DM Program Guide

PROGRAM GUIDE Omni Channel Solutions for E-Commerce, Retail and Marketplace Drop-Ship.

INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B/RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

Version 07/14

*Note: some tabs have multiple pages.

INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

REVERSE LOGISTICS

CALL CENTER

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

INTRODUCTION 2

YOU R B R AN D. YOU R CU STO M ER EXPER I EN CE .

A FU LFI LLM ENT PARTN ER YOU CAN TR U ST. Dear Valued Partner, At DM Fulfillment we pride ourselves on delivering value, reliability, innovation and trust as a fulfillment partner. Our mission is to deliver an outstanding customer experience to both our partners and their customers. We accomplish this through excellence in fulfillment, integration through technology, value-add services promoting your brand and outstanding customer service.

Our investments in technology and highly efficient distribution centers allow us to reach 99% of the U.S. in one or two days by low-cost ground shipping. Those same efficiencies keep start-up costs low and support highly competitive pricing. In addition, our technology group can help integrate our systems electronically automating the ordering process and you can feel at ease knowing that real-time reports are always available via our reporting portal providing a comprehensive snapshot of your account.

One provider for all your needs. Direct to consumer drop-ship, e-commerce, marketplace, retail or all of the above, we have you covered, now and into the future as your needs grow.

We understand your brand is important and significant resources have been developed to reinforce your brand in a positive way with every drop-ship order. In addition to branded packing slips and labeling options, our unique print-on-demand collateral program allows you to include promotional messages, product awareness information and even customized messages input from your customers at the point of sale, (e.g. Happy birthday grandson!).

We look forward to the opportunity to discuss how we can simplify and improve your fulfillment program. In the meantime, best wishes for success.

Best Regards,

Bob Klunk Managing Director, DM Fulfillment Continue to next INTRODUCTION page

www.dmfulfillment.com

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(636) 720-3280

INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

INTRODUCTION 3

Omni Channel Solutions for E-Commerce, Retail and Marketplace Drop-ship.

National distribution footprint with 1-2 day delivery via ground shipping 3-Day international delivery Brand building & in-box marketing Custom packaging Automated systems & unparalleled efficiency People, process & experience Order automation, same-day shipping and 99.9% accuracy On-demand, real-time reporting

www.dmfulfillment.com

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(636) 720-3280

DISTRIBUTION CAPABILITIES

INTRODUCTION

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

REVERSE LOGISTICS

CALL CENTER

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DISTRIBUTION CAPABILITIES distributionCAPABILITIES 4 Bellingham Seattle Tacoma Spokane Olympia

WA

Richland

Portland Salem Eugene OR

ND

MT

WY UT

CA

CO

Las Vegas

Los Angeles San Diego

AZ

Flagstaff Sedona Prescott Phoenix

NM

Lubbock Hot Springs Abilene Dallas TX Longview LA Waco Beaumont Austin Houston San Antonio

Tucson

AK* HI* *AK, HI, PR 2-Day AIR Transit

Syracuse Rochester Albany Buffalo

WI Madison Milwaukee

NH MA Boston RI CT

MI Waterloo PA Newark New York City Chicago IA Cleveland Carlisle NE NJ Des Moines Omaha OH Pittsburgh Peoria MD Lincoln Indianapolis DE Washington DC Springfield WV IN Kansas City IL VA St. Louis KS MO Wichita KY Springfield NC Nashville OK Tulsa TN AR Memphis SC Oklahoma City Little Rock

Salt Lake City

Fresno

VT NY

Minneapolis St. Paul Sioux Falls

Reno NV

ME Duluth MN

SD

ID

San Francisco

Fargo

PR*

Laredo

Distribution Centers

MS

GA

AL

FL

GROUND SERVICE

1

DAY

2

DAY

3

DAY

“We are dedicated to fulfillment and distribution excellence. By leveraging technology, automation, and carrier relationships, clients enjoy late afternoon order cut-off times and same- day shipping on a high percentage of their orders. Additionally, our strategically located DC network ensures 1 to 2 day cost- effective ground delivery to 99% of the U.S. population.”

Rick Goe, Vice President-Supply Chain Management.

