Working together to find extra profit

Richard Ungaro - Director407-276-5312

• Current economic conditions are presenting challenges for all companies in all industries

• Expense reduction is easier than increasing sales

• Saving One-Dollar of expense has the same impact as increasing revenue greater than $10 in most companies

• Expense reduction improves your ability to compete

• Expense reduction can be an alternative to headcount reductions

Why Focus on Overhead?

• Established in 1992

• Over 14,000 projects completed world-wide in more than 30 countries

• Average cost savings across all expense categories is 19.7%.

• Focus on non-core operating expenses; savings goes directly to the bottom-line

• No savings – absolutely no fee

• Work on a no-risk, contingent fee basis; fee is derived from the measured savings that the client receives

Demonstrated Experience and Results

Who is ERA?

Broad Industry Experience

Some Key Clients

When to Consider Outsourcing

Low

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Hig

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Low - Time/Effort/Expertise Required - High

Higher returnRequires little effort/expertise

Do internally?

Outsource?

Lower returnRequires high effort/expertise

Logistics

• Small Package Freight

• Domestic Freight

• International Freight

Insurance

• General/Worker’s Comp

• Health

Services

• Equipment Maintenance

• Janitorial Services

• Payroll Processing

• Printing

• Records Management

• Temporary Labor

• Uniforms

• Waste Management

Supplies

• Chemical

• Cleaning

• Food Services

• Lab and Medical

• MRO/Factory

Consumables

• Packaging and Shipping

• Printing

• Stationery and Office

Telecommunications

• Data

• Mobile

• Voice

Merchant Card Fees

Leasing

Expense Categories

Analyze6-8 weeks

per category

Define Options

6-8 weeks

per category

Implement& Monitor24 months per category

Complete analysis of business and requirements

Process: Select and manage suppliers with recommendations

Implement solutions, measure and monitor ongoing

Activities: • Define scope• Obtain data• Understand data• Know requirements• Benchmark to database

• Identify Potential Suppliers

• Benchmark to database• Test the Market (RFP)• Analyze the data

• Negotiate Supply Agreement• Implement recommendation• Monitor supplier compliance for 24-months

Deliverables: • Baseline Report • Recommendation Report

• Implement & Compliance review

How We Do It

No savings = No feeExpense Reduction Analysts Our Clients

• Analyze the client’s current costs and service environment

• Identify and help implement hard-dollar savings options for our clients utilizing our:

• proprietary process

• expert resources

• benchmark pricing data

• Provide post-implementation support services throughout the review period

• Operate with integrity and respect for our client’s personnel and supplier relationships

• Allow ERA to present a successful recommendation and earn a share of the savings during the subsequent Review Period

• Provide timely access to information

• Have the sole right to select which of the successful recommendations is the best fit for themselves

• Implement successful recommendations for an expense category within 30 days of Recommendation Report presentation

• Do not solicit any offers from suppliers or duplicate ERA’s work, and refer all unsolicited inquiries or offers from suppliers to ERAA successful recommendation is:

1. A lower cost solution from an incumbent supplier(s); and/or

2. A lower cost solution with savings above an agreed to minimum, from a non-incumbent supplier who provides equal or greater products/service/quality; and/or

3. A solution from a non-incumbent supplier that our client elects to implement even though it does not meet the criteria above; and/or

4. Provides savings realized from approved changes in methodologies or process

Working Together

No savings, no fee

“You guys have done what I’ve been trying to do for three years, but couldn’t. Either I didn’t have the time, or the energy, or the expertise.”

Senior Vice President/General Manager, Gleason Industries