logistics standard m 3399 - man se · page 3 m 3399 : 2012-09 1 scope and purpose this logistics...

MAN Truck & Bus AG WORKS STANDARD September 2012

Logistics Standard M 3399

Fortsetzung Seite 2 bis 40

Prepared by: Lechner, PWSPC Release EAS:

2012-10, englisch

Replaces: 2011-10 Material group no.:

MAN Truck & Bus Aktiengesellschaft, Munich works - Dept. Standardization (EAS) All rights reserved according to ISO 16016. Distribution and use of the contents are not allowed without written permission from MAN Truck & Bus Aktiengesellschaft.

1 Scope and purpose...........................................................................................................................3

2 Communication with suppliers........................................................................................................4 2.1 Availability .................................................................................................................................................. 4 2.2 Consultation discussions............................................................................................................................ 4 2.3 Confidentiality ............................................................................................................................................ 4

3 Delivery standards............................................................................................................................5 3.1 JIS/JIT standard procedure........................................................................................................................ 6 3.2 JIS/JIT contract warehouse........................................................................................................................ 6 3.3 JIS/JIT 2-stage delivery process ................................................................................................................ 6 3.4 Ship to Line ................................................................................................................................................ 7 3.5 Individual procurement with/without warehousing...................................................................................... 7 3.6 Vendor Managed Inventory (VMI) .............................................................................................................. 7 3.7 Stock procurement..................................................................................................................................... 7

4 Planning and forecasting process ..................................................................................................8 4.1 Requirement forecast................................................................................................................................. 8 4.2 Freezing, model mix, pearl chain ............................................................................................................... 9 4.3 Flexibility in terms of supplier capacity..................................................................................................... 10 4.4 Maintenance of safety stocks................................................................................................................... 10

5 Call-off and ordering process........................................................................................................11 5.1 Call-off content, formats and transmission times ..................................................................................... 11 5.1.1 Call-offs within the context of the JIS/JIT standard procedure and JIS/JIT contract warehouse procedure. 11 5.1.2 Call-offs within the context of "2-stage JIS/JIT" delivery......................................................................... 13 5.1.3 Call-offs within the context of "Ship to Line" direct delivery.................................................................... 14 5.1.4 "Individual procurement" orders with and without warehousing ........................................................... 14 5.1.5 Information within the context of "Vendor Managed Inventory" warehousing ..................................... 14 5.1.6 Call-offs within the context of "stock procurement" .............................................................................. 14 5.2 Call-off recipient ....................................................................................................................................... 14 5.3 Checking of delivery forecast and call-off ................................................................................................ 14 5.3.1 Anticipated deviation in delivery date or quantity ................................................................................. 14 5.3.2 Changes after call-off has been sent ................................................................................................... 15 5.4 Technical fault in the case of JIS/JIT call-offs .......................................................................................... 15

6 Definition of load carriers and supplier shipping process.........................................................16 6.1 Load carrier definition .............................................................................................................................. 16 6.2 Delivery standard ..................................................................................................................................... 16 6.3 Labelling................................................................................................................................................... 16 6.4 Transport commissioning and responsibility ............................................................................................ 17 6.4.1 Responsibility for transport at MTB...................................................................................................... 19 6.4.2 Responsibility for transport on the part of the supplier ......................................................................... 20 6.5 Customs handling and Incoterms for delivery of goods from non-EU countries....................................... 20 6.5.1 Supplier is not based in the EU............................................................................................................ 20 6.5.2 Supplier is based in the EU.................................................................................................................. 22 6.6 Delivery documents and EDI communication in the shipment process.................................................... 22 6.6.1 Delivery documents for transport and delivery..................................................................................... 22 6.6.2 Delivery papers via EDI ....................................................................................................................... 23

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6.6.3 Invoicing via EDI...................................................................................................................................23 6.7 Quality of the delivery ...............................................................................................................................23

7 Load carrier use and empties process .........................................................................................24 7.1 Load carrier financing and development...................................................................................................24 7.1.1 Universal load carriers..........................................................................................................................24 7.1.2 Special load carriers .............................................................................................................................24 7.1.3 Packaging material ...............................................................................................................................24 7.2 Load carrier use and quality .....................................................................................................................24 7.2.1 Load carrier handling............................................................................................................................24 7.2.2 Container maintenance ........................................................................................................................25 7.3 Use of the MTB web-based container management system ....................................................................25 7.4 Call-off of empties from MTB....................................................................................................................25 7.5 Empty container call-off quantity...............................................................................................................26 7.5.1 Calculating the maximum stock of empty containers held by the supplier............................................26 7.5.2 Calculating container requirements per working day............................................................................26 7.5.3 Calculating the container stock range of the supplier ...........................................................................26 7.6 Supply security (under- and oversupply) ..................................................................................................28 7.7 Container account statement/load carrier inventory .................................................................................28

8 Supplier evaluation.........................................................................................................................29

9 Breach of contractual obligations.................................................................................................30 9.1 Missing parts process...............................................................................................................................30 9.2 Default ......................................................................................................................................................30 9.3 Returning/sending back parts, over-delivery.............................................................................................31 9.4 Logistical supply quality............................................................................................................................31 9.5 Repair/ replacement of damaged load carriers.........................................................................................31 9.6 Participation in the open container pool/use of counterfeit load carriers...................................................32 9.7 Clarification of responsibility .....................................................................................................................32 9.8 Lead material management (LMM)...........................................................................................................32

10 Deviations from the agreed process.............................................................................................33 10.1 Changes ...................................................................................................................................................33 10.1.1 New parts and index changes ..............................................................................................................33 10.1.2 Changes of load carriers ......................................................................................................................33 10.1.3 Changes at the supplier........................................................................................................................33 10.2 Interruptions..............................................................................................................................................34 10.2.1 Maintenance and repair of production equipment ................................................................................34 10.2.2 Interruptions to operation......................................................................................................................34

11 Appendix..........................................................................................................................................35 11.1 Plant-specific additions.............................................................................................................................35 11.1.1 Nuremberg plant...................................................................................................................................35 11.1.2 Spare parts location Dachau ................................................................................................................35 11.2 Notes on quotations..................................................................................................................................35 11.3 Other applicable documents .....................................................................................................................35 11.4 Contacts ...................................................................................................................................................36 11.5 Quoted VDA guidelines ............................................................................................................................36

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1 Scope and purpose

This Logistics Standard governs the logistical connection of suppliers for all the plants of MAN Truck & Bus AG (MTB).

The Logistics Standard contains a complete list of all possible delivery standards. This does not mean that suppliers have to realise all the listed delivery standards. As a general rule, only the delivery standard applied by the supplier must be realised in accordance with the provisions of the current Logistics Standard. For each scope of supply that a suppler supplies to MTB, the Logistics Standard may be supplemented by specific information in the form of an MTB Logistics Agreement.

If a supplier delivers several delivery scopes, MTB will finalise a separate Logistics Agreement with him for each delivery scope. The scope of supply shall comprise:

a defined MTB item number, i.e.

o A unit (a pre-assembled set of parts already assigned to a vehicle)

o An assembly (a pre-assembled set of parts)

o An individual part

or

A set, i.e. a commissioned and partially pre-assembled set of components without its own MTB item number, but which still consists of individual components/assemblies with defined MTB item numbers.

or

A module, i.e. a pre-assembled set of parts without its own MTB item number, but consisting of individual parts/assemblies with defined item numbers.

If the scope of supply is to be provided in sequence (see Section 3.1), it consists of many individual item numbers and is known as a family. In this case, the scope of supply shall comprise either:

A unit/assembly/individual part family with defined MTB item numbers for the units/assemblies/individual parts

or

A set or module family without defined MTB item numbers for the sets/modules, but whose assemblies and individual parts do have a defined item number.

Figure 1: Types of scope of supply

Scope of supply

Completely pre-assembled scopes Not pre-assembled scopes

Not commissioned

With defined item number

Without defined item number

Commissioned

Single delivery Assembly or unit

Module Individual part Set

Assembly or unit family

Individual part family

Delivery as a family

Module family Set family

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2 Communication with suppliers

MTB provides its suppliers with details of key contacts so that they can get in touch quickly should they need to. On request, MTB can also provide its suppliers with an organisational chart that contains details of all the contacts available at management and administrative level within the various departments. Likewise, MTB expects fixed contact partners to be named by its suppliers. The supplier questionnaire, which is available on the Internet, should be used to advise MTB of these details.

Address: http://www.mantruckandbus.com.

Department: Company/Purchasing & logistics/Supplier applications

2.1 Availability As MTB plants generally operate on a multiple shift basis, MTB suppliers must ensure that they can be contacted outside of normal office hours. Therefore, using the Internet questionnaire described in Section 2, the supplier must nominate a central point of contact that will be available on working days in the period from 06:00 to 18:00 CET /CEST1 if required. In addition, an emergency telephone number with 24h standby service must also be specified.

In the case of general information queries submitted by MTB to a supplier, a reply must be guaranteed on the same working day or at the latest by 10:00 on the following working day. If individual supplier employees cannot be contacted due to absence, appropriate arrangements must be made to ensure that suitable replacements are available.

Queries escalated as "urgent" (for example in the case of an imminent supply bottleneck) must be answered within one hour. If it is not possible for suppliers to provide a definitive response within this time, they must keep MTB informed of the current situation.

2.2 Consultation discussions General consultation discussions with the supplier take place regularly every 12 months and are organised by MTB. MTB reserves the right to request that consultation discussions take place at shorter intervals. The relevant affected partner shall arrange the discussion in the event of major changes or problems affecting collaboration (see also Section 10).

2.3 Confidentiality MTB and its suppliers undertake to treat all decisions, agreements and any associated documents as strictly confidential. It is agreed that the partners shall actively provide each other with important information.

1 CET – Central European Time; CEST – Central European Summer Time

http://www.mantruckandbus.com/

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3 Delivery standards

MTB integrates its suppliers into standardised material procurement processes. MTB makes a distinction in terms of five standards for direct delivery without warehousing and three standards for delivery with warehousing (see Fig 2 and Fig. 3)

Supplier MTB

JIT/JIS Traileryard/ Trailerdock Staging in acc. withDelivery on automatic call-off in /Footprint/ Standard Procedure Supplier

Fig. 2: MTB delivery standards for direct delivery without warehousing

Fig. 3: MTB delivery standards for warehousing

The delivery standard defines many factors, including the format and content of delivery call-offs/orders, whether the scope of supply is to be segregated according to type or provided in sequence, the stocking location and who is responsible for inventory management. MTB defines the delivery standard to be used depending on the supplier’s location and, more specifically, for the scope of parts to be supplied and the recipient MTB plant. This is specified in the Logistics Agreement. For example, where suppliers are required to deliver their shipments in a particular assembly order (sequence) to the recipient MTB plant from a remote location, MTB uses the contract warehouse concept (see Section 3.2) or a 2-stage delivery process involving support from a service provider (see Section 3.3) to integrate them into the supply chain.

Stock sourcing

Vendor Managed Inventory*

The supplier is responsible for stock control

Individual procurement with warehouse

* With/without consignment ** Also prior to production/assembly without staging

Supplier MTB

Warehouse/ Supermarket

Supplier VMI - Warehouse**

Supplier

Delivery to call-off in accordance

with disposition

Supplier is responsible for

delivery

Staging in acc. with

the pull principle-


the pull principle

-

Supplier

Delivery to orderWarehouse


the pull principle

- U

nloa

ding

con

cept

/ S

tagi

ng c

once

pt

Supermarket the pull principleaccordance with pearl chain

Supplier

Buffer clos to consumption***

e -Delivery to order

Delivery following consumption Buffer clos to consumption

e -Supplier

Traileryard/ Trailerdock/

Footprint

1st tier supplier, ASP* or LSP**


the pull principle

- Supplier

Supplier

Delivery on automatic call-off in accordance with pearl chain

Traileryard/ Staging in acc. withTrailerdock/

Footprint the pull principle

-

-

Delivery on

automatic call-off

* ASP: Assembly Service provider The supplier is responsible for stock control

Individual procurement without warehouse

Ship - to - Line concept

JIT/JIS 2 - Stage

JIT/JIS Contract Warehouse

** LSP: Logistics service provider

AbladekonUnl

oadi

ng c

once

pt/S

tagi

ng c

once

pt

Contract warehouse

Dir

ect

Del

iver

y

Delivery on automatic call-off in accordance with pearl chain

zept / Bereitstellkonzept

*** e.g. as security warehouse for communications equipment

MTB or supplier responsible for stock control

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3.1 JIS/JIT standard procedure JIS and JIT call-offs result in Just-in-Sequence or Just-in-Time delivery to MTB. This delivery process is based on the order of production (sequence) in assembly plants, which is defined daily by scheduling customer orders (vehicles) in relation to particular assembly lines. With the JIS standard procedure, delivery scope call-offs are synchronised with production, i.e. deliveries are called off in accordance with the production sequence and must not be delivered until the moment when they are due to be installed.

Whereas JIT deliveries involve supplying goods segregated according to type and exactly to schedule, JIS deliveries also require the supplier to take into account the precise order of assembly (sequence). Within the context of the call-off specification (see Section 5.1.1), the Logistics Agreement defines the lead time as the time between the call-off being submitted and the expected delivery time to the recipient MTB plant.

There is a special kind of JIS delivery called SILS (Supply in Line Sequence) delivery. In this case, the supplier is not informed of the delivery sequence until the relevant end products are placed on the assembly line.

