Daimler Trucks North America Production Parts Packaging, Labeling, and Shipping Guidelines

Daimler Trucks North America Production Parts Packaging, Labeling, and Shipping Guidelines Table of Contents 1.00 Introduction... 3 1.01 Compliance... 3 1.02 AIAG Guidelines... 3 1.03 Returnable Packaging Ownership and Use... 3-4 1.04 Pooling Program... 4 1.04a Pooled Containers... 4 1.04b Service Center... 4 1.04c Demand Management of Pooling Program... 4-5 1.04d Pooled Container Shortage... 5 1.05 Inventory controls... 5 1.05a Tracking... 5-6 1.05b ASN... 6 1.05c EDI... 6 1.05d Information Exchange... 6 1.05e Cooperation with Ryder Integrated Logistics... 6-7 1.05f Monthly Inventories... 7 1.06 Packaging... 7 1.06a Quality, Design & Packing Responsibilities... 7 1.06b Pallet Requirements... 7-8 1.06c Unitization and Palletization Requirements... 8-9 1.06d Primary Container Requirements... 9-10 1.06e Container Sizes... 10 1.06f Container Sealing... 10 1.07 Containment... 10 1.08 Maintenance Responsibilities... 11 1.09 Misrouted Containers... 11 1.10 Returnable Packaging Deviations... 11-12 1.11 Returnable Packaging Loss... 13 1

1.12 Barcoded Logistics Shipping/Receiving Labels....13 1.13 AIAG Labeling Guideline and ANSI MH10.8.2 Data Identifier Guidelines... 13 1.14 Label Certification Process... 13 1.15 Label Specifications... 14 1.16 Suggested LPB Character Parameters Table... 14 1.17 Labeling on Stretch Film... 15 1.18 Master Label... 15 1.19 Container Label... 15 1.20 Mixed Load Label... 15-16 1.21 Line Sequence Label... 16 1.22 Repack Tote Label... 16 1.23 Destination Label... 16 1.24 Odd Size and Shaper Shipping... 16-18 1.25 Trailer Loading and Transportation Requirements... 18 1.26 Packing Slips and Bills of Lading... 18 1.27 Direct Shipments... 18 1.28 Consolidated Shipments... 18-19 1.29 Customs Papers... 19 1.30 Third Party Consignment... 19 1.31 Packing Slips and Bills of Lading Requirements... 19-20 1.32 Forms and Samples... 20-27 2

Returnable Packaging Agreement for Book of Business Suppliers use of DTNA-owned returnable containers: 1.00 Introduction The following packaging and shipping guidelines are required for all production materials entering Daimler Trucks North America (DTNA) OEM facilities. This revision becomes effective July 31, 2017. Developed in conjunction with Automotive Industry Action Group (AIAG) standards, the packaging guidelines detailed below, are specific to DTNA and may be directly applied to the AIAG standards. For further information contact the appropriate group: Packaging - DTNA Corporate Packaging Group Department at DTNA_Packaging@Daimler.com Shipping - DTNA Corporate Traffic Department (503)745-6688. Labeling, Pack Lists and BOLs - DTNA Corporate Material Flow Department (503)745-5032 1.01 Compliance Compliance to these guidelines is mandatory and will be continuously monitored. Any non-compliance is subject to rejection by DTNA receiving locations with charges for, and not limited to, repacking, disposal, return shipment billed back to shipping location. Recurring violations will be referred to the appropriate DTNA Buyer for corrective action. Exceptions to the guidelines may be permitted in limited situations with prior written requests to the receiving locations and DTNA Packaging Group. Revisions to current packaging must be tested and evaluated in cooperation with DTNA Packaging Group and DTNA receiving locations. Supplier initiated packaging or cost improvements are encouraged, but must be reviewed and approved by DTNA Packaging Group. DTNA Packaging Group and Receiving locations (including DTNA approved logistic providers) have the option, when necessary, of accepting or rejecting a supplier s selection of packaging materials, design, and sources. 1.02 AIAG Guidelines DTNA supports compliance to the following AIAG packaging standards for all production parts to DTNA manufacturing locations. Copies of these publications may be obtained by contacting the Automotive Industry Action Group (AIAG) at (248) 358-3003 or through their website www.aiag.org RC-7: Solid Waste Management Packaging Material Guideline, 12/92 RC-8: Single and Multi-Use Container System Guidelines, 9/95. B-10: Trading Partners Labels Implementation Guideline, 6/04. 1.03 Returnable Packaging Ownership and Use A returnable container is defined as any returnable packaging such as a container, rack, tray, or tote. These returnables have a design and function allowing repeated use between suppliers and DTNA. DTNA will purchase and retain ownership of returnable containers unless otherwise specified and establish an inventory size based on specific DTNA Truck Manufacturing Plant (TMP) daily requirements and transit times. 3

