Welcome to SEAL Introduction For DC Leaders to use when introducing SEAL & Standard Work into their DCs Welcome to SEAL Introduction ©2017 ATD. Confidential. Do not distribute without permission.

ATD Supply Chain Objective Our customers are building their businesses in a heavily commoditized world. And at ATD, we’re here to help make them successful and give them a significant competitive edge. This means helping our customers grow their business in the most efficient way possible. We are ATD’s Supply Chain and we have the critical role of ensuring that our products get into our customers hands accurately and on time. Our objective is to be known as the most customer centric distributor that the industry has ever seen. And to deliver on that promise, we will need to be driven by a powerful new mindset with consistent and agile key practices, expectations, and measurements to help us get there and stay there. It’s exciting it is to be in a position like we’re in. To be in a position to help our customer’s business be successful – because make no mistake – that’s why we’re here. (Read the top paragraph). We are the ATD Supply Chain. And like it says here, when you think about the role that we have in helping our customer’s business be successful – then you have to consider what that really means. And it means that we need to be the best at ensuring that our tires get into the hands of our customers accurately and on time. Our objective is to be known as the most customer centric distributor that the industry has ever seen – and to deliver on that promise, we have some work to do. And again, that’s where we come in together, to get it started.

Transformation Mission & Objectives What does it mean to drive a great culture and performance in our supply chain? KEY DRIVERS OF CONSISTENT PERFORMANCE: Our Objective: 1 Activate and embed consistent practices across every role at every DC. 2 Establish a clear understanding of what it means to build and lead a performance based and highly accountable team and culture. 3 Drive consistency between US and Canada – We are “One ATD” because we are stronger together. 4 Institutionalize a communication platform to drive awareness and activation of our new mindset, expectations, key practices and processes. In order to operationalize ATD’s vision to become known as the most customer centric distributor that the industry has ever seen, we must drive consistent standards of excellence so that the entire supply chain has a shared vision to succeed together, to foster a great culture and to serve our customers with excellence. To deliver on the objective to be the most centric distributor that the industry has ever seen like it says here on the left side - we have some work to do. we have to nail 4 key drivers. This is how we’re going to drive consistent performance. (Read the 4 key drivers)

The standard of excellence that we create in our DC for continuous improvement. It’s about the accountability we have as leaders to reach our measures that lead to customer satisfaction and continuous improvement. Getting to the next level isn’t something that’s going to happen casually or overnight. Because we’re talking about transformation. That means we have to focus on 2 things. One is the standard of excellence that we create in our DC for continuous improvement – today, that isn’t consistent across all of our North American operations – but it needs to be. The next thing that’s an important focus is accountability. If we are to become ONE ATD, it’s going to happen one DC at a time. And that means that accountability has to begin with our DC leaders. Because they are accountable when it comes to reaching the measures that lead to customer satisfaction and continuous improvement. These 3 themes – these 3 words...keep coming up. A standard of excellence. Accountability. Leadership.

SEEKING EXCELLENCE, ACCOUNTABILTY & LEADERSHIP Welcome To SEAL - Our New Operating System SEEKING EXCELLENCE, ACCOUNTABILTY & LEADERSHIP And it’s these words that make up this movement that we are calling SEAL. Seeking excellence, accountability and leadership. And ATD SEAL is going to be the platform that drives the operating system of the New ATD Supply Chain. And it’s inspired by the mindset of one of the most disciplined divisions of the US military. The Navy SEALS. This is the operating system that is going to help our supply chain become the most customer centric distributor that the industry has ever seen. The mindset that is going to be required to become the most customer centric distributor that the industry has ever seen. Inspired by the mindset of one of the most disciplined divisions of the US military.

SUPPLY CHAIN STRATEGIC ROADMAP To be known as the most customer centric distributor that the industry has ever seen Customer-Centered and Culture – Foundation for Current and Future Success Customer-Centered Culture – Foundation for Current and Future Success That mission has fueled our journey at every stop – of course it starts with the north star – and it won’t stop until we standardize and scale our mission to every one of our 142 DCs...and to 3500

Welcome to SEAL STANDARD WORK The disciplines to drive excellence into your daily work and mindset from warehouse to delivery. As your DC Leader, I couldn’t be more excited to begin the process of sharing the strategy, activities and tools that are now driving our daily activities. Over the next months, we will be learning our new Operating System and will begin the process of continuous improvement. Together, we will work hard to implement this standard work and get better and better each day. It’s going to be an exciting journey.... (Let them know what to expect next and lay out the process of how you are going to share the SW with them).