Logistics Handbook for Suppliers Specifications for Packaging and Delivering Purchased Parts Version: June 2011
Contents 1 Purpose and Area of Application...3 2 Packaging Requirements...4 2.1 General Packaging Requirements... 4 2.2 Corrosion Protection... 4 3 Packaging Design... 5 3.1 Permitted Packaging Materials... 5 3.2 Design of Disposable Packaging... 6 3.3 Design of Reusable Packaging... 6 3.3.1 Standard LuK Large Load Carriers (GLT)...6 3.3.2 Standard LuK Small Load Carriers (KLT)...6 3.4 Use of Packaging Material... 7 3.4.1 Procurement of Disposable Packaging Material...7 3.4.2 Procurement of Reusable Packaging Material...7 3.4.2.1 General...7 3.4.2.2 Pooled Load Carriers...7 3.4.2.3 LuK-Specific Reusable Packaging Material...7 3.4.2.4 Supplier-Specific Reusable Packaging Material...7 3.4.3 Use of Reusable Packaging Material...8 3.4.3.1 Empties Management...8 3.4.3.2 Provision of Packaging Material...8 3.4.3.3 Storage, Repair, and Replacement Purchases...8 3.4.3.4 Cleaning...9 3.5 Packaging Determination Process... 10 4 Delivery Specifications...12 4.1 Dimensions and Weights... 12 4.1.1 Shipping Pallet...12 4.1.2 Securing of Loads...12 4.1.3 Mixed Deliveries...12 4.1.4 Shipment Consolidation...13 4.1.5 Transport...13 4.2 Logistics Complaints... 13 5 Marking of the Shipment...14 5.1 General Information About Marking... 14 5.2 Marking of the Shipping Unit... 15 5.3 Marking of Packages... 16 5.4 Marking of Primary Packaging... 17 6 Transport Documents and Delivery Notes...18 6.1 General... 18 6.2 Delivery Note... 18 6.3 Bill of Lading... 19 LuK GmbH & Co. KG Page: 2 / 19
1 Purpose and Area of Application This logistics handbook applies to deliveries to the following LuK plants: Bühl (main plant) Bühl Bussmatten Sasbach The following requirements apply to deliveries of: Production parts (incl. subcontracting) Merchandise They do not apply to: Steel deliveries Auxiliary materials and process supplies. This logistics handbook supplements the conditions set out in the outline agreement. Through: Optimum containers and packaging design Standardized dimensions Agreed contents per packaging unit Correct and complete labeling of all packaging, the following regulations are intended to achieve an unhindered flow of materials between suppliers and LuK and avoid unnecessary repackaging work. LuK GmbH & Co. KG Page: 3 / 19
2 Packaging Requirements 2.1 General Packaging Requirements Packaging should be designed with ecological, economical, and quality criteria in mind. The following points must be observed to ensure that the parts are delivered with the required quality: The parts must be free of damage, corrosion, and contamination in accordance with the drawing requirements and technical delivery conditions. The relevant VDE and DIN standards must be observed for parts that are electrostatically sensitive (ESD). Corrugated cardboard must not be used for parts where residual contamination is critical (see drawing). These parts must be packaged using sold board covered on both sides with kraft paper (min. 45 g/m2). The following eco-design principles must be followed: Packaging must not be larger or more elaborate than required. Only reusable packaging materials marked with the standard symbols (DIN 6120) or symbols recognized by the waste disposal industry may be used. Composite materials, therefore, are not allowed. Provided that it is equivalent from both an economical and qualitative perspective, preference should be given to reusable over disposable packaging. Reusable packaging that can be pooled is preferable to variants that cannot be pooled. Insets (blisters), therefore, should preferably be realized as disposable packaging. 2.2 Corrosion Protection Suppliers must provide suitable measures to protect purchased parts that are susceptible to corrosion. The following corrosion protection times must be guaranteed for unopened packaging: 6 months for intercontinental deliveries 3 months for continental deliveries The selected corrosion protection must take into consideration the standard climatic factors that prevail during transportation to and storage in the receiving plant. The relevant requirements set out in the technical delivery conditions and drawings must be met. The standard regarding "prohibited substances" S 132030-2 must also be observed. LuK GmbH & Co. KG Page: 4 / 19
