AR/AP/Purchasing/Materials Coordination and Improvement Meeting by Twt9j7z


									                                   Benteler Automotive – NAO Region
            Supply Chain Management - Supplier Requirements
The requirements listed below apply to all suppliers who deliver production material to our Benteler
Automotive plants located in the United States and Canada.

Bar Coding

    •   Must be labeled according to AIAG B10 Label Standard w/ Benteler documented
        specifications (see sample below) –or— receive pre-approval of submitted label
        (AIAG Primary Metals Label, Odette Label, etc.)
           – AIAG master label serial number on unitload must have a correlation within the supplier
               system to the container label serial number on each tote/box.
           – AIAG mixed load label, per AIAG standard used.

    •   The serial number shall be a unique number assigned by the supplier, not Benteler
        Automotive. Each shipping container or pack bearing a Shipping/Parts Identification label (i.e.
        AIAG) shall have a unique serial number. Each container, regardless of content or description,
        can then be differentiated from others. Suppliers shall be able to provide traceability
        information to Benteler, based upon this unique serial number, upon demand.

    •   All suppliers must be compliant prior to initial production shipment. Bar codes are
        scanned against supplier ASN upon receipt for receiving verification.

    •   Labels are to be submitted for pre-approval to NAO Central I.T. office.
           – Fax to:       (248) 364 7160
              –Email to:                                                      Formatted: Bullets and Numbering
           – Mail to:      2650 N. Opdyke Road Building B, Auburn Hills, MI 48326

Electronic Data Interchange

       AIAG   Standard transaction sets:
           –   830 Weekly/Monthly Forecast
           –   862 Daily Ship Requirement
           –   856 Advanced Shipping Notification (ASN)
           –   997 Functional Acknowledgement

Logistics         Version 3.0   08/04/11            Supply Chain Management – Supplier Requirements
       EDIFACT Standard transaction sets:
           – DELFOR Weekly/Monthly Forecast
           – DELJIT Daily Ship Requirement
           – DESADV Advanced Shipping Notification (ASN)
           – CONTRL Functional Acknowledgement

       Contact Joe Osmialowski (248) 364-7164 to begin testing- all suppliers must be live
        six weeks prior to production start-up.

       All suppliers are required to send an Advanced Shipping Notification (ASN)
        immediately upon shipment conveyance.

Supplier Delivery

       Delivery Performance Requirement – 100%

       Delivery performance shall be calculated as follows:
                    Shipping Instances Accurate                        48
                      Total Shipping Instances                         50            or   96%

       A shipping instance will be considered as a single product delivery request. For example, if a
        supplier has four products due to be delivered the same day and time; this equates to four
        shipping instances. In addition when there are multiple shipments due of the same product
        each day; this equates to multiple shipping instances. Example:

        Part #           Delivery Requirement                       Calculated Instances
        12345            02/15     -               1000                      1
        67892            02/15     -               2000                      1
        45672            02/15     - 5:00a          500                      1
        45672            02/15     - 3:00p          500                      1
        24689            02/15 -                    800                      1       Total Instances for 02/15 = 5

       The following criteria will be used as a Missed Shipping Instance:
            –    Delivery shortage communication without prior to carrier arrival
            –    Short shipment*
            –    Over shipment *
            –    Missed shipment on scheduled truck
            –    Detention
            –    Product must be received in FIFO methodology.
            –    Incorrect Packaging (without secondary pack approval for specific instance)
            –    Missing or incorrect ASN
            –    Missing or incorrect labeling
            –    Incorrect Documentation
            –    International Documents received late at Broker (more than 60 minutes after shipment)
                *Shipments will be considered a missed shipping instance unless quantity/date
                 relief is requested and approved prior to 24 hours of the requested shipment.

       All shipments quantities must be exact unless supplier has documentation from the plant
        Logistics Manager which details an allowable variance based upon the material commodity or
        level of inventory held. (example; coil steel.)

