Strategic Procurement

Transcription

1 Vakuumventile AG Supply Chain Manual Page 1 of 8 List of contents 1 Contents / Purpose / Scope of Applicability 1 2 Work Instructions 1 3 Regular meetings between contract parties, evaluation of contract partners 2 4 Dispatch, delivery, export permits 2 5 Changes and amendments 2 6 Attachment 1 Packing and packaging instructions 3 7 Attachment 2 Frame Contract Process 4 8 Attachment 3 Kanban Process 6 9 Attachment 4 VAT Supplier Portal 7 1 Contents / Purpose / Scope of Applicability This Supply Chain Manual (hereinafter referred to as Manual ) describes general requirements to be met by all suppliers effecting deliveries to VAT (hereinafter referred to as VAT Suppliers. The aim is to simplify purchase order and delivery processes. This manual does not constitute any rights or obligations; any such rights and obligations are only established by contracts between VAT and its suppliers as well as the VAT general purchasing terms and conditions as per VAT Allgemeine Einkaufsbedingungen (AEB) (Original version in Swiss- German language). However, the parties to a contract may opt to declare this Manual to be an integral part of the contract. 2 Work Instructions The following points and requirements must be duly observed by all VAT Suppliers when effecting deliveries to VAT Vakuumventile AG in Haag (hereinafter referred to as VAT ): 2.1 Purchase order process Stock Management Mode VAT applies the following four stock management modes: Order specific Parts are produced specifically for a customer order (acc. to purchase order ) Stock managed Parts are managed via an IT-based inventory management system (acc. to frame contract) Kanban Parts are ordered and produced based on actual usage (acc. to frame contract) Bulk material (Low value) C-parts that are not managed via the inventory management system and delivered based on actual usage In case of a contract, VAT and the VAT Supplier as the contract parties jointly specify the applicable stock management mode for each individual part. The contract parties should strive to agree on a Kanban system Purchase order documents All required production documents such as drawings, bills of material, test instructions, specifications, work instructions and such are stated in the VAT purchase order, attached thereto, or can be obtained electronically, e.g., via the VAT Supplier Homepage, the VAT Supplier Portal, or via a direct electronic link to the VAT ERP systems. VAT Suppliers are required to check for any relevant updates periodically and, in any case, at the time of receiving a new purchase order. Any amended VAT standards are published under the section Changes to Standards. PMS document D MEY D

2 Vakuumventile AG Supply Chain Manual Page 2 of Order confirmation Should a VAT Supplier issue any order confirmation that deviates from the VAT purchase order, such deviations shall only be binding to VAT if and to the extent to which VAT has explicitely accepted the deviations in writing. 3 Regular meetings between contract parties, evaluation of contract partners 3.1 Regular meetings between VAT and VAT Suppliers If possible, VAT shall meet each VAT Supplier once year for an information meeting. Moreover, they shall meet ad hoc as and when the situation commands it. The following points are discussed in a mutual exchange of information: Supplier assessment score, quality and delivery performance, improvement measures Prices, savings suggestions For information only, the expected 6-month order volume and order volume development 3.2 Supplier evaluation of contract partners Each VAT Supplier is evaluated by VAT via the VAT Supplier evaluation system. Evaluation criteria include quality of deliveries, delivery performance (on time/in full) and customer service. Supplier evaluations are conducted periodically. 4 Dispatch, delivery, export permits VAT Suppliers shall handle all deliveries of goods to VAT according to the VAT instructions and delivery terms provided. In case there are no such instructions provided by VAT, the VAT Suppliers shall be responsible for adequate packing, packaging and transport. VAT Suppliers are required to explicitely advise VAT of any specific care to be exercised upon unpacking the goods. Unless otherwise required by governing laws, the VAT Supplier shall be solely responsible for procuring all necessary export permits and to ensure compliance with any export, import, transit and control regulations and formalities, or in accordance with the agreed Incoterms. Transport is to be effected according to VAT instructions. Should there be a delay in the transport of the goods for any reason, the VAT Supplier shall be required to ensure adequate storage as his cost, risk and expense. Where annual contracts or frame contracts are effective between VAT and the VAT Supplier, unless otherwise agreed, VAT shall advise the VAT Supplier of the specific delivery lots in writing or via the VAT Supplier Portal. Unless otherwise agreed, the place of delivery shall be the place of delivery at the VAT plant as stated in the VAT purchase order. 5 Changes and amendments VAT reserves the right to change and amend this Manual at any time, and shall advise the VAT Suppliers accordingly via the VAT Supplier Portal. PMS document D MEY D

