Hella KGaA Hueck & Co. Concept for returnable load carrier in IAM. Status:

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1 KGaA Hueck & Co. Concept for returnable load carrier in IAM Status:

2 Seitenzahl / Number of pages: 8 Seite / Page 2 HP-GH Contents 1 Purpose and scope Purpose Scope and responsibilities 2 2 References to standards 2 3 Definition of terms / abbreviations 3 4 Description of content Returnable load carriers used Procuring returnable load carriers Alternative load carriers Responsibilities of distribution / purchasing Empties accounting Return of the returnable load carriers (empties) Delivery of sales companies or importers 4 5 Load carriers General Marking the load carrier Use of s own returnable load carriers Alternative packing 5 6 Control of returnable packaging and accounting Packing accounts Packing account set-up Common accounting information Postings and comparison of the packing account Packing accounts with forwarders Damaged empties / quantity differences in the delivery 7

3 1 Purpose and scope 1.1 Purpose This document generally regulates handling disposable and returnable load carriers (reusable packaging, returnable containers, recyclable packaging) in the aftermarket business division of the KGaA Hueck & Co., as well as the upstream and downstream processes and activities. From environmental perspectives, the aim is to transport as many as possible returnable load carriers provided this is practical both economically and ecologically. Alternatively, the respective disposable load carriers will have to be used. 1.2 Scope and responsibilities The concept described here applies to the sites of the aftermarket business division and the customer groups independent aftermarket (IAM) special original equipment (SOE) This concept does not include the area of supply of spare parts to the original equipment (OES) On the input side, the HP-C-525 applies if nothing else is stipulated. will inspect incoming deliveries in terms of compliance with the packaging guideline. Additional coordinated material-number related packing instructions (packing data sheets) must also be complied with. 2 References to standards DIN Pallets, pallet cages with 2 front-wall flaps DIN EN Production specification for pallets - Part 1: Manufacture of 800 mm x 1200 mm flat wooden pallets DIN EN Production specification for pallets Part 2: Manufacture of 1000 mm x 1200 mm flat wooden pallets HP-C-509 HP-C-525 materials Quality Assurance, Guideline for Suppliers Quality Assurance, packaging guideline for the purchase of production forms Packaging data sheet Calculation of the quantity in circulation of reusable packaging Agreement on the procurement and use of reusable packaging Loading appliances comparison (difference) Loading appliances request form

4 3 Definition of terms / abbreviations Pallet cage UIC pallet cage as per specification of the EPAL, also called DB pallet cage Euro pallet Euro pallet as per specification of the EPAL Industrial pallet Industrial pallet as per specification HD-HS Aftermarket department, Distribution GmbH HD-PMK / HD-PMD Packaging depot department / accounting, Distribution GmbH GH-LOG Logistics department aftermarket business division Load carrier Receptacle for transporting / handling goods. E.g. pallet, pallet cage, VDA-KLT, other transport containers Small load carriers E.g. VDA KLT, dimensions up to c. 600x400mm 4 Description of content 4.1 Returnable load carriers used The aftermarket business division primarily uses just 2 different types of returnable load carriers: Euro pallets: 800 x 1200 mm (DIN EN ) Industrial pallets: 1000 x 1200 mm (DIN EN ) Pallet cages and small load carriers (VDA-KLT) as well as special load carriers will be used only upon special customer request. If necessary, this use must be agreed in the run-up with Distribution (HD-HS) and GH LOG. If, in certain countries, other standardized load carriers are used as standard, these must be used analog to those mentioned above. 4.2 Procuring returnable load carriers The KgaA Hueck & Co. procures all the required load carriers specified above. If special load carriers are required, these can be procured by the customers. Deviating contractual regulations are possible, if necessary. 4.3 Alternative load carriers The use of disposable load carriers is permitted in individual cases provided this is economically and ecologically practical or is not applicable on the distribution side. Countryspecific regulations must be observed at all times. If possible, disposable load carriers in dimensions 1200 x 1000 mm (industrial dimensions) or 1200 x 800 mm (Euro pallet dimensions) must be used. It may be required to adapt disposable load carriers to the means of transportation e.g. transportation in overseas containers. The stability of the load carriers must correspond with that of the returnable load carriers.