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

REVERSE LOGISTICS

CALL CENTER

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

B-TO-B/RETAIL CAPABILITIES 5

RETAIL In retail or considering? Whether you’re approved as a drop-ship vendor, bulk ship to store, or site to store, DM Fulfillment has you covered.

While retail can provide significant upside, it can also be very daunting regarding distribution and shipping requirements. DM understands the needs from front-end integration to out-the-door compliance. Our experts will work with you and all parties to help connect the dots, quickly. After all, time is money!

How?

Our experts take you through a comprehensive step-by-step process to ensure we are set to ship the day you get your first order. We understand how to implement with your specific retailer(s) and we interface with the most common retail data exchange platforms including SPS and Commerce Hub. We exchange data with them via FTP, AS2 or by using the Van. The retailers have their preferences and we know what to do.

We maintain retailer routing requirements and comprehensively update and train our DC teams on carriers and labeling requirements. Our teams take great pride in being part of your retail team.

Results!

We love to be graded!

VENDOR NAME

Retail scorecards matter. We take

January Direct Ship Vendor Scorecard

Out of

January

STD

YTD

Ship On Time

40

40

40

40

those grades very seriously and as

Fill Rate

40

40

40

40

Fulfillment Time

20

19

19

19

Secret Shopper

-

0

0

0

your trusted partner, we will ensure

Total Points

Timeframe Grade Pts Sales Rank LY Sales Sales % Chg

you ace the test!

Vendor ID #

078792812

Live Since: Vendor Scorecard Metrics

YTD Vendor Scorecard Grade

100

99

99

April

May

June

0

0

0

0

0

$0

$0

$0

$0

$0

# of Confirmed Orders # of Delinquent Orders Total Ship On Time %

TY 43 0 100.00%

January LY 0 0 -

% Chg -

TY 52 0 100.00%

# of Units Shipped # of Units Cancelled Total Fill Rate %

53 0 100.00%

0 0 -

-

Avg Fulfillment Time Avg Business Hour Fulfillment Time

26 15

-

-

$0

0

LY Year End Grade

March

February

11/19/13

A A

January Vendor Scorecard Grade

99

Monthly Recap July August

September

October

November

December

January

YTD

A 96 $54 782 $0

No Grade due to System Issues

A 99 $745 704 $0

A 99 $3,575 162 $0

STD LY 0 0 -

% Chg -

TY 52 0 100.00%

YTD LY 0 0 -

% Chg -

63 0 100.00%

0 0 -

-

63 0 100.00%

0 0 -

-

32 19

-

-

32 19

-

* click to view

$0

Compliance Ship on Time %

You need a trusted partner for retail. DM Fulfillment has you covered.

Fill Rate %

Avg Fulfillment Time

-

Ship Efficiency STD (Thru Previous Month) LY -

TY 160 1.0 0.9 1.3 0

Combinability Total # of Packages Units / Order Units / Pkg Pkg / Order Incorrect Upgrades

TY 160 1.0 0.9 1.3 0

% Chg -

Spring Month Tested NOT TESTED

Results

Spring Result -

Fall Month Tested NOT TESTED

Fall Result -

Score # of Ratings Score # of Ratings Score # of Ratings Score # of Ratings

YTD -

Total -

Customer Ratings Value Style Quality Overall

Chargebacks

Chargebacks TY Delinquent Orders Fill Rate Secret Shopper Misc-Shipping Total Chargebacks