DTNA will implement returnable container systems when economically feasible by assigning specific part numbers to designated returnable containers with designated pack quantities. DTNA will identify returnable containers with stenciling or by attaching placards to the returnable containers. DTNA will determine supplier s addition into the DTNA returnable container pooling system. When returnable containers are implemented, all shipments of parts are expected to be made in their assigned returnable container and in the designated pack quantity. Parts must only be shipped in their designated containers, unless a shortage results in the need for expendable packaging (see section: Returnable Packaging Deviations). 1.04 Pooling Program 1.04a Pooled Containers DTNA has invested in returnable containers that will be used by multiple suppliers that are included in the DTNA pooled container program; these containers will be referred to as pooled containers. These containers will include collapsible plastic containers, collapsible metal baskets, plastic totes, lids, top caps and pallets. These containers will abide by the same rules and standards as supplier assigned containers. See below for full list of pooled containers. Click HERE for link 1.04b Service Center All Pooled containers will be controlled by a returnable container service center. This service center is operated by a third party logistics company, Orbis Corporation. They will control all the physical inventories that will be sent to suppliers and receive all returnable containers from DTNA facilities. The responsibility of the service center will be to maintain all containers in working order, remove any debris or labels and facilitate repairs to damaged containers. If you received a damaged pooled container please contact DTNA Packaging at DTNA_Packaging@Daimler.com or Orbis immediately to fix the issue. 1.04c Demand Management of Pooling Program Items will be assigned a specific container to be shipped in and item demand from the supplier s EDI committed orders (862,866) is used to determine the quantity of containers each suppler requires. Orbis will fulfill the suppler with up to 10 days worth of container requirements. It is the supplier s responsibility to manage the containers once received. The Supplier is responsible to review their EDI 4

on a daily basis. If containers are not assigned properly, it is the supplier s responsibility to escalate their concerns to the DTNA Packaging Group at DTNA_Packaging@daimler.com for corrective actions. The Supplier is required to ship their production parts in the container assigned. Deviations will cause shortages and could result in charges back to the supplier. Containers should only be used to ship production parts in, not to hold material or for Work in Progress (WIP). For any instances where containers are used as WIP, DTNA has the right to charge back the supplier $120 per container misused during an on-site visit. 1.04d Pooled Container Shortage Suppliers with container shortage concerns must contact their Orbis RPM representative immediately. All shortages must be escalated 24-48 hours before the shortage occurs in order for DTNA and Orbis to mitigate or investigate the current shortage. DTNA reserves the right to refuse expendable invoices if shortages are not escalated in a timely manner. Upon receiving this information, the supplier will be asked to complete an immediate inventory of returnable packaging products in question. The inventory needs to include full and empty containers on site. Inventory discrepancies over +1-5% for Pooling (Bulk) Containers and/or +1-10% on Pooling Totes, will require the supplier to review an inventory analysis provided by Orbis RPM, that will include all Inbound Shipments confirmed received by supplier, and all Outbound shipments made by supplier since the last inventory was reported and adjusted. Supplier will be required to provide detailed information for any inconsistencies in the data provided. Misuse of containers by the supplier will be subject to a chargeback of $120 per container misused. Supplier will be provided with an updated part listing for each Pooling Container / Tote in question. The supplier will be responsible for reviewing each Container/Tote and confirm for accuracy. This information is necessary to determine why an inventory discrepancy (overage/shortage) is occurring. The DTNA/Orbis RPM National Inventory Manager will then review this information and inform the supplier and Daimler of any noted discrepancies along with the potential reason/remedy for this container inventory overage/shortage. Actions will then be discussed with the supplier to eliminate future discrepancies. The supplier and ORBIS RPM will then update the inventory on-hand information in order to ensure that all records match and future discrepancies are avoided. 1.05 Inventory controls 1.05a Tracking DTNA has contracted with a third party logistics company, Orbis Corporation (Orbis) to provide returnable container tracking services. Suppliers shall respond to requests for information made by Orbis personnel. Orbis web-based container tracking service, SmartTrak, requires suppliers to confirm or dispute the receipt of returnable containers. Upon receipt of a shipment of returnable containers, suppliers shall match the driver s bill of lading (BOL) number to the BOL numbers in Orbis web-portal and verify that the seals, trailer number, returnable container ID numbers and quantities match. If the shipment s contents correctly match the online BOL, the supplier will click Confirm on the web portal. When the contents of the load do not match the online BOL, the supplier will click Discrepancy and include a note in the external notes field explaining the discrepancy. 5

