Doing Business with Daimler Trucks North America LLC. A Supplier s Guide to a Successful Business Relationship with Daimler Trucks North America LLC.

Transcription

1 Doing Business with Daimler Trucks North America LLC. A Supplier s Guide to a Successful Business Relationship with Daimler Trucks North America LLC. Revision

2 Table of Contents Table of Contents Preface Welcome to Doing Business with Daimler Trucks North America (DTNA) Purchasing Purchase of Materials Requests for Quote from DTNA Purchase Contracts Other contracts edocs Financial Information Supplier Evaluation Cost Transparency Local Content (RVC) Requirements Tooling Tooling Introduction Tooling Ownership Tooling Quote Tooling Start-up Tooling Changes Communication Updating the Notification List Tooling Completion Invoicing Asset Pictures Dimensions and Weights/Programming Tooling Designs Tooling Process Sheets Payment Asset Tags Tooling Maintenance Refurbishment / Replacement Requests Rework/Modification QA Check Fixtures Tooling Moves or Resourcing Tooling Audit Scrap Tooling Quality Quality Prerequisite Proof of Certification PPAP Change Notifications Supplier Quality Contacts REV Daimler Trucks North America LLC 1

3 4.6 Rejects Corrective Action Process Campaigns/Recalls Reliability/Durability EBSC Masters of Quality Supplier Action Team Tooling Check fixtures Labeling Shipping Deviations Materials Management Introduction to Supplier Management, Launch and Change Management and Material Planning Changeover Material Supply Planning For Manufacturing (Aftermarket, see section 12) Manufacturing EDI Business Rules and Usage Engineering DTNA Engineering s Commitment to Suppliers General Expectations of Suppliers Safety Defect Investigations and Remedy Parts Development Expectations (prototype/test) Design and Process Risk Assessments CAD Information and Other Data Exchange Supplier Changes Consequences of Chronic Issues Supplier Innovation DTNA Returnable Containers, Production Parts Packaging, Labeling, and Shipping Guidelines Production Parts Packaging, Labeling, and Shipping Guidlines Returnable Containers DTNA Logistics Guidelines Accounts Payable Invoice (non ERS) Details Evaluated Receipts Settlement (ERS) Credit Memos Payment Terms Banking Instructions Debit Memos Disputes Statements Accounts Payable Contacts Accounts Payable Vendor Web Portal Accounts Payable Contacts REV Daimler Trucks North America LLC 2

4 10.0 U.S. Import Compliance Warranty Introduction Warranty Agreement Warranty Process Failed Parts Return Warranty Certification Program Warranty Rating Criteria For the warranty ratings criteria and detailed descriptions, please refer to the Masters of Quality section of the Supplier Quality Manual located at pdf Warranty Agreement (Example form) Customer Support/Aftermarket Purchasing Delivery and Availability Aftermarket Parts Packaging, Labeling and Shipping Guidelines Marketing Programs Sales Support Technical Support REV Daimler Trucks North America LLC 3

5 1.0 Preface 1.1 Welcome to Doing Business with Daimler Trucks North America (DTNA) To create and maintain a successful business relationship with Daimler Trucks North America (DTNA), many specific requirements must be addressed by suppliers. DTNA has an expectation to receive quality products and services in the right quantity, at the right price and at the right time. Understanding the meaning and detail of these expectations can be difficult, so we are providing our suppliers with this guide to help understand the key steps they can follow for a long-lasting and successful business relationship with Daimler Trucks North America. This guide outlines supplier expectations by presenting a logical progression of departments, events and documents that will be encountered when doing business with DTNA. We hope suppliers find it helpful and look forward to a mutually rewarding business relationship. Thank you for your interest in this guide and your service to Daimler Trucks North America REV Daimler Trucks North America LLC 4

6 2.0 Purchasing DTNA strives for a long-term oriented relationship with its suppliers based on mutual trust and shared business success. All sections in 2.0 refer to Production and Aftermarket purchasing unless specifically noted. 2.1 Purchase of Materials Production Parts Products currently used in production for the manufacturing and/or assembly of complete vehicles, sales cabs, or gliders at any DTNA production facility Production Spare Parts Products currently used in production or placed into production and sold by suppliers to DTNA for the repair or replacement market will be priced to DTNA at the same price specified for the production parts plus any incremental costs associated with packaging. The sum of the price of all sub-components for any given assembly should not exceed the price of the assembly itself Service Only Parts (Pure Spare Parts) Parts phased out of production are to be offered on a continuing basis to the DTNA repair or replacement market at the production price level in effect on the last day of use in production for a period of not less than three (3) years after the date of last use in production. Any agreed upon prices will take effect with a minimum 90 day delay from the date of final agreement. Price reductions are permitted with no notification to adjust to changing market conditions. Suppliers are required to provide post-production parts availability as outlined in the DTNA Standard Terms and Conditions. 2.2 Requests for Quote from DTNA As part of the ongoing development and improvement of our products, DTNA requires that suppliers quote new or modified parts. In order to participate in these business opportunities it is DTNA s expectation that suppliers comply with the following RFQ requirements: Timely response to the request as stated by the due date (normally: 2 weeks if no tooling required, 3 weeks if tooling required and up to 6 weeks for major projects which may require complex tooling/development or onsite presentations) RFQ format must be considered when responding. If DTNA RFQ format is used, quote is expected to be returned in that format, if request is transmitted via Source Package, response must be submitted in the same manner. Suppliers must consider DTNA s trade Program strategy when developing proposals, and to the extent necessary/appropriate, provide alternative sourcing strategies for differing regional content proposals REV Daimler Trucks North America LLC 5

7 Signed Warranty Agreement and Non-Disclosure Agreement must be on file or returned to DTNA Buyer before the RFQ proposal is submitted for consideration If tooling is required, documentation of all tooling costs, lead times and options must be submitted with the RFQ proposal 2.2 Purchase Contracts The Purchasing Contract is a general agreement which stipulates part numbers and prices as well as DTNA s required Terms and Conditions of purchase. Purchase Contracts are created for recurrent requirements such as parts needed for ongoing truck production. The Purchase Contract expires at the end of each year in which it is issued, unless stated differently. The agreement is renewed annually if it is expected that parts will continue to be purchased from the supplier. 2.3 Other contracts Successful suppliers will be expected to enter into any one of DTNA s standard form of contracts to manifest the intent and the agreements of a business relationship. Some of the more common are as follows: Warranty Agreement (required of all suppliers) Detailed information can be found in Section 11 of this guide Non-Disclosure Agreement Assures confidentiality between DTNA and supplier Development Agreement Documents all aspects and agreements during the development phase of a project prior to production Long-term Agreement Outlines annual cost reductions and/or efficiency improvement for the period of the agreement Documents a relationship lasting more than one year with a commitment to competitive pricing, acceptable quality and delivery performance For the Aftermarket, suppliers will be expected to enter into a long term agreement (LTA) for End of Series (EOS) parts and service only parts that will outline the future pricing model, annual cost reductions and/or efficiency improvements and delivery performance for the parts covered by the agreement. If a contract contains any development for custom data collection and/or delivery of data via hosted or directly to DTNA IT data centers, the purchasing contract provision must be extended to include provisions to clearly define ownership and rights to all the delivered intellectual property, trademarks and developed methodologies for exchanging data information between Supplier and DTNA servers. Terms for exclusivity of the technology and services must be clearly defined and meet DTNA standards. All transmission and hosting of data must meet DTNA Information Security and Data Protection standards. The contract must include a service level agreement (SLA) that defines the minimum acceptable delivery times and the downtimes of the IT host provided service. The contract must include provisions that should allow for an annual independent audit of the hosting data center and should grant DTNA the right to perform a SAS70 type audit of the hosting data center for the DTNA data. Prior to entering into the contract, the effectiveness of information security management must be assessed and should include processes that support generally accepted practices within the IT industry. For additional details, please review the Daimler Corporate Policy: Data Protection for Data of Customers & Partners via the following link: edocs edocs allows purchasing documents such as inquiries, orders or contracts originating from the DTNA purchasing system to be exchanged over the Internet with any required file attachments. Using secure REV Daimler Trucks North America LLC 6

8 functions, suppliers can confirm receipt of documents and acceptance of content or reply to inquiries with an online quote. Access to edocs is supplied via the Global Daimler Supplier Portal in Covisint. An application is provided including a neutral log-in procedure with administrative functions for business partners. Some of the advantages of using edocs are: Paperless contracting Confirmation of receipt and delivery based on online transmission Reduction of administrative workload Immediate notification of new parts on a contract Reduction of invoice discrepancies which can be caused by delayed reviews of pricing agreement The use of edocs is free of charge to our business partners. In order to become activated for edocs transmissions, please contact your purchasing agent to receive the required documentation and instructions. 2.5 Financial Information To avoid the interruption of product flow from our Suppliers, which could negatively impact manufacturing operations and delivery of product to our mutual customers, DTNA practices preventive supplier risk management. To accomplish this, DTNA conducts ongoing analysis of its suppliers' financial statements, supported by Creditreform Rating AG. Our suppliers are expected to provide information in the form of balance sheet and income statements on an ongoing basis. The data provided by our suppliers will be evaluated exclusively for our benefit and will not be made available to any other suppliers, customers, or agencies. The original and detailed data will be deleted immediately after the evaluation by Creditreform Rating AG and only summary data will be transmitted to Daimler. A Supplier may also be asked to provide additional information in the form of a current corporate presentation, including product portfolio, legal structure and customer structure. 2.6 Supplier Evaluation The intent of the supplier evaluation is to review and evaluate the performance of potential and existing suppliers in terms of the four value drivers: quality, cost, technology and supply. The supplier evaluation supports the pre-production and series production purchasing processes and provides an early indication of support needs for suppliers in the case of an award. Procurement Trucks and Buses methods of supplier evaluation include the On-site Assessment, Internal Cross-functional Assessment, and External Balanced Scorecard. The On-Site Assessment (OSA) is used in specific cases to evaluate NEW and CURRENT suppliers within the scope of a new contract award for product projects and series production. The main element is the on-site evaluation of the supplier by a cross-functional team of representatives from Purchasing, Engineering, Quality, Manufacturing, Materials and Supplier Evaluation. Results of an On-site Assessment are communicated to the supplier at the end of an assessment through the use of a feedback form containing the category rating, noted highlights, and potentials for improvement. The Internal Cross-Functional Assessment (ICA) is used to evaluate CURRENT suppliers within the scope of a new contract award for a product project before start of production. Previous and current experience with the supplier is evaluated by Purchasing, Engineering, Quality, Production, Materials and After Sales by means of a questionnaire. OSA and ICA results in one of the following supplier classifications: Category 1 Suitable for cooperation with Daimler Trucks North America REV Daimler Trucks North America LLC 7

9 Category 2 With support, suitable for cooperation with Daimler Trucks North America Category 3 Unsuitable for cooperation with Daimler Trucks North America (Note: receipt of a Category 1 or 2 rating does not indicate or guarantee an awarding of business or the continuation of business, and does not waive any rights of DTNA under contracts or law.) The External Balanced Scorecard (EBSC) is an instrument for continuous assessment of the performance of CURRENT suppliers. Target values are determined for each EBSC parameter in interdisciplinary cooperation with Operative Purchasing, Engineering, Quality, Warranty, Parts & Service, Materials, Change Over, After Sales, and Accounting and are tracked in the EBSC through TARGET/ACTUAL comparisons. The results are communicated to the suppliers via the supplier portal. EBSC supports the following: Commodity Strategies Sourcing Decisions Supplier Development Activities Supplier Awards (Masters of Quality Award, see Section 4 for details) If you have any questions regarding Daimler Truck North America s OSA, ICA or EBSC programs, contact the supplier evaluation group within DTNA Purchasing. 2.7 Cost Transparency Only a strong and stable network of partners is able to navigate the many challenges in an ever-changing business environment. This is why reliable and long-lasting teamwork with suppliers is a tradition at DTNA. DTNA employs various methods to assure supplier pricing can withstand the global competitive pressures at play in today s marketplace. One of these methods is a collaborative use of cost transparency to aid in the establishment of an agreed-on starting point for future negotiations. In exchange, DTNA may share in-house reference calculation results to help optimize the total value chain. 2.8 Local Content (RVC) Requirements In order to remain competitive, DTNA must ship its trucks duty-free within North America. To do this, our trucks must qualify for the North American Free Trade Agreement (NAFTA). We therefore request NAFTA Certificates for parts we purchase from our suppliers. Your cooperation with this requirement is outlined in section 7.2 (Free Trade Agreements and Tariff Preference) of DTNA s terms and conditions. Your parts should qualify under NAFTA when possible, and if a sourcing change negatively affects that qualification, DTNA must be notified in advance. Any DTNA related NAFTA and other Free Trade Agreement questions can be directed to trade.solicitation@daimler.com REV Daimler Trucks North America LLC 8