3 Vakuumventile AG Supply Chain Manual Page 3 of 8 6 Attachment 1 Packing and packaging instructions 6.1 Transport packing and packaging Transport packing and packaging Europe Transport boxes provided by VAT which have been defined for a specific purpose may only be used for that specific purpose. Any misuse or use for another purpose of provided transport boxes is not permitted. VAT Suppliers are responsible for ensuring that the transport boxes are clean from the outside and from the inside, and that they are delivered to VAT, closed properly with a suitable lid against dust. Maximum permitted weight per packing unit: 25 kilos. If possible, only one layer of goods should be packed per transport box. If several layers are packed, low-particle synthetic sheets should be used to separate the layers. Immediately upon delivery at the incoming goods department, empty boxes will be returned. Additional boxes can be ordered by from loghub.transportmittel@vat.ch. At VAT Plant 1, Gate 2 ( Tor 2 ), any goods wrapped in wooden, cardboard or paper packaging will be rejected. Available box sizes are as follows (outside dimensions): 400x300x145mm 400x300x220mm 400x300x325mm 600x400x145mm 800x600x425mm 600x400x220mm 600x400x325mm 1200x800x900mm Overseas transport packing and packaging For outside packaging, either foldable cardboard boxes or plastic boxes may be used. In case of larger shipping volumes, the boxes must be packed on wooden pallets (EPAL stamped and treated acc. to IPPC Standard /ISPM 15). Maximum permitted weight per packing unit: 25 kilos. The goods packed on the pallet may not exceed the base dimensions of the pallet, i.e. 120 x 80 cm. Maximum permitted weight per pallet: 1,000 kilos. Maximum permitted height per packing unit: 100 cms. All pallets must be stackable. The goods on the pallets must be safely fixed by means of wrapping foil or plastic strapping. The parts must be packed in such a way that they cannot damage other parts during transport. Packaging must be selected so that no major effort is required for unpacking. Examples:. 6.2 Packing and identification of Parts If VAT specifies part-specific packaging, VAT Suppliers are obliged to use such packaging only as specified in the purchase order / frame contract. If no part-specific packaging instructions are provided, after cleaning of the parts, all parts must be packed into sealed PE bags or dust-free sealed PE bags. VAT Standard N-2767 shall apply for bag specifications and is available from the VAT Supplier Portal. The PE/PA bags must be labelled with the product labels provided by VAT together with the purchase order. Upon request, the label layout can be provided. PMS document D MEY D

4 Vakuumventile AG Supply Chain Manual Page 4 of Shipping documents All information on delivery date and packing list must be conform with the information stated in the VAT purchase order. 7 Attachment 2 Frame Contract Process 7.1 Frame Contract for Supplier Frame Contract for Supplier (Sample) 7.2 Explanations / details regarding Frame Contracts VAT concludes frame contracts for parts with a recurring demand. In part-specific frame contracts, the following points are fixed: precise part name, estimated 12-month demand, minimum and maximum pre-production quantities, delivery time, lot sizes, price, currency, and any special agreements made. A frame contract is released when given the status ACTIVE. The supplier has a period of five (5) days to check any changed data and confirm the acceptance of the updated frame contract in writing or via the VAT Supplier Portal month demand The calculation of the average annual demand is based on the consumption of prior years. However, the real consumption is subject to market fluctuations. The VAT procurement department constantly monitors the demand, makes adjustments when necessary and communicates changes to the VAT Suppliers via the VAT Supplier Portal. The VAT Suppliers are required to confirm the changes via the status in the VAT Supplier Portal. Maximum production capacity: (annual demand/10 = average monthly capacity = maximum provided weekly capacity) Delivery time Specifies the maximum delivery time in days for a call-off lot Lot size Specifies the call-off lot or quantity per Kanban box. PMS document D MEY D