Loads of returnable containers must be confirmed or disputed by the supplier within 30 minutes of unloading the load s contents at the supplier s facility to ensure timely visibility of returnable container inventory levels. This timeliness of load confirmation will be verified through the carrier s 214 EDI transaction data, cross-referenced with the SmartTrak confirmation time stamp. Failure to confirm or dispute a load within 30 minutes will result in the supplier being charged a $120 fine by DTNA. 1.05b ASN Starting January 2017 all suppliers with returnable containers must be fully capable of communicating container and rack usage through the Automatic Shipping Notification (ASN). Any deviation from the assigned packaging must be communicated to DTNA and Orbis before ASN is submitted. Failure to do so will result in inaccurate inventory data leading to possible shortages of container. DTNA will hold the rights to refuse any costs associated with or resulting from notification failures. If an incorrect returnable is listed on the ASN, the supplier will receive an error message and will need to resolve the issue. If the returnable information on an ASN is incorrectly submitted, it is the supplier s responsibility to contact the DTNA Packaging email distribution (DTNA_Packaging (164-NPM) dtna_packaging@daimler.com) to be corrected. If an incorrect ASN is not communicated by the supplier, DTNA reserves the right to charge the supplier $120 per incorrect ASN. Expendable packaging must be on the ASN in any instance where expendables are used due to a shortage. However, no returnable information is needed on an ASN where the part number is originally assigned to expendable packaging. Non-compliance will be subject to possible rejection of the expendable invoice if not documented properly. 1.05 c EDI Returnable packaging information as it applies to EDI can be found in the EDI implementation guide found under EDI and Communication Services at https://daimler.portal.covisint.com/web/freightliner/downloads/-/journal_content/. 1.05d Information Exchange DTNA requires suppliers to complete periodic packaging surveys to verify current or proposed packaging specifications. All supplier communication concerning packaging shall be coordinated through DTNA or a designated third party logistics company such as Orbis. Suppliers are responsible for designating an individual to handle all packaging responsibilities. This individual s contact information must be provided to DTNA by the supplier and/or a designated third party logistics company. The supplier is responsible for updating DTNA in the event of personnel changes by emailing DTNA_Packaging@daimler.com. DTNA will require the supplier to participate in regularly scheduled returnable container system count audits to verify container inventory accuracy on a monthly basis. Suppliers who have discrepancies will be required to recount and will be contacted by a representative from Orbis or DTNA to investigate and resolve discrepancies. Frequent discrepancies may require an on-site audit or more frequent cycle counts. Returnable container system count audits can be requested by DTNA with as little as 48 hours notice and require that the supplier conduct a complete and accurate count of a particular type of container at a designated time. When new parts or new part variations are introduced, packaging configurations need to be submitted by the supplier on the PFEP Workflow system on Supplier Online. Suppliers are expected to respond to new packaging configuration input requests within 24 hours. 6

1.05e Cooperation with Ryder Integrated Logistics DTNA employs the services of a third party logistics provider, Ryder Integrated Logistics, to assist DTNA. Please cooperate with Ryder representatives as you would with DTNA employees. In particular, please provide Ryder with all packaging and shipping information requested. This information is necessary for Ryder to perform DTNA supply chain optimization. In order for DTNA to plan inbound logistics, suppliers must provide accurate packaging information for all active parts (including packaging type, parts per container, dimensions and weight) to DTNA and its preferred logistics provider within 30 days of request. Requests should be acknowledged within seven days. Packaging details may be requested for each new part with requirements. Supplier will provide packaging details in a format specified by DTNA's designated logistics provider. 1.05f Monthly Inventories Suppliers must complete monthly inventories on the 15 th of each month of returnable containers to assist DTNA in validating true inventory counts. Orbis RPM will provide each supplier location an inventory-counting sheet. Suppliers must count all DTNA returnables that are under their control including empty and holding finished products. These counts must be returned back to Orbis RPM by the requested due date. Orbis will contact suppliers with any questions or concerns pertaining to the inventory count provided. Non-compliance in sending a monthly inventory to Orbis can or will result in DTNA s rights to refuse any costs associated with or resulting in a shortage. 1.06 Packaging 1.06a Quality, Design & Packing Responsibilities Suppliers must ensure that the parts shipped in returnable containers are received at DTNA facilities in acceptable (damage free) condition. Usage of returnable containers must ensure the protection of the supplier s parts during shipping, storage and handling processes. The supplier is responsible for packaging their parts in the assigned container and loading the container into the shipping trailer in such a way that the parts are not damaged in transit. DTNA may request test shipments as necessary at DTNA s sole discretion. Returnable containers should be utilized efficiently by filling them to their maximum pack quantity unless specifically ordered by DTNA in a quantity that is less than a maximum pack quantity. Returnable containers, whether full or empty, must only be stacked with returnable containers that have a compatible footprint. Complex logistics and/or economics may require the use of returnable containers with expendable dunnage. DTNA will supply the returnable container from the program. The supplier is responsible for the design, testing, and replacement of the expendable internal dunnage. Design and use must be approved by DTNA. 1.06b Pallet Requirements The pallet design is a critical element to assure overall package system performance and part quality. All pallets must maintain sufficient construction and meet performance requirements. Contact the National Wood Pallet and Container Association (NWPCA) at (703) 519-6104 or at www.nwpca.com for information regarding their Uniform Voluntary Standard for Wood Pallets, Specialized Pallets Engineered for Quality (SPEQTM) Assurance Program, and Pallet Data System (PDS) detailing the specifications and durability of a pallet to ensure adequate performance at the best possible price. 7