10 3.0 Tooling 3.1 Tooling Introduction Tooling Operations manages all DTNA owned tooling at Supplier locations. This includes new tooling to support Engineering changes, and existing tooling used for both production and aftermarket. For tooling changes driven by design changes, pre-production parts are sometimes needed to try-out and confirm the production build, build a test truck, or just let the plant see and install the part before production volumes are run. This will help identify any problems before production. Any general tooling questions can be directed to ToolingHelp@Daimler.com. 3.2 Tooling Ownership Tooling Operations is responsible for purchasing and tracking all DTNA owned tooling housed at vendor locations. Typically, DTNA pays for 100% of the unique tooling cost incurred for the tools used to manufacture DTNA proprietary parts. Any tooling ordered by the Tooling Operations is the property of DTNA, unless otherwise specified.there are cases when tooling is owned by the supplier (i.e. supplier proprietary design) however, DTNA prefers to own assets needed to make proprietary production parts (equipment would be owned by the supplier). 3.3 Tooling Quote DTNA quotes that include tooling need to include detailed tooling breakdowns with complete information (ie. tool physical address, tool life, tool description, etc.). Many details are needed to start up and track tooling. All quotes need to be reviewed and approved by the DTNA Purchasing department. See the next page for an example of the Breakdown form (Figure 1). The quote must be itemized, listing each individual tool on its own line. Figure 1: Tooling Quote Description/Breakdown Form 3.4 Tooling Start-up Tooling is ordered via Purchase Order by a Tooling Analyst within Tooling Operations. Tooling should never be purchased by any other group within DTNA. All tooling purchase orders and tooling directions will come from Tooling Operations. Tooling progress payments may apply depending on the complexity and cost of the project. Terms are as negotiated and set forth on the purchase order, but as an example standard terms for progress payments are as follows: 30% kickoff of production tooling, 40% due upon tool completion and 30% due upon PPAP approval and Final Documentation including pictures and invoices submitted REV Daimler Trucks North America LLC 9

11 3.5 Tooling Changes All tooling changes (engineering and supplier requested) are processed through Tooling Operations and Purchasing. It is important to track the latest revision (and part number) of the asset. It is mandatory that Tooling Operations be the point of contact for any and all tooling changes or tooling moves. 3.6 Communication Open flow of communication regarding progress of tooling is critical. This communication provides an understanding of timing and the ability to know when first shots or hits will be available. Proactive information regarding tooling is required to help avoid delays in completion of tooling. On-site evaluations may also be set up to monitor progress. Tooling Operations will distribute tooling status reports for communication and tracking to help facilitate ontime delivery of the tools. These reports will be distributed via as attachments. Your supplier profile, in our Enterprise Asset Management (EAM) system, determines who in your organization receives these reports. The tooling status report is distributed every other Monday. Tooling Operations requires report completion and return from the respective supplier by the following Friday. This report is used to assure communication between DTNA and the Supplier. This status report is distributed to various groups throughout DTNA, most noteably Launch and Change management (Changeover) for changeover schedule and material planning purposes. See the Status Report for instructions on how to complete. Please note that failure to complete the tooling status report as outlined above, will impact your supplier scorecard. Tooling Status Report Report For The Week Starting On 09/30/99 Please fill out the grey columns only Tooling Complete Date (Production Representative Parts Available- 100% Inspected) Supplier PPAP Submission Date Supplier Comments - Tooling Complete Date (Production Representative Parts Available- 100% Inspected) Supplier PPAP Submission Date (Tooling Due Date) Asset Tooling Type W/O# Description 06/01/ /16/2099 On-Time - 06/01/ /16/ P9999 New Tooling Axle Rod Supplier Code Part Number PO Number Tooling Cost Tooling Agent DTNA Status ABCD A $9, Jon Smith 2 weeks Out Figure 2: Tooling Status Report Two business days prior to a tool being completed the Supplier will receive a reminder entitled; **Action Required** DTNA Tooling Due #/##/##. The will remind the supplier to submit Asset Pictures and a copy of the invoice for the Tooling to the designated Tooling Analyst. An electronic or hard copy of invoice is to be provided to DTNA Accounts Payable per the Invoicing instructions noted in this document, Section Updating the Notification List If you require a change to your distribution list, send an to ToolingHelp@Daimler.com or a Tooling Analyst, listing the name and contact information for the person to be changed to. Please be sure to include your supplier code either in the subject line or body of the REV Daimler Trucks North America LLC 10

12 3.8 Tooling Completion Tooling Due Dates, as outlined on the Purchase Order, are based upon quoted lead times. Tooling due dates must be accurate and adhered to at all times. If the due date listed on the purchase order cannot be met, it must be communicated to Tooling Operations immediately. Tooling Operations will work with the supplier to establish a new date. The Launch and Change Management group relies on the scheduled due date to know when first shots can be ordered and the scheduling of pre-series truck builds and project implementation. 3.9 Invoicing An invoice for the cost of the tooling will need to be provided. The invoice must match the purchase order or it cannot be processed. Invoices should be sent to the Accounts Payable address noted in Section 9. A copy of the invoice (clearly marked as Receipt Copy ) serves as the receipt of goods document for the ordered tooling and must be provided to the Tooling Analyst that issued the purchase order to ensure timely invoice payment processing, 3.10 Asset Pictures Pictures of the completed tooling will need to be provided. The picture should include the DTNA Tool Identification Template (See Figure 3) in the photo to help identify each tool. Figure 3: Asset Identification for photos 3.11 Dimensions and Weights/Programming Dimensions and weights of the tooling will need to be provided when applicable. If the tooling includes programming, a copy of the program should be sent on a CD/DVD to ooling Operations Tooling Designs The tooling design should be provided to Tooling Operations when the design is finished. A copy of the design should be sent on a CD/DVD to Tooling Operations REV Daimler Trucks North America LLC 11

13 3.13 Tooling Process Sheets The tooling process sheets are required before final payment is made. Please provide these process sheets to the Tooling Analyst Payment Tooling Operations must be provided an Invoice, Asset Pictures, Dimensions and Weights/Programming, Tooling Designs and Process Sheets and QA approved PPAP documents before appropriate payment will be processed and the tool is considered complete Asset Tags All assets must be marked with the unique DTNA asset number that is provided on the purchase order. Asset tags, such as the one shown in Figure 4, can be provided upon request by Tooling Operations. Figure 4: ID/Certification Tag 3.16 Tooling Maintenance Tool maintenance is the suppliers responsibility. Assets need to be maintained and preventative maintenance records kept ensuring the life of the tool meets expectations and commitments. All quotes must have a tool life agreement approved up front Refurbishment / Replacement Requests Tooling life is critical as this will be the basis for understanding the refurbishment or replacement request Three quotes are still required (from the tool shops) to justify all refubishment/replacement requests. See Figure 5 for an example of the Information Request Form REV Daimler Trucks North America LLC 12

14 Figure 5: DTNA Tooling Refurbishment/Replacement/Questions/Procedures 3.18 Rework/Modification If there is a design change that requires a rework/modification (column B on the breakdown form marked yes ) to the current tool(s), the new change must go through the quote process similar to a new tool. There are extra questions that are required to be filled out, which are an additional tab of the tooling quote form. (See figure 6 for a list of rework/modification questions) The rework/modification must not be done without Tooling Operations and Purchasing approval, and the Launch and Change group establishing bank builds and setting the date to pull the tool out of production to ensure DTNA production shortages do not occur. Please note that bank build transparency will be required prior to tooling PO issuance REV Daimler Trucks North America LLC 13

15 Figure 6: Tool Rework/Modification Questions 3.19 QA Check Fixtures Quality assurance (QA) check fixtures will be an asset that Tooling Operations kicks off, but is coordinated by the DTNA QA department. QA check fixtures should be included in the tooling quote as a separate line item, when applicable. All tooling requirements still apply to QA check fixtures. Please contact DTNA Quality Assurance for details Tooling Moves or Resourcing DTNA may move tooling based on supplier performance, cost, capability, market needs, etc. When tooling does move between two different suppliers, a Tool Acceptance Certificate Form (See Figure 7) must be completed. Ideally, all three parties need to review the tooling for status. The current supplier, the new supplier and DTNA need to complete and sign the form. This will ensure that all parties agree on the current status of the tool. See Figure 7 for an example of the front and last page of a Tool Acceptance Certificate. When tooling moves to a new supplier, the new supplier receiving the tool has two weeks to review and advise DTNA of any modifications or repairs needed to be able to use the tool.if a tool or asset is going to be moved internally within the Supplier production network, the supplier must contact DTNA and discuss the impact prior to moving. The supplier will be responsible for all charges that DTNA incurs due to a tool being moved without DTNA s knowledge. DTNA will need to know the old and new addresses of the tool, as well as understand the impact to the parts supply. If a supplier opens up a new facility an OSA (On-Sight Assessment) will need to be conducted to ensure the business change fits DTNA needs. If a tool is moved across an international border, a Bailment Agreement must be concluded with DTNA. For information on where to find a Bailment Agreement, please contact your Purchasing Agent REV Daimler Trucks North America LLC 14

16 Releasing Supplier Date : Signature: Name: Tooling Move Acceptance Certificate Daimler Representative Date : Signature: Name: Accepting Supplier Date : Signature: Name: Current Location Physical Tool Location During Production (company name, street, city, state, zip): New Location Physical Tool Location Date of Planned During Production Move (Confirm no Reason for tool (company name, street, interruption on move city, state, zip): requirements) Part # Supplier Tool ID # DTNA Asset # Tool Type Description LENGTH WIDTH HEIGHT Pictures on File Attatched (Y/N) Original cost of tool, if known ($) Figure 7: Tool Acceptance Certificate Duplicate of paragraph above except for highlighted sentence REV Daimler Trucks North America LLC 15

17 Figure 7.1a: Tool Move Form REV Daimler Trucks North America LLC 16

18 Figure 7.1b: Tool Move Package 3.21 Tooling Audit Tooling Operations will schedule an audit of all tooling assigned to the supplier every three years to be Sarbanes-Oxley compliant and ensure tax payments are accurate. Tooling Operations will work with the supplier for scheduling availability and provide a list of assets assigned to the supplier that will need to be verified. The supplier is required to complete the highlighted columns on the audit template (See figure 8 for the column descriptions). If a tooling audit has not been previously performed with the supplier, a blind audit would be performed. This blind audit would require the supplier to tell Tooling Operations what tooling is physically located at their location(s) and/or tier 2 location(s). Once the list has been provided to Tooling Operations, DTNA will verify and work with the supplier to ensure the lists match. Any discrepancies will be discussed and worked through during the verification process. Local and federal tax regulations may require DTNA to request property evidence of DTNA owned tooling from suppliers for each reporting year. This confirmation may be required annually and must be responded to by suppliers. Figure 8: Tooling Confirmation Template REV Daimler Trucks North America LLC 17

19 Column Column Title Description of Column Content E DTNA Asset# DTNA Tag or Asset number associated with tool F Supplier's Tool ID (if applicable) Supplier Tag or Asset number associated with tool G Tool Type (Mold, Die, Fixture, etc..) Type of the Tool H ALL DTNA Part Numbers A list of part numbers that the tool will make I Part Description Description of the parts J Tool Dimension Length Length of the Tool in inches K Tool Dimension Width Width of the Tool in inches L Tool Dimension Height Height of the Tool in inches M Tool Weight (Lbs.) Weight of the Tool in pounds N # of Cavities How many Cavities does the Tool have? (if applicable) O Press Tonage (if applicable) What is the Press tonnage? (if applicable) P Tool Condition Condition of Tooling at time of Audit Q Estimated Remaining Tool Life (Shots, Hits / Parts) Remaining production use of Tool at time of Audit R Date Tool was Moved /Scrapped When the Tool left the facility or was scrapped. S Scrap Requested Y or N (If yes, please complete the attached Is this Tool an entry on the Scrap Request form? Scrap Request Form) T Tool Currently in use? Tool being used in production at time of Audit U Tagged Y or N Is a Daimler Asset Tag applied to the Tooling? V Assets Visually Verified Was the Asset visually verified during the confirmation process? W Tier 2? Y/N Is the Tool location at a Tier 2 Supplier? X Vendor Name Vendor's name where the tooling is located Y Physical Location Address Physical address where the tooling is located Z Physical Location City Physical city where the tooling is located AA Physical Location State/Country Physical state/country/province where the tooling is located AB Postal Code Physical address where the tooling is located AC Comments Additional comments related to the tooling Figure 8.1: Audit Form Column Descriptions 3.22 Scrap Tooling If there is tooling that a vendor wishes to scrap, authorization must be provided by Tooling Operations prior to scrapping of the tool. The supplier must provide Tooling Operations a copy of the scrap form; see Figure 9 for a copy of the scrap form. After the tooling has been scrapped, the supplier must provide Tooling Operations with a copy of the Scrap Ticket/Receipt for proof of disposal REV Daimler Trucks North America LLC 18

