EDS and QSP, Inc have jointly announced a new, long-term contract for EDS to continue to supply customer relationship management (CRM) services, located in Des Moines, Iowa, to QSP, Inc, the wholly owned school and youth fundraising subsidiary of The Reader`s Digest Association, Inc.
The agreement extends and expands a 24-year relationship between the companies. Under the agreement, EDS will provide innovative technology and systems to support QSP`s business and help them implement new, revenue-producing marketing programs. Financial terms of the contract were not disclosed.
"The decision to extend our relationship with EDS was driven by their demonstrated ability over time to lower our costs, while adding value to our business," said Donna Ross, Vice President, Operations and Systems Development for QSP. "We look forward to a stronger partnership with EDS as we work together to deliver the right strategies, solutions and services to our customers."
Innovative technology
Under terms of the agreement, EDS will continue to provide direct-marketing coupon and order processing, product fulfilment and distribution services from its Des Moines, Iowa distribution centre. These CRM services support QSP`s US sales of magazines, books and music, which are primarily sold through school-based and youth group programs. This scalable CRM solution enables QSP to easily ramp up processing and fulfilment efforts as demand increases and to pay for services on demand.
"Security and scalability within the EDS infrastructure provide the unique capability of leveraged solutions that give our clients the benefit of the latest technology and the flexibility to increase and decrease service levels as demand fluctuates," said Daniel Henderson, president, Business Process Outsourcing for EDS. "EDS is dedicated to product fulfilment distribution services. We will continue to create best-in-breed solutions using a combination of technology and business process outsourcing so that clients like QSP can operate more efficiently and competitively and also increase profits."
New to this agreement is the addition of new technology, which will allow the company to automate the processing of direct marketing sales materials and orders while collapsing the cycle time for order fulfilment. Each year, EDS processes millions of orders and direct marketing sales materials year on behalf of QSP.
"Our new state-of-the-art facility in Des Moines provides the perfect solution for QSP and any company needing a flexible solution for order processing and fulfilment," said Scott Klein, president of EDS Consumer Industries and Retail Global Industry Solutions. "We are extremely pleased that QSP made the decision that our 24 years of providing QSP with product fulfilment, distribution and customer service merits an extended commitment."
The recently announced decision that EDS plans to exit the subscription fulfilment business in Louisville, CO, has no bearing on the work that EDS does for QSP.
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Since the early 1960s, QSP, Inc has helped schools and youth groups in the US and Canada to raise more than $2.4 billion. QSP, Inc is North America`s premier company providing such services to schools and youth organisations. QSP`s Internet site is www.qsp.com
The Reader`s Digest Association, Inc (NYSE: RDA, RDB) is a global publisher and direct marketer of products that inform, enrich, entertain and inspire people of all ages and cultures around the world. Revenues were $2.4 billion for the fiscal year ended 30 June 2002. Products include Reader`s Digest magazine, the most widely read magazine in the world, published in 19 languages, 48 editions and more than 60 countries. Global headquarters are located at Pleasantville, New York. For information, visit www.rd.com.
EDS
EDS, the leading global services company, provides strategy, implementation, business transformation and operational solutions for clients managing the business and technology complexities of the digital economy. EDS brings together the world`s best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers` trust and continuously seek improvement. EDS, with its management consulting subsidiary, AT Kearney, serves the world`s leading companies and governments in 60 countries. EDS reported revenues of $21.5 billion in 2001. The company`s stock is traded on the New York Stock Exchange (NYSE: EDS) and the London Stock Exchange. Learn more at www.eds.com.