Logistic requirements of SMS Siemag AG

SUPPLIER MANUAL FOR DELIVERIES Logistic requirements of SMS Siemag AG

SMS SIEMAG Supplier Manual for Deliveries CONTENTS CONTENTS 1 Purposes 4 2 Scope of validity 4 3 Responsibility of the supplier 4 4 General definition of terms 5 4.1 Packaging means 5 4.2 Auxiliary packaging means 6 4.3 Packing material 6 4.4 Packaging 6 4.5 Packaged goods / shipping unit 6 4.6 Load carriers 6 4.7 Shipping unit securing means 6 4.8 Package 7 4.9 Load securing means 7 4.10 Load 7 5 General logistic requirements of SMS Siemag 7 5.1 Delivery service (delivered quantities and delivery schedule adherence) 7 5.2 Preservation 7 5.3 Packaging 8 5.3.1 Types of packaging 8 5.3.2 Identification of property 8 5.3.3 Labelling of hazardous substances 10 5.3.4 Storage class identification 11 5.3.5 To be noted for long materials which cannot be packed on pallets 11 5.3.6 To be noted for components of the Electrical and Automation Systems Division (EA) 11 6 General transport conditions 12 6.1 Delivery and incoming goods 12 6.2 Delivery addresses and delivery times 12 6.3 Transport of hazardous materials 13 6.4 Delivery of oversize and heavy parts (arrangement by SMS Siemag) 13 6.5 Delivery of oversize and heavy parts (arrangement by the supplier) 14 6.6 Documents accompanying the goods 14 6.6.1 Delivery note (for deliveries with supplier's delivery note) 14 6.6.2 Consignment note 16 6.6.3 Customs documents 16 6.6.4 Inspection documents 16 6.7 Securing of the load 17 7 Logistic requirements of SMS Siemag for deliveries with supplier's delivery documents 17 7.1 Requirements for identification of packaging goods / packages 17 7.2 Requirements for packaging 18 7.2.1 Load carriers 19 7.2.2 Condition of the load carriers 20 7.3 Disassembled incoming goods 20 7.4 Assembled order items for components of the Electrical and Automation Systems Division (EA) 20 8 Logistic requirements of SMS Siemag for deliveries to the packer and customer / installation site with SMS Siemag's delivery documents 21 8.1 Identification of goods for packer and customer / installation site 21 8.2 Package marking for direct delivery to the customer / installation site 21 8.3 Marking of packages for deliveries to packers 22 2

8.4 Announcement of readiness for shipment for delivery with a supplier bill of material 22 8.5 Announcement of readiness for shipment for delivery with SMS Siemag bill of material 22 9 Communication 23 10 Costs 23 TABLE OF ILLUSTRATIONS Figure 4-1: Overview of terms 5 Figure 5-1: SMS Siemag's definition of honouring the deadlines 7 Figure 6-1: Works layout SMS Siemag AG, Hilchenbach location 12 Figure 6-2: Example of a delivery note envelope 14 Figure 6-3: Example of a correctly made out delivery note 15 Figure 7-1: Example of properly labelled packaged goods 18 LIST OF TABLES Table 1-1: History (* based on the logistics manual of SMS Meer) 4 Table 4-1: Containers and materials of packaging means 5 Table 4-2: Auxiliary packaging means 6 Table 4-3: Load carriers 6 Table 4-4: Shipping unit securing means 6 Table 4-5: Load securing means 7 Table 5-1: Handling symbols 8 Table 5-2: Hazard symbols (valid until 2015) 10 Table 5-3: Hazard symbols (valid as from 2010) 10 Table 5-4: Storage classes 11 Table 6-1: Special transports 13 Table 7-1: Overview of standardised load carriers at SMS Siemag 19 Figure 8-1: Example of a shipping label 21 Figure 8-2: Identification marking of packages 21 3

