1. Welcome To Rite Aid Corporation Vendor Seminar NYK Logistics Session June 17, 2009 (Hong Kong) & June 18, 2009 (Shenzhen)

2. AGENDA Introduction of NYK Group & NYK Logistics
NYK Logistics Role and Responsibilities
Standard Operation Procedures
eBooking System Demo
Q&A

3. Introduction of NYK Group Nippon Yusen Kaisha (NYK)
Largest Japanese Shipping Company with 120 years history
Annual Turnover about USD 25.7 billion for year ended March 31, 2008
Ranked 391th of World’s Largest Corporations by magazine’s 2007 Fortune Global 500 in terms of operating incomes for 2006
Stock listed in stock exchanges in Tokyo, Osaka, Nagoya and Frankfurt.

4. Overview of NYK Group Business Breakdown:
Bulk Shipping %
Line Trade %
Logistics %
Terminal Harbour Transportation 6%
Air Cargo Transportation 4%
Cruise 2%
Real Estate %
Others 8%
The NYK Group operates approximately 777 (as of March 31, 2008) major ocean vessels as well as planes, trains and trucking fleets.
262 office locations, in 32 countries, warehouses in every continent and harbour operations in Asia, North America and Europe

5. International Network Solutions Division
Global Company covering 161 cities and ports in 66 countries
INSD was formerly named as OCS; INSD Hong Kong was established in 2004
INSD Hong Kong being the INSD Global Headquarters
3 Operation Hubs – Hong Kong, London, Secaucus
Sales & Customer Service Offices in Secaucus, NJ; London, UK

6. INSD HK – Dedicated Service Team for
Rite Aid Corporation
Local Contacts for Hong Kong
Operational Hub and Communication Window with Rite Aid for Asia Origins
Global Service Quality Control Center for all Rite Aid Origins
Internal transfer from current teams.
Kevin has been with the company for 9 years
Christine with the company for 8 years
Karen with the company for 2 years.
They oNYKLy have to understand the specific customers requirement. So, the transition will be smooth.
New hire to replace them in the current team.

7. Contact List for NYK Logistics
Internal transfer from current teams.
Kevin has been with the company for 9 years
Christine with the company for 8 years
Karen with the company for 2 years.
They oNYKLy have to understand the specific customers requirement. So, the transition will be smooth.
New hire to replace them in the current team.

8. Role and Responsibilities
NYK Logistics
Role and Responsibilities

9. Role and Responsibilities
INSD
Role and Responsibilities
We work according to the instructions of Rite Aid.
We book with Rite Aid’s nominated carrier.
We are Neutral.
We measure performance of all parties in the Rite Aid's supply chain, including ourselves.

10. Role and Responsibilities
INSD
Role and Responsibilities
Supervision of vendor on time & accurate delivery.
Coordination of FCL booking.
Coordination of LCL cargo.
Handling of all necessary documentation received from vendors.
Preparation of documentation for Sea waybill / Bill of Lading.
Collection of all local charges.
Issuance of a Forwarder’s Cargo Receipt (FCR), to the vendors, after ALL documents and local charges have been received.

11. Standard Operation Procedure
for Vendors

12. Operation Flow (Before Sailing)
SHIPPER
NYKL
RITE AID
Shipper send booking via ebooking
Check information vs PO and Input shipping order information to system
YES NO
(CY) Shipper arrange empty container pick up, stuffing, and deliver laden container to terminal
(CFS) Shipper deliver cargo to our warehouse within assigned delivery date
Rite Aid accept shipment
Discrepancy NO
YES
Release carrier booking confirmation (CY) or shipping order number (CFS)
Advise shipper to revise those discrepancies and place booking again

13. Operation Flow (Before Sailing)
SHIPPER
NYKL
RITE AID
Submit container load plan before SI cut-off
Data input container load plan information in iSMS
Prepare B/L sample to carrier

14. Operation Flow (After Sailing)
RITE AID BROKER
SHIPPER
NYKL
Receive shipping advice to
prepare
customs clearance
Prepare and send shipping advice to broker (within 3 days after sailing)
Submit complete set of commercial document &
all local charges
(Within 3 days after sailing)
Prepare FCR, release FCR to shipper & transmit Proof of Delivery data to TradeCard
Scan document to broker within 5 days after sailing (SWB, full set commercial document and container manifest)
Receive document for
clearance

15. Purpose: ensure adequate space and equipment from carrier
Booking Requirements
Booking Timeline:
Vendors must submit bookings via NYKL
eBooking system, and complete accurate 10+2
Data elements within the fourteen (14) days of
Booking Window.
West Coast DCs : PO Arrival Date minus days
East Coast DCs : PO Arrival Date minus days
Purpose: ensure adequate space and equipment from carrier

16. Booking Management
To ensure vendor place on time, NYKL will proactively send Po expediting (auto- notice) to vendors 21 days prior to the EDD (Early Delivery Date)
If laden containers fails to be delivered to terminal on the Last Delivery Date (LDD), NYKL will send a non-delivery notice to vendor

17. On-time Shipment Full Container Loaded Cargoes (CY)
Laden container delivered to Carrier’s Terminal
within 14 days Delivery Window
Less-than-container Loaded Cargoes (CFS)
CFS Cargo delivered to NYKL Warehouse
within Delivery Window.

