Land Systems-Canada. Supplier Manual. Customer Focus Teamwork Leadership Integrity Innovation

Transcription

1 GENERAL Land Systems-Canada DYNAMICS Supplier Manual Customer Focus Teamwork Leadership Integrity Innovation

2 Table of Contents Introduction 3 From the Director of SCM Code of Ethics General Dynamics Overview 4 General Dynamics Corporation Corporate Structure GDLS Mission GDLS C Customers Supply Chain Management Mission Supply Chain Management Vision Purchasing Information Request for Quotation Competitive Bidding Negotiation Firm Fixed Pricing Lead Time Production Plan Purchase Orders Shipping Releases Terms & Conditions Communications Delivering the Product 6 Export Control 10 Customs 10 Transportation 11 Financial Information 12 Quick GDLS C Website References 13 2

3 Introduction Dear Supplier, Everyone at General Dynamics Land Systems Canada (GDLS C) takes great pride in manufacturing the best light armored vehicles in the world. Everyday we are focused on our commitment to deliver exceptional products, services, and aftermarket support to all of our customers. As a valued supplier to GDLS C, you are a key contributor in allowing us to meet or exceed our commitments. We expect you to maintain extremely high quality standards, ensure your deliveries are on time every time, and keep your products and services competitively priced. In return, we offer you the opportunity to share in the growth of our business. The information contained in this manual provides an overview of Supply Chain Management (SCM) s general procurement requirements and expectations. Within it, you will find a brief corporate overview, insights into our mission and vision, and the various SCM processes we use. It is intended to assist you be a successful part of our supplier community during the course of conducting business with us. I also encourage you to develop and maintain a very strong working relationship with your buyer, because together we make an impressive team. Thank you for your continued support, Daniel K. Foster Director, Supply Chain Management Code of ethics Both as a matter of sound procurement practice and basic business integrity, we at GDLS C make our purchase decisions solely on the basis of which suppliers offer the best value for goods and services we are procuring. We avoid doing anything that suggests our purchase decisions may be influenced by any irrelevant or improper consideration whether illegal, such as a kickback or bribe, or technically legal, such as a personal friendship, favours, gifts or entertainment. It is our policy that no GDLS Canada employee accepts any gift, entertainment, or other gratuity from any supplier or bidder for GDLS business. Suppliers or potential suppliers are expected to understand and respect this policy at all times. 3

4 General Dynamics Corporation General Dynamics, headquartered in Falls Church, Virginia, employs approximately 84,000 people worldwide and reported 2007 revenues of $27.2 billion. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and mission critical information systems and technologies. General Dynamics Land Systems Canada (GDLS C), located in London, Ontario is a business unit of General Dynamics Land Systems of Sterling Heights, Michigan and provides a focal point for the global initiatives of the corporation. For over 30 years, more than 1800 highly skilled technical employees have designed, manufactured, delivered and supported to global customers a unique family of light armoured vehicles (LAV). GDLS Canada has fielded over 7600 Light Armoured Vehicles in 30 variants with its customers world wide, and in 2007 reported annual sales are in excess of US$1.2 billion. Corporate Structure Aerospace Combat Systems Information Systems & Technology GD Marine Systems Armament and Technical Products Ordnance and Tactical Systems European Land Combat Systems GENERAL DYNAMICS Land Systems Sterling Heights, MI GENERAL DYNAMICS Land Systems International Wheeled Vehicles London, ON GENERAL DYNAMICS Land Systems Australia Adelaide, Australia 4

5 GDLS Mission To be established as the world s preferred supplier of a full spectrum of land and amphibious weapon systems. To adequately support our mission, it is important that our Suppliers understand the environment in which GDLS Canada (GDLS C) operates. Winning new business in the global defense marketplace demands: World class products Significant investment of company finances Time and resources Extremely competitive pricing Viable and credible industry participation strategies Responsive logistics support systems Supportive and competitive supplier network GDLS-C Customers GDLS C is proud to have supplied almost 10,000 LAVs to military forces around the world. They have been deployed in non NATO/Non UN Missions, UN Missions and NATO missions in Panama, Kuwait, Iraq, Afghanistan, Cyprus, Haiti, Somalia, Ethiopia, Eritrea, Yugoslavia, Croatia, East Timor, Bosnia Herzegovina, the Balkans, Kosovo, Afghanistan and Sudan. In every instance their performance has proven them invaluable, extremely versatile and highly effective. U.S. Marine Corps U.S. Army U.S. Army National Guard Saudi Arabian National Guard Australian Army New Zealand Army Canadian Army 5

