*NEWS*FEDEX/KINKO ON’FUTURE OF DOCUMENT’

[Anonymous]

FedEx Kinko’s CEO on ‘Future of the Document’

Gary Kusin defines Information Logistics – the best way to move
information from the point of conception to the point of consumption.

AIIM ON DEMAND 2005: MAY, 2005 – In his interesting keynote address, Gary
Kusin, President and CEO oF FEDEX KINKO’S Addressed the future of the document and the future of his
company. Both are bright, but both are changing.

Hailing the joining of FedEx with Kinko’s as a natural pairing of two
pioneering global companies, he outlined some strategies for growth in the
printing industry. The future of on demand printing, Kusin noted, lies beyond
the industry itself. It is not being driven by new technology or equipment, it
is defined by the struggle just to keep up with the quickening pace of doing
business.

Distributing Information to a Mobile Audience
Experts predict that
2008 more than 55 million Americans will be connected to the Internet via
broadband. Companies will be able to do more online and do it faster. Climbing
real estate costs are forcing more people to live farther from the centers of
major cities – making commute times longer and more costly. These trends are
fueling the rapidly growing mobile workforce. One source estimates that nearly
25 percent of all enterprise workers are considered mobile and spend more than
20 percent of their time away from their workspace.

In this new information-centric world, access to information is more critical
than ever before. Yet the broader world of business has evolved faster than that
of printing on demand. Despite advances in technology, the industry has yet to
fully deliver on the promise of digital printing – getting print buyers and
document decision makers the information they need when, where and how they need
it.

The Promise of Digital Printing
Why has this promise gone
unfulfilled? The printing industry is fragmented and disaggregated, making
widespread innovation difficult. More importantly, the industry is built on the
traditional model of long print runs, bulk storage and inefficient distribution.
This business model was built around the way printing presses worked. While this
model worked well in the industrial age, it has quickly become outmoded in the
information age.

Local service providers cannot provide distributed production printing – a
requirement for global companies doing business worldwide. Digital printing
technology is available, but industry traditions have slowed its widespread
adoption. Meanwhile, networked computing and printing devices as well as
broadband connectivity have changed the marketplace. It’s like having airplanes
without airports and the infrastructure to deliver on the promise of the
technology.

Industry indicators tell us that employees are already starting to use
documents differently. Cut-sheet paper consumption has held firm while offset
output continues to decline. This means many people have already shifted to
smaller print runs produced closer to the point of need. Central locations are
not close enough to their companies or their mobile employees. And long lead
times are simply out of sync with today’s online, just-in-time, make-it-happen
world.

Information Logistics
The solution is a game-changing new business
model – led by Commercial Document Solutions from FedEx Kinko’s Office and Print
Services – called Information Logistics.

Information logistics means finding the best way to move information from the
point of conception to the point of consumption. It means distributing
information in ways that are faster, more flexible and more innovative than ever
before.

Information logistics manages the total flow of information that moves with
every business process. Documents become one important element in a dynamic flow
of information.

Delivering on Information Logistics
The key to delivering on this
new model lies in linking the digital with the physical in ways that have never
been done before. But a powerful network of global, distributed production and
shipping has been the missing component in bringing information logistics to
reality.

The acquisition of Kinko’s, Inc. more than a year ago by FedEx Corporation
brought together two global networks: one in business services, the other in
traditional shipping. Now, customers have access to a single source that can
integrate the best of the digital world and the physical world. That’s
information logistics.

Assets of the new FedEx Kinko’s include:
* 475-member sales team
*
20,000 document and shipping specialists
* 1,500 locations worldwide
*
Service to over 375 airports in 220 countries
* Integrated suite of business
services

FedEx Kinko’s has the power to deliver on the digital promise and to deliver
on information logistics. The combined companies’ state-of-the-art production
and global distribution network offers customers unparalleled service to easily
manage information, improve productivity, reduce costs and quickly respond to
changing market needs.

Coming Soon: The World Production Center
The company will open its
first World Production Center (WPC) in Memphis, Tenn. (home base of FedEx) in
the summer of 2005. Located at the FedEx ramp, the closed-door production center
will be the largest FedEx Kinko’s production facility in the world. It will
occupy 28,500 square feet dedicated to executing on information logistics.

In addition to document production and finishing, the location will feature
kitting and fulfillment by the end of 2005. The WPC will also include an
information logistics education and meeting space where customers will discover
how the power of two global networks can be put to work for them.

The Top Five Business Priorities
Having the tools in place to
deliver on information logistics isn’t enough if the model doesn’t pay off for
print buyers and document decision makers. According to a CEO Magazine
reader study done by Spherion Corporation, the top five future priorities for
executives are: 1) profitability, 2) business growth, 3) customer loyalty, 4)
cost reduction and 5) time to market of new products and services.

FedEx Kinko’s believes that companies who adopt information logistics will
have the opportunity to realize many of these key benefits.

One thing is certain: at a time when the rules seem to keep changing,
information logistics and Commercial Document Solutions from FedEx Kinko’s can
help companies get and stay ahead of the game.

Gary Kusin is president and chief executive officer of FedEx Kinko’s Office and Print Services, the world’s
leading provider of document solutions and business services based in Dallas,
Texas. Mr. Kusin is responsible for the strategic direction of Kinko’s, guiding
product and service vision as well as leading the organization’s growth and
development in the marketing, business and corporate areas.

An Inc. Magazine “Entrepreneur of Year” award winner, Mr. Kusin serves on the
board of directors of Electronic Arts, Inc., has served on the board of trustees
of the St. Mark’s School of Texas, and has been chairman of the Dallas Young
Presidents’ Organization. Currently he serves on the board of directors for the
Dallas Chamber of Commerce and as a member of the Dallas Citizen’s Council.

Mr. Kusin earned a BA from the University of Texas at Austin and an MBA from
the Harvard Business School. He joined FedEx in February 2004 through the
company’s acquisition of Kinko’s.

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May 29, 2005 at 11:31 AM