|

% Chg -

Customer Experience

Secret Shopper

www.dmfulfillment.com

YTD (Thru Previous Month) LY -

(636) 720-3280

$ $ $ $ $

-

$ $ $ $ $

January LY -

% Chg -

STD LY

TY $ $ $ $ $

-

$ $ $ $ $

-

% Chg -

YTD LY

TY $ $ $ $ $

-

$ $ $ $ $

-

% Chg -

INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

TECHNOLOGY & AUTOMATION World-Class Technology to Automate and Simplify

6

Our world-class systems will help simplify your business and take the headache out of logistics so you can focus on what you’re good at — YOUR BUSINESS. You can count on DM Fulfillment to use proven, up-todate technologies that will enable you to be more productive and efficient. DM Fulfillment systems are so automated and efficient that our cut-off time is much later than most distributors: 6pm local time in each distribution center with same-day shipping. In addition, because of the technology in place, there is minimal opportunity for human error. “ We p ri d e o u rs e lve s o n n ot b e i n g a n o f f- s h o re d, revo lvi n g d o o r o f o u ts o u rc e d p ro g ra m m e rs . We h ave a d e d i c a te d te a m o f i n te rn a l, h i g h - l eve l s o f twa re e n g i n e e rs d e d i c a te d to o u r c u s to m, s ta te - o fth e - a r t W M S . We a re n i m b l e a n d c a n d eve l o p n e w fu n c ti o n a l i ty q u i c kly a n d a c c u ra te ly.”

M i c h e l l e Ka u f m a n, Vice President-Te c h n o l o g y.

Seamless Integration DM Fulfillment has multiple options to connect via EDI and web services for order automation. Whether you have a provider you currently work with or need a recommendation for a new one, we are here to help.

Not only can you place orders electronically, but DM Fulfillment will give you real-time freight quotes and honor those estimates. This ensures that you’ll charge the correct freight to your customer. You will also enjoy web services for real-time, on-demand QOH that will feed into your system.

• We scan and keep your packing slips so you can access at any time

• Full order management system with automated cross-shipping capabilities

• Multiple invoicing options with as much or little detail as you want

• Detailed work order tracking

• Custom reports are delivered to you automatically

• Detailed supply routing labels ensure your product gets to the right building and the right person within that building

• Precise tracking: track what units come in with any given shipment

• Exceptional documentation and analysis for continual improvement of your ordering and tracking Continue to next Technology & Automation page

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

REVERSE LOGISTICS

CALL CENTER

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

TECHNOLOGY & AUTOMATION 7

Our Connectivity Partners Our goal is to support you and your business by integrating your company’s software with ours, making it easy for you to do business with us electronically. We want to make the integration seamless and simple ensuring you have everything you need to be successful.

connectivity partners REAL TIME STOCK & PRICE

BACKOFFICE PROVIDERS

TRANSMIT ORDERS & CONFIRMATIONS

TM

LaCrosse

TM

SSI

STOREFRONT PROVIDERS

ü ü** ü ü ü ü ü ü** ü ü**

MAGENTO

ELECTRONIC INVOICING

MPS SUPPORT

PARTNERSHIP PROGRAM

ü ü ü ü ü ü

ü ü ü ü ü ü

ü ü ü ü

ü ü ü ü

(Also includes integrated storefront)

ü ü* ü ü ü ü** ü ü ü ü ü**

Britannia

ELECTRONIC SHIP NOTICES

ü ü ü ü ü ü ü ü ü ü ü

ü ü ü ü ü ü ü ü ü ü

ü ü ü ü ü ü ü ü ü ü ü

(Does not include backoffice)

ü ü ü ü ü ü ü ü ü ü

ü ü ü ü ü ü ü ü ü ü

ü ü

ü

ü ü***

ü

ü

OTHER SERVICES CUSTOM, PER SPECIFICATION CUSTOM, PER SPECIFICATION

ü ü (636) 720-3280

www.dmfulfillment.com

|

ü www.DMFULFILLMENT.com

(636) 720-3280

*V5-stock only **Stock only

CATALOG PRICE FILE, DAILY FEED

***Near time

CATALOG PRICE FILE, DAILY FEED

DISTRIBUTION CAPABILITIES

INTRODUCTION

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

YOUR BRAND We understand the importance of your brand. Faithfully representing your brand is core to our business.

As committed as we are to superior fulfillment and distribution, that commitment is equally matched by our dedication to faithfully represent your brand in every shipment. Significant resources have been developed to ensure that a positive customer experience is being delivered by you.

Instant Inserts High impact, customizable, branded collateral delivered with your products. DM Fulfillment’s in-box print collateral program offers unlimited messaging opportunities. This program can effectively and efficiently communicate your most important messages direct to your customers. With versatile, print-on-demand technology, we can create unique messages based on product category or SKU. In addition, our Marketing Department can help design your inserts.