MTB only commissions its 1st-tier suppliers in the case of the JIS/JIT standard procedure. All processes are handled by these 1st-tier partners of the MTB supply chain. The 1st-tier partners have sole responsibility for commissioning upstream suppliers and for the procurement of raw materials. The JIS/JIT standard procedure does not allow for delivery from overseas, as the distance and transportation time to the recipient MTB plant will generally be too great.

3.2 JIS/JIT contract warehouse Within the context of its JIS/JIT contract warehouse delivery standard, MTB only commissions its 1st-tier suppliers. The supplier is obliged to maintain a specific stock relating to its scope of supply in a location close to the recipient MTB plant. The aim here is to ensure that JIS/JIT deliveries can still be made despite fluctuating transportation times or in cases where the supplier is based a long way away from the recipient MTB plant. The stock at the contract warehouse is the property of the supplier. The supplier can use its own warehouse for stockpiling or this task can be assigned to a service provider commissioned by the supplier. Pre-assembly and logistics can be performed at the contract warehouse or by the service provider on the supplier’s behalf, if required.2 All services provided will be invoiced under the supplier’s accounts payable number. JIS/JIT deliveries are dispatched from the contract warehouse. The maximum distance allowed between the contract warehouse and recipient plant is specified in the Logistics Agreement.

For deliveries from non-EU countries, the supplier's contract warehouse must be within the EU. The supplier is fundamentally responsible for ensuring that the goods are dispatched in accordance with customs legislation where cross-border transportation is involved (see Section 6.5), repackaging (where required), building up the MTB safety stock at the contract warehouse (see Section 4.4) and sequencing and picking of deliveries, if applicable. This includes handling at the port in the case of overseas delivery. The supplier is only responsible for physically transporting the goods to the contract warehouse if he is located outside of the MTB freight forwarding network for the area. If the supplier is inside the network, the goods will be transported to the contract warehouse by one of the area freight forwarders authorised by MTB. The supplier is also responsible for transport from the contract warehouse if the contract warehouse is located outside the area freight forwarding network.

3.3 JIS/JIT 2-stage delivery process In the case of the 2-stage JIS/JIT delivery standard, a contractual regulation on logistics relations not only exists between MTB and the supplier, but also with partners in an additional stage of the supply chain between the supplier and MTB. At the first stage, a service provider performs pre-assembly or logistics activities (for example warehousing, sequencing or commissioning activities). Both the service provider at the first stage and the supplier at the second stage use their own creditor number. If the supplier delivers goods to a contract warehouse commissioned by him and MTB integrates an additional service provider in the supply chain between the contract warehouse and recipient MTB plant, this process also corresponds to the JIS/JIT 2-stage delivery standard (see Fig. 3). The Logistics Agreement governs who is responsible for detailed MRP, stock ownership and placing transport orders.

Within the context of the JIS/JIT 2-stage delivery standard in the case of deliveries from non-EU countries, the service provider operates a transshipment warehouse in Europe on behalf of MTB. The service provider assumes responsibility for repackaging, maintaining the safety stock specified by MTB at the transshipment warehouse and, where applicable, sequencing or picking tasks and/or any activities that add value, e.g. pre-assembly, painting, etc. The supplier is responsible for physically transporting the goods to the transshipment

2 For the specifics relating to goods deliveries from non-EU countries, see section 6.4.

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warehouse and for ensuring cross-border shipment in accordance with customs legislation. This includes handling at the port in the case of overseas delivery. In this case, the stock held at the service provider’s transshipment warehouse is the property of MTB.

3.4 Ship to Line In the case of Ship to Line delivery, the supplier assumes control of the entire material delivery. The supplier is responsible for ensuring that a defined range of the required materials is stocked close to the point of consumption. Supply organisation is the responsibility of the supplier, but must be agreed with MTB. Generally, suppliers will build up a basic stock at the recipient MTB plant on a one-off basis. They will then work on a 2-container principle, exchanging empty containers for full containers as and when required. The Logistics Agreement specifies the range of the safety stock which is to be stored close to the point of consumption and also defines ownership of the stock (see Section 4.4). The Ship to Line delivery standard does not allow for deliveries from overseas.

3.5 Individual procurement with/without warehousing Individual procurement governs deliveries to MTB that are not covered by scheduling agreements. In general, these orders are one-off, possibly sporadic. For individual procurements, there is no need to define the logistical details with the aid of the Logistics Agreement. MTB is responsible for forwarding all necessary requests and information to the supplier (delivery volume, delivery deadline, packing batch, load carrier, packaging, labelling and, if applicable, transport service provider, delivery papers etc.) when the order is placed.

3.6 Vendor Managed Inventory (VMI) The Vendor Managed Inventory approach involves an intermediate warehousing stage between the supplier and MTB that separates the procurement market from production. Warehousing and warehouse management are carried out by MTB. The supplier assumes responsibility for inventory management, i.e. delivery times and quantities. Thus, the supplier has sole responsibility for the stock and supply aspects. MTB identifies a stock corridor with limits for the maximum and minimum range of the stock; within these limits, the supplier is free to manage the stock as he sees fit. Factors including variable parameters (such as delivery reliability and transport costs) are taken into account when calculating the corridor limits, allowing MTB to adapt these limits on a monthly basis if necessary. Stock ownership is governed by the Logistics Agreement.

The supplier undertakes to

maintain delivery data (arrival dates) on a daily basis

check the stock levels regularly, and

comply with the stock limits (stock corridor).

The Vendor Managed Inventory delivery standard does not allow for deliveries from overseas.

3.7 Stock procurement The stock procurement approach involves an intermediate warehousing stage between the supplier and MTB that separates the procurement market from production. Warehousing, warehouse management and stock control are carried out by MTB under its responsibility. The supplier’s role is to deliver the material segregated according to type, in accordance with the call-offs from MTB (see Section 5.1.6). Stock ownership is governed by the Logistics Agreement.

In the case of deliveries covering longer distances (particularly from overseas), a safety stock must be maintained at a location close to the recipient MTB plant. The safety stock should be built up in accordance with the “JIS/JIT contract warehouse” or “JIS/JIT 2-stage” delivery standards, depending on whether it is the supplier or the MTB that is responsible for this task.

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4 Planning and forecasting process

4.1 Requirement forecast The requirement forecast provides suppliers with information about the future requirements of MTB as far as their own particular scope of supply is concerned. The requirement forecast is non-binding on MTB, does not authorise the supplier to make deliveries and is independent of the delivery standard.

As requirements cannot be concretely scheduled until customer orders have been received, some future requirements are predicted in order to generate the requirement forecast. The proportion of these predicted requirements can vary, as the range of orders is heavily dependent on the economic situation. Requirements can therefore fluctuate between individual forecasts. As a rule, exact requirements are known approx. 17 working days before assembly of a truck/bus starts. This is the moment when MTB freezes the orders (known internally as “freezing”) (see Fig. 4)

Fig. 4: Long-term planning

Due to the necessary lead times associated with internal MTB deliveries and with production of the main units such as the cab, axle and engine, the delivery period allowed for the scope of supply concerned may be considerably less than the 17 working days leading up to the start of truck or bus assembly. The short-term fluctuations in call-offs that occur when forecast orders are replaced with customer orders must therefore be compensated for by means of safety stocks in the logistics chain as well as flexibility on the part of both the supplier and MTB. If this is not possible in individual cases, the procedure relating to deviations from the delivery call-off must be followed; this procedure is described in Section 5.3.

Upon contract conclusion, the supplier receives a current forecast of requirements for the year as well as the forecast maximum daily needs for each MTB location (see Logistics Agreement). During operations, MTB regularly supplies both an updated requirement forecast covering a forecast period of up to 12 months for each item number and the cumulative requirements for each delivery date and item number. This requirement forecast, in VDA 4905 or EDIFACT DELFOR format, is based on the delivery schedule. The respectively current requirement forecast applies.

The Logistics Agreement defines both the transmission time and format. If the forecast has not been sent by the agreed time, the supplier must inform the relevant materials manager/planner at MTB immediately.

MTB will inform its suppliers of any change in conditions that affect supplier processes. This shall include, in particular changes to work or shift patterns and changes to non-production days.

Time

Lev

el o

f o

rder

fu

lfilm

ent

12-month rolling plan

... 3 months 4 months 5 months 6 months 7 months 8 months

Planning

fixer

Fixed order stockDisposition quantities

Forecast requirement

Based on experience from the past

1 month approx.

Approx. 17 days 2 months

Planning in freezig

Planning for freezing pending

Fin

al a

ssem

bly,

driv

er's

cab

, ax

le c

onst

ruct

ion,

eng

ine

cons

truc

tion,

pro

duct

ion

with

out w

are

hou

sing

Fixed requirement

(Assemblies/modules)

Individual parts

Unfinished parts

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4.2 Freezing, model mix, pearl chain When orders are frozen (the so-called “freezing” process) approx. 17 working days before vehicle assembly is due to commence, they are definitively assigned to a particular production day and vehicle assembly line at the MTB assembly plants. The order of production ("sequence") within these daily packages ("model mix") is fixed 3 to 11 working days prior to the start of vehicle assembly depending on the location and division (see Table 1). Like in a "pearl chain", the orders are arranged in the exact order of assembly (see Fig. 5). Sequences are established for truck and bus assembly, production and assembly of cabs, engines and axles as well as for a number of important pre-assembly processes.

Order release Start of truck production (freezing) approx. 17 End-of-line

Fig. 5: Timeline of order scheduling process (using the example of truck assembly in Munich)

Based on the vehicle pearl chain for the various vehicle production lines and the requirements of other external customers, MTB also then schedules the assembly sequences for main units such as the engine, cab, front axle and rear axle. This scheduling step generates the "unit model mix". Table 1 shows the lead times for the unit model mix in normal operation, based on the applicable unit start date. Temporary deviations will be communicated separately.

Table 1: Time spans for fixed assembly sequence (pearl chain) at plants

Division Recipient plant Assembly line Fixed range in the assembly sequence

Munich Truck assembly

Cab assembly

Axle assembly (rear axle)

Axle assembly (front axle, transfer case)

11 working days

8 working days

6 working days

4 working days

Salzgitter Truck assembly

Axle assembly

CKD

11 working days

8 working days

13 working days

Cracow Truck assembly 11 working days

Steyr Truck assembly

Cab assembly

CKD

Paint

Shell

11 working days

8 working days

11 working days

6 working days

4 working days

Truck division

Vienna Truck assembly 11 working days

Orders

Daily packages Model mix

Model mix pearl chain

For VDA 4916, T call-off is here

Unit delivery

Assembly

Orders on hand

For VDA 4916, Z call-offis here

Vehicles

3-11 working days

Mo d m i x

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Plauen Bus assembly 21 working days

Ankara Bus assembly 10 working days

Salzgitter Bus assembly 10 working days

Poznań Bus assembly 10 working days

Bus division

Starachowice Bus assembly 10 working days

Components division Nuremberg Engine assembly 3 working days

Any change in the order (e.g. because of a delivery bottleneck) after the model mix has been defined results in very high follow-up costs due to the linking of the various assembly lines and due to fixed orders being placed with suppliers for the core assemblies required. Therefore, in addition to ensuring supply security, the main logistical aim is to keep the sequences stable. Only by strictly adhering to the planned sequence is it possible to keep the fluctuations in short-term material requirements within tight limits.

4.3 Flexibility in terms of supplier capacity Each supplier is obliged to monitor the capacity required to manufacture the products falling within his scope of delivery in order to determine the extent of capacity utilisation. Within this context, both the non-binding requirement forecasts and the binding requirement data in the delivery call-off must be taken into consideration for the whole forecast period (up to 12 months). If any potential bottlenecks with regard to capacity are identified, the supplier must take the appropriate action without delay in order to increase the available capacity levels and must inform MTB of this in a clear and comprehensible manner. If the supplier requires a resources order from MTB for this, this must be requested from Purchasing at least four weeks before the required order date and a copy of the request must also be sent to Material Planning/Management with a written explanation of the reason for the request.

Upon conclusion of a contract, the supplier is obliged to advise MTB of the average and maximum weekly capacities that have been set aside for MTB. In addition, any measures required to achieve the maximum weekly capacity must also be specified. As standard, suppliers must be prepared for permanent increases/reductions in quantities of up to 20% of the average weekly capacity - based on the respectively applicable current call-off - with a lead time of one month. If MTB needs to impose differing flexibility requirements on the supplier concerning capacity, this will be agreed separately (see Logistics Agreement).

If necessary, the supplier and MTB shall agree on a rolling monthly capacity/requirement consultation process with the aim of identifying and/or avoiding any bottlenecks in capacity or overcapacity at an early stage. This collective planning activity shall focus on managing the capacity resources used within the supply chain. MTB offers an Internet-based application (MTB homepage) in the form of its MTB DCP tool for the purpose of implementing the rolling capacity/requirement consultation process. This involves identifying short to long-term capacity bottlenecks affecting the supplier by comparing (MTB) requirements with (supplier) capacity levels according to the black box principle.

