Goodyear and Exel Launch New Distribution Model

(COLUMBUS, Ohio, 13 August 2003) - Exel, the global leader in supply chain management, and The Goodyear Tire & Rubber Company, the world's largest tire company, today announced the successful implementation of a new distribution model at Goodyear's Medicine Hat, Alberta, Canada, campus.

The model, which will impact original equipment manufacturers (OEMs), reconfigures plant warehouse operations and transportation strategies for approximately 1.5 million mini-spare tires distributed annually throughout Canada and the United States.

As part of its Supply Chain Management (SCM) partnership with Goodyear, Exel has modified warehouse layout and design to increase space utilization and process control. In turn, the flow of finished goods from the warehouse to the customer will be enhanced.

"The plant warehouse and distribution model modifications are part of several initiatives of our new supply chain organization, which is transforming our supply chain to economically serve our customers and ensure deliveries occur on time," said Patrick Hurley, vice president, supply chain, Goodyear's North American Tire business unit.

Mike Clark, senior director of operations, Exel, said, "Through a strategic assessment of the Medicine Hat shipping patterns and warehouse operations, Exel developed a plan to maximize Goodyear's existing warehouse space. Enhancements such as this are a critical part of integrating Goodyear's supply chain from order to cash and adding value to the company's bottom line."

The SCM partnership also recently launched a Load Planning Center (LPC) at Goodyear's world headquarters in Akron, Ohio. The LPC will manage 1.5 million tires weekly for more than 20,000 of Goodyear's North American customers and 120 core carriers.

"Exel's expertise enables us to capitalize on efficiencies that will ultimately reduce costs and enhance customer service," said Hurley.

Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear employs more than 95,000 people worldwide, and more than 35,000 in its North American Tire operations.

Exel is a global leader in supply chain management, providing customer-focused solutions to a wide range of manufacturing and retail industries. More information is available at www.exel.com.

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