20 1. DTNA Part Number (s) that the tooling produces. DTNA Tooling Scrap Form 2. Asset number (s) of the tooling, and any other tooling/racks. 3. Is production usage still needed for the part number (s) that the tooling produces/can this be made non-tooled? What is the plan to support Production and Aftermarket needs? 4. What are the actual number of hits to date (Yearly/Total)? 5. What was the Month/Year that tooling went into/out of production if known? 6. What is the reason for this scrap request? 7. Are there any other fixtures, check fixtures, and/or racks associasted with these part numbers? 8. Where was this tool constructed (if known)? 9. What is the physical tooling address of where the tooling is currently being stored? 10. What is the proposed timing of when the tooling is to be scrapped? 11. What is the estimated scrap value of the tooling? 12. Please provide a picture of the tooling. Date: Note: Address all questions and return this document to the responsible Tooling Agent. Please be prepard to provide a scrap reciept once authorization to scrap has been granted. Figure 9: Tooling Scrap Form Note: All Figures in Section 3.0 are for Reference Only. Consult your assigned Tooling Analyst for Updated copies of all Documents REV Daimler Trucks North America LLC 19

21 4.0 Quality At DTNA, we are committed to working with our suppliers to meet or exceed our customers expectations. Guidelines describing DTNA supplier quality requirements can be found in the Supplier Quality Manual which can be accessed at the link below. The Supplier Quality Manual provides details on topics such as Supplier Evaluation, PPAP, Masters of Quality and others. 4.1 Quality Prerequisite DTNA requires suppliers to be ISO 9001:2008 or ISO/TS certified and to successfully meet On-Site Assessment (OSA) requirements. Additionally, it is recommended that DTNA suppliers be ISO certified or work towards certification as this will become a requirement in the future. 4.2 Proof of Certification Suppliers are responsible for providing DTNA Supplier Quality with ISO 9001:2008 or ISO/TS certification and to ensure it is kept current. 4.3 PPAP DTNA requires suppliers to perform PPAP for all production parts and including all applicable elements in accordance with the published AIAG standard. DTNA will accept Daimler Global Supplier Management equivalents of PPAP: Pruefbericht, PPF or PSO. A limited scope PPAP for low volume production parts can be arranged directly with DTNA s Supplier Quality Department, but must be agreed upon prior to submittal. Supplier Quality requests PPAP documents and samples to be submitted for approval. For these parts, PPAP approval is required prior to supplying production parts to avoid rejection at DTNA plants (See Exception Conditions). Should submission not be required, this does not absolve the supplier from completing all applicable PPAP sections and retaining records. DTNA may audit supplier s PPAP records at any time. Suppliers are expected to forward those PPAP documents within 1 business day. 4.4 Change Notifications Suppliers are responsible to provide Product/Process Change Notification (PPCN) and receive approval from DTNA Supplier Quality for any process or product changes. 4.5 Supplier Quality Contacts Suppliers are responsible for providing DTNA Supplier Quality (PPAP Coordinator) with current Quality contacts as changes occur. Note: DTNA Supplier Quality maintains one system that stores supplier s Quality contact information for both DTNA Corporate and Plant QA. 4.6 Rejects Suppliers are responsible for the quality of parts they provide to DTNA and any costs associated with rejected parts. In addition, a $120 processing fee may be charged for any Quality Reject Notification (QRN) that is issued by DTNA truck manufacturing plants. DTNA requires a Return Goods Authorization (RGA) response to a Quality Reject Notification within 2-business days. If a response to the RGA request is not received within 2- business days, rejected lots will either be scrapped and debited to the supplier or shipped freight collect to the supplier. Rejected parts also negatively impact the supplier s quality metric (PPM score). Please follow the instructions outlined on the QRN when responding to any reject REV Daimler Trucks North America LLC 20

22 4.7 Corrective Action Process DTNA requires suppliers to cooperatively work with DTNA on Corrective Action Requests (CAR). CAR response and timeliness will be tracked (via FRACAS) and will affect the supplier s score in bi-annual supplier evaluations (EBSC as detailed in section 2.5). 4.8 Campaigns/Recalls DTNA Corporate QA will work with DTNA Field Service Engineering, Supplier Quality and suppliers to determine: the suspect population and location of affected trucks, containment and permanent corrective action, and to restore product flow. Campaigns/Recalls will be coordinated by DTNA Field Service Engineering and are included in bi-annual supplier evaluations. 4.9 Reliability/Durability Suppliers are expected to have the capability to evaluate the failure modes of their components that can compromise reliability or durability and propose necessary changes to the design, process, or delivery as appropriate. The supplier resource that has the responsibility for evaluating failure modes must be identified prior to the start of series production EBSC The Quality section of the External Balanced Score Card (EBSC) is based on the following: ISO 9001:2008 or ISO/TS certification, quality metric (PPM score), Corrective Action Requests (CAR) responsiveness, campaigns/recalls, and late PPAP s Masters of Quality Each year, DTNA recognizes suppliers that meet our strict standards and demonstrate an ongoing commitment to quality improvement by awarding them with the DTNA Masters of Quality Award. The scores from the semi-annual, multi-functional evaluation (EBSC) are used to select Masters of Quality recipients. Suppliers with production and aftermarket purchases exceeding $500,000 annually and more than 12 months sales history are eligible Supplier Action Team Suppliers that consistently fail to meet DTNA requirements may be asked to come to DTNA s Corporate Office to present their improvement plans Tooling If tooling is required, the supplier is responsible for handling all tooling needs and associated costs prior to accepting the Purchasing Contract/Order for production parts. Suppliers are also responsible for maintaining tooling and notifying DTNA Tooling Operations if existing tooling is worn or inadequate. Final tooling payment is contingent upon PPAP approval Check fixtures Check fixtures must be part of the initial quote to DTNA Corporate Purchasing. For information regarding check fixture implementation, please reference the Check Fixture Requirements Book Labeling When specified, suppliers are required to comply with permanent labeling requirements per Engineering Standard All parts exempt from permanent identification will be temporarily labeled with DTNA part number, revision level, supplier code, and date code (month/day/ year), and cavity (where applicable) with following exceptions: REV Daimler Trucks North America LLC 21

23 Most hardware where cost and available space on part is prohibitive. If questions, suppliers must ask DTNA for clarification. On parts that DTNA agrees to waive this requirement due to prohibitive cost. Otherwise these costs are assumed included in total piece price quote. Lower level part numbers. Only the assembly level that DTNA procures needs part identification will override this exception if specified. Label can be permanent if no cosmetic/structural issues. If temporary (stick on label, ink jet, wired tag, etc.), the label must be easily removed or in a place they can wear off and not cause any cosmetic issues. The label must survive the truck manufacturing process. If beneficial to supplier, DTNA can be added to label, but supplier must not use any DTNA brands (e.g. Freightliner, Western Star etc.) on labels. Complying with DTNA labeling is essential for traceability and assists DTNA truck manufacturing plants and warranty departments with proper part identification Shipping Suppliers need to comply with DTNA Production Parts Packaging, Labeling, and Shipping Guidelines. Suppliers are responsible for notifying DTNA Corporate Packaging Group if returnable containers are damaged or inadequate Deviations Suppliers are required to receive written deviation from DTNA Corporate Engineering for any deviations from specification (material, dimensional, process, etc) Safety Safety relevant features are those parts, joints, or systems that have the potential to, directly or indirectly, compromise vehicle safety and pose immediate danger to the life and limb of road users. In order to apply certain levels of control to ensure these features meet the intended design and performance specification during the intended life cycle, DTNA drawings identify safety relevant features with this symbol: Suppliers are required to ensure that all safety relevant features conform to specifications. This includes, but is not limited to: 100% verification to ensure all safety relevant features conform to specification. Incorporation of necessary steps into production control plans. Periodic process audit, verifying safety features and the process of ensuring compliance. All records must be maintained by suppliers for the life of the product plus one year and made available to DTNA upon request. Suppliers that have design responsibility must work with DTNA Engineering to identify all safety relevant features. The safety relevant featured must be clearly defined on the drawing. Supplier s PPAP must show that safety relevant features have been included in the design FMEA, process FMEA and the control plan. Suppliers must show that the design and production processes ensure that all safety relevant features conform to specification REV Daimler Trucks North America LLC 22

24 5.0 Materials Management 5.1 Introduction to Supplier Management, Launch and Change Management and Material Planning Daimler Truck North America expects suppliers to be proactive in managing inventories and supplying material in a timely and accurate manner. All suppliers are expected to proactively communicate with Daimler Trucks North America. It is the responsibility of the supplier to accurately manage and provide ordered materials. 5.2 Changeover In order to ensure the quality and timeliness of changeover projects, the Launch and Change Management Team requires the cooperation of all suppliers in complying with the following: Quote process time When quoting parts which require tooling, quotes will be due three weeks from the day of receiving RFQ, prints and specifications. When quoting parts which do not require tooling, quotes will be due two weeks from the day of receiving RFQ, prints and specifications. Exceptions will be made for major projects which may require complex tooling or on-site presentations. Tooling lead time Supplier will quote lead time of tooling at time of RFQ submittal, and will be held accountable for achieving it. Tooling modification Modification or rework of DTNA-owned tooling is to be done only under the direction of DTNA Tooling Operations. Launch support Supplier is to provide factory support at time of preseries and production start-up if required. Supplier-originated changes Supplier of supplier designed parts and assemblies shall give DTNA a minimum of six months notice (more for major projects) of design change, model introduction or modification, or any change requiring DTNA to accommodate with option or design changes. Supplier will notify their Purchasing Agent who will communicate to Launch and Change Management. Requests will be reviewed and scheduled by the Changeover Review Board. Implications of not meeting requirements: Suppliers who fail to comply with any of the above mentioned requirements will be rated accordingly in their supplier evaluation and may be removed from future quote opportunities. 5.3 Material Supply Planning For Manufacturing (Aftermarket, see section 12) It is the responsibility of all suppliers to manage their supply chains to prevent late delivery of material to Daimler Trucks North America. Communications: DTNA expects supplier contacts to answer phone calls, s, and alert DTNA of issues and shortages within two hours of a problem arising. Planners have multiple options in solving many part shortages; however, they must be notified in a timely manner in order to utilize those alternatives which may REV Daimler Trucks North America LLC 23

