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Mid-Year Review

Mid-Year Review. Golf Outing Presentation – August 30, 2006. Mid-Year Review. Agenda. 1. New Offerings. 2. State of the GPO. 3. Organizational Update. Mid-Year Review. New Offerings – Office Products Sourcing.

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Mid-Year Review

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  1. Mid-Year Review Golf Outing Presentation – August 30, 2006

  2. Mid-Year Review Agenda 1 New Offerings 2 State of the GPO 3 Organizational Update

  3. Mid-Year Review New Offerings – Office Products Sourcing Over the past six months, Corporate United underwent an exhaustive process to re-source our industry-leading office products agreement. As a result of conducting this thorough effort, Corporate United was able to leverage significant savings with our incumbent provider, who was subsequently selected (unanimously) by the member steering committee. Some of the new features of this agreement include; 6% aggregate savings vs. historic across all items Expanded Tech, PDS, and Canadian offerings Guaranteed 1% savings in the out years of contract Formalized total cost reduction program Nine people from these six Corporate United members contributed their time and resources to this important effort; Progressive ~ BAE Systems ~ Merrill ~ Unum Provident ~ Sherwin Williams ~ Hubbell ~ Lubrizol

  4. Mid-Year Review New Offerings – Personal Accident Insurance Corporate United’s second category under Employee Benefits is Personal Accident Insurance (AD&D, Business Travel Accident, etc.) was awarded in May. As a result of conducting this thorough sourcing effort in conjunction with Terry Havens, Nationally recognized insurance expert, we were able to create the first multi-company aggregated program in this category. Some of the new features of this agreement include; Significant savings over current analyzed rates Underwriting based on 400,000 lives in group CU discount from Hartford on other lines (Life, Disability) Switching cost almost nothing and can be in effect immediately This category can provide the low switching cost, low disruption, and quick win that Procurement is looking for when engaging with HR Benefits.

  5. Mid-Year Review New Offerings – Water Corporate United researched and negotiated a best-in-class agreement for Drinking Water based on various members requests from 2005 and 2006. As a result of conducting this sourcing effort, CU was able to award an aggregated program in this growing category. Although spends are relatively low, savings are significant. Some of the new features of this agreement include; Negotiated free trial period Roll-out Rebate for compliance goals attained in 180 days Only National Filtered Drinking Water Cooler Supplier Prices fixed for life of CMSA and Group Rebate Negotiated This category can provide substantive bottom-line impact as savings with members has averaged 65% savings over bottled water solutions.

  6. Mid-Year Review New Offerings – IT Staffing Because of our long and successful relationship with Volt Staffing, Corporate United has been able to leverage an extension of our relationship to include IT resources. Volt can draw on an existing pool of over two million candidates to serve our members’ IT needs on a temporary, contract, or direct hire basis; providing our members with an unmatched ability to achieve scale efficiently. Sample areas of expertise and functional positions included in this agreement include; Client Server Data Warehouse eCommerce ERP Info Security Mainframe Analysts App. Development App. Support Tech. Writers Help Desk Design Initial benchmarking has identified mark-ups of 15-20% below negotiated rates. Contact your Corporate United representative now to learn more about rates and disciplines available exclusively to our members through Volt Staffing.

  7. Mid-Year Review New Offerings – Relocation Services Corporate United is able to offer our Cleveland-based members with an industry-leading Relocation Services contract. By taking a unique unbundling approach, we have created a transparent contract with compelling value. By working with former Graebel Vice President Pete Kolp, Corporate United has been able to leverage best-in-class agreements with Weichert Relocation, United Van Lines, and other top suppliers to create a superior end-to-end relocation solution for our members. Some of the areas covered by our new, comprehensive solution include; Policy Assessment Expense Mgmt. Mortgage Svcs. Corporate Housing Tax Analysis Payroll and Comp. HHG Transport Domestic and Int’l Vehicle Transport Warehousing Office & Ind. Moves Containers Rental Coord. Cost Analysis Custom Crating Move Mgmt.