18. Booking Information Information required for bookings:
Shipper Name / Address / Contact person / phone, address/ fax number
Consignee Name / Address
Notify Party
Port of Loading
Destination
Rite Aid PO Number & Rite Aid Sku#
Shipping Marks

19. Booking Information
Description of Merchandise (Precise cargo description: generic description such as “General Cargo”, “Freight All Kind” is not allowed
Number of Cartons / Piece Count Quantities per Sku#
Weight (kgs) and Volume (cbm) per Sku#
Container size and number of container requested (Factory load cargo)
Estimated Cargo Ready Date (CFS): cargo available to be delivered to NYKL warehouse or dedicated NVOCC facility
Estimated Cargo Ready date (CY) : laden container delivered to carrier CY
1. Production completed
2. Inspection passed
CY : Container stuffing completed Laden container delivered to carrier CY
CFS: Cargo can be delivered to NYKL warehouse or dedicated NVOCC facility
Rite Aid’s
Definition of
Cargo Ready Date

20. PO Verification
NYKL needs to make sure all bookings comply with Rite Aid PO info :
PO number
Sku number
Cargo delivered within Delivery Window
Quantities
FOB point
Can meet minimum load requirement (CY)
All discrepancies must be approved by Rite Aid

21. Sample of Shipping Order

22. Sample of Carrier Booking Confirmation
Carrier booking number
SAMPLE
NYKL CLP cut-off time

23. Factory Load Requirements
Rite Aid Container Load Standard:
20’ Dry Min 27 cbm Max 16,326 kgs
40’ Dry Min 55 cbm Max 18,144 kgs
40‘ High Cube Min 66 cbm Max 19,051 kgs
45‘ Dry Min 76 cbm Max 19,507 kgs
Any loading measurement not meeting the container utilization requirements or any possibility of overweight must be report to Rite Aid before empty container collection
If vendor cannot provide SRA after delivering the laden container, vendor will be responsible for any charges incurred in holding the container at origin.

24. Factory Load Requirements
Load Merchandise by Destination, by PO number and by Sku number.
A Purchase Order should never be split into two containers unless the volume exceeds one container.
One Sample of each sku should be placed at the tail of each container for US Customs inspection
Must submit Container Loading Plan (CLP) to NYKL on/before NYKL CLP cut-off time after cargo stuffing with complete and accurate information.
If vendor cannot provide SRA after delivering the laden container, vendor will be responsible for any charges incurred in holding the container at origin.

25. Container Loading Plan (CLP) Requirements for Factory Load
CLP Information:
Container number
Seal Number
Size of Container
Port of Loading
Final Destination
Container Arrival Date at Terminal
Vessel Name/Voyage Number
Ocean Carrier
Carrier Booking Number
Rite Aid PO & Sku #
Precise cargo description: generic description such as “General Cargo”, “Freight All Kind” is not allowed
Carton & Piece Quantity (lowest visible packing)
Weight & CBM
If vendor cannot provide SRA after delivering the laden container, vendor will be responsible for any charges incurred in holding the container at origin.

26. Container Loading Plan Sample Submit to NYKL on/before
NYKL CLP cut-off time

27. CFS Cargo Delivery Requirement
Vendors need to present NYKL Shipping Order for cargo delivery
Cargo must be delivered to NYKL warehouse by the CFS cut-off stated on the booking confirmation sheet
Cargo must be sorted by P.O. and by Sku when cargo arriving to NYKL warehouse
Cargo receiving date is counted based on the complete booked carton quantity is received, together with in sound condition

28. Documentation Requirements
Vendor should submit NYKL Complete and Accurate documents within 3 business days after vessel sailing, 1 original copy
The required basic documents :
Commercial Invoice
Packing List
Certificate of Origin (Form A)
Inspection Certificate
Textile Declaration (if applicable)
Export Visa (if required)
Others applicable requirements

29. Documentation Requirements
Forwarder Cargo Receipt (FCR) will be released to vendor upon NYKL receiving all required documents and local charges from vendors.
If vendor fails to submit documents to NYKL within 3 business days after vessel sailing, NYKL will issue Document Delay Notice to vendor.