SMS SIEMAG Supplier Manual for Deliveries HISTORY Table 1-1. History (* based on the logistics manual of SMS Meer). History Version Status Change Author Author 1.3 (SMS Meer) 01.01.2013 Revision SMS Meer Ulrich Specialist depart- 1.0* 15.07.2013 Preparation ments AMA, AME Clever, Andrea AMP, AMV, AEI Dreisbach, Svea 1 PURPOSES The Supplier Manual for Deliveries is an overview for suppliers of the requirements for the logistics services to be provided for the locations of SMS Siemag AG (hereinafter referred to as "SMS Siemag"). Purpose of the Supplier Manual for Deliveries is to ensure smooth flow of material and information between SMS Siemag, the packers and the suppliers to the effect that the further process flow in the value chain is not disturbed. Moreover the Supplier Manual for Deliveries is intended to ongoingly improve the logistic quality capability and cooperation with the suppliers. 2 SCOPE OF VALIDITY The Supplier Manual for Deliveries is applicable for the Hilchenbach and Düsseldorf locations as well as for deliveries to external packers, suppliers of SMS Siemag AG and direct deliveries at customers / installation sites. 3 RESPONSIBILITY OF THE SUPPLIER The supplier has the obligation to comply with the logistic requirements of SMS Siemag and take care that these are also fulfilled by his suppliers and the forwarding agencies tasked by him. Hence the supplier has to ensure the logistic quality capability of these suppliers and forwarding agencies. The suppliers have to comply with all common rules and regulations (e.g. StVO, VDI 2700, etc.). 4

4 GENERAL DEFINITION OF TERMS The following gives definitions of the terms used in the Supplier Manual for Deliveries (see Figure 4-1). Packaging means Auxiliary packaging means Packing material Load carrier Packaging Packaged goods = shipping unit (bill of material item or assembled unit) n SU securing means Load securing means Package n Load Figure 4-1. Overview of terms. 4.1 PACKAGING MEANS Packaging means are the main part of packaging and are intended to cover or keep together the packaged goods in a way that they can be shipped, stored and sold (see Table 4-1). Container (example) Case Box Container Cardboard Material (example) Wood Cardboard Plastic Table 4-1. Containers and materials of packaging means. 5

SMS SIEMAG Supplier Manual for Deliveries 4.2 AUXILIARY PACKAGING MEANS The auxiliary packaging means together with the packaging means are used for example to close the packages and are part of the packing. Table 4-2 shows common auxiliary packaging means. Auxiliary packaging means (example) Adhesive tape Clamps Nails Table 4-2. Auxiliary packaging means. 4.3 PACKING MATERIAL Packing materials are all materials of which the packing is made up. There are the following different shapes: - General cargo - Bulk goods - Liquids - Gases 4.6 LOAD CARRIERS Load carriers take up individual packages to form larger units. Table 4-3 shows examples of load carriers. Load carrier (example) Pallet Case Container Table 4-3. Load carriers. 4.4 PACKAGING Packaging is all of the auxiliary packaging means and packaging means to fulfil the purpose of packaging. Among other things, purpose is the protection of the packaged goods, persons and environment. 4.7 SHIPPING UNIT SECURING MEANS Shipping unit securing means supplement the load carriers and secure the shipping unit (SU) or the packaged goods from displacement, loss and environmental influences. Examples are shown in Table 4-4. 4.5 PACKAGED GOODS/SHIPPING UNIT The packaged good / shipping unit is the good (material) which has to be packed and protected from impairment in value. The packaged good / shipping unit is the smallest entity to be shipped and may consist either of a bill of material item or an assembled unit (= n bill of material items). Shipping unit securing means (example) Non-metallic and steel straps Foils Edge protectors Belts Table 4-4. Shipping unit securing mean. 6