6 Potential/New Suppliers Supplier Survey All potential/new Suppliers to GDLS C are required to complete both the Supplier Survey and the Supplier s Quality System Evaluation. These documents are available on the GDLS Canada website at Once the surveys have been completed, our team will analyze all potential Suppliers. The information that we collect in these surveys is critical to our business process. GDLS s Supply Chain Management department is committed to developing world class suppliers that provide the highest quality materials and services at the best value, on time, every time. If your business fits our requirements for current or upcoming programs, a designated Buyer will contact you for further information. Supply Chain Management Mission Our purpose is to manage the supply chain to consistently provide on time, quality, and cost effective material and services to our internal and external customers while assuring stakeholder value. This is achieved through developing the best value supply chain relationships and core processes in team collaboration with all GDLS organizations, our customers, and suppliers in an environment of open communication, mutual trust, and shared commitment to operational excellence, continuous improvement and high ethical standards. Supply Chain Management Vision To execute innovative and cost effective Supply Chain solutions throughout the development, design, manufacturing, and life cycle support phases that are best in class in quality, schedule, cost and overall customer satisfaction. Achieving this mission and vision is highly dependent on the performance of our Suppliers. The extent to which our Suppliers comply with our technical, commercial and performance requirements and expectations is key to GDLS C s success. We focus on complete customer satisfaction by striving to meet all contractual requirements, as well as by responding to and resolving on a timely basis, every customer request. Because Supplier performance is a key factor in our performance and ability to satisfy our customers we must work together to deliver a world class product on time and within budget. Our objective is to develop long term, strategic relationships with our suppliers based upon trust, integrity, respect, communication and proven performance. 6

7 Request for quotation (RFQ) GDLS C has 3 reasons for issuing an RFQ to Suppliers: 1. Customer request for price and availability 2. Customer request for a firm order 3. Expired pricing from a previous quote GDLS C is required to respond to a quote within 30 days from date of issue. The Buyer will provide a deadline when the RFQ is issued. A response to a GDLS quotation request is expected from suppliers. If the Supplier does not intend to make an offer, a No Bid response confirms that the company received the request and helps us to better understand the correct fit in the supplier community, particularly if a brief explanation is given. It also avoids time being wasted in attempting to verify whether a supplier is intending to bid or whether a bid may have been lost or misdirected. Competitive bidding It is GDLS Canada s policy to extend the opportunity to quote to as many suppliers as is reasonably practical. We are required to demonstrate, via audits, that orders have been competitively quoted. All Buyers follow this requirement and adhere to corporate procurement process that links GDLS s procurement activities worldwide and ensures that General Dynamics develops a world class supplier base generating the best value to its various customers in quality, service, and price. Negotiation As a normal part of our process, suppliers are engaged in a negotiation phase after submission and clarification of responses to the RFQ. All elements of quality, service, technology, and price are reviewed during the negotiating process to ensure that a fair and reasonable cost is established Firm Fixed Pricing GDLS C expects that suppliers will quote in the currency of their home country. Where extra costs are included for exchange contingencies or forward currency protection, Suppliers must identify these costs in their offer. In such cases arrangements may be made for exchange protection under the terms of the Prime Contract. Lead Time It is essential that GDLS knows the supplier s current lead time to deliver the part or component, as the lead time is a critical planning factor used in determining when and what quantity to purchase. It is expected that all bids will include the lead time data for each item quoted. It is also important that GDLS be advised of any significant changes in manufacturing lead times as they occur, including the reason for the change. 7

8 Purchase Orders Purchase Orders are formal agreements between GDLS and the Supplier, documenting the agreements reached during negotiations. GDLS C purchase orders (POs) include the following information: Terms and Conditions Part number, description, and revision level Unit price Quality Assurance requirements Total Line Quantity You may see three types of PO documents issued to your company from our Oracle system: Standard PO A simple spot buy PO. A Standard PO is issued for items where we do not anticipate recurring demands beyond what is placed on that PO. It is also used for all Indirect purchase orders. Blanket PO When GDLS accepts pricing from your company it is entered into a Blanket PO. This PO will be a record of all of the terms we have agreed to, including quantities, price breaks, payment terms, and validity dates. A blanket PO is not an order from GDLS; it is just a record of our agreement for you to supply this material if a requirement arises. Blanket Release When/if material is required that is currently on a Blanket PO, we will issue a Blanket Release against the Blanket PO that defines the quantity, delivery date, and end use information for this requirement. Each PO typically remains valid for either an agreed period of time or for an agreed quantity of a part number. The validity may extend over the life of a program and therefore across multiple years. Supplier performance under the contract is significant in the decision whether to extend a contract or to undertake a new bid process and possibly award the business to a more responsive Supplier. Supplier performance is assessed on compliance to stated GDLS Supplier requirements as well as confirmation of competitiveness through benchmarking. Acknowledgement (Acceptance) Upon receipt of any purchasing document from GDLS C, it is the Supplier s responsibility to ensure that it accurately reflects all of the terms and conditions that were agreed to during negotiations. In the event that a discrepancy is discovered, the supplier must immediately notify the buyer. Delivery against a PO constitutes acceptance of the PO and its attachments. 8