4.4 Maintenance of safety stocks As a general rule, MTB safety stocks are not intended to safeguard against delivery delays on the part of the supplier. Thus, the supplier is responsible for delivering punctually to MTB and must maintain own safety stocks of finished/semi-finished parts where necessary to ensure this takes place. The level of these stocks and their stocking location depend on

the stability of the supplier's internal processes,

the stability of the logistical chain upstream of the supplier, and

the selected delivery standard (see Section 3)

Suppliers are obliged to advise MTB of the current range of their own safety stocks on request. If required, the Logistics Agreement shall also specify the range of safety stocks that MAN requires the supplier to ensure in order to safeguard against problems including supply risks. This specification provides the basis for building up the initial safety stock. However, MTB reserves the right to adapt the specified ranges of safety stocks in the light of various factors, including supplier performance. In such cases, MTB shall inform the supplier of the modified values.

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5 Call-off and ordering process

The following sections explain the content, formats and transmission times for the call-offs sent by MTB to its suppliers, depending on the selected delivery standard. Further information, e.g. relating to the data contained in the call-off, can be found in the MTB EDI starter pack as well as the EDI process description for JIS/JIT delivery.

As standard, MTB shall send delivery call-offs via electronic data interchange (EDI) in accordance with either the VDA or the EDIFACT standard (see Section 5.1). It is assumed that the supplier already has the necessary communication facilities in place to support EDI. Call-offs can only be sent via the Internet, fax or mail in special cases. The delivery quantities and delivery dates (deadlines) stated in the delivery call-offs and, in particular, in the JIS and JIT call-offs, must always be adhered to. The stated delivery dates are the dates the products are due to arrive at the appropriate recipient MTB plant.

5.1 Call-off content, formats and transmission times

5.1.1 Call-offs within the context of the JIS/JIT standard procedure and JIS/JIT contract warehouse procedure

Both JIS/JIT delivery standards generally involve two types of call-off for the supplier: Firstly, a delivery forecast containing future planned requirement figures is sent on a continuous basis, i.e. daily or weekly (see section 4.1). This delivery forecast is not binding on MTB and does not authorise the supplier to make deliveries. Secondly, the binding JIS or JIT call-offs are sent out; these then replace the delivery forecasts completely for the time frame concerned. Surplus quantities are omitted. Higher call-off quantities are classed as additional requirements. The modified requirements are automatically taken into consideration when the next delivery forecast is issued.

In addition to specifying the quantity, the JIS/JIT delivery call-off also includes details of the delivery time. If this delivery time cannot be adhered to, the MRP department at the relevant recipient MTB plant must be notified immediately by telephone, e-mail etc. Both the internal throughput time required by the supplier and the transport time must be taken into account within this context. This requirement applies regardless of whether an early or late delivery is anticipated, or whether the early or late delivery is the responsibility of the freight forwarder or the supplier. The freight forwarder is responsible only for informing MTB of any changes following dispatch that affect the scheduled arrival time that has been communicated.

In the case of the JIS/JIT contract warehouse delivery standard, call-offs are sent to the recipient specified by the supplier. This can be, for example, either a production site or the supplier's contract warehouse (see section 3.2). The supplier must ensure that its contract warehouse can always be informed without delay. Delivery notes that are generated at the contract warehouse when goods are dispatched must contain the supplier’s accounts payable number. In addition, the consistency of the document information must be ensured. In particular, consistency must be ensured between the information on the delivery note and the information on the invoice.

The information below describes the differences between the call-offs for JIS and JIT deliveries and between the EDIFACT and VDA call-off formats.

5.1.1.1 JIS call-offs with a trailer load specified by MTB If MTB needs to assign particular items to a specific truck trailer, it shall send call-offs that provide details of the items to be supplied on the respective trailer corresponding to the order of production. In such cases, the call-off shall always be sent in EDIFACT DELJIT format. The VDA format is not used within this context.

With the EDIFACT DELJIT format, the DELJIT/SYNCHRO PLANNED call-off is used to inform the supplier of the precise vehicle configuration in accordance with the frozen sequence specified by MTB (see Section 4.2). The order of the vehicles is defined using sequential numbers in ascending order. With this type of call-off, this order does not correspond to the production sequence, but to the scheduled number of vehicles per day. This information is available for a production period of 17 working days.

For the supplier's scope of supply, MTB generates a scheduled sequence of loaded truck trailers containing the items that are to be supplied in sequence for a defined time frame. In the case of the call-off DELJIT/SYNCHRO CALL-OFF PLAN, MTB sends the supplier details of what the last of the newly scheduled trailers is to contain, along with the scheduled arrival time (see Fig. 6). From the supplier's point of view, this is the trailer, which is to be delivered to MTB as the last of the already planned trailers.

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The physical consumption of goods at the recipient plant initiates the delivery release of the next scheduled trailer on the basis of the trailer ID (PLAN FIRM) (trailer Kanban). Following the "consumption" of a trailer, the binding trailer call-off DELJIT/SYNCHRO CALL-OFF FIRM is sent (see Fig. 6). The number of scheduled and fixed trainer loads within the time frame is specified by the Logistics Agreement.

The complete JIS call-off in the EDIFACT DELJIT format consists of the DELJIT/SYNCHRO CALL-OFF PLAN and the DELJIT/SYNCHRO CALL-OFF FIRM call-offs. The Logistics Agreement specifies whether MTB also needs to send the DELJIT/SYNCHRO PLANNED call-off and how far in advance this call-off should be sent.

• -

• - List analysis

-

Time

Freezing Model mix Delivery/arrival date

Start of production

Advance notification*, max. 17 working days

Range of planned trailer loads*

Call-off cycle: after consumption of a trailer load

DELJIT/ SYNCHRO PLANNED** Newly frozen vehicle

nos. without sequence

Item nos. in acc. with parts list analysis

Range of fixed trailer loads*

Vehicle nos. in sequence

DELJIT/ SYNCHRO CALL-OFF firm Item nos. in acc. with

parts list analysis for one trailer load

Vehicle nos. in sequence

DELJIT/ SYNCHRO CALL-OFF PLAN Item nos. in acc. with

parts list analysis for one trailer load

Call-off cycle: after consumption of a trailer load

ED

IFA

CT

* By agreement **Optional Call-off binding

Fig. 6: Information and lead times for the JIS call-off in the EDIFACT DELJIT format

5.1.1.2 JIT call-offs with a trailer load specified by MTB As with the JIS call-off, MTB generates a scheduled sequence of loaded truck trailers containing the items that are to be supplied for the supplier’s scope of supply and for a defined time frame, where required. However, in contrast to JIS delivery, in this case MTB plans the loading of the trailers according to item type and not according to the scheduled vehicle sequence.

In the case of the DELJIT/Kanban CALL-OFF PLAN, the supplier receives non-binding details of what the last of the newly scheduled trailers is to contain, along with the scheduled arrival time. From the supplier's point of view, this is the trailer, which is to be delivered to MTB as the last of the already planned trailers. The number of scheduled and fixed trainer loads within the time frame is specified by the Logistics Agreement.

The physical consumption of goods at the recipient plant initiates the delivery release of the next scheduled trailer on the basis of the trailer ID (PLAN FIRM) (trailer Kanban). Following the "consumption" of a trailer, the binding trailer call-off DELJIT/Kanban CALL-OFF FIRM is sent.

The complete JIT call-off in the EDIFACT format consists of the DELJIT/Kanban CALL-OFF PLAN and the DELJIT/Kanban CALL-OFF FIRM call-offs.

Further information on the content and layout can be found in the MTB EDI starter pack.

5.1.1.3 JIS call-off without a trailer load specified by MTB If MTB does not specify a trailer load, but instead leaves this to the supplier, the call-off can be in either the EDIFACT DELJIT or VDA 4916 formats. Call-offs in the EDIFACT DELJIT format are generated and sent in the same way as when a trailer load is specified, but no trailer ID is given. Details can be found in the MTB EDI starter pack.

The JIS call-off in the VDA 4916 format specifies an exact delivery date and quantity based on daily requirements (day period). It either consists of a so-called Z call-off, or is made up of a Z call-off and an MTB-specific D call-off (see

Fig. 7). A call-off for a vehicle (Z/D) is always one-off and final. No electronic change or cancellation information can be issued in respect of the type and quantity of the item numbers allocated to a vehicle or the required date. Should such changes become necessary, they must be agreed separately (emergency strategy). Lead times and call-off frequency are defined in the Logistics Agreement.

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The Logistics Agreement specifies whether a T call-off must be sent additionally. This call-off informs the supplier about the scheduled, but not yet confirmed, vehicle content in a day period on the final assembly line (see Gig. 7) In addition, the Logistics Agreement specifies the lead time for sending the call-off.

Call-off cycle: Daily

Fig. 7: Information and lead times for the JIS call-off in VDA format

Z call-off: The requirement is triggered by the internal assembly line sequence defined as a "frozen" pearl chain. The Z call-off is based on the vehicle-related parts list, which contains all of the item numbers with details of the quantities needed for the unit of one specific vehicle. The Z call-off is sent once and describes the frozen assembly order. Where a D call-off is used, the Z call-off does not authorise the supplier to make deliveries.

D call-off: The D call-off defines the vehicle sequence (sequence call-off). A D call-off must always have been preceded by a Z call-off at a previous point in time. Only the production number (VIN) is sent. The arrival dates in the D call-off may differ from the Z call-off. The D call-off is binding for the delivery.

5.1.1.4 JIT call-off without a trailer load specified by MTB If MTB does not specify a trailer load, but instead leaves this to the supplier, the call-off can be in either the EDIFACT DELJIT or VDA 4915 formats. In the case of a JIT call-off, MTB sends detailed call-offs every working day via electronic data interchange. The detailed call-off contains supply-relevant required quantities and arrival dates up to a time specified in the Logistics Agreement. Any dates and quantities falling outside this time period should only be viewed as a delivery schedule in the sense of a delivery forecast, and are of no direct relevance in terms of supply. The latest detailed call-off that is sent replaces its predecessor.

5.1.2 Call-offs within the context of "2-stage JIS/JIT" delivery As standard, MTB sends the binding detailed or sequential call-offs to the partner in the first stage of the supply chain, i.e. to the 1st-tier supplier or logistics service provider. The partner in stage 2 only receives the non-binding delivery forecast. If the item numbers used for the 1st-tier service provider’s and 2nd-tier supplier’s scopes of supply are different, the partner in stage 1 also receives a non-binding forecast from MTB. The call-off content, formats and transmission times described in Section 5.1.1 apply analogously. If this standard approach cannot be followed, the changes must be specified in the Logistics Agreement.

MTB expects both partners to send each other delivery notes via EDI transmission that make reference to the delivery forecast sent by MTB to the 2nd–tier partner. The consistency of the document information must be ensured. In particular, consistency must be ensured between the information on the delivery note and the information on the invoice.

Time

•

•

Freezing Model mix Delivery/ arrival date

Start of production

Advance notification*


* By agreement **Optional Call-off binding Call-off binding if D call-off not applicable


•

Call-off cycle: DailyV

DA

491

6 Z call-off D call-off** T call-off** Vehicle nos. of a

daily target in sequence

Vehicle nos. of a daily target in sequence

Vehicle nos. of a daily target without sequence

Item nos. in acc. w. parts list analysis

No item nos. Item nos. in acc. w. parts list analysis

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5.1.3 Call-offs within the context of "Ship to Line" direct delivery Within the context of "Ship to Line" direct delivery, the supplier does not receive any binding call-offs from the MTB. The supplier receives only the requirement forecast in VDA 4905 or EDIFACT DELFOR format (see Section 4.1).

5.1.4 "Individual procurement" orders with and without warehousing Within the context of "individual orders" in direct delivery and with warehousing, the supplier does not receive any call-offs from MTB. The sporadic orders are sent by fax or post, or via EDI.

5.1.5 Information within the context of "Vendor Managed Inventory" warehousing MTB provides its suppliers with current planned requirements, stock levels (assembly buffer and warehouse) and consumption quantities daily via the Internet. Maximum and minimum stock ranges are defined in the MTB VMI tool. However, MTB reserves the right to adapt the specified ranges in the light of various factors, including supplier performance. The requirement data provided by MTB within this context is binding. In addition, MAN Truck & Bus sends the requirement forecast, along with current consumption quantities and stock levels, to the suppliers in the VDA 4905 or EDIFACT DELFOR delivery call-off formats (see Section 4.1); this forecast is not binding from the perspective of delivery.

5.1.6 Call-offs within the context of "stock procurement" The stock procurement delivery standard is the only standard where the requirement forecast in VDA 4905 or EDIFACT DELFOR format (see Section 4.1) actually authorises the supplier to make deliveries within a specified period, rather than merely being interpreted as a forecast. As standard, this time period is 17 working days. Any deviations from this shall be agreed in the Logistics Agreement. The appropriate parameters apply as mandatory for delivery (see Fig. 8).

Fig. 8: Information and lead times for delivery schedule call-off

5.2 Call-off recipient The supplier must specify a call-off recipient as far as the EDI connection is concerned and outline a fallback solution that can be used in the event of any breakdown (e.g. fax transmission over a defined period in parallel with the EDI call-off). In the case of the 2-stage JIS/JIT delivery standard, recipients who can authorise the second stage of the supply chain must also be specified, if required.

5.3 Checking of delivery forecast and call-off

5.3.1 Anticipated deviation in delivery date or quantity The supplier regularly checks incoming delivery call-offs as well as their plausibility and feasibility. If the supplier has any doubts about the information, he must contact MTB of his own accord. In particular, if it seems likely that the delivery date or quantity cannot be met, the supplier must inform MTB immediately. When doing so, he must state the reason for the delay in delivery, and specify a subsequent delivery date. In the case of

Time

Delivery/arrival date

Advance notification*

•

• VD

A 4

905,

E

DIF

AC

T D

ELF

or

per

item

no

.