4.8 PACKAGE A package is all of the packaged goods / shipping units, load carriers and package securing means. 4.9 LOAD SECURING MEANS Load securing means protect the cargo from motive forces and either act by force fit or positive fit. Table 4-5 shows examples of load securing means. Load securing means (example) Belts Chains Ropes Padding Air bags Wedges Table 4-5. Load securing means. 4.10 LOAD A load is a number of packages and load securing means per means of transport. 5 GENERAL LOGISTIC REQUIREMENTS OF SMS SIEMAG 5.1 DELIVERY SERVICE (DELIVERED QUANTITIES AND DELIVERY SCHEDULE ADHERENCE) It is the general obligation of the supplier to meet the delivery deadline agreed with SMS Siemag. Moreover, SMS Siemag accepts deliveries supplied after prior consultation max. 14 calendar days before the agreed delivery date (see Figure 5-1). In this connection SMS Siemag reserves the right to refuse acceptance of deliveries supplied without prior announcement more than 14 calendar days before the date of delivery and/or send the goods back to the supplier. With regard to the ordered quantity, the supply of goods must correspond to the purchase order (in considering the specified tolerances or the ones common in the trade). too early earliest possible delivery date* agreed delivery date 14 days in time * after consultation with SMS Siemag Figure 5-1. SMS Siemag's definition of honouring the deadlines. too late Time 5.2 PRESERVATION For the required kind of the preservation, Manufacturing Instructions SN 200 are applicable in the respective current version. If it is not available for the supplier, he shall order a copy. 7

SMS SIEMAG Supplier Manual for Deliveries 5.3 5.3 PACKAGING The packaging has to be selected always to fulfil the protection, storage, transport and identification functions of the packaged goods in a way that easy handling, preservation of the quality of the goods and compliance with statutory stipulations are guaranteed. Protective function: The packaged goods have to be protected by suitable packaging from damage, soiling or environmental influences which may adversely affect the quality of the goods or from causing a hazard to persons or traffic. Storage and transport function: The packaged goods have to be packed such that rationalised movement and storage of the goods either manually, by pallet truck, fork lift truck and crane are possible. Hence the hollow space between the pallet feet must not be limited by auxiliary packaging means so that the goods can be moved by pallet truck or fork lift truck. Moreover it has to be made sure that the goods cannot get out of place or lost during transport. To prevent this, use suitable aids such as non-slip mats. 5.3.1 TYPES OF PACKAGING Disposable packaging: Disposable packaging is suitable only for single use / transport route and is disposed of after transport. The use of disposable packaging has to be examined as to the cost efficiency. Reusable packaging: Reusable packaging can be used several times without impairing the protective, storing and transport function of the goods. Thanks to its longer useful life it should be given preference over disposable packaging if possible. 5.3.2 IDENTIFICATION OF PROPERTY If the packaged goods require a special kind of handling of the package, the packaging of the packaged goods has to be identified as to their properties (e.g. fragile, topheavy) in an appropriate way to ensure the respectively required handling. Table 5-1 shows the identification marking to be used. Identification function: The packaged goods or its packaging have to be identified in such a way that easy identification is possible (incl. identification of dangerous goods and hazardous materials). For transport of dangerous goods, the regulations for dangerous goods must be complied with. Besides the aspects of logistics and quality assurance of the goods always the economical and ecological aspects as well as Manufacturing Instructions SN 200 in the respective current version have to be considered for selection of the packaging. If the respective manufacturing instructions are not available to the supplier, he shall order a copy. 8

Graphic Meaning Graphic Meaning Graphic symbol symbol symbol Meaning Fragile Do not use fork lift Tear off here trucks Use no hooks Clamp here Do not destroy barrier Top Do not clamp as Do not expose to indicated magnetic fields Keep away from Stacking limit by Do not roll sunlight mass Keep away from Stacking limit by Temperature rain number limits Centre of gravity Do not stack Sling here Do not use hand truck here Table 5-1. Handling symbols. 9