3 Packaging Design 3.1 Permitted Packaging Materials Material Permitted Materials Prohibited Materials Composites - none - all Plastic (general) - Disposable - Reusable Packaging made from plastics - Cut film blanks - Bags and sacks - Protective and insulating caps - Tubes - Formed inlays - PE, PP, PS, PET (marked to DIN 6120) PE, PP, PET, ABS (marked to DIN 6120) - PE - PE - PE - PE, PP, PS - PE, PP, PS, PET, ABS - PVC, polystyrene Cardboard and paper - marked with RESY symbol - Wax paper - Paraffin paper - Bitumen paper - Oil paper Banding strip - PP, PET - Steel strips - Polyamide strips - Polyester strips Anti-corrosion paper - Only VCI paper that can be demonstrably recycled together with paper/board Wood Filler materials - Solid wood (heat treated and labeled according to IPPC 15, treatment with methyl bromide (BT) is not allowed) - Plywood - Corrugated cardboard - Paper - Chipboards - Pressboard pallets - Impregnated wood - Painted wood - Coated wood - Chips made of plantbased products, - Chips or molded parts made of polystyrene LuK GmbH & Co. KG Page: 5 / 19
3.2 Design of Disposable Packaging Only four-way pallets that are accessed on the narrow side may be used for disposable packaging. Single boxes must be stacked on pallets in complete layers. If this is not possible, the loading unit must be indicated as non-stackable by means of a corresponding symbol on all 4 sides. The loading units must withstand dual stacking without deformation or any other type of damage and must be labeled according to their stackability and permitted load. Cartons should be sealed with adhesive tape rather than metal clips to reduce the risk of injury. 3.3 Design of Reusable Packaging Reusable packaging should primarily be designed based on standing LuK load carriers. Special load carriers, such as supplier-specific containers or LuK-specific special containers, should be avoided and may only be used in exceptional and justified cases and after consultation with the LuK packaging technicians responsible. 3.3.1 Standard LuK Large Load Carriers (GLT) The large load carriers shown here are used as standard at LuK: http://www.luk.de/content.luk.de/en/supplier/logistik/logistics.jsp 3.3.2 Standard LuK Small Load Carriers (KLT) The small load carriers shown here are used as standard: http://www.luk.de/content.luk.de/en/supplier/logistik/logistics.jsp LuK GmbH & Co. KG Page: 6 / 19
3.4 Use of Packaging Material 3.4.1 Procurement of Disposable Packaging Material LuK does not provide disposable packaging material to suppliers. After having received approval from our Purchasing department responsible for packaging material, suppliers can procure LuK-specific disposable packaging material from our packaging material manufacturers at their own cost. 3.4.2 Procurement of Reusable Packaging Material 3.4.2.1 General Unless otherwise agreed, the supplier will receive LuK-specific reusable pooled packaging material from LuK for a defined warehouse stock of products. For this purpose, the supplier will receive a rotating stock of 7 days (including stocks in transit) based on the future forecast delivery schedules. Suppliers are obliged to provide their own reusable packaging material required for their internal production processes. 3.4.2.2 Pooled Load Carriers EUR-pallets and EUR-mesh box pallets are subject to the regulations of the European Pallet Association (http://www.epal-pallets.org). Load carriers that do not conform to the standard will not be credited and will be scrapped. The resulting cost will be passed on accordingly. 3.4.2.3 LuK-Specific Reusable Packaging Material LuK-specific reusable packaging material is procured exclusively by LuK. 3.4.2.4 Supplier-Specific Reusable Packaging Material Supplier-specific reusable packaging material is procured exclusively by the supplier. The costs of purchasing supplier-specific reusable packaging material must be included in the part cost and listed separately in the offer. Both the supplier and LuK will mutually agree on the extent of the rotating stock required for LuK. LuK GmbH & Co. KG Page: 7 / 19
3.4.3 Use of Reusable Packaging Material 3.4.3.1 Empties Management LuK will manage empties accounts for all reusable packaging material with the suppliers directly. Statements for these accounts, showing account movements and balances, will be sent to the supplier on a monthly basis. Complaints must be submitted along with supporting documents to the empties manager responsible within 14 calendar days. If the account is not adjusted within this period, the account balance will be deemed accepted and used as a basis for charging the replenishment of reusable packaging material. If the supplier detects any deficiencies (differences in quantities, damage, contamination) on receipt of empties, he must report them immediately to the dispatcher responsible, stating the delivery note and providing photographic evidence as well as a brief description. The further procedure must be agreed with the LuK empties dispatcher on a case-by-case basis. If necessary, LuK will order a container inventory to compare the book inventories with the inventories that are actually available. The supplier is obliged to count the empties and report the results on the key date. If the supplier fails to report the inventory, empties will be supplied and possibly reordered based on the unadjusted book inventories. 