Call-off cycle: daily, weekly, monthly, etc. by agreement

Delivery plan call-off

* By agreement

Call-off binding

Arrears and resulting immediate requirement

Required quantity, date

Requirement forecast Requirement forecast

for 12 months

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more serious backlog situations, the supplier shall provide MTB with a catch-up plan agreed with the Material Planner/Material Manager (to be updated daily) in order to resume punctual deliveries. Any claims relating to delivery delays shall remain unaffected by this.

Changes to the quantity or delivery date made after a call-off has been sent may only be made in writing and must be confirmed by MTB in each individual case (e.g. rounding up the delivery quantity to a full truck load). Before this can happen, an objection must first be raised against the delivery call-off by the specified deadline, in writing or by fax, and sent to the relevant Material Planner/Material Manager. After these time periods have elapsed, the call-offs that have been sent are deemed to have been accepted. The following deadlines for objection apply:

Within 10 working days for long-term call-off changes (> three months before delivery date)

Within three working days for medium-term call-off changes (three months to 15 days before delivery date)

Within two working days for short-term call-off changes (< 15 days before delivery date)

Immediately for JIS and JIT call-offs

5.3.2 Changes after call-off has been sent Certain scopes of supply involving items that are to be used in the end products of MTB can change even after the delivery call-off due to changes in customer requests. As far as these scopes are concerned, deadlines and features are agreed in the Logistics Agreement, which specifies the latest possible date that a change can be made and the product features which can be changed.

5.4 Technical fault in the case of JIS/JIT call-offs MTB and the supplier shall endeavour to identify any technical faults affecting the EDI transmission of call-offs as quickly as possible. The supplier shall inform MTB if the agreed delivery call-offs do not arrive on the agreed day (where applicable daily) in the usual regular cycle (see Contacts appendix in the Logistics Agreement).

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6 Definition of load carriers and supplier shipping process

6.1 Load carrier definition MTB makes a distinction between the following load carriers:

ULT – Universal load carrier

GLT – Large load carrier

KLT – Small load carrier (VDA: KLT System 4500. VDA R-KLT small load carriers with the following features are preferred: single-wall small load carrier construction, rigid, max. permissible MTB gross fill weight up to 12 kg ((tare weight KLT + total fill weight) and composite base)

SLT – Special load carrier (including MLT – modular load carrier and EPP inlays)

These load carriers and their technical data are defined and documented in MTB Load carrier standard M3301. Only these containers may be used for a delivery. In addition to the load carrier, additional packaging materials may be used where necessary in order to guarantee adequate component protection. A current overview of the universal load carriers (ULT) and additional packaging materials provided in the MTB reusable container system is available on the internet on the MTB supplier applications page. Contractual obligations in relation to packaging are not affected by the provision of MTB load carriers and additional packaging materials.

6.2 Delivery standard The supplier shall be generally obliged to deliver in the load carrier and packing batch sizes defined in the call-off. The delivery standard also defines the combination of load carrier type, item number, packing batch size and additional packaging materials. The supplier must comply with the delivery standard prescribed for the respective item number and the corresponding recipient plant. This does not apply to remaining quantities in the case of batch production. An agreed delivery standard does not release the supplier from his general quality responsibility for the delivery condition.

Deviations from the specified load carrier are permitted only subject to prior written approval from the relevant planner or material manager of MTB. The approval must contain the affected item numbers, as well as details of the agreed alternative packaging and the precise time of the approval, and must be attached in a visible location on the load carrier. If the deviation is approved, the specified alternative packaging for this individual case must be used.

Goods delivery in undamaged load carriers is expected (see 7.2). Load carriers are only to be filled with goods for one offloading point. Load carriers must be delivered segregated according to type, unless the delivery is a JIS delivery or a delivery of sets or modules (see Section 1). The containers must be filled up to the maximum quantity stipulated in the packaging specification before a new container is added, i.e. there can be only one container per shipment and item number that is not completely filled.

The type and quantity of the load carriers delivered must be stated on the delivery note. Since MTB packaging or pool containers are used for packaging, this data element must be specified with the MTB container item number. Input takes place in the format 0984019XXXX (XXXX: to be replaced by suppliers with the unambiguous MTB type designation of the load carrier). Refer to VDA 4913 for details.

6.3 Labelling The water-resistant goods tag filled out correctly and in full according to VDA 4902 (see Fig. 9) must be attached securely to the load carrier in a visible location on the left (viewed in the direction of travel). The goods tags for small load carriers must only be placed in the pockets intended for this purpose (see 7.2).

If parts with different item numbers are transported in one load carrier, clear labelling is required to facilitate identification of the goods. This procedure (more than one item number per load carrier) is only permitted in exceptional cases and subject to prior agreement. Initial samples are to be clearly identified as such with their own goods tag.

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(1) Warenempfänger

(3) Lieferschein-Nr. (N)

(5) Gewicht netto (7) Anzahl Packst.

(8) Sach-Nr. Kunde (P)

(15) Packstück-Nr. (8)

(17)

(6) Gewicht brutto

(2) Abladestelle - Lagerort - Verwendungsschlüssel

(4) Lieferantenanschrift (Kurzname, Werk, PLZ, Ort)

(16) Chargen-Nr. (H)

(9) Füllmenge (Q) (10) Bezeichnung Lieferung, Leistung

(11) Sach-Nr. Lieferant (30S)

(12) Lieferanten-Nr. (V)

(13) Datum (14) Änderungsstand Konstruktion

Fig. 9: Goods tag in accordance with VDA 4902

The following information must be added to the goods tag in the case of JIS deliveries: Trailer number, tray (container) sequence number, chassis number of each component, arrival date, assembly line date and assembly line sequence.

6.4 Transport commissioning and responsibility Depending on the supplier's location, either the supplier or MTB is responsible for organising, commissioning and carrying out transportation tasks. Transport is organised in accordance with the delivery standard selected, as shown in the following diagram:

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Individual procurement with/without warehousing

JIS/JIT contract warehouse

JIS/JIT standard procedure

Stock procurement

JIS/JIT 2-stage delivery process

Ship to Line

Vendor Managed Inventory

MTB

FCA2 supplier plant

MTB

FCA2

supplier plant

Supplier

DDU or DAP 1 MTB plant

6

MTB

FCA2 supplier plant

Delivery standard

MTB

FCA 2

supplier plant4

Supplier

Supplier

Supplier

Supplier

MTB

MTB

MTB

MTB

MTB

Supplier MTB

JIS/JIT contract warehouse7

JIS/ JIT 2-stage7

Overseas delivery (container delivery)

Supplier MTB

Supplier

Supplier

MTB

MTB

Serviceprovide

3

Contractwarehouse

4, 5


JIS/JIT standard procedure Ship to Line Vendor Managed Inventory Stock procurement Individual procurement with/without


Overland delivery, supplier dispatch

location outside area covered by MTB

freight forwarding network

Supplier


6

Supplier

DDU or DAP 1

service provider6

MTB

Supplier

Supplier

MTB

MTB

Supplier Supplier


6

Supplier

MTB

Serviceprovider 3

DDU or DAP 1

service provider6

MTB

Supplier Supplier

MTB

EU

Non-EUMTB

FCA 2

supplier plant4.6

SupplierSupplier MTB Contractwarehouse

4, 5

MTB

Supplier Supplier

MTB EU

Non-EU

MTB

MTB

FCA2 contract warehouse

FCA 2 contract warehouse

6

FCA 2 contract warehouse

6

Serviceprovider 3

Contract warehouse

4, 5

Contractwarehouse

4, 5

Contract warehouse

3, 5

SupplierOverland delivery, supplier dispatch

location within area covered by MTB

freight forwarding network

(Country codes: A, B, CH, CZ, D, DK, E, F,

FIN, GB, H, I, L, N, NL, P, PL, S, SK, SLO)

Organisation, commissioning and execution of transport by

1 DDU (Delivered Duty Unpaid): The vendor supplies the purchaser with goods not released for import at a specified destination on the incoming means of transport without unloading. The vendor must bear the costs and risk of transport to this point (with the exception of any customs duty for the import into the destination country), see Incoterms® 2010 rules by the International Chamber of Commerce (ICC) and/or For new contracts as of 2011 instead of DDU -> DAP (Delivered at Place): The vendor supplies the purchaser with goods at a specified destination on the incoming means of transport ready for unloading. The purchaser is responsible for the unloading. The vendor bears all risks related to the delivery to the specified location. DAP obligates the vendor to clear the goods for export, if applicable. However, the vendor is under no obligation to clear the goods for import, pay import customs duties or take care of any import formalities. If the parties wish the vendor to clear the goods for import, pay import customs duties and take care of import formalities, the DDP clause should be used, see Incoterms® 2010 rules by the International Chamber of Commerce (ICC).

2 FCA (Free Carrier): The vendor delivers the goods cleared for collection to the haulier named by the buyer at the stated location. If the delivery takes place at the vendor's location, the vendor is responsible for loading the goods. If the delivery takes place at a different location, as required by the buyer, the vendor is not responsible for unloading. If applicable, the vendor is obligated to take care of all necessary customs formalities to export the goods, see Incoterms® 2010 rules by the International Chamber of Commerce (ICC).

3 The contract warehouse operated or commissioned by the supplier (JIS/JIT contract warehouse) or of the service provider commissioned by MTB

(JIS/JIT 2-stage) shall always be located within the freight forwarding network of MTB.

4 The supplier is responsible for the unloading in the contract warehouse that he has commissioned or operates himself, even if the delivery is collected at the supplier by an area freight forwarder commissioned by MTB. The supplier shall be responsible for any damage or losses incurred in the contract warehouse as from the time of unloading.

5The supplier shall be responsible for loading in the outgoing goods department of the contract warehouse. If goods have been loaded in the proper manner, the risk for any damage

arising or losses incurred is transferred to MTB.

6 Details of customs duties and other specifics (e.g. supplier residence in EU) are outlined in Section 6.4 of the Logistics Standard. 7 In the case of overseas deliveries, all shipments will initially be delivered to a transshipment warehouse in order to be transported from there by truck to the MTB receiving plants. This

transshipment warehouse will either be operated as the supplier's contract warehouse, or on his behalf (JIS/JIT contract warehouse) or by MTB or on behalf of MTB (JIS / JIT 2-stage). From the service provider or contract warehouse, the deliveries to the recipient MTB plants can be performed as either a JIS/JIT direct delivery or stock procurement from stock.

Fig. 10: Responsibility for organising, commissioning and performing transportation tasks depending on the location of the shipping plant and delivery standard

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When the supplier is located outside the the MTB freight forwarding network, the "JIS/JIT contract warehouse" delivery standard is used with the Incoterm "FCA ex contract warehouse". In all other cases, delivery takes place using the Incoterm "FCA supplier plant". In the latter case, the supplier is additionally responsible for unloading the goods in the incoming goods department as well as loading the goods in the outgoing goods department of the contract warehouse, and is liable for any losses incurred or damage arising between these two points in time (see Fig. 10) in the same way and to the same extent as would be the case for a delivery as per “FCA contract warehouse”, i.e. if he had taken care of the transport to the contract warehouse himself and thus no transfer of risk had occurred in the interim. The supplier must check the completeness and integrity of the goods when unloading the goods in the incoming goods department of the contract warehouse and must immediately and directly notify the area freight forwarder of any missing quantities or damage. Otherwise the goods are considered to be transferred to the supplier in a complete and defect-free condition.

6.4.1 Responsibility for transport at MTB In the case of a delivery commissioned by MTB, the supplier is responsible both for the timely and correct notification of the MTB freight forwarder, and for ensuring that the items included in the scope of supply are made available on time. Details relating to deliveries commissioned by MTB can be found in the Shipping instructions for deliveries to MAN Truck & Bus AG which is available from Purchasing. The Shipping instructions (current version) form part of the contract between the supplier and MTB. If these instructions are not observed, MTB reserves the right to invoice for the additional expenditure incurred.

In the case of a delivery commissioned by MTB, the working hours of the recipient plant must be taken into account along with any Sundays and public holidays that are of relevance from the point of view of transportation. The supplier must ensure that delivery frequency is not affected by the working hours or by any non-working or reduced working days that apply in respect of the supplier's plant and the freight forwarder.

With respect to deliveries commissioned by MTB, MTB makes a distinction between “standard shipments without packages” and “standard shipments with packages”. Small shipments up to a weight of 60 kg apply as packages. For this, small shipments up to 32 kg must be compiled into a single package and no more than 2 packages in total may be sent per dispatch day.

Standard non-package shipment In the case of a delivery commissioned by MTB involving non-package shipments, the supplier must normally notify the MTB freight forwarder two working days before the delivery date (Day A) in order to guarantee a punctual delivery. The freight forwarder shall then collect the shipment from the shipping location, i.e. the production location, contract warehouse location or service provider location, one working day before the delivery date (Day B). The supplier must stage the shipment accordingly. The delivery shall then be made to the recipient MTB plant on the delivery date (Day C). However, depending on the distance between the shipping location and the recipient plant, it is often necessary for the notification to take place more than two working days before the delivery date. The details are therefore governed by the Shipping instructions, which are binding.