SMS SIEMAG Supplier Manual for Deliveries 5.3.3 LABELLING OF HAZARDOUS SUBSTANCES The Ordinance on Hazardous Substances (GefStoffV, ChemG, TRGS510, 67/548/ EEC Directive) stipulates that hazardous substances have to be labelled by the designation, hazard symbol and name as well as risk and safety phrases. Unique assignment of the hazards is possible only by these phrases. Table 5-2 and Table 5-3 show hazard symbols. Graphic symbol Meaning Graphic symbol Meaning Graphic symbol Meaning Graphic symbol Meaning T+ Xi Very toxic Irritant Explosive Toxic/ Highly toxic T Toxic Xn Irritant Highly flammable/ Extremely flammable Irritant C Corrosive N Environmentally damaging Oxidizing Harmful E F+ Explosive Extremely flammable Compressed Gas Environmentally damaging O Oxidizing F Highly flammable Corrosive Table 5-2. Hazard symbols (valid until 2015). Table 5-3. Hazard symbols (valid as from 2010). 10

5.3.4 STORAGE CLASS IDENTIFICATION The certified storage classes (see Table 5-4) also have to be identified. The most sensitive packaging goods determine the definition of the storage classes. If no specification was made by SMS Siemag, the supplier of the packaged goods has to define the respective storage class. Moreover, the specified storage class has to be indicated in plain text in a suitable place in the accompanying documents of the goods (e.g. delivery note or packing list). Graphic symbol Meaning Outdoor storage 5.3.5 TO BE NOTED FOR LONG MATERIALS WHICH CANNOT BE PACKED ON PALLETS For deliveries of long materials which cannot be packed on pallets, supplementary stipulations will be made. The material: - has to be delivered being commissioned (order-related identification marking), - has to be secured against displacement in any direction and - has to be delivered such as to enable safe unloading. - Long materials (pipes, structural steel and steel bars) must be secured by metal bands only. Storage under roof 5.3.6 TO BE NOTED FOR COMPO- NENTS OF THE ELECTRICAL AND AUTOMATION SYSTEMS DIVISION (EA) Indoor storage For components of EA, the respectively applicable packaging guidelines have to be requested from the contact person specified in the purchase order (AME2). Indoor storage with heating Min. temperature: + 8 C Indoor storage with heating and air conditioning; Min. temperature: + 8 C max. humidity: 65 % Table 5-4. Storage classes. 11

SMS SIEMAG Supplier Manual for Deliveries 6 GENERAL TRANSPORT CONDITIONS The supplier has to observe the following for the transport to SMS Siemag, the packer and customer / installation site: - The proper and correct documents accompanying the goods have to be handed over to the carrier / forwarder for transport (see Chapter 6.6). - The supplier undertakes to store the packages made available for transport properly until arrival of the forwarder. Here properly means in particular protection from damage, soiling and environmental influences. - The supplier or his forwarder is responsible for the proper loading and transport as specified in the respectively agreed INCOTERM. Here properly means in particular protection from damage, soiling and environmental influences and ensuring safe and smooth unloading. 6.1 DELIVERY AND INCOMING GOODS The goods are delivered to Incoming Goods / Goods Acceptance at the delivery address specified in the purchase order. Unloading the delivery at other places on the works premises may be performed only after consultation with the employees of Incoming Goods / Goods Acceptance / Receit. On the whole works premises, the German road traffic regulations (StVO) must be observed. 6.2 DELIVERY ADDRESSES AND DELIVERY TIMES For deliveries to the Hilchenbach location, the following data are applicable: SMS Siemag AG Obere Schweisfurth 57271 Hilchenbach-Dahlbruch, Germany Opening hours of Incoming Goods: Mondays to Fridays from 06:30 to 14:30 h Figure 6-1. Works layout SMS Siemag AG, Hilchenbach location. 12

