effectively improve equipment performance. Group O will coordinate the ordering and installation of retrofit kits

• Flexible order processing allows orders to be placed by phone, fax or EDI


Vendor Consolidation

By leveraging our scale and strategic supplier relationships, Group O can:• Reduce costs by standardizing products across enterprise, where applicable• Create redundancy through standardization• Qualify back-up suppliers for emergency situations• Bundle products to reduce:

─ Receiving events─ Labor costs─ Carbon footprint─ POs─ Invoices─ Points of contact

• Increase our client’s ability to leverage suppliers• Provide consistent support/service• Improve competitive pricing through volume increase

through consolidation

Reduce Cost

Bundle Products

Increase Ability to Leverage Suppliers

Improve Pricing

Provide Support

Qualify Back Up Suppliers


Product Offerings

Stretch Film:• AEP, Berry Plastics, Intertape,• Pinnacle, Sigma, Stretchtape

Shrink Film (PVC & Polyolefin):• Cryovac, Exopack, Intertape, • Reynolds, Syfan

Shrink Bundling Film (Clear):• AEP, All American Poly, Berry Plastics,

Exopack, FlexSol

Plastic & Steel Strapping:• ACME, Dynaric, Poly Chem, Samuel,

StraPack

Pressure Sensitive Tapes:• Intertape, Shurtape, STA

Gummed Tapes:• Intertape

Edge Protection:• ITW Angleboard, Laminations

Slip Sheets:• Diversi-Plast, International Paper

Adhesives• Adhesive Systems Inc

Cold Seal Products:• Sealed Air, Surface Guard

Corrosion Prevention: • Buffers, Northern Technologies, Armor

Protective Packaging, Daubert Cromwell

Skin, Blister & Clamshell:• Card Pack, Flex-O-Glass, • Transparent Container

PVC Shrink Bands:• Seal-it, Ultrapak

Corrugated: • RockTenn, Tharco, Georgia Pacific,

International Paper

Labels:• LPS, RR Donnelley, WS Packaging

Glue:• Adhesive Technologies, Chicago Glue

Polyethylene Bags & Film:• AEP, All American Poly, Automated

Packaging Systems, Berry Plastics, FlexSol, Polyfirst, Polymer Packaging

Absorbents:• New Pig Products

Can Liners:• Berry Plastics, Pitt Plastics,

Colonial Bag Corporation

Clean In Process (CIP):• AFCO (Consumables & Service

Provider)

Jan-San:• Georgia Pacific, Earth Friendly

Products, Rubbermaid

MRO & Safety Supplies:• ORS Nasco

Cushioning Products:• Automated Packaging Systems, FP

International, IVEX, Poly-Air, Pregis, Sealed Air

Air Filters:• American Air Filter

Returnable Dunnage:• Monoflo• Nashville Wire• Construm


Equipment and Parts Offerings

Stretch Wrapping:• Arpac, Highlight, Lantech, Orion, Wulftec

Shrink Wrapping:• Arpac, Eastey Enterprises, Heat Seal, Hannan Products

Corp, Intertape, Lantech, PAC Machinery Group, Poly Pack, Traco Manufacturing Company, Clamco

Bagging Systems:• Advanced Poly Packaging, Automated Packaging Systems,

Emplexx, Rennco, PAC Machinery Group

Carton Erecting:• Eagle Custom Packaging, Econoseal, Lantech, Loveshaw,

ARPAC

Carton Sealing:• Better Packages, Eagle Custom Packaging, Intertape,

Lantech, Loveshaw, Best Pack

Cold Seal:• Systems Packaging

Conveying:• Flexible Material, HCM Systems, Lantech, Omni

Metalcraft Corp

Inkjet Printing:• Markem, Loveshaw

Labeling Equipment:• Blue Star, Chicago Coding Systems, Kiwi Coders,

Loveshaw, Markem, Nifty, Take A Label, WS Packaging

Strapping Systems:• ACME, Advanced Packaging System, Dynaric, Felins

Usa Inc, MIP, Polychem, Samuel, Strapack

Void Fill Equipment:• Automated Packaging Systems, FP International,

Polyair, Sealed Air


SMART Audit®

• A proven approach to optimizing stretch-film material usage

• Delivers cost savings and reduces carbon footprint by dramatically reducing suppliers, freight costs, excess inventory, inefficient ordering and continuity of materials

Benefits include:• Solves containment issues• Reduces failure rates• Improved material compliance

Pre-Audit Survey Audit Analyze Optimize Maintain

Initial step collects stretch film and equipment data

Comprehensive stretch application audit conducted on each line to understand current use

Detailed forensic analysis including SMART Audit benchmarks and go-forward prescriptions completed

Group O calibrates equipment, crafts operating protocol changes, and recommends any material changes and training that may be required

Group O manages the periodic auditing of each application and helps optimize performance

• Improves loads• Improves safety

• Delivers significant cost savings• Reduces carbon footprint• Real-time reporting


SMART Audit® Program Value Proposition

Through film analysis, machine performance enhancements, and down gauging, Group O provides sustainable, measurable, cost saving solutions for your stretch film applications. Our solution will:

• Deliver unit cost savings

• Optimize load wrapping cost through film reduction

• Focus on load containment to reduce shipment failures

• Provide continuity of materials across your plant operations, leveraging your spend

• Reduce suppliers and excess inventory

• Minimize unscheduled wrapping downtime with identification of machine maintenance needs

• Reduce service time while increasing in-plant safety

• Reduce carbon footprint

• Provide real time reports that monitor usage, cost reduction and spending across the enterprise


Lowest Unit Cost Effectively Shipped

It takes all THREE!Down Gauge Stretch Film

Increase Wrapper Pre-Stretch

Maintain Equipment At Optimum Pre-Stretch &

Containment Level

Proper Gear Ratio for the type of film

used

Right film for application Preventative

Maintenance is key


SMART Audit® Results

Current Option 1Item Number AMP22070 AMP52057

Type CAST CASTThickness 0.70 0.57

Width 20.00 20.00Length 6,500 7,500

Net Roll Weight 36.40 34.20Price Per Pound $0.87 $0.94

Price Per Oz $0.0545 $0.0586Roll Price $31.76 $32.07

Price Per Foot $0.0049 $.0043Top Wraps 2 2

Bottom Wraps 2 2Total Wraps 8 8

Overlap 2 6Overwrap T/B 2.00, 1.00 2.00, 2.00

Cut & Width 3.7 2.42On Pallet Prestretch 180.91% 250%Prestretch Slippage 10%

Force to Load T/M/B 20.00, 13.00, 14.00


SMART Audit® Recommendations

Current Option 1Annual Cost $18,361 $12,896

Annual Savings $5,465

Unit Cost Per Load $0.202 $0.142

Pallets wrapped/roll 157.41 226.31

Film Use Change -35%


SMART Audit® Results

• Sample results for a Group O food/beverage industry client:

• Environmental Impact:

Dollars PoundsYear 1 (pre-audit) $4,399,622 4,018,955

Year 2 (post-audit) $3,969,210 3,795,704

Total $430,412 223,251

% Decrease 9.8% 5.6%

Resin Savings Barrels of Oil Saved Co2 Emissions Reduced Cars not Driven223,251 lbs 364 156 metric tons 34

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Thank You!JORGE [email protected] 656 132 4412

mailto:[email protected]

mailto:[email protected]