9 Terms & Conditions Your RFQ or PO will specify the terms and conditions that are applicable to the PO. GDLS C s terms and conditions are available on our website at: purchasing/terms.htm. Should a supplier make an offer to GDLS that requires a variation to these conditions, the supplier must identify the exception on the Quotation Response, along with the reason and suggested alternative language. GDLS C, as a CGP registered company, will conduct business only with suppliers who are registered or proven to be exempt. GDLS Canada s Quality Assurance requirements are detailed in the GDLS Canada Quality Department Supplier Manual, available on our website at: isupplier GDLS Canada conducts all purchasing activities for production and service parts, repair and overhaul and indirect purchasing online using Oracle isupplier Portal. isupplier Portal is a secure Internet self service tool enabling Suppliers to access information related to their site. All Suppliers registered with GDLS need to have an isupplier account. No special software, aside from an up to date version of Microsoft s Internet Explorer and an Internet connection, is required to access this system. As a Supplier, you are expected take an active role in the procurement process and become proficient using this system. isupplier provides you the ability to access the latest information including POs, invoicing and payment information. Additionally you are able to submit RFQ responses, change requests, ship notices and payments. Communications All communication must be conducted through the GDLS Canada Buyer who has total responsibility for the execution of the bid and/or placing of business with you. GDLS C is committed to timely responsiveness to our suppliers and therefore expects the same in return. Fact finding or clarification requests, may be initiated by the Buyer for any aspect of an offer including delivery schedules, quality requirements, exceptions, and pricing; or where pricing or delivery is clearly not in line with expectations based on historical data, purchase volumes, market trends and/or competing quotations. This process is intended to ensure our complete understanding of your bid, and that you understand our requirements. When a supplier is experiencing problems or delays which may affect a contractual ship date to GDLS Canada, the supplier is expected to contact the GDLS Canada Buyer to advise the nature of the problem and proposed revised ship date. 9

10 Delivering the Product The GDLS C Buyer is responsible for reaching an agreement with the Supplier for suitable delivery arrangements that support our delivery schedule. Based on the agreement expressed in the PO, GDLS C then relies on the Supplier to ship accordingly as our scheduling is based on these forecasts. When Suppliers fail in their obligations to ship on time, additional costs are incurred in internal exception reporting, expediting, work around planning and possible production delays. Suppliers who repeatedly fail in this obligation cannot expect continuing opportunities to supply GDLS Canada, and may potentially be charged back for costs incurred due to lost schedule. Additional information regarding on time delivery is available in the Supplier Expectation Package. Export Control As a manufacturer in the Defence Industry, there is a requirement for GDLS C to be registered in Canada under the Controlled Goods Directorate (CGD). GDLS-C Export Control Policy GDLS Canada, as a CGD registered company, will conduct business only with suppliers who: are registered with their government to participate in the defence industry; or have proven not to require registration (commercial material, technology, and/or services); or are exempt from registration, by their government, but may still participate in the defence industry, e.g. Canadian Government Agency; or are not required to register, as their government does not have a registration program (specific export licenses for defence material may still be required). Suppliers seeking additional information on export compliance (CGD, ITAR, etc.) should visit: Customs Documentation requirements The purpose of this information is to provide suppliers with general information pertaining to Canada Customs documentation requirements when exporting to GDLS Canada. Detailed information is available at: When exporting to Canada from any country, a GDLS C Canada Customs Invoice (CCI) is required for each shipment to GDLS C regardless of value. If data elements are missing at time of arrival in Canada the shipment will be detained by Canada Customs until the additional data elements are provided. This will result in late payment of your invoice, due to delayed receipt of your shipment. Failure to supply a fully completed CCI will delay the clearance of your goods into Canada. Any additional costs for such delay will be the responsibility of the Seller. To ensure that you are choosing the appropriate GDLS C Canada Customs invoice and for a list of Customs Department personnel who can provide assistance in its completion, please refer to: 10

