Bosch Appliances Supplier Logistics User Manual

Supplier Logistics Manual | Release 3.0

Supplier Logistics Manual

Logistics Requirements of Bosch Group
Release 3.0

Bosch Supplier Logistics Manual, Release. 3.0

Contents

Preamble..................................................................................................................................5

1. Information Logistics ............................................................................................................6

1.1 Communication between SUPPLIER and BOSCH........................................................6

1.1.1 Contacts..............................................................................................................6

1.1.2 Availability...........................................................................................................6

1.2 Information Interchange.................................................................................................6

1.2.1 Classical EDI.......................................................................................................7

1.2.2 WebEDI ..............................................................................................................7

1.2.3 Procurement Control Concepts...........................................................................7

1.2.4 EDI Transactions ................................................................................................8

1.2.5 Consistency of Automated Processing ...............................................................9

1.2.6 ASN / Label Printing / Shipping Documents........................................................9

1.3 Order Processing.........................................................................................................10

1.3.1 Execution..........................................................................................................10

1.3.2 Order Tracking (Release Process)....................................................................10

1.3.3 Production and Material Release......................................................................11

1.3.4 Start-Up and Phase-Out Management..............................................................11

1.3.5 Order Processing Using the VMI Process.........................................................11

1.3.6 Order Processing Using the Kanban Process...................................................12

1.4 Controlling of Logistics Performance...........................................................................12

1.4.1 Delivery Performance .......................................................................................12

1.4.2 Premium Freight ...............................................................................................12

2. Packaging Logistics............................................................................................................13

2.1 Specification of Packaging ............................................................................................13

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2.1.1 Returnable Packaging.............................................................................................15

2.1.2 Disposable Packaging.............................................................................................16

2.2 Handling of Empties ......................................................................................................17

2.2.1 Procurement of Empties..........................................................................................17

2.2.2 Management of Returnable Balances .....................................................................18

2.2.3 Supply of Empties....................................................................................................19

2.2.4 Storage, Repair and Replacement Procurement.....................................................19

2.2.4 Cleaning..................................................................................................................20

3. Dispatch Logistics ..............................................................................................................21

3.1 Shipping Procedure.....................................................................................................21

3.1.1 Carriers.............................................................................................................21

3.1.2 Premium Freight......................................................................................................22

3.1.3 Combining of Shipping Units...................................................................................22

3.1.4 Parcels (GSP processing).......................................................................................22

3.1.5 Pallets, box pallets and large containers...........................................................22

3.1.6 Maximum weight of packing units.....................................................................22

3.2 Delivery specifications.................................................................................................22

3.3 Labeling of Shipping Units...........................................................................................23

3.3.1 Labeling Methods..............................................................................................23

3.3.2 Format and Attachment ....................................................................................24

3.4 Shipping Advice (with GSP processing) ......................................................................24

3.5 Shipping Documents....................................................................................................25

3.5.1 Delivery Note ....................................................................................................25

3.5.2 Transport Documents .......................................................................................26

3.5.3 Customs Documents.........................................................................................26

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3.6 Security in transportation of goods....................................................................26

4.0 Logistics Quality...............................................................................................................28

4.1 Supplier Performance (LEB) − Logistics......................................................................28

4.2 Logistics complaints ....................................................................................................28

5. Outlook...............................................................................................................................30

6. Abbreviations......................................................................................................................31

7. Attachments .......................................................................................................................33

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Preamble

Competition in national and international markets has become significantly tougher in recent years.
The increased individuality of our customers places high requirements on our business, and as a
result also on the logistics functions, in terms of quality and flexibility.

The conventional role of handling commodity and merchandise flows has nowadays turned into a
comprehensive, customer-oriented management function.

The quality of logistics is becoming more and more decisive to the competitiveness of our business,
and is an increasingly important factor in our strategic success.

However, since the Bosch Group (in the following referred to as BOSCH for short) can only attain that
high quality level in conjunction with its suppliers, it needs reliable and competent business partners
who work toward the same customer-oriented goals.

