Man Logistics Standard MN V3-0 Englisch

MAN Nutzfahrzeuge AG WORKS STANDARD October 2008

Logistics Norm for the MAN Nutzfahrzeuge Group M 3399

Dimensions in mm

Continued on Page 2 to 35

Prepared by: Ringelhan, PWPSC

Vielemeyer, ESS

Release ESS:

2009-03; englisch

Replaces: 2008-07 Material group no.:

MAN Nutzfahrzeuge Aktiengesellschaft, Munich works – Dept. Standardization (ESS) � All rights reserved according to ISO 16016. Distribution and use of the contents are not allowed without written permission from MAN Nutzfahrzeuge Aktiengesellschaft.

This English version is a translation. In case of do ubt or conflict the valid German-language original will govern. Contents

1 Scope and purpose.................................. .........................................................................................3

2 Communication with suppliers....................... .................................................................................4 2.1 Availability .................................................................................................................................................. 4 2.2 Consultation discussions ........................................................................................................................... 4 2.3 Confidentiality ............................................................................................................................................ 4

3 Delivery standards ................................. ...........................................................................................4 3.1 JIS/JIT standard procedure........................................................................................................................ 5 3.2 JIS/JIT contract warehouse........................................................................................................................ 6 3.3 JIS/JIT 2-stage delivery process ................................................................................................................ 6 3.4 Ship to Line................................................................................................................................................ 7 3.5 Individual procurement with/without warehousing...................................................................................... 7 3.6 Vendor Managed Inventory (VMI) .............................................................................................................. 7 3.7 Stock procurement..................................................................................................................................... 7

4 Planning and forecasting process ................... ...............................................................................8 4.1 Requirement forecast................................................................................................................................. 8 4.2 Freezing, model mix, pearl chain ............................................................................................................... 9 4.3 Flexibility in terms of supplier capacity..................................................................................................... 10 4.4 Provision of safety stocks......................................................................................................................... 11

5 Call-off and ordering process...................... ..................................................................................11 5.1 Call-off content, formats and transmission times ..................................................................................... 12

5.1.1 Call-offs within the context of the JIS/JIT standard procedure and JIS/JIT contract warehouse procedure .............................................................................................................................. 12 5.1.2 Call-offs within the context of “2-stage JIS/JIT” delivery ............................................................... 14 5.1.3 Call-offs within the context of “Ship to Line” direct delivery........................................................... 15 5.1.4 “Individual procurement” orders with and without warehousing .................................................... 15 5.1.5 Information within the context of “Vendor Managed Inventory” warehousing ............................... 15 5.1.6 Call-offs within the context of “Stock procurement”....................................................................... 15

5.2 Call-off recipient ....................................................................................................................................... 16 5.3 Checking of delivery forecast and call-off ................................................................................................ 16

5.3.1 Anticipated deviation in delivery date or quantity.......................................................................... 16 5.3.2 Changes after call-off has been sent ............................................................................................ 16

5.4 Technical breakdown in the case of JIS/JIT call-offs ............................................................................... 16

6 Supplier dispatch process .......................... ...................................................................................16 6.1 Containers/Packing batch ........................................................................................................................ 16 6.2 Labelling................................................................................................................................................... 17 6.3 Transport commissioning and responsibility ............................................................................................ 17

6.3.1 Responsibility for transport at the MAN Nutzfahrzeuge Group ..................................................... 19 6.3.2 Responsibility for transport on the part of the supplier.................................................................. 20

6.4 Customs handling and incoterms for delivery of goods from non-EU countries....................................... 21 6.4.1 Supplier is not based in the EU..................................................................................................... 21 6.4.2 Supplier is based in the EU .......................................................................................................... 22

6.5 EDI communication within the context of the dispatch process ............................................................... 23 6.5.1 Delivery papers via EDI ................................................................................................................ 23 6.5.2 Billing via EDI................................................................................................................................ 23

6.6 Quality of the delivery .............................................................................................................................. 23

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7 Process for empties................................ ........................................................................................23 7.1 Container definition...................................................................................................................................23 7.2 Container financing and development ......................................................................................................24

7.2.1 Universal load carriers and small load carriers..............................................................................24 7.2.2 Special load carriers......................................................................................................................24 7.2.3 Packaging material........................................................................................................................24

7.3 Container use and quality.........................................................................................................................24 7.4 Call-off of empties from the MAN Nutzfahrzeuge Group ..........................................................................24 7.5 Empty container call-off quantity...............................................................................................................25

7.5.1 Calculating the maximum stock value for empty containers within the container cycle .................25 7.5.2 Calculating container requirements for each working day .............................................................25 7.5.3 Calculating the container stock range within the container cycle...................................................26

7.6 Supply security (under and oversupplying)...............................................................................................27 7.7 Container account statement/container inventory.....................................................................................27

8 Logistical evaluation .............................. ........................................................................................28 8.1 Supplier evaluation ...................................................................................................................................28 8.2 Freight forwarder evaluation.....................................................................................................................28

9 Breach of contractual obligations.................. ...............................................................................29 9.1 Damaged and missing parts process .......................................................................................................30 9.2 Delay ........................................................................................................................................................30 9.3 Returning/ sending back parts..................................................................................................................31 9.4 Repackaging.............................................................................................................................................31 9.5 Repair/ replacement of damaged containers............................................................................................31 9.6 Clarification of responsibility .....................................................................................................................31

10 Deviations from the agreed process................. ............................................................................31 10.1 Amendments ............................................................................................................................................31

10.1.1 New parts and index changes .......................................................................................................31 10.1.2 Changing containers .....................................................................................................................32 10.1.3 Supplier changes...........................................................................................................................32

10.2 Faults........................................................................................................................................................33 10.2.1 Maintenance and repair of production equipment .........................................................................33 10.2.2 Interruptions to operation ..............................................................................................................33

11 Appendix........................................... ...............................................................................................33 11.1 Plant-specific additions.............................................................................................................................33

11.1.1 Nuremberg plant............................................................................................................................33 11.1.2 Spare parts location Dachau .........................................................................................................33

11.2 Notes on issuing quotes ...........................................................................................................................34 11.3 Other applicable documents.....................................................................................................................34 11.4 Contacts ...................................................................................................................................................34

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1 Scope and purpose

The Logistics Norm of the MAN Nutzfahrzeuge Group governs the logistical links with suppliers for all the plants that make up the organisation. As regards the scope of supply for which an individual supplier is responsible for providing to the MAN Nutzfahrzeuge Group, this standard is supplemented by specific information in the form of the MAN Logistics Agreement .

Where suppliers are responsible for multiple scopes of supply, the MAN Nutzfahrzeuge Group will draw up an individual Logistics Agreement with them for each individual scope of supply. The scope of supply shall comprise:

� A defined MAN item number, i.e.

� A unit (a pre-assembled set of parts already assigned to a vehicle)

� An assembly (a pre-assembled set of parts) or

� An individual part

or

� A set , i.e. a commissioned and partially pre-assembled set of components without its own MAN item number, but which still consists of individual components/assemblies with defined MAN item numbers.

or

� A module , i.e. a pre-assembled set of parts without its own MAN item number, but consisting of individual parts/assemblies with defined MAN item numbers.

If the scope of supply is to be provided in sequence (see Section 3.1), it consists of many individual item numbers and is known as a family. In this case, the scope of supply shall comprise either:

� A unit/assembly/individual part family with defined MAN item numbers for the units/assemblies/individual parts

or

� A set or module family without defined MAN item numbers for the sets/modules, but whose assemblies and individual parts do have a defined item number.

Delivery Scope

With defined item number

assembly or aggregate family

module family set familyindividual part

family

assembly or aggregate

module set individual part

Without defined item number

CommissionedNot

commissioned

Completely pre assembled scopes Not pre assembled scopes

Single delivery

Delivery as a family

Delivery Scope

With defined item number

assembly or aggregate family

module family set familyindividual part

family

assembly or aggregate

module set individual part

Without defined item number

CommissionedNot

commissioned

Completely pre assembled scopes Not pre assembled scopes

Single delivery

Delivery as a family

Figure 1: Types of scope of supply

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2 Communication with suppliers

Contacts:

The MAN Nutzfahrzeuge Group provides its suppliers with details of key contacts so that they can get in touch quickly should they need to. On request, it can also provide its suppliers with an organisational chart that contains details of all the contacts available at management and administrative level within the various departments. Similarly, the MAN Nutzfahrzeuge Group also expects its suppliers to name specific contacts. The supplier questionnaire, which is available on the Internet, should be used to advise the MAN Nutzfahrzeuge Group of these details.

Address: http://www.man-mn.com

Area: Company/Purchasing & logistics/Contact

2.1 Availability

As plants of the MAN Nutzfahrzeuge Group generally operate on a multiple shift basis, suppliers must ensure that they can be contacted outside of normal office hours. Therefore, using the Internet questionnaire described in Section 2.1, the supplier must nominate a central point of contact who will be available between the hours of 6pm and midnight if required.

Any general queries that the MAN Nutzfahrzeuge Group submits to a supplier must be answered on the same day. If individual supplier employees cannot be contacted due to absence, appropriate arrangements must be made to ensure that suitable replacements are available.

Queries escalated as “urgent” (for example in the case of an imminent supply bottleneck) must be answered within one hour. If it is not possible for suppliers to provide a definitive response within this time, they must keep the MAN Nutzfahrzeuge Group informed of the current situation.

2.2 Consultation discussions

General consultation discussions with the supplier take place regularly every 12 months and are organised by the MAN Nutzfahrzeuge Group. The MAN Nutzfahrzeuge Group reserves the right to request that consultation discussions take place at shorter intervals. The relevant partner shall arrange the discussion if they need to raise any major changes or problems affecting collaboration (see also Section 10).

2.3 Confidentiality

The MAN Nutzfahrzeuge Group and its suppliers undertake to treat all decisions, agreements and any associated documents as strictly confidential. It is agreed that the MAN Nutzfahrzeuge Group shall actively provide the partner with important information.

3 Delivery standards

The MAN Nutzfahrzeuge Group ensures its suppliers are integrated into standardised material procurement processes. The MAN Nutzfahrzeuge Group makes a distinction in terms of its five standards for direct delivery without warehousing and its three standards for delivery with warehousing (see Figure 2 and Figure 3).

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Figure 2: Delivery standards of the MAN Nutzfahrzeu ge Group – Direct delivery without warehousing

Supplier MAN

Production/ Assembly

Stock procurement

Vendor Managed Inventory*


Warehouse

Supplier VMI-ware-

house**

Supplier Delivery to call-off in line with

Disposition

The supplier is responsible

for the delivery

Provision in the

pull principle

Provision in the

pull principle

Del

iver

y fr

om s

tore

s

The supplier is responsible for stock control

Quality test

Production/ Assembly/

Testing

Individual procurement(with warehouse)

Supplier Delivery to order

WarehouseProvision in the

pull principle

* with/without consignment ** Also prior to production/ assembly without supply

Supplier MAN


Stock procurement

Vendor Managed Inventory*


Warehouse

Supplier VMI-ware-

house**

Supplier Delivery to call-off in line with

Disposition

The supplier is responsible

for the delivery

Provision in the

pull principle

Provision in the

pull principle

Del

iver

y fr

om s

tore

s

The supplier is responsible for stock control

Quality test

Production/ Assembly/

Testing

Individual procurement(with warehouse)

Supplier Delivery to order

WarehouseProvision in the

pull principle

* with/without consignment ** Also prior to production/ assembly without supply

Figure 3: Delivery standards of the MAN Nutzfahrzeu ge Group – Delivery with warehousing

The delivery standard defines many factors, including the format and content of delivery call-offs/orders, whether the scope of supply is to be segregated according to type or provided in sequence, the stocking location and who is responsible for inventory management. The MAN Nutzfahrzeuge Group defines the delivery standard to be used in accordance with the supplier’s location and, more specifically, for the scope of parts to be supplied and the recipient MAN plant. For example, where suppliers are required to deliver their shipments in a particular assembly order (sequence) to the recipient MAN plant from a remote location, the MAN Nutzfahrzeuge Group uses the contract warehouse concept (see Section 3.2) or a 2-stage delivery process involving support from a service provider (see Section 3.3) to integrate them into the supply chain.

3.1 JIS/JIT standard procedure

JIS and JIT call-offs result in Just-in-Sequence or Just-in-Time delivery to the MAN Nutzfahrzeuge Group. This delivery process is based on the order of production (sequence) in assembly plants, which is defined daily by scheduling customer orders (vehicles) in relation to particular assembly lines.

With the JIS/JIT standard procedure, the manner in which the deliveries are called off is synchronised with production, i.e. they are provided in precise accordance with the production sequence, and are not be delivered until the moment when they are due to be installed. JIT deliveries involve supplying goods segregated according to type and exactly to schedule, whereas JIS deliveries also need to take account of the precise order of assembly (sequence). Within the context of the call-off specification, the Logistics Agreement

JIT/JIS standard procedure

Supplier MAN

Production / Assembly

Traileryard/ Trailerdock/

Footprint Supplier

Dire

ct d

eliv

ery

Provision in the pull principle

Delivery to automatic call - off in line with “pearl chain” logistics

* MDL: Assembly service provider The supplier is responsible for stock control

Quality test

Production / Assembly /

Testing

Individual procurement ( without warehouse )

Supplier Buffer

close to Con -

sumption ***

Delivery to order

Ship - to - line concept Production / Assembly

Delivery following consumption Buffer near consumption

Supplier


Footprint

Supplier 1, MDL* or LSP**


JIT/JIS 2 - stage Production / Assembly Supplier 2

Supplier JIT/JIS contract warehouse


Contract warehouse


Footprint Provision in the

pull principle

*** theft protected area for communication equipment

Delivery to automatic call - off in line with “pearl

chain” logistics

** LSP: Logistics service provider

Delivery to

Automatic call - off

Delivery to automatic call - off in line with “pearl

chain” logistics

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defines the lead time as the time between the call-off being submitted and the expected delivery time to the recipient MAN plant (see Section 5.1.1).

