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JC Penney – APL Logistics Relationship 24+ years

APL Logistics and J.C. Penney. JC Penney – APL Logistics Relationship 24+ years APL Logistics Performance 8/06 - 99.63% ASN Timeliness, 98.64% ASN Accuracy, 9/06 - 99.21% ASN Timeliness, 97.26% New Origin Starts All Central America Origins in 2001

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JC Penney – APL Logistics Relationship 24+ years

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  1. APL Logistics and J.C. Penney JC Penney – APL Logistics Relationship 24+ years APL Logistics Performance 8/06 -99.63% ASN Timeliness, 98.64% ASN Accuracy, 9/06 -99.21%ASN Timeliness, 97.26% New Origin Starts All Central America Origins in 2001 Vendor Seminar / Trade Compliance Impact onImproved Vendor Performance, Docs verification, VCP Reports Information Flow Management EMF- to edit software providers, Tradeweave; Cleartrack, AIR ASN program Documentation Flow Management Improved Vendor Performance, VCP Reports, E-Docs Services That Made A Difference  Vendor Compliance Program  Vender Management Multi Country Consolidation  E-Docs ASNMgmt/Air ASM Mgmt Interaction with JCP Buying officesTWN, HKG, Shanghai, New Delhi, Mexico

  2. How We Manage JCP Today • Danny Goh/David Noe– Executive Sponsors • Dedicated Resources • Dedicated APLL On-site – Jamie Price • Margie Reeder/Kiryun Lee, Operations/Customer Support • Mary Videtich- / Tuyet Quach-Che / Frank Newhouse • APLL Account Teams at Asia/Cam 61 H/C’s (53 FTE’s) • APLL Asia Account Manager – Tracy Wong, AME • Evelyn Boh, AME • Vera Wu / Annie Lin, Greater China • Chris McGill/Pat Mullally – APL, North America • Deb Farkas/Gary Griffith – APLL, North America • George Hearn, APL/APLL MD, Southern Region • Robin Kirby, NAM customer support • Tony Zasimovich, VP International Services • Rajiv Saxena- Senior Director Engineering , APL Logistics

  3. Joint Highlights • MCC • Bar Code Scanning in late 90’s • Rockport ERP Implementation and support • Design and Development of EMF to support JCP’s ASN Project with Software Providers • Development of XML PO File - 2002 • Logistics around Sea Lock Bar Program • Successful on-boarding of Central America. 2001—”Live” within 8 weeks • 2004- Proposed and implemented EDocs Scanning for all CAM shipments • E-Booking – 2006 • 2006 Full E-Docs roll-out to all 35 origin FOB points by late June 2006 • Placement of Strategic On-site to represent NOL Issues • Analysis and Planning of Dadri Consolidation in India • 11/2006-Engineering Review of JCP’s Supply Chain

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