Manual for Genuine Parts Suppliers 121409m

Manual for Genuine Parts Suppliers
A Practical Guide
Updated: 12/11/09
0
Contents
Introduction .............................................................................................................2
Principles of Collaboration.......................................................................................3
VWGoA Parts Logistics Contacts ............................................................................5
Supplier Relations ...................................................................................................7
Quality Assurance ..................................................................................................8
Goods Receipts Audits............................................................................................9
Launch Management ..............................................................................................9
Forecast Delivery ....................................................................................................10
Factory-Reconditioned Parts and Units (Exchange Process)..................................11
Quality Requirements and Approval of Remanufactured Materials .........................13
Logistical Requirements for Reconditioned Materials..............................................14
Continued Use of Tools and Equipment .................................................................15
The Supplier Report ...............................................................................................17
Logistics Appraisal ..................................................................................................18
Hazardous Materials ...............................................................................................19
Supplier Packaging .................................................................................................22
Delivery Conditions .................................................................................................23
General Packaging Requirements ..........................................................................24
Printing & Labeling ..................................................................................................44
Package Testing .....................................................................................................52
Unloading Points .....................................................................................................64
Minimum Shelf Life for Genuine Parts.....................................................................64
Special Logistics Processes ....................................................................................65
Drop Shipments .....................................................................................................65
Demand-Driven Order Process (DD Process) ........................................................65
Direct Shipments ....................................................................................................65
Process Support by EDI .........................................................................................66
EDI Standards in the Volkswagen Group ................................................................66
EDI Transactions.....................................................................................................66
The EDI Delivery Note (Shipping Notification) ........................................................67
Subsequent Calculation of Process Costs ..............................................................67
Updated: 12/11/09
1
Introduction
The purpose of this supplier guide is to outline the general principles, expectations and
administrative and technical requirements of all suppliers of product and services to
Volkswagen Group of America, Inc. (VWGoA). The terms and conditions may contain
additional stipulations, or may take precedence over any general guidelines contained
in this manual.
The primary objective of this guideline is to ensure the highest possible customer
satisfaction, while focusing on the most efficient and cost effective business practices
throughout the supply chain.
The structure of this “Manual for Genuine Parts Suppliers” is based on processes. The
information it contains is intended to support you in your day-to-day work, as well as
serving as a helpful reference work. Whether you have questions on planning or
handling of the spare parts process or are simply looking for a certain contact, you’re
sure to find an answer to your questions fast using this manual.
The Manual for Genuine Parts Suppliers is available both in printed form and also
electronically on our B2B platform on the internet at www.vwgroupsupply.com.
We hope you enjoy using our Manual for Genuine Parts Suppliers!
Updated: 12/11/09
2
Principles of Collaboration
The following standards for successful collaboration with a supplier have also been
stipulated by VWGoA Parts Logistics:
1. Proactive communication by both parties in the case of:
•
deviations from delivery dates and quantities
•
technical modifications
•
production relocations
•
sales promotions/warranty promotions
•
any process faults occurring (e.g. errors in remote data transfer)
•
changes in personnel and absent contact persons
•
quality defects on Genuine Parts or components (proactive reporting)
2. Regular visits to VWGoA Parts Logistics
Regular exchange of information by individuals is essential for a successful
collaboration. Visits to either party are scheduled after consultation with the
parties concerned.