5 4.4 Responsibilities of distribution / purchasing On the sales and purchasing side it must be ensured that the delivery and empties concept is regulated contractually or at least in writing with the customer / forwarder. Furthermore, in the run-up, Distribution (HD-HS) and GH LOG must be informed in writing regarding the delivery concept if special load carriers are required. 4.5 Empties accounting The empties accounting can take place either directly with the customer or with the forwarder. The decision must be made in coordination with the distribution and logistics departments. HD is instructed with the entire empties accounting and the activities associated with it. The customer / forwarder must establish a contra account for a regular comparison. 4.6 Return of the returnable load carriers (empties) The responsibility / assumption of costs must take place in accordance with the terms of delivery of the supplied goods. I.e. Ex works: The customer must return the empties to at its own cost At no charge: must return the empties at its own cost 4.7 Delivery of sales companies or importers By agreement with GH LOG, the 4R concept can be used for certain customers. In these cases the empties are not replaced or are returned to. In this case, part of the costs of replacing the empties / the reusable packaging must be born by the customer and part by. The customer can then take ownership of the reusable packaging. The 4R concept must be regulated separately. 5 Load carriers General Returnable containers are packaging that can be used several times without impairing the protective, transport, storage and turnover functions. Special arrangements are required to use returnable load carriers. The distribution department is obliged to agree with the areas HD-PMD / HD-PMK and GH LOG a detailed coordination for dimensioning the load carrier rotations, establishing the ownership conditions as well as the provision, taking inventory of and account managing the packaging.

6 5.2 Marking the load carrier load carriers are generally given an 8-digit identification number that is usually visible (apart from on industrial pallets, Euro pallets and pallet cages). If the customer s own returnable containers are being used long-term, an identification number must be requested from the packaging planning department. If possible, the identification number must be visible on the packaging. Alongside the quantity and description, the packaging identification number is considered basic information for the packaging and therefore must always be specified in the dispatch papers / packaging delivery notes (replaces the pallet identification voucher). 5.3 Use of s own returnable load carriers The load carriers submitted to customers must be used exclusively for the agreed rotations and materials. They must not be used for other purposes and must be released in a timely fashion. 5.4 Alternative packing If it is necessary to use alternative packing, this must also be arranged between the customer and the distribution. Alternative packing must also be documented on the delivery papers. 6 Control of returnable packaging and accounting If the returnable containers are the property of, the following points apply. If the returnable containers are the property of the customer / forwarder, the individual conditions apply or must maintain the respective contra account. 6.1 Packing accounts Packing account set-up Packing accounts are set up for every customer supplies with returnable load carriers. If necessary, accounts are established with the respective forwarder. For each item of packing, the customer / forwarder is given an independent packing account in which its customer number is assigned to the respective packing identification Common accounting information The access and exit of packaging is recorded in the packing account. After the account reconciliation, a physical inventory of the packing can be arranged for by (loading appliances comparison form, 2907). To record missing or destroyed packing and to compare the respective accounts, adjustment postings are carried out in order to ensure the closeness of the system.

7 The causer will bear the costs for the missing or destroyed packing, provided this was owned by Postings and comparison of the packing account The packing account coordination with the customer / forwarder is carried out by Distribution HD-PMK. If packing account coordination with the customer / forwarder does not bring about the desired result, Distribution HD-PMK must inform the Distribution / Purchasing department. This must then request clarification from the customer / forwarder. Each customer / forwarder for whom packing accounts have been set up will receive for each packing identification number a statement at fixed times (each month). This statement will stipulate the beginning and end balance as well as the movement data for the period that has just expired. An EDI statement is the preferred mode of communication. In exceptional circumstances a communication per is also possible (format: MS-EXCEL or similar table calculation format). The packing account statements must be checked by the customer / forwarder within 2 weeks after receipt and any differences must be proven by means of signed delivery notes / dispatch papers and reported to the packing management. The packing management of the account partner will then follow up the differences. If missing amounts are established without proof, the causer will have to pay the costs for replacing the packing / load carriers. If no confirmation is submitted after the deadline stipulated above, all documented inventory figures will be deemed recognized. Upon s initiation, but at least once per year, a physical packing inventory must be carried out. The inventory date will be established by. reserves the right to request additional interim inventories at any time. If additional packing / load carriers are located at the customer / forwarder, these must also be listed. If the inventory stocks are not established by the deadline, the account balances specified by will be considered binding.

8 6.1.4 Packing accounts with forwarders will manage packing accounts either with customers or forwarders. If packing is being used which is the property of the forwarder, then for this packing it must also be assured that the content of the delivery note complies with the documents (delivery note, way bill, label) and the data contents of the EDI. All the recyclable packaging must be listed on the delivery papers. The principles of the "Kölner / Bonner pallet changing procedure" must be observed. 6.2 Damaged empties / quantity differences in the delivery When packing is received, will check the condition of the empties and then reserves the right to charge the causer in the event of damaged empties being delivered. If load carriers in need of repair are delivered without the prior written approval of, the causer must bear the transport costs. Repair costs will be paid either in whole or in part according to the causer principle. If the customer / forwarder is supplied with damaged load carriers or if there are quantity differences in the delivery, proceed as follows. 1. Immediately provide mutual information via fax regarding the nature of the damage and quantity of packing about which the complaint is being made. Associated dispatch papers must be enclosed. 2. The two partners must then agree what happens next. The final decision as to whether the load carriers should be returned, repaired or disposed of will be made by (HD-PMD).

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