Supplier Compliance Guidelines. Supplier Training

Transcription

1 Supplier Compliance Guidelines Supplier Training

2 Current Cross-dock Network Currently, Lear uses a network of cross-docks to optimize inbound freight for its seating plants in North America. The network consists of five facilities: 1) Romulus, MI 2) Indianapolis, IN 3) El Paso, TX 4) Laredo, TX 5) San Luis Potosi, Mexico: (Launched June 2013)

3 EPMS Integration Electrical Power Management Systems (EPMS) will be joining the seating cross-dock network in 2013 Supplier compliance is crucial to success Consequences of non-compliance: Quality Notices (QN s) require submission of appropriate root cause analysis and corrective/preventive action Debits for associated costs and losses Downgrade on supplier scorecard

4 Current vs Improved Network Operations Current Process Routing orders rec d only when there is a change. Current cross docks with Central Transport Unmanaged pick-up windows and ship days One bill of lading per plant destination Improved Process Routing orders will be received weekly New cross docks with Linc Managed pick-up windows and ship days Combined bill of lading per shipment

5 Supplier Compliance Requirements 1. AIAG standard bar code labeling 2. Pallet stack-ability/standardized component packaging 3. Electronic Advanced Shipping Notice (ASN) : EDI Packing Lists, Bills of Lading, Commercial Invoices and Customs Paperwork 5. Supplier Routing / Packaging

6 1. Bar Code Labeling - AIAG AIAG bar code labels are required for every part Must conform to samples below, and contain all information Part number, quantity, and serial number are required for scanning Box labels and master skid labels are required Final Lear destination must be clearly identified Label Examples: Sample box label Sample master label

7 1. Bar Code Labeling AIAG (cont d) Mixed load label shall be used to identify multiple parts on one pallet shipping to a single plant For a pallet with mixed parts, a Master Label is required for each part Master Labels shall be placed on one side of the pallet where they can be easily scanned

8 1. Bar Code Labeling AIAG (cont d) Example - label locations on a pallet: 1) Individual Master Labels 2) Mixed Label 3) Container/Box Label 4) Packing Slip 4 *Each label should be easily accessible for scanning

9 1. Bar Code Labeling AIAG (cont d) Supplier ship-from location and final Lear destination are required in human readable fields Additional details can be accessed at (click on Supplier Information > Web Guides > Logistics Requirements for Suppliers > Supplier Packaging Requirements & Guidelines) AIAG training courses can be found at (select Training)

10 2. Packaging and Palletizing Requirements Pallets must be stackable up to a height of 102 and individual pallets cannot exceed 51 high. Pyramiding, box overhanging, brick stacking and center column stacking are unacceptable All pallets must be shrink-wrapped or banded (min of 2 bands in each direction) Pallets over 2,000 pounds must be banded using nonmetal banding

11 2. Packaging and Palletizing - Examples

12 2. Packaging and Palletizing - Examples Bad: Pallet height too high (tower loaded)

13 2. Packaging and Palletizing - Examples Good: Load dimensions = 47 x 45 x 50

14 2. Packaging and Palletizing - Examples Bad: Excess headspace in carton *Excess headspace is inefficient leading to crushed boxes and damaged goods

15 2. Packaging and Palletizing - Examples Good: Carton filled to capacity

16 2. Packaging Videos How to properly package What happens when you don t comply with packaging requirements

17 2. Packaging and Palletizing - Shipping Palletize in level layers to maximize stackability It is imperative that material for each Lear final destination is palletized separately Cross-docks will not break down and reconfigure pallets

18 3. Electronic ASN EDI 856 ASNs must be sent out within 20 minutes of shipment departure ASNs must be electronically sent to Lear s final destination. Each Lear part and quantity shipped requires an ASN for each plant. Plant Code / Name / Location MX02MO37 - Monarca (Cd Juarez, Mexico) MX02AZ79 - Planta Juarez (Cd. Juarez, Mexico) MX02TR48 - Planta Torres TR48 (Cd. Juarez, Mexico) MX02NOV2 Nova (Chihuahua, Mexico) MX02SI65 - Sicomoro/Americas (Chihuahua, Mexico) HN02NC72 Naco (Honduras) HN02HEHE - HEDS-214 (Daws-Honduras) PH02GM71 Cebu (Philippinnes) PH02GM71 Gabriela (Philippines)

19 3. Electronic ASN EDI 856 ASN required elements: 1. Part Number 2. Quantity 3. Trailer Number 4. Time & Date Shipped 5. Packing List Number 6. Lear Plant Destination 7. Shipment Gross Weight

20 3. ASN Submission Guidelines To find instructions for sending ASNs (EDI 856): 1. Visit 2. Click Supplier Information 3. Select Lear EDI Guidelines from the left menu 4. Select your region 5. Select your plant 6. Click the Dispatch Advice Guidelines file to access the detailed information