Effective September 16, 2005, the governments of the U.S., Canada, and Mexico will implement Wood Packaging Material (WPM) regulation per the ISPM No. 15 of the North American Plant Protection Organization (NAPPO). The purpose of the regulation is to protect North American forests against foreign pest infestation. This regulation requires ALL WPM used in international trade, including pallets, crates, boxes and dunnage, going to or from the United States, Mexico, and Canada to be kiln dried or heat treated to minimum specifications and stamped with the internationally recognized WPM Mark. Shipments not meeting these requirements will be stopped at the border and reexported. Treatment or destruction within North America will not be permitted. WPM between Canada and U.S. Exempt. U.S. Animal Plant Health Inspection Service (APHIS) and the Canadian Food Inspection Agency (CFIA) Plant Health Division cite that WPM of U.S. and Canadian origin are exempt from the WPM regulation and therefore do not require the international mark. WPM from a Canadian or U.S. origin is still subject to inspection for pests. Mexico: All WPM originating in Canada or the U.S. destined for Mexico must be treated and stamped. All WPM originating in Mexico and destined for Canada or the U.S. must be treated and stamped. See APHIS guideline at http://www.aphis.usda.gov/ppq/swp/guidelines.pdf See CFIA Policy Directive D-98-08 at http://www.inspection.gc.ca/english/plaveg/for/cwpc/wdpkge.shtml Terminals and customers should ensure they understand the new regulations. For more information contact APHIS at 301-734-5057; or CFIA at 613-225-2342 The DTNA standard pallet is a 48 x 40, wood pallet. If a unique size pallet is required, the pallet length should be sized to accommodate the part length while maintaining the 48 pallet dimension for proper trailer utilization. Pallets should be stamped on at least one side with the pallet s overall footprint dimension. Pallets must not be smaller in length and width than the load it carries. All pallets must be of 4-way entry, double face, non-reversible, wood construction. All pallets must be able to support a 2800lb. load while triple stacked. Pallets must be new. The use of corrugated, salvage, and other pallet alternatives are prohibited unless investigated in cooperation with DTNA Corporate Packaging Group. 1.06c Unitization and Palletization Requirements Pallet load containment must provide damage protection and optimum load performance with minimal environmental impact. Part damage and load shifts due to packaging failures are subject to rejection upon receipt at all DTNA locations. Unitization and/or palletization is required for all parts and should be designed to stabilize and complement the primary containers to prevent movement throughout the handling cycle. The unit load must be modular to the pallet and remain stable for material handling and storage after initial part access and removal. All containers must be properly palletized and secured to the pallet. Palletized cartons should be uniform in size to maintain load stability. Maximum overall height per unit load is 50. Contact DTNA Packaging Group for load heights greater than 50. Containers must be palletized in individual level layers on the pallet. No pyramid unit loads. If material release quantities do not permit shipment of individual level layers of containers, explore alternative methods of containerization and/or contact DTNA Corporate Material Planning or Packaging Group for assistance. Properly Palletized Cartons (Level Layer) 8

Unacceptable Unit Loads (Pyramid) If a complete pallet of returnable containers (totes) cannot be produced and requires a top cap the pallet must be arranged so all four top corners are equal heights to properly secure the top cap. Pallet must be wrapped in plastic to maintain complete pallet seal. This incomplete pallet must be loaded in trailer last and must be placed so no weight can be placed on the top. 1.06d Primary Container Requirements Primary container assignments will be determined jointly between DTNA and suppliers to determine the best available packaging for each part. If returnable packaging is chosen, DTNA will manage the design process and plan for every part (PFEP) for these items. When new parts are awarded to the supplier, the supplier must submit the proposed packaging and packaging quantity in the PFEP Workflow system on Supplier Online. The supplier is responsible for expendable dunnage if required in returnable containers. The Supplier must communicate to both ORBIS and DTNA when expendables are used before the shipment is made. The expendable package design is the supplier s responsibility, and the supplier must ensure that the parts and all packaging shipments are received in acceptable (damage free) condition. The primary container will carry the part from shipping to assembly where it is presented to the operator. It must maintain part quality through transit and multiple handlings. The compression strength of the container(s) must support contents triple stacked up to 100 in height for maximum trailer density and storage. No Do Not Stack or Top Load Only containers. Suppliers are encouraged to investigate the benefits of specifying corrugated based on ECT Edge Crush Test (see AIAG RC-7, Section 3.1) and fiber-based corner posts (see AIAG RC-7, Section 3.3) for additional strength. (Do not adhere wood corner posts to container.) Container(s) should be modular to the DTNA standard 48 x40 pallet footprint. No overhang and not more than 2 less than pallet footprint on any side. 9