       Supplier delivery performance will be monitored at the plant level. If for any reason a Plant
        Logistics Manager feels that further action or intervention should be taken to improve
        performance; it will be requested at the plant level. This action may include an 8D request,
        supplier plant visit, invitation and/or requirement to meet with Benteler management staff,
        and/or request of assistance by the NAO Director of Logistics, NAO Director of Quality, or Vice
        President of Procurement with the purpose of ensuring appropriate action activities and
        resources are available to increase the level of performance.

Logistics           Version 3.0    08/04/11                  Supply Chain Management – Supplier Requirements
       A/B/C Supplier Designation:         A      >        95%
                                            B               90-94%
                                            C      <        90%

       Shipping Instance Disputes – Disputes against shipping violations will be accepted until 20 days
        after the performance level has been released to the supplier.

       Supplier will be subject to Receiving Discrepancy Report (RDR) charges as well as line penalties
        of pre-determined costs per hour for product shortages on offline operations as well as pre-
        determined costs per hour for line shutdowns. Costs range with work centers / labor associates
        affected as well as impact to our customer.

Shipment Identification Number
   1) Must be duplicated as invoice number -or- Must be included on the supplier invoice.
   2) SID number must be represented exactly as the ASN number.
   3) Barcode of Pack Slip/Shipper/SID number must be attached to Shipper/Pack Slip or in free
      space of Barcode Label. (Symbology Code 39 required; no data identifier).

Transportation Management

    •   Benteler operates a pre-designed, integrated network.
           – Incorporate all NAO facility’s transport requirements
           – Modes: Milk Run (MR), Truck Load (TL), Less than Truck Load (LTL)

    •   Window times are pre-determined at both the supplier and Benteler

    •   Parts verification is conducted at time of shipment for most parts. Our 3PL or their
        designated carrier will arrive with a copy of the supplier’s 862s for the shipment.
           – Comparison will be conducted with staged product to the 862s prior to loading
           – Any exception will immediately be communicated to Benteler for further instruction
           – Decision is made by Material Planner to hold the carrier or schedule an expedite; in
              either case, an AETC number is generated. When applicable, this number is used for
              supplier debit transaction coding.

    •   Expedite management – Benteler in coordination with our 3PL will organize all expedites
        from supplier regardless of who is responsible for the shipment cost in order to maintain control
        of the shipment. Material Planning will advise supplier at time of shipment when the supplier is
        being charged for the shipment. All AETC codes with a suffix of S, will be charged back to the

Border Crossing

       NAFTA Certificate of Origin must accompany initial shipment and emailed to Corporate Logistics
        at before December of each year.

       NAFTA Certificate of Origin must be updated on an annual basis.

       Commercial Invoice dollar value must match your Accounts Payable Invoice.

       Pre-clearance of product will be required; therefore, prior to each shipment a copy all
        paperwork is to be emailed or faxed to our Customs Broker- information available from
        Materials Manager.

       Paperwork only available after loading must be sent to Broker within 60 minutes of departure.

Logistics        Version 3.0   08/04/11                Supply Chain Management – Supplier Requirements
       All paperwork must be written in English. US Customs regulation.

       Cooperation is expected when requesting information and compliance for both C-TPAT
        (Customs Trade Partnership against Terrorism) and FTZ (Foreign Trade Zone) where applicable.

Supplier Assessment

       M.M.O.G (AIAG-M7) Materials Management Operating Guidelines self assessment and evidence
        manual is recommended. (Available from AIAG website.)

    New supplier audits and requests by Purchasing/STAs will be conducted on an as-needed basis.
    Critical delivery concerns will require an 8D as well as audit of this MMOG/LE document.
Logistics Agreement will be a generated by the Benteler facility and will become an interactive
agreement between the supplier and the plant.