25 include contacting another plant or sourcing from the aftermarket. is the preferred method of communication on most matters. Pro-Active: DTNA expects suppliers to use their respective material releases (EDI 830 Planning Schedule with Release, EDI 862 Shipping Schedule or 866 Line Sequence Ship Schedule) daily checking for late, move-up or drop-in orders and to contact the planner. The planner should not have to call or to find out when something will ship on past due orders. It is the responsibility of the supplier to call and advise a planner when a shipment will be late. Planners expect such a phone call several days in advance of the due date or ship date, so they can work on an alternative and communicate the information to the plant. If an expedited air shipment from plant to plant is required and the parts are late from the supplier, DTNA will debit the airfreight charges to the supplier. If a call is made far enough in advance and a non-expedited mode of transportation is used, freight charges will not be debited to the supplier. Those suppliers on the 862 Shipping Schedule are expected to advise planners on all late parts by 9:00 AM in the time zone of the FOB point. The planner should never have to call on any part that is being shipped late by the supplier. ASN s: DTNA expects on-time and accurate ASNs (Advance Shipment Notice). An ASN must be sent within 30 minutes after a shipment leaves a Supplier's dock. The ASN allows both the planner and the plant to see material in transit. ASN s update DTNA s MRP system and are reflected on the next EDI report the following day (862 or 866 Shipping Schedule) or week (830 Planning Schedule). When ASNs are not received or are received late, they pose many problems and can cause delayed payment to the supplier. For the 862: If the supplier sends an on-time and accurate ASN yet the requirements are still on the 862 the following day, one of three things may have taken place. First, is a possible timing issue where the ASN is received in DTNA s system but does not update the 862 (ASN was received after MRP ran). Second, the ASN may have been rejected or did not come through at all. Finally, the ASN may have come through and may have updated the 862, however an adjustment could have been made and the parts are still needed. Any of these situations would require the supplier to contact the planner to verify the issues. DTNA may, at our option, complete the ASN for the supplier and issue a debit to charge the supplier for costs associated with loading the ASN and possible damages caused by the lack of visibility. DTNA will notify the supplier prior to such debit action EDI Communication Expectations DTNA expects all suppliers to communicate all orders, shipments, invoicing, etc. using EDI (Electronic Data Interchange) DTNA s format is the Automotive Industry Action Group (AIAG) and Truck Advisory Group (TAG) approved American National Standards Institute (ANSI) X12 standard. Advanced Ship Notices (ASN s) are to be communicated within 30 minutes of shipping. Accurate shipment visibility is required for the DTNA manufacturing plants and for material planning. Accurate material releases to supplier are dependent on accurate and timely ASN s. Timely supplier payment is dependent on accurate ASN s and invoices. To be eligible for the Masters of Quality Supplier Award, suppliers are expected to fully communicate via EDI with DTNA and to be fully integrated with core business systems. Suppliers may trade EDI with DTNA using a direct connection such as AS2, OFTP, or SFTP or through a VAN Low volume suppliers not using the 866 transaction and those with no existing EDI capabilities may contact DTNA EDI Coordinators for assistance determining the right EDI tool or provider. Contact edicoordinators@daimler.com All suppliers are required to connect to DTNA through T-Systems, regardless of transmission source used REV Daimler Trucks North America LLC 24

26 Current EDI Transactions: 214 Motor shipment status 810 Supplier invoice 820 Payment/Remittance advice EFT - Electronic Funds Transfer 824 Application advice for 856 or Planning schedule with release (6 months) 856 Advanced Shipment Notice (ASN)- must be sent within 30 minutes of truck departure 861 Receiving advice 862 Shipping schedule line set (20 days) 866 Line sequence schedule by truck number 997 Functional acknowledgement 5.4 Manufacturing EDI Business Rules and Usage Planning Schedule with Release Capability (830) The Planning Schedule transaction contains approximately 6 months of requirements. The requirements for the first 4 weeks will be firm orders (although the dates and quantities inside these 4 weeks can change). The next 2 weeks will show the supplier committed orders and the rest of the data will be forecasted orders (roughly 4 ½ months). Not all areas in this section apply to major components. The 830 is sorted by part number first, then location and date. When DTNA transmits a Planning Schedule it is a complete refresh (for all locations). It replaces all existing requirements in a suppliers system for the part number. Because a Planning Schedule can be sent any day of the week, suppliers must process transactions on a daily basis to ensure updates are not missed. In order for the Advanced Ship Notice (ASN) information to reflect on the Planning Schedule transaction, DTNA needs to receive an ASN by 3:00 p.m. PST. Any ASN received after this time might not reflect on the next Planning Schedule the Supplier receives (unless the Planning Schedule goes out a couple of days after receiving an ASN). DTNA does send Accum information on the Planning Schedule, but it is not intended to support Accum driven systems. When DTNA performs a material transfer from one DTNA plant to another, this will be reflected in the Accum information and will not truly reflect what the supplier has shipped nor will DTNA change its information to match the supplier. Planning Schedules are usually between 5:00 p.m. and 8:00 p.m. PST. Generally they are set up to be transmitted on Saturday night but can be set up to go out Monday through Friday. Once a week suppliers will receive Planning Schedules for any parts with requirement in the next six months. If there are any changes during the week, the supplier could receive another Planning Schedule before receiving the next cycle of weekly releases. Shipping Schedule (862) If a Shipping Schedule is received, Planning Schedules should be used to build material and the Shipping Schedule should be used to ship against. The Planning Schedule and the Shipping Schedule are generated at different times so there will be occasions when the two differ. In these instances, the Shipping Schedule (862) overrides the Planning Schedule (830). The Shipping Schedule is generally sent out daily, Monday through Friday. It will contain data for 20 production days. There is no Accum information on the Shipping REV Daimler Trucks North America LLC 25

27 Schedule and there are no plans to include this information (or last receipt, etc.). In order for the ASN to reflect on the next Shipping Schedule the Supplier receives, DTNA needs to receive the ASN before 11 p.m. PST. The 862 contains the same data as the 830, except it is sorted by DTNA plant location, then by date. The 862 shows the next 20 days horizon. All quantities/parts/dates on the 862 are in the firm commit range, even though there may be changes within these 20 days. Shipping Schedules are transmitted once a day at approximately 2:15 a.m. PST (Monday through Friday). Line Sequence (866) Similar to the 862, the 866 overrides 830 data for each part number that is set up as Line Sequence. The 866 usually shows 20 days of production requirements. This EDI data is transmitted daily, Monday through Friday. On the 866, the Truck Number associated with the material is referenced in order for the Truck Number to be passed back on the ASN for the specific material. As long as the Truck Number is on the ASN, the requirements are reduced on the 866. If the Truck number is not on the ASN the data will continue to show the same requirements for the 866 until the Truck Number is on the Production Line. In order for the 866 to be updated and reflect the change in requirements, the ASN must be received by 5 PM, PST. Functional Acknowledgement (997) DTNA transmits Functional Acknowledgements from the DTNA manufacturing system to suppliers upon receiving an ASN. This transaction is used to confirm the receipt of the Advanced Ship Notices sent by the supplier. DTNA returns a Functional Acknowledgement to confirm the number of ASNs received in the system. The supplier should verify these totals on every transmission to ensure the ASNs are being received. The issuance of a 997 from DTNA to a supplier does not mean the ASN has been posted to the DTNA system, or that the ASN contains correct information. It only signifies the ASN was received in the EDI mailbox. DTNA transmits Functional Acknowledgement transactions every 30 minutes daily (Monday through Friday). Receiving Advice (861) DTNA will transmit a Receiving Advice to supplier if there is a discrepancy in the quantity between what DTNA physically receives and what the ASN indicates. Because it is a manual process to send the Receiving Advice, there will be times when there could be a discrepancy and a Receiving Advice is not sent. If a Receiving Advice is received, the supplier should contact the associated DTNA Material Planner to determine what needs to be done. The planner might choose to have the supplier ship more material immediately or determine to hold off until the next shipment and increase the quantity. Receiving Advice Notices go out once a day at 3:15 a.m. PST (Monday through Friday). Application Advice (824) The Application Advice is sent to the supplier if there is a data error with the ASN (e.g., incorrect part number, line item number, purchase order number, etc.). If the supplier is unable to determine the cause of a problem, they should contact the DTNA EDI Coordinator (or Material Planner). If for some reason the Application Advice is not addressed until the following day, the supplier should contact the Material Planner to determine if the ASN still needs to be resent. If the ASN has a format error (non-compliant EDI data) such as missing segments, CTT count missing etc., an Application Advice will not be sent. This is because once the testing has been completed the format should not change; only the data inside the format should change. It is the supplier responsibility to monitor the EDI 824 Application Advice error reporting daily and to make corrections. The 824 serves as the most accurate and current indication of an ASN acceptance or failure REV Daimler Trucks North America LLC 26

28 If an 824 is received, correct the problem and resend the ASN and then check back to see if another Application Advice was sent. If an Application Advice is not received, assume the ASN posted correctly to DTNA s system or contact Material Planner. Application Advice Notices are sent out every 30 minutes, at 15 and 45 minutes past each hour. Advanced Ship Notice (856) (Manufacturing) The Advanced Ship Notice (ASN) is sent by the supplier to DTNA to document a shipment of material. The ASN provides DTNA shipment details, as well as the parts and quantities in the related shipment. DTNA expects an ASN to be sent within 30 minutes of the shipment leaving the shipping dock. As DTNA cannot validate the carrier information, it is up to the supplier to provide accurate information. The carrier information is used for shipment tracking issues and if this information is incorrect, DTNA will go back to the supplier for the correct information (consider all fields mandatory on the ASN). The Shipment Identification (SID) number plays a vital role in DTNA s systems. In order for proper processing by DTNA, the SID must be on the ASN, Invoice and Packing Slip. If the SID number is not an exact match on all related documents, is missing or is not clearly marked, it disrupts the information flow which ultimately delays supplier payment. The ASN and Invoice have specific fields where the SID is located. The supplier s Packing Slip needs to have a field in the upper right-hand corner labeled SID Number: ###, so that DTNA s Receiving Department can identify the number to receive the material under. DTNA expects the SID Number to be machine printed. There should only be one SID number per shipment, per location. Likewise, there should be only one SID per invoice and one invoice per SID. Advanced Shipment Notices (ASNs) are processed every 30 minutes by the DTNA system. If there is a data error, DTNA will return an Application Advice within 30 to 45 minutes of receiving the ASN. This means within minutes of an ASN being sent, suppliers should check to see if an Application Advice (824) was received. Please note for manufacturing purchase orders, DTNA requires suppliers to send a sum total for each part number. Duplicate part numbers will be rejected within the same ASN. DTNA has clearly set standards for EDI compliance, and aims to reduce unnecessary rework resulting from non-compliance. Therefore, DTNA is instituting a process to charge suppliers for clear and repetitive noncompliance with DTNA s EDI guidelines. DTNA may issue Debit Memos for non-compliance to EDI guidelines in the following situations: A shipment is received at a DTNA plant without an Advance Shipping Notice (ASN/856). The Material Planning Department identifies a shipment in-transit lacking a compliant ASN and must notify the supplier of the situation. An assembly line shortage is caused by the supplier due to EDI non-compliance. If a debit is deemed appropriate, each situation will be handled on a per SID basis. For example, if twelve (12) part numbers were on a shipment and the ASN (856) was flawed or missing entirely, we would treat this as one discrete offense (not 12). We will only charge a discrete offense one time, at a rate of $120 USD. In an effort to avoid the potential of a double penalty, DTNA will only issue a single Debit Memo in the event an EDI compliance failure corresponds with a Quality Assurance Reject. Customer Service representatives will be notified of each Debit Memo by your DTNA Supply Chain Analyst, which will state the grounds for issuance. DTNA looks forward to collaborating with your company to resolve systematic flaws and eliminate EDI Compliance issues. Our mutual goal is not to issue any debits, but rather ensure we have consistent and timely flow of EDI transactions between our companies. Doing so will reduce the many hours our respective companies spend on reconciling shipments and flowing invoices and payments. If you have any questions, please contact your DTNA Supply Analyst for further information. Supplier Invoice (810) REV Daimler Trucks North America LLC 27

29 The supplier invoice is sent by the supplier to bill DTNA for goods or services delivered. A complete implementation guide is available upon request to edi.coordinators@daimler.com. Please note the importance of the Shipment ID# (see Advanced Ship Notice section above). See also section 9.0 Accounts Payable. Packaging List Details The SID number is clearly listed as SID Number. The DTNA part numbers are to be listed in Alpha/Numeric order. Each unique part number should only be listed once, with total quantity. SCAC code is the carrier ID, from Covisint - Reference document - routing letter. Pro No is the unique identifier assigned by the carrier or the same as the bill of lading. One ASN per shipment is required. There should only be one SID per shipment, per location. ASN should be sent within 30 minutes after departure from Supplier's dock. Figure 10: SID (Shipment Identification) Daimler Trucks North America Locations Portland TMP 001 Cleveland TMP 004 Saltillo TMP 013 Mt Holly TMP 017 Gastonia PMP 018 Carolina Logistics Center 021 Freightliner CCC 034 York 050 Toluca 058 Santiago TMP 065 Loc Code REV Daimler Trucks North America LLC 28