30. Vendors Responsibilities
Timely delivery of products and documentation
Accuracy of information
Condition of cartons
Proper packaging to avoid damages

31. Forwarders’ Cargo Receipt (FCR)

32. Forwarders’ Cargo Receipt (FCR) Issuance
FCR draft will be available in the eBooking for review or checking once full set of commercial documents with cargo is received whichever later.
Forwarders’ Cargo Receipt (FCR) will be released to vendor upon receiving confirmed draft FCR copy, required sets of document and all local charges from vendor.
NYKL will issue one (1) Original FCR per Vendor’s Commercial Invoice.
Once the FCR has been issued, NYKL will transmit the Proof of Delivery
to TradeCard.

33. Upper part of FCR SAMPLE NOTIFY PARTY: NYK Logisitics France
Parc de Chesnes - Quatre routes
7, rue des quatre routes-BP 35
38291 St Quentin Fallavier Cedex
France
SAMPLE

34. Lower part of FCR
SAMPLE

35. NYK Logistics
eBooking System

36. NYK Logistics e-Booking

37. eBooking Benefits for Vendors
Avoid delay caused by inaccessible fax transmission
Higher visibility in booking status, e.g. booking approval status.
Minimize typo errors as there is alert in ebooking system
Reduce Paper Usage
Avoid back and forth clarification for unclear or missing information
Minimize redundant input e.g. Cargo description can be downloaded from PO transmission
Enhanced Reporting Capabilities

38. How to Apply for Login Go to NYK Logistics e-Booking web-site
Download Registration Form and save to your own PC.
Fill in the form and to :
Login ID and password will be informed within 1 working day by .

39. e-Booking Registration Form
1 administrative user and up to 3 operation user logins can be requested per vendor / factory.
Administrative user has the right to maintain user profile (name, password etc) of all login ID and define template.

40. First time Login:
Vendors are required to double check whether the information of the Users is correct.

41. e-Booking Functions On-line Booking by Rite Aid PO No.
Print out Shipping Order
For you to keep copy
For cargo delivery to CFS warehouse
Load Plan Submission
For CY container only
View Rite Aid’s min loading requirement online.
To provide Container and Loading information for S/I submission.
Real-time Tracking
View booking status, FCR draft content, B/L# and sailing information online
10+2 enhancement
Create Service Provider for vendor to input manufacturer, country of origin, container stuffer & container stuffing location
Template Define
Reduce time to enter Ship Marks & Merchandise Description
Useful Information
eBooking manual
Vendor Guideline

42. On-line Booking More flexible to submit booking 7 days a week.
Improve accuracy by real-time validation on PO and Sku #
Allow booking to be made on Rite Aid’s PO No.
Save time to enter item details.
Reduce processing time.

43. Shipping Order Let you to keep your own copy.
Shows NYKL Shipping Order No. if booking is confirmed.
The printed copy of Shipping Order must carry “NYKL Shipping Order No.” for cargo delivery to CFS warehouse.
PDF format

44. Submit Load Plan View Rite Aid min loading requirements.
Container No. check digit validation.
Eliminate redundant typing and speed up SI submission.

45. Real Time Tracking Booking status. Shipment & Sailing info
View FCR (draft) content

46. 10+2 Enhancement
There is a tab (Service Provider) in the top menu to let vendor input manufacturer, stuffer, stuffing location as a template :

47. Support On-line Help screen for all functions.
Contact NYK Logistics local office

48. eBooking System Demo

49. Question & Answer

50. Frequently Asked Questions
Which login (administrative user login / operation login) should vendor used to create the eBookings ?
Depends. The administrative user can see all the bookings created and a operation user can only see the bookings created by herself.
How long will NYKL confirm the eBookings submitted ?
CFS：1 working day if no discrepancy and no Rite Aid’s approval is required.
CY : Depends on when the nominated carrier by Rite Aid release bookings to NYKL (NYKL will closely follow up with carriers and report carriers’ performance to Rite Aid constantly.)

51. Frequently Asked Questions
3. Is it allowed to submit 1 eBooking with many POs ?
Yes, if the final destination & estimate cargo delivery for the POs are the same, they can be submitted under 1 eBooking.
Note : 1 Po = 1 Commercial Invoice = 1 Packing List = 1 NYKL FCR
4. Is it possible to release FCR in Hong Kong for cargo out of Xiamen and how much does it cost ?
Yes, vendor only need to declare the FCR release location at the time of booking, and pay “Offshore FCR release fee” USD30 per FCR for such arrangement.

52. Frequently Asked Questions
5. Is it possible to print the Original FCR from the eBooking system ?
No. Only non-negotiable copy of FCR can be printed for supplier checking. Original FCR will be released once draft FCR is confirmed, documents are submitted and local charges are paid.
When the vendor can submit the e-booking to NYKL ?
Based on the instruction from Rite Aid, NYKL can only receive the official booking from vendor on/ after 07/01/2009.

53. Rite Aid Vendors Seminar Thank you all for attending.
We hope this meeting has been informative
& beneficial
Thank you all for attending.