3.4.3.2 Provision of Packaging Material Reusable packaging must be requested by the supplier from the contact persons responsible in good time (minimum of 7 calendar days before required within Germany, otherwise minimum of 14 calendar days). The relevant form and list of contact persons is available at the following address: http://www.luk.de/content.luk.de/en/supplier/logistik/logistics.jsp Unless otherwise agreed, LuK will deliver empties to the supplier. 3.4.3.3 Storage, Repair, and Replacement Purchases Following receipt of the empties from the carrier, the supplier is responsible for ensuring that they are stored properly and protected from the weather. LuK will repair damaged load carriers or scrap them if necessary and purchase a replacement. The costs will be borne by the party responsible. LuK GmbH & Co. KG Page: 8 / 19
3.4.3.4 Cleaning Only "clean swept" reusable packaging material will be provided to the supplier. If additional cleaning is necessary due to the residual contamination requirements of the product to be packed, this must be performed by the supplier. Reusable packaging material that can no longer be cleaned must not be circulated. Reusable packaging material must not be additionally labeled, covered in adhesive material, used for purposes other than intended, or unnecessarily contaminated. Old markings and labels must be removed. LuK GmbH & Co. KG Page: 9 / 19
3.5 Packaging Determination Process LUK Responsibility 1 2 Request to supplier with packaging data sheet including product group-specific packaging standards Offer with completed and signed packaging data sheet and packaging costs/part listed separately Purchasing Supplier 5 7 3 Supplier selection and forwarding of PDS to the Packaging Technology department 4 Technical and commercial check or agreement internal and with the supplier regarding: - Packaging type and packing quantity - Packing costs - Empties requirements and provision 6 Complete PDS forwarded to supplier and Purchasing and stored in SAP Packaging Technology 8 PDS confirmed by supplier PDS is deemed accepted if no objection is received from the supplier within 14 calendar days. 9 PDS released in SAP LuK GmbH & Co. KG Page: 10 / 19
To ensure that the inbound delivery fulfills the relevant quality requirements, the packaging for each product must be agreed at an early stage. This agreement is reached using the process depicted above and must be completed before the first volume production delivery. For this purpose, the supplier will receive a draft of the packaging data sheet with the product groupspecific packaging standards from Purchasing with the inquiry. These standards usually provide for the use of reusable packaging. In certain circumstances, the use of disposable packaging may make good economic sense (e.g. for short product life cycles) or may be necessary as alternative packaging if empties are scarce. Therefore, disposable packaging must always be included in the offer together with the reusable packaging to facilitate an analysis of economic efficiency and as alternative packaging. The disposable packaging must be designed in such a way that the products can be easily repacked in the reusable packaging. The disposable packaging must also fulfill all other requirements for reusable packaging (packing quantity, inner packaging, etc.) to the same extent. The packaging standards sent to the supplier for specific product groups do not release the supplier from the obligation to ensure that the inbound delivery meets the required quality standards. For this reason, the supplier must examine whether the general packaging requirements and partspecific requirements are fulfilled. If these are fulfilled, the supplier must add the missing details regarding the reusable packaging in the draft packaging data sheet. Otherwise, the supplier must propose suitable reusable packaging that deviates from the packaging standards and provide a reasonable justification. Based on this, the supplier must define disposable packaging suitable for repacking and