Figure 6-1 shows the works layout of the Hilchenbach location with the entrance, reception desk, waiting and stop areas. For any deviating delivery addresses and times, please refer to the specifications in the purchase order and / or the shipping and packaging instructions. For deliveries to the Düsseldorf location, the following data are applicable: SMS Siemag AG Wahlerstr. 2 40472 Düsseldorf, Germany Opening hours of Incoming Goods: Mondays to Fridays from 07:15 to 15:15 h 6.3 TRANSPORT OF HAZARDOUS MATERIALS The duties specified in the German federal hazardous material transportation law (Gefahrgutbeförderungsgesetz) and the underlying ordinances in the respective current versions must be observed and complied with. Moreover, all laws and statutory regulations with regard to dangerous goods in the respective current versions must be complied with. Transports of hazardous materials have to be announced in writing no later than two weeks before delivery to the destination of delivery in sending the safety data sheets (German and English). 6.4 DELIVERY OF OVERSIZE AND HEAVY PARTS (ARRANGEMENT BY SMS SIEMAG) Appropriate measures must be taken for oversize and heavy parts transports arranged by SMS Siemag (transport approvals). Table 6-1 gives an overview of the special transports. Oversize and heavy parts transports have to be announced no later than six weeks before delivery to the contact person specified in the purchase order. max. length (cm) max. width (cm) max. height (cm) max. payload (tons) Transport class 1360 250 250 24 Standard transport Oversize transport > 1360 > 250 > 250 24 subject to individual approval Heavy load transport 1360 250 250 > 24 subject to individual approval Oversize and heavy > 1360 >250 > 250 > 24 load transport subject to individual approval Table 6-1. Special transports. 13

SMS SIEMAG Supplier Manual for Deliveries 6.5 DELIVERY OF OVERSIZE AND HEAVY PARTS (ARRANGEMENT BY THE SUPPLIER) Appropriate measures must be taken for oversize and heavy parts transports arranged by the supplier. Table 6-1 gives an overview of the special transports. The oversize and heavy parts transports have to be announced no later than two weeks before delivery to the e-mail address: lieferavis@sms-siemag.com. 6.6 DOCUMENTS ACCOMPANYING THE GOODS The packaged goods have to be shipped with the documents accompanying the goods listed in the following and handed in at the Incoming Goods department. The data included in the documents accompanying the goods must be such as to allow smooth acceptance of the goods. Documents accompanying the goods without or incorrect or missing data cause more processing expenditure which will be charged to the supplier. visible marking. The delivery note must specify the following information / order details: - Supplier data (name, address, telephone number, responsible person) - SMS Siemag purchase order number - SMS Siemag material number - SMS Siemag order item - SMS Siemag material designation - Quantity (actual delivery quantity / quantity per container) and quantity unit according to the purchase order - Weight of the consignment (gross / net) - Recipient address - WBS number - Package number If a delivery is made up of several packages, it must be possible to clearly identify and assign the respective package and its contents. 6.6.1 DELIVERY NOTE (FOR DELIVERIES WITH SUPPLIER'S DELIVERY NOTE) SMS Siemag requires a delivery note giving a unique description of the delivery for processing the delivered packaged goods in the incoming goods department. The delivery note (see Figure 6-3) has to be attached to the delivery in two copies and attached well visibly in a shipping document envelope (see Figure 6-2) at the face or longitudinal side of the package. If a consignment consists of several packages, the one containing the delivery note has to be identified by clearly Figure 6-2. Example of a delivery note envelope. 14

Important note: If it is specified in the purchase order that the supplier has to contact the contact person specified in the purchase order at readiness for shipment, delivery is permissible only with SMS delivery documents. For further information, see Chapter 8. Figure 6-3. Example of a correctly made out delivery note. 15