The supplier uses the "Dispatch Notification" form to notify freight forwarders of shipments without packages by fax. If applicable, the supplier shall send the delivery note in accordance with VDA standard 4913 to the freight forwarder as well as to MTB. The delivery note shall not be transmitted to MTB via EDI by the freight forwarder. Upon collection, the supplier shall provide the freight forwarder with the original copy of the freight order (VDA 4922) plus an additional copy, as well as two copies of the delivery note or two copies of a goods receipt/issue slip (VDA 4912). For all shipments that do not pass through the freight forwarder’s consolidation point, the freight order and delivery note (if not sent according to VDA standard 4913) must be sent in advance by fax to the freight forwarder. In such cases, the supplier shall be informed by the freight forwarder.

In the case of JIS/JIT delivery, the goods are to be made available by the supplier at a certain point in time for collection by the freight forwarder; this date will depend on the delivery date (collection date = arrival date - transit time - loading time). On the day before the goods are to be made available, the supplier shall notify the freight forwarder of the collection date for the goods and the delivery date to the recipient MTB plant by an agreed time (see Shipping instructions). Upon collection, the supplier shall provide the freight forwarder with the original copy of the freight order plus an additional copy, the EDI goods receipt/issue slip and the chassis number-related loading list. If the transit time changes, the freight forwarder must inform the supplier of this, providing sufficient notice. The freight forwarder shall inform MTB and the supplier if the agreed date of collection from the supplier cannot be adhered to. After the goods have been collected from the supplier by the freight forwarder, the freight forwarder must consult the MRP department at the affected plant immediately in the event of any subsequent time delays.

Any additional costs caused by deviations from the standard process shall be borne by the party responsible. Such deviations shall include, for example:

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Supplier-related:

Bringing forward dispatch due to non-production days or public holidays (additional trailer requirement)

Waiting times due to unusual delays in shipment

At MTB:

Saturday shifts, which result in shipments from the supplier being brought forward (additional trailer requirement)

Postponement or omission of scheduled shipments due to production failures, subject to Section 8 of the General Purchasing Conditions for Production Material and Spare Parts for Commercial Vehicles

Standard package shipment In the case of a delivery commissioned by MTB, package shipments (up to 60 kg, max. of 32 kg per individual package) shall be sent using the specified service provider. The delivery process is the same as for non-package shipments. The supplier shall use the specified service provider’s shipment documentation to provide notification of package shipments. Reference must be made to the valid shipping instructions in each case for details on the process.

Special consignments In the case of a delivery commissioned by MTB, the instructions for dealing with a special consignment are always defined by the MRP department of the recipient MTB plant in cooperation with the supplier. If the special consignment is necessary for reasons for which MTB is responsible, MTB shall pay the costs and shall be responsible for commissioning and execution of the special consignment.

If the consignment is necessary for reasons for which the supplier is responsible, he shall pay the costs and shall be responsible for commissioning and execution. The supplier will receive a special-delivery number from Material Management for this. If the supplier commissions the special consignment service provider of MTB (currently INTIME), the special consignment service provider must also be informed of the special-delivery number. The MTB special-delivery number must be noted on all the shipping documents. Alternatively, the supplier can also use another freight forwarder.

If it becomes evident in retrospect that the supplier and not MTB (or vice versa) is responsible for the special consignment, the costs for the special consignment must be charged to the respective other party.

6.4.2 Responsibility for transport on the part of the supplier

Standard shipment In the case of a delivery commissioned by the supplier, the supplier shall be responsible for ensuring that the commissioned freight forwarder can provide information about the location of the goods at all times. In the case of such deliveries, it is the supplier who has sole responsibility for ensuring that the goods arrive at the recipient MTB plant on time and in the proper manner.

Special consignments In the case of special consignments, drivers must always be provided with a mobile telephone, so that the location of the consignment can be determined at any time upon request. The mobile telephone number must be advised to MTB upon request. Special consignments are subject to approval and must be agreed with the MTB departments.

6.5 Customs handling and Incoterms for delivery of goods from non-EU countries3 The form of customs handling that is applicable to non-EU goods depends on whether the supplier is based in the EU. The supplier is considered to be resident in the EU if he has a registered office within the EU. Furthermore, the selected delivery standard can also affect how goods from outside the EU are handled.

6.5.1 Supplier is not based in the EU The supplier is not considered to be resident in the EU if he does not have a registered office within the EU. If the supplier is not based in the EU and delivery takes place with the JIS/JIT contract warehouse delivery

3 Note: The explanations in this section relate exclusively to deliveries of goods that originate outside of the EU. This does

not necessarily mean that the supplier will have a registered office outside the EU.

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standard, the contract warehouse within the EU shall serve as a customs warehouse4 and the goods handled correspondingly in accordance with customs legislation. This means that upon transportation across the border, the supplier shall initially place the goods in customs transit (shipment procedure T15) so that the goods can be transported to the customs warehouse as dutiable goods. The goods are then transferred into a customs warehouse procedure. When a delivery lot is called off from the customs warehouse by MTB, the supplier or the commissioned service provider shall initiate a further shipment procedure (T1). The area freight forwarder commissioned by MTB shall collect the delivery as dutiable goods and transport the goods to the recipient MTB plant. MTB shall then perform customs clearance there (see Fig. 11).

Supplier MTB

Non-EU EU


Contract warehouse**

(customs warehouse)

Overseas/overland

transport


Footprint


the pull principle

Truck

transport

Production/ Assembly

Supplier


Supplier (poss. in conjunction with contract warehouse)


Footprint

Truck

transport

Overseas/overland

transport

Production/ Assembly


the pull principle LSP*

The supplier is responsible for stock control * LSP: logistics service provider, commissioned by MTB** Service provider commissioned by supplier/supplier's transshipment warehouse Payment of duty, i.e. transfer of the goods allowing them to

enter free circulation

Fig. 11: Non-EU delivery using JIS/JIT 1-stage/2-stage processes and involving suppliers not based in the EU

If the delivery is performed in delivery standard JIS/JIT 2-stage, MTB will incorporate a service provider in the process6. In such cases, MTB is responsible for the customs clearance before storing the goods at the service provider. The delivery is performed using Incoterm “DDU or DAP service provider” if the supplier is located outside the area freight forwarding network of MTB. If he is located within the area freight forwarding network of MTB, the delivery is performed with Incoterm “FCA supplier plant” (see Fig. 11).

In order for MTB to be able to perform customs clearance (or have customs clearance performed), the supplier shall send all the documents required for customs clearance (invoice and documents of origin e.g. EUR.1, ZU, Form A, A.TR, etc.) to MTB in good time before the delivery arrives.

In the case of stock procurement, which follows an analogous procedure (see section 3.7), as well as in the case of individual procurement with or without warehousing, Ship to Line (overland deliveries only) and Vendor Managed Inventory (overland deliveries only), MTB performs customs clearance as standard when the goods arrive at the recipient MTB plant.

If the supplier is located within the MTB area freight forwarding network, delivery in the case of stock procurement, individual procurement with or without warehousing and Vendor Managed Inventory shall take place with Incoterm “FCA supplier plant”. In this case, MTB is responsible for physically transporting the goods to the recipient MTB plant and also for customs treatment upon cross-border transport by placing the goods in a transit procedure (T1).

If the supplier is located outside the MTB area freight forwarding network, delivery shall take place with Incoterm “DDU or DAP MTB plant”. In this case, the supplier is responsible for physically transporting the goods to the recipient MTB plant and also for customs treatment upon cross-border transport by placing the goods in a transit procedure (T1).

The Incoterm “DDU or DAP MTB plant” is always used within the context of the Ship to Line delivery standard (see Figure 11).

4 As required by law, no value-adding activities such as pre-assembly, painting etc. may be performed in the customs

warehouse. In such cases, an additional service provider must be engaged by MTB (see Section “Non-EU delivery using JIS/JIT 2-stage”). For the customs warehouse procedure, see Article 84ff. and 98ff. of the European Community Customs Code and Article 496ff. of the Customs Code Implementing Regulation.

5 See Art. 37-57 of the European Community Customs Code. 6 Potential reasons may be: (1) The supplier or service provider commissioned by the supplier operates the contract

warehouse in the EU as a customs warehouse, and the range of services requested by MTB includes value-adding activities. (2) The supplier or service provider commissioned by the supplier cannot perform the range of services requested by MTB.

M 3399 : 2012-09

6.5.2 Supplier is based in the EU If the supplier fulfils this requirement, he shall be responsible for customs clearance for goods delivered from outside the EU, regardless of the delivery standard selected. If delivery takes place with the JIS/JIT contract warehouse delivery standard (which also applies analogously for stock procurement), the supplier shall be responsible for customs clearance of the goods before removal to the contract warehouse. When determining which Incoterm is to be used, a distinction is also made for suppliers based in the EU on the basis of which supplier branch has a contract with MTB:

There is a contract in place with the supplier branch that is based within the EU: Delivery takes place using the Incoterm “FCA contract warehouse” (analogous to EU delivery).

There is a contract in place with a supplier branch based outside of the EU: Delivery takes place using the Incoterm “DDP7 contract warehouse” (analogous to EU delivery).

In both cases, the supplier is responsible for physically transporting the goods to the contract warehouse and for customs processing by release of the goods to enter free circulation. The supplier shall always be responsible for loading the goods in the outgoing goods department of the contract warehouse.

The EU delivery regulations apply analogously for all the other delivery standards. In all cases, the supplier based in the EU must provide MTB with a supplier declaration for goods with preferential origin status in accordance with EU Regulation 1207/2001 or a supplier declaration for goods without preferential origin status.

6.6 Delivery documents and EDI communication in the shipment process It is assumed that the supplier already has the facilities in place to support electronic data interchange (EDI). The supplier must be EDI-capable for this purpose; subject to agreement with MTB, connection via the MTB WEB-EDI portal is also possible. Further information is provided in the MTB EDI or Web EDI starter pack, which can be downloaded from the MTB supplier portal.

6.6.1 Delivery documents for transport and delivery The delivery documents to be used for delivery and transport must comply exclusively with the VDA standard or DIN specifications stipulated by MTB and be provided in the required quantity as per the following table: It may be necessary to supplement these with hazardous material or BAFA documents.

Table 2: Required transport documents

International transport Required transport documents National transport

EU Non-EU

Int. CMR consignment note - 2 3 Forwarding instruction/waybill in acc. with VDA 4922

2 2 2

Delivery note DIN 4994 or EDI goods receipt/issue slip in acc. with VDA 4912

2 2 2

Customs documents - - 2

Transport responsibility with MTB: All required delivery documents must be handed over to the MTB freight forwarder in paper form upon collection. If the delivery documents are not provided in the correct form or quantity upon collection, the MTB freight forwarder is instructed to refuse acceptance of the goods. Any costs resulting from acceptance refusal (standing times, empty journeys, etc.) will be invoiced to the supplier directly by the MTB freight forwarder.

Transport responsibility with the supplier: All required delivery documents must be presented in paper form upon delivery at the incoming goods department. If the delivery documents are not provided in the correct form or quantity upon delivery, the MTB incoming goods department reserves the right to refuse acceptance of the goods.. Any costs that are incurred by the supplier's freight forwarder (standing times, empty journeys etc.) or in the incoming goods department as a result of acceptance refusal must be borne by the supplier.

7 DDP – Delivered Duty Paid: The vendor supplies the purchaser with goods released for import at a specified destination

on the incoming means of transport without unloading. The vendor bears all costs and inherent transport risks up to this point, including any that relate to the duty required to import goods into the destination country (see Incoterms 2010: ICC official rules for the interpretation of trade terms, p. 125).

M 3399 : 2012-09

6.6.2 Delivery papers via EDI The delivery note (either VDA 4913f8 or EDIFACT DESADV) shall be sent via EDI to the recipient MTB plant in good time, and at the latest when the goods are dispatched. In the case of JIS/JIT deliveries, the EDI goods receipt/issue slip, the freight order and a chassis number-related loading list must be submitted with the delivered goods in the incoming goods department. Delivery scopes relating to initial sample inspections must be listed on a separate delivery note. Delivery standards (see 6.2) must be correctly recorded and sent. If load carrier containers are used, all container components of a loading unit corresponding to the delivery standard must be included with the correct container item number. Delivery papers must be generated and trucks loaded in relation to specific offloading points.

6.6.3 Invoicing via EDI The format VDA 4938 EDIFACT GLOBAL INVOIC or invoices with qualified electronic signature must be used in all cases. The format VDA 4906 can be used until 31.12.2012 in the case of corresponding country-specific legal requirements.

6.7 Quality of the delivery In accordance with Packaging guideline M 3338, the supplier is obliged to deliver clean and undamaged parts and load carriers. When goods are received, MTB will carry out the following checks:

Comparison of the freight order with the truck load

Visible damage

Number and quality of load carriers Load carrier use and empties process

8 In the case of the call-off control, as described in Section 5.1.1.1 (JIS call-offs in the EDIFACT-DELJIT format) it is

essential that the trailer ID issued by MTB, the trailer's vehicle licence number and the anticipated time of arrival are stated.

M 3399 : 2012-09

7 Load carrier use and empties process

7.1 Load carrier financing and development

7.1.1 Universal load carriers MTB performs development, procurement and financing of universal load carriers (ULT). Sections 7.2 and 7.5 define the permitted uses of these load carriers and the maximum number of load carriers that are available within the context of a supply relationship between the MTB and a supplier.