enter the relevant data in the section provided in the draft packaging data sheet. An example of a packaging data sheet with information about how to complete it and a list of contact persons is available at: http://www.luk.de/content.luk.de/en/supplier/logistik/logistics.jsp The supplier must then return the draft packaging data sheet in Excel format to Purchasing together with the offer. After the proposed packaging has been checked by LuK and agreed internally/externally, the packaging will be documented for all change indexes in a packaging data sheet and sent to the supplier. This must be checked by the supplier and returned to the sender with a confirmation or rejected within 14 calendar days. If the supplier does not reply within this period, the packaging data sheet will be deemed accepted. Approval of packaging does not release the supplier of his responsibility to ensure that the delivery is received by the plant with the required level of quality. Deviations from the agreed packaging are only allowed in justified exceptional cases and only after written approval has been granted by the Packaging Technology department. The use of alternative packaging is also subject to prior written approval by the Packaging Technology department. LuK GmbH & Co. KG Page: 11 / 19
4 Delivery Specifications 4.1 Dimensions and Weights Basic format: 1200 mm x 800 mm Max. permitted total weight per KLT or box: 12 kg Max. permitted total weight per loading unit: 1000 kg Max. total height of loading unit: - KLT loading unit (single product only) 750 mm - Other loading units 1000 mm 4.1.1 Shipping Pallet KLT positioning: - Different KLT types per pallet are not allowed - Empty positions in the top layer must be filled with empty KLTs 4.1.2 Securing of Loads KLTs can be secured on the pallet by means of A pallet cover Banding with plastic strip (twice) Boxes can be secured on the pallet by means of Strapping or Edge protection + strapping with plastic strip (twice or four times) 4.1.3 Mixed Deliveries For mixed deliveries comprising KLTs or boxes, note the following: - Do not pack KLTs and boxes on one pallet - Do not distribute identical material across several mixed pallets - Do not distribute identical material across several mixed layers - Pack identical material side by side in one mixed layer For mixed deliveries involving GLTs, the different materials must be separated for safe transport. LuK GmbH & Co. KG Page: 12 / 19
4.1.4 Shipment Consolidation Delivery of KLTs or boxes: Up to 2 packages per shipment: - By parcel delivery service - Max. 25 kg per shipping package - KLTs must be sealed with a reusable cover and strapped with a plastic strip As of 3 packages per shipment: - On pallet with freight forwarder 4.1.5 Transport For deliveries that are FCA from the dispatching location, the points listed under "Transport Regulations" and "Insurance" in the LuK-specific Shipping and Transport Regulations must be observed. These regulations are available at: http://www.luk.de/content.luk.de/en/supplier/logistik/logistics.jsp 4.2 Logistics Complaints Logistics complaints are triggered by disruptions in the logistics process at LuK that are caused by the supplier. They can include: Failure to comply with the agreed packaging regulations (e.g. alternative packing quantities) Inbound deliveries without agreed packaging Use of containers that do not fulfill the quality requirements (contaminated, wet, damaged) LuK reserves the right to refuse acceptance of the shipment or repack the goods if necessary if the specifications contained in this handbook are not observed. Additional costs (e.g. for repacking, stops in production, defective containers etc,) will be charged to the supplier as part of a logistics complaint. LuK GmbH & Co. KG Page: 13 / 19
5 Marking of the Shipment 5.1 General Information About Marking The marking must be clear: Old markings must be removed or rendered unreadable. Markings must be visibly attached on the side of the unit. Markings must be attached securely (e.g. by means of adhesive that can be removed without residue). Empty KLTs must be marked accordingly. Mixed shipments must be marked as such. Further notes: The form and contents of the marking depend on the packing level. The fields marked "M" in the following tables must always be specified. Specific field contents and definitions may also be relevant here. Existing marking areas or document pouches must be used as long as they do not contradict other specifications Adhesive markings and labels must not be attached to reusable packaging materials. LuK GmbH & Co. KG Page: 14 / 19