There is a special kind of JIS delivery called SILS (Supply in Line Sequence) delivery. In this case, the supplier is not informed of the delivery sequence until the relevant end products are placed on the assembly line.

The MAN Nutzfahrzeuge Group only commissions its 1st-tier suppliers in the case of the JIS/JIT standard procedure. All processes are handled by these 1st-tier partners of the MAN supply chain. The 1st-tier partners have sole responsibility for commissioning upstream suppliers and for the procurement of raw materials.

The JIS/JIT standard procedure does not allow for delivery from overseas, as the distance and transportation time to the recipient MAN plant will generally be too large.

3.2 JIS/JIT contract warehouse

Within the context of its JIS/JIT contract warehouse delivery standard, the MAN Nutzfahrzeuge Group only commissions its 1st-tier suppliers. The supplier is obliged to build up specific stock relating to its scope of supply in a location close to the recipient MAN plant. The aim here is to ensure that JIS/JIT deliveries can still be made despite fluctuating transportation times or in cases where the supplier is based a long way away from the recipient MAN plant. The stock at the contract warehouse is the property of the supplier. The supplier can use its own warehouse for stockpiling or this task can be assigned to a service provider commissioned by the supplier. Pre-assembly and logistics can be taken care of at the contract warehouse or by the service provider on the supplier’s behalf, if required.1 All services provided will be invoiced under the supplier’s accounts payable number. JIS/JIT deliveries are dispatched from the contract warehouse. The maximum distance allowed between the contract warehouse and recipient plant is specified in the Logistics Agreement .

For deliveries from non-EU countries, the supplier's contract warehouse must be within the EU. The supplier is responsible for ensuring that the goods are dispatched in accordance with customs legislation where cross-border transportation is involved (see Section 6.4), repackaging (where required), building up the MAN safety stock at the contract warehouse (see Section 4.4) and sequencing and picking of deliveries, if applicable. This includes handling at the port in the case of overseas delivery. The supplier is only responsible for physically transporting the goods to the contract warehouse when it is located outside of the MAN Nutzfahrzeuge Group freight forwarding network for the area. If it is covered by the network, the goods will be transported to the contract warehouse by one of the area freight forwarders authorised by the MAN Nutzfahrzeuge Group.

3.3 JIS/JIT 2-stage delivery process

With the 2-stage JIS/JIT delivery process, the MAN Nutzfahrzeuge Group enters into a contractual logistics agreement not only with the supplier, but also with an additional partner. This adds an additional stage to the supply chain between the supplier and the MAN Nutzfahrzeuge Group. A service provider undertakes for example pre-assembly or logistics activities (e.g. warehousing, sequencing or picking activities) at stage one. Both the service provider (at stage one) and the supplier (at stage two) use their own accounts payable numbers. If the supplier delivers goods to its authorised contract warehouse and the MAN Nutzfahrzeuge Group integrates an additional service provider into the supply chain between the contract warehouse and recipient plant, this process also corresponds to the JIS/JIT 2-stage delivery standard (see Figure 3).

The Logistics Agreement governs who is responsible for detailed MRP, stock ownership and placing transport orders.

SupplierStage 2 MAN

* MDL: Assembly service provider

Traileryard/Trailerdock/

Footprint


… involving a service provider between Supplier and MAN

Production/ AssemblySupplier

** LSP: Logistics service provider

Delivery to automatic call-off

JIS/ JIT 2-stage … Stage 1

MDL* orLSP**

Delivery to automatic call-off in line with “pearl

chain” logistics

Figure 4: Representation of the JIS/JIT 2-stage del ivery standard

1 For the specifics relating to goods deliveries from non-EU countries, see section 6.4.

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Within the context of the JIS/JIT 2-stage delivery standard, in the case of deliveries from non-EU countries, the service provider operates a transshipment warehouse in Europe on behalf of the MAN Nutzfahrzeuge Group. The service provider assumes responsibility for repackaging, building up the safety stock specified by the MAN Nutzfahrzeuge Group at the transshipment warehouse and, where applicable, sequencing or picking tasks and/or any activities designed to add value, e.g. pre-assembly, painting etc. The supplier is responsible for physically transporting the goods to the transshipment warehouse and for ensuring that they are dispatched in accordance with customs legislation. This includes handling at the port in the case of overseas delivery. In this case, the stock held at the service provider’s transshipment warehouse is the property of the MAN Nutzfahrzeuge Group.

3.4 Ship to Line

In the case of Ship to Line delivery, the supplier assumes control of the entire material delivery. The supplier is responsible for ensuring that a defined range of the required materials is stocked close to the point of consumption. Supply organisation is left up to the supplier, but must be agreed with the MAN Nutzfahrzeuge Group. Generally, suppliers will build up a single basic stock at the recipient MAN plant. They will then work on a 2-container principle, exchanging empty containers for full containers as and when required. The Logistics Agreement specifies the range of the safety stock which is to be stored close to the point of consumption (see Section 4.4). Stock ownership is also governed by the Logistics Agreement .

The Ship to Line delivery standard does not allow for deliveries from overseas.

3.5 Individual procurement with/without warehousing

Individual procurement governs deliveries to the MAN Nutzfahrzeuge Group that are not covered by scheduling agreements. Orders are generally either one-offs or sporadic. In the case of individual procurement, the logistical details are not defined using the Logistics Agreement . The MAN Nutzfahrzeuge Group is responsible for forwarding all necessary requests and information to the supplier (delivery volume, delivery deadline, packing batch, containers, packaging, labelling and, if applicable, transport service provider, delivery papers etc.) when the order is placed.

3.6 Vendor Managed Inventory (VMI)

The Vendor Managed Inventory approach involves an intermediate warehousing stage (between the supplier and the MAN Nutzfahrzeuge Group) that enables the purchasing market to be kept completely separate from production. Warehousing and warehouse management are carried out by the MAN Nutzfahrzeuge Group. The supplier assumes responsibility for inventory management, i.e. delivery times and quantities. Thus, the supplier has sole responsibility for the stock and supply aspects. The MAN Nutzfahrzeuge Group identifies a stock corridor with limits for the maximum and minimum range of the stock; within these limits, the supplier is free to manage the stock as it sees fit. Factors including variable parameters (such as delivery reliability and transport costs) are taken into account when calculating the corridor limits, allowing the MAN Nutzfahrzeuge Group to adapt these limits on a monthly basis if necessary. Stock ownership is governed by the Logistics Agreement .

The supplier undertakes to

� Maintain delivery data (arrival dates) on a daily basis

� Check the stock levels regularly and

� Comply with the stock limits (stock corridor).

The Vendor Managed Inventory delivery standard does not allow for deliveries from overseas.

3.7 Stock procurement

The stock procurement approach involves an intermediate warehousing stage (between the supplier and the MAN Nutzfahrzeuge Group) that enables the purchasing market to be kept completely separate from production. Warehousing, warehouse management and inventory management are carried out by the MAN Nutzfahrzeuge Group who remains responsible for these processes. The supplier’s role is to deliver the

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material segregated according to type, in accordance with the call-offs from the MAN Nutzfahrzeuge Group (see Section 5.1.6). Stock ownership is governed by the Logistics Agreement .

In the case of deliveries covering longer distances (particularly from overseas), a safety stock must be maintained at a location close to the recipient MAN plant. The safety stock should be built up in accordance with the “JIS/JIT contract warehouse” or “JIS/JIT 2-stage” delivery standards, depending on whether it is the supplier or the MAN Nutzfahrzeuge Group that is responsible for this task.

4 Planning and forecasting process

4.1 Requirement forecast

The requirement forecast provides suppliers with information about the MAN Nutzfahrzeuge Group’s prospective requirements as far as their own particular scope of supply is concerned. The requirement forecast is non-binding on MAN, does not authorise the supplier to make deliveries and is independent of the delivery standard.

As requirements cannot be concretely scheduled until customer orders have been received, some future requirements are predicted in order to generate the requirement forecast. The proportion of these predicted requirements can vary, as the range of orders is heavily dependent on the economic situation. Requirements can therefore fluctuate between individual forecasts. Exact requirements are known approx. 17 working days before assembly of an HGV/bus starts. This is the moment when the MAN Nutzfahrzeuge Group freezes the orders (known internally as “freezing”) (see Figure 5).

(Assemblies)

Raw pieces

Individual parts

Time

Leve

l of o

rder

fulfi

lmen

t

12 month rolling plan

2 months ...

17 working days

3 months 4 months 5 months 6 months 7 months 8 monthsapprox.1 month

Fin

al a

ssem

bly,

Fhs

, ax

le, e

ngin

eco

nstr

uctio

nP

rodu

ctio

nw

ithou

tw

areh

ouse

Planningabout to be

picked

Planningbeing picked

Fixedrequirement

Fixed order stock Disposition quantities

Forecast requirementBased on experience from the past

(Assemblies)

Raw pieces

Individual parts

Time

Leve

l of o

rder

fulfi

lmen

t

12 month rolling plan

2 months ...

17 working days

3 months 4 months 5 months 6 months 7 months 8 monthsapprox.1 month

Fin

al a

ssem

bly,

Fhs

, ax

le, e

ngin

eco

nstr

uctio

nP

rodu

ctio

nw

ithou

tw

areh

ouse

Planningabout to be

picked

Planningbeing picked

Fixedrequirement

Fixed order stock Disposition quantities

Forecast requirementBased on experience from the past

Figure 5: Long-term planning

Due to the necessary lead times associated with internal MAN deliveries and with production of the main units such as the cab, axle and motor, the delivery period allowed for the scope of supply concerned may be considerably less than the 17 working days leading up to the start of HGV or bus assembly. When prospective orders are confirmed, short-term fluctuations in call-offs occur ; these must be compensated for by means of safety stocks in the logistics chain as well as flexibility on the part of both the supplier and the MAN Nutzfahrzeuge Group. If this is not possible in individual cases, the procedure relating to deviations from the delivery call-off must be followed; this procedure is described in Section 5.3.

Upon securing a contract, the supplier receives a current prediction of requirements for the year as well as the predicted maximum daily needs for each MAN location (see Logistics Agreement ). During operations, the MAN Nutzfahrzeuge Group regularly supplies both an updated requirement forecast covering a forecast period of 12 months for each item number and the accumulated requirements for each delivery date and item number. This requirement forecast, in VDA 4905 or EDIFACT DELFOR format, is based on the delivery schedule.

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The Logistics Agreement defines both the transmission time and format. If the forecast has not been sent by the agreed time, the supplier must inform the relevant materials manager/planner at MAN immediately.

The MAN Nutzfahrzeuge Group will inform its suppliers of any change in conditions affecting supplier handling. This shall include, in particular, major changes in quantity, changes to work or shift patterns and changes to non-production days.

4.2 Freezing, model mix, pearl chain

When orders are frozen (the “freezing” process) approx. 17 working days before vehicle assembly is due to commence, they are definitively assigned to a particular production day and vehicle assembly line at the MAN assembly plants. The order of production (“sequence”) within these daily packages (“model mix”) is fixed 10 working days (see Table 2) prior to vehicle assembly. In accordance with “pearl chain” logistics, the orders are arranged in the exact order of assembly (see Figure 6). Sequences are devised for the assembly of HGVs and buses, the production and assembly of cabs, motors and axles as well as for a number of essential pre-assembly processes.

Orders Daily packages Model mix

Model mixString of pearlsFor VDA 4916,

here T call-off

Order release(Picking)

Assembly

Order stockAggregate

delivery

For VDA 4916, here Z call-off

End of linePlacing on HGV line

Vehicles

17 working days

11 working days

Mod

mix

Orders Daily packages Model mix

Model mixString of pearlsFor VDA 4916,

here T call-off

Order release(Picking)

Assembly

Order stockAggregate

delivery

For VDA 4916, here Z call-off

End of linePlacing on HGV line

Vehicles

17 working days

11 working days

Mod

mix

Figure 6: Chronological order scheduling process (u sing the example of HGV assembly in Munich)

The MAN Nutzfahrzeuge Group also schedules the assembly sequences for main units such as the motor, cab, front axle and rear axle, based on the pearl chain for the various vehicle production lines and the requirements of other external customers. This scheduling step generates the “unit model mix”. Table 1 shows the lead times for the unit model mix, based on the applicable unit start date.

