Advance Auto announces outsourcing; positions to be eliminated
Advance Auto is putting the brakes on its trucking fleet. The company announced Monday that it will outsource its over-the-road trucking to UPS Freight and Schneider National.
The move will eliminate about 270 positions company-wide by this summer, 45 here in the Roanoke Valley.
Advance says it hopes most of the eliminated employees can move to UPS Freight and Schneider.
A spokeswoman says the companies have already been interviewing candidates.
Here is the companies full news release:
ADVANCE AUTO PARTS ANNOUNCES FLEET CONTRACTS WITH UPS FREIGHT AND SCHNEIDER NATIONAL
ROANOKE, Va., February 9, 2009 - Advance Auto Parts, Inc., (NYSE: AAP), a leading automotive aftermarket retailer of parts, batteries, accessories, and maintenance items, today announced that the Company has signed an agreement to outsource the Company's over-the-road private fleet to UPS Freight and Schneider National, Inc. As Advance continues to turnaround and transform the company, it also continues to review every aspect of the business for areas that can be modified for increased efficiency and effectiveness. Such review is necessary to remain strong in an increasingly competitive industry.
After months of extensive analysis, the Company determined that outsourcing its private fleet operations will allow Advance to focus resources on achieving its key strategies, improve its ability to manage transportation as the Company grows and reduce costs. UPS Freight and Schneider are nationally recognized dedicated carriers. The outsourcing to UPS Freight and Schneider will be completed in a phased approach with a four month duration beginning in April 2009. This change will result in the elimination of approximately 270 positions across seven distribution centers. In Roanoke, approximately 45 full-time drivers and supporting hourly positions will be eliminated in June 2009.
UPS Freight and Schneider have expressed an interest in interviewing the Advance Team Members in order to consider them for possible positions within their companies. Advance hopes that many of the displaced Team Members will be able to transition to UPS Freight or Schneider. Team Members will also be provided severance benefits and local outplacement assistance.
This decision is not a reflection on the performance by the members of Advance's private fleet. The Team's service levels and safety records have been excellent, but the Company believes this is the best long-term business decision to continue to turnaround and transform their business.
