1) A newly awarded patent called "The Gindlesperger Method" has been granted that can significantly reduce procurement costs for customized goods and services without negatively impacting quality. 2) The method works by matching job specifications to prequalified suppliers in a database and sending bids to this group. All prequalified suppliers remain eligible for all bid opportunities. 3) Implementing this process can yield cost savings of 25-42% by changing the pricing process from one led by suppliers to one where suppliers submit competitive bids based on their own production needs.

1. Media Contact:
Joe Patterson, Communications Director
717-709-2106 (office) or 717-823-7556 (mobile)
joseph.patterson@e-LYNXX.com
NEWS RELEASE
December 9, 2008
Newly Awarded Patent Explained: Can Have Positive Impact On Your Bottom Line
An Interview with William Gindlesperger, inventor of “The Gindlesperger Method”
With cost savings being wrung out of nearly every aspect of doing business, the procured cost of
specification-defined goods and services is likely the last bastion for high-value added savings. This area
is now ripe for deep cost reductions, and that is why U.S. Business Method Patent No. 7,451,106, known
as The Gindlesperger Method, is so significant.
In the way of some background, in 1998, e-LYNXX filed for two business method patents to protect its
intellectual property including its competitive procurement methodology. The first patent -- applying to
print procurement -- was awarded to e-LYNXX Corporation by the United States Patent Office in 2002.
American Print Management was formed as a division of e-LYNXX to work with print buyers to reduce
their measurable hard-dollar costs on direct mail, marketing materials, commercial print, labels and
product packaging. Cost reductions of at least 25 percent are guaranteed. More typically, cost
reductions of about 40 percent are gained. The broader patent -- the one that applies to all specification-
defined goods and services -- is the one that e-LYNXX recently received.
Specification-defined goods and services have not been immune from increased competition and the
application of e-tools. Yet, the cost reductions have not been as deep as they have been for procured
inventoried items -- those products that are produced in quantities and stored by the manufacturer or
wholesaler until ordered.
The Gindlesperger Method makes it possible to reduce significantly the procured cost of specification-
defined goods and services without negatively impacting quality or service. The result is deep cost
reductions that build profitability to the extent that 1% and more of total revenues migrate from cost lines
to the bottom line.
Hard-dollar savings already have been squeezed out of the procured costs of inventoried items.
Specification-defined goods and services, however, cannot be pre-manufactured or stored in inventory.
Rather the supplier can only manufacture the customized item or supply the service once the item or
service is specified and procured. This means that the supplier – regardless of size – must hold time
open to meet the specified requirements of the next order no matter when that order is placed or what the
requirements turn out to be. This puts the supplier at a disadvantage by having unused production
capacity that sits idle waiting on the next order. It also puts the buyer at a disadvantage, since the
unused production capacity must be averaged into pricing or the supplier will go out of business.
A broad range of goods and services are impacted by this conundrum. Examples, to name a few,
include commercial print, construction services, direct mail, labels, machined parts, marketing materials,
product packaging, temporary staffing, textiles, transportation, trucking, and more.
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2. The Gindlesperger Method Page 3
Keeping in mind that specification-defined goods and services amount to a significant percentage of total
revenues (print alone amounts to 3% to 20% of total revenues depending on the industry), The
Gindlesperger Method reduces these procured costs by 25% to 42% beyond cost reductions already
gained through the use of spot bidding, auctions and negotiation -- traditional means of buying
specification-defined goods or services. Thus, when specification-defined goods and services amount to
5% of total revenues, a 25% cost reduction yields a savings of 1.25% of total revenues. When our
example of print is a greater portion of total revenues and/or cost reductions are deeper, the impact is
even more impressive. By adding these savings to the bottom line, stocks and valuations benefit.
Once suppliers are prequalified for a particular buyer and information about each is stored in a database,
job specifications are established and matched against the stored information to determine which
suppliers are capable of doing the job. The specifications are then sent to this subset of qualified
suppliers. Once a bid is received back by the buyer the patented method is complete. The key to the
success of the patent is that each supplier remains eligible to receive all bid opportunities on which the
supplier is qualified regardless of whether the supplier bids high, low, or not at all.