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3 working daysEngine assemblyNurembergComponents sector

10 working daysBus assemblyStarachowice

10 working daysBus assemblyPosen

10 working daysBus assemblySalzgitter

10 working daysBus assemblyAnkara

21 working daysBus assemblyPlauen

21 working daysBus assemblyPilsting

Bus sector

11 working daysHGV assemblyVienna

11 working days8 working days

11 working days

HGV assemblyCab assemblyCKD

Steyr

11 working daysHGV assemblyCracow


13 working days

HGV assemblyAxle assemblyCKD

Salzgitter

11 working days8 working days6 working days4 working days

HGV assemblyCab assemblyAxle assembly (rear axle)Axle assembly (front axle, transfer box)

Munich

HGV sector

Fixed range in the assembly sequence

Assembly lineReceiving plant

3 working daysEngine assemblyNurembergComponents sector

10 working daysBus assemblyStarachowice

10 working daysBus assemblyPosen

10 working daysBus assemblySalzgitter

10 working daysBus assemblyAnkara

21 working daysBus assemblyPlauen

21 working daysBus assemblyPilsting

Bus sector

11 working daysHGV assemblyVienna


11 working days

HGV assemblyCab assemblyCKD

Steyr

11 working daysHGV assemblyCracow


13 working days

HGV assemblyAxle assemblyCKD

Salzgitter

11 working days8 working days6 working days4 working days

HGV assemblyCab assemblyAxle assembly (rear axle)Axle assembly (front axle, transfer box)

Munich

HGV sector

Fixed range in the assembly sequence

Assembly lineReceiving plant

Table 1: Time spans for fixed assembly sequence (pe arl chain) at plants

Changing the order (e.g. because of a delivery bottleneck) after the model mix has been defined results in very high follow-up costs because of how the various assembly lines are linked and because of how specific suppliers are commissioned to supply the core assemblies required. Therefore, in addition to ensuring supply security, the main logistical aim is to keep the sequences stable. Only by strictly adhering to the plant sequence the fluctuations in short-term material can be kept within tight limits.

4.3 Flexibility in terms of supplier capacity

Each supplier is obliged to monitor the capacity required to manufacture the products falling within its scope of delivery in order to determine the extent to which the maximum available capacity is utilised. Within this context, both the non-binding requirement forecasts and the binding requirement data in the delivery call-off must be taken into consideration for the whole forecast period (up to twelve months). If any potential capacity bottlenecks are identified, the supplier must take the appropriate action without delay in order to increase the available capacity levels and must inform the MAN Nutzfahrzeuge Group of this in a clear and comprehensible manner. If the supplier needs to order resources from the MAN Nutzfahrzeuge Group, these must be requested from Purchasing at least four weeks before the required order date and a copy of the request must also be sent to Material Planning/Management; the reasons for the order must also be provided in writing.

Upon securing a contract, the supplier is obliged to advise the MAN Nutzfahrzeuge Group of the average and maximum weekly capacities that have been set aside for the MAN Nutzfahrzeuge Group. In addition, any measures required to achieve the maximum weekly capacity must also be specified. As standard, suppliers must be prepared for permanent increases/reductions in quantities of at least 20% (based on average weekly capacity) within a lead time of one month. If the MAN Nutzfahrzeuge Group needs to impose differing flexibility requirements on the supplier concerning capacity, this will be agreed separately (see Logistics Agreement ).

If necessary, the supplier and the MAN Nutzfahrzeuge Group shall agree on a capacity/requirement levelling system, which shall run on a monthly rolling basis, with the aim of identifying and/or avoiding any capacity bottlenecks or over capacity at an early stage. This collective scheduling activity shall focus on managing the

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capacity resources used within the supply chain. The MAN Nutzfahrzeuge Group offers an Internet-based application (MAN homepage) in the form of its DCP tool for the purpose of implementing the rolling capacity/requirement levelling system. This involves identifying short to long-term capacity bottlenecks affecting the supplier by comparing (MAN) requirements with (supplier) capacity levels according to the black box principle.

4.4 Provision of safety stocks

The purpose of the safety stocks calculated by the MAN Nutzfahrzeuge Group is to compensate for short-term fluctuations in the schedule. Table 2 shows the stocking locations that are to be used for each of the delivery standards. As a general rule, safety stocks are not intended to safeguard against delivery delays on the part of the supplier. Thus, the supplier is responsible for delivering punctually to the MAN Nutzfahrzeuge Group, and to ensure this takes place, must maintain its own safety stocks of finished/semi-finished parts. The level of these stocks and their stocking location depends on

� The stability of the supplier's internal processes

� The stability of the logistical chain upstream of the supplier

� The selected delivery standard (see Section 3)

Suppliers are obliged to advise the MAN Nutzfahrzeuge Group of the current range of their own safety stocks on request.

If required, the Logistics Agreement shall also specify the range of safety stocks that the MAN Nutzfahrzeuge Group requires the supplier to ensure in order to safeguard against problems including supply risks. This specification provides the basis for building up the initial safety stock. However, the MAN Nutzfahrzeuge Group reserves the right to adapt the specified ranges of safety stocks in the light of various factors, including supplier performance. In such cases, the MAN Nutzfahrzeuge Group shall inform the supplier of the modified values.

Warehouse in the MAN receiving plant

Delivery from stores:- Vendor Managed Inventory- Stock procurement- Individual procurement with warehousing

-Direct delivery:- Individual procurement without warehousing

Close to the point of consumption in the MAN receiving plant

Direct delivery:- Ship to line

HGV trailer or footprint in the MAN receiving plant

Direct delivery:- JIS/JIT standard procedure- JIS/JIT contract warehouse - JIS/JIT 2-stage

Stocking location for security stockDelivery standard

Warehouse in the MAN receiving plant

Delivery from stores:- Vendor Managed Inventory- Stock procurement- Individual procurement with warehousing

-Direct delivery:- Individual procurement without warehousing

Close to the point of consumption in the MAN receiving plant

Direct delivery:- Ship to line

HGV trailer or footprint in the MAN receiving plant

Direct delivery:- JIS/JIT standard procedure- JIS/JIT contract warehouse - JIS/JIT 2-stage

Stocking location for security stockDelivery standard

Table 2: Storage location of safety stock depending on the delivery standard used

5 Call-off and ordering process

The following sections explain the content, formats and transmission times for the call-offs sent by the MAN Nutzfahrzeuge Group to its suppliers, depending on the selected delivery standard. Further information, e.g. relating to the data contained in the call-off, can be found in the MAN EDI starter pack as well as the EDI process description for JIS/JIT delivery.

As standard, the MAN Nutzfahrzeuge Group shall send delivery call-offs via electronic data interchange (EDI), according to either VDA or EDIFACT standards (see Section 5.1). It is assumed that the supplier already has the necessary facilities in place to support EDI. Call-offs can only be sent via the Internet, fax or mail in special cases. The delivery quantities and delivery dates (deadlines) stated in the delivery call-offs and, in particular, in

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the JIS and JIT call-offs, must always be adhered to. The stated delivery dates are the dates the products are due to arrive at the appropriate recipient MAN plant.

5.1 Call-off content, formats and transmission time s

5.1.1 Call-offs within the context of the JIS/JIT s tandard procedure and JIS/JIT contract warehouse procedure

Both JIS/JIT delivery standards generally involve two types of call-off for the supplier: Firstly, a delivery forecast containing future planned requirement figures is sent on a continuous basis, i.e. daily or weekly (see section 4.1). This delivery forecast is not binding on MAN and does not authorise the supplier to make deliveries. Secondly, the binding JIS or JIT call-offs are sent out; these then replace the delivery forecasts completely for the time frame concerned. Surplus quantities are omitted. Higher call-off quantities are classed as additional requirements. The modified requirements are automatically taken into consideration when the next delivery forecast is issued.

In addition to specifying the quantity, the JIS/JIT delivery call-off also includes details of the delivery time. If this delivery time cannot be adhered to, the MRP department at the relevant MAN plant must be notified immediately by telephone, e-mail etc. Both the internal throughput time required by the supplier and the transport time must be taken into account within this context. This requirement applies regardless of whether an early or late delivery is anticipated, or whether the early or late delivery will be at the expense of the carrier or the supplier. The freight forwarder is only required to inform the MAN Nutzfahrzeuge Group of any changes following dispatch that affect the scheduled arrival time that has been communicated.

In the case of the JIS/JIT contract warehouse delivery standard, call-offs are sent to the recipient specified by the supplier. This can be, for example, either a production site or the supplier's contract warehouse (see section 3.2). The supplier must ensure that its contract warehouse can always be informed without delay. Delivery notes that are generated at the contract warehouse when goods are dispatched must contain the supplier’s accounts payable number. In addition, the consistency of the documents showing proof of delivery must be ensured. In particular, consistency must be ensured between the information on the delivery note and the information on the invoice.

The information below describes the differences between the call-offs for JIS and JIT deliveries and between the EDIFACT and VDA call-off formats.

5.1.1.1 JIS call-offs with a trailer load specified by the MAN Nutzfahrzeuge Group

If the MAN Nutzfahrzeuge Group needs to assign particular items to a specific HGV trailer, it shall send call-offs that provide details of the items to be supplied on the trailer in accordance with the order of production. In such cases, the call-off shall always be sent in EDIFACT DELJIT format. The VDA format is not used within this context.

With the EDIFACT DELJIT format, the DELJIT/SYNCHRO PLANNED call-off is used to inform the supplier of the vehicle’s precise configuration in accordance with the frozen sequence specified by the MAN Nutzfahrzeuge Group (see Section 4.2). The order of the vehicles is defined using sequential numbers in ascending order. With this type of call-off, this order does not correspond to the production sequence, but to the scheduled number of vehicles per day. This information is available for a production period of 17 working days.

For the supplier's scope of supply, the MAN Nutzfahrzeuge Group generates a scheduled sequence of loaded HGV trailers containing the items that are to be supplied in sequence for a defined time frame. In the case of the DELJIT/SYNCHRO CALL-OFF PLAN, the MAN Nutzfahrzeuge Group sends the supplier details of what the last of the newly scheduled trailers is to contain, along with the scheduled arrival time (see Figure 7). From the supplier's point of view, this is the scheduled trailer which is to be delivered last to the MAN Nutzfahrzeuge Group.

The consumption of goods at the recipient plant is what dictates when the next scheduled trailer (Kanban trailer) is authorized to deliver; this is done on the basis of the trailer ID (PLAN � FIRM). Following the “consumption” of a trailer, the binding trailer call-off DELJIT/SYNCHRO CALL-OFF FIRM is sent (see Figure

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7). The number of scheduled and fixed trailer loads within the time frame is specified by the Logistics Agreement .

The complete JIS call-off in the EDIFACT DELJIT format consists of the DELJIT/SYNCHRO CALL-OFF PLAN and the DELJIT/SYNCHRO CALL-OFF FIRM call-offs. The Logistics Agreement specifies whether the MAN Nutzfahrzeuge Group also needs to send the DELJIT/SYNCHRO PLANNED call-off and how far in advance this call-off should be sent.

* By agreement ** Optional

ED

IFA

CT

•Newly frozen vehiclenumbers withoutsequence

• Item numbers in linewith parts list analysis

• Item numbers in linewith parts list analysisfor one trailer load

•Vehicle numbers in sequence



DELJIT/SYNCHRO PLANNED**

DELJIT/SYNCHRO CALL-OFF PLAN

DELJIT/SYNCHRO CALL-OFF FIRM

Time

Freezing Modelmix

Delivery/arrival date

Placing onproduction

line

Range of fixedtrailer loads*

Advance notification*, max. 17 working days

Range of plannedtrailer loads*

Call-off cycle: After consumption of a trailer load

Call-off binding* By agreement ** Optional

ED

IFA

CT

•Newly frozen vehiclenumbers withoutsequence

• Item numbers in linewith parts list analysis





DELJIT/SYNCHRO PLANNED**

DELJIT/SYNCHRO CALL-OFF PLAN

DELJIT/SYNCHRO CALL-OFF FIRM

Time

Freezing Modelmix



line

Range of fixedtrailer loads*


Range of plannedtrailer loads*

Call-off cycle: After consumption of a trailer load

Call-off binding

Figure 7: Information and advance notification for the JIS call-off in the EDIFACT DELJIT format

5.1.1.2 JIT call-offs with a trailer load specified by the MAN Nutzfahrzeuge Group

As with the JIS call-off, the MAN Nutzfahrzeuge Group generates a scheduled sequence of loaded HGV trailers containing the items that are to be supplied for the supplier’s scope of supply and for a defined time frame, where required. However, in contrast to JIS delivery, in this case the MAN Nutzfahrzeuge Group schedules the loading of the trailers according to item type and not according to the scheduled vehicle sequence.

In the case of the DELJIT/Kanban CALL-OFF PLAN, the supplier receives non-binding details of what the last of the newly scheduled trailers is to contain, along with the scheduled arrival time. From the supplier's point of view, this is the scheduled trailer which is to be delivered last to the MAN Nutzfahrzeuge Group. The number of fixed trailer loads within the time frame is specified by the Logistics Agreement .

The consumption of goods at the recipient plant is what dictates when the next scheduled trailer (Kanban trailer) is authorized to deliver; this is done on the basis of the trailer ID (PLAN � FIRM). Following the “consumption” of a trailer, the binding trailer call-off DELJIT/Kanban CALL-OFF FIRM is sent.

The complete JIT call-off in the EDIFACT format consists of the DELJIT/Kanban CALL-OFF PLAN and the DELJIT/Kanban CALL-OFF FIRM call-offs.

Further information on the content and layout can be found in the MAN EDI starter pack .

5.1.1.3 JIS call-off without a trailer load specifi ed by the MAN Nutzfahrzeuge Group

If the MAN Nutzfahrzeuge Group does not specify a trailer load, but instead leaves this to the supplier, the call-off can be in either the EDIFACT DELJIT or VDA 4916 formats.

