Supplier Playbook for H-D Asian Market Expansion Launch

Transcription

1 Supplier Playbook for H-D Asian Market Expansion Launch

2 Table of Contents H-D Thailand MY19 Milestones & Timeline Supplier Forecast, Order, & ASN Prior to SAP Movement of Goods & Direct Procurement Process Flow Shipping Document, Label, & Packaging Preparation

3 Project Milestones Early January 2018: All supplier expendable packaging approved January/February 2018: Suppliers receive manual forecasts and orders prior to April SAP go-live February 2018: Shipments begin departing U.S. from West Coast Consolidation Center Early May 2018: Material requirement date June 2018: Continuous production begins May 2019: Touring material requirement date

4 H-D Thailand MY19 Timeline Certification Build is the early build event for Thailand After the certification build there will be a slow ramp up to continuous production Material requirement date is the final date that all parts need to arrive at the H-D Thailand plant Forecast and firm order releases prior to April 2018 will be manual excel spreadsheets sent to each supplier by the Supply Chain Analyst Forecasts and orders after April 2018 will be automatically generated from SAP and visible in H-DSN/EDI

5 Supplier Forecast, Order, & ASN Prior to SAP

6 Manual Forecast Example In January 2018 the Supply Chain Analyst will generate the manual forecast and send via to each supplier The manual forecast represents the production requirement at H-D Thailand Assume monthly requirement at first date of the month Part Number Part Description Supplier Name Ship to HDMC TH Entity (3047 Powertrain or 3049 Vehicle) 22xxx1 Harness Asm ABC Vehicle Assy Total Transit Time (days) Weekly Production Requirement Jun-2018 Monthly Production Requirement Jan-18 to Dec-18 SCA W1 W2 W3 W4 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec JT Note: Red box indicates which TH entity supplier needs to ship to Early Schedule Line Example In February 2018 the Supply Chain Analyst will manually generate the Early Schedule Line and send via to each supplier Ship date from supplier facility is when parts need to leave supplier dock based on total transit time to meet monthly production requirement Total quantity shipped (pieces) will be rounded up to case pack quantity (CPQ) Supplier Name Supplier Code Ship to HDMC TH Entity (3047 Powertrain or 3049 Vehicle) Part Number Part Description Ship date From Supplier Facility Total Quantity Shipped (Pieces) Case Pack Quantity (Pieces per box) Total Number of Cases/Boxes Total Transit Time (Days) ABC 2205XX Vehicle Assy xxx1 Harness Asm 15/Mar/ /Apr/ /May/ Note: Red box indicates which TH entity supplier needs to ship to

7 Early Manual Purchase Order Example In February 2018, in addition to the early schedule line, the Supply Chain Analyst will send the Purchase Order via Since the B10 label cannot be generated via H-DSN for initial shipments, suppliers must manually create and attach the B10 label with HDMC Thailand company code All shipping documents and labels must have appropriate Thailand company code (3047 powertrain assy. or 3049 vehicle assy.) *See Shipping Document, Label & Packaging Preparation Section for additional details on label requirements PO Example: TH Entity on B10 Example:

8 ASN for Early Shipments Examples For shipments prior to April 2018 (SAP go-live is April 2, 2018), there will not be an automatic ASN generated Suppliers are required to fill in the below table and send via to the Supply Chain Analyst after shipments have left the supplier facility The Supply Chain Analyst will create the Inbound Delivery for receiving material Supplier Name Supplier Code Supplier Address Supplier Contact Name Supplier Contact Telephone Supplier ABC 2205XX 111 West Capitol Drive, Wauwatosa, WI 53222, US Jenny Tira Ship To HDMC Thailand Entity HDMC TH Purchase Order # XX X Shipped Date Part Number 15/Mar/18 22xxx1 Harness Asm Part Case Pack Description Quantity (Pieces per box) Total Quantity Shipped (Pieces) Total Numb er of Cases/ Boxes Invoice# For questions please contact: jannapa.tirathamrongkiet@harley-davidson.com Telephone Number:

9 Movement of Goods & Direct Procurement Process Flows

10 Supplier Transportation Scenarios Ship From U.S. Shipping Origin Current State Supplier Location in U.S. H-D U.S. Plant Future State Supplier Location in U.S. Consolidator (WCCC) H-D Thailand Plant Outside U.S. Shipping Origin With Final U.S. Shipping Location Ship From Current State Supplier Location Outside U.S. Supplier Location in U.S. H-D U.S. Plant Future State Supplier Location Outside U.S. Supplier Location in U.S. Consolidator (WCCC) H-D Thailand Plant Indicates H-D receipt and supplier payment initiated