SMS SIEMAG Supplier Manual for Deliveries 6.6.2 CONSIGNMENT NOTE The following information must be included in a consignment note: - Recipient address - Sender / delivery address - Incoterm - Number of packages included in the delivery - Total weight of the delivery - Date of handover / shipment of the delivery 6.6.3 CUSTOMS DOCUMENTS The supplier will inquire the shipping instructions from the respective person in charge of shipment according to the purchase order. For delivery subject to customs declaration (import into EU) the supplier also has to inquire in which form customs clearance is required and which documents required for customs clearance he has to provide. The supplier is responsible for proper preparation of all documents required for customs clearance as well as handing over these documents to the transport service provider. 6.6.4 INSPECTION DOCUMENTS All inspection documents such as inspection certificates, certificate of conformity with the order, dimensional and hardness certificates belong to the scope of delivery. Type and contents of the respective documentation can be seen from the drawings, SN standards available to you in the respective current version and the purchase order. There are three variants to transmit the documents: a) For parts which are not quality-inspected by SMS Siemag in-house, the documents must be sent no later than at the time of the delivery by e-mail as a PDF-file (optionally a TIF-file) to the following address: qualitaetspruefung@sms-siemag.com For reasons of data processing, the reference line may contain only the 10-digit purchase order number and, following a space, the five-digit item number. It is not permissible to combine different purchase orders in one Email. b) For parts which are quality-inspected by SMS Siemag in-house, the documents must be submitted to the quality inspector at the time of the inspection and need not be sent to the e-mail address specified above. c) For parts which are intended to be quality-inspected by SMS Siemag in-house but where this inspection is waived, an employee from our quality assurance department will request you to send this documentation to this person only. After the documents had been checked and no objections made, the release for shipment will be communicated to you. It is only at the arrival of the requested, complete and correct documentation that release of payment is given for the respective order according to the agreed terms of payment. To allow clear identification, all documents (on each sheet) must state the WBS, material, purchase order numbers, order item and, if any, the serial number. 16

6.7 SECURING OF THE LOAD Load securing consists of loading safe for operation and loading safe for transport. For the first one, the carrier is responsible because he has to see to it that the loaded vehicle complies with all the requirements for road traffic (StVO, StVG) at any time. The sender has to see to the loading safe for transport. According to the respective current version of the empowerment to enact secondary legislation "Loading and Unloading" (German Commercial Code (HGB)) the sender has the obligation to load the packaged goods / packages safe for transport, stow and attach (load) them. Moreover, safe unloading must be made possible. Regulation VDI2700 "Securing of Loads in Road Transport" must be complied with. Any cases of non-compliance with the specifications for load securing for a transport arranged by SMS Siemag has to be reported immediately to the SMS Siemag contact indicated in the purchase order. 7 LOGISTIC REQUIREMENTS OF SMS SIEMAG FOR DELIVERIES WITH SUPPLIER'S DELIVERY DOCUMENTS Unless otherwise specified in the purchase order, the supplier will perform delivery with his own delivery documents. In this case the requirements for deliveries detailed in this chapter apply in addition to the ones described in the general part. They apply both for Hilchenbach and Düsseldorf as well as for deliveries to packers (e.g. SIV in Kreuztal, Deufol in Oberhausen, ). 7.1 REQUIREMENTS FOR IDENTIFICATION OF PACKAGING GOODS / PACKAGES The following instructions must be observed in labelling the packaging goods and / or package: - For bulk goods, liquids and gases the package always has to be marked such that unambiguous identification is possible. - For general cargo, the packaging goods (e.g. raw material, sheet metal plates) or the package (e.g. ball bearings packed individually) have to be marked depending on the properties such as to allow clear identification. - Labelling (e.g. labels) has to be made such as to allow individual identification of the packaged goods / packages. The following information has to be specified on the label to allow clear identification: - SMS Siemag material number - SMS Siemag purchase order number - SMS Siemag order item 17

SMS SIEMAG Supplier Manual for Deliveries - SMS Siemag material designation - Quantity (actual delivery quantity / quantity per container) as quantity units according to the purchase order - WBS number - Package number Figure 7-1 shows two examples of packaged goods correctly labelled with regard to the contents and proper attachment of the labels. 7.2 REQUIREMENTS FOR PACKAGING The following requirements for packaging have to be fulfilled to ensure the purposes of packaging described in Chapter 5.3: - Singular-type packaging / protection from mixing different packaged goods during transport (packaging of WBS elements of one type) - Packaging per commission (per order item, if necessary) - Identification of the properties of the packaging goods (cf. Chapter 5.3.2) - Allowing smooth handling and multiple transhipment - Compliance with Manufacturing Instructions SN 200 in the respective current version - Use of environmentally compatible materials suitable for recycling - Giving preference to reusable packaging (over disposable packaging) - Protection from external influences such as corrosion, damage, soiling and environmental influences Figure 7-1. Example of properly labelled packaged goods. 18