7.1.2 Special load carriers The supplier is responsible for the development, financing and procurement of special load carriers (SLT). For this purpose, MTB provides the supplier with the technical specifications (e.g. fire protection requirements, transport requirements and technical production requirements) as well as quality requirements for the carrier material and design in the MAN Load Carrier Standard M3301. Each new special load carrier and any change to a special load carrier must be agreed with and approved by MTB.

The supplier shall bear the development costs. The necessary investment and associated depreciation, as well as the maintenance, cleaning and repair of the special load carriers, shall be agreed in writing in accordance with an approved refinancing concept. The precise form of the contract for financing special load carriers shall be determined on a case-by-case basis on conclusion of the contract. Any related costs shall be passed on in accordance with the applicable agreements in place between MTB and the supplier. In all cases, details of the relevant calculation must be provided. This calculation must include a jointly defined container quantity plan, based on range and requirements. The regulations defined in sections 7.2 and 7.4 also apply. The supplier is responsible for obtaining the containers punctually, three weeks in advance of the production programme.

7.1.3 Packaging material One-way packaging used as protection for parts shall, without exception, be developed and paid for by the supplier. Universal load carriers with special reusable inserts are classed as special load carriers. Development and financing of these universal load carriers with special inserts is therefore normally the responsibility of the supplier. The precise form of the contract must be elaborated on an individual basis in all cases.

7.2 Load carrier use and quality The following applies:

Load carriers are only to be used for the respective product ordered by MTB.

Load carriers are to be used exclusively for the warehousing and transport stages that are defined in the range model (from the last loading edge of the plant producing the goods).

Load carriers are not to be used for the procurement and warehousing of raw materials, individual parts, semi-finished parts, etc.

The use of load carriers for pre-production is not permitted; deviations must be expressly approved in writing by MTB (MTB item number, load carrier type, number of load carriers, duration of the approved deviation). Sub-contractors must not be provided with load carriers financed directly or indirectly by MTB.

The provisions of M 3301 also apply for load carrier quality.

7.2.1 Load carrier handling Large load carriers (GLT) and special load carriers (SLT) are made available to the supplier "broom-

clean" (i.e. loose packaging residue removed, coarse soiling cleaned) Small load carriers (KLT) are always provided to the supplier washed. Foldable load carriers are sent folded in empties transport and must be folded open correspondingly

be the supplier for use. The following is not permitted when using the load carriers:

o Pushing the load carriers with a lift truck fork is prohibited. o The maximum stacking height must not be exceeded.

The supplier must take suitable protective measures to prevent corrosion and contamination.

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7.2.2 Container maintenance If the supplier receives dirty empty load carriers from MTB (see 7.2.1), the soiling must be documented

directly upon delivery and the MTB plant that sent the empty load carriers notified immediately. If proof of the existence of soiling at the time of delivery cannot be provided, culpable soiling of the load carriers by the supplier will be assumed. In this case, the supplier must perform further measures at his own cost.

Only the current goods tag may be affixed to the load carrier in order to avoid mixing up parts during the process. The supplier must remove any old tags.

For load carriers with a card pocket/clamping plate, the tag must be attached in this. Otherwise the goods tags must be attached using only textile adhesive dots as per the latest version of VDA 4500. The load carrier may be damaged if labels are affixed using adhesive. The additional costs incurred due to the container damage and the removal of the labels must be borne by the supplier.

7.3 Use of the MTB web-based container management system The supplier is obliged to use the web-based container management system (MN-CM) of MTB for the following tasks:

Call-off of empty containers (see Section 7.5)

Check of account balances (see Section 7.8)

Load carrier inventory (see Section 7.8)

The supplier is obliged to keep his contact details, in particular his e-mail address, up-to-date at all times and regularly call up the information provided in MN-CM. Any failure to perform updates which can be attributed to the supplier shall be at the supplier’s expense.

7.4 Call-off of empties from MTB Each supplier plant is assigned to a unique main supply plant. All communications relating to load carrier requirements should be addressed to the assigned MTB main supply plant. The supplier is responsible for calling off empty containers in good time from his assigned MTB main supply plant. Should the supplier cause a lack of empty containers as a result of omitted orders, delayed or incorrect orders or orders of reduced quantities which can be attributed to him, the supplier must still fulfil his delivery obligation to MTB and must arrange delivery in alternative packaging (see 6.1). The supplier must bear any additional costs incurred by the recipient plant as a result.

Call-off shall take place based on the empty container management process as per VDA 5007. Suppliers shall call off empty containers in advance using the web-based container management system of MTB.

Fig. 12: Online order form for empty containers

M 3399 : 2012-09

Empty containers must be called off in accordance with the following ordering deadlines.

Table 3: Location/deadline for calling off empty containers

Supplier's site (production site or contract warehouse) at which containers are required (last loading edge)

Deadlines for calling off empty containers

In Germany or Austria At least 5 working days *) prior to the date of delivery of loaded containers to MTB

In the country in which the main supply plant is located At least 5 working days *) prior to the date of delivery of loaded containers to MTB

Not in Germany, Austria or the country in which the main supply plant is located

At least 8 working days *) prior to the date of delivery of loaded containers to MTB

*) Working days are Mondays to Fridays, excluding public holidays in the country/state in which the main supply plant is located

7.5 Empty container call-off quantity The supplier defines the number of empty containers to be called off each working day. However, this quantity must not exceed a specified maximum stock for the supplier.

7.5.1 Calculating the maximum stock of empty containers held by the supplier The maximum stock of empty containers held by the supplier is calculated on the following basis:

Container stock range held by supplier

Maximum stock of empty Container requirements per working day= *Containers held by the supplier [Container / working days]

[Working days]

7.5.2 Calculating container requirements per working day The container requirement specifies the quantity of containers required per working day to be able to deliver the called-off delivery batches to MTB. The applicable container requirement is calculated using the following formula:

7.5.3 Calculating the container stock range of the supplier The container stock range of the supplier is specified in working days and covers the maximum container turnaround time at the supplier. It includes transport ranges for empty and full deliveries as well as a range for establishing an empties reserve buffer and a stock range for finished goods called off from the supplier by MTB (see Fig. 13). Supply of sub-contractors with MTB-owned containers is prohibited and is therefore not included in the container stock range. The internal container range in the MTB plants is also not taken into account in the container stock range for universal load carriers.

Fig. 13: Container stock range

[Part / working day]= Packing batch

[Part / container]

Material requirementsContainer requirements per working day

/

MAN plant

Container stock range for buffer of empty containers

Sub-supplier Container

KeyKeyMTB plant

Container stock range for MTB plant

Transport range for full containers

Sub-supplier Supplier Part of the container

stock range at the supplier Container stock range

for sub-supplier Container stock range for finished goodsNot part of the container stock range at the supplier

Transport range for empty containers

M 3399 : 2012-09

The maximum container stock range is calculated for each supply relationship by MTB and can be obtained by the supplier from the central department for container management. The transport ranges and thus also the container stock range may be adapted by MTB as part of process optimisation at MTB or reduction in transport times. The supplier undertakes to inform MTB immediately whenever it has carried out process optimisations of its own that similarly result in a reduction of the stock range.

The following binding principles apply for calculation of the overall container stock range for each supply relationship:

Beh ä lterbestandsreiche des Liefer

7.5.3.1 Transport range for full and empty containers The transport ranges for full and empty containers are defined in the Shipping instructions.

7.5.3.2 Container stock range for the supplier’s empty container buffer Each supplier must agree a delivery frequency for empty container deliveries with the relevant main supply plant of MTB. To guarantee an optimum supply of empty containers, even when the delivery frequency is low, the container stock range within the container cycle includes a buffer of empty containers. The level of this buffer of empty containers in the container stock range depends directly on the frequency of the empty container deliveries (see Table 4).

Table 4: Container stock range in the empty container buffer

Empty container delivery intervals Container stock range for the supplier’s empty container

buffer

Daily 1 WD

Four times a week 2 WD

Three times a week 3 WD

Twice a week 4 WD

Weekly 5 WD

Fortnightly 10 WD

Every three weeks 15 WD

Monthly 20 WD

7.5.3.3 Container stock range of finished goods at the supplier’s site This container stock range defines the range for those containers at the supplier’s site which are required to store the safety stock and the finished goods ready for dispatch to MTB. The container stock range for finished goods at the supplier’s site generally amounts to 3 working days. Any deviations shall be agreed in the Logistics Agreement.

7.5.3.4 Calculating the container stock range for special load carriers in the container cycle The container stock range for special load carriers and the related quantity of containers to be procured will be defined individually upon contract conclusion and agreed between MTB and the supplier. The basis for this is the MTB range model (see Section 7.5.3).

To enable suppliers to make calculations, the relevant MTB specialist departments will provide them with the necessary information about the components of the container cycle for which MTB is responsible. This applies to the following components:

Transport time of loaded/empty containers

Period of time during which the containers remain at the recipient MTB plants

- weit anten

[Arbeitstage]

Tr n ansportreichweite(Voll - und Leergut) +

[Arbeitstage]=

Behälterbestandsreichweite Leergutpuffer des +

Liefera e]nten [Arbeitstag

Beh ä lterbestandsreichweite Fertigwaren beim

Lieferanten [Arbeitstage]

Container stock range of the supplier

[Working days] (Full and empty containers)

[Working days]=

Container stock range for the supplier’s empty container buffer

[Working days]

Container stock range of finished goods at the supplier’s site

Transport Ranges + +

[Working days]

M 3399 : 2012-09

Period of time during which the containers remain with service providers commissioned by MTB (e.g. for sequencing)

All other components of the container cycle (period of time during which the containers remain with the supplier etc.) shall be planned independently by the supplier, who shall disclose the relevant details.

7.6 Supply security (under- and oversupply) In order to optimise transport costs, MTB is allowed to oversupply the supplier. In all cases, the supplier must provide adequate storage space for empty containers. If an oversupply occurs or the containers are tied up for a lengthier period of time (current stock greater than target stock) for reasons attributable to the supplier, MTB reserves the right to invoice the supplier for the costs incurred. Should the container range be undersupplied, suppliers are permitted to remove defined load carriers from their own stocks and include them in the delivery cycle. If MTB is unable to provide a standard container in the short term, the supplier must agree on a deviation from the standard process and, where applicable, agree any associated costs together with the contacts at the main supply plant, and obtain written approval of this (e.g. definition of an alternative container for universal load carriers).

7.7 Container account statement/load carrier inventory MTB will send a container account statement containing details of the stock and movement data for the previous month via the MTB container management system (MN-CM) by the 2nd calendar day of each month. The list of supplier-owned load carriers on the container account statement is provided for information purposes only. The supplier shall be obliged to check the account statements carefully for any missing or incorrect entries. The supplier must notify MTB of any complaints via MN-CM by the 15th calendar day of each month. Complaints must be backed up with corresponding proof (e.g. delivery notes). If MTB has not received any complaints via MN-CM by the above deadline, the stock levels in the statement shall be deemed binding and to have been accepted by the supplier. MTB shall process any justified complaints by the end of the relevant month.

The MTB container account statement shall not represent a basis for offsetting stock differences relating to supplier-owned load carriers by the supplier. A precondition for offsetting shall be a stock management process for these supplier-owned load carriers agreed in writing between MTB and the supplier.

The supplier and MTB shall carry out a joint stocktaking exercise annually on a set date in respect of the containers. On this set date, the supplier is obliged to count all the load carriers of MTB and to enter this information in MN-CM within the specified deadline. This stocktaking report is binding – changes are not possible after expiry of the input period, also not within the scope of the complaints process. All the costs associated with the supplier’s involvement in the stocktaking exercise shall be borne by the supplier at no expense to MTB. MTB shall provide information well in advance concerning the stocktaking date and procedure. If the supplier has not received any requests for a stocktaking exercise by 1 December each year, the supplier is obliged to request the relevant dates from MTB. If a supplier fails to report his inventory stock by the deadline specified by MTB in the stocktaking process, MTB will work assume that the supplier has no load carrier stock. As a result, all load carrier stock of the supplier will be set to nil in the account.

In the event of inventory differences i.e. deviations between the counted stock and system stock, MTB reserves the right to charge the supplier for compensation in the amount of the price for the re-procurement of the stock, provided the supplier is responsible for the negative deviations (e.g. breach of the above-mentioned obligations to report). MTB reserves the right in justified cases to check the number of load carriers held by the supplier on site. This check shall be carried out at the supplier's expense on the basis of the costs incurred.

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8 Supplier evaluation

MTB will carry out a logistical evaluation of its suppliers every quarter. As part of this process, performance indicators from the Purchasing, Quality, Technical and Logistics departments will be determined and incorporated into an overall evaluation.