This Supplier Logistics Manual is intended to enhance supply relationships between suppliers and
BOSCH Group and to minimise costs resulting from non-conformance.

The standards set out form the generally binding framework for all business units of BOSCH. They
can be supplemented by location-specific standards, in order to respond to the specific supply
relationships of particular plants or regions.

This document is structured as follows:
Text refers to general and standard regulations and processes.
Tables refer to region–specific standards from the point of view of the receiving Bosch plant.
Supplements may be required due to regional requirements or bilateral agreements between a

BOSCH plant and its suppliers. The local partner at the receiving BOSCH plant is able to provide you
with corresponding information.

Liability of SUPPLIER is governed by the agreed delivery contract.

Robert Bosch GmbH
Corporate Sector Purchasing and Logistics
CP/LOG
Postfach 10 60 50
D-70049 Stuttgart
Germany

e-Mail: [e-mail]

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1. Information Logistics

Communication between SUPPLIER and BOSCH is the basis of a successful cooperation. The
preconditions for this are:

Prompt, proactive notification of changes in all matters relating to supplier relations (agreements,
processes etc.) by both parties.

Compliance with and monitoring of agreements.

1.1 Communication between SUPPLIER and BOSCH

1.1.1 Contacts

Suppliers must designate a key contact personnel responsible for handling logistics support (name of
contact, nominated deputy and superior, with e-mail address, phone and fax numbers).

The key contact person must have the necessary expertise.
Communication language:

- language of corresponding customer BOSCH plant, OR

- English (as standard for international communication)

1.1.2 Availability

The key contact person designated by SUPPLIER (or his or her proxy) must be reachable on working
days between 7 a.m. and 5 p.m. (SUPPLIER’S local time).

Outside of this time period (and during plant shutdown periods), appropriately qualified staff must be
on call to handle "emergencies".

1.2 Information Interchange

Electronic data interchange (EDI) as method of information interchange is fundamental to all supplier
relations with BOSCH. SUPPLIER should use EDI to receive and transmit information (such as
delivery call-offs/ scheduled releases) from and to BOSCH. Suppliers who do not have an existing EDI
link to BOSCH must establish an EDI system based on a jointly agreed schedule and procedure with
the receiving BOSCH plant.

Technical requirements and message formats are set out in detail in the specific EDI contracts. This
manual also relates to those contract elements. Further information can be obtained from the EDI
brochure, available from your BOSCH key contact personnel.

A distinction can be made between categories of EDI: classical EDI / WebEDI.

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1.2.1 Classical EDI

For the interchange of ordering data BOSCH uses the following industry standards:

REGION STANDARD
A. Europe VDA, ODETTE, EDIFACT
B. North America AIAG, EDIFACT
C. South America RND,EDIFACT
D. South Africa VDA, ODETTE, EDIFACT
E. Australia EDIFACT, ANSI
F. Asia EDI format to be defined with the receiving BOSCH plant – except for

- Korea EDIFACT as preferred standard

- Japan ZEXEL legacy system for local supply (imported parts: fax)

1.2.2 WebEDI

WebEDI is an internet-based information system for suppliers to communicate with BOSCH, used for
example in cases of low call-off volumes or where suppliers do not have the necessary infrastructure.
It is an alternative to classical EDI. BOSCH standard WebEDI application is provided by internet
marketplace SupplyOn AG

(Internet: http://www.supplyon.com)– except for RBLA plants (South

America) that use BeSIS.

1.2.3 Procurement Control Concepts

The following procurement control concepts are generally in use:

- Classical delivery call procedure with releases (Release Process)

- Vendor Managed Inventory (VMI) or delivery control management (DCM)

- Kanban

Within the framework of the implementation of the Bosch Production system (BPS) BOSCH strives to
form a lean supply chain from the customer to the supplier.

