Business Issues Addressed– Value Delivered Wholesale Distribution Services

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About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 140 countries. With access to the deep intellectual capital of approximately 135,000 people worldwide, Deloitte delivers services in four professional areas, audit, tax, consulting and financial advisory services, and serves more than 80 percent of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte”, “Deloitte & Touche”, “Deloitte Touche Tohmatsu” or other related names.

In the United States, Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP, and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nation’s leading professional services firms, providing audit, tax, consulting, and financial advisory services through nearly 40,000 people in more than 90 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the U.S. member firm’s Web site at www.deloitte.com

Copyright © 2007 Deloitte Development LLC. All rights reserved.

Our organization at a glance

Deloitte Touche Tohmatsu (DTT) Member Firms• Approximately 135,000 people• More than 70 member firms in nearly 150 countries• Fiscal 2006 aggregate revenues of over US$20 billion, marking the 13th consecutive year of aggregate revenue growth• Serves nearly 750 companies with sales or assets over US$1 billion

Deloitte & Touche USA LLP and its subsidiaries• Nearly 40,000 people• Offices in more than 90 cities• Fiscal 2006 revenues of $8.7 billion• Working Mother magazine honored Deloitte & Touche USA LLP as one of the “100 Best Companies for Working Mothers”

for 2006—the 13th consecutive year.• For the eighth year, Deloitte & Touche USA LLP has been named to Fortune magazine’s prestigious list of “100 Best

Companies to Work For” for 2007. This annual survey has become the national benchmark for excellence in workplace and human resources practices.

• Deloitte & Touche USA LLP has been named to Training magazine’s 2005 “Training Top 100” list, a national survey of organizations that excel at human capital development. This marks our fourth consecutive top-10 ranking. We ranked No. 6 and were one of eight honorees to receive a Best Practices distinction for an innovative training and development program.

Deloitte Consulting LLP: Wholesale & Distribution Services• Cross-industry Wholesale & Distribution specialized knowledge • Distribution Value Map™ • Wholesale & Distribution Center of Excellence—developed exclusively with Graybar Electric Company to showcase ERP• Exclusive relationship with National Association of Wholesalers-Distributors (NAW)

For more information:

Visit Deloitte.com

To learn more about our practice, visit us online at www.deloitte.com/us/ConsumerBusiness. Here you can access our complimentary Dbriefs webcast series, Deloitte Insights podcast program, innovative and practical industry research, and a lot more about the issues facing consumer businesses from some of the industry’s most experienced minds.

Neil GholsonPrincipal Deloitte Consulting LLPGlobal Segment Leader, Wholesale Distribution+1 312 486 3412 ngholson@deloitte.com

Mark SchloegelDirectorDeloitte Consulting LLP +1 312 486 2337 mschloegel@deloitte.com

Patrick ConroyVice Chairman & National Managing PrincipalDeloitte & Touche USA LLPConsumer Business Industries +1 317 656 2400 pconroy@deloitte.com

Bruce Westbrook Principal Deloitte Consulting LLPU.S. Consulting Leader Consumer Business Industries+1 404 631 2950bwestbrook@deloitte.com

When experience counts, count on Deloitte ConsultingWe know your industry. Deloitte Consulting LLP (Deloitte Consulting) is among the nation’s leading professional services organizations with dedicated wholesale distribution professionals.

Executable strategy and operations improvements:• Deloitte Consulting works with distribution companies to help

them in their efforts to refresh their strategic priorities and improve operations to deliver increased shareholder value.

• Deloitte Consulting’s Distribution Value Map™ framework and related toolset helps distributors to focus implementation priorities and investments where they can have the biggest impact.

• Experienced practitioners team with your leaders to help them apply innovative practices from within distribution and across industry segments.

Technology solutions for wholesale distribution: • Deloitte Consulting has provided enterprise-wide ERP

implementation consulting services in wholesale distribution. We understand key aspects of ERP including, implementation strategy (big bang vs. phased), team organization, project governance, blueprinting, configuration, integration test, cutover, implementation and optimization. Deloitte Consulting understands “benefits realization,” and has helped our clients realize benefits associated with ERP and Enterprise Transformation projects.

• Deloitte Consulting teamed with SAP to develop the wholesale distribution “best practices” database, and we have provided consulting services in support of the implementation of a full-suite SAP Wholesale Distribution Solution.