Container Management
                                                                                                             From Suppliers

    •   Container Flow
                                                                                                                                            Receiving                          Quality Assurance



                                                                                                             To Suppliers
                                                                                                                                            Shipping                           Empty Staging

    •                                    is required for each material Data Sheet
        Packaging Specification Document Packaging Specificationsupplied.
            PART DIGITAL PHOTO (or Sketch)                       INTERIOR DESIGN DIGITAL PHOTO (or Sketch)                                                                    RUST PREVENTION METHOD (IF APPLIED)
                                                                                                                                                             OILING                                               OTHERS
                                                                                                                                                             VOLATILE CORROSION INHIBITOR (VCI)
                                                                                                                                                             SILICA-GEL (DESICCANT)
                                                                                                                                                       NO      BENTELER CONT         Weight     MATERIALS     DIMENSIONS                  PCS.
                                                                                                                                                                  Green Tote              2.2      Plastic                12 x 15 x 7.5    48
                                                                                                                                                                 Tote Bottom              42       Plastic                48 x 45 x 6      1
                                                                                                                                                                   Tote Lid               19.3     Plastic                48 x 45 x 2      1

                 DIMENSIONS (IN)             WEIGHT PER                                                                                                 5
               L       W         H            PIECE (LB)
               2       1         1               1.25
            CONTAINER PHOTO (or Sketch)                                                                                                                 7

                                                            1                                                                                           8




                                                                 BENTELER PART NUMBER                                                           PART NAME:
                                                                             12345                                                              SUPPLIER ADDRESS
            CONTAINER TYPE                                                                                                                                                       123 Anystreet
                    BENTELER Standard Returnable Container SUPPLIER NAME                                                                                                         Anytown, MI 49561
                    UNIQUE Returnable Container                          Acme
                    EXPENDABLE Container                   BENTELER VENDOR NUMBER                                                               CONTACT                  Jane Doe             PHONE    616-658-9845
            SHIPPING UNIT PHOTO (or Sketch)                                 101234                                                              EMAIL                  FAX      616-659-8953
                                                             PACKAGING                                 SHIPPING TYPE                              PCS /    WEIGHT PER CONTAINER       OTHER PARTS SHARING THIS CONTAINER
                                                              METHOD                                                                             CNTR        PART            GROSS    EXAMPLE: KITTED SKIDS OR SPLIT BINS
                                                                                                                                   INDIVIDUAL                                         1.)
                                                                     (R)eturnable        Containers on Pallet                       CONTAINER     30          37.5             39.7
                                                        3            (E)xpendable        Unit Load (Pallet Box Type)                  UNIT                                            2.)
                                                                                                                                      LOAD       1440        1800.0           1966.9
                                                                                    FOR SUPPLIER USE                                     FOR BENTELER PACKAGING ENGINEERING USE       3.)
                                                                 SIGNATURE OF AUTHORIZED REPRESENTATIVE:                           SIGNATURE OF AUTHORIZED REPRESENTATIVE:

                                                                 NAME OF SIGNATORY:             Jane Doe                           NAME OF SIGNATORY:                                              5.)
                                                                 TITLE:             Packaging Specialist                           TITLE:                                                          6.)

                                                                 DATE:                                                             DATE:                                                           7.)


    •   Container Identification including plastic, color-coded supplier identification will be applied to
        all Benteler owned returnable containers.

    •   Container Management
           – Shortage
                                                                                                                                                                               ACM RKF
                 – Contact the assigned Benteler Materials Planner.
                 – Documented procedure 30.10.300 will be followed to
                 address pre-authorized use of expendable containers.                                                                                                            VLC FRD
Logistics                  Version 3.0                          08/04/11                                                    Supply Chain Management – Supplier Requirements
            –   Damaged Container
                   – Do NOT fill it, advise Material Planner, place large scrap notice on container and
                       send back on normal shipment
            –   Receive another supplier’s container
                   – Do NOT fill it, advise Material Planner and send back on next normal return
                   – Phone Materials/Logistics Manager if chronic problem or if entire shipment is
                       another supplier’s containers
            –   Secondary Packaging design is the responsibility of the supplier and requires plant
                pre-approval prior to use.
            –   Supplier is responsible to ensure that ‘old’ labels have been removed prior to shipment.


       Supplier shall have 30 days from date of last supplier shipment to generate claim.

       Documentation submitted to plant Materials Manager with copy to Purchasing Agent should
            – Obsolescence Claim Form (contact Plant Materials/Logistics Manager)
            – Benteler Automotive Material Release with material and/or fabrication authorization
            – Applicable shipment history
            – Inventory on hand information (subject to Benteler Automotive audit)

Logistics         Version 3.0   08/04/11             Supply Chain Management – Supplier Requirements

To top