Call-offs in the EDIFACT DELJIT format are generated and sent in the same way as when a trailer load is specified, but no trailer ID is given. Details can be found in the MAN EDI starter pack .

The JIS call-off in the VDA 4916 format specifies an exact delivery date and quantity, based on daily requirements (daily target). It either consists of something known as a Z call-off, or is made up of a Z call-off and a MAN-specific D call-off (see Figure 8). A call-off for a vehicle (Z/D) is always unique and final. No electronic change or cancellation information can be issued in respect of the type and quantity of the item numbers allocated to a vehicle or the required date. Should such changes become necessary, they must be

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agreed separately (emergency strategy). Lead times and call-off frequency are defined in the Logistics Agreement .

The Logistics Agreement specifies whether a T call-off must also be sent. This call-off informs the supplier about the scheduled, but not yet confirmed, number of vehicles in a daily target on the final assembly line (see Figure 8). In addition, the Logistics Agreement specifies how far in advance the call-off is to be sent.

VD

A 4

916

Time

•Vehicle numbers of a daily target withoutsequence

• Item numbers in linewith parts list analysis,

Picking Modelmix



line

Advance notification*


T call-off**



•Vehicle numbersof a daily target in sequence



•No item numbers

Z call-off D call-off**

Call-off cycle: Daily

Call-off binding Call-off binding, if D call-off not applicable

VD

A 4

916

Time

•Vehicle numbers of a daily target withoutsequence


Picking Modelmix



line



T call-off**






•No item numbers

Z call-off D call-off**

Call-off cycle: Daily

Call-off binding Call-off binding, if D call-off not applicable

Figure 8: Information and advance notification for the JIS call-off in the VDA format

Z call-off:

The requirement is triggered by the internal assembly line sequence defined as a “frozen” pearl chain. The Z call-off is based on the vehicle-related parts list, which contains all of the item numbers with details of the quantities needed for the unit of one specific vehicle. The Z call-off is sent once and describes the frozen assembly order. Where a D call-off is used, the Z call-off does not authorise the supplier to make deliveries.

D call-off:

The D call-off defines the vehicle sequence (sequence call-off). For a D call-off to be used, it must always have been preceded at some point by a Z call-off. Only the production number (VIN) is sent. The arrival dates in the D call-off may differ from those in the Z call-off. The D call-off is binding for the delivery.

5.1.1.4 JIT call-off without a trailer load specifi ed by the MAN Nutzfahrzeuge Group

If the MAN Nutzfahrzeuge Group does not specify a trailer load, but instead leaves this to the supplier, the call-off can be in either the EDIFACT DELJIT or VDA 4915 formats.

In the case of a JIT call-off, the MAN Nutzfahrzeuge Group sends detailed call-offs every working day via electronic data interchange. The detailed call-off contains supply-relevant required quantities and arrival dates up to a time specified in the Logistics Agreement . Any dates and quantities falling outside this time period should only be viewed as a delivery schedule in the sense of a delivery forecast, and are of no direct relevance in terms of supply. The latest detailed call-off that is sent replaces its predecessor.

5.1.2 Call-offs within the context of “2-stage JIS/ JIT” delivery

As standard, the MAN Nutzfahrzeuge Group sends the binding detailed or sequential call-offs to the partner in the first stage of the supply chain, i.e. to the 1st-tier supplier or logistics service provider. The partner in stage 2 only receives the non-binding delivery forecast. If the item numbers used for the 1st-tier service provider’s and 2nd-tier supplier’s scopes of supply are different, the partner in stage 1 also receives a non-binding forecast. The call-off content, formats and transmission times described in Section 5.1.1 apply in the same way as

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before. If this standard approach cannot be followed, the changes must be specified in the Logistics Agreement .

The MAN Nutzfahrzeuge Group expects both partners to send each other delivery notes via EDI transmission that make reference to the delivery forecast sent by the MAN Nutzfahrzeuge Group to the 2nd –tier partner. The consistency of the documents showing proof of delivery must be ensured. In particular, consistency must be ensured between the information on the delivery note and the information on the invoice.

5.1.3 Call-offs within the context of “Ship to Line ” direct delivery

In the case of “Ship to Line” direct delivery, the supplier does not receive any binding call-offs from the MAN Nutzfahrzeuge Group. Only the requirement forecast is provided in VDA 4905 or EDIFACT DELFOR format (see section 4.1).

5.1.4 “Individual procurement” orders with and with out warehousing

Within the context of “individual orders” involving direct delivery and delivery with warehousing, the supplier does not receive any call-offs from the MAN Nutzfahrzeuge Group. The sporadic orders are sent by fax or post, or via EDI.

5.1.5 Information within the context of “Vendor Man aged Inventory” warehousing

The MAN Nutzfahrzeuge Group provides its suppliers with current planned requirements, stock levels (assembly buffer and warehouse) and consumption quantities daily via the Internet. Maximum and minimum stock ranges are defined in the MAN Nutzfahrzeuge Group VMI tool. The MAN Nutzfahrzeuge Group reserves the right to adapt the specified ranges in the light of various factors, including supplier performance. The requirement data provided by the MAN Nutzfahrzeuge Group within this context is binding. In addition, the MAN Nutzfahrzeuge Group sends the requirement forecast, along with current consumption quantities and stock levels, to the suppliers in the VDA 4905 or EDIFACT DELFOR delivery call-off formats (see also Section 4.1); this forecast is not binding from the perspective of delivery.

5.1.6 Call-offs within the context of “Stock procur ement”

The stock procurement delivery standard is the only standard where the requirement forecast in VDA 4905 or EDIFACT DELFOR format (see Section 4.1) actually authorises the supplier to make deliveries within a specified period, rather than merely being interpreted as a forecast. As standard, this time period is 17 working days. Any deviations from this shall be specified in the Logistics Agreement . The appropriate parameters apply as mandatory for delivery (see Figure 9).

Delivery instructions cycle: By agreementdaily, weekly, monthly, etc.

VD

A 4

905,

Time


* By agreement Call-off binding


•Demand forecast for12 months

Demand forecast

•Arrears and resultingimmediate requirement

•Required quantity, date

Delivery plan call-off

for

each

item

num

ber

ED

IFA

CT

DE

LFor

Delivery instructions cycle: By agreementdaily, weekly, monthly, etc.

VD

A 4

905,

Time


* By agreement Call-off binding


•Demand forecast for12 months

Demand forecast

•Arrears and resultingimmediate requirement

•Required quantity, date

Delivery plan call-off

for

each

item

num

ber

ED

IFA

CT

DE

LFor

Figure 9: Information and advance notification for delivery schedule call-off

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5.2 Call-off recipient

The supplier must specify a call-off recipient as far as the EDI connection is concerned, and outline a fallback solution that can be used in the event of any breakdown (e.g. fax transmission over a defined period in parallel with the EDI call-off). In the case of the 2-stage JIS/JIT delivery standard, recipients who can authorise the second stage of the supply chain must also be specified, if required.

5.3 Checking of delivery forecast and call-off

5.3.1 Anticipated deviation in delivery date or qua ntity

The supplier regularly checks that delivery call-offs have been received, as well as their plausibility and feasibility. If the supplier has any doubts about the information, it must contact the MAN Nutzfahrzeuge Group of its own accord. In particular, if it seems likely that the delivery date or quantity cannot be respected, the supplier must inform the MAN Nutzfahrzeuge Group immediately. When doing so, it must state the reason for the delay in delivery, and specify a subsequent delivery date. In the case of more serious backlog situations, the supplier shall provide the MAN Nutzfahrzeuge Group with a catch-up plan agreed with the Material Planner/Material Manager (to be updated daily), in order to resume punctual deliveries. Any claims relating to delivery delays shall remain unaffected by this.

Changes to the quantity or delivery date made after a call-off has been sent may only be made in writing and must be validated by the MAN Nutzfahrzeuge Group in each individual case (e.g. rounding up the delivery quantity to a full truck load). Before this can happen, an objection must first be raised against the delivery call-off by the specified deadline, in writing or by fax, and sent to the relevant Material Planner/Material Manager. After these time periods have elapsed, the call-offs that have been sent are deemed to have been accepted.

The following deadlines for objection apply:

� Within 10 working days for long-term call-off changes (> three months before delivery date)

� Within three working days for medium-term call-off changes (three months to 15 days before delivery date)

� Within 24 hours for short-term call-off changes (< 15 days before delivery date)

� Immediately for JIS and JIT call-offs

5.3.2 Changes after call-off has been sent

Certain scopes of supply involving items that are to be used in the MAN Nutzfahrzeuge Group’s end products, can change even after the delivery call-off, due to changes in customer requests. As far as these scopes are concerned, deadlines and features are agreed in the Logistics Agreement , which specifies the latest possible date that a change can be made and the product features which can be changed.

5.4 Technical breakdown in the case of JIS/JIT call -offs

The MAN Nutzfahrzeuge Group and the supplier shall endeavour to identify any technical faults affecting the EDI transmission of call-offs as quickly as possible. The supplier shall inform the MAN Nutzfahrzeuge Group if the agreed delivery call-offs have not been received by 10:00 a.m. at the latest on the agreed day (daily if applicable) (see Contacts appendix in the Logistics Agreement ).

6 Supplier dispatch process

6.1 Containers/Packing batch

The supplier must adhere to the container type and sales packaging (see Aftersales and spare part packing guidelines ), as well as the defined packing batch, specified for the applicable recipient plant (for detailed specifications see Logistics Agreement ). Deviations from the specified container are only permitted once prior written approval (e-mail is acceptable) has been obtained from the relevant MAN planner or material

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manager. The approval must contain the affected item numbers, as well as details of the agreed alternative packaging and the precise time of the approval. If the deviation is approved, the specified alternative packaging should be used in this individual case.

The MAN Nutzfahrzeuge Group expects goods to be delivered in undamaged containers.

Containers are only to be filled with goods for one offloading point. Containers must be delivered segregated according to type, unless it is a case of JIS delivery or a question of sets or modules being delivered (see Section formats (see also Section 4.1).

6.2 Labelling

The water resistant label, to be filled out correctly and in full according to VDA 4902 (see Figure 10) must be attached securely to the container in a visible location on the left (viewed from the perspective of the direction of travel). The labels for small containers should only be placed in the pockets intended for this purpose. The labels must not be attached with adhesive.

If parts with different item numbers are transported in one container, clear labelling is required to facilitate identification of the goods. This procedure (more than one item number per container) is only permitted in exceptional cases and with the MAN Nutzfahrzeuge Group’s prior agreement. Pilot samples are to be clearly identified as such with their own label.

(16) Batch No. (H)(15) Package No. (8)

(14) Design alteration level(13) Date

(12) Supplier No. (V)

(11) Supplier’s item number (30S)

(10) Designation of delivery, service(9) Fill quantity (Q)

(8) Customer’s item number (P)

(7) Number of packages(6) Gross weight(5) Net weight

(4) Supplier address (short name, plant, post code, city)(3) Delivery note No. (N)

(2) Offloading point - warehouse location - use key(1) Recipient of goods

(16) Batch No. (H)(15) Package No. (8)

(14) Design alteration level(13) Date

(12) Supplier No. (V)

(11) Supplier’s item number (30S)

(10) Designation of delivery, service(9) Fill quantity (Q)

(8) Customer’s item number (P)

(7) Number of packages(6) Gross weight(5) Net weight

(4) Supplier address (short name, plant, post code, city)(3) Delivery note No. (N)

(2) Offloading point - warehouse location - use key(1) Recipient of goods

Figure 10: Label according to VDA 4902

The following information should be added to the label in the case of JIS deliveries: Trailer number, tray sequence number (container), chassis number of each component, arrival date, date of arrival on assembly line and assembly line sequence.

6.3 Transport commissioning and responsibility

Depending on the supplier's location, either the supplier or the MAN Nutzfahrzeuge Group is responsible for organising, commissioning and carrying out transportation tasks. Transport is organised in accordance with the delivery standard selected, as shown in the following diagram:

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� Individual procurement with/withoutwarehousing

� JIS/JIT contract warehouse

� JIS/JIT standard procedure� Stock procurement� Individual procurement with/without

warehousing

� JIS/JIT 2-stage delivery process

� Ship to Line

� Vendor Managed Inventory

MAN

FCA2 supplier plant

MAN

MAN

FCA2 supplier plant

Supplier

DDU1 MAN plant6

MAN

FCA2 supplier plant

Delivery standard Organisation, commissioning and execution of transp ort by

DDU (Delivered Duty Unpaid): The seller supplies the purchaser with goods that have not been released for import at a specified destination on the incoming means of transport without unloading. The seller bears all costs and inherent transport risks up to this point (with the exception of the import duty in the destination country) (see Incoterms 2000: ICC official rules for the interpretation of trade terms, p. 117).

FCA (Free Carrier): The seller supplies the carrier specified by the buyer with the goods made available for collection at a specified location. If the goods are delivered to the seller's location, the seller is responsible for loading the goods. The seller is not responsible for unloading the goods if they are delivered to another location specified by the buyer. The seller is obliged to comply with all customs formalities pertaining to the export of goods, where applicable (see Incoterms 2000: ICC official rules for the interpretation of trade terms, p. 37).