If the general conditions allow, primarily procurement processes based on pull principles will be used
(only deliver what the previous manufacturing level has consumed) , for example Kanban, DCM, and
VMI.

The control concept applied for the respective contracted product is decided by BOSCH.

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The procurement control concepts KANBAN, DCM and VMI,are supported by a web based Inventory
Collaboration Tool provided by the company SupplyOn.

Release Process
Release Orders are transmitted on a rolling basis. They are updated regularly and generally contain

data with a horizon of at least 6 months. The last release order is binding and replaces earlier
releases.

VMI Process (Vendor Managed Inventory)

For Vendor Managed Inventory (VMI) the supplier will receive access to gross demand and the
inventory levels from Bosch for the supplied parts. SUPPLIER is responsible to manage the shipments
to ensure inventory level within the agreed MIN-/ MAX-stock levels (generally consignment stock).
These levels are agreed upon between BOSCH and SUPPLIER.

DCM Process (Delivery Control Monitor)
Similar to the VMI process (Min / max. stocks) but inventory control according to actual consumption.

When the order point the system produces a suggested amount for delivery (e.g. fill up to max).
Dependent on the agreement with the plant this suggested amount for delivery must be delivered in
full or can be modified by supplier related to the agreed Min / max. limits. This control concept is often
used as a interim solution before the introduction of KANBAN (concept used for products with constant
consumption; in many cases several shipments per day).

KANBAN Process
Trigger is the consumption of KANBANs (containers) from supply source near to production

(supermarkets). This steering concept is used mainly for A and B parts with constistant consumption
and is the preferred form of supply within Bosch.

If the KANBAN process is used, additional forecast information will be transmitted as well (forecast
valid for production and material release). The KANBAN order is the binding trigger for the shipment.

1.2.4 EDI Transactions

Suppliers with an EDI connection to BOSCH use delivery call-off/ releases (in case of VMI gross
demands), and advanced shipping notifications (ASN) as the minimum EDI transactions.

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The use of stock movement transactions (in particular for consignment arrangements) and self-billing
invoice procedures should be agreed specific to location.

On specific request of BOSCH, SUPPLIER must use forwarding advice (transport advice), while using
WebEDI.

For VMI and eKANBAN EDI based interfaces are available as well and can be installed plant specific.

1.2.5 Consistency of Automated Processing

Ordering and stock information communicated to SUPPLIER by classical EDI should be imported into
SUPPLIER’s IT-system without need of further data entry or additional editing.

The goal is fully automated integration into SUPPLIER’s production planning system (PPS). This
includes, for example, breakdown into parts lists, automatic generation and forwarding of purchase
orders to subcontractors, and integration into capacity planning and production control processes.

The consistency of the system must be ensured throughout the planning, production and shipping
process.

Communication between the systems must be regularly monitored to assure correct and complete
transfer of data.

1.2.6 ASN / Label Printing / Shipping Documents

SUPPLIER shall transmit an ASN via EDI/ WebEDI system or VMI order monitor at the same time that
the shipping documents are generated.

Shipping documents/ labels are generated in SUPPLIER’S own shipping system according to the
following standards.

REGION STANDARD
A. Europe VDA
B. North America AIAG
C. South Ameri c a RND (ASN) and VDA (labels)
D. South Africa VDA
E. Australia EDIFACT, ANSI QSP0703-906 (Internal procedure)
F. Asia Standards to be defined with according BOSCH customer plant – except for

- Japan BOSCH External: ZEXEL legacy system for local supply (Import :VDA)

If SUPPLIER uses SupplyOn WebEDI, it may generate the shipping documents with this tool.
The information used for labelling purposes should be taken from the EDI release/ demand

information sent.

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1.3 Order Processing

SUPPLIER receives yearly volumes as non-binding forecast. Based on this, SUPPLIER has to make
sure

- that production capacity corresponds to this volume and

- that sub-suppliers are able to deliver material accordingly.