Logistical 15%

Supplier factors

Supply quality

Logistics factors with weighting

EDI connection

Quality factors

Purchasing factors

Logistical supply quality

Quality ranking

Supplier factors

15%

"Hard facts" 85% share

Correct fill qua

ntity

Over-d elivery, m

aintaining the corridor

35%

10%

30%Level of fulfilm

ent on V

MI parts

25%A

rrears, maintaining the

corridor

Missing parts / sequence

infringements

33,3%

33,3%

33,3%C

all-off ED

I

Delivery note E

DI

Invoice E

DI

Supply quality

Accessibility

Adh

erence to agreed

actions

Flexib

ility on short-

term req

uirem

ents

Proactive

behavio

ur for de

livery proble

ms

40%

25%

25%

10%

Flexib

ility on packag

ing

changes

Proactive

behavio

ur for delivery prob

lems due to

container supply

Adh

erence to agreed

actions

40%

40%

20%

Proactive

behavio

ur

30%

"Soft facts" 15 % share

30%

40%

Willing

ness to cooperate

Reliab

le delivery

50%

Correct packag

ing50%

VD

A-con

form

labellin

g C

omp

lete ED

I advice C

orrect, comp

lete delivery

papers (e.g. conforma

nce w

ith conta

iner quantity

supplied) 40%

40%

20%

Ma

teria

l m

an

age

me

nt

eva

luatio

n

30

%

50%P

hysical supply quality

50%

Technical factors

Logistics factors

50

%

Disp

ositio

n

eva

luatio

n

20

%

Lo

gistics p

lann

ing

e

valu

ation

Information

supply quality

45% 25%

Fig. 14: Performance indicators for the logistical supplier evaluation

As the highest level of the logistics performance indicator system, four performance indicators are determined for each supplier (see Fig. 14). These are the supply quality, the EDI connection, the logistical delivery quality and a quality ranking based on a subjective evaluation by MTB employees. The evaluation of these four indicators results in the overall picture of the logistical capability of the supplier.

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9 Breach of contractual obligations

MTB considers the following to be a breach of contractual obligations:

Over-delivery: The quantity delivered exceeds the quantity called off/ordered.

Under-delivery: The quantity delivered falls short of the quantity called off/ordered.

Excess delivery: The quantity delivered exceeds the quantity specified on the delivery note.

Short delivery: The quantity delivered falls short of the quantity specified on the delivery note.

Early delivery: Delivery takes place before the time specified in the call-off/order.

Late delivery: Delivery takes place after the time specified in the call-off/order.

Incorrect consignment

1. Delivery of other goods = different goods (incorrect items) to the ordered goods are delivered,

2. Incorrect location/delivery without order = the goods are unloaded at the wrong location or there is no order for the delivered goods.

Quality defect: The delivery does not meet the agreed quality requirements/the general quality requirements of MTB.

Delivery of damaged load carriers:

Use of unspecified load carriers: For reasons attributable to the supplier, delivery is made in containers that are different from the ones agreed with MTB.

Claims in respect of liability for defects are governed by the provisions in the General Purchasing Conditions for Production Material and Spare Parts for Commercial Vehicles and in Standard 239-5 Liability for Defects. For any other cases of a breach of contractual obligations by the supplier as mentioned above, the parties additionally agree on the following provisions.

9.1 Missing parts process Parts that are missing at the scheduled delivery time may make it impossible for a part to be used in the logistics and production process at the scheduled time, and in doing so become so-called missing parts. This may be caused by late deliveries, deliveries in containers that are different from those specified or deliveries in damaged containers.

Damaged parts or quality defects are material defects whilst under-deliveries, short deliveries or incorrect deliveries (incorrect items) equate to a material defect. Material defects or circumstances equating to a material defect are governed by Standard 239-5 Liability for Defects (hereinafter referred to collectively as “material defect”). If there is a risk of a missing part due to a material defect, the following measures must be implemented:

1. The recipient MTB plant shall notify the supplier in advance, either verbally or in writing.

2. The recipient MTB plant shall carry out a check, in conjunction with the supplier, to determine whether the goods can be used following rework or whether they need to be scrapped or returned. If the part cannot be used or if parts are missing, the supplier shall immediately redeliver the relevant parts.

3. The recipient MTB plant shall decide, depending on the supply situation, whether or not a special consignment (see section 6.4) is necessary for redelivery. The costs associated with this consignment shall be borne by the party responsible.

Insofar as it is deemed necessary to deploy supplier service personnel at MTB premises, MTB shall inform the supplier of this in writing and the supplier shall immediately provide the required service support to MTB at no charge.

9.2 Default If the supplier fails to perform his obligations in accordance with the Logistics Standard and Logistics Agreement - if concluded - or does not perform them on time or as agreed, this may result in missing parts (see Section 9.1).

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MTB reserves the right to charge the secondary costs incurred to the supplier, provided the supplier is responsible for the missing part.

The secondary costs in the case of missing parts cover the assembly and handling costs necessary for retrofitting (evaluation on a time and material basis) and the costs of sequence violations (blocking of orders within the model mix).

Payment shall be covered by a lump-sum of €500 per vehicle, module or unit or, in the case of spare parts, of €500 per vehicle per day in the case of a customer backlog (when a customer order for spare parts cannot be filled). The lump-sum takes into account all necessary adjustments or modifications in the logistics and production process or, in the case of spare parts, any claims for damages relating to spare parts that are submitted as a result of customer vehicle downtime.

In addition, there is a flat rate processing charge for the administrative expenditure involved in creating a defect notification or debit note amounting to €200 per case.

MTB reserves the right to charge for additional costs, e.g. postponement of scheduled customer delivery dates due to supply bottlenecks or additional costs in order to ensure compliance with customer delivery dates.

The secondary costs shall be set at a higher or lower amount if MTB proves that a higher loss has been incurred or the supplier proves that a lower loss or no loss at all has been incurred.

9.3 Returning/sending back parts, over-delivery In the event of over-deliveries and excess deliveries, deliveries before the agreed-upon delivery date or delivery without an order or to the incorrect location, MTB reserves the right to charge a lump sum of €200 per item number per delivery, provided the supplier is responsible for this. MTB also reserves the right to return the delivered parts to the suppliers on a carriage forward basis, to store the surplus quantity at the expense of the supplier or to keep the surplus quantity. The parts shall be sent back immediately on a carriage forward basis and the supplier invoiced for the costs and for any internal effort that may have been involved. MTB reserves the right to keep the over-delivered quantities and charge the supplier the lump sum of €200 per item number per delivery. Where applicable, any deviating agreements from this shall be defined in the Logistics Agreement (e.g. direct scrapping or self-collection).

9.4 Logistical supply quality If the supplier deviates from the agreed-upon delivery standard (see Section 6.2), MTB reserves the right to charge the supplier for the additional expenditure and costs incurred as a result (transport costs, repacking, additional handling, disposal etc.), provided the supplier is responsible for this. This also applies to deliveries on non-approved mixed pallets, insufficient labelling, missing or incomplete delivery or customs papers or deviating quantity or weight information.

9.5 Repair/ replacement of damaged load carriers If the supplier damages MTB containers or brings damaged containers into circulation, the costs for repairs or replacements shall be charged to the supplier plus a lump sum of €200 per delivery note, provided that the supplier is responsible. If repacking is necessary, the costs listed in Section 9.4 will also be charged. Damaged containers belonging to the supplier will be rejected in the MTB receiving department and/or additional costs incurred will be charged, if applicable.

The following damage criteria, in particular, are checked:

the container is distorted, e.g. stacking is difficult/not possible

the hinges and/or flaps are stiff, the latches do not engage

the side walls are distorted and/or cannot close

the load carriers (open pool, see Section 9.6) do not correspond to the EPAL criteria, e.g. the "EUR" mark is only printed and not embossed, the quality seal is missing.

The container feet are bent, the container is unstable.

If the supplier receives damaged empty load carriers from MTB, the damage must be documented directly upon delivery and the MTB plant that sent the empty load carriers notified immediately. If proof of the existence of damage at the time of delivery cannot be provided, culpable damage of the load carriers by the supplier will be assumed. The provisions of M 3301 (Sections 6.3 and 6.7) apply to the load carrier quality.

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9.6 Participation in the open container pool/use of counterfeit load carriers If the delivery standard agreed between MTB and the supplier includes the use of so-called "open pool" containers, the supplier is obliged to replace mesh boxes, Euro pallets and small load carriers only in accordance with the latest specifications from the European Pallet Association and VDA 4500. The use of counterfeit load carriers is prohibited. MTB reserves the right to charge the costs for replacements or other arising demands/compensation claims to the supplier in the event of any contravention of this provision, provided the supplier is responsible for this.

9.7 Clarification of responsibility If MTB establishes that a delivery carried out by an area freight forwarder is short, early, late or wrong, that the delivery involves a quality defect or has been made using damaged containers, MTB shall clarify whether it is the supplier or the freight forwarder that has failed to comply with the contractual terms and is therefore liable for the costs incurred. Therefore, the area freight forwarder’s drivers shall check that the number of load carriers provided matches the number specified on the delivery note and check for visible damage on the load carriers when they collect the goods from the supplier. They shall confirm with the supplier that the delivery has been correctly handed over in its entirety on the basis of a transfer note. The supplier shall be held responsible for deviations from the required quantity within a load carrier and MTB shall directly debit or credit the supplier for the discrepancy accordingly.

In the case of “free domicile” delivery, the supplier shall bear sole responsibility for any incorrect deliveries.

9.8 Lead material management (LMM) A lead material manager shall be appointed temporarily in the plant organisation (i.e. for the duration of a so-called lead case) if the supplier is no longer able to adequately meet his delivery obligations towards more than one MTB plant with the result that there is a risk of a supply bottleneck and/or breakdown. The supplier will be informed by the lead material manager about declaration of the lead case and shall then undertake to meet the following obligations:

The supplier undertakes to coordinate further deliveries with the LMM as the sole contact partner.

The LMM is responsible for the cross-plant supply and distribution of materials. However, the delivery to the individual plants continues to be controlled via material management in the plants.

The supplier is obligated to assume all costs related to the lead case such as travel or additional costs (see Section 9.2).

The supplier may be incorporated into an escalation process at the same time as the declaration of the lead case. The supplier will be informed by the LMM upon termination of the lead case.

Section in

the LS Calculation of additional expenditure/costs

in the case of: Lump sum or cost calculation

9.2 Missing parts, sequence violations €500 per vehicle, module, unit or, in the case of a customer backlog for spare parts, €500 per vehicle per day

9.2 Postponement of scheduled customer delivery date or additional costs to adhere to customer delivery date

in accordance with the costs incurred

9.2 Administrative cost to create a defect notification or debit note

€200 per case

9.3 Returning/sending back parts, over-delivery Return of parts on carriage forward basis and €200 per item number per delivery

9.4 or 6.1 Goods not delivered in agreed delivery standard or in: - non-approved mixed pallets - insufficient labelling - incorrect quantity or weight information, - missing or incomplete customs or delivery papers

in accordance with the costs incurred

9.5 Repair or replacement of damaged MAN load carriers in accordance with the costs incurred plus €200 per delivery note 9.8 Processing of lead cases (e.g. additional costs for travel) in accordance with the costs incurred

Fig. 15: Lump sum cost for default or defective/missing parts process

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10 Deviations from the agreed process

10.1 Changes

10.1.1 New parts and index changes Within four weeks of signing the framework contract relating to a new part or an order to carry out a technical change, a schedule for the delivery of the initial sample and of the series production parts (provided the initial sample is approved) must be submitted to MTB. If the delivery date for the initial sample cannot be adhered to, the MRP/Material Management department of the appropriate MTB plant must be notified in writing immediately, stating the new delivery date.

In the case of index changes, the relevant Material Planner/Material Manager must be notified in writing of the first delivery relating to a new index version.

The use of new parts or technically modified parts shall only be permitted if agreed with the MRP/Material Management department. The introduction and discontinuation of the parts is generally controlled on a project-specific basis by the employees responsible for pre-production rather than the series production support department. If no agreement has been reached, it must be ensured that a supply of parts in the existing form is available. Technical changes may only be integrated into production equipment once the necessary advance production has been jointly agreed.

Advance production must cover the time needed to change the production equipment and approve the initial sample, and must also include contingency time for programme changes or delays in the change procedure. The results of this coordination process must be recorded in writing and confirmed by both parties.

10.1.2 Changes of load carriers A proposal to change a load carrier may be originated by the supplier or by MTB. The supplier is obliged, in consultation with MTB, to optimise the packing density of the parts as well as the packing and removal processes. The change procedure is as follows: (Proposal by the supplier: steps 1-5; proposal by MTB: steps 3-5):

1. Submission of a change proposal by the supplier to the responsible materials planner / materials manager at its recipient MTB plants (see contact data in Section 11.4). This proposal must contain the following information:

Old load carrier and new load carrier

Old packing batch and new packing batch

Economic feasibility study

2. Internal consultation and evaluation of the change by the affected plants of MTB.

3. Information to the supplier with proposals for the delivery standard for confirmation of the containers and packing batches.

4. Written confirmation of the delivery standard by the supplier.

5. Notification of the supplier with regard to the changeover date.

The supplier must implement container changes and/or packing batch modifications without extra cost within 2 weeks of notice being given by the relevant department. From this date onwards, the supplier shall only send material in the new containers at the same or correspondingly lower cost rates. The defined delivery standard shall apply in each case.

10.1.3 Changes at the supplier The supplier must notify MTB in good time of any imminent changes. This shall apply to:

Transfer of production sites

Organisational and IT system changes

Changes in terms of vertical integration

Ways and methods of transmitting information

Changes in shipment handling

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Changes in contact persons

Changes in production and non-production days

In particular, the details of any production relocation must be agreed in good time (i.e. at least 6 months prior to the transfer) with the MTB Purchasing, Quality Assurance and MRP/Material Management departments. This shall take place within the context of a joint transfer discussion, coordinated by the Purchasing department of MTB.

For the purpose of carrying out the transfer, a detailed workflow and action plan must be developed and agreed with MTB. Adequate time must be allowed for advance production, auditing of the new production location and initial sampling. Changes in logistics, for example with respect to the delivery standard (see section 3), packing batch or load carrier type, always require approval.