• Enterprise Value Delivery (EVD) is Deloitte Consulting’s global project methodology comprised of deliverables and tools targeted for Enterprise Applications (EA) projects. Our scalable, configurable EVD approach is designed to help our clients achieve more value while more effectively managing risk on ERP implementation projects.

• We understand the “performance dips,” stabilization, and optimization phases of ERP projects. We can help you in your efforts to set realistic expectations for these large complex projects.

Deloitte & Touche USA LLP’s (Deloitte) Consumer Business industry focus is composed of more than 6,000 professionals who provide a broad range of auditing, accounting, tax, and management consulting services across all segments of the industry — from retailers and consumer product manufacturers to wholesalers and consumer service providers.

As the trusted business advisor to many of the industry’s leading companies, Deloitte’s market share is nearly double that of any other organization. In the United States, through its subsidiaries, Deloitte provides audit, tax, financial advisory or management consulting services to 75% of the Fortune 500 Consumer Business Companies. 1

Deloitte currently provides services (audit, tax, financial advisory or management consulting) to:• 60% of the Fortune 500 Wholesale Distributors 1

• Over 70% of the Fortune 500 Retailers 1

• Over 80% of the Fortune 500 Personal & Household Goods Companies 1

• Over 80% of the Fortune 500 Food & Beverage Companies 1

• 80% of the Fortune 500 Apparel & Textile Companies 1

1Source: Fortune 500, April 2006

Sample representative wholesale distribution clients:• Amerisource Bergen • Graybar• Arrow • Handleman• Avnet • Hughes Supply• Core Mark • Navarre

Deloitte & Touche USA LLP’s (Deloitte) Consumer Business industry

NAW member and DREF fellowship: Deloitte Consulting’s extensive multi-year relationship with the National Association of Wholesaler-Distributors (NAW) has helped keep us at the forefront of the industry. This relationship has helped us develop thought leadership, management

Experience summaries and value deliveredLarge ERP implementation project profile: • Deloitte Consulting LLP was selected and engaged by a large

national Electrical Distributor to help them with their efforts to achieve the goal of significant inventory performance, productivity, and customer service improvements. We were chosen to help them implement SAP, APO, SAP Portals, SAP BW and SAP CRM for more than 250 distribution centers, converting more than 500,000 material records and enhancing the capabilities and skills of more than 8,000 users.

The implementation strategy was to go “big bang” for planning and forecasting, purchasing, finance, and HR. A phased roll-out approach was used for the inventory management, final assembly, shipping process, and sales order management functional areas. Results: All client goals were achieved and their expectations were exceeded. In fact, most recent financial results clearly show the positive impact of the project now that the entire organization is working with real-time financial information. What used to take days, now takes hours to accomplish.

• A leading multinational distribution company with a pending ERP upgrade was interested in simplifying its internal processes to better match ERP capabilities, reduce costs, enhance its revenues and better position itself competitively in the marketplace. Sponsored by the president, the challenge was to develop a roadmap that would get the client “best of breed” processes and technology enablers to meet their business objectives. Deloitte Consulting helped them with their efforts. Results: Identified revenue improvement and cost-reduction opportunities that can drive millions of dollars to the bottom line.

• A number of fast-growing regional distributors have asked Deloitte Consulting to facilitate strategic planning efforts designed to align company leadership with a focused set of achievable, strategic goals and initiatives. Results: Strategic priorities refreshed and implementation roadmap agreed upon by top management team.

• A multi-billion dollar distribution company engaged Deloitte Consulting to help them in their efforts to evaluate and prioritize cost-reduction opportunities. Results: Strategic time-phased initiatives agreed upon by executives that will drive significant margin improvement; organization structure and governance enhancements in place.

Strategic service offerings designed specifically for distribution companies

Thought leadershipTo keep ahead of industry trends, Deloitte Consulting and Deloitte Research LP regularly publish thought leadership that provides information to further the understanding of this ever-changing industry. With a dedicated team of professionals focused on research, analysis, and reporting, Deloitte Consulting has a bank of insightful materials that provides a framework for practical and visionary solutions. Some recent publications and initiatives include the following:

• Driving Growth and Shareholder Value: The Distribution Value Map™ (DVM)

Deloitte Consulting, sponsored by NAW-DREF, developed this first-of-its-kind book with insight to key industry challenges and opportunities. The DVM is a framework that can be used by distributors to help them focus their efforts on improving their strategy and tactical performance by working the levers of shareholder value: Revenue Growth, Operating Margin, Asset Efficiency and Management Expectations. The book and related value maps provide deep industry insights, case studies, real-life scenarios, and practical applications in an easy-to-use format.