30 Figure 11: DTNA Assembly and ManufacturingLocations Daimler Supplier Portal: /journal_content/path: EDI and Communication Services; EDI Communication Services; Manufacturing EDI; Locations and Addresses Note: For further details, please refer to the Logistics section of this guide. 5.5 EDI Trading Partner Registration and Set Up The first step to get set up on EDI as a Trading Partner with DTNA is to contact the EDI Coordinator at Daimler for Manufacturing at edi-coordinators@daimler.com once you have been assigned a supplier ID. There is no cost to connect to the Daimler EDI gateway, T-Systems, but your VAN or EDI provider may charge for the connection service T-Systems DTNA is migrating all of the EDI traffic to the T-Systems network. Daimler uses an EDI switch, T-Systems, for all EDI data. Suppliers can connect to T-Systems through any VAN or as a direct connect using the following options: SFTP, AS2, or OFTP. Please allow a minimum of 10 (ten) business days for EDI set up. It is the responsibility of the Supplier to coordinate the EDI testing and set up with Daimler. The supplier should include their VAN/IT in all correspondence regarding the EDI testing. Daimler can not contact or set up a supplier with a specific VAN, this must be initiated by a Supplier to the VAN of their choice. Manufacturing uses these transactions: 824, 830, 856, 861, 862, 866, 810, 997. Your supplier code may not be set up for all of these transactions types. OEM/Manufacturing EDI transaction versions: 856 v v v v v v4010 Manufacturing ISA and GS send/receive ID s: zz:ftl^^mfg (^signifies1 space) zz:abcd^mfg The DTNA ISA and GS send/receive ID s for Accounting/Finance: For the invoices ZZ:FTL^FIAC (^ signifies 1 space) Supplier ID ZZ:ABCD The test data sent for the OEM part of EDI testing will only validate transmission. The part numbers and other information will not be production information. The test data is a generic file to ensure transmission is working. It does not contain functional data REV Daimler Trucks North America LLC 29

31 Once the 856 is successfully tested and in production, the 810 can be tested with the Finance/Accounting Department at DTNA. Supplier should pro-actively advise DTNA's materials contact and EDI coordinator prior to any ERP or EDI VAN connection change Supplier Online Routing Letters on Supplier.Online Daimler Trucks routing instructions are provided on the website, SupplierOnline. You can access the ROUTING LETTER application directly at the following URL: This link will direct you to the Daimler Trucks North America login page for Routing Letters. Please save this URL in your Internet Explorer Favorites or create a shortcut to the address on your desktop for future use. Daimler Trucks expects all Suppliers to check routing instructions at least monthly. The last-updated-date next to the location shows the last time a change was made for that facility. Failure to follow routing instructions may result in a debit being issued for the difference in expense between the correct routing vs. the method chosen by your location. For login assistance or for questions or concerns on accessing the SupplierOnline site, contact the Daimler HelpDesk at (855) or Dealer.Helpdesk@Daimler.com. The DTNA helpdesk will need the following information from the supplier when addressing questions or concerns: Company Name Company Supplier Code Company Address Company City, State, Zip Company Phone Number Contact Name Contact Phone Number Contact Address Covisint Set Up Covisint is the automotive website that hosts the DTNA/ Freightliner various applications. The setup, access, and use are free. Covisint is used to post DTNA applications, and supplier reference documents, including the following: edocs (please refer to Purchasing, section 2) External Balanced Score Card (EBSC) REV Daimler Trucks North America LLC 30

32 There is a multi-step process for registering with Covisint. First, the Supplier is set up in the grid. Contact the Manufacturing/Materials EDI Coordinator at edi-coordinators@daimler.com for additional information on how to register on Covisint. Once Supplier data is loaded, Covisint will send an with instructions on how to register. You will need your Supplier ID (the Supplier Code given to you by DTNA). You will then be able to begin registering as a user. Go to click the automotive logon and then you can set up an account. You will be contacted by Covisint in approximately two working days from the day the above information with registration information is submitted to Covisint. Suppliers need to log on and submit a request for the applications wanted. Individuals can be approved for only those applications which their organization already owns (any other requests will be automatically rejected) REV Daimler Trucks North America LLC 31

33 REV Daimler Trucks North America LLC 32

34 Figure 12: Covisint Directions REV Daimler Trucks North America LLC 33

35 6.0 Engineering 6.1 DTNA Engineering s Commitment to Suppliers Daimler Trucks North America (DTNA) Engineering is committed to the following: DTNA Engineering will treat supplier representatives with respect at all times, fostering open and constructive communication between DTNA Engineering and the supplier. DTNA Engineering will provide comprehensive design specifications, in writing, when possible and with back-up materials (charts, drawings, etc) when feasible. DTNA Engineering will respond to questions in a timely manner and foster an environment where suppliers feel comfortable asking questions, thereby ensuring clarity of our needs, targets and expected outcomes. DTNA Engineering will provide opportunities for the supplier s representatives to meet with our engineers throughout development in order to ensure our needs and expectations have been understood thoroughly. Meetings initiated by DTNA Engineering will be coordinated in advance to ensure that supplier representatives can provide the level of support and time necessary to fulfill the meeting purpose and objectives. This includes the following: DTNA will finalize the meeting date at least two weeks in advance, when possible. DTNA will distribute an agreed upon agenda to attendees at least one week in advance, when possible. DTNA Engineering will be involved upfront with supplier selection efforts. 6.2 General Expectations of Suppliers Supplier will sign and honor Non-Disclosure/Confidentiality Agreement. In exchange for DTNA commitments listed in section 6.1, DTNA Engineering holds the following expectations of our suppliers: Supplier representatives will treat DTNA Engineers and representatives with respect at all times. When the supplier is design-responsible, the supplier will take steps to ensure that their company understands DTNA s needs and requests regarding specification development. This will include mocking up specifications for DTNA Engineering to review, and initiating meetings/conference calls to clarify points, as needed. The supplier will develop and test all products to ensure that DTNA requirements such as design, performance, dimensional variation, quality, and cost targets are met. Visits initiated by suppliers will be coordinated in advance to ensure that DTNA Engineers and Management can provide the level of support and time necessary to fulfill the meeting purpose and objectives. This includes the following: Suppliers will finalize the meeting date at least two weeks in advance, when possible. Suppliers will distribute an agreed-upon agenda to attendees at least one week in advance, when REV Daimler Trucks North America LLC 34

36 possible. Request-for-Quote responses will be delivered on time and will utilize DTNA s standard forms and processes 100 percent of the time. Supplier will provide program and product launch support by qualified representatives. Supplier will provide engineering support for product feasibility, product design and tooling design/approval, as appropriate, for a particular program as well as Value Analysis & Value Engineering support. Supplier will manage 8D and response process effectively for potential Quality, Safety or Delivery issues. Supplier will take action quickly in order to resolve issues identified by DTNA. Supplier will establish a contact list for all functions, maintain the list on a regular basis, and ensure that the list is easily accessible to all applicable parties in DTNA Engineering. Supplier will provide quotes that are in complete conformance to engineering specifications. Exceptions must be clearly indicated at the time of the quote Quality Expectations of Pre-production parts and 8D Problem Solving DTNA expects supplied parts to be of a high quality with regard to design and production. If we determine during inspection, use or testing that the supplier s parts do not meet DTNA standards, the supplier may be required to provide an "8D Report" This report will help identify and resolve issues through problem solving and will increase our understanding of the entire situation, address our concerns and prevent reoccurrence of the quality issue. If an 8D report is requested, supplier must address all disciplines contained therein and attach supporting documentation providing observable evidence of corrective action. The following disciplines considered when addressing the 8D report are as follows: D0 Symptoms & Emergency Response Action D1 Team D2 Describe the Problem D3 Develop Interim Containment Actions D4 Define and Verify Root Cause and Escape Point D5 Define and Verify Permanent Corrective Actions D6 Implement and Validate Permanent Corrective Actions D7 Prevent Recurrence D8 Recognize Team and Individual Contributions Each supplier is responsible for both the appropriate and timely application of the 8D Analysis and Report and for their organization s problem solving knowledge and skill level Supplier Containment of Quality Issues Suppliers are expected to deploy additional controls in the supplier s manufacturing process, as needed, to identify known and potential non-conformance to engineering specifications and to prevent these non REV Daimler Trucks North America LLC 35

37 conforming parts from being shipped to DTNA. Additional controls can include, but are not limited to inspection audits, dimensional measurements, SPC requirements, appearance checks, part functionality checks, label verification systems, check fixtures and gages, poka-yokes. These process changes shall be documented in a revised Process FMEA and submitted to DTNA according to Paragraph 6.5 below. The goal of containment is to protect DTNA from defective material escapes throughout the development process, including the pre-production/prototype phase. 6.3 Safety Defect Investigations and Remedy The supplier must notify DTNA Design Engineering and Compliance and Regulatory Affairs Departments immediately when initiating any noncompliance or safety defect investigation on any component they supply to DTNA. The supplier is expected to provide regular progress updates and reports regarding noncompliance or safety defect investigations to appropriate contacts in DTNA Design Engineering, Compliance and Purchasing. The supplier is expected to cooperate fully with any related DTNA investigation. The supplier must meet DTNA and government timelines in providing a field remedy to any noncompliance or safety defect detected by supplier representatives or DTNA representatives. 6.4 Parts Development Expectations (prototype/test) Suppliers are required to certify prototype parts and initial production runs to DTNA Engineering for test purposes. Certification should contain DTNA Engineering specifications including key characteristics as specified by DTNA Engineering. Supplier must retain certification of compliance for each part and submit to DTNA upon request. In the event that a supplied test part fails due to supplier-responsible design or part quality issue(s), the supplier is expected to pay for all replacement parts and resulting damage to DTNA property. Suppliers are expected to respond to prototype material requests within two business days. If the specific deliverable requested cannot be provided within that time period, the reason for delay and anticipated delivery date of materials must be communicated within the above time period. The cost of development will be clearly defined upfront. DTNA will charge the supplier for DTNA resources used to develop product for the supplier in the event that the product, derivative of the product, or related technology can be sold by the supplier for a profit. 6.5 Design and Process Risk Assessments A Design FMEA (Failure Mode and Effects Analysis) shall be completed by the supplier for the component(s) and/or system(s) which the supplier is design-responsible. A preliminary Design FMEA shall be made available for DTNA review at time of supplier sourcing. The scope of the preliminary FMEA shall minimally address the general type of component provided by the supplier. A design-specific FMEA shall be completed prior to sample submission as described in ISO-9001 and AIAG PPAP (Automotive Industry Action Group Production Part Approval Process). The Design FMEA shall be made available for DTNA review upon request. A Process FMEA shall be completed for all systems and/or components supplied to DTNA. A copy of the completed Process FMEA shall be submitted to DTNA as a part of PPAP documentation. The FMEA(s) shall conform to SAE-J1739, as further described in AIAG FMEA Manual 4 th Edition (Potential REV Daimler Trucks North America LLC 36

38 Failure Mode and Effects Analysis). The FMEA(s) shall be sufficiently detailed so as to include design and process controls that verify component / system conformance to DTNA Requirement Specifications or Engineering Drawings. Documentation shall include a record of participation, risk assessments, ranking scales, and actions taken to reduce risk. Design and Process Controls shall include test procedures, geometric dimensioning and tolerancing, inspection reports, control charts, and error-proofing strategies that validate conformance of the parts to all provisions of the Requirement Specification or Engineering Drawing(s) (as applicable). These procedures are further detailed in APQP (Advanced Product Quality Planning) / ISO A Design FMEA revision, or DRBFM (Design Review by Failure Modes, Ref. SAE J-2886) shall be conducted by the supplier on any and all changes made to supplied parts for which the supplier is design-responsible. This requirement shall apply from the time the part goes into production until end-of-production. This risk assessment shall be made available to DTNA for review as a part of the change approval request documentation. DTNA reserves the right to specify revision(s) to the supplier s risk assessment documentation to ensure conformance to the standards noted above. Revisions shall be made available for review by DTNA in a timely manner, within 30 days (or by agreement with DTNA). 6.6 CAD Information and Other Data Exchange DTNA usually develops component parts, systems/modules and complete functions together with the supplier. Close communication and validation on the basis of a digital product description is required to structure the development process in an efficient, reliable and binding manner. To achieve this, it is necessary to undergo continuous, regulated communication via tools including but not limited to Computer Aided Design (CAD), Engineering Data Management (EDM) and electronic data interchange (EDI). Supplier representatives will provide 3D CAD data for all parts and 2D drawings, as required, to DTNA during project preparation as well as part exchange, generation, testing and installation. CAD data shall be exchanged in the agreed format and definition. To improve CAD system performance, the following operations are recommended before sending CAD data to DTNA via SWAN: Remove Internal Geometry not relevant to DTNA Remove all thread definition Remove all 3D Text defined on Part Break down assemblies into individual piece parts Logically split the model into separate datasets Every attempt should be made to communicate with DTNA engineering in order to understand the type of data required for release into Smaragd. DTNA reserves the right to remove unnecessary data not required for DTNA s use. All Standards and Methodologies posted on the DTNA Supplier Page must be followed prior to submitting any data through the SWAN website. To obtain a SWAN account, please contact your DTNA Engineering representative. All of the following are affected: New, process-relevant CAD data or Electrical/Electronic data which are to be created and as well as any modifications to them REV Daimler Trucks North America LLC 37