3. Alignment of Internal Processes for Genuine Parts Suppliers
•
Setup and use of an EDI infrastructure according to Volkswagen Group
Standards
•
Compliance with valid quality guidelines
•
Nomination of contact persons with a knowledge of German, English and/or
Spanish
•
Organization of stand-by staff in case of absence
•
Emergency concepts in case of delivery bottlenecks or car downs
•
Readiness to implement joint measures for optimization of processes and
minimizing of process costs
•
VDA 6.1 certification
4. Data exchange using current communication media
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•
E-mail, internet
•
EDI (delivery schedules, delivery notes)
•
Use of Volkswagen/Audi group portals
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VWGoA Parts Logistics Contacts
Corporate Contacts
Business Function
Manager Parts Procurement
Contact Name
Ronald Espinoza
Telephone
248-754-4595
Fax
248-754-4560
E-Mail
Ronald.Espinoza vw.com
Manager Life Cycle
Management
Daniel Donohue
248-754-5281
248-754-4560
[email protected]
Manager Parts Ops Support
Kim Siess
248-754-5709
248-754-4560
[email protected]
RDC Contacts
Business Function
Packaging Engineer
Contact Name
Randy Chrisco
Telephone
609-395-2113
Fax
609-395-2110
E-Mail
[email protected]
Parts Distribution Centers (PDCs) and Redistribution Center (RDC) Locations:
RDC/PDC Addresses and Phone Numbers
PDC 402:
Wisconsin (262) 577-2000
Volkswagen Group of America, Inc.
11589 88th Avenue
Pleasant Prairie, WI 53158
PDC 405:
Jacksonville (904) 693-7000
Volkswagen Group of America Inc.
4150 Perimeter Ind. Parkway W.
Jacksonville, FL 32219
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PDC 410:
New Jersey (609) 395-2030
Volkswagen Group of America, Inc.
47 Station Road
Cranbury, NJ 08512
PDC 414:
Fort Worth (817) 230-2310
Volkswagen Group of America, Inc.
120 Intermodal Parkway
Fort Worth, TX 76177
PDC 422:
Los Angeles (909) 673-9200
Volkswagen Group of America, Inc.
3095 E.Cedar Street
Ontario, CA 91761
PDC 495:
Vancouver (604) 233-9000
Volkswagen Group Canada, Inc.
21720 Fraserwood Way
Richmond, BC V6W 1J6
PDC 499:
Toronto (905) 428-5836
Volkswagen Group Canada, Inc.
777 Bayly St. West
Ajax, ON L1S 7G7
RDC 500:
Cranbury (609) 395-2100
Volkswagen Group of America, Inc.
49 Station Road
Cranbury, NJ 08512
RDC 515:
Fort Worth (817) 230-2310
Volkswagen Group of America, Inc.
120 Intermodal Parkway
Fort Worth, TX 76177
Supplier Relations
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Supplier Relations is the first point of contact for new VWGoA Parts Logistics suppliers
and familiarizes these with specific Global Purchasing information and requirements.
Systematically-structured communication between the supplier and VWGoA Parts
Logistics is also supported by our Suppliers’ Platform www.vwgroupsupply.com, which
includes, among other tools, the supplier database.
Suppliers are accompanied and supported by VWGoA Parts Logistics in implementing
special logistics processes (such as drop shipments and direct deliveries) along the
entire supply chain, as well as in how to participate in electronic data interchange (EDI).
In a comprehensive supplier appraisal, potential support areas in their operations are
also analyzed. Help is provided to suppliers in meeting their specific requirements and
optimizing themselves in the supplier network by means of individual measures or
workshops.
Quality Assurance
Our suppliers influence the quality of our vehicles considerably. Our global device for
quality assurance is simple and effective:
"Zero defects in all purchased parts."
We aim at improving quality continually to meet the great demands of our customers.
For this reason our principle is to exceed our customers' quality expectations. „Best-inClass" is a continuous challenge for us and we expect the same from our suppliers.
Together with you, we are responsible for delivering a product that meets the high
expectations of our customers in every aspect. “Zero-Defects" in the entire product
development process through to our customer is our strategic goal.
Should a quality defect be detected on a genuine part at any stage, the supplier
is obliged to inform VWGoA Parts Logistics at once on their own initiative.
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Goods Receipts Audits
VWGoA Parts Logistics may perform goods-receipts and quality audits together with
pertinent departments, the aim of which is to check the quality of supplier parts and
deliveries with respect to accompanying documents and packaging. In the case of
complaints, discussions will be held with suppliers and process costs will be debited.