5.2 Marking of the Shipping Unit Each shipping unit must be marked using a VDA goods label whose content and design conforms to the VDA Recommendation 4902 Version 4 or ODETTE. These markings must generally be attached to the narrow side of the container. The units must be loaded in such a way that the goods labels are located on the right-hand side of the vehicle (in the direction of travel). Field Name Field No. According to VDA Recommendation 4902 Version 4 Mandatory/Optional Field Contents Goods recipient 1.1 M (abbr.) Unloading point 2.1 M Delivery note no. 3 M Supplier address 4 M (abbr.) Net weight 5 M Gross weight 6 M No. of packages 7 M Customer's ref. no. 8 M Material number (13 or 15-digit, e.g. 048054038-0000) Fill quantity 9.1 M Delivery/service designation 10 M Material short description (e.g. L-09129-0002-00 balancing weight) Hazardous 11.4 O substances Supplier no. 12 M Date 13 M Date of production or shipment Design change status 14 M LUK change index acc. to drawing (e.g. "AA") Batch number: 16 O Form name 18 M LuK GmbH & Co. KG Page: 15 / 19
5.3 Marking of Packages Each package (KLT or box) must be marked using a KLT label whose content and design conforms to the VDA Recommendation 4902 Version 4 or ODETTE. Field Name Field No. According to VDA Recommendation 4902 Version 4 Mandatory/Optional Field Contents Goods recipient 1.1 O (abbr.) Unloading point 2.1 O Delivery note no. 3 O Supplier address 4 - (abbr.) Net weight 5 - Gross weight 6 - No. of packages 7 - Customer's ref. no. 8 M As goods label Fill quantity 9.1 M Delivery/service 10 M As goods label designation Hazardous 11.4 - substances Supplier no. 12 M Date 13 M As goods label Design change 14 M As goods label status Batch number: 16 M Only if delivery note number is missing Form name 18 - LuK GmbH & Co. KG Page: 16 / 19
5.4 Marking of Primary Packaging Each item of primary packaging (e.g. in KLT or box) must be marked at least with a supplier's label, although a bar code is not necessary. Field Name Field No. Mandatory/Optional Field Contents According to VDA Recommendation 4902 Version 4 Goods recipient 1.1 - (abbr.) Unloading point 2.1 - Delivery note no. 3 O Supplier address (abbr.) 4 M Supplier's name is sufficient Net weight 5 - Gross weight 6 - No. of packages 7 - Customer's ref. no. 8 M As goods label Fill quantity 9.1 M Delivery/service 10 O As goods label designation Hazardous 11.4 substances Supplier no. 12 - Date 13 M As goods label Design change status 14 M As goods label Batch number: 16 M As KLT label Form name 18 - LuK GmbH & Co. KG Page: 17 / 19
6 Transport Documents and Delivery Notes 6.1 General The deliveries must be handed over to the carrier or freight carrier with a correct and complete set of transport documents. If the shipment is handled by a freight forwarder, the delivery note must be supplied with the bill of lading and must not be attached to the goods. The supplier must ensure that the freight carrier passes on the delivery notes together with the bill of lading and that these are delivered to LuK. We reserve the right to refuse deliveries that are not supplied with the correct transport documents. The following transport documents are required: Bill of lading Delivery note Possibly customs documents with customs invoice Other documents required in the purchase order 6.2 Delivery Note The delivery note must contain: Delivery note number Order number Supplier number Material number (13 or 15-digit, e.g. 048054038-0000) Material short description (e.g. L-09129-0002-00 balancing weight) LUK change index acc. to drawing (e.g. "AA") Total delivery quantity Number, type, and quantity per package Gross and net weights Volume for bulky goods Unloading point Note for mixed shipments The following also applies: The delivery note must comply with DIN 4991 in terms of its form and VDA 4913 in terms of its contents. The delivery note number must also be specified as a bar code (code 39). Initial samples and mixed shipments must be clearly identified as such. Reusable packaging must be listed separately (both full and empty). The packaging material number, quantity, and designation must be specified. The corresponding data must be taken from the packaging data sheet. An example of a delivery note is provided at: http://www.luk.de/content.luk.de/de/supplier/contractual_conditions/contractual_conditions.jsp LuK GmbH & Co. KG Page: 18 / 19
6.3 Bill of Lading The delivery conditions according to the latest version of the Incoterms must be specified on the bill of lading and in the shipping order. LuK GmbH & Co. KG Page: 19 / 19