7.2.1 LOAD CARRIERS The goods for packaging (material which can be packed on pallets) and their packaging must always be delivered on standardised load carriers (see Table 7-1). This facilitates and rationalises the goods traffic and inhouse transport at SMS Siemag. Anti-slip mats or a pallet frames have to be used if the material cannot be prevented from slipping due to its weight. When stacking several materials on a load carrier, they have to be physically separated, e.g. by timber squares, to allow easy and safe unloading. Pallet shelves are used to prevent the material from falling through the pallet recesses. Important note: At the Hilchenbach location it is not possible to change pallet cages! Standardised load carrier Example DIN standard Europallet / Euro pool pallet Make according to UIC-435-2 standard; integrated in the DIN 15146-2 Dimensions: 1,200 x 800 x 144 mm Dead weight: 25 kg Load carrying capacity: 1.5 t Identification marking: brand Pallet frames Frames are collapsible (4-6 hinged joints) and can be stacked Dimensions: 1,200 x 800 x 200 mm Dimensions: 1,200 x 800 x 400 mm Dimensions: 600 x 800 x 200 mm Pallet shelves Material: wood fibre Dimensions: 1,100 x 700 mm Table 7-1. Overview of standardised load carriers at SMS Siemag. 19

SMS SIEMAG Supplier Manual for Deliveries 7.2.2CONDITION OF THE LOAD CARRIERS Proper, undamaged and replaceable condition of the load carriers must always be checked by the supplier before delivery of the packaged goods to prevent disturbances during the further course of transport and ensure replaceability of the load carriers. Load carriers not corresponding to this condition are not replaced by SMS Siemag. The following conditions of pallets and pallet frame are unacceptable during delivery: - Sticking materials, e.g. cardboard, foil, strips, labels - Protruding and / or visible fasteners, e.g. nails - Twisted blocks - Moist surfaces - Missing components, e.g. board, block - Unacceptable components, e.g. undersized, rotten, wane - Partially cracked or broken board - Contaminates which might be transferred to packaged goods, e.g. paint, oil, odour 7.3 DISASSEMBLED INCOMING GOODS For material supplied in another degree of disassembly as ordered by SMS Siemag (several individual components exist for one order item), the supplier has to request a form from the contact person specified in the purchase order for package data notification to prepare shipment. In this form the supplier fills in the relevant data fields without changing formatting and sends it to the respective contact person no later than two weeks before delivery. 7.4 ASSEMBLED ORDER ITEMS FOR COMPONENTS OF THE ELECTRICAL AND AUTOMATION SYSTEMS DIVISION (EA) For material supplied in another degree of assembly as ordered by SMS Siemag (an individual component consists of several order items), the supplier has to request a form for package data notification from EA Logistics (AME2). In this form the supplier fills in the relevant data fields without changing formatting and sends it to EA Logistics (AME2) no later than two weeks before delivery. 20

8 LOGISTIC REQUIREMENTS OF SMS SIEMAG FOR DELIVERIES TO THE PACKER AND CUSTOMER / INSTALLATION SITE WITH SMS SIEMAG'S DELIVERY DOCUMENTS In case of shipment to the packer and the customer / installation site, please contact immediately the contact person specified in the purchase order for the preparation of shipment with regard to the shipping and packaging instructions. 8.1 IDENTIFICATION OF GOODS FOR PACKER AND CUSTOMER / INSTALLATION SITE Before making available the shipping unit and package for transport it has to be properly labelled. Identification marking allows clear identification of the shipping unit and package and mixing-up and confusions are avoided. Observe also Manufacturing Instructions SN 200 in the respective current version for identification of the goods. If the respective manufacturing instructions are not available to the supplier, he shall order a copy. Shipping unit identification is an important exchange of information between SMS Siemag and the packer / customer in respect of the delivered goods. To ensure smooth handling, ensure that the labels provided by SMS Siemag are attached to the respective packaged goods / shipping unit (e.g. Figure 8 1). Labelling of the shipping unit has to be selected such that it cannot be deteriorated by transport or other environmental influences. 8.2 PACKAGE MARKING FOR DIRECT DELIVERY TO THE CUSTOMER / INSTALLATION SITE In case of shipment to the customer / installation site, please contact the contact person specified in the purchase order for the preparation of shipment with regard to the shipping and packaging instructions. For package marking of cases the contact person specified in the purchase order for shipment preparation of SMS Siemag has to be contacted on readiness for shipment. Moreover, the package has to be labelled with the respective properties, hazard and storage class identifiers (see also Chapter 5.3.2, 5.3.3, 5.3.4). Figure 8-1. Example of a shipping label. Figure 8.2. Identification marking of packages. 21