Unacceptable Pallet Overhang No more than one part number per container (i.e. no kitting). Container(s) must be completely filled and may require redesign to eliminate void space, part shifting, and container crushing, unless otherwise communicated and agreed upon. Small, manually-handled totes must not exceed 28 lbs. and should contain at least 10 parts unless otherwise agreed upon. No individual or aftermarket packaging is permitted for production parts. The unsupported bottom of the manually-handled container must hold the weight of its contents. Large, mechanically-handled bulk containers should be used for large, heavy parts with typically high release quantities. The container must be designed with adequate compression strength to prevent sidewall crushing or bulging and incorporate a break-away feature (see AIAG RC-7, Section 3.4) with minimal staple usage if it will be adhered to the pallet for unitization. To ensure that all packages and shipments will reach their intended point of use in good condition and without damage to parts, all packages must be tested under simulated real-life conditions. Initial shipments of new packaging to DTNA production facilities must be accompanied by a completed Test Package Label and noted on the ASN. A sample Test Package Label is located in Section 11.0. DTNA Corporate Packaging Group will provide feedback to suppliers regarding the results of the Test Package shipment and the acceptability of the package design. 1.06e Container Sizes Acceptable primary expendable container sizes will be modular to the standard 48 x40 pallet footprint. If it is necessary to deviate from the given primary container sizes, contact DTNA Corporate Packaging Group for approval. In general, the following matrix can be used to determine an appropriate primary expendable container size for quotation. Length Width Height 48 x 40 x 10, 15, or 30 24 x 10 or 20 x 10 or 15 12 x 10, 20, or 40 x 10 Expendable containers must be properly palletized in level layers to allow for stacking and proper utilization of transportation. If your standard order quantity does not equate to a level layer on the pallet, contact your DTNA Material Planner and/or Corporate Packaging Group. When shipping volumes warrant palletization, containers must be loaded on a pallet and shipped as a unit load, secured to a pallet. For returnable packaging sizes please see section 7.3a and 1.31 Pooled Containers. 10

1.06f Container Sealing Acceptable methods of sealing manually-handled totes are strippable reinforced tape or spot gluing. Alternative methods may only be acceptable with prior approval from the receiving plant locations. 1.07 Containment The preferred method of containment is either plastic, heat sealed strapping of green polyester or clear stretch film. Plastic strapping and clear stretch film should secure the entire palletized load including the pallet. The use of unitizing adhesives for individual cartons is encouraged. Colored security or UV protective stretch film should not be used. 1.08 Maintenance Responsibilities Supplier shall be responsible for maintaining all returnable racks/containers in good and usable condition while in the supplier s possession, except as set forth below, and shall be responsible for the cost of any returnable containers lost or otherwise unaccounted for by the supplier. All DTNA owned containers and racks must be stored in a manner that will prevent damage, pest infestation and/or deterioration when not in use. Containers and racks must be stored within a protected and secure area in order to mitigate potential theft or unanticipated damage. The supplier must check the physical condition of returnable containers upon delivery and ensure that returnable racks/containers are in good condition before use. The following items are to be checked by the supplier when receiving returnable racks/containers: Cracks in the corner joints Missing or broken hinges Extensive damage to the base due to fork handling Bowing sidewalls Missing or cracked welds Missing or bent lock pins Missing or warped load arms Missing or damaged dunnage Damaged or dirty returnable containers that may compromise the quality or safety of the supplier s parts are not to be used and must be removed from the system by the supplier. The cost of damaged parts resulting from a supplier s inability to properly secure parts in returnable containers for shipping will be charged back to the supplier. The supplier s packaging representative must contact DTNA_Packaging@Daimler.com and Orbis to coordinate shipping and repair arrangements at DTNA s expense. The supplier must include rack/container ID, quantity of damaged racks/containers, pictures, pick up address, and hours of operation. Suppliers must conduct a monthly inspection of returnable racks and containers for damages and clean returnable racks/containers to prevent foreign objects or any contamination coming into contact with the packaged parts. Suppliers must remove any old shipping labels prior to adhering new labels. Suppliers must not fill, handle, move or store returnable racks and containers in a manner that causes damage to the returnable container or compromises the cleanliness of the returnable container. Suppliers may not use returnable racks and containers as WIP within their facility. 1.09 Misrouted Containers 11