Best practice: Include special offers driving customers back to your website for more information. We can even include a QR code to take your customers to a specific location on your site.

¶BX-0102JÄ BX-0102

Offered to you from HP and your friends at: Beyond Technology Phone: (303) 629-0252 www.beyondtec.com

¶11056011;Ä 11056011

Branded Pick Tickets Reinforcing a branded customer experience.

The pick ticket serves a simple yet extremely important purpose in the shipping process. It’s used in the warehouse to confirm order accuracy, then is placed directly in the box with the product prior to shipping, and ultimately ends up in the hands of your customer.

DM Fulfillment understands the importance of reinforcing that branded customer experience at as many touch points as possible.

Labels DM Fulfillment’s labeling capabilities allow you to add any special instructions, product information or even order level package routing information to your shipment.

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

CALL CENTER 9 9 Call center support is available to supplement your existing resources or as a total customer service solution. With direct access to inventory, order and shipping data, our agents can provide the best possible customer experience and increased customer satisfaction.

Capabilities

• Automatic Call Distribution (ACD) • Call routing based on a path of a toll-free number • Call groups designated to a toll-free answer point • ACD group roll-over to secondary groups to increase call coverage efficiently • Call Classification Codes • Alarms–Notifications alerting supervisors of agents and queue falling below expected service level • Real-time monitoring, both audio and visual • Call Center Forecasting–Appropriate ACD Agent staffing • Customizable routing, hold and transfer times • Recognizable call paths • Client specific toll-free number

Alternative Answer Points

• Customizable Automated Attendant • Options Dialing through the Automated Attendant and while in queue • Optional–Customizable recorded announcements for calls in queue • Optional–Voice Mail Opt-out call routing

Reporting

• Report call activity based phone number usage • Agent or agent group based reporting • Call classification/accounting code based reporting • Reports automation with electronic delivery

Peace of Mind • The quality you expect–Agents are trained in-house to ensure quality standards • Experience–Telecom analyst with over 24 years of call center experience • Reliability–IS Operations team is trained in telecommunications support • Responsive–We follow the 80/20 rule: 80% of calls are answered within 20 seconds with an average answered within 18 seconds • Continuity–Redundant Call Controllers roll over to a resilient controller. In the event of an outage, DM can re-route incoming toll-free numbers to a pre-determined answer point in minutes

Interested in Call Center services? Contact your Account Manager for more information.

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(636) 720-3280

INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

REVERSE LOGISTICS 10

Need expanded support for those pesky returns?

We have options.

OPTION 1

OPTION 2

JUST IN TIME

IN EVERY OUTBOUND

When a customer contacts you with

Include a Return Service UPS Tag

a return, DM Fulfillment will quickly

in every shipment. DM Fulfillment

take care of getting the product

will set up a Return Service Tag SKU

back into your DM Distribution Cen-

that will be added to every out-

ter (DC) for resale or forwarded on

bound shipment. You can provide

to you for inspection. Leveraging our

any needed instructions on your pick

high-volume UPS account rates, we

ticket, include a drop-in-the-box flyer

will create the Return Services Tag

furnished by you or we can develop

which can be emailed directly to the

one for you which will be added to

customer on your behalf or sent to

every order. This is a great service for

you for forwarding with additional

customers who expect a high per-

instructions.

centage of returns (25% or greater).

* Standard UPS freight rates apply for return freight. Standard repacking and SKU restocking fees apply.

These services include our standard reports so you are proactively aware any time a return comes back to the DC. Our inventory reports will provide updates on the status of returned product including when it’s ready to re-sell.

Interested in reverse logistics support? Click the button below to get started or contact your Account Manager for more information.

CLICK HERE TO GET STARTED

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DATA MANAGEMENT & REPORTING 11

The DM Fulfillment Portal provides 24/7 access to critical data and information in real-time. Customers with full system integration are able to access the same information in their own system. Each customer receives unique log-in credentials for secure access to portal information, and all reports are downloadable in Excel. This simple, intuitive portal ensures you have access to the information you need, anytime and anywhere via your web browser.