5 Vakuumventile AG Supply Chain Manual Page 5 of Pre-production minimum The VAT Suppliers are required to ensure availability of parts for extraordinary demand peak times by a certain level of pre-production and suitably flexible production processes. The VAT Suppliers carry the specified quantity of (single) parts on stock. Where components are concerned, VAT Suppliers are required to ensure availability of all the nessessary component parts, as well as the maximum agreed delivery time per delivery lot Shortage in pre-production minimum If a VAT Supplier fails to meet the required minimum pre-production quantity at the time of a demand peak, he shall be obliged to increase his capacities so as to reach the required minimum pre-production quantity within a period of two (2) weeks Pre-production maximum VAT Suppliers are entitled to pre-produce parts / components up to the specified maximum quantity. In the event that VAT resolves to reduce the specified maximum pre-production quantity, VAT shall be obliged to take delivery of the reduced quantity (i.e., the difference between the old and the new maximum pre-production quantity), provided that these parts were already pre-produced at the time of the reduction notification Excess of pre-production maximum The VAT Suppliers shall bear any and all costs arising from exceeding the agreed maximum pre-production quantity. 7.3 Raw material For raw material releases with long lead time, VAT needs a written confirmation periodically. Therefore the supplier has to send a list with the part description, the volume and the cost to beschaffung@vat.ch. The VAT purchasing department then will confirm this list. 7.4 Failure to meet frame contract requirements Should a VAT Supplier fail to fulfil contractual obligations (e.g, regarding quality, delivery performance, costs,...), he shall be obliged to identify and promptly implement suitable improvement measures from notification of contract failure within a maximum of three (3) months. Should the VAT Supplier fail to successfully complete agreed measures, VAT reserves the right to terminate the part-specific frame contract for cause, without prior notice on the part of VAT. 7.5 Obligations in case of frame contract termination Frame contracts between VAT and VAT Suppliers are concluded for an unlimited period of time. However, each of the contract parties is entitled to terminate each individual contract position in writing or via the VAT Supplier Portal at any time, giving six (6) months` prior notice and observing the following conditions: VAT is obliged to take delivery - for a reasonable time period - of any pre-produced parts/components up to an agreed quantity, and of the remaining quantity of any raw materials released for procurement The VAT Supplier is obliged to deliver of a volume of parts / components up to the specified pre-production quantity to VAT in perfect condition. In the interest of both parties to the frame contract, a fair solution must be sought. PMS document D MEY D

6 Vakuumventile AG Supply Chain Manual Page 6 of 8 8 Attachment 3 Kanban Process 8.1 Contents / purpose / scope of applicability Kanban This Attachment 3 descibes the VAT stock management mode Kanban. Unless explicitely stated otherwise, the requirements laid out in Attachment 2 Frame Contract Process shall apply analogously. Kanban is an method applied in production process management, based on pull and push principles. Demand is determined solely on the basis of the real material consumption at specific places in the production process. Any suppliers entering into Kanban contracts with VAT are required to submit a duly signed VAT non-disclosure agreement, VAT Code of Conduct and VAT Quality Assurance Agreement (QAA). 8.2 Advantages of Kanban stock management Consumption driven Little administrative effort Reduced storage cost No time delay from incoming goods inspections No redundant inventory as Kanban stock at VAT is, at the sime time, the supplier s stock Clearly specified transport boxes No wasted capacities as supplier plans his production based on actual consumption 8.3 Kanban part requirements To qualify for Kanban stock management, parts must fulfil the following criteria: Frame contract with specified pre-production quantity = VAT guarantees to take delivery Complete delivery, cleaned and packed, as specified in the frame contract Specified packing, packaging and transport boxes Production with high process stability and reliability due to 100% control, Statistical Process Control (SPC) or other suitable procedures Successful First Article Inspection (FAI) 8.4 VAT obligations The number of boxes and quantity per box should be defined in such a way that the boxes are used up within three (3) up to maximum five (5) weeks, based on an average demand. If the boxes are not only placed in the Kanban rack but also decentrally at various workplaces, the number of boxes in circulation needs to be increased and the number of parts per box needs to be reduced. It is possible to provide VAT Suppliers with empty boxes for their pre-produced parts. The costs for partspecific transport boxes must be allocated to the part cost. The number of boxes is to be determined by the VAT procurement department based on cleanliness requirements and on how sensitive the parts are. Part-specific frame contracts are updated via the VAT Supplier Portal. Information of VAT Suppliers in case of extraordinary demand situations and to agree actions. In case of extraordinarily high demands that could cause a shortage in the agreed minimum stock levek, VAT is required to advise the VAT Suppliers to agree on suitable measures In case on quality deviations, a non-conformity report (NCR) is issued and the non-conform parts are returned to the VAT Supplier. PMS document D MEY D