In principle, the contract warehouse operated or commissioned by the supplier (JIS/JIT contract warehouse) or the service provider commissioned by MAN (JIS/JIT 2-stage delivery) shall be located within the MAN freight forwarding network for the area.

Suppliers are responsible for unloading the goods at the contract warehouse operated or commissioned by them, even if the delivery was collected from the supplier by a MAN freight forwarder. The supplier shall be liable for any loss or damage sustained at the contract warehouse from the point when the goods are unloaded.

The supplier shall be responsible for loading the goods when they are due to leave the contract warehouse. If loading is carried out properly, the risk of incurred loss and damage passes to MAN.

Details of customs duties and other specifics (e.g. the issue of EU-based suppliers) are outlined in Section 6.4 of the Logistics standard.

In the case of overseas deliveries, all shipments are initially placed in a transshipment warehouse so that they can be transported from there by HGV to the recipient MAN plants. This transshipment warehouse is either operated as a contract warehouse by the supplier or by someone else on its behalf (JIS/JIT contract warehouse) or it is operated by MAN or an appointed service provider (JIS/JIT 2-stage delivery). Deliveries to the recipient MAN plant can be made via a service provider or contract warehouse, as well as in the form of a JIS/JIT direct delivery or stock procurement with warehousing procedure.

1

2

3

4

5

6

7

MAN

MAN

FCA2 supplier plant4

Supplier

Supplier

Supplier

Supplier

Supplier

MAN

MAN

MAN

MAN

MAN

Supplier MAN� JIS/JIT contract warehouse 7

� JIS/JIT 2-stage delivery process 7Overseas delivery(container delivery)

Supplier MAN

DDU1 service provider6

Supplier

Supplier

MAN

MAN

Contractwarehouse3,5

Serviceprovider3

Serviceprovider3

Contractwarehouse4.5

� JIS/JIT contract warehouse

� JIS/JIT standard procedure� Ship to Line� Vendor Managed Inventory� Stock procurement� Individual procurement with/without warehousing

� JIS/JIT 2-stage delivery process

Interurban delivery, supplier dispatch

location outside area covered by MAN

freight forwarding network

Supplier

DDU1 MAN plant6

Supplier

DDU1 service provider6

MAN

Supplier

Supplier

MAN

MANService

provider3

Supplier Supplier

DDU1 MAN plant6Supplier MAN

Supplier Supplier

DDU1 MAN plant6Supplier MAN

MANSupplierSupplier MANContract

warehouse4.5

EU

Non-EUMAN

FCA2 supplier plant4.6

SupplierSupplier MANContract

warehouse4.5

MANSupplierSupplier MANContract

warehouse4.5EU

Non-EU

Interurban delivery, supplier dispatch

location within area covered by MAN

freight forwarding network

(Country codes: A, B, CH, CZ, D, DK, E, F,

FIN, GB, H, I, L, N, NL, P, PL, S, SK, SLO)

FCA2 contract warehouse

FCA2 contract warehouse6

FCA2 contract warehouse6

Figure 11: Responsibility for organising, commissio ning and carrying out transportation tasks, depending on the location of the dispatching plant and the delivery standard

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When the supplier is located outside of the the MAN Nutzfahrzeuge Group freight forwarding network, the JIS/JIT contract warehouse delivery standard is used with the incoterm “FCA contract warehouse”. In other cases, delivery takes place using the incoterm “FCA supplier plant”. In the case last mentioned, the supplier is also responsible for unloading the goods when they arrive and loading them again when they leave the contract warehouse, and bears liability for any loss and damage incurred within the intervening time period (see also Figure 11), in the same way and amount as if delivery were taking place using “FCA contract warehouse”. This means that the same conditions apply as if the supplier had transported the goods to the contract warehouse itself and there had been no transfer of risk in the intervening time period. It is the supplier’s responsibility to check the completeness of the goods and to ensure they are not damaged when they are unloaded at the contract warehouse and to report any incorrect quantities or damage immediately to the area freight forwarder. Otherwise, the goods shall be deemed to have been delivered in full and without defects to the supplier.

6.3.1 Responsibility for transport at the MAN Nutzf ahrzeuge Group

In the case of a delivery commissioned by the MAN Nutzfahrzeuge Group, the supplier is responsible both for the timely and correct notification of the the MAN Nutzfahrzeuge Group freight forwarder, and for ensuring that the items included in the scope of supply are made available on time. Details relating to deliveries commissioned by the MAN Nutzfahrzeuge Group can be found in the Dispatch instructions for deliveries to the MAN Nutzfahrzeuge Group , which is available from Purchasing. The Dispatch instructions (current version) forms part of the contract between the supplier and the MAN Nutzfahrzeuge Group. If this instruction is breached, the MAN Nutzfahrzeuge Group reserves the right to issue invoices for the additional expenditure incurred.

In the case of a delivery commissioned by the MAN Nutzfahrzeuge Group, the working hours of the recipient plant must be taken into account along with any Sundays and public holidays that are of relevance from the point of view of transportation. The supplier must ensure that delivery frequency is not affected by the working hours, or by any non-production or reduced production days that apply in respect of the supplier's plant and the freight forwarder.

The MAN Nutzfahrzeuge Group makes a distinction, for deliveries commissioned by the MAN Nutzfahrzeuge Group, between “standard shipments without packages” and “standard shipments with packages”. Within this context, small shipments of up to 60 kg are classed as packages. A shipment can be made up of one or more individual packages (max. 32 kg per package), which are dispatched by the supplier to a recipient MAN plant on the same day.

Standard shipment without packages

In the case of a delivery commissioned by the MAN Nutzfahrzeuge Group involving shipments without packages, the supplier must normally notify the the MAN Nutzfahrzeuge Group freight forwarder two working days before the delivery date (Day A) in order to guarantee a punctual delivery. The freight forwarder shall then collect the shipment one working day before the delivery date (Day B) from the dispatch location, i.e. the production location, contract warehouse location or service provider location. The supplier must make the shipment available accordingly. The delivery shall then be made to the recipient MAN plant on the delivery date (Day C). However, depending on the distance between the dispatch location and the recipient plant, it is often necessary for the notification to take place more than two working days before the delivery date. Consequently, the details are governed by the Dispatch instruction for deliveries to the MAN Nutz fahrzeuge Group, which is binding.

The supplier uses the “Dispatch Notification” form to notify freight forwarders of shipments without packages by fax. If applicable, the supplier shall send the delivery note (in accordance with VDA standard 4913) to the MAN Nutzfahrzeuge Group as well as to the freight forwarder. The delivery note shall not be transmitted to the MAN Nutzfahrzeuge Group via EDI by the freight forwarder. Upon collection, the supplier shall provide the freight forwarder with the original copy of the transport order plus an additional copy (VDA 4922), as well as two copies of a delivery note or goods receipt/issue slip (VDA 4912). For all shipments which do not pass through the freight forwarder’s consolidation point, the transport order and delivery note (if not sent according to VDA standard 4913) must be sent in advance by fax to the freight forwarder. In such cases, the supplier shall be contacted by the freight forwarder.

In the case of JIS/JIT delivery, the goods are to be made available by the supplier at a certain point in time for collection by the freight forwarder; this date will depend on the delivery date (collection date = arrival date -

M 3399: 2008-10

transit time - loading time). The supplier shall notify the freight forwarder of the collection date for the goods and the delivery date to the recipient MAN plant by an agreed time on the day before the goods are to be made available. Upon collection, the supplier shall provide the freight forwarder with the original copy of the transport order plus an additional copy, the EDI goods receipt/issue slip and the chassis number-related loading list. If the transit time changes, the freight forwarder must inform the supplier of this, providing sufficient notice. The freight forwarder shall inform the MAN Nutzfahrzeuge Group and the supplier if the agreed date of collection from the supplier cannot be adhered to. After the goods have been collected from the supplier by the freight forwarder, any subsequent time delays attributable to the freight forwarder must be agreed immediately between the freight forwarder and the MRP department at the affected plant.

Any additional costs caused by deviations from the standard process shall be borne by the party responsible. Such deviations shall include, for example:

Supplier-related:

� Bringing forward dispatch due to non-production days or public holidays (additional trailer required)

� Waiting times due to unusual delays in dispatch

MAN Nutzfahrzeuge Group -related:

� Saturday shifts, which result in shipments from the supplier being brought forward (additional trailer required)

� Postponement or omission of scheduled shipments due to production failures, subject to Section 8 of the General Purchasing Conditions for Production Materi al and Spare Parts for Commercial Vehicles

Standard shipment with packages

In the case of a delivery commissioned by the MAN Nutzfahrzeuge Group, package shipments (up to 60 kg, max. of 32 kg per individual package) shall be sent using a specified service provider. The delivery process is the same as for shipments without packages. The supplier shall use the specified service provider’s dispatch documentation to provide notification of package shipments.

Special consignments

In the case of a delivery commissioned by the MAN Nutzfahrzeuge Group, the instructions for dealing with a special consignment are always defined by the MRP department of the recipient MAN plant, in cooperation with the supplier. The supplier receives a special consignment number from the MAN MRP department, and is responsible for organising transportation. The responsibility for transportation itself lies with MAN. The supplier shall notify the freight forwarder responsible for special consignments using the special consignment number (see Dispatch instruction ). The supplier must fax the delivery note through to the freight forwarder responsible for the special consignment in advance. The the MAN Nutzfahrzeuge Group special consignment number must appear on all the transport documents. If a special consignment has to be undertaken for reasons attributable to the supplier, it is the supplier who shall bear the costs and be responsible for its execution. In this case, the supplier shall have the option of using the MAN Nutzfahrzeuge Group’s area freight forwarder.

6.3.2 Responsibility for transport on the part of t he supplier

Standard shipment

In the case of a delivery commissioned by the supplier, the supplier shall be responsible for ensuring that the commissioned freight forwarder can provide information about the location of the goods at all times. In the case of such deliveries, it is the supplier who has sole responsibility for ensuring that the goods arrive at the recipient MAN plant on time and in the proper manner.

Special consignments

In the case of special consignments, drivers must always be provided with a mobile telephone, so that the location of the consignment can be determined at any time upon request. The MAN Nutzfahrzeuge Group must be provided with the mobile number on request. Special consignments are subject to approval and must be agreed with the MAN Nutzfahrzeuge Group departments.

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6.4 Customs handling and incoterms for delivery of goods from non-EU countries 2

The form of customs handling that is applicable to non-EU goods depends on whether the supplier is based in the EU. The supplier is considered to be resident in the EU if it has a registered office within the EU. Furthermore, the selected delivery standard can also affect how goods from outside the EU are handled.

6.4.1 Supplier is not based in the EU

The supplier is not considered to be resident in the EU if it does not have a registered office within the EU.

If the supplier is not based in the EU and the JIS/JIT contract warehouse delivery standard is being used, the contract warehouse within the EU is to be used as a bonded warehouse3 and the goods handled in accordance with bonded legislation. Where cross-border transportation is involved, the supplier is obliged to ensure shipment according to customs law (dispatch procedure T14) so that the goods can be sent to the bonded warehouse and cleared as dutiable goods. The goods are then subject to a bonded warehouse procedure. When a single lot is called off from the bonded warehouse by the MAN Nutzfahrzeuge Group, the supplier or the commissioned service provider shall initiate another dispatch procedure (T1). The area freight forwarder commissioned by the MAN Nutzfahrzeuge Group shall collect the delivery as dutiable goods and transport them to the recipient MAN plant. The MAN Nutzfahrzeuge Group shall then pay the duty at this point (see Figure 12).

Figure 12: Non-EU delivery using JIS/JIT 1- or 2-st age processes and involving suppliers not based in the EU

If the JIS/JIT 2-stage delivery standard is being used, the MAN Nutzfahrzeuge Group integrates a service provider5. In this case, the MAN Nutzfahrzeuge Group is responsible for paying the duty before the goods are stored by the service provider. Delivery takes place using the incoterm “DDU service provider”, if the supplier is located outside the the MAN Nutzfahrzeuge Group freight forwarding network for the area. If it is located within

2 Note: The explanations in this section relate exclusively to deliveries of goods that originate outside of the EU. This does not necessarily mean that the supplier will have a registered office outside the EU.

3 According to law, no activities that add value (e.g. pre-assembly, painting etc.) may be undertaken at the bonded warehouse. In this case an additional service provider must be integrated by the MAN Nutzfahrzeuge Group (see section “Non-EU delivery using JIS/JIT 2-stage process”). For details of the bonded warehouse procedure, see articles 84 and 98 of the EU customs code and article 496 of the custom code implementing order.

4 See articles 37-57 of the EU customs code.

5 Reasons could include, for example: The supplier or commissioned service provider operates the contract warehouse in the EU as a bonded warehouse, and the range of services stipulated by MAN includes activities that add value. (2) The supplier or commissioned service provider is unable to provide the range of services stipulated by MAN.