  8. Marketing & Communications • Document / Quick Print Services • Premium & Promotional Items Corporate United Overview Category Offering IT and Telecommunications Facilities & Maintenance • Audio & Web Conferencing • Contingent Staffing • Multi-Functional Devices • Roofing • Uniforms • Water Maintenance, Repair And Operations Human Resources Benefits • Pharmacy Benefits Management • Life and AD&D and Disability Insurance • Industrial Supplies • Office Supplies & Toner • Safety Supplies / PPE Personnel • Contingent Staffing Services • Flowers & Gifts • Relocation

  9. Corporate United Overview The Emergence of an Industry Leader Our Members Enjoy the Leverage & Network of a Virtual Fortune 3 Company

  10. Events Information Golf Outing & Supplier Expo August 30, Firestone Country Club ~ Akron, OH ~ Newsletter & Updates Communication and opportunities Synergy 2007 May 1-3, The Palmer House Hotel ~ Chicago, IL ~ Quarterly Report Insights across supply chain Regional Member Meetings Education and Best Practices ~ Maryland / Ohio / Minnesota ~ Member Message Board Inclusion of third-party experts Mid-Year Review State of the GPO – Education and Networking In addition to our category offerings Corporate United remains focused on the creation of a valuable member experience. In that spirit, we are continuing to evaluate & improve the educational components of our model.

  11. Corporate United Overview Member Communication Quarterly newsletters and informative “News Now” updates keep our members up to date on what the group is doing; as well as issues affecting the entire supply chain.

  12. Corporate United Overview Member Communication Members can seek out information and share best practices through Corporate United sponsored networking events and interactive web-based message board.

  13. Mid-Year Review State of the GPO – Member Review Update Corporate United is constantly thinking of new and better ways to serve our members. In response to information collected at the annual meeting in Chicago, we have developed a new data collection strategy. The information we collect will enable us to provide our members with important benchmarks while guiding Corporate United toward an actionable sourcing roadmap.

  14. Conducted Upcoming Uniforms and Mats: Cintas (Q4) Temporary Staffing: Volt (Q4) Temporary Staffing: Manpower (Q4) Industrial Supplies: Fastenal (Q2) Safety Supplies: Choctaw Kaul (Q2) MFD’s: Konica (Q3) Mid-Year Review Organizational Update – Participating Member Meetings As part of our continuing efforts to improve our contract management approach, we have instituted the biannual Participating Member Meetings. • Provide leverage throughout contract lifecycle • Give members ongoing information and opportunity to provide input • Expand management beyond the original sourcing committee

  15. Mid-Year Review Organizational Update – Supply and Demand Chain Exec Corporate United is proud to have been named to the Supply & Demand Chain Executive 100 by Supply & Demand Chain Executive Magazine. Corporate United became part of the fifth-annual listing of the Supply & Demand Chain Executive 100 in Supply & Demand Chain Executive’s June/July 2006 issue. The Supply & Demand Chain Executive "100" list of supply chain solution providers, consultants and other organizations is an honor roll of companies helping to lead the way in transforming supply and demand chains. This year the magazine focused the criteria for its "100" feature on innovation. Highlighting the magazine’s objective search for organizations engaged with innovative strategies, Corporate United cites efforts in several key areas.

  16. Mid-Year Review Organizational Update – Mid-Atlantic Expansion In August Charles Davlin (formerly of JCI/York) established the Mid-Atlantic office of Corporate United. Charles will focus on the more than 100 Global 2000 companies headquartered in the region. • Spearheaded York’s evaluation of GPO’s and joined CU in 2002 • Championed the values of our group internally and to the industry media • Veteran member of the Dow Jones Steel Index Advisory Board • Extensive experience with Low Cost Country Sourcing • Experience with six (6) separate Corporate United agreements Please join us in congratulating Charles and lending a hand to help him get this effort up and running!

  17. Mid-Year Review Supplier Expo Corporate United is very pleased to feature our first Supplier Expo. Our annual golf outing is our only event that is open to our supply partners and we look forward to our members taking advantage of this great opportunity to learn more about the vendors that serve our membership. OfficeMax AIS Konica Spectrum Water Centimark The Hartford Group Manpower Fastenal Cintas Systemed Volt Choctaw Kaul

  18. Mid-Year Review Open Discussion

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