7 Vakuumventile AG Supply Chain Manual Page 7 of VAT Supplier obligations So as to safeguard part availability for VAT at all times, the VAT Suppliers must keep their actual inventory level between the minimum and maximum agreed stock levels. The VAT Suppliers are obliged to check the stock management data on the VAT Supplier Portal at least on a daily basis and to deliver the resulting delivery quantities in time to the VAT Kanban stock. The VAT Supplier is responsible for ensuring a continuous availability and supply. In case of extraordinarily short-term demands that could cause a shortage in the agreed minimum stock levek, VAT is required to advise the VAT Suppliers to agree on suitable measures Kanban managed parts may exclusively be delivered in the dedicated green, closed Kanban boxes. The VAT Supplier is responsible for ensuring that the delivery quantity on the Kanban card and the actually delivered quantity in the transport boxes match. The delivered goods are booked by the VAT Suppliers in the system, using a special mobile data scanning device provided by VAT. Upon booking, the transfer of ownership to VAT is effected and the invoice is released for payment. Only clean parts and boxes may be delivered; empty boxes are picked up. Empty boxes are placed in the incoming goods department of VAT for pickup by the VAT Suppliers. The delivery time is maximum five (5) working days. 8.6 Order process planning, booking and storage of Kanban deliveries The planning and booking of deliveries is managed via the VAT Supplier Portal (see Attachment 4 for details). For storage of Kanban deliveries, a separate process instruction is created after contract signing and made available via the VAT Supplier Portal. 8.7 Rules in case of delay See Allgemeine Einkaufsbedingungen (AEB) (Original version in Swiss-German language). 9 Attachment 4 VAT Supplier Portal 9.1 Why a VAT Supplier Portal The VAT Supplier Portal is accessible to VAT Suppliers to manage purchase orders with VAT via this web-based portal, creating addedd value in the procurement process, both for VAT and the VAT Suppliers. 9.2 Advantages for VAT Suppliers The VAT Supplier Portal increases process reliability and improves data quality in the interactions between VAT and VAT Suppliers. VAT Suppliers benefit from more transparent information and can react to changes faster. They have an excellent administration tool for VAT purchase orders and have all VAT purchase orders up-to-date and at a glance at all times. Forecasts and demand estimates help planning, accelerate reaction and reply times and improve the overall procurement process. Moreover, the VAT Supplier Portal creates the foundations for future improvements and streamlining in managing purchase orders between VAT and VAT Suppliers. 9.3 Short information about VAT Supplier Portal If the VAT Supplier Portal is used by a VAT Supplier, this is the only way for this supplier to receive purchase order data from VAT (Note: the only exception are Kanban contracts where two forms of communication are allowed). Unless otherwise requested by the VAT Supplier, he will receive an with a direct hyperlink to the purchase order on the VAT Supplier Portal, as soon as a new purchase order has been created or an existing purchase order has been amended or cancelled. Purchase orders, amendments and cancellations must be confirmed by the VAT Supplier online via the VAT Supplier Portal. There is a user manual with a detailled PMS document D MEY D

8 Vakuumventile AG Supply Chain Manual Page 8 of 8 description of all processes available at under the VAT Supplier Portal Help function, including instructions how to start the application. 9.4 VAT Supplier Portal support In case of problems or queries, there is a Help function on the VAT Supplier Portal (see menu), with various documents and useful information. 9.5 Working with the VAT Supplier Portal VAT Suppliers may access the VAT Supplier Portal either via the webseite and the link provided there, or via the VAT purchase order and the direct hyperlink provided in the order text. 9.6 Login 1. Go to 2. Enter user name and password PMS document D MEY D