39 Parts integrated from defined predecessor projects plus standard parts and parts similar to standard parts, but with reduced data structure and data quality requirements. All data for spare parts which have been defined in mutual coordination by the aftersales and development departments and the supplier. In the event that supplied data does not meet its specified contractual obligations as agreed by DTNA Engineering and the supplier, one of the following will take place upon consultation: The Supplier, or a service provider commissioned by the supplier, will generate the missing content or rework CAD data at the expense of the supplier. The Supplier, or a service provider commissioned by DTNA, will generate the missing content or rework CAD data at the expense of the supplier. If DTNA incurs damages due to the fact that the supplier failed to meet its specified contractual obligations, or failed to do so within good time, the supplier is liable to DTNA for these resulting damages. 6.7 Supplier Changes Suppliers may not change the design, manufacturing process or manufacturing location of a component unless the change has been submitted and approved, in advance, by both the appropriate DTNA Engineering and Purchasing groups. Timing of change must also be agreed upon by the appropriate DTNA Engineering representative. Engineering deviations to supplied parts must be coordinated through DTNA Quality Assurance Managers, Production Managers, the corporate Purchasing Department, or Engineering Management and will be handled in accordance to ISO standard 09ENG-WI015 (Engineering Deviation) Supplier Change Timeline DTNA Engineering expects that all changes made to supplied parts are documented in a supplier timeline. The timeline should comply with the following: The timeline should begin from the time the part goes into production and a history is to be maintained for 5 years (or since the start of production, whichever is shorter). Each timeline can be for all part numbers in a family of parts (if the parts are similar) or for each individual part number. The timeline is to include a table listing the following: Date of change and starting date code on part A simple description of the change (more detailed descriptions can be kept with the supplier) One of the following types of change: o o o o o o Design change Tooling change (or future expected tooling change) Material change Manufacturing process change Quality inspection or EOL testing change Sub-supplier change REV Daimler Trucks North America LLC 38

40 - Whether this change is at the supplier tier-1 level or the tier-2, tier-3 or tier-4 level Updated timeline is to be submitted to DTNA Engineering annually (or at a specified interval) for our review. In the event that there is a suspected issue, the timeline is expected to be submitted to DTNA Engineering within 24 hours of the time DTNA requested it from the supplier. An example timeline is provided in Figure 8. Figure 13: Supplier Part Change Time Engineering Changes Changes to Engineering designs or project scope will be coordinated via the Electronic Change Form (ECF). No changes will be made or approved without adherence to the ECF Process. Suppliers are expected to provide drawings or specifications to support the content of the ECF as required. Information required from the supplier to support the ECF process is as follows: Impact of the proposed change on cost, schedule, or other relevant factors Proposed alternate change (if applicable) Number of parts currently in process or as finished parts in inventory which are not able to be changed Date on which supplier will submit sample parts to DTNA including initial sample inspection report (PPAP) Revised quote detailing any part or tooling changes (if applicable) Revised schedule (if applicable) This information will be routed to the appropriate DTNA representatives for review and decision. Engineering change(s) are expected to be implemented as quickly as possible after approval by DTNA REV Daimler Trucks North America LLC 39

41 Figure14: DTNA Change Form 6.8 Consequences of Chronic Issues A supplier with a pattern of chronic issues (especially with recent trend deterioration) may be invited to an Engineering Management Review Meeting. The intent of the meeting is to bring additional focus to the top issues facing the organization in order to bring about necessary improvements. The appropriate representative from the supplier is expected to attend a Review Meeting and be prepared to: Explain the described deficiencies in the following areas: Quality, safety, or delivery of parts Responsiveness to identified issues Quality and timeliness of FMEA and related documentation Quality and timeliness of data exchange, Quality and timeliness of change requests and related documentation 2. Present an 8D that addresses supplier s efforts to improve the systems contributing to deficiencies in the above categories REV Daimler Trucks North America LLC 40

42 These meetings are not brainstorming sessions. Supporting materials are expected to be complete and submitted to the appropriate DTNA representative no less than 72 hours prior to the meeting. 6.9 Supplier Innovation DTNA encourages innovation from employees, contractors and suppliers. The following summarizes the expectations and processes for supplier innovation. DTNA expects that innovation activities on the part of our suppliers are well-coordinated with DTNA representatives, and requests that changes impacting parts are discussed in a timely manner. The communication may take place in a variety of ways including: Informal discussions and contacts Supplier forums and showcases Contacting the Commodity Buyer to engage New Product Strategy or Engineering Leadership Special reviews with DTNA Engineering Management DTNA encourages ideas which generate results such as: Clear value for the supplier, DTNA and the end-customers Mutually beneficial cost savings Unique features meeting a consumer need Differentiating technology These ideas must meet the following pre-requisites: Business case has been assessed Technical requirements have been well understood Technical issues have been considered and analyzed A plan containing next steps has been prepared Innovations developed in the context of DTNA projects are the property of DTNA REV Daimler Trucks North America LLC 41

43 7.0 DTNA Returnable Containers, Production Parts Packaging, Labeling, and Shipping Guidelines 7.1 Production Parts Packaging, Labeling, and Shipping Guidlines Adherence to the DTNA Production Parts Packaging, Labeling, and Shipping Guidelines is required for all production materials entering DTNA facilities. The supplier is responsible to develop expendable packaging in compliance with the guidelines, even if returnable packaging is to be used. All packaging material costs should be included in the quoted price of each part for inclusion in the Purchase Contract. The DTNA Production Parts Packaging, Labeling, and Shipping Guidelines include information on the following requirements: Primary Container Internal Part Protection Pallet Construction and Performance Unitization and Palletization Returnable Container Programs Identification and Labeling Trailer Loading and Transportation Forms and Sample Labels In general, the DTNA Production Parts Packaging, Labeling, and Shipping Guidelines provide specifications to ensure the design and functionality of the packaging will maintain part quality, uphold the needs of the DTNA manufacturing plant operators, optimize freight efficiency, and reduce impact to the environment. The latest version of these guidelines can be found using the following link: delines_ pdf/66e879b3-fa06-4fc bfb809e3880 See section 12.3 for Aftermarket Packaging, Labeling, and Shipping Guidelines. 7.2 Returnable Containers DTNA Returnable Packaging Agreement Adherence to DTNA s Returnable Packaging Agreement is required for all suppliers that use DTNA-owned returnable containers. A returnable container is defined as any returnable packaging such as a container, rack, tray or tote, which has a design and function allowing repeated use between suppliers and DTNA. DTNA will purchase and retain ownership of returnable containers unless otherwise specified and establish an inventory size based on specific DTNA Truck Manufacturing Plant (TMP) daily requirements and transit times. The specifics of the Returnable Packaging Agreement outline DTNA s expectations of Suppliers use of DTNAowned returnable containers. The DTNA Returnable Packaging Agreement includes information regarding the following requirements: Returnable Container Assignment Tracking and Inventory Control Information Exchange Quality, Design and Maintenance Responsibilities Returnable Packaging Shortages and Loss REV Daimler Trucks North America LLC 42

44 In general, the Returnable Packaging Agreement provides the necessary procedures to be followed when using DTNA-owned returnable containers. This Agreement is intended to help prevent container shortages and damage to packaged parts through improved inventory control, tracking and maintenance programs. For any questions regarding Returnable Packaging, please send s to: The latest version of the Returnable Packaging Agreement can be found at this link: Guide_November_18_2014.pdf/c2c4c4e7-b6b8-4a30-aa53-47e78550b REV Daimler Trucks North America LLC 43

45 8.0 DTNA Logistics Guidelines Adherence to the DTNA Logistics Guidelines is required for production materials entering DTNA facilities. The supplier shall ensure that the logistics guidelines are forwarded to the relevant departments for assessment and consideration, and that the guidelines are followed. The DTNA Logistics Guidelines include information on the following requirements: Terms of Delivery Routings Shipment Identification numbers and ASNs Premium Freight Authorization Ryder Integrated Logistics Regional Integrated Logistics Centers (RILC s) Shipping Instructions Shipping Requirements Shipments into NAFTA (Mexico/Canada) These Logistics Guidelines are intended to explain to suppliers the principal logistical methods at DTNA and to ensure a sound, problem free flow of materials between the supplier and DTNA. To access these guidelines please log onto SupplierOnline. For any questions regarding access to SupplierOnline please refer back to section REV Daimler Trucks North America LLC 44

46 9.0 Accounts Payable The supplier s invoice must incorporate the exact information on DTNA s Purchase Contract. Including exact information will assist in expediting invoice processing and payment. For, all purchases, the price should be agreed upon prior to shipment. This is especially critical for ERS (Evaluated Receipts Settlement) transactions. For all invoices, DTNA s expected method of invoice receipt is via EDI (Electronic Data Interchange) 810 (or 210 for Freight only). Suppliers are required to monitor the 997s (Functional Acknowledgement) and 824s (Application Advice) so that invoices DTNA did not receive or were rejected can be corrected and resubmitted. See Section 5.5 for EDI information. It is DTNA s expectation that all suppliers have access to the Accounts Payable Vendor Web Portal. For sign-up information and details, please see section Invoice (non ERS) Details To complete the three-way match process and initiate invoice payment, all deliveries of goods or services to DTNA must be entered into the DTNA accounting system. For non-production materials and/or services provided, please ensure delivery is communicated to the requestor listed on the PO. For prompt payment, each goods receipt will be entered with a corresponding Shipment ID (SID) which must appear on the invoice. The Supplier s invoice must exactly match the DTNA Purchase Order. For example, if the DTNA Services PO line indicates line 10 is 2000 $1 / item, that is how the invoice must read. If the supplier is unable to generate an invoice which will match the PO, please contact the DTNA requestor listed to have the PO modified at the time of PO receipt. The purpose of the Shipment ID is to uniquely identify each delivery keyed into the system to create a goods receipt that is matched to the SID listed on the invoice. In the case of tangible goods, the SID should match the proof of delivery (POD), which will be (in order of descending preference) the Shipment #, Packing Slip #, Packing List #, Advance Ship Notice #, ASN, Shipper Number, Bill of Lading, BOL, Ticket #, Delivery Number, Delivery Note, or Order Number. In the case of contract labor or professional services provided, the SID should be the week-ended date (typically, Saturday). Failure of the Supplier s invoice to exactly match the SID entered at goods receipt will delay payment considerably, as DTNA Accounts Payable must individually confirm receipt with the requestor. Multiple invoices referencing the same SID are not permitted and may result in the invoice not being processed. The relationship between invoice and SID must always be one to one, which means only one invoice per SID and only one SID per shipment. The invoice must include the exact number of line items as the SID and it may not reference multiple PO types. One invoice may reference multiple PO/Line # s (See Import Compliance Section 10 for Customs Invoice Requirements). For example: SID Invoice PO #A Line Item #1 Shipment ID # Invoice # PO #A Line Item #2 PO #A Line Item #3 SID Invoice PO #A Line Item #1 Shipment ID # Invoice # PO #A Line Item #10 PO #A Line Item # REV Daimler Trucks North America LLC 45