Supplier MAN

Overseas /Interurban transport Supplier

Contract warehouse **

( bonded warehouse ) Production / Assembly

Trailer yard / Trailer dock/

Footprint Provision according to

the pull principle HGV

transport

Non - EU EU

* LSP: Logistics service provider, commissioned by MAN ** Service provider commissioned by supplier/supplier's transshi pment warehouse

Responsibility for inventory lies with supplier Payment of duty, i.e. transferring goods allowing them to ent er free circulation

* LSP: Logistics service provider, commissioned by MAN ** Service provider commissioned by supplier/supplier's transshi pment warehouse

Responsibility for inventory lies with supplier Payment of duty, i.e. transferring goods allowing them to ent er free circulation

JIS/JIT contract

warehouse

JIS/JIT 2 - stage


Overseas /Interurban transport

Supplier (in conj. with contract warehouse, if applicable)


Footprint LSP* Provision according to


transport Production / Assembly

Overseas /Interurban transport

Supplier (in conj. with contract warehouse, if applicable)


Footprint LSP* Provision according to


transport

M 3399: 2008-10

the MAN Nutzfahrzeuge Group freight forwarding network for the area, delivery takes place using the incoterm “FCA supplier plant” (see Figure 11).

In order for the MAN Nutzfahrzeuge Group to be able to pay the duty (arrange for the duty to be paid), the supplier shall send all the documents required for customs clearance (invoice and documents of origin e.g. EUR.1, ZU, Form A, A.TR, etc.) to the MAN Nutzfahrzeuge Group in good time before the delivery arrives.

In the case of stock procurement, which follows the same procedure as described above (see section 3.7) or in the case of individual procurement with or without warehousing, Ship to Line (interurban deliveries only) or Vendor Managed Inventory (interurban deliveries only), the MAN Nutzfahrzeuge Group pays the duty as standard when the goods arrive at the recipient MAN plant.

In the case of stock procurement, individual procurement with or without warehousing and Vendor Managed Inventory, delivery takes place using the incoterm “FCA supplier plant”, provided that the supplier is located within the the MAN Nutzfahrzeuge Group freight forwarding network for the area. In this case, the MAN Nutzfahrzeuge Group is responsible for physically transporting the goods to the recipient MAN plant and, where cross-border transportation is involved, for the handling of goods in accordance with customs legislation by subjecting them to a special dispatch procedure (T1).

If the supplier is located outside the the MAN Nutzfahrzeuge Group freight forwarding network for the area, delivery takes place using the incoterm “DDU MAN plant”. In this case, the supplier is responsible for physically transporting the goods to the recipient MAN plant and, where cross-border transportation is involved, for the handling of goods in accordance with customs legislation by subjecting them to a special a dispatch procedure (T1).

In principle, the incoterm “DDU MAN plant” is always used within the context of the Ship to Line delivery standard.

6.4.2 Supplier is based in the EU

If the supplier fulfils this requirement, it shall be responsible for paying the duty on goods delivered from outside the EU, regardless of the delivery standard selected.

If the JIS/JIT contract warehouse delivery standard is being used (which also applies in the same way for stock procurement), the supplier shall be responsible for paying the duty on the goods before they are removed from the contract warehouse.

When determining which incoterm is to be used, a distinction is also made in the case of suppliers based in the EU on the basis of which of the supplier’s branches has a contract with the MAN Nutzfahrzeuge Group:

� There is a contract in place with the supplier’s branch that is based within the EU: Delivery takes place using the incoterm “FCA contract warehouse” (same as EU delivery).

� There is a contract in place with a supplier branch based outside of the EU: Delivery takes place using the incoterm “DDP6 contract warehouse” (same as EU delivery).

In both cases, the supplier is responsible for physically transporting the goods to the contract warehouse and for the handling of the goods in accordance with customs legislation by allowing them to enter free circulation. In principle, the supplier shall always be responsible for loading the goods to be shipped out of the contract warehouse.

The EU delivery regulations apply in the same way for all the other delivery standards. In all cases, the supplier based in the EU must provide the MAN Nutzfahrzeuge Group with a supplier declaration for goods with preferential origin in accordance with EU Regulation 1207/2001 or, in the case of goods without preferential origin, with a standard supplier declaration.

6 DDP – Delivered Duty Paid: The seller supplies the purchaser with goods released for import at a specified destination on the incoming means of transport without unloading. The seller bears all costs and inherent transport risks up to this point, including any that relate to the duty required to import goods into the destination country (see Incoterms 2000: ICC official rules for the interpretation of trade terms, p. 125).

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6.5 EDI communication within the context of the dis patch process

It is assumed that the supplier already has the facilities in place to support electronic data interchange (EDI). An alternative form of transmission is only permitted following consultation with the MAN Nutzfahrzeuge Group. Further information can be found in the MAN EDI starter pack , which can be downloaded from the MAN supplier portal.

6.5.1 Delivery papers via EDI

The delivery note (either VDA 49137 or EDIFACT DESADV) shall be sent via EDI to the recipient MAN plant in good time, and at the latest when the goods are dispatched. An EDI goods receipt/issue slip (VDA 4912) and a transport order (VDA 4922) must also be supplied in hard copy with the delivered goods. In the case of JIS/JIT deliveries, the EDI goods receipt/issue slip, the transport order and a chassis number-related loading list must be submitted with the delivered goods. Deliveries relating to pilot sample tests should be listed on a separate delivery note.

Delivery papers must be generated and HGVs loaded in relation to specific offloading points.

6.5.2 Billing via EDI

The VDA 4906 or EDIFACT INVOIC format should be used for the purpose of sending the invoice. If this invoice is transmitted without a fully valid electronic signature, a full written report must also be sent.

6.6 Quality of the delivery

In accordance with Shipping instruction M 3338 , the supplier is obliged to deliver clean and undamaged parts and containers. When goods are delivered, the MAN Nutzfahrzeuge Group shall carry out the following checks:

� Comparison of the transport order with the HGV load

� Visible damage

� Number and quality of containers

7 Process for empties

Each supplier plant is assigned to a unique MAN main supplier plant. All communications relating to container requirements should be addressed to the assigned MAN main supplier plant.

7.1 Container definition

The MAN Nutzfahrzeuge Group makes a distinction between the following containers:

� ULT – Universal load carriers

� KLT – Small load carriers (VDA: KLT system 4500. VDA-R-KLTs with the following features are preferred: “single wall” KLT construction, rigid, fill weight of up to 12 kg and compound base.

� SLT – Special load carriers

These containers and their technical data are defined and documented in the MAN Container Standard M 3301. Only these containers may be used for a delivery. The MAN Nutzfahrzeuge Group packaging regulations must be taken into consideration. These binding regulations are described in the Logistics Agreement and agreed with the supplier. The MAN Nutzfahrzeuge Group uses the Logistics Agreement to govern a range of factors, including binding packaging regulations for the following details: Item number + packing batch + container type + packaging material. (see section 6.1)

7 In the case of the call-off control, as described in Section 5.1.1.1 (JIS call-offs in the EDIFACT-DELJIT format) it is essential that the trailer ID issued by the MAN Nutzfahrzeuge Group, the trailer's vehicle licence number and the anticipated time of arrival are stated.

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7.2 Container financing and development

7.2.1 Universal load carriers and small load carrie rs

The MAN Nutzfahrzeuge Group handles the development, procurement and financing of universal load carriers and small load carriers. Sections 7.3 and 7.5 define the maximum number of containers that are available within the context of a supply relationship between the MAN Nutzfahrzeuge Group and a supplier and the uses to which these containers may be put.

7.2.2 Special load carriers

The supplier is responsible for the development, financing and procurement of special load carriers. The MAN Nutzfahrzeuge Group uses the MAN Container Standard M3301 as a means of providing the supplier with the technical specifications (e.g. fire prevention requirements, transport requirements and technical production requirements) and quality requirements for the container material and design. Each new special load carrier and any change to a special load carrier must be agreed with and approved by the MAN Nutzfahrzeuge Group.

The supplier shall bear the development costs. The necessary investment and associated depreciation, as well as the maintenance, cleaning and repair of the special load carriers, shall be agreed in writing in accordance with an approved refinancing concept. The precise form of the contract for financing special load carriers shall be determined on a case-by-case basis on conclusion of the contract. Any related costs shall be passed on in accordance with the applicable agreements in place between the MAN Nutzfahrzeuge Group and the supplier. In all cases, details of the relevant calculation must be provided. This calculation must include a jointly defined container quantity plan, based on range and requirements. The regulations defined in sections 7.3 and 7.5 also apply. The supplier is responsible for obtaining the containers punctually, three weeks in advance of the production programme.

7.2.3 Packaging material

Disposable packaging used as protection for parts shall, without exception, be developed and paid for by the supplier. Universal load carriers with special reusable inserts are classed as special load carriers. In general, the development and financing of these universal load carriers with special inserts is therefore the supplier’s responsibility – the precise form of the contract shall always be worked out on a case-by-case basis.

7.3 Container use and quality

The following rules apply:

� Containers are only to be used for the product ordered by the MAN Nutzfahrzeuge Group

� Containers are to be used exclusively for the warehousing and transport stages that are defined in the range model (from the last loading edge of the plant producing the goods).

� Containers are not to be used for the procurement and warehousing of raw materials, individual parts, semi-finished parts, etc.

� The use of containers for pre-production is not permitted in principle; deviations must be expressly approved in writing by the MAN Nutzfahrzeuge Group (MAN item number, container type, number of containers, duration of the approved deviation). Sub-contractors must not be provided with containers financed directly or indirectly by the MAN Nutzfahrzeuge Group.

As far as container quality is concerned, the regulations set out in the MAN Container Standard also apply.

7.4 Call-off of empties from the MAN Nutzfahrzeuge Group

The supplier itself is responsible for calling off empty containers in good time from their assigned MAN main supplier plant. The empties must be called off in accordance with the empty container management process as per VDA 5007. Suppliers shall call off the empty containers in advance using the MAN Nutzfahrzeuge Group’s Internet-based container management system.

M 3399 : 2008-10

Figure 13: Online order form for empty containers

Empty containers must be called off in accordance with the following ordering deadlines.

*) Working days = Monday – Friday, apart from public holidays in the country/federal state of the main supplier plant

At least 8 working days* before the delivery date for full containers at the MAN Nutzfahrzeuge Group

Not in the country of the main supplier plant, and not in Germany or Austria


In the country of the main supplier plant


In Germany or Austria

Empty container call-off notice periodSupplier's location, where the container is required (last loading edge)

*) Working days = Monday – Friday, apart from public holidays in the country/federal state of the main supplier plant


Not in the country of the main supplier plant, and not in Germany or Austria


In the country of the main supplier plant


In Germany or Austria

Empty container call-off notice periodSupplier's location, where the container is required (last loading edge)

Table 3: Location/deadline for calling off empty co ntainers

7.5 Empty container call-off quantity

The supplier defines the number of applicable empty containers to be called off each working day. However, this quantity must not exceed a specified maximum stock value within the container cycle.

7.5.1 Calculating the maximum stock value for empty containers within the container cycle

The maximum stock value for empty containers within the container cycle shall be calculated on the following basis:

Maximum stock ofempty containers in

container cycle

Container requirement per working day

[container/working day]

Container stock range in container cycle[working days]

*=Maximum stock of

empty containers in container cycle




*=Maximum stock of

empty containers in container cycle




*=

7.5.2 Calculating container requirements for each w orking day

The container requirement specifies the quantity of containers required per working day to be able to produce the agreed production batch for the MAN Nutzfahrzeuge Group. The applicable container requirement is calculated using the following formula:

M 3399: 2008-10


Packing batch[units/container]

Material requirement[units/working day] /=







As the quantity of containers required depends on the supplier's production programme, the level of the container requirement may fluctuate.

7.5.3 Calculating the container stock range within the container cycle

The Logistics Agreement specifies the maximum container stock range within the container cycle for each supply relationship that exists between the MAN Nutzfahrzeuge Group and the supplier.

The container stock range is specified in working days and covers the circulation time between the supplier and the MAN Nutzfahrzeuge Group. The agreed container stock range within the container cycle does not allow for supplying sub-contractors with containers belonging to the MAN Nutzfahrzeuge Group. The stock range is defined in the Logistics Agreement and includes the container stock range of finished supplier goods, a buffer of empty containers at the supplier’s site, and the transport ranges for deliveries of full and empty containers (see Figure 14). The internal container range at the MAN plants is not taken into consideration in the Logistics Agreement .

Part of the containerstock range at thesupplier

Not part of the con-tainer stock rangeat the supplier

Key

MAN PlantContainer stock range

for MAN plant

Transport range for fullcontainers

Transport range forempty containers

Supplier� Container stock range for

finished goods� Container stock range for

buffer of empty containers

Sub-supplier

Container stock rangefor sub-supplier



Key



Key

MAN PlantContainer stock range

for MAN plant

Transport range for fullcontainers

Transport range forempty containers

Supplier� Container stock range for

finished goods� Container stock range for

buffer of empty containers

Sub-supplier

Container stock rangefor sub-supplier

Figure 14: Container stock range

The overall container stock range for each supply relationship is calculated as follows:

Supplier's containerstock range

2 * Transport range (full and empty containers)

[working days]+=

Container stock range of finished goods at the

supplier’s site[working days]

+

Container stock range for the supplier’s empty container

buffer[working days]

Supplier's containerstock range


[working days]+=



+Supplier's containerstock range


[working days]+=



+





7.5.3.1 Transport range for full and empty containe rs The transport ranges for full and empty containers are defined in the Logistics Agreement.

7.5.3.2 Container stock range for the supplier’s em pty container buffer Each supplier must agree a delivery frequency for empty container deliveries with the relevant MAN main supplier plant. To guarantee an optimum supply of empty containers, even when the delivery frequency is low, the container stock range within the container cycle includes a buffer of empty containers. The level of this buffer of empty containers in the container stock range depends directly on the frequency of the empty container deliveries (see Table 4).