Suppliers must contact Orbis immediately if they have received incorrect or misrouted returnable containers. Suppliers must not use misrouted or unapproved returnable containers unless otherwise directed by DTNA Packaging Group. Suppliers parts must only ship in returnable containers that have been assigned by DTNA. 1.10 Returnable Packaging Deviations DTNA provides containers to support a lean manufacturing system. Returnable container overages or shortages must be brought to the attention of DTNA Packaging Group and Orbis for resolution as well as any changes in volumes that may impact an existing returnable container pool. In the event of a returnable container shortage, suppliers may use expendable packaging, which is defined as any packaging that has a design and function allowing for a single use between the supplier and customer appropriate for the shipment of the particular parts, including without limitation by way of example cardboard packaging, plastic wrap, or wood pallets. It is the responsibility of supplier to maintain a sufficient inventory of expendable packaging to be used in the event of a returnable container shortage. In the event of a returnable container shortage, DTNA expects supplier to maintain their regularly scheduled shipments of parts. Prior to using expendable packaging, suppliers must contact Orbis and DTNA to provide a notification of a returnable container shortage and to request approval for the use of expendable packaging. Suppliers expendable packaging should not compromise the quality of the parts being shipped and should take into consideration the best possible trailer space utilization. Expendable packaging must retain the same footprint and pack quantity as the returnable container whenever possible. Suppliers will submit invoices for expendable packaging on a monthly basis to DTNA at: documentsubmission@daimler.com and DTNA_Packaging@Daimler.com. Suppliers must provide proof of cost for expendable packaging including a breakdown in an Excel spreadsheet format in order to be reimbursed by DTNA. Each individual invoice needs to be submitted on a separate email and can only have up to 10 attachments. All invoices must contain the following information to be processed for payment: 1. Supplier Point of Contact 2. Invoice number 3. Invoice date 4. Total payment amount 5. Proper remit address 6. Detailed description of goods or services provided, including quantity, per unit prices, description 7. Submitted on supplier invoices or letterhead format 8. Proper bill to address (with company name, attention employee name, then physical address 9. Backup spreadsheet including: plants shipped to, containers short, month the costs were incurred, part numbers impacted by the shortage and costs associated to the expendable packaging used. DTNA reserves the right to request the quotes or invoices for any of the expendable packaging used by the supplier. DTNA will approve or reject any reimbursement claims for expendable packaging from the 12

supplier. Expendable packaging reimbursement claims may be rejected if the supplier is found to have caused the returnable container shortage, monthly inventories are not sent on time, ASN data is incorrect, escalation of shortage was not sent to DTNA or Orbis, or if the expendable packaging is found to not be competitively priced or support documentation is not provided. DTNA strives to process all invoices in a timely manner and issue payments to the supplier within 30 calendar days of receipt date. In an effort to streamline this process, please submit your proof of cost breakdown along with your invoice to avoid any delay in processing. If invoices are not submitted with proper support documentation within 30 calendar days, we will reject your invoice due to the DTNA Accounts Payable Policies. Furthermore, we may ask you to resubmit the invoice with the proper information. All invoices must be submitted within net 30 terms. DTNA reserves the right to deny payment to any invoice that is submitted late. Delayed submissions will only be accepted with the written consent of the DTNA Packaging department. When expendable packaging is used in place of a returnable container this must be noted on the ASN (856) with the total number of expendables used and the cost associated. Sample format shown below: 1.11 Returnable Packaging Loss DTNA expects its suppliers to be partners in helping prevent returnable container damage and loss through the protection of returnable containers at the suppliers facilities and through documentation of returnable container receipt and shipment. If a supplier is found to be at fault for the loss or damage of returnable containers, the supplier will be liable to compensate DTNA for the value of the returnable containers. Loss of containers may include but are not limited to: Shipping DTNA-owned returnable containers to a location other than the designated DTNA facility. Failing to accurately document receipt of returnable containers via SmartTrak. Failing to document and notify DTNA of damaged returnable containers that have been disposed of by the supplier. 1.12 Barcoded Logistics Shipping/Receiving Labels The following labeling instructions apply for proper labeling of parts and materials shipped or delivered to DTNA OEM Production locations. Suppliers must insure that all parts and material are correctly labeled and that the labels are properly attached. Please note that DTNA Aftermarket has separate labeling specifications that are not compliant with OEM. Label specifications on the parts themselves are handled by Engineering. 1.13 AIAG Labeling Guideline and ANSI MH10.8.2 Data Identifier Guidelines The AIAG Trading Partners Labels Implementation Guideline (B-10) provides instructions for printing and applying shipping/parts identification labels to improve productivity and controls at supplier and DTNA 13

locations. ANSI MH10.8.2 provides instructions for inclusion of proper Data Identifiers into the label barcodes. 1.14 Label Certification Process Each supplier will submit Master and Carton labels for approval before their first shipment in conjunction with the EDI and ASN set-up process. The Master and Carton labels will be reviewed and tested for technical (scanning) and informational compliance. If any corrections are needed, the supplier will be notified of the problem and required to resubmit a revised label. Once the label passes all reviews and tests, the supplier will be notified of their compliance. Compliant labels will be kept on file to compare to future audits to see if there have been any unauthorized changes. Scan progress will be monitored and audited. You will be required to submit sample labels with live data if it appears there is a quality issue. If there any changes or upgrades to your EDI or ERP system or process, labels need to be recertified. Labels can be certified by e-mailing a high resolution image or scan of an actual label with live data. Mailing a physical label is generally unnecessary. 1.15 Label Specifications All labels must by 4 x 6 with bold black ink. Thermal printed labels are preferred, but not required. Ink or bubble jet printing is highly discouraged as they bleed and smudge easily. The label paper shall be white with bold, black printing. No colored labels or colored inks will be allowed. Adhesive labels can be pressure sensitive, dry gummed or affixed with a plastic cable tie hang tag as long as adherence to the container is assured, application is wrinkle-free and only used for expendable packaging. All bar codes will be Code 128 symbology (Code 39 symbology is acceptable) and.5 high or better. Start and stop characters along with a check digit are required, per AIAG B-10 Guidelines. Data Identifiers are required per ANSI MH10.8.2 Guidelines. Please suppress the Data Identifiers in the human readable portion. Bar codes will be a minimum of 5 mil to a maximum of 30 mil or.01 to.017 inches for the narrowest element. For bar code symbology, requirements, and specifications refer to AIAG B-10. Human readable fonts should be simple and there must be a clear distinction between the letters O and I and between the numbers 0 and 1, respectively. A quiet zone of no less than.25 inches is required in front of and behind all bar codes. All font heights will be defined in LPBs(lines per block). See 7.15 LPB Character Parameters Table below. This table is found in the AIAG B-10, as well. Borders around the labels will not be required, even though they are shown in all of the label examples in this document. Additional information may be included on the Master or Carton labels as long as it does not interfere with the information required by DTNA. For example, the supplier part #, serial #, etc. If the supplier includes additional barcodes on the label, please do not include them on the same level as the required barcodes as they will interfere with the distance at which they can be scanned. Additional supplier barcodes may be turned ninety degrees to prevent interference with the required barcodes. 14

