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Global Logistics Directive

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Global Logistics Directive Global Logistics Directive Version 2018/4 II Global Logistics Directive “ZF“ means ZF Friedrichshafen AG and all directly or indirectly affiliated companies according to §§ 15 ff. German Stock Law including but not limited to those companies where ZF Friedrichshafen AG holds a share of at least 50 %. ZF also include ZF TRW entities. III Global Logistics Directive Content IV List of Abbreviations V Preface 01. SCOPE OF APPLICATION AND 07. PACKAGING AND LABELING OF COMMODITIES 10 CONTRACT STRUCTURE 1 7.1 Packaging regulations 10 7.2 Packaging costs 11 02. SECURING THE INTERNATIONAL 7.3 Packaging labeling 11 SUPPLY CHAIN 2 08. DISPATCH AND TRANSPORTATION 12 03. INFORMATION AND COMMUNICATION 3 8.1 Delivery Condition 12 3.1 Contacts and accessibility of supplier 3 8.2 Dispatch Notification, Provision and Loading13 3.2 Supplier‘s Planned Down Time 3 8.3 Warehousing for Production Parts 13 3.3 Electronic data exchange 3 8.4 Forwarding instructions, transportation 3.4 Delivery Lead Time 4 documents and notification 13 8.5 Supplier Invoicing 13 04. CAPACITY PLANNING AND MONITORING 5 8.6 Transportation of Hazardous Materials 14 05. PLANNING, SCHEDULING AND CONTROLLING 6 09. IMPORTS AND EXPORTS 15 5.1 Planned Quantity 6 9.1 Customs/Foreign trade 15 5.2 Call-off procedures (applicable to the 9.2 Documentation Requirements 15 scheduling procedures Single Order, DCO, 9.3 Duty Drawback 16 Reorder Point procedure, KANBAN, JIT 9.4 Duties, Import Taxes and Brokerage 16 and JIS) 7 9.5 Import/Export Licenses 16 5.3 Stock Management Procedure (applicable 9.6 Customs Clearance 16 to the scheduling procedure Vendor Managed Inventory) 7 10. SUPPLIER ASSESSMENT AND DEVELOPMENT 17 5.4 Manufacturing, material and 10.1 Measurements of delivery reliability 17 supply releases 8 10.2 Supplier assessment 18 5.5 Minimum requirements in supplier’s 10.3 Supplier auditing 18 planning system 8 10.4 Supplier Academy 19 5.6 Purchase Commitment 8 10.5 Escalation model 19 06. CONSIGNMENT AND BONDED WAREHOUSE 9 11. EMERGENCY CONCEPT 20 6.1 Consignment 9 6.2 Bonded warehouse 9 12. NON-CONFORMANCE AND CONSEQUENCES 21 IV Global Logistics Directive List of Abbreviations AEO HTS RDT Authorized Economic Operator Harmonized Tariff Schedule Remote Data Transmission ASN Incoterms RFQ Advance Shipping Notice International Commercial Terms Request for Quotation C-TPAT IPPC Run@Rate Customs Trade Partnership against International Plant Protection Capacity measurement of produc- Terrorism Convention tion systems (Performance Test) DAP ISF SEC Delivered at Place (Incoterms ® 2010) Importer Security Filing Securities and Exchange Commis- sion DCO ISPM Delivery call-off procedure International Standards for SOLAS Phytosanitary Measures Safety of Life at Sea EDI Electronic Data Interchange JIS SupplyOn Just in Sequence Web based Supplier Portal EDIFACT Electronic Data Interchange for JIT TCO Administration, Commerce and Just in Time Total Costs of Ownership Transport MRP TTOP ERP Material Requirement Planning Title Transfer Our Premises Enterprise Resource Planning PPC VDA ENS Production, planning and control Verband der Automobilindustrie Entry Summary Declaration PTA VMI FCA Premium Transportation Authoriza- Vendor Managed Inventory Free Carrier (Incoterms ® 2010) tion VIN GLD QD83 Vendor Information Network Global Logistics Directive Global Supplier Quality Directive of ZF Group WebEDI GMMOG/LE Web-Interface for Electronic Data Global Materials Management R&D Interchange Operations Guideline/Logistic Research and Development Evaluation V Global Logistics Directive Preface Motion, Mobility and Safety - ZF is shaping the future of the mobility Over the past decade, ZF has grown considerably in This new Logistics Directive defi nes essential logistics size and gained signifi cantly importance on the global requirements of the ZF Group. In individual cases, these automotive and industrial supplier market. ZF Group’s requirements can be complemented by specifi c agree- sales and locations have more than tripled since 2006, ments. not only due to the company’s strong organic growth, but also by integrating TRW. Today ZF’s customer base is Member of the Board Head of Corporate of global and the markets ZF is operating in are increasingly Management Supply Chain dynamic. Management This requires the ability to respond agile and effi ciently to new challenges on the global markets, for ZF as well as for its suppliers. Wilhelm Rehm Hans-Arno Linkenheil 1 Global Logistics Directive 1. Scope of Application and Contract Structure The present Global Logistics Directive (GLD) is valid for production material and the associated spare parts for all stages of the product life cycle to the locations of ZF Group worldwide. This