Launch Management
Around 3,000 new Genuine Parts are added to the range for each new model. VWGoA
Parts Logistics selects these around six months before the model is launched. During
the same period, negotiations about prices, conclusion of procurement agreements,
sampling and fixing of logistics costs and stipulation of packaging all take place.
VWGoA Parts Logistics controls initial supply for the market launch. For this, a setup
range is specified for the subsequent sales levels (wholesale depots and service
partners) containing items that need to be stocked in VWGoA Parts Logistics
warehouses at least four weeks before the market launch. This is because an initial
customer need occurs when the vehicles are transferred to sales partners. Suppliers
are informed of the quantities as soon as the setup range has been stipulated. Delivery
schedules are sent for this. If no information to the contrary is received a week after
these have been received, the scheduled quantities and delivery data can be assumed
to be valid. Any deviations must be coordinated with the planner.
Any delivery deadlines you submit are considered to be binding. In the case of delivery
quantities and deadlines stated not being adhered to, VWGoA Parts Logistics reserves
the right to debit the supplier for the resultant process costs.
VWGoA Parts Logistics must also be informed of changes to material numbers (e.g.
changes to indexes) due to technical changes/optimizations in series production.
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Delivery of Genuine Parts may only be made after positive sampling and approval of
quality. If deliveries with negatively sampled Genuine Parts or materials without
approval are detected by Goods Receipts, VWGoA Parts Logistics will initiate a return
at the costs of the supplier immediately. If the supplier in question is in possession of a
valid deviation permit, this must be presented to VWGoA Parts Logistics for checking.
Providing the permit is valid for VWGoA Parts Logistics, the delivery can be accepted in
the proper fashion.
Your contact person at VWGoA Parts Logistics can be found on the suppliers platform
under VWGoA Parts Logistics > Contact Persons.
Forecasts Provided VWGoA Parts Logistics to Suppliers
VWGoA will release to the supplier a forecast representing the net requirements of
VWGoA by period. The forecast will be provided on a part-level basis and will perform
three functions:
1.Shipment Release – current period values will represent planned shipment releasees
from the supplier to VWGoA
2.Material Releases – VWGoA will provide a 4-week “frozen horizon” of planned
Shipment Releases. Material Releases within the “frozen horizon” can be considered
firm orders to the supplier.
3.Long-term forecast – eight (8) weeks of forecasted net requirements
The forecast file will adhere to AIAG (ANSI ASC X12) standards for the 830 transaction
set (version 003010).
The forecast will be for replenishment orders; any VWGoA material requirements arising
within the “frozen horizon” will be released to the supplier via the Daily Release process.
Supplier is responsible to share the latest updated information to all subcontractors
concerned within an appropriate and reasonable short time period.
All forecast quantities will be in “eaches” / pieces. Net requirements per period will be
rounded by VWGoA to agreed upon pack size or case quantities.
VWGoA’s expectation is that by sharing material forecast information with our suppliers,
and by working together, we will be able to reduce total lead-time durations, increase
service levels, and reduce costs throughout the entire supply chain.
In addition, VWGoA requires that the supplier integrate the planned Material Releases /
Long-term forecast into a capacity planning process. A major goal of the capacity
management is to review customer requirements far enough in advance to detect
potential problems in meeting those customer requirements. Capacity is one mandatory
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condition to achieve deliveries on time. This process must occur in a timeframe that
allows for preventive actions to avoid impact on the customer.
Factory-Reconditioned Parts and Units (Exchange Process)
As well as various “new” genuine parts, the VWGoA Parts Logistics also has factory
reconditioned materials and units in its assortment (these are also referred to as
“exchange parts” in Volkswagen jargon). The quality of these parts is equivalent to that
of genuine parts.