Security Many technologies are used to keep our mutual information secure. Redundant Cisco Firewalls are maintained with current versions of IOS software. In addition, an intrusion prevention system deters unauthorized access. We are connected to our Distribution Centers through private MPLS connections providing greater security than traditional VPN tunnels. Our fulfillment portal uses SSL technology to secure client log-in and password information protecting against unauthorized access.

Portal Views: SHIPMENT HISTORY

SHIPMENT SEARCH

Review shipment history for current day, prior day, MTD and YTD.

Search for order detail by date, ship-to name, order number, P.O. number or part number.

Continue to next DATA MANAGEMENT & REPORTING page

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DATA MANAGEMENT & REPORTING 12

More Portal Views: SHIPMENT DETAIL

INVENTORY SEARCH

Review shipment details including customer, product, shipper details and tracking info.

Search and review inventory detail by part number or description.

ITEM SET-UP

Quickly and easily set-up new items.

Continue to next DATA MANAGEMENT & REPORTING page

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DATA MANAGEMENT & REPORTING 13

On-Demand Reports Many reports are available on-demand.

Business Review A comprehensive overview of account activity for a specified date range including information on ordering patterns, customers, returns and inventory levels. Your DM Fulfillment representative prepares this quarterly as part of our continuous improvement process. It can be run at any time for a specified date range.

Continue to next DATA MANAGEMENT & REPORTING page

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DATA MANAGEMENT & REPORTING 14

Receiving Report - Receipt Data Report detailing inventory received.

Inventory Report Detailed inventory report providing inventory level, average daily sales and unsellable inventory by DM Fulfillment Distribution Center location.

Continue to next DATA MANAGEMENT & REPORTING page

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

DATA MANAGEMENT & REPORTING 15

Shipped Order Report Report listing orders shipped during a specified date range.

Serial Number Report Provides serial numbers at order level.

Billing Overview Billing summary for a specified date range showing totals for various categories.

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INTRODUCTION

DISTRIBUTION CAPABILITIES

B-To-B RETAIL CAPABILITIES

TECHNOLOGY & AUTOMATION

YOUR BRAND

CALL CENTER

REVERSE LOGISTICS

DATA MANAGEMENT & REPORTING

WHY DM FULFILLMENT

WHY DM FULFILLMENT A Stable Partner you can Trust DM Fulfillment is a subsidiary of Distribution Management (DM), a privately held organization based in St. Louis, Missouri. Since its founding in 1972, the DM management team has launched and grown numerous businesses including Supplies Network, a leader in the distribution of IT consumables for vendors such as HP, Canon, Lexmark, Xerox, Brother and IBM.

One Provider for all Your Needs Direct to consumer drop-ship, e-commerce, marketplace, retail or all of the above, we have you covered, now and into the future as your needs grow.

Highly Scalable With four distribution centers totaling 280,000 sq. ft. DM processes up to 8,000 orders per day and is well positioned to support the needs of start-ups up to medium size businesses with the dedicated support and technology infrastructure to support special needs.

National Footprint with Competitive Costs Four highly automated Distribution Centers are strategically located to reach 99% of the U.S. in one or two days through economical ground shipping. Our system will optimize every order to select the best origin and carrier for the lowest freight cost and time in transit.

Technology Integration Our in-house technology group can connect our order entry system to your order management or e-commerce platform. DM has in-house development staff and partnerships in place to receive electronic orders (EDI) with national providers. Information is real-time and all orders are 100% RF scanned for accuracy and efficiency.

Secure Automated Facilities Our facilities and systems are state-of-the-art when it comes to security, inventory accuracy and real-time visibility to order information. Our order accuracy is 99.95%.

Experienced Team and Leadership Our Client Services Team is a dedicated group of professionals focused on our customers. The team includes individuals experienced in the onboarding of new customers and works to quickly transition your account with little or no disruption to your business. Each account has a dedicated customer support representative and a senior management advocate.

A Total Solution The DM Marketing Team and 100+ seat call center provides personalized customer support and promotional activity for vendors and our network of 6,000 independent partners and fulfillment clients.

Areas of specialty include Direct Response Marketing, demand generation and merchandising support.

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