11 Supplier Transportation Scenarios Outside U.S. Origin (Non-Local Suppliers) Ship From Current State Supplier Location Outside U.S. H-D U.S. Plant Future State Supplier Location Outside U.S. H-D Thailand Plant Local Suppliers All Thailand and cross-border land connected suppliers (example: Myanmar / Malaysia / Laos) Ship From Current State Thailand & Cross-Border Land Connected Supplier H-D U.S. Plant Future State Thailand & Cross-Border Land Connected Supplier H-D Thailand Plant Indicates H-D receipt and supplier payment initiated

12 Material Flow Overview Normal Mode U.S. Suppliers West Coast Consolidation Center (WCCC) WCCC Address: Harvil Ave Ste #400 Perris, CA Powertrain Assy Entity 3047 Warehouse Non U.S. Originating Suppliers Thailand FCL/LCL FCL/LCL Powertrain Assy. Vehicle Assy Entity 3049 Local Suppliers Warehouse Note: Local suppliers include Thailand suppliers and crossborder land connected suppliers (Example: Myanmar/ Malaysia/Laos) Vehicle Assy.

13 Material Flow Overview Expedite Mode Harley-Davidson approval is required for all expedite shipments U.S. Suppliers West Coast Consolidation Center (WCCC) WCCC Address: Harvil Ave Ste #400 Perris, CA Powertrain Assy Entity 3047 Warehouse Powertrain Assy. Non U.S. Originating Suppliers Bangkok, Thailand Vehicle Assy Entity 3049 Local Suppliers Note: Local suppliers include Thailand suppliers and crossborder land connected suppliers (Example: Myanmar/ Malaysia/Laos) Warehouse Vehicle Assy.

14 Supplier Incoterm Information Free CArrier (FCA) 2010 Incoterms Harley-Davidson is responsible for freight arrangements Suppliers Required to Use FCA 2010 Incoterms: U.S. Originating Suppliers Outside U.S. Originating Suppliers (non-local) Delivered At Place (DAP) 2010 Incoterms Supplier is responsible for freight arrangements Suppliers Required to Use DAP 2010 Incoterms: Local Suppliers (All Thailand and cross-border land connected suppliers)

15 Non U.S. Originating Supplier Shipments Process Flow H-D Thailand Vehicle Assy H-D Thailand Powertrain Assy Schedule lines updated through MRP Schedule lines sent to Supplier through H-DSN/EDI *Do not mix 3049 and 3047 material in one box/pallet. Must be separate. Receives Schedules in H-DSN/EDI Produces Components *Packs Material as per Entity (3049/3047) Prepare Shipping Documents Supplier 1 Commercial Invoice* 2 Packing List* *New supplier requirement *Add shipping mark column to pack list Follow Checklist Provided by H-D for shipping Send ASN Prepare and Apply Label(s) 1 B-10 Label 2 Shipping Mark Label* *U.S. originating suppliers going through WCCC do not need to apply this label. *Non U.S. originating suppliers need to apply this label. Freight Forwarder Handover Cargo to Freight Forwarder

16 U.S. Originating Supplier Shipments Process Flow H-D Thailand Vehicle Assy H-D Thailand Powertrain Assy Schedule lines updated through MRP Schedule lines sent to Supplier through H-DSN/EDI *Do not mix 3049 and 3047 material in one box/pallet. Must be separate. Receives Schedules in H-DSN/EDI Produces Components *Packs Material as per Entity (3049/3047) Prepare Shipping Documents Supplier 1 Commercial Invoice* 2 Packing List *New supplier requirement Follow Checklist Provided by H-D for Shipping Send ASN Prepare and Apply Label(s) 1 B-10 Label *U.S. originating suppliers going through WCCC do not need to apply shipping mark label. *The only label requirement for U.S. originating suppliers is the B10. Freight Forwarder Handover Cargo to Freight Forwarder