Factory reconditioning involves stripping down the “old” units and components into their
individual parts and inspecting them with regard to their suitability for reuse and
reconditioning. They are then reconditioned in accordance with the quality specifications
for new parts. Individual parts that cannot be reconditioned are always replaced by
genuine parts in this process. Deviations require a deviation authorisation from
R&D/Technical Development of Volkswagen and/or the Technical Development
department of the genuine parts manufacturer. Factory reconditioning can be performed
by Volkswagen, a genuine parts supplier or even at “external reconditioners”.
The following parts, when taken back, are excluded from subsequent sale as
factory-reconditioned parts:
•
Parts from other companies
•
Modified Volkswagen/Audi genuine parts
•
Parts with damage caused by incorrect handling
•
Parts with accident or forced damage
•
Parts with damage caused by incorrect packaging
•
Missing parts
•
Units and parts that are not of the correct type
•
Severely corroded parts
•
Water damage (applies to electronic parts)
•
Materials with a damaged warranty seal (applies to telematics)
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“Exchange” material numbers are identified with an “X” in the 11th place of the
Volkswagen material number. This is the exchange symbol as defined in Volkswagen
Standard 105 19.
(Example: 7D0-920-802-CX-01C )
“Initial run parts” are genuine parts used for the initial stock or that are called from stock
if there is an inadequate supply of used parts. They are handled using the same
material number as the genuine part (without “X”), but are directly supplied to the
exchange cycle with a separate contract number and unloading point.
(Example: 7D0-920-802-C -01C )
Used parts are defined accordingly as “U-parts” and are indicated on the consignment
dispatch slip.
(Example: 7D0-920-802-CU -01C )
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Quality Requirements and Approval of Remanufactured Materials
Remanufacturing must be according to the quality criteria for series production and
have the aim of reaching the same quality level for replacement of parts. Deviations
must be proven along with the specifications sheet approval by Research and
Development at Volkswagen AG. Besides this, the remanufactured part must meet the
technical construction state of the current series part. Any delivery states deviating from
the series construction (degree of disassembly) are stipulated by VWGoA Parts
Logistics.
Each Genuine Spare Part must be marked with the replacement symbol, in
accordance with Volkswagen standard 105 19.
For the approval process, the following steps must be initiated:
The remanufacturer draws up a technical specifications sheet for the
remanufacture and presents it to RD/TE at Volkswagen AG.
Group quality assurance (K-GQS) needs to carry out a process audit at the
remanufacturing location and approve this before approval of the component or
process can be initiated.
Sample parts for initial inspection must be presented by the remanufacturer. After
the process audit has been passed successfully, alternative sampling on site with
cover sheet documentation may be agreed with the quality assurance
department responsible.
Changes to the series part (technical changes/improvements) must be incorporated into
the remanufacturing scope. Series suppliers take this into account in consultation with
Volkswagen AG.
Remanufacturers which are not series suppliers must find out about the technical data
required for remanufacture themselves. An information exchange will not usually take
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place with VWGoA Parts Logistics! All technical changes to the remanufacturing scope
must be performed in consultation with Volkswagen.
Logistical Requirements for Reconditioned Materials
The supplier undertakes to maintain the supply of exchange parts for at least 20 years
after the end of series production. The supply period can be ended prematurely with the
mutual agreement of the supplier and Volkswagen Group of America, Inc. VWGoA
Parts Logistics provides the used parts required for the reconditioning process as
consignment material with a consignment dispatch slip. Following receipt of the
consignment parts, the reconditioner confirms receipt of the used parts, sorted
according to material number and quantity, to the VWGoA Parts Logistics. Used parts
may be delivered in various conditions, subject to agreement with the supplier.