1.3.1 Execution

The delivery dates quoted in the call-offs/ scheduled releases (Release processing) are the required
dates of receipt by correspondent BOSCH plant. Any non-conformance to that standard must be
agreed separately. SUPPLIER checks if the received delivery call-off/ release is complete, correct and
plausible (e.g. that SUPPLIER name, part number, quantity and delivery dates are correct). If any
discrepancies are noted, SUPPLIER must inform the responsible BOSCH contact immediately.

Delivery call-offs/ scheduled releases are binding for SUPPLIER unless notification to BOSCH within 2
working days after receipt of the release that the requirement cannot be fulfilled

Order confirmations are only required in case of a non-conformance to the specified delivery date or
quantity. Any non-conformance to that standard is agreed separately.

In the case of process deviation the supplier must prove a functional escalation management

1.3.2 Order Tracking (Release Process)

SUPPLIER continuously tracks ongoing orders internally. SUPPLIER must be able to provide
information of the progress of production at all times. Comprehensive, transparent tracking of orders
placed with subcontractors must be ensured.

SUPPLIER will install an early warning system to detect supply problems. An effective crisis
management system and emergency plans are required.

If disturbances occur which affect the compliance of BOSCH requirements SUPPLIER must initiate
the necessary countermeasures. If it becomes clear that, despite the necessary measures initiated,
the agreed deliveries cannot be met, SUPPLIER must notify their BOSCH contact immediately via e­mail/ fax and advise a new delivery date and/or quantity, as appropriate.

In this case, SUPPLIER must also be able to provide information on the following points:

1. The cause of the supply problem

2. Production output capabilities for the part(s) in backlog and production planning (number of
shifts/hours per working day and working days per week)

3. Alternative production options investigated (production lines and/or production schedule; always
according to quality requirements)

4. Availability of alternative parts (always according to quality requirements)

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5. Check the possibility of partial delivery

6. Premium freight capabilities and timing

7. Escalation of the problem inside its company
If no mutually agreed solution can be found, involvement from the highest levels within SUPPLIER’s

organization will be required.
Liability of SUPPLIER due to late delivery is regulated by the relevant delivery contract.

1.3.3 Production and Material Release

SUPPLIER is obliged to deliver ordered products and required associated materials to the receiving
BOSCH plant.

Production releases are legally binding purchase orders of finished goods. However, regarding
delivery dates the last updated delivery call-off/ scheduled release is decisive.

Material releases are the basis for BOSCH’s obligation to reimburse respective materials purchased
by SUPPLIER, if any. Production and material releases relate to dates of receipt by BOSCH.

Periods for production and material releases are defined in general in the relevant supply contract. If
the agreed releases are verifiably inadequate to maintain delivery capability, SUPPLIER can apply for
an extension for material release or request additional forecast data from his BOSCH contact in
individual cases. Requirements beyond those periods represent non-binding forecasts, based on
which SUPPLIER plans its production capacity and sample production.

If BOSCH cancels delivery call-offs/ scheduled releases of finished goods within production release
period without having placed corresponding future orders, BOSCH decides if receipt of the finished
goods within a reasonable time is accepted or whether agreed upon price is paid.

If BOSCH cancels delivery call-offs/ scheduled releases of finished goods within material release
period, BOSCH shall reimburse the cost which SUPPLIER incurred for such material, provided
however that SUPPLIER demonstrates that the respective material could not be otherwise used within
reasonable time. BOSCH reserves the right to request the shipment of the cancelled raw material.

1.3.4 Start-Up and Phase-Out Management

During start-up and phase-out BOSCH expects increased flexibility from its suppliers. This requires a
capacity planning process in order to be able to supply even small volumes timely in the right
quantities.

Capacity planning must be coordinated between BOSCH and SUPPLIER in time.

1.3.5 Order Processing Using the VMI Process

The processes and agreements described in sections 1.3.1 to 1.3.4 are to be applied analogously with
VMI (DCM). Deviations are pointed out in the following.

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