• Live Online Education Dbriefs webcasts featuring case studies of distribution companies putting the DVM framework in action to drive performance improvement.

• Deloitte Consulting/NAW Wholesale Distribution Benchmark Report Presented in two versions: for $1B+ Distributors and for Mid-Market Distributors, the results provided participants with a guideline for assessing their individual company’s performance against similar peer groups within and across lines of trade

• Understanding RFID Challenges and Risks Wholesale distributors’ greatest risk is doing nothing in the face of change. Determining your company’s “tipping point” and conducting a business case are critical first steps in understanding the right time – if ever – to embrace RFID.

Service offerings provided by Deloitte Consulting LLP:

Consumer-Driven Healthcare

Corporate Real Estate Strategies

Cost to Serve

Direct to Consumer Marketing

Distribution Value Maps

Enterprise Resource Planning (ERP) Systems

Lean Warehousing

Radio Frequency Identification (RFID)

Shared Services

Supply Chain Strategy

Trade Promotions Management

Working Capital Reduction

Service offerings provided by Deloitte & Touche LLP

Enterprise Risk Services

Internal Audit

Service offerings provided by Deloitte Tax LLP

International Tax

Multistate Tax

Integrated service offerings:

Enterprise Cost Reduction (ECR)

Enterprise Portal Offering (EPO)

Global Employer Rewards

M&A Transaction Services

M&A Integration

Revenue Enhancement

Sarbanes-Oxley Improvement

Sarbanes-Oxley Readiness

Sarbanes-Oxley Sustained Compliance

• The Yangtze River Transportation Corridor Of the world’s greatest rivers, none has greater potential for commercial development than the Yangtze, which flows through some of China’s – and the world’s – most populous and productive regions. Options for shipping containers along a well-integrated network of rail, road, and river transport will have significant impact on the global economy in the next 5-10 years. Foreign investments now being made in hard and soft infrastructure are setting the stage for this intermodal revolution.

• Co-founded distribution industry roundtable forums with NAW. Deloitte Consulting sponsors seven industry roundtables focused on discussing industry issues of importance to C-suite and HR executives. Beginning with a focus on IT executives, these leading networking and educational events have expanded and include featured events for financial, HR, and operations executives.

• Distribution industry conference presentations including the following topics: Driving Growth and Shareholder Value; Distribution Industry Trends; The Red-Hot M&A Marketplace; and Benchmarking.

With a dedicated team of professionals focused on research, analysis, and reporting, Deloitte Consulting has a bank of insightful materials that provides a framework for both practical and visionary solutions.

The Distribution Value Map TM

Deloitte Consulting LLP was selected and engaged by a large national Electrical Distributor to help them with their efforts to achieve the goal of significant inventory performance, productivity, and customer service improvements.

insights and specific services applicable across all lines of trade. Neil Gholson, Principal, Deloitte Consulting LLP, and Wholesale Distribution Services Leader, is a Distribution Research and Education Foundation (DREF) Fellow. Neil is an example of our organization’s thought leadership.

Multidisciplinary (MDP) approach. Deloitte Consulting, with our affiliates that provide audit, tax, risk assurance, and financial advisory services, is in a “category of one.” Through our multidisciplinary approach, our methodology and tools are designed to facilitate and integrate this breadth of skills and perspective.

Lines of trade. Deloitte Consulting’s experienced practitioners bring insight from working with distributors and serving clients across many industry sectors including, but not limited to, the following:

• Apparel/Textiles• Beverages • Construction/Housing• Electrical• Electronics/Computing• Paper/Stationary/Printing• Industrial Parts/Equipment/Supplies

• Pharmaceutical/Medical• Food and Foodservice• High-Tech• Horticultural• MRO• Oil/Gas/Chemicals

To obtain a copy of the Distribution Value Map, visit www.naw.org or contact the National Association of Wholesaler-Distributors at 1725 K Street, NW, Washington, DC 20006; phone: 202-872-0885.