The reconditioner must submit a corresponding offer to the Genuine Parts Integrated
Sourcing department depending on the possible delivery condition (delivery per part
number – sorting by Volkswagen or unsorted delivery – sort exchange). The
reconditioner must keep a buffer stock of used parts to last up to three months in its
own warehouse. This buffer stock is supplied by VWGoA Parts Logistics in accordance
with the available volume of used parts. As a rule, used parts are provided in a 1:1 ratio
to replacement parts. The supplier shall integrate new parts allowance rates and scrap
proportions in the reconditioning price accordingly and make this information available
at the end of a business year.
A used parts account shall be maintained for each specific supplier in VWGoA Parts
Logistics. For each used part provided, there is assumed to be a return delivery at the
“X” price. A debit posting is made at the supplier when the goods issue posting of the
used parts takes place. The material numbers and quantities listed on the consignment
dispatch slip are taken as the basis for the return of “X” parts. Immediate notification
shall be given in the event of quantity deviations in the supplier’s goods receipt check,
to enable correction by VWGoA Parts Logistics. The supplier is credited with a credit
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posting in its used parts account when the goods receipt posting of the “X” parts is
made.
In the event that the requirement for exchange materials cannot be met using used
parts in a 1:1 ratio, then VWGoA Parts Logistics shall make up the quantity in its
planning with initial run or new parts. Due to the lack of used parts during a startup of
factory-reconditioning, the “initial stocking” is made using initial run or new parts.
VWGoA Parts Logistics may offer excess stocks of used parts in the used parts store of
VWGoA Parts Logistics to the reconditioner as a source of parts that may be purchased
by the supplier at the normal market price for used parts in order to minimize the new
parts allowance rate
Continued Use of Tools and Equipment
Once the supply period for genuine parts has been reached or for final stocks/all-time
stock additions, a query about whether tools and equipment are to be continued to be
used or scrapped may be made by the supplier. This should be sent in good time, at
least six months before scrapping is planned to:
Volkswagen AG
Components tool construction department (HW-13)
Mr Christoph Grimm
Gifhorner Straße 180 (EG 10) or Postfach 4749
Brieffach 3384
D-38037 Braunschweig
Telephone no. +49 (531) 298-4796
Fax +49 (531) 298-4891
E-fax +49 (5361) -95834796
E-mail [email protected]
To enable the specialist departments to make a decision about further use, you
must include the following information:
•
Material number and attributes (colour code)
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•
Supplier number
•
Contact
•
•
•
Downstream suppliers
Information about modules or series assemblies
Site/contact person
•
Photo
•
Material
•
Scope/weights
Formulas for scrapping queries (German/English) can be obtained by sending an
e-mail to [email protected]. To ensure the
scrapping process is as quick and trouble-free as possible, the form must be
sent to the address stated thereupon together with the information mentioned
above.
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The Supplier Report
The supplier report is an objective appraisal tool, which is created each month for all
suppliers and sent by VWGoA Part Logistics. The Genuine Parts and Remanufactured
Genuine Parts ranges are appraised separately in this. At the request of the supplier,
this report can also be compiled outside the monthly cycle. As well as a graphical
representation of the degree of fulfillment, data such as target delivery quantity and
customer backlog in terms and value, delivery backlog and overdelivery or advance
deliveries are stated in the report. Supplier performance is measured for the appraisal
up to the last day of each month.
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Logistics Appraisal
Delivery Performance
- Ship-Full, On-Time
(SFOT)
-
Average Lead Time
-
Lead Time Variance
Quality Measures:
- Overall Claim Rate
- Overshipments
- Undershipments
-
Damage
-
Pick Errors
-
Cost of Re-pack
Back Order Performance:
- Average Age of Back
Orders
- $ on Back Order
- Air Freight Incurred
Percent of orders filled complete (95% or greater of
ordered quantity) and shipped (GI / Invoiced) within
Supplier-defined lead time.