directive replaces all versions of LR10 and the TRW Global Logistics Manual. The GLD is valid globally and can be further specified using regional and/or site-specific directives. Additional supplier instructions, guidelines, forms etc. may be appended, including but not limited: • local and site specific logistics directives • EDI contract • Delivery reliability contract • Logistics agreement • Consignment contract • Bonded warehouse contract The GLD contains ZF’s basic logistics specifications. Any exceptions other than in the PO, to any of the terms and/or requirements contained in this Directive must be approved in writing by ZF. 2 Global Logistics Directive 2. Securing the international Supply Chain Supplier acknowledges and agrees • are produced, stored, prepa- to adhere to and to obtain all spe- red and loaded in secure business cial or requested trade program or premises and secure loading and exporter filing requirements (Autho- shipping areas; and rized Exporter Program). Supplier also must adhere to all security • are protected against unauthori- procedures required by ZF or any zed interference during production, government or customs authori- storage, preparation, loading and ties, including but not limited to transport. any and all Importer Security Filing requirements (e.g. SOLAS) and Furthermore, supplier ensures that: equivalent programs (ISF, ENS), U.S. Customs-Trade Partnership Against • reliable staff is employed for Terrorism (C-TPAT) program, other the production, storage, preparati- Authorized Economic Operator on, loading and transport of these (AEO) and equivalent programs and goods; and statistical reporting requirements and programs. • business partners, who are acting on behalf of supplier, also need to Supplier must share with ZF any ensure the supply chain security as audit or inspection information mentioned above. related to supply chain security in- spection and/or validation at supplier At the request of ZF, supplier will locations immediately after the audit sign a ZF security declaration as a or inspection. written confirmation that supplier is performing the listed tasks in the Supplier ensures that goods, which above sections. are produced, stored, forwarded, carried by order of ZF or delivered to ZF or which are taken for delivery by ZF: 3 Global Logistics Directive 3. Information and Communication The information flow forms the basis for a working Supplier makes sure that supplier’s contact data in Sup- logistics system within the supply chain. Supplier is plyOn Business Directory are always up to date. responsible for a timely and unsolicited transmission of information about deviations from agreements between ZF TRW supplier must update (until full migration of supplier and ZF (e.g. delivery quantities, delivery dates ZF TRW into ZF Group) the VIN (Vendor Information and packaging). Network) system and the QAD supply visualization portal prior to shipping with contact names, email addresses Supplier is obliged to ensure supply of goods to ZF ac- and phone numbers of individuals available 24 hours cording to the order and maintain replacement capacity. per day / 7 days per week to perform requirements such Supplier will also use supplier paid premium transporta- as correcting commercial documents, preparing trade tion to meet the originally scheduled destination window program affidavits and certificates of origin, or any other if necessary. If for any reason supplier is unable to meet country specific or government agency required docu- the schedules and without affecting any other rights and mentation. Supplier must also provide authentic Dun remedies of ZF, supplier will notify ZF in written notice and Bradstreet (Duns Code) identification number for immediately and proactively once the issue is known. each specific manufacturing plant address as well as the primary sales office. If required and in contrast to the aforementioned pro- vision, Premium freight to be paid by ZF must have an assigned Premium Transportation Authorization (PTA) 3.2 Supplier‘s Planned Down Time number issued by ZF place of destination and appearing Supplier must ensure the delivery of goods even during on the bill of lading and on the invoice issued by the supplier’s planned down time. The delivery schedules supplier. ordered by ZF have top priority. Therefore, supplier must provide without any extra costs a listing of planned plant down time for holidays, vacations, etc. to ZF, and when 3.1 Contacts and requested, develop and implement plans to maintain and accessibility of supplier safeguard the continuity of supplies. Supplier must nominate and communicate the name of a defined responsible contact for logistics issues as well as 3.3 Electronic data exchange a suitable back-up contact (name and contact details). The global strategy of ZF is the use
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