11 North American Free Trade Agreement (NAFTA) North American sellers/vendors must supply a valid NAFTA Certificate of Origin for all qualifying goods. Goods not qualifying of NAFTA are to be clearly identified on the GDLS C Customs Invoice with the appropriate Country of Manufacture. GDLS C will contact any seller/vendor who has not supplied a valid NAFTA Certificate on any goods. Any additional costs incurred by GDLS C for failure to provide a valid NAFTA Certificate or appropriate country of manufacture will be the sole responsibility of the Seller/Vendor. Receiving a Shipment from GDLS-Canada All foreign suppliers (overseas and US) are expected to import goods shipped to them by GDLS Canada. Two key responsibilities associated with importing goods include 1) obtaining all required import licenses or permits and 2) contracting with a customs broker to facilitate customs clearances, on the foreign supplier s behalf, into the foreign supplier s country. To help expedite the shipment of goods to foreign suppliers, GDLS Canada requests that all foreign suppliers provide the following information to the GDLS Canada International Trade & Transportation Services (ITTS) Department via (customs@gdls.com) as soon as a purchase order is issued: Supplier Name, Address, Contact Name, Phone Number, Fax Number, and Address If located in US, applicable IRS Tax Identification # (Tax ID) Information on Supplier s Designated Customs Broker (Name, Phone Number, Special Instructions, Port of Entry Coverage) If goods are controlled for import into supplier s country, applicable import authorization information (i.e. license/permit number or exemption citation) If any of the information referenced above should change, foreign suppliers are expected to immediately notify the GDLS Canada ITTS Department via (customs@gdls.com) of the changes. Transportation Routing Instructions Please visit the GDLS C website ( to ensure that you are using up to date routing instructions. Non North American suppliers should contact ITTS Department to arrange specific transportation routings. Please refer to the website for ITTS Department contact information. GDLS-C Packaging Requirements The GDLS Canada Packaging, Handling, Storage, and Transportability Group (PHS &T) has produced a Packaging Requirements Booklet that contains information on how to package material for shipment to GDLS Canada. Information contained within includes: Packaging guidelines, general packaging information, production packaging guidelines, service parts packaging guidelines, considerations for environmental packaging, manual material handling guidelines, mechanical material handling, and hazardous material packaging requirements. Supplier conformance to these Packaging Standards is mandatory. When vendor packaging material does not meet the criteria as described in the standard, it causes a safety and a material handling problem within GDLS Canada plants. Therefore, any received material requiring additional handling as well as repackaging will be assessed and the labor and material cost at the current GDLS Canada rate will be charged to the vendor. To download a copy of the GDLS Canada Packaging Requirements booklet, please visit 11

12 Payment terms GDLS C s standard payment terms are MNS 2, which means that payment shall occur on the 2 nd day of the 2 nd month following receipt of a correct and proper invoice. For example, if GDLS receives a correct and proper invoice on March 25, payment would occur on May 2. Invoices Where invoices are required, the original copy and one duplicate copy of the invoice must be submitted to GDLS. No additional copies are required unless specifically requested. GDLS Canada is moving to a new payment system based on Evaluated Receipt Settlement (ERS). ERS automatically posts the invoice in our system based on information from the Goods Receipt and Purchase Order. No invoice is required from the supplier, and none should be submitted except in cases where there is no physical receiving involved (e.g. setup or tooling charges). Each purchase order item will identify if ERS is invoked; otherwise the normal invoicing process should be followed. Accuracy Match with Purchase Order When invoices are required, they must accurately match the quantity and pricing on the Purchase Order before payment can be made to the supplier. In the event of a discrepancy, the Buyer will contact the supplier to verify the correct price. It will then be decided that either the invoice price will be paid or a GDLS C debit or credit will be issue to the supplier. Invoice Detail Required GDLS C requires the following information on each invoice: Supplier s name, address, telephone and facsimile numbers ACN (Company Registration) Number Invoice Number Invoice Date GDLS Purchase Order Number GDLS Purchase Order Release, Line and Shipment # GDLS Part Number Description of Items Quantity Unit Price Extended Amount Separate Amount for inbound freight, customs charges, duties, taxes, or other sundry item Invoice Total Electronic Funds Transfer Our intention is to extend the use of Electronic Funds Transfer (EFT) to all of our North American Suppliers. Supplier bank details will be requested prior to extending this process. Payment Details (isupplier) The isupplier Portal can provide you with complete invoicing and payment details for all POs placed through Oracle. For detailed information regarding isupplier please visit: 12

13 Quick GDLS-C Website References Customs Export Compliance isupplier isupplier Manual Packaging Requirements Routing Instructions Supplier Survey Terms & Conditions Transportation 13

14 GENERAL Land Systems-Canada DYNAMICS 1991 Oxford Street East London, Ontario N5V 2Z7 (519)