Average lead time (Order to Invoice) for complete order
lines
The lead time variance for completed order lines
Percent of lines received with a claim filed
Percent of lines received with a claim filed for overshipment
Percent of lines received with a claim filed for
undershipment (short ship)
Percent of lines / Percent of order value received with a
claim filed for damages
Percent of lines received with a claim filed for pick errors
(wrong part, etc.)
$ spent on re-packing materials for US market (inlcudes
labor, materials, etc.)
Average age of lines on back order (measure should also
report standard deviation)
Value of lines on back order
Value of cost incurred to air freight inventory (both
domestic and international) to VWoA due to lack of supplier
performance
Governance: (qualitative measures)
- Overall Governance
Overall satisfaction with service provided by supplier and
responsiveness to change requests / suggestions
- Pricing
Satisfaction with Pricing change request process and
responsiveness to feedback
- Packaging
Satisfaction with Packaging change request process and
responsiveness to feedback, unit pack consistency, etc.
- Sourcing
Satisfaction with sourcing request process and cycle time
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Hazardous Materials:
Material Safety Data Sheet (MSDS) Requirements
State and Federal Regulations:
State and Federal regulations pertaining to handling and storage of
hazardous materials require VWGoA to maintain specific product information
for the health and safety of VWGoA employees. To comply with these
various laws, VWGoA requires suppliers to submit a complete Material Safety
Data Sheet (MSDS) on its chemical products using a standardized OSHA
MSDS form that complies with the 1910.1200 Hazard Communication
Standard.
VWGoA must also receive an MSDS for all “articles” as defined in the
OSHA 1910.1200 Standard that have the potential to release a
hazardous substance exposing a VWGoA employee. This includes
all greases, oils, fibers, etc. that could be released or wiped from a
part or item supplied. The MSDS must be provided to the VWGoA
Hazardous Materials contact person at least 30 days prior to the
arrival of the product at VWGoA, and If the Hazardous Material
changes, a revised MSDS must be provided, again, prior to the
arrival of the part to VWGoA. VWGoA reserves the right to refuse
parts that contain Hazardous materials that are posing a health
concern to our employees.
A proprietary description of a product is an inadequate identification of its
components and, therefore, VWGoA requires that the full chemical name
and/or chemical abstract service (CAS) number is given for every ingredient
in a formulation. In a few cases, exceptions to this requirement may be
made, such that a chemical generic description may be acceptable. These
exceptions will be determined by the VWGoA Hazardous Material Group. In
any event, every ingredient in a product must be listed.
It is unacceptable to submit separate MSDSs for sub-components of the
finished product without an accompanying data sheet for the entire product.
The lack of an MSDS for the entire product will not be acceptable. The lack
of availability of an MSDS sheet may cause VWGoA to seek alternate
suppliers.
As VWGoA makes use of this information as part of its Hazardous Materials
Safety Program, suppliers may be assured that VWGoA will exert its best
efforts to preserve the confidentiality of this data.
This information is necessary for VWGoA to fulfill its own internal Hazardous
Material Safety Objectives and/or meet anticipated requirement of the law and
employee relations matters.
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Completion of the MSDS Forms
Full Formulation Information
For each ingredient in the product, list the following:
Chemical Name
Corresponding chemical formula (where applicable)
Chemical Abstracts Service Registry (CAS) Number
Percent or percent range by formula weight. 100% of the formula
must be listed.
Whether or not the substance is a carcinogen
Note: If the product contains one or more mineral oils, indicate
whether or not each one is classified as carcinogenic.
Formula Availability: These questions must be answered.
Indicate whether or not the information in section A can be
released to VWGoA employees, their representatives, and
appropriate departments.
Physical Data
Please include pH of both the concentrated and diluted forms of the
product
EPA information
Include the volatile organic compounds (VOC) in pounds per gallon, if
applicable
Toxicological Information
If toxicological testing has been performed on the product, we ask
you to share that information with VWGoA. If no such testing has
been done, then state this.
