Advance Auto Parts

Direct Import Program

May 28,2008

Lisa SaundersVice President Transportation

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About Advance Auto Parts

Advance Auto Parts is a leading automotive aftermarket retailer of parts, accessories, batteries and maintenance items in the United States. Advance serves both the do-it-yourself and professional installer markets. The Company operates 3,291 stores in 40 states Puerto Rico and the Virgin Islands.

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Advance’s Direct Import Program

• Advance has been direct importing for 3 years– Accessories, batteries, maintenance

• The Federal Government holds the importer of record of hard parts accountable as the “manufacturer”

• The Federal Government holds the “manufacturer” responsible for defects, call backs and product liability on imported hard parts

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Advance’s Supply Chain Network

• Advance Auto has 8 Distribution CentersRoanoke, VA Kutztown, PAGastonia, NC Salina, KSThomson, GA Delaware, OHLakeland, FL Hazlehurst, MS

Deconsolidation Center – Savannah, GA

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Forwarder

• DHL– Developed an SOP

• Evergreen document that is updated frequently• Defines carrier routing by port and destination

– Conducted vendor workshops at origin to review SOP and booking procedures

– Log-Net is the supply chain visibility tool– CFS– Container stuffing software program to improve

container utilization

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Ocean Contracts

• Advance negotiates ocean contracts to coincide with our Financial year

• Anything is negotiable– Rates– Bunker– Peak Season Surcharge

• Book CY-CY or CY-Ramp

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Customs House Brokerage

• Expeditors International– Remote entry from the Norfolk, VA office– EI has offices at all ports to assist with Customs

issues, if necessary– 10+2 – Importer Security Filing

• Will transmit data on EDI 850– C-TPat – Working with Tradewin to accomplish

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Dray

• Seven R Transportation– One stop shop for dray carriers at all ports or ramps– Seven R manages equipment based on information

in Log-Net– Seven R developed relationships with Advance’s

Receiving Departments – Seven R has a great working relationship with

Expeditors– Seven R monitors Per Diem and Demurrage to help

Advance Auto save $$