Parcel shipments require carton labels on each box. Do not cover the carton labels with any parcel shipper labels. A serial number should be in the same area on the label we want the Shipment ID (SID). Sample labels are located in Section 7.31. 1.16 Suggested LPB Character Parameters Table Lines per block Max char per line Point Inches mm 1 LPB 08 64 0.90 22.0 2 LPB 18 32 0.40 11.0 3 LPB 28 20 0.25 7.0 4 LPB 34 16 0.20 5.0 5 LPB 42 12 0.15 4.0 6 LPB 48 10 0.12 3.0 7 LPB 59 08 0.10 2.0 8 LPB 68 06 0.08 1.5 NOTE: Based on 4 x 6 label. 1.17 Labeling on Stretch Film When a unit load is stretch wrapped, one Master Label per unique part number on the pallet and a Mixed Load Label shall be adhered to the outside of the stretch wrap, visible to operators and readable for barcode scanning. This label is required for all stretch wrapped unit loads of single or multiple packs. This label may be removed with the stretch wrap making individual container labeling necessary as described in Section 7.18. See Section 7.19 for Mixed Load Labeling. 1.18 Master Label A Master Label shall be used to identify the total contents of a multiple single pack load of the same part number. The label shall be placed on the unit load in such a manner that when the unit load is broken apart the label is discarded (ex. Attach to outside of stretch wrap). One Master Label per individual part number on the pallet is required. A Master Label will aggregate Carton Label quantities. See AIAG B-10 for further information. A sample Master Label is located in Section 7.31. 1.19 Container Label Identical labels should be located on two adjacent sides of each container. The upper edge of the label should be as high as possible on the container. At least one of the two container labels on each carton 15

should be visibly facing outward when inspecting the pallet. Do not stack the carton so that both carton labels face inward. A sample container label is located in Section 7.31. 1.20 Mixed Load Label Mixing of part numbers on a pallet is discouraged but may be unavoidable due to low economic order quantities and/or shipping/handling expense. In these limited circumstances, a Mixed Load Label shall be used to identify a load of multiple single packs of different part numbers. Note: Mixed loads are required to have a Master Label for each individual part number on the unit load. The labels shall be placed on the unit load in such a manner that when the unit load is broken apart the label is discarded (ex. Attach to outside of clear stretch wrap). See AIAG B-10 for further information. A sample Mixed Load label is located in Section 7.31. 1.21 Line Sequence Label When applicable, a line sequence label must be applied when a part is intended for a specific truck number. A line sequence label is used to identify information located on the 866 Production Schedule. If you do not receive an EDI 866 Production Sequence then a line sequence label is not required. A sample line sequence label is located in Section 7.31. Example Instructions for placement: On a steering axle, the Line Sequence Serial will be placed on the I-Beam. On a rear axle, the Line Sequence Serial label will be placed on top of the permanent metal tag. This will protect the tag from paint. 1.22 Repack Tote Label When applicable, a Repack Tote label will be applied to returnable totes utilizing radio frequency identification tags (RFID). The labels shall be placed within the recess, on top of the RFID tag itself, generally under the plastic handles. The label cannot be placed along the lip or the edge on the tote. On the smaller totes, the RFID and label will reside on opposite sides of the tote. On the larger totes, the RFID and label would be attached to adjacent sides. A sample line sequence label is located in Section 7.31. 1.23 Destination Label Each unit load must be identified with a properly addressed Destination Label directing the unit load to the receiving plant location shipping address. The destination is not a third party consolidator or transshipment facility; we need the actual plant location. The Destination Label must be placed on the unit load where it can be easily seen and read. A sample Destination Label is located in Section 7.31. 1.24 Odd Size and Shaper Shipping Shipments of other kinds may require different forms of labeling or hang tags with adhesive labels. 16