Labeling Information
The HMIS format of container labeling is required on all chemical
material containers before they can enter VWGoA’s facilities. HMIS
labels must be in English and in readable condition, appropriately
displaying hazards of the product.
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Please list applicable material handling, safe use, shipping and waste
labeling information as designated by OSHA, DOT, RCRA, or the
Canadian equivalents.
Hazardous Material Requirements
Based on the information provided on the MSDS, the supplier shall determine if the
products to be shipped to VWGoA facilities are subject to the hazardous material
regulations defined in Title 49 CFR and/or other applicable regulations depending on
shipping method (i.e., International Civil Aviation Organization – ICAO).
Prior to the first shipment to VWGoA, suppliers shall advise VWGoA’s Hazardous
Materials Group that its products are to be shipped as hazardous materials.
Supplier shall be responsible for proposing how product is to be identified, marked,
labeled and packaged.
The supplier, as the shipper of hazardous materials, is responsible in ensuring that
its products are in compliance with the applicable hazardous material regulations in
the following areas:
Products are properly packaged and packed according to specification
packaging requirements (if applicable)
Products are properly marked with the appropriate shipping name and
UN/ID# and any other applicable required markings.
Products are properly labeled with the applicable hazard labels and/or
handling labels required
Failure of the supplier to properly package, mark and label products shipped to
VWGoA that causes VWGoA labor and packaging materials to correct deficiencies
will result in a debit to the supplier.
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Supplier Packaging
The Packaging Guidelines for genuine parts is a valid Volkswagen Packaging Terms
document. This can be found on the Suppliers’ Platform under Genuine Parts Division >
VWGoA Packaging Guidelines for Suppliers.
Introduction:
This section defines the requirements for packaging materials, material specifications,
packaging validation, and general requirements for package development. Additionally,
the general expectations regarding the performance of the combined packaging and
Original Parts are outlined.
In addition to the material and packaging design requirements, this guide will outline the
general expectations of various vendor service functions and requirements.
By consistently adhering to this guide, Volkswagen Group of America, working together
with its suppliers, wants to ensure a continuous and systematic improvement of product
efficiency over the life of the delivered part. This covers the areas of design, material
selection, production, implementation and pro-environmental considerations.
Suppliers are responsible for suggesting product or process improvements based on
their knowledge and expertise, and for applying their expertise to applicable VWGoA
business requirements.
Applicability:
These packaging guidelines equally apply to all direct suppliers of VWGoA Genuine
Parts, Third-Party Logistical Suppliers (3PLs) of Genuine Parts, and suppliers of
material to any internal VWGoA repackaging or pick, pack and ship operation.
Purpose:
The purpose of VWGoA is to ensure the availability of packaging suitable for
warehousing, internal handling and transport that guarantees the product quality across
the whole process chain to the customer.
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This should be achieved by taking into
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account the cost/benefit analysis, standardization, safety and ergonomics, sustainable
or environmentally friendliness of a packaging application, as well as new technology or
innovative solutions available in the market place.
Prior to Delivery:
Prior to the first delivery, the type of material delivery will be assessed by VWGoA,
including all applicable bid processes, and then a decision will be made on vendor
selection and production delivery.
The first delivery is preceded by a sample, if
requested, which must also be approved by VWGoA.
Delivery Conditions:
Damage to goods and transport vehicles, as well as injuries to persons involved with the
loading, unloading and general transport, can be avoided by properly securing the cargo
for shipping.
At VWGoA, securing the loads means:
•
Ensuring all loads are properly palletized, unitized and secured (i.e. stretchwrapping miscellaneous cartons on a pallet, etc.)
•
Ensuring all properly palletized loads are secured within the delivery vehicle
•
Ensuring all properly palletized loads can be loaded and unloaded in such a way
as to prevent damage to the contents of the palletized load
Other delivery requirements, unless otherwise approved by VWGoA, are as follows:
•
The initial and subsequent delivery schedules will need to be agreed upon in
advance
•
If minimