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RR Donnelley Opens Industry's Largest Private Mail Preparation and Distribution Facility

Friday, April 22, 2005

Press release from the issuing company

CHICAGO, April 21 -- R. R. Donnelley & Sons Company today announced the opening of a new logistics facility in suburban Chicago. The 661,000 square foot building is designed to house the Logistics Control Center, a mail consolidation center, as well as the company's rapidly expanding co-mailing, co-palletization, co-mingling, and fulfillment operations. "Our extensive print logistics capabilities are a key differentiator in the marketplace," said RR Donnelley CEO Mark A. Angelson. "This new facility houses the largest, most comprehensive private mail preparation and distribution operation in the industry, and demonstrates RR Donnelley's commitment to be the leader in helping customers reduce cycle times and achieve the lowest possible total distribution cost." The facility, at the Windham Lakes business park in Bolingbrook, Ill., will also be the headquarters of RR Donnelley Logistics, one of the largest logistics operations in the United States. Nearly 40 percent of all standard mail in the United States is delivered into the U.S. postal system by RR Donnelley Logistics. The 40-acre Windham Lakes site includes the new 661,000 square foot building with 100 bays and parking for 300 semi-trailers. Among the services provided at the facility are: -- Co-mailing - where RR Donnelley combines individual copies of publishers' magazines into one mail stream to improve delivery times and reduce costs. -- Co-palletization - in which RR Donnelley combines presorted, bundled magazines from different publishers on the same pallet (replacing more costly distribution in mail sacks). -- Co-mingling - in which RR Donnelley merges pieces of direct mail from different customers into one mail stream to maximize discount and improve delivery. -- Fulfillment - where RR Donnelley supplies digital print-on-demand or just-in-time offset print with off-the-shelf inventory in quantities desired by the end user, packaged and quickly delivered in the manner requested. "This new facility is the premier mail center in the United States, and is designed to accommodate RR Donnelley's rapid expansion in mail distribution," said Dan Scapin, President of Logistics and Distribution for RR Donnelley. "We have incorporated new technologies and innovative solutions - including new co-mailing equipment and a communication and data transmission system that is entirely wireless, using fiber optics and fully-integrated radio frequency identification (RFID) technologies - to help our customers and company reduce supply chain costs and postage expenses." John Paloian, Group President, Publishing & Retail Services for RR Donnelley, added, "We understand the business issues our customers face, and we know that managing distribution costs and achieving timely delivery are critically important to them. We are very excited about this new facility because it will allow us to build on the success we've already had at optimizing distribution costs for our customers with our current co-mailing and co-palletization programs. Going forward, we will continue to focus on areas where RR Donnelley can add value for customers."




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