The Gindlesperger Method changes the process from one of a supplier determining pricing for the buyer,
based on what the supplier perceives to be the price the buyer is willing to pay, to a process by which the
supplier submits prices based on its own production needs with the buyer selecting the lowest price
among qualified suppliers. The buyer achieves optimal cost reductions, while revenues and profit for the
supplier increase. It is win-win for all involved. The scope of this patent is very broad and powerful in its
application to the automated procurement of any customized product or service.
The business method patent is not simply the computerizing of an existing method. Rather, it is the
invention of a novel process that had not been found anywhere in prior art when the patent application
covering this invention was filed by e-LYNXX Corporation on November 30, 1998. During the intervening
10 years, this approach to procurement has likely been implemented, and, if so, would now be covered by
the business method patent. e-LYNXX is interested in working with organizations that see licensing of
this method as an attractive proposition in the procurement of specification-defined goods and services.
A recent ruling by the U.S Federal Circuit Court of Appeals bolsters the e-LYNXX patent. In the case
called Bilski, the Court reaffirmed and elaborated on the U.S. Supreme Court's "machine or
transformation test" for patentability, which says that a process claim is patentable if it is either tied to a
particular machine or apparatus or otherwise transforms an article. The e-LYNXX claim language listed in
U.S. Patent No. 7,451,106 meets this test because it is tied to a specific machine or apparatus, namely a
computer-operated system. It is important to note that there is a difference between business method
patents that protect processes and other types of utility patents that require a technical contribution for
patentability. Business methods are patentable in the United States if they meet the "machine or
transformation test" articulated by the Bilski Court decision, the requirements of which are clearly met by
the e-LYNXX U.S. Patent No. 7,451,106.
At the present all of this is focused on the United States, but the licensing of this patent could benefit
many corporations or other organizations in Europe and around the world that are doing or planning to do
business in the United States. e-LYNXX is already finding that organizations in the United States are very
receptive to licensing a process that can bring such significant cost reduction benefits in an economy
where cost savings is now at a premium.
The scope of this patent is very broad and powerful in its application to the automated procurement of any
specification-defined product or service. Since 6 to 30 percent of a typical organization's operating
budget is spent on procured specification-defined goods and services, the potential impact of this patent
is enormous.
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3. The Gindlesperger Method Page 3
About William Gindlesperger
William Gindlesperger, founder, president and chief executive officer of e-
LYNXX Corporation, is a nationally recognized entrepreneur, inventor, author
and consultant in procurement and its positive impact on buyers through
contribution pricing and on suppliers through excess capacity utilization and
overhead absorption. He has testified before the U. S. Senate Committee on
Rules and Administration regarding government print and procurement policy.
He also has worked directly with numerous Congressional and Senatorial
members and staff and has advised Congress on the development,
operations and future of GPO print procurement and the federal print program
in general. Mr. Gindlesperger invented the methodology, known as The
Gindlesperger Method, that optimizes cost reduction in the procurement of
specification-defined goods and services. He was granted two separate
business method patents by the U. S. Patent Office, first on the competitive
procurement of print, and then on the competitive procurement of all customized goods and services. A
native of Chambersburg, Pa., Mr. Gindlesperger is a graduate of Dickinson College. He founded e-
LYNXX Corporation, and its predecessor ABC Advisors, Inc., in 1975.
About e-LYNXX Corporation
e-LYNXX Corporation (www.e-LYNXX.com) (888-876-5432) licenses its business method patent
(U. S. Patent No. 7,451,106 - known as The Gindlesperger Method) to buyers and third party
procurement system providers. e-LYNXX also works with print buyers to reduce their print costs through
its American Print Management division (www.americanprintmanagement.com) and with print suppliers
seeking to improve their revenues by winning government work through its Government Print
Management division (www.governmentprintmanagement.com). Founded in 1975 as ABC Advisors, e-
LYNXX Corporation is based in Chambersburg, PA 17201.
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