17 Shipping Document, Label & Packaging Preparation

18 Required Shipping Documents 1) Commercial Invoice a legal document required by customs to determine true value of the imported goods, for assessment of duties and taxes. new requirement for H-D suppliers 2) Packing List a document that includes details about the contents of a package. The packing list is intended to let transport agencies, government authorities, and customers know the contents of the package. existing requirement for H-D suppliers, with the addition of shipping marks column for non U.S. originating suppliers

19 Packaging Requirements for Shipping Documents Suppliers are required to place 3 printed copies of the export commercial invoice in a pouch on the outside of the pallet or on box 1 of the parcel shipment 1 copy of the packing list also needs to be included in the pouch with the commercial invoice documents * Please retain copies of the export commercial invoice documents and packing lists as there may be a request to resend if they are accidently removed in transit. In pouch: 3 copies of commercial invoice 1 copy of packing list Outside of pallet example: Box 1 of the parcel shipment example: B10 B10

20 Commercial Invoice Document New H-D supplier requirement Harley-Davidson standardized document that will be located in H-DSN Below are the sections contained in this document and the next few slides provide a stepby-step guide to filling out the commercial invoice 1 Date: The Date the Invoice was created 2 Invoice Number: Reference Or Purchase Order Number to Identify the shipment 3 Shipper: Company Name and Address, Contact Name, address, and Phone Number Including Pick up hours 4 Consignee: Company Name and Address, Contact Name, address, and Phone Number 5 Special Instructions: Any Special Instructions needed for the Consignee/ Broker/ Pick Up Agent 6 Dimensions: Length, Width, and Height of each box or package. Example 12x12x12 7 Federal Tax I.D./ EIN Number: Federal Tax I.D. or EIN number of the Shipper 8 Ship Via: Carrier/ Freight Forwarder Being Used to move Goods 9 Inland Tracking Number: Carrier/ Freight Forwarder Tracking Number 10 Total Packages: Total Number of boxes or Skids being Shipped 11 Net Weight Pounds: Weight of Products BEFORE Packaged for Shipping 12 Gross Weight Pounds: Weight of Products AFTER Packaged for Shipping 13 Part/ Item Number Identifying Part or Item Number related to each piece in the Shipment 14 Description: Complete Description of Goods Shipping 15 Unit Cost USD: The value of each Unit 16 HTS Code: The US Harmonized Tariff Code 17 Qty/ Quantity: The total number of Units in ALL the packages per piece in the shipment 18 C/ O: The Country of Origin where each unit was made 19 Total Value: The number of units multiplied by the unit value 20 Invoice Total: Complete Dollar Ammount of ALL parts Total Value added up 21 Contact: Contact/ Invoice Creater 22 Phone: Phone Number of Contact 23 Signature: Signature of Invoice Creater (electronic is ok)

21 Step-by-Step Supplier Guide to Filling out the Commercial Invoice 1. Date This is the date you are creating the commercial invoices. This date should also be the same day you are shipping the material from your facility to the West Coast Consolidation Center Date Format should be: Month / Date / Year (January 1, 2018 or Jan 1, 2018) * International date formats change (DD/MM/YY) so it is important you spell out the month. 2. Invoice Numbers Enter your reference number or your Purchase Order Number to identify the shipment Please also make sure this number is located on the physical box so your invoices can be matched to what you are shipping

22 3. Shipper This is your physical shipping address and should be formatted as follows: Company Name Company Address City, State, Zip Contact Name / Phone Number address / Pick up Hours

23 4.Consignee This is the physical address of where you are sending your material and should be formatted as follows: H-D Entity Number Company Name Company Address City, Country Contact Name / Phone number * Harley-Davidson will provide the exact way the consignee name will need to be formatted for customs purposes

24 5. Special Instructions Any special instructions needed for the Consignee / Broker / Pick Up Agent Examples: Pick up at Dock Door skid said to contain 32 boxes Do not double stack Hot Shipment You can also put carry over details surrounding what you are shipping Additional Dimensions

25 6. Dimensions Enter your dimensions in the following format: Length x Width x Height (Inches) If you have more than one box you can provide the detail in the Special instructions in the following format 4 12x8x4 or 2 48x45x36 7. Federal Tax ID / EIN This is where you enter your unique ninedigit number assigned by the Internal Revenue Service XX -XXXXXXX

26 8. Ship Via Carrier / Freight forwarder being used to move the goods to the West Coast Consolidation Center UPS Small Parcel, LTL Carrier, Truckload Carrier 9.Inland Tracking Number Carrier / Freight forwarder being used to move the goods to the West Coast Consolidation Center UPS Small Parcel, LTL Carrier, Truckload Carrier

27 10. Total Packages Total number of boxes or skids being shipped Examples: 1 Skid 1 Box / 1 Carton 1 Skid STC (Said to Contain) 23 boxes / cartons 11. Net Weight (Pounds) Weight of the products BEFORE packaged for shipping.