20 working daysMonthly

15 working days3 weekly

10 working daysFortnightly

5 working daysWeekly

4 working days2 times/week



1 working dayDaily

Container stock range for empty container buffer at the supplier

Delivery intervals of the empty container deliveries

20 working daysMonthly

15 working days3 weekly

10 working daysFortnightly

5 working daysWeekly




1 working dayDaily

Container stock range for empty container buffer at the supplier

Delivery intervals of the empty container deliveries

Table 4: Container stock range in the buffer of emp ty containers

M 3399 : 2008-10

7.5.3.3 Container stock range of finished goods at the supplier’s site This container stock range defines the range for those containers at the supplier’s site which are required to store the safety stock and the finished goods ready for dispatch to the MAN Nutzfahrzeuge Group. The container stock range for finished goods at the supplier’s site generally amounts to 3 working days. Any deviations from this shall be agreed in the Logistics Agreement .

7.5.3.4 Calculating the container stock range for s pecial load carriers within the container cycle It is the supplier’s responsibility to define the container stock range for special load carriers, as well as the associated container quantities to be obtained.

To enable suppliers to make calculations, the relevant the MAN Nutzfahrzeuge Group specialist departments will provide them with the necessary information about those components of the container cycle for which the MAN Nutzfahrzeuge Group is responsible. This applies to the following components:

� Transport time of loaded/empty containers

� Period of time during which the containers remain at the recipient MAN plants

� Period of time during which the containers remain with service providers commissioned by the MAN Nutzfahrzeuge Group (e.g. for sequencing)

All other components of the container cycle (period of time during which the containers remain with the supplier etc.) should be planned by the supplier alone, who shall provide the relevant details.

7.6 Supply security (under and oversupplying)

In order to optimise transport costs the MAN Nutzfahrzeuge Group is allowed to oversupply the supplier. In all cases, the supplier must provide adequate storage space for empty containers. Should the range be undershot, suppliers are permitted to remove defined containers from their own stocks and integrate them into the delivery cycle. If the MAN Nutzfahrzeuge Group is unable to provide a series production container in the short term, the supplier must agree on a deviation from the standard process and, where applicable, agree any associated costs together with the contacts at the main supplier plant, and obtain written approval of this (e.g. definition of an alternative container for ULTs).

7.7 Container account statement/container inventory

The MAN Nutzfahrzeuge Group shall send a container account statement containing details of the stock and movement data for the previous month via its container management system (MN-CM) by the 2nd working day of each month. The supplier must direct any complaints to the MAN Nutzfahrzeuge Group via the MN-CM within 2 weeks and by the 15th of the calendar month. If the MAN Nutzfahrzeuge Group has not received any complaints via the MN-CM by this date, the stock levels in the statement shall be deemed binding and to have been accepted by the supplier. The MAN Nutzfahrzeuge Group shall process any justified complaints by the end of the relevant month.

If any stock discrepancies relating to MAN’s containers are identified on the basis of the issued container account statement within the context of complaints processing, the MAN Nutzfahrzeuge Group reserves the right to invoice suppliers for these.

The supplier and the MAN Nutzfahrzeuge Group shall carry out a joint stocktaking exercise in respect of the containers annually on a set date. On this set date, the supplier is obliged to count all the containers owned by the MAN Nutzfahrzeuge Group. All the costs associated with the supplier’s involvement in the stocktaking exercise shall be borne by the supplier at no expense to the MAN Nutzfahrzeuge Group. The MAN Nutzfahrzeuge Group shall provide information well in advance concerning the stocktaking date and procedure.

If suppliers do not register their stock levels by the specified date, the stock levels from the statement following stocktaking shall be deemed binding and to have been accepted by the supplier. The MAN Nutzfahrzeuge Group reserves the right to check the quantity of containers on site at any time, without giving prior notice. This check shall be carried out at the supplier’s expense on the basis of the time spent, or shall be assigned to an external service provider who shall pass the associated costs on to the supplier. If any stock discrepancies are identified, the situation shall be reviewed and a decision taken concerning whether any costs need to be covered, or whether any containers need to be provided or returned.

M 3399: 2008-10

8 Logistical evaluation

8.1 Supplier evaluation

The MAN Nutzfahrzeuge Group shall carry out a logistical evaluation of its suppliers every quarter. As part of this process, indicators from the Purchasing, Quality, Technical and Logistics departments shall be identified and incorporated into an overall evaluation.

Accessibility

10%

EDI connection

Quality factors

Purchasing factors

Technical factors

Logistical supply quality

Qualityranking 15%25%15%

Supplier factors

Logisticsfactors

„hard facts“ 85% share „soft facts“15% share

Supply quality(target corridor) 45%

Logistics factors with weighting

Correct fill quantity

50%

Correct packaging

50%

Correct, com

plete delivery papers (e.g. conform

ance w

ith container quantity supplied)

40%

Com

plete ED

I advice40%

VD

A conform

ing labeling

20%

Adhering to agreed

actions25%

Flexibility on short term

requirem

ents25%

Proactive behavior for

delivery problems

40%

Adhering to agreed

actions40%


delivery problems due to

container supplies20%

Flexibility on packaging

changes40%

Willingness to cooperate30%

Reliable delivery

30%

Proactive behavior

40%

Disposition

evaluation50%

Logistics planning

20%

Material

managem

ent evaluation

30%

Information

supply quality50%

Physical

supply quality50%

Invoice ED

I33,3%

Delivery note E

DI

33,3%

Call-off E

DI

33,3%

Missing parts/ sequence

infringements

35%

Level of fulfillment on V

MI

parts30%

Arrears, m

aintaining the corridor

25%

Over delivery, m


10%

Accessibility

10%A

ccessibility10%

EDI connection

Quality factors

Purchasing factors

Technical factors

Logistical supply quality

Qualityranking 15%

Qualityranking 15%25%15%

Supplier factors

Logisticsfactors

„hard facts“ 85% share „soft facts“15% share

Supply quality(target corridor) 45%

Logistics factors with weighting

Correct fill quantity

50%C

orrect fill quantity50%

Correct packaging

50%C

orrect packaging50%

Correct, com

plete delivery papers (e.g. conform

ance w

ith container quantity supplied)

40%

Com

plete ED

I advice40%

Com

plete ED

I advice40%

VD

A conform

ing labeling

20%V

DA

conforming

labeling20%

Adhering to agreed

actions25%

Adhering to agreed

actions25%


requirem

ents25%


requirem

ents25%


delivery problems

40%P

roactive behavior for delivery problem

s40%

Adhering to agreed

actions40%

Adhering to agreed

actions40%








changes40%


changes40%



Reliable delivery

30%R

eliable delivery30%

Proactive behavior

40%P

roactive behavior40%

Disposition

evaluation50%

Logistics planning

20%

Material

managem

ent evaluation

30%

Disposition

evaluation50%

Logistics planning

20%

Material

managem

ent evaluation

30%

Disposition

evaluation50%

Disposition

evaluation50%

Logistics planning

20%Logistics planning

20%

Material

managem

ent evaluation

30%M

aterial m

anagement

evaluation

30%

Information

supply quality50%

Physical

supply quality50%

Information

supply quality50%

Information

supply quality50%

Physical

supply quality50%

Physical

supply quality50%

Invoice ED

I33,3%

Invoice ED

I33,3%

Delivery note E

DI

33,3%D

elivery note ED

I33,3%

Call-off E

DI

33,3%C

all-off ED

I33,3%

Missing parts/ sequence

infringements

35%M

issing parts/ sequence infringem

ents35%


MI

parts30%


MI

parts30%

Arrears, m


25%A

rrears, maintaining the

corridor25%

Over delivery, m


10%O

ver delivery, maintaining the

corridor10%

Figure 15: Performance indicators for the logistica l supplier evaluation

On the highest level of the logistical indicator system, four performance indicators are identified for each supplier (see Figure 15). These are the supply quality, the EDI connection, the logistical delivery quality and a quality ranking based on a subjective evaluation by employees of the MAN Nutzfahrzeuge Group. The evaluation of these four indicators results in an overall view of the supplier’s logistical capability.

8.2 Freight forwarder evaluation

As a general rule, the deliveries called off by MAN shall be transported from the supplier plant to the recipient MAN plant by a MAN Nutzfahrzeuge Group area freight forwarder. As the freight forwarder is the link between the supplier's dispatch department and MAN's receiving department, the supplier is also required to do everything in its power to ensure excellent freight forwarder performance. This is evaluated continuously along with the supplier’s logistical performance.

The MAN Nutzfahrzeuge Group shall evaluate the performance of the area freight forwarder and the forwarders for special suppliers every quarter. As part of this process, the central departments of Transportation Logistics, Freight Purchasing and Invoice Checking, as well as the Receiving, Empties Dispatch and Material Management departments shall evaluate both the area freight forwarder and the forwarders for special suppliers for each MAN plant. The evaluation shall be carried out at least once every quarter. The results of the evaluation shall be used for a number of purposes, including negotiations with the area freight forwarder and the forwarders for special suppliers.

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The area freight forwarder and forwarders for special suppliers shall be evaluated on the basis of 19 criteria, which can be split into three categories: quality of the transport service, quality of accounting and service & flexibility (see Figure 16). Brand loyalty is looked at separately and constitutes the 20th criterion.

20 criteria

Quality of thetransport service

Quality of accounting

Service &

flexibilitySorting effortSorting effort

Running timeRunning time

Transport damageTransport damage

Complete deliveryComplete delivery

Loading papersLoading papers

Time frameTime frame

Use of mega trailersUse of mega trailers

Reliability of handling empty containers


Quality of loading list (EDI)Quality of loading list (EDI)

Quality of loading list (specific)Quality of loading list (specific)

Quality of invoice (EDI)Quality of invoice (EDI)

Quality of invoice (specific)Quality of invoice (specific)

Drivers: Change frequencyDrivers: Change frequency

Contacts: accessibilityContacts: accessibility

Contacts: information qualityContacts: information quality

Contacts: information behaviour/ collaboration


Drivers: appearance/ communication


Contacts: Flexibility on altering circumstances


Capability for special consignments


Brand loyaltyBrand loyalty

20 criteria

Quality of thetransport service

Quality of accounting

Service &

flexibilitySorting effortSorting effort

Running timeRunning time

Transport damageTransport damage

Complete deliveryComplete delivery

Loading papersLoading papers

Time frameTime frame

Use of mega trailersUse of mega trailers



Quality of loading list (EDI)Quality of loading list (EDI)

Quality of loading list (specific)Quality of loading list (specific)

Quality of invoice (EDI)Quality of invoice (EDI)

Quality of invoice (specific)Quality of invoice (specific)

Drivers: Change frequencyDrivers: Change frequency

Contacts: accessibilityContacts: accessibility

Contacts: information qualityContacts: information quality









Brand loyaltyBrand loyalty

Figure 16: Criteria for freight forwarder evaluatio n

9 Breach of contractual obligations

The MAN Nutzfahrzeuge Group views the following as a failure to perform the contract:

� Over-delivery: The quantity delivered exceeds the quantity called off/ordered.

� Under-delivery: The quantity delivered falls short of the quantity called off/ordered.

� Excess delivery: The quantity delivered exceeds the quantity specified on the delivery note.

� Short delivery: The quantity delivered falls short of the quantity specified on the delivery note.

� Early delivery: Delivery takes place before the time specified in the call-off/order.

� Late delivery: Delivery takes place after the time specified in the call-off/order.

� Wrong delivery: The item delivered is different from the one ordered (wrong item), the item is delivered to or unloaded at the wrong location, or no order exists for the item concerned.

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� Quality defect: The delivery does not meet the agreed quality requirements/the general quality requirements of the MAN Nutzfahrzeuge Group.

� Delivery of damaged containers: The containers are damaged or polluted.

� Use of unspecified containers: For reasons attributable to the supplier, delivery is made in containers that are different from the ones agreed with the MAN Nutzfahrzeuge Group.

The regulations in the General Purchasing Conditions for Production Materi al and Spare Parts for Commercial Vehicles shall apply to any claims in respect of inadequate delivery. In addition, both parties agree to the following regulations in the event of a failure to perform the contract as described above.

9.1 Damaged and missing parts process

It may be impossible to use a particular part at the scheduled time (e.g. within the context of production, sequencing, preliminary grouping, assembly) if it is damaged or missing on the scheduled delivery date; such parts are therefore classed as “missing parts”. If a missing part is anticipated due to under-delivery, short delivery, late delivery or wrong delivery, or due to a quality defect, the following steps shall be taken:

1. The recipient MAN plant shall notify the supplier in advance, either verbally or in writing.

2. The recipient MAN plant shall decide, depending on the supply situation, whether or not a special consignment (see section 6.3.1 or 6.3.2) is necessary to redeliver the missing parts. The costs associated with this consignment shall be borne by the party responsible.

3. In the event of quality defects and damage, the recipient MAN plant shall carry out a check, in conjunction with the supplier, to determine whether the goods can be used following rework or whether they need to be scrapped or returned.

In this case, the MAN Nutzfahrzeuge Group reserves the right to conduct price reductions. Process details and the maximum permissible time for replacement of the part (i.e. the maximum time span that the supplier has in which to carry out a replacement delivery) are specified in the Logistics Agreement .