SMS SIEMAG Supplier Manual for Deliveries 8.3 MARKING OF PACKAGES FOR DELIVERIES TO PACKERS The requirements are defined in Chapter 7.1. 8.4 ANNOUNCEMENT OF READINESS FOR SHIPMENT FOR DELIVERY WITH A SUPPLIER BILL OF MATERIAL On readiness for shipment, the supplier will contact the contact person specified in the purchase order for the preparation of shipment. The contact person specified in the purchase order for preparation of shipment will make available to the supplier a blank form for package data notification in which the supplier documents which packaged goods are assigned to which package. Important note: Formatting of the provided table must never be changed. In addition to the Supplier Manual for Deliveries, observe also Manufacturing Instructions SN 200 in the respective current version. If the respective manufacturing instructions are not available to the supplier, he shall order a copy. 8.5 ANNOUNCEMENT OF READINESS FOR SHIPMENT FOR DELIVERY WITH SMS SIEMAG BILL OF MATERIAL On readiness for shipment, the supplier will contact the contact person specified in the purchase order for the preparation of shipment. The contact person specified in the purchase order for preparation of shipment will make available to the supplier a form for shipping unit notification in which the supplier documents which order item is assigned to which shipping unit. The package data notification form assigns the shipping units to the package. Important note: Formatting of the provided tables must never be changed. In addition to the Supplier Manual for Deliveries, observe also Manufacturing Instructions SN 200 in the respective current version. If the respective manufacturing instructions are not available to the supplier, he shall order a copy. 22

9 COMMUNICATION An optimal logistics chain can be implemented only with the aid of active communication between the suppliers and SMS Siemag and/or their packers. Successful cooperation is based on fulfilment of agreements and rules and immediate information without awaiting request on matters concerning the cooperation. Obligation to provide unsolicited notification: Without delay, the supplier has to notify the contact person of SMS Siemag in writing of each delivery bottleneck to be expected which may affect deadlines or quantities. 10 COSTS In case of any deviations from the regulations stipulated in this Supplier Manual for Deliveries attributable to the supplier, SMS Siemag reserves the right to charge the costs arising in this connection to the supplier. Moreover, in case of non-compliance with the agreed requirements, SMS Siemag reserves the right to refuse deliveries upon its own discretion or to accept them still. The costs incurred for the additional expenditure will be invoiced to the supplier. 23

SMS SIEMAG AG Wiesenstrasse 30 57271 Hilchenbach, Germany Internet: www.sms-siemag.com MEETING your EXPECTATIONS X/335E 07/13. Ky. Printed in Germany Die in dieser Druckschrift enthaltenen Informationen beschreiben Leistungseigenschaften von Produkten im Allgemeinen. Die Leistungseigenschaften von gelieferten Produkten können von den in der Broschüre beschriebenen Eigenschaften abweichen. Insbesondere können sich diese Eigenschaften durch Weiterentwicklung von Produkten ändern. Die in dieser Druckschrift enthaltenen Informationen entfalten keine Rechtswirkung. Zur Lieferung von Produkten mit spezifischen Eigenschaften sind wir nur verpflichtet, wenn dies ausdrücklich vereinbart ist.