10.2 Interruptions

10.2.1 Maintenance and repair of production equipment If production equipment needs to be removed from the series production process for maintenance or repair, this must be agreed in advance with the relevant Material Planner/Material Manager. This applies in particular to bottleneck areas where supply breakdowns can occur very quickly if call-off quantities increase.

If an MTB-owned tool is reaching the end of its service life, the Purchasing department of MTB must be notified in good time so that a new item of production equipment can be ordered, if required.

10.2.2 Interruptions to operation The supplier must inform MTB at least two months in advance of any planned interruptions to operation. If the shutdown is to last for several days, the necessary advance production must be agreed with the relevant Material Planner/Material Manager, if required. The supplier must still ensure that material is delivered to MTB on the dates specified in the call-off, even in the case of interruptions to operation. Over-deliveries shall not be permitted without the prior agreement of the Material Planner/Material Manager. It must still be possible to get in touch with the relevant contacts, even during the shutdown period.

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11 Appendix

11.1 Plant-specific additions

11.1.1 Nuremberg plant Concerning Section 3.7 Stock procurement: After each freezing process, the Nuremberg Plant will check

whether the material requirements for the frozen engines can be covered by the stock levels. For materials where this is not the case, MTB will issue a reminder via fax or e-mail. In this, the supplier will be advised the latest date for delivery to MTB in order to avoid a supply breakdown on the assembly line. As far as the materials specified in the fax/e-mail are concerned, MTB expects confirmation of the anticipated delivery dates on the same day. These faxes/e-mails are a tool for monitoring delivery dates. However, it is always the current delivery call-off that is definitive as far as delivery is concerned.

Concerning Section 6.2 Delivery standard: Only Euro wire mesh crates, Euro pallets 800 x 1200 mm and small load carriers can be accepted at the Nuremberg Plant.

Concerning Section 6.7 Quality of delivery: Parts prone to rusting must be protected against the elements when being delivered to the Nuremberg Plant, as unloading takes place outside.

11.1.2 Spare parts location Dachau Concerning Section 6.1 Load carrier definition: The Dachau location has to use load carrier 6428 (see the Overview of MTB universal load carriers) as it has automatic small parts warehouse and only this load carrier must therefore be used.

11.2 Notes on quotations

1. From an IT perspective, MTB is unable to implement its full range of services as stated in the Logistics Standard and Logistics Agreement at all its plants. This will be taken into consideration by the employee at each recipient plant who is responsible for producing the individual Logistics Agreement.

2. The supplier must indicate how the logistics costs have been calculated based on the Logistics Standard and Logistics Agreement.

11.3 Other applicable documents The following documents in their latest editions are binding in addition to the Logistics Standard and are available under the following links on the MTB homepage:

Address: http://www.mantruckandbus.com.

Area: Company > Purchasing & logistics >Supplier applications

Packaging guideline (After Sales, spare parts)

Starter Pack EDI Connection

Overview of MTB universal load carriers

MTB works standard M 3301 "Load carriers"

MTB works standard M 3338 "Packaging guidelines"

In order to receive information regarding changes to standards and guidelines automatically via e-mail, suppliers must register on this homepage (see MTB Works standard M 3335 "Provision of works standards for external users").

Shipping instructions for deliveries to the MTB. Distributed by MAN Purchasing because the instructions vary according to region.

The provisions contained in this standard have priority in the event of overlapping and/or contradictions with "Purchasing conditions for production materials and spare parts for commercial vehicles".

If further documents and/or items of information are also relevant, they shall be specified in the Logistics Agreement.

http://www.mantruckandbus.com/

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11.4 Contacts The relevant contacts at MAN shall be specified, together with the appropriate contact information, in the Logistics Agreement.

11.5 Quoted VDA guidelines VDA 4500 Small load carrier (KLT) system

VDA 4902 Goods tags (barcode-capable) / Important: basic document including the addition of further data

VDA 4905 EDI for supplier call-offs

VDA 4906 EDI for invoices

VDA 4912 EDI goods receipt/issue slip

VDA 4913 EDI for delivery note and transport data

VDA 4915 EDI for detailed call-offs

VDA 4916 EDI for call-offs synchronised with production (PAB)

VDA 4922 Printed form for goods dispatch between supplier, freight forwarder and customer - shipping order

VDA 4938 Global Invoice EDIFACT

VDA 5007 Working party on container standardisation – guide to container management

Previous issues: M 3399 / 2007-11, 2008-06, 2008-07, 2008-10, 2009-04, 2009-10, 2010-10, 2011-01, 2011-10

Changes: Compared to issue 2007-11 the following changes have been made:

- Section 3.1: Supplement to the regulation on commissioning in JIS/JIT standard process.

- Section 3.2: Supplement to include the option for the supplier to deploy a service provider, specification of the calculation process.

- Section 3.3: Clarification of the standards for call-off, transport and detailed MRP. Deletion of Figure 3.

- Section 3.8: Definition of overseas delivery via JIS/JIT contract warehouse and JIS/JIT 2-stage. Insertion of Figure 3 “Overseas delivery via JIS/JIT 2-stage”.

- Section 5.1.1: Supplement to transmission of call-off in standard delivery concept JIS/JIT contract warehouse.

- Section 5.1.2: Specification of recipients.

Compared to issue 2008-06 the following changes have been made:

- Section 1.1: Figure 1, types of scope of supply inserted

- Section 3: Updates to Figures 2 and 3

- Section 3.3: Insertion of Figure 4.

- Section 6.1: Clarification of delivery in segregated containers

- Section 7.1: Maximum fill weight for KLT corrected from 20 to 12 kg.

- Section 7.4.7.5: Completely revised

- Section 8.1: Definition of MAN standard, explanation inserted for deviating options.

- Section 10.1: Adjustment to flat rate processing charges.

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- Section 3.1: Additions made to Delivery from overseas section

- Section 3.2: Additions made to Delivery from NON-EU countries section

- Section 3.3: Additions made to Delivery from NON-EU countries section

- Section 3.4: Additions made to Delivery from overseas section

- Section 5.1: Structure of sections changed

- Section 6.2: Definition of label data fields also required for JIS delivery.

- Section 6.3: Complete revision of transport commissioning diagram.

- Section 6.4: Integration of new section into the Logistics Standard

- Section 6.5: Section completely revised and new bullet points created

- Section 7.4: Revision of “Location/deadline for calling off empty containers” table

- Section 7.5: Adaptations within whole section, including integration of how to calculate the container stock range for special load carriers

- Section 9: Reformulation and merging of the former section: “Damaged and missing parts process” as well as “Breach of contractual obligations”

- Section 11.3: A number of other applicable documents added


- Section 11.3: Additions made to links to Other applicable documents section


- Section 2: Correction: Link for supplier questionnaire.

- Section 3: Addition: delivery standard is defined together with the supplier.

- Section 4.1: Addition: The respectively current requirement forecast applies. Exact requirements are normally known for 17 working days.

- Section 4.2: Clarification: Temporary deviations to lead times in regular operation are communicated separately.

- Section 4.3: Clarification: Specification of quantity increase/reduction, in which time window and in which amount.

- Section 6.1: Addition: Supplier attaches consent for agreed-upon different packaging to load carrier in a visible location.

- Section 7.5.3: Addition: Obligation to inform in the case of modifications to stock ranges during the course of process optimisation.

- Section 7.6: Addition: Calculation of a usage fee in the case of container over-supply by the supplier.

- Section 9.1: Addition: Deployment of supplier service personnel in the event of complaints.

- Section 9.2: Clarification: Which default costs apply and when.

- Section 9.3: Addition: Costs for returns to the supplier and determination of a rate for over-deliveries.

- Section 10.1.2: Clarification: Container changes/packing batch modifications must be implemented by the supplier within 2 weeks at no extra cost. NAVI IT system integrated for container changes.

- Section 11.3: Clarification: Which other applicable documents apply in which version, and where these can be obtained.

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- Section 2.1: Clarification: Response from supplier within 24 hours for all general information requests by the MAN Truck & Bus Group.

- Section 4.4: Clarification: Storage location of the MAN safety stock.

- Section 5.3.1: Clarification: Short-term call-off changes during a working day.

- Section 6.1: Clarification: Definition of delivery standard Addition: Delivery of remaining quantities for batch-specific production.

- Section 6.2: Clarification: The labels must not be attached with adhesive.

- Section 6.3.1: Clarification: Package scope for journeys to sites and max. number of packages per dispatch day. Clarification: Commissioning and performance of special deliveries based on party responsible.

- Section 6.5.1: Addition: Determination and transfer of delivery standards when using load carrier containers.

- Section 7.3.1: Addition: Dealing with load carriers.

- Section 7.3.2: Addition: Container maintenance.

- Section 7.4: Addition: Use of Web-based container management system.

- Section 7.5: Clarification: Regulation for dealing with lack of empty containers.

- Section 7.6.3.4: Addition: MAN range model is the basis for defining the container stock range.

- Section 7.8: Addition: Dealing with inventory differences in container account statement and when stocktaking.

- Section 9.1: Clarification: Definition of missing part process relative to entire logistics and production process. Definition of liability for defects.

- Section 9.2: Clarification: The MAN Truck & Bus Group will assert claims for secondary costs in the missing parts process if the supplier is responsible for these. Addition: Secondary costs shall be set at a higher or lower amount if MAN proves that a higher loss has been incurred or the supplier proves that a lower loss or no loss at all has been incurred. Addition: Flat rate processing charges for administrative costs to create a defect notification. Addition: Payment of lump sum for modules and units as well as vehicles: Addition: Charging of additional costs required to adhere to customer delivery dates.

- Section 9.3: Clarification: Charging in the event of deviations from agreed delivery date option to return or send back parts.

- Section 9.4: Addition: Additional costs will be charged if they are attributable to the supplier due to delivery in non-agreed delivery standards, non-approved mixed pallets, insufficient labelling, lacking or incomplete delivery or customs papers or incorrect quantity and weight information.

- Section 9.5: Addition: Inspection criteria for damaged load carriers. Clarification: Cost invoicing for replacements.

- Section 9.6: Addition: Participation in open container pool / use of counterfeit load carriers incl. cost charging.

- Section 9.8: Addition: Definition and procedure for lead cases as well as overview of costs to be charged in the event of damaged or missing part process.

- Section 10.1.2: Addition: Obligation of the supplier to optimise the packing and removal processes in consultation with MAN.

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- In general: Change of company name from MAN Nutzfahrzeuge Gruppe to MAN Truck & Bus

- Section: 4.1 Requirement forecast, Figure 5, adjustment to long-term planning

- Section 6.3 Incoterms 2010, Figure 11, Responsibility for transport commissioning and transport responsibility

- Section 9.2: incl. Figure 17 Clarification: Administrative cost in the form of a defect notification or debit note.


- Section 1: Clarification of the validity of the delivery standards applied by the supplier

- Section 3.2: The supplier is also responsible for transport from the contract warehouse if the contract warehouse is located outside the area freight forwarding network.

- Section 6.3.1: Standard package shipment: Reference must be made to the valid shipping instructions in each case for details on the process.

- Section 6.5.1: Supplementation of the section Delivery documents for transport and delivery

- Section 9.2: incl. Figure 17: Text adaptation: Missing parts and sequence violations

- Section 11.4: Supplementation of quoted standards VDA 4500 and VDA 4938


- Section 1 and overall logistics standard: Supplementation of scope of validity by MTB subsidiaries

- Section 2.1: Relaxation of provisions on availability

- Section 3: Updating of graphics in relation to delivery standards of MTB

- Section 3.1: Change in imprecise description of JIT

- Section 4.1: Change in forecast period from 12 months to up to 12 months

- Section 4.2: Clarification of model mix dependence on location and division

- Section 4.4: Deletion of table of stock locations for safety stock

- Section 5.3: Relaxation of objection deadline in short-term area from one to two working days

- Section 5.4: Clarification of an incorrect description in relation to notification in the event of technical faults for JIS/JIT call-offs

- Sections 6 and 7: Section on load carrier definition (previously Section 7.1) now Section 6.1, corresponding moving of other sub-sections and renaming of the corresponding sections

- Section 6.1: Clarification of the terms ULT, GLT, KLT, SLT and addition of note on current overview of load carriers and additional packaging materials

- Section 6.2: Unambiguous definition of the term "Delivery standard" (also in Section 10.1.2), addition of only one container with remaining quantity per shipment and item number and supplementation of load carrier on delivery note.

- Section 6.6: Addition of possibility for suppliers to use the MTB web EDI portal and replacement of the old format VDA 4906 by VDA 4938 for invoice EDI.

- Section 6: Updating of Incoterms 2000 to 2010

-

- Section 7.3.1: Differentiation of handling of load carriers according to SLT, GLT and KLT

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- Section 7.3.2: Explicit statement that the supplier must perform container cleaning only if he is responsible for the soiling

- Section 7.4: Updating of online order form for empties

- Section 7.5: Text adaptation and detailed specification of the calculation formulae for maximum stock and container range

- Section 7.7: Detailed specification of the complaint and stocktaking processes

- Section 8.2: Deletion of the section on freight forwarder evaluation

- Section 9.5: Deletion of the section on corrosion

- Section 9.8: Tightening up of provisions for lead material management process

- Section 11.3 and overall logistics standard: Deletion of MAN 239 and purchasing terms and conditions as other applicable documents

- Section 11.5: Renaming to quoted VDA guidelines

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