28 12. Gross Weight (Pounds) Weight of the products AFTER packaged for shipping 13. Part / Item Number Identifying part or item number related to each piece. H-D Part Number

29 14. Description Complete description of the goods shipping Example: Full Name including style, color or model number 15. Unit Cost (U.S. Dollars) Total value of each unit in U.S. Dollars Example: $1.25

30 16. HTS Code The U.S. Harmonized Tariff Code, this 10 digit code is used to file for export clearance. Example: Qty / Quantity The total number of units in ALL the packages per piece in the shipment.

31 18. C/O (Country of Origin) The two letter country code where each unit was made. 19. Total Value (U.S. Dollars) The number of units multiplied by the unit value. 20 $1.00 per unit = $20.00 (total value)

32 20. Invoice Total This is the sum dollar amount of ALL parts Total Value. 21. Contact Contact Name / Invoice Creator

33 22. Phone Phone number of contact in the following format (area code) Signature Signature of the invoice creator, this signature could be written or electronic. Electronic is just the typed name in this field

34 U.S. Originating Supplier Packing List & Label Requirements 1 packing list print out and 3 commercial invoice print outs required with shipment in pouch B10 label is required on all boxes/pallets. Please ensure the B10 label is put on the original box/pallet before putting any shrink wrap. Shipping mark label is not required for U.S. suppliers shipping to WCCC Example of Supplier packing list: Example of Pallet Shipment: Box # Part# Part Description Supplier Name Supplier Invoice# Quantity Net Weight (Pounds) Gross Weight (Pounds) st Frame XYZ SH XX lbs. XX lbs. 282c8 Switch Knob XYZ SH XX lbs. XX lbs. B ab Gearbox XYZ SG XX lbs. XX lbs. Shipping marks Note: Net Weight (Pounds) Weight of the products BEFORE packaged for shipping Gross Weight (Pounds) Weight of the products AFTER packaged for shipping

35 Non U.S. Originating Supplier Packing List & Label Requirements 1 packing list print out and 3 commercial invoice print outs required with shipment in pouch B10 label is required on all boxes/pallets. Please ensure the B10 label is put on the original box/pallet before putting any shrink wrap. Shipping mark label & additional Shipping Marks column in the packing list are required Example of Supplier packing list: Box# Part# Part Description Supplier Name Supplier Invoice# Quantity Net Weight (Pounds) Gross Weight (Pounds) Shipping Marks st Frame XYZ SH XX lbs. XX lbs. H-D Motorcycle (Thailand) Ltd. 282c8 Switch Knob XYZ SH XX lbs. XX lbs. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 1/2 Example of Pallet Shipment: B10 Shipping mark label 2 312ab Gearbox XYZ SG XX lbs. XX lbs. H-D Motorcycle (Thailand) Ltd. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 2/2 Note: Net Weight (Pounds) Weight of the products BEFORE packaged for shipping Gross Weight (Pounds) Weight of the products AFTER packaged for shipping

36 Shipping Mark Label Details 1. Supplier to create a separate packing list for each consignee 2. Packing list to include an additional column Shipping Marks 3. Information in Column Shipping Marks limited to Consignee name, address, pallet/box number count 4. Create label as shown in Yellow, same as mentioned in Shipping Marks column in the packing list. Example of Supplier packing list: Box# Part# Part Description Supplier Name Supplier Invoice# Quantity Net Weight (Pounds) Gross Weight (Pounds) Shipping Marks st Frame XYZ SH XX lbs. XX lbs. H-D Motorcycle (Thailand) Ltd. 282c8 Switch Knob XYZ SH XX lbs. XX lbs. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 1/2 Shipping Mark Label 3047 Powertrain or 3049 Vehicle Assembly Entity H-D Motorcycle (Thailand) Ltd. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 1/2 10cm 2 312ab Gearbox XYZ SG XX lbs. XX lbs. H-D Motorcycle (Thailand) Ltd. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 2/2 15cm H-D Motorcycle (Thailand) Ltd. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Box 2/2 Notes: The shipping mark on the pallet/boxes must match the Packing list If the shipping mark does not match the packing list there will be a penalty charge of up to THB 50,000 depending on the assessing officer s judgment If there is any such penalty levied on HDMC (Thailand) due to non-compliance of shipping mark notification, the same will be charged back to the supplier