47 For purchases not subject to ERS, invoices should be sent via EDI (Electronic Data Interchange) 810 as described in Section 5. Low volume suppliers may be permitted to submit invoices via rather than EDI. ed invoices must be sent in PDF format to (only one invoice per PDF, multiple PDF s per are acceptable, max size is 25 MB). If an invoice cannot be ed, invoices can be mailed to: Daimler Trucks North America ATTN: Accounts Payable PO Box 5800 Troy, MI Invoices, whether electronic or paper, must include the following criteria below. If DTNA invoices do not comply with listed criteria, the supplier will be notified of the non-compliance and will be required to resubmit the corrected invoices. Supplier name, address, vendor code and contact information The document must clearly state it is an invoice. DTNA does not pay commercial or customs invoices Invoice number only one invoice per SID (see number 7 below) Invoice date Sold-to name (e.g., Daimler Trucks North America) and address Ship-to location (plant # / street address including correct zip code) FOB ship-from location Shipment ID (SID) there must only be one SID number per invoice, and only one invoice per SID. This SID number must also match the ASN and the Packing slip. This number must be exactly the same with no variations including leading zeros, dashes or spaces. DTNA Purchase Order (PO) number AND PO Line number The requestor of the material/service is required if the PO # was not provided, but is optional if the PO # was available DTNA Part / Material number matching the material # on the PO Quantity shipped (not to exceed PO Quantity) Unit of Measure (must agree to PO) Unit Price and Currency (must agree to PO; defaults to USD if currency not specified) Extended price per line item Total amount of invoice and any allowed discounts Other charges, including Core, Freight, and Taxes if applicable, must be stated separately on the invoice. Invoices missing any of the critical fields (bolded above) will be rejected to supplier for correction. Freight should be billed in accordance with routing instructions. See Section 8 Logistics. 9.2 Evaluated Receipts Settlement (ERS) ERS (Evaluated Receipts Settlement) is a common practice in the automotive industry whereby the purchaser authorizes payment to supplier based on a Goods Receipt - without any invoice from supplier. The quantities received are multiplied by the piece price listed in the purchase agreement. This process automatically generates an ERS document for the respective goods shipment that will pay according to payment terms, based on delivery receipt date. With respect to such shipments, Suppliers should not send any additional invoices to DTNA REV Daimler Trucks North America LLC 46

48 The reference on the payment advice will be the Shipment ID (SID) number. If shipments cross an international border, customs invoices will still be required by the supplier to accompany the shipments. DTNA began migrating suppliers to ERS in Explanation of the ERS document: The ERS document is currently remitted via fax to the supplier upon creation and before the payment date. This document informs the supplier of shipments received and amount to be paid. The document should be reviewed and compared against the supplier s shipping records and the contractually agreed upon scheduling agreement or purchase order. If there are discrepancies, the receiving dock should be contacted regarding quantity; or the purchasing department regarding piece price. See Section 9.10 contact information. Information contained in the ERS- document: Invoice Number: This is the number that will appear on your remittance advice Date: This is when the ERS document was generated Supplier: Name and address of the supplier. Contact: DTNA Department to contact for discrepancies Vendor Number: DTNA-assigned supplier number Plant Address: The location where goods were received Contract Number: Purchase Order or Scheduling Agreement Material / Description: The DTNA material number and description of the material Item: The sequential number of the item on the ERS report (ex , 00002, 00003, 00004, etc.) Delivery Note: Shipment ID (SID) there must only be one SID number per shipment, and only one invoice per SID. This SID number must also match the ASN and the Packing slip. This number must be exactly the same with no variations including leading zeros, dashes or spaces. Delivery Date: Date goods were received Material Document: The DTNA system generated goods receipt number Quantity / Unit: The number of pieces received and the unit of measure Unit Price: The price per unit listed in the Purchase Order or Scheduling Agreement Net Price: The unit price multiplied by the quantity for a particular line item Net Value: The total of all net price items on the ERS document Additional Costs: Any miscellaneous costs Total Amount: The amount that will be paid for all items included on the ERS document REV Daimler Trucks North America LLC 47

49 9.3 Credit Memos Credits should not be sent to DTNA if the credit was issued to offset a debit note received from DTNA, Internal corrections with vendor should be kept internal with vendor. Credit Memos can be sent to aphelp@daimler.com for processing or mailed to the PO BOX listed in 9.1. Credit memos must include the following: 1. Supplier name, address, vendor code and contact informationcredit Memo number Credit date Sold-to name (e.g., Daimler Trucks North America) and address Ship-to location (plant # / street address including correct zip code) FOB ship-from location Shipment ID (SID) This SID number must also match the ASN and the Packing slip. This number must be exactly the same with no variations including leading zeros, dashes or spaces REV Daimler Trucks North America LLC 48

50 Original invoice number Original PO number Reason why the credit memo was issued If a return, RMA number DTNA Part / Material number matching the material # on the PO Quantity adjusted Unit of Measure (must agree to PO) Unit Price and Currency (must agree to PO; defaults to USD if currency not specified) Extended price per line item Total amount of credit Other charges, if applicable, must be stated separately on the invoice (e.g., Core, Freight, Taxes) 9.4 Payment Terms Payment terms are stipulated in the Purchase Contract. Standard payment terms for inventory purchases are migrating from Net 30 th Prox (meaning that invoices dated between the 1 st and the 31 st of the current month are due on the 30 th of the following month) to Net 45 Days. Standard payment terms for other Non-Production Materials (NPM) purchases, such as Tooling, are Net 45 days. If especially agreed upon payment terms were made with purchasing, these take the place of the standard payment terms. Past due payments will generally be made each Wednesday and Friday. 9.5 Banking Instructions DTNA s standard payment method is EFT (Electronic Funds Transfer). To sign up to receive payment via EFT or make any changes to the banking information, the supplier must contact the master records coordinator at: APVendorCode@Daimler.com or find the appropriate forms on the Accounts Payable Vendor Web Portal. For security purposes, a form will need to be completed prior to the actual change. Remittance advice to support an EFT payment can be either automatically faxed or ed, as specified by the supplier. Alternatively, an EDI 820 transaction can be provided. 9.6 Debit Memos Suppliers may receive debit memos from DTNA for various reasons such as: Invoice Price exceeds DTNA PO price To resolve, contact buyer listed on the purchase order Goods Receipt Quantity less than Invoice Quantity To resolve, contact the plant/dock (see contacts in section 9.10) Routing instructions not followed, resulting in higher freight costs Packaging instructions not adhered to, resulting in excess handling or damaged goods To resolve, contact the person listed as the Originator on the debit memo Warranty claims To resolve, contact the warranty department Returned goods (plant debits) - To resolve, contact the plant/dock (see contacts in section 9.10) NOTE: Accounts Payable is unable to provide details for debits initiated outside of the department including, but not limited to, warranty debits and plant returns. Debit memo copies are available on the Accounts Payable Vendor Web Portal for up to 60 days after payment advice date. Debit memos are posted to supplier s account and immediately deducted from payment. Debit memos can be provided in a variety of ways to supplier, including being auto-faxed, ed or via the Accounts Payable REV Daimler Trucks North America LLC 49

51 Vendor Web Portal if the supplier has obtained access. Debit memos contain specific information describing the discrepancy and what steps to follow if there are subsequent questions. 9.7 Disputes Disputes after payment should be directed as advised on Debit Memos, with pricing questions directed to the purchasing department and quantity discrepancies directed to the receiving location. Warranty debit disputes should be addressed to the Warranty Department. 9.8 Statements It is DTNA s expectation that all Suppliers send a system-generated statement in Excel format of DTNA s account(s) showing all open items including credits and unapplied cash each month. Statements should be ed to APHelp@Daimler.com. If unable to provide statement by , statements may be sent to address provided in section Audit Confirmation Requests In connection with financial statement audits, external audit firms may request confirmation of supplier receivables balances by DTNA/DDC in the form of an audit confirmation letter that is intended to be signed by DTNA/DDC Accounts Payable personnel and mailed back to the auditor. DTNA/DDC Accounts Payable department is a paperless office environment that is unable to sign and mail or fax any audit confirmation documents. Electronic Audit Confirmation Responses via are possible on a limited basis if audit confirmation requests are sent to aphelp@daimler.com and response address is provided. Confirmation of payable balance at a specific month end date is not possible. Accounts Payable team members can confirm up to 10 specific invoice numbers in response to an audit request as long as the document number format matches the format captured in our accounting system (as opposed to internal supplier reference numbers) Accounts Payable Contacts Accounts Payable Vendor Web Portal The Accounts Payable Vendor Web Portal directly assists suppliers in several ways: Find the status of current invoices in our system - invoices that are set for payment, invoices waiting to be paid, and invoices that have paid since the activation date of your vendor web portal account and up to 60 days thereafter Access remittance advice detail (if remittance advice number is known) Obtain debit memo copies for up to 60 days after it appears on supplier remittance advice Access detail for ERS documents generated by our system Access frequently-used forms (change of address, EFT request, banking information change) To sign up please send a request to: APWebPortal@Daimler.com and include vendor code, address, and contact name Accounts Payable Help Desk REV Daimler Trucks North America LLC 50

52 DDC Accounts Payable has established a dedicated helpdesk to handle supplier inquiries. All inquiries should be mailed to AP@DTNAHelpdesk.com. Every inquiry sent to the Help Desk will be assigned a ticket number, which can be used to track the issue to ensure resolution occurs timely. Upon resolution of the inquiry by the Help Desk, the supplier will be sent a survey to provide feedback on the Help Desk s ability to resolve the issue to the supplier s satisfaction/expectations. The Help Desk supplements our existing processes for resolving Accounts Payable related inquiries. The first step in the research process continues to be the Web Portal. If the information is not available via the Web Portal, the next step is to contact the Help Desk Accounts Payable Contacts APHelp@Daimler.com non_edi invoice submissions, status updates, account questions or general questions or if issue needs to be escalated to Supervisor / Manager APRemit@Daimler.com to request copy of remittance advice if not available on Accounts Payable Vendor Web Portal APVendorCode@Daimler.com to update supplier contact information (address, phone, fax, banking details, etc.) or request form to update banking information APWebPortal@Daimler.com to request access to the Accounts Payable Vendor Web Portal APEDIAdmin@daimler.com - To inquire on EDI invoice submission or report technical issues with EDI submissions Issues Vendor Web Portal Receiving Dock (see respective table) Purchasing APRemit@d APVendorCode (requester) APHelp@ daimler.com Payment Remittance X X Payment Status X Receiving issues X Price issues X Updating your company contact info Updating banking information Reconciling non-ers open account balances Tax exemption certificates Submitting monthly statements Disputing ERS debit memos (quanity) X Disputing return debit memos X Line call (LC) charges/debits X Disputing debit memos (price) X Requesting copies of debit memos Disputing non-ers debit memos (quanity) Further Contacts: X X X X X X X REV Daimler Trucks North America LLC 51

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54 10.0 U.S. Import Compliance The following is the Supplier s Guide to DTNA s U.S. Import Compliance. Detailed information on this topic can be found at: Supply_Chain_Se curity_guidelines+v pdf/022f60de-1bf7-43be-a895-d660a833f REV Daimler Trucks North America LLC 53

55 11.0 Warranty 11.1 Introduction The DTNA warranty process is designed to improve overall brand quality. Active supplier participation in the process ensures the timely resolution of quality issues and increases both customer and dealer satisfaction Warranty Agreement Suppliers are required to have a signed warranty agreement with DTNA. A copy of the standard warranty agreement is included in Section Warranty Process Dealer Claim Submittal The warranty process begins when a customer takes their vehicle to a DTNA dealer for a repair. An authorized DTNA dealer checks to see if the vehicle has warranty coverage, performs a repair, and submits the warranty claim using a web-based warranty system called Online Warranty Link (OWL). The OWL system has up-front filters that will only allow a claim to be submitted if the vehicle has warranty coverage for the repair performed. Coverage depends on the make and model of the vehicle, and goes into effect on the vehicle s in-service date. The date and mileage at the time of the failure must fall within the time and mileage parameters of the coverage for the claim to be accepted unless the claim is for an over-thecounter replacement part claim on a part that was purchased through a DTNA PDC. Replacement Part claims receive a 1 year unlimited mileage coverage from the invoice date Claim Processing Warranty claims are processed manually by the warranty processing group or automatically by the OWL system. Warranty claims containing parts and labor that meet the criteria for auto processing are accepted into the warranty system and submitted to the supplier. Warranty claims that do not meet the system requirements are processed manually. The manually processed claims are reviewed by a claim processor to validate that the parts and labor included in the claim are correct. A claim can be paid, denied, or adjusted during the manual process. Dealers are paid for the claim once it has been approved for payment by processing Supplier Response OWL creates warranty claim reports on a weekly basis, and sends them to suppliers through . The includes a Supplier Claim Billing file and an Open Recovery file. The Supplier Claim Billing file contains all of the new claims that were approved by processing the previous week. This report includes a detailed breakout of each individual claim. The Open Recovery file contains all of the claims that are open to the supplier. The supplier claim billing and open recovery data is also stored and acessible directly in OWL. Some of the details included in this report are the claim numbers, age of the claims, the material dispositions, shipping information, and the expected recovery amounts. Claims are left open to the supplier until a vendor recovery analyst closes the claims based on the response from the supplier. The DTNA warranty recovery department requires timely responses within the time frames outlined by the warranty agreement which are 30 days for claims with no part return and 45 days from the final ship date when parts are being returned for analysis. Claims not responded to within these timelines are subject to debit REV Daimler Trucks North America LLC 54