9.2 Delay

If the supplier fails to perform its duties in accordance with the Logistics Norm and the Logistics Agreement , on time, or as agreed; and particularly, but not exclusively, in the case of any resulting supply breakdowns, the MAN Nutzfahrzeuge Group shall be entitled to hold the supplier liable for any consequential costs incurred. Reasons for this could include: Under-delivery, short delivery, late delivery or wrong delivery, a quality defect, or a delivery in unspecified or damaged containers. In the case of missing parts, consequential costs shall include the assembly and handling costs required for retrofitting (assessed on a time and material basis) as well as costs associated with shifts in sequences (suspension of orders within the model mix) and shall be covered by a lump-sum of €500 per vehicle or, in the case of a customer backlog (when a customer order for spare parts cannot be filled), €500 per vehicle per day. This takes into account all the necessary activities involved in resorting deliveries that are meant to be supplied in exact sequence and any claims for damages relating to spare parts that are submitted as a result of customer vehicle downtime. In addition, flat-rate processing charges shall apply to cover the administrative expenses involved. In the case of sequence infringements, these shall amount to €200 for each item number and for each part which is not arranged in the correct order. In the case of missing parts, the same flat rate of €200 shall apply for each item number and for each missing part. If a scheduled customer delivery date has to be postponed due to a supply bottleneck, the MAN Nutzfahrzeuge Group reserves the right to demand that the supplier pay the costs incurred.

The MAN Nutzfahrzeuge Group also reserves the right to assert a higher claim for damages, if a higher level of damage can be proven in individual cases.

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9.3 Returning/ sending back parts

In the case of over-delivery, excess delivery, early delivery or wrong delivery, a quality defect, or delivery in unspecified or damaged containers, the MAN Nutzfahrzeuge Group reserves the right to return the delivered parts to the supplier. The parts shall be sent back immediately on a carriage forward basis and the supplier invoiced for the costs. Where applicable, any deviations from this shall be specified in the Logistics Agreement : (e.g. direct scrapping or self-collection)

9.4 Repackaging

If the supplier fails to deliver the agreed packing batch, if the agreed containers are not used for reasons attributable to the supplier or if a damaged container is delivered, the MAN Nutzfahrzeuge Group reserves the right to charge the supplier for the any costs and additional expenses incurred (repackaging, additional handling, disposal etc.).

9.5 Repair/ replacement of damaged containers

If the supplier damages containers belonging to the MAN Nutzfahrzeuge Group or puts them into circulation, it shall be liable for the repair or replacement costs. Damaged containers belonging to the supplier shall be rejected by the MAN Nutzfahrzeuge Group upon their arrival. If the supplier receives damaged empty containers from the MAN Nutzfahrzeuge Group, the MAN Nutzfahrzeuge Group must be informed immediately, otherwise it shall be assumed that the supplier caused the damage. The regulations set out in the MAN Container Standard shall also apply to container quality (sections 6.1 and 6.6).

9.6 Clarification of responsibility

If the MAN Nutzfahrzeuge Group establishes that a delivery carried out by an area freight forwarder is short, early, late or wrong, that the delivery involves a quality defect or has been made using damaged containers, the MAN Nutzfahrzeuge Group shall clarify whether it is the supplier or the freight forwarder that has failed to comply with the contractual terms and is therefore liable for the costs incurred. Therefore, the freight forwarder’s driver shall check that the number of containers provided matches the number specified on the delivery note and check for visible damage on the containers when they collect the goods from the supplier. They shall confirm with the supplier that the delivery has been correctly handed over in its entirety on the basis of a transfer note.

If a container is found to deviate from the target quantities specified by the supplier, the supplier shall be held responsible. The MAN Nutzfahrzeuge Group shall debit or credit the supplier for the discrepancy accordingly.

In the case of “free domicile” delivery, the supplier shall bear sole responsibility for any defective deliveries.

MAN Standard 239 “General Supply Conditions for Pur chased Parts” shall apply.

10 Deviations from the agreed process

10.1 Amendments

10.1.1 New parts and index changes

Within four weeks of signing the framework contract relating to a new part, or instruction to carry out a technical change, a schedule for the delivery of the pilot sample and of the mass-produced parts (provided the pilot sample is approved) must be submitted to the MAN Nutzfahrzeuge Group. If the delivery date for the pilot sample cannot be adhered to, the MRP/Material Management department of the appropriate MAN plant must be notified in writing immediately, stating the new delivery date.

In the case of index changes, the relevant Material Planner/Material Manager must be notified in writing of the first delivery relating to a new index version.

The use of new parts or technically modified parts shall only be permitted if agreed with the MRP/Material Management department. The introduction and discontinuation of the parts is generally controlled on a project-

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specific basis by the employees responsible for pre-production rather than the production support department. If no agreement has been reached, it must be ensured that a supply of previous parts is available. Technical changes may only be integrated into production equipment once the necessary advance production has been jointly agreed.

Advance production must cover the time needed to change the production equipment and approve the pilot sample, and must also include contingency time for programme changes or delays in the change procedure. The results of this coordination process must be recorded in writing and confirmed by both parties.

10.1.2 Changing containers

A proposal to change a container may be originated by the supplier or by the MAN Nutzfahrzeuge Group. This proposal must be submitted to the central container management department (see Contact details in section 11.4). The change shall be evaluated and the relevant decision made with the agreement of everyone involved (the parties requiring the containers); these processes shall be coordinated by the central container management department. The change procedure is as follows:

1. Submission of a change proposal to the central container management department. This proposal must contain the following information

� Old container and new container

� Old packing batch and new packing batch

� Economic feasibility study

2. The change is evaluated and approved internally at the MAN Nutzfahrzeuge Group and nowhere else

3. Information is forwarded to the supplier providing details of the agreed changeover date, the delivery standard and the container requirements to be agreed

4. The supplier sends written confirmation to the central container management department

As a basic principle, the supplier must be in a position to implement container changes, without extra cost, within 2 weeks of notice being given by the relevant department. From this date onwards, the supplier shall only send material in the new containers.

10.1.3 Supplier changes

The supplier must notify the MAN Nutzfahrzeuge Group in good time of any imminent changes. This affects:

� Transfer of production sites

� Organisational and IT system changes

� Changes in terms of manufacturing penetration

� Ways and methods of transmitting information

� Changes in dispatch handling

� Changes in contacts

� Changes in production and non-production days

In particular, the details of any production transfer must be agreed in good time (i.e. at least 6 months prior to the transfer) with the MAN Purchasing, Quality Assurance and MRP/Material Management departments. This shall be achieved within the context of a joint transfer discussion, coordinated by MAN Purchasing.

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For the purpose of carrying out the transfer, a detailed flow chart and action plan must be developed and agreed with the MAN Nutzfahrzeuge Group. Adequate time must be allowed for advance production, auditing of the new production location and pilot sampling. Changes in logistics, for example with respect to the delivery standard (see section 3), packing batch or container type, always require approval.

10.2 Faults

10.2.1 Maintenance and repair of production equipme nt

If production equipment needs to be removed from the mass production process for maintenance or repair, this must be agreed in advance with the relevant Material Planner/Material Manager. This applies in particular to bottleneck areas where supply breakdowns can occur very quickly if call-off quantities increase.

If a the MAN Nutzfahrzeuge Group-owned tool is reaching the end of its service life, the Purchasing department must be notified in good time so that a new item of production equipment can be ordered, if required.

10.2.2 Interruptions to operation

The supplier must inform the MAN Nutzfahrzeuge Group at least two months in advance of any planned interruptions to operation. If the shutdown is to last for several days, the necessary advance production must be agreed with the relevant Material Planner/Material Manager, if required. The supplier must still ensure that material is delivered to the MAN Nutzfahrzeuge Group on the dates specified in the call-off, even in the case of interruptions to operation. Over-deliveries shall not be permitted without the prior agreement of the Material Planner/Material Manager. It must still be possible to get in touch with the relevant contacts, even during the shutdown period.

11 Appendix

11.1 Plant-specific additions

11.1.1 Nuremberg plant

Concerning Section 3.7 Stock procurement

After each freezing process, the Nuremberg Plant shall check whether the material requirements for the picked engines can be covered by the stock levels. For materials where this is not the case, the MAN Nutzfahrzeuge Group shall issue a reminder via fax or e-mail. This shall advise the supplier of the latest date for delivery to the MAN Nutzfahrzeuge Group, in order to avoid a supply breakdown on the assembly line. As far as the materials specified in the fax/e-mail are concerned, the MAN Nutzfahrzeuge Group expects confirmation of the anticipated delivery dates before the end of the day. These faxes/e-mails can be used to monitor delivery dates. However, it is always the current delivery call-off that is definitive as far as delivery is concerned.

Concerning Section 6.1 Containers/Packing batch

Only Euro box pallets, Euro palettes 800 x 1200 mm and KLT containers can be accepted at the Nuremberg Plant.

Concerning Section 6.6 Quality of delivery

Parts prone to rusting must be protected against the elements when being delivered to the Nuremberg Plant, as unloading takes place outside.

11.1.2 Spare parts location Dachau

Concerning Section 7.1 Container definition

The Dachau location has to use container 6428 (see Container Manual ), as it uses an automatic small parts warehouse.

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11.2 Notes on issuing quotes

1. From an IT perspective, the MAN Nutzfahrzeuge Group is unable to implement its full range of services as stated in the Logistics Norm and the Logistics Agreement at all its plants. This shall be taken into consideration by the employee at each recipient plant that is responsible for generating the individual Logistics Agreement .

2. The supplier must indicate how the logistics costs have been calculated based on the Logistics Norm and the Logistics Agreement .

11.3 Other applicable documents

The following documents also apply in addition to the Logistics Norm and are binding:

� General Supply Conditions for Purchased Parts (Standard Series MAN 239-1 ff.)

� Purchase conditions for production materials and spare parts for commercial vehicles

� Shipping Instruction for Deliveries to the MAN Nutzfahrzeuge Group

� MAN Container Standard M3301

� Container Manual

� Aftersales and spare part packing guidelines

� MAN EDI starter pack

� Packing guidelines

If further documents and/or items of information are also relevant, they shall be specified in the Logistics Agreement .

11.4 Contacts

The relevant contacts at the MAN Nutzfahrzeuge Group shall be indicated, together with the appropriate contact information, in the Logistics Agreement .

Standards quoted

M 3301 Containers

M 3338 Packaging guidelines

MAN 239-1 ff. General supply conditions for purchased parts, all parts

VDA 4902 Goods tag (barcode capable)/Attention: Basic document including supplementation by other data entries

VDA 4905 Electronic transmission of delivery call-offs

VDA 4906 Electronic billing

VDA 4912 Electronic consignment note

VDA 4913 Electronic delivery note and transport data

VDA 4915 Electronic fine call-offs

VDA 4916 Electronic production synchronized call-offs (PAB)

VDA 4922 Form for goods dispatch between supplier, freight forwarder and customer - freight forwarding order

VDA 5007 Container standardization team - container management guidelines

M 3399 : 2008-10

Previous issues: M 3399 / 2007-11, 2008-06, 2008-07

Changes : Compared to issue 2007-11 the following changes have been made:

- Chapter 3.1: Additional regulation for the authority in the JIS/JIT standard procedure.

- Chapter 3.2: Addition of the option for the supplier to use a service provider, specification of the accounting process.

- Chapter 3.3: Clarification of the standard with respect to call-off, transport and fine disposition. Removal of Figure 3.

- Chapter 3.8: Defining the cases of overseas delivery via JIS/JIT contract warehouse and JIS/JIT 2-stage. Insertion of Figure 3 “Overseas delivery via JIS/JIT 2-stage”.

- Chapter 5.1.1: Addition of call-off transfer in the standard delivery concept JIS/JIT contract warehouse.

- Chapter 5.1.2: Specification of recipients

Compared to issue 2008-06 the following changes have been made:

- Section 1.1, p. 3: Figure 1 added - Section 3, p. 5: Figure 2 and Figure 3 updated - Section 3.3, p. 6: Figure 4 added. - Section 7.1, p. 22: Maximum fill weight corrected from 20 kg to 12 kg - Section 7.4/ 7.5, p. 23: Completely revised - Section 8.1, p. 27: Definition of the MAN Standard - Explanation for

deviating Options

- Section 10.1, p. 29: Consequential costs adjusted

Compared to issue 2008-07 the following changes have been made:

- Section 3.1, p. 5: Additions made to Delivery from overseas section

- Section 3.2, p. 6: Additions made to Delivery from NON-EU countries section

- Section 3.3, p. 6: Additions made to Delivery from NON-EU countries section

- Section 3.4, p.7 Additions made to Delivery from overseas section

- Section 5.1, p. 11: Structure of sections changed

- Section 6.2, p. 17: Definition of label data fields also required for JIS delivery.

- Section 6.3, p. 17: Complete revision of transport commissioning diagram.

- Section 6.4, p. 21: Integration of new section into the Logistics Norm

- Section 6.5, p. 22: Section completely revised and new bullet points created

- Section 7.4, p. 24: Revision of “Location/deadline for calling off empty containers” table

- Section 7.5, p. 25: Adaptations within whole section, including integration of how to calculate the container stock range for special load carriers

- Section 9, p. 29: Reformulation and merging of the former section: “Damaged and missing parts process” as well as “Breach of contractual obligations”

- Section 11.3, p. 34: A number of other applicable documents added

Man Logistics Standard MN V3-0 Englisch

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