37 Instructions for Shipping Mark Label Printing Font size : 12 Font size : 22 CONSIGNEE NAME Font size : 18 BOX No. 1 of 4 H-D Motorcycle (Thailand) Ltd. (Entity ) 500/38, Moo3, Tambol Tasit, Amphur Pluakdaeng, Rayong, Update Box # if shipping in Boxes. 10 cm Font size : 18 Pallet No. 1 of 4 Update Pallet # if the material is packed over Pallet. Additional Information :- 15 cm Label Color : White Font Color : Black Font Type : Calibri Label Position : Shown on slide no. 32 ( ref. Pallet Image ) Printer : Laser / Inkjet 3047 Powertrain or 3049 Vehicle Assembly Entity

38 Packing Requirements for Non U.S. Originating Suppliers Pack the products according to the packing standards requested by HDMC Products for 2 entities (3047 powertrain and 3049 vehicle) cannot be mixed in the same box/pallet For each entity: 1. Create the packing list with additional column Shipping Marks 2. Create the Shipping Marks label as advised 3. Book the shipment with the H-D appointed Freight Forwarder 4. Freight forwarder verify shipping documents as per the checklist 5. Freight forwarder create the HBL indicating the Shipping Marks information under Marks & Numbers section

39 Non U.S. Originating Supplier Checklist for Freight Forwarder Supplier Name: Address: 1 H-D Motorcycle (Thailand) Ltd. (Entity ) material not mixed with HDMC (Thailand) Ltd. (Entity ) material 2 All commercial documents including invoice and packing list generated as per H- D s requirements (separated by Entity) 3 B10 Labels on all boxes/pallets (not on shrink wrap) 4 Shipping Mark Label and Packing List requirements followed Shipment/Invoice Ref No.: Tick on the boxes when completed 5 Ensure document and material accuracy 6 Packaging used as per international guidelines (no fresh wood packing) I have checked and verified that the above are in order. Carrier s Name and Signature

40 Packing Requirements for U.S. Suppliers Pack the products according to the packing standards requested by HDMC. Products for 2 entities (3047 powertrain and 3049 vehicle) cannot be mixed in the same box/pallet. For each entity: 1. Create the packing list 2. Create the commercial invoice 3. Book the shipment to H-D appointed carrier as specified in routing guide to West Coast Consolidation Center 4. Freight forwarder to verify the shipping documents as per the checklist 5. Freight forwarder to create the HBL 6. Freight forwarder create the shipping label with information as per Shipping Marks for each box/pallet and paste it on the box/pallet after consolidation at WCCC

41 U.S. Originating Supplier Checklist for WCCC Supplier Name: Address: 1 H-D Motorcycle (Thailand) Ltd. (Entity ) material not mixed with HDMC (Thailand) Ltd. (Entity ) material 2 All commercial documents including invoice and packing list generated as per H- D s requirements (separated by Entity) 3 B10 Labels on all boxes/pallets (not on shrink wrap) 4 Ensure document and material accuracy Shipment/Invoice Ref No.: 5 Packaging used as per international guidelines (no fresh wood packing) Tick on the boxes when completed I have checked and verified that the above are in order. Carrier s Name and Signature

42 Shipping Accuracy and Implications Background H-D (Thailand) Entity is registered under the privilege of Free Zone and needs to comply with Thai law. Thai law has zero tolerance for instances of incorrect documentation and inventory inaccuracy within Free Zone. Based on the above, here are some of the consequences that may result due to non-compliance: 1. For any inventory inaccuracy under Free Zone law, importer has to pay a penalty 4 times the value of goods as well as duty on the inventory adjustment quantity/value. There is also a high chance the company may get black listed. 2. Any inventory adjustment later requires an official request to be made to the local officer having jurisdictional power over the factory to review the explanation made by the importer. The officer has full authority to either allow the adjustment if convinced, or else take necessary action by imposing duties/penalties on the variance. *It is critical that suppliers send accurate documentation and ship the correct quantities.

43 Please reach out to your Supply Base Analyst or with questions