56 Warranty Recovery Suppliers respond to warranty claims directly in the OWL system, or by uploading response data using the OWL import document. The warranty recovery analyst reviews the response from the supplier and adjudicates the claims accordingly. Claims that are paid in full by the supplier are closed using a supplier credit memo number or an OWL generated debit number. Claims that are denied, or short paid by the supplier, will be reviewed by the warranty recovery analyst. The warranty recovery analyst will work with the supplier to come to an agreed upon resolution for supplier rejected claims Failed Parts Return The default part disposition is set for "Scrap." Suppliers are encouraged to work with DTNA on behalf of the end-customers to reduce failed part returns as much as possible. Reduction in part returns is achieved by responding to warranty claims based on the claim s failure description, whenever possible, or setting up a sampling, or requesting a percentage of the partsbe returned. Suppliers requesting parts to be returned are responsible for all freight cost associated with returning the part, regardless of the warrantability of the part Scrap Claims Warranty claims that do not require the dealer to return the failed part are called scrap claims. Scrap claims require a valid response from the supplier within 30 days of the submit to supplier date. The warrantability of the claim is determined by the dealer s explanation of the failure in the warranty claim story Return Claims Warranty claims that require the dealer to return the failed part are called return claims. Return claims require a valid response from the supplier within 45 days of the ship to final destination date. Dealers have the option to request the return of failed parts that have been determined to be non-warrantable. Dealers make this request by selecting the return failed part to dealer option in OWL. If the dealer does not request that the part be returned, the part can be scrapped by the Supplier Warranty Certification Program The Warranty Certification Program is a program that rewards dealers for warranty excellence. Dealers can achieve the status of bronze, silver, or gold. The benefits to dealers are based on a certification level that is reassessed and adjusted quarterly. One of the benefits for dealers who participate in the program is that dealers certified at the silver and gold levels do not have to return parts to the suppliers who have agreed to participate in the program. The benefits to suppliers who participate in the program are an improved Masters of Quality Rating and a reduction in freight, inspection, administrative, and material management costs Warranty Rating Criteria For the warranty ratings criteria and detailed descriptions, please refer to the Masters of Quality section of the Supplier Quality Manual located at Warranty Agreement (Example form) REV Daimler Trucks North America LLC 55

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58 Figure 24: Warranty Agreement Example Form REV Daimler Trucks North America LLC 57

59 12.0 Customer Support/Aftermarket 12.1 Purchasing Please find detailed information on Aftermarket purchasing in section 2.0 of this guide Delivery and Availability DTNA and its suppliers must always put the customer first. We respect the mutual relationship shared with our dealers, fleets and vehicle owners; therefore it is imperative that suppliers fulfill our orders as placed. It is the responsibility of the suppliers to accurately manage and provide ordered materials. DTNA expects ontime delivery with flexibility to meet the fluctuating demand of our customers and expects suppliers to be proactive in managing inventories and supplying material in a timely and accurate manner. DTNA defines lead time on service parts in Calendar days as opposed to Work days. The Customer Support Excellence Team requires the cooperation of all suppliers in complying with the following: Parts Distribution Center (PDC) planning requirements information to include: US and Canadian lead times in calendar days, supplier ship-from location(s), o Lead times that are consistent with the movement volume of the part, i.e. 7 to 14 calendar days for fastest moving items, 14 to 28 calendar days for medium moving items, 28 to 30 calendar days for slowest moving items and stocking of non-stock items with immediate shipment. Order placement location(s) and contact(s) o contact information to include: Name, Title, phone number, fax number, and address Pack size quantity Minimum order quantities, Part description, Vendor reference numbers Ordering Unit of Measure Weight and package dimensions of individual parts prior to receipt of inventory at DTNA PDCs Material Safety Data sheets for all hazardous materials Country of origin for all parts Status of part - part is obsolete with no replacement or if it has been replaced. Consistent shipping performance to meet PDC lead times, with order shipment in accordance with supplier s projected ship date at least 95% of the time and past due shipments not to exceed a 2X multiple of the part lead time or 30 days, whichever is less. Consolidated shipments to each PDC made once per week. When possible, expedite requests from DTNA should include all other lines due that week for shipment, but exceptions will exist when DTNA expedites one line for air freight, or by other expedited carriers. Deviation from this requirement will result in a charge back for additional freight incurred. Critical Purchase Orders (Vehicle OffRoad) shipments are an exception to this guideline. DTNA will notify EDI 861 compliant suppliers of receiving part number and quantity discrepancies at the time they are realized. It is the supplier s responsibility to respond to the 861 Receiving Advice within one business day. Ability to move out PO line due date without penalty. This can occur when our customer demand drops below anticipated levels. (In this situation, DTNA does not want to cancel and place a new order at lead time.) REV Daimler Trucks North America LLC 58

60 Flexible order requirements to allow for no minimum PDC purchase order restrictions (per part number, per purchase order). Obsolescence protection for all-makes parts. DTNA to be notified of the decision to make a part obsolete and to be given a 12-month window in which to recall and return the entire obsolete product free of penalty and without impacting return allowance. DTNA specific inventory return agreements must be established. These should be based on annual purchase volumes and should be consistent with agreement offered by DTNA to its customers: At least 8% allowance of previous year s purchases Handling charge not to exceed 10% Provide field inspection of perishable return items with approval to return if not damaged. Provide field representation to each PDC to resolve product return request issues. Provide marketing program exit strategies. When new programs are introduced through DTNA Sales and Marketing, there must be an upfront program that will allow for return of unsold product at no penalty. This will include an exit strategy to cover the full supply chain, including the dealer level if necessary. Identify service parts breakdowns and repair kits for component and assembly type parts. To include source, cost, proprietary aspects, weight, dimensions and other part attributes for each service part. Regular and advanced notification on all product changes and procedures. Changes in form, fit, or function require a change in part number. Modifications to DTNA-owned tooling require prior approval by DTNA Tooling Operations. Backwards compatibility is of primary concern. DTNA-owned tooling will be tracked and records will be available for review at any time. Please refer to section 3.0 for any questions regarding DTNA Tooling Operations. Provide recommended stocking levels for dealer distribution network. Vehicle Off Road (VOR) support to include critical order process procedures, VOR premium charge definition, 24 hour / 7 days a week product support, ship direct capability to DTNA dealers (U.S. & Canada) within 72 hours, and notification of status of order shipment within 24 hours. SID must be clearly stated on the packlist, ASN, shipping labels, BOL and invoice. SID must match exactly across all documents. Failure to do so may cause delays in payment. Suppliers are expected to have full and accurate EDI capability. Current implementation guides can be found at EDI transactions include the following: Current EDI Transactions: 850 Direct Ship & PDC aftermarket spot PO 855 PO acknowledgement (Aftermarket) 856 Advanced Shipment Notice (ASN)- must be sent within 30 minutes of truck departure 861 Receiving advice 997 Functional acknowledgement Purchase Order 850 Purchase Order; for PDC Stock and Direct Ship order types (upon verification by supplier, DTNA can also transmit PDC Emergency Orders via EDI). PO lines are transmitted with the requested ship date, based on the calculated (lead time + ship time) date. 855 Purchase Order Acknowledgement; used by Supplier to acknowledge acceptance or rejection of a DTNA purchase order at the line item level. Can also be used by supplier to transmit requested revisions to the purchase order line items (e.g. quantity, acknowledge ship dates, etc). Receiving REV Daimler Trucks North America LLC 59

61 856 Advanced Ship Notice; used by the supplier to relay the content of the shipment, packaging details, marking, physical characteristics, and carrier information. CLD loop is required to suport Bar Code Receiving at PDC locations. The CLD Loop contains segments pertinent to an ASN line item s packaging details ASN s: DTNA expects on-time and accurate ASNs (Advance Shipment Notice). An ASN must be sent within 30 minutes after a shipment leaves a Supplier's dock. The ASN allows Material Planning, the PDCs, and Dealers (for dealer specific orders) to view material in transit. When ASNs are not received or are received late, they pose many problems and can cause delayed payment to the supplier. The Advanced Ship Notice (ASN) is sent by the supplier to DTNA to document a shipment of material. The ASN provides DTNA shipment details, as well as the parts and quantities in the related shipment. DTNA expects an ASN to be sent within 30 minutes of the shipment leaving the shipping dock. As DTNA cannot validate the carrier information, it is up to the supplier to provide accurate information. The carrier information is used for shipment tracking issues and if this information is incorrect, DTNA will go back to the supplier for the correct information. The Shipment Identification (SID) number plays a vital role in DTNA s systems. In order for proper processing by DTNA, the SID must be on the ASN, Invoice and Packing Slip. If the SID number is not an exact match on all related documents, is missing or is not clearly marked, it disrupts the information flow which ultimately delays supplier payment. The ASN and Invoice have specific fields where the SID is located. The supplier s Packing Slip needs to have a field in the upper right-hand corner labeled SID Number: ###, so that the PDC s receiving team can identify the number to receive the material under. DTNA expects the SID Number to be machine printed. There should only be one SID number per shipment, per location. Likewise, there should be only one SID per invoice and one invoice per SID. The only time the supplier should have multiple SID Numbers per location on the same day is if they are shipping material via two different methods: one by air, one by ground; or one by next day and one by 2nd day. In these cases, DTNA expects multiple SID Numbers because the material will theoretically arrive at different times. Advanced Shipment Notices (ASNs) are processed every 30 minutes by the DTNA system. 861 Receiving Advice; used to convey receiving errors noted on PDC Shipments; e.g., line item overages and shortages. It is the supplier s responsibility to respond to the 861 Receiving Advice within one business day Functional Acknowledgement DTNA transmits Functional Acknowledgements from the DTNA s EDI Translator to suppliers upon receiving an inbound EDI transaction. The receipt of a 997 from DTNA to a supplier does not mean the inbound transaction has been posted to the DTNA system, or that it contains correct information. It only signifies the inbound was received in the EDI mailbox. DTNA transmits Functional Acknowledgement transactions every 30 minutes daily (Monday through Friday). Pack Lists Domestic Shipments (including critical drop ships) must include 4 copies of the packing list Pack Lists International Shipments (including drop ships) must include 6 copies of the packing list. Information for field support, such as special tools, dies, templates, assembly instructions, etc REV Daimler Trucks North America LLC 60

62 Suppliers will be held responsible for expediting charges should orders be past due. A response to customer service inquiries such as expediting or receiving issues is required within 24 hours. Any critical drop ship order must receive a waiver of part quantity and dollar minimum, have a ship date within 24 hours, and be shipped within 72 hours. Variance beyond these levels will result in a charge back to cover added handling cost incurred and compensation for lost sales Aftermarket Parts Packaging, Labeling and Shipping Guidelines Suppliers are responsible for unit packaging and labeling aftermarket parts so that they arrive, at Daimler Trucks North America's Parts Distribution Centers and/or the point-of-use, in damage free condition, with appropriate documentation. In addition, packaging must be economical with minimum impact on the environment and labeling must be in accordance with industry standards. Compliance with aftermarket packaging requirements is outlined in the Daimler Trucks North America Packaging & Labeling Requirements for Aftermarket Parts guide. Bar coding capability is required. A link to the guideline Packaging Guidelines for Aftermarket Parts is provided here: Suppliers are to adhere to DTNA s traffic routing instructions, using the carriers and guidelines provided by the DTNA Traffic Department. Specific routings for each supplier and shipping point are available on DTNA s supplier website at Contact DTNA s Help Desk at (855) to obtain a login and password for the website. The DTNA helpdesk will need the following information from the supplier when addressing questions or concerns: Company Name Company Supplier Code Company Address Company City, State, Zip Company Phone Number Covisint ID Contact Name Contact Phone Number Contact Address If routings are not shown or if there are questions on the routings, call DTNA Traffic at (503) DTNA expects suppliers to frequently verify the provided routing instructions for all shipments. PDC document examples: REV Daimler Trucks North America LLC 61

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