21 4. Required Shipping Documents The following documents are required to be sent to each final Lear destination: Packing list: (must match the ASN and must include the correct gross weight, must include Lear Plant, & must be attached to pallet in a packet) Commercial invoice: International Shipments Only (e.g. Brazil, Honduras, Argentina and Cebu) Bill of lading (Current process): (must be separate for each final location) Bill of lading (New Process): (must be one BOL for the entire shipment including all final locations) All documents must be printed (hand-written is not accepted) Drivers must be provided each document to present at cross-dock Commercial invoice / Packing list must be completed timely & accurately, and sent separately for each final Lear destination (a separate, exclusive document for each destination)

22 Single Plant BOL Current Process

23 Commercial Invoice - Example Invoice Number Invoice Date Shipper Name and Address Ship to (Consignee Name and Address) Mode of Transport (air, ocean, truck) Customs Broker at (if known) Sold to Party (if different than consignee) Notify Party Name and Address Transport Company Name Freight Terms (collect or prepaid) Terms of (FOB, CIF, Ex-Works, Consignment, Inter-Company Transfer, etc.) Currency of Description of Articles Quantity Unit Price Extended Price Country of Origin of Article: (Mandatory) TOTALS Signature of Shipper Phone Number of Shipper

24 4. Required Shipping Documents BOL s The Bill of Lading must contain the following: Description of Goods per Package Type of Package: Box or Pallet Dimension of the Package: L x W x H Unit of Measure: Meters or Inches Net Weight and Gross Weight Unit of Measure: Kilograms or Pound BOL s must also contain the Final Destination (Lear Plant) as well as the cross-dock address in the consigned area Examples: Correct consignee : Lear NACO 213 c/o Central Transport Incorrect consignee: Central Transport 921 Beiger St. 921 Beiger St. Mishawaka, IN Mishawaka, IN USA USA

25 4. Required Shipping Documents Packing List Packing list(s) must be consolidated per load, per plant The packing list must always refer to the related commercial invoice (if applicable) & must include: Lear Part Number Description of Goods per Package Type of Package: Box or Pallet Dimension of the Package: L x W x H Unit of Measure: Meters or Inches Net Weight and Gross Weight Unit of Measure: Kilograms or Pound

26 5. Supplier Compliance / Routing Info Global Logistics supplier routing instructions must be followed Instructions identify standard carrier, shipment day, shipment mode, detailed shipping requirements, etc. Upon receipt, instructions must be reviewed, signed, and returned If necessary, contact respective Lear plant for expedited shipping instructions (Premium Transportation Authorization # required) Contact information: 1. Ryder Kevin Robbins (krobbins@ryder.com / ) Francisco Rodriguez (francisco_rodriguez@ryder.com) / (81) Lear Transportation Operations Luis Perez (lperez04@lear.com / ) Ruben Lazo (rlazo@lear.com / ) 3. Lear Global Logistics Cheri Goodman (cgoodman@lear.com / )

27 5. Current Supplier Routing Instructions - Example Supplier Shipping Point Destination Point Supplier specific Ship day Mode of Transportation Shipping Requirements Must be signed & returned

28 5. New Supplier Routing Instructions - Example Destination Point Supplier Shipping Point Supplier specific Ship day Mode of Transportation Shipping Requirements Must be signed & returned

29 5. Supplier Routing - Additional Info Additional costs generated by missed ship-days or window times will be suppliers responsibility Additional costs generated by the use of incorrect transportation mode will be suppliers responsibility Routing instructions may change as a result of the EPMS integration into the Seating Division network.

30 5. Supplier Packaging Requirements Download Lear Supplier Packaging Requirements and Form2100 (Unit Load Data Ensure expendable / returnable containers meet Lear packaging requirements (failure to do so will result in rejection of packaging designs) Lear plants require an approved, standard packaging footprint for all parts All packaging must protect the quality of the part, optimize transportation, and optimize cost-per-piece Unit Load Data Sheet (ULDS) approval process: Send to Corporate Packaging Engineer for approval send to packaging@lear.com Matt msiakel@lear.com /

31 Additional Recommendations Prior to first shipment it is imperative to contact Lear to verify the following: Lear Designated Transportation Carrier & Customs Broker (if applicable) Confirm supplier routing instructions Documentation / EDI Confirm bill of Lading requirements Confirm commercial invoice details Confirm ASN and delivery window requirements Confirm overall EDI requirements / connections Packaging Confirm approved packaging design(s) & density(ies) Confirm minimum order quantity(ies) level pallet layers preferred

32 Closing Thoughts Your cooperation and compliance are crucial for a smooth integration Compliance is essential to both Lear and its suppliers. Failure to comply will result in QN s and may result in significant costs and losses 1. Primary contact: Anthony Salter asalter@lear.com / (Until 8/21/13) Carlos Ramos cramos04@lear.com / Secondary contacts: Joe Duran jduran@lear.com / Cheri Goodman cgoodman@lear.com /