Presentation

Mexico City

August, 18-21

1

Overview

• Since establishing QWE personnel in-house, we have been ableto work closer with Quebecor MX plant.

• We support different areas primarily warehousing and CSR, butthis support has been more as assistance rather than logistics.

• During this time we have assisted the plant in order to grow ourcore business which is Logistics.

• We are open in supporting the plant the same way we havedone for the last year, but we want to participate in more logisticprojects and current volume operations.

• We want an opportunity to analyze your current operations tooffer you logistic solutions to transform them into a process ofimprovements, cost reductions and new and modern logisticsscheme.

2

Objectives

• Define or redefine our position in QWM.

• Improve our current performance.

• Reinforce our commitment with QWM and work together .

• Analyze current global operation in order to propose alternatives.

• Work together in our common benefit.

• Ability for QWM to focus on their core business

• We are focusing our strategies in 6 points:

1. Define QWExpress position within QWM

2. Cost Reduction

3. C-TPAT

4. Teamwork

5. Analyze your current operation

6. QWE commitment

3

Define QWE Position Within QWM

Quality Chief

Planning Chief Purchasing ChiefCustomer

Service-ExportsCustomer Service

SupervisorWarehouse

Chief

Operations Manager Quotation Chief

Domestic & Export

SupervisorSupervisor &

Logistics

Buyer

Current:

Within QWM structure, QWExpress is perceived as an assistance and not a logistics support

4

Define QWExpress Position Within

QWM

Proposal:

Quality Chief

Planning Chief

Purchasing Chief

Warehouse Chief

CustomerService-Exports

Customer Service

Supervisor

Operations Manager

Quotation ChiefIn-House Logistic Provider

QWExpress should work in conjunction with the Operations Manager to coordinate with planning, purchasing, warehousing and customer

service departments.

Direct Report

Coordinate

Work in Conjunction

BuyerDomestic & Export

Supervisor

5

•2007 QWM Costs for FedEx International Air Freight Service was approximately

$106,000 USD.

Cost Reduction

•QWExpress costs would have been approximately $90,000 USD or 15% savings

to the plant.

6

Teamwork

QWM and QWExpress need to work as a team.

Proposal

Attend weekly meetings with planning, purchasing, warehousing, customer service and accounting departments.

Attend monthly meetings in areas involved in order to evaluate overall performance and take actions.

QWE is open to hearing suggestions, ideas and issues in order to attain the plant’s satisfaction.

Benefits

Open communication within the departments so that requirements are met and errors are reduced.

Have open communication, the labor atmosphere will be good and productivity will grow.

7

Analyze Current

Operations QWE sees an opportunity to analyze your current operations

• Domestic distribution (ADSA and daily domestic)

• Non USA and Canada Exports (maritime)

• Importation of paper rolls (ground and maritime)

• Brokerage service (Veracruz and Manzanillo)

• Air shipments

Proposal

• Check the current flow of each process

• Know your strengths and weaknesses in current structure

• Share with us your current cost and expectations to reduce it

• Contact your current suppliers in order to know their situation

• Do a benchmarking for each operation

• Do a complete analysis in order to give you alternatives

8

C-TPAT

If and when there is another terrorist attack on US soil, all ports in the

US will close for 30 days. On the 31st day, only those companies

that are C-TPAT validated will be allowed to import into the US.

Evaluation

Currently, Quebecor World Mexico has not initiated their

application on C-TPAT.

QWM has few C-TPAT procedures in place.

QWM is not following the Foreign Business Partner requirements

with QWExpress.

9

C-TPAT-Continuation

Proposal

QWExpress will assist QWM in initiating C-TPAT application and prerequisites.

Benefits

With QWExpress support, QWM can attain C-TPAT certification.

10

QWExpress Commitment

QWExpress is committed in providing the best possible logistics service to

Quebecor World Mexico.

With QWExpress providing all the logistics needs for the plant, we will be

responsible and accountable for all shipments from pick up to delivery.

11

QWExpress Commitment

Proposal

QWExpress will coordinate the export of truck shipments. (In process)

QWExpress will coordinate all import/export air shipments. (Can provide assistance immediately)

QWExpress will analyze the importation of truck shipments.

QWExpress will analyze all import/export maritime shipments.

QWExpress will analyze all domestic shipments.

12

QWExpress Commitment

Benefits

Bilingual experienced in-house logistics supervisor and support

from the QWExpress Latin American department.

Reduce/Improve logistics costs.

Improve the cash flow for the plant.

Logistics bills to be paid by QWExpress

13

Thank You

Antonio SalinasLogistics Operations Manager-Latin America

14