Drums, barrels or cylinder containers- Identical Package labels shall be located on the top and near the center of the side. Bale - Identical Package labels shall be located on at the upper corner of an end and an adjacent side. Rack - Place Label on Kennedy placard adhesive sticker / card or label plate provided on Rack or Open Metal Bin. If there is no Kennedy placard available, please use plastic cable tie hang tags. Some parts in racks are stored outside and will require a waterproofed label or a label wrapped in a sealed zip-lock bag. Open Metal bin or tub Place Label on Kennedy placard adhesive sticker / card or label plate provided on Rack or Open Metal Bin. If there is no Kennedy placard available, please use plastic cable tie hang tags. 17

Single Coil or Roll Attach Package label with plastic cable tie hang tag to both inside and outside of coil. Tubing and Bars/Bundles - Attach Package label with plastic cable tie hang tag to each end. Returnable Containers Remove all old labels and affix the new labels in the space provided on the returnable container. Please do not build up a stack of used stickers on top of each other. 1.25 Trailer Loading and Transportation Requirements Packaging design and specifications such as size, weight, and stackability drastically affect the cost of transportation. The DTNA Corporate Traffic Department will designate the most economical mode of transportation consistent with the nature and the volume of the parts. Supplier specific Routing Instructions must be obtained from the DTNA Corporate Traffic Department and are available on Supplier Online. The transportation mode may influence the type and size of the packaging selected. It is the supplier s responsibility to efficiently and economically pack the material for the method of transportation and type of handling planned for the final destination and its intended point of use. Unit loads must be properly loaded, blocked, and braced for shipment. Void space must be filled to prevent load shifting in transit. 1.26 Packing Slips and Bills of Lading 18

Packing Slips and Bills of Lading, whether direct shipments or shipments moving through a consolidation point, must be submitted with every shipment. Please see Section 7.30 for Pack List and Bill of Lading content requirements. An EDI Advanced Shipping Notification (ASN) is essentially an electronic copy of the Pack Slip/BOL. 1.27 Direct Shipments Direct shipments moving from a shipping plant to a destination plant must include Pack List prepared in duplicate. One copy of the Pack List is to be firmly attached to the outside of one of the containers in shipment. The second copy should be tendered to the carrier along with two copies of the Bill of Lading. Please see Section 7.30 for Pack List and Bill of Lading content requirements. 1.28 Consolidated Shipments Partial loads moving from a shipping plant through a consolidation point for delivery to a destination plant must include a Pack Lists prepared in sets of four. One copy of the Pack List should be firmly attached to the outside of one of the containers in shipment. The other three copies should be tendered to the carrier along with two copies of the Bill of Lading. The Bill of Lading should indicate that the packing slips are to be delivered to the consolidator at the time of delivery. Please see Section 7.30 for Pack List and Bill of Lading content requirements. 1.29 Customs Papers All U.S. shipments destined outside of the U.S. must have a customs invoice provided by the supplier and included with other shipping documentation. See your Routing Instructions provided by the DTNA Corporate Traffic Department. 1.30 Third Party Consignment When making a third party consignment shipment, the Bill of Lading must include: Consigned to: Daimler Trucks North America c/o (Third Party, ex. Acme Parts Supplier) 1.31 Packing Slips and Bills of Lading Requirements All Pack Lists and Bills of Lading must include the following information: Supplier Information Supplier Name and Address. (Ship point, not billing office). Vendor Code. Vender ID barcode including Data Identifier. Packing Slip number. Date Shipped. Shipping Information Ship to: DTNA plant, DTNA location code, address. Bill to: DTNA plant, DTNA location code, address. Re-ship destination if the Ship-to is not the ultimate plant destination (e.g. a consolidator, third party logistics or other transshipment location). Gross, tare, and net (material) weight. Shipped via SCAC (routing as instructed by DTNA Corp Traffic Dept). Bill of Lading number. Trailer/Container number stenciled on the trailer. 19

Freight INCO terms. Transportation mode (rail, full truckload, less than truckload, air, ocean). LTL shipments include Pro Way Bill Number. AIR shipments include AirWay Bill Number. Full Truck Load or Intermodal shipments must include Trailer Number or Container Number, and Carrier SCAC from DTNA Supplier Online. Shipment Identification (SID) Number (SID # - same that is sent on the Advanced Shipping Notice (ASN) and Invoice). The SID # is critical for DTNA processes. Shipment Identification (SID) Number barcode including Data Identifier. Number of unit loads: pallets, containers, cartons, etc. Pieces per unit load. Unit of measure (if other than each per unit load). Item Information Purchase Order (PO) number. PO Line number. DTNA Part Number. Ship Quantity (Unit of measure if other than each - ie. ft, lbs, etc.) The part numbers are to be listed in Alpha/Numeric order. Each unique part number should only be listed once, with total quantity Note: The SID number should be clearly marked as a literal "SID Number". As a supplier may use any value for their SID Number, we cannot assume the BOL, Pack List, Shipper or any other value is also used as the SID number. The SID # is critical for DTNA processes. 1.32 Forms and Samples The following pages include forms and samples that suppliers can reproduce to conform to the requirements of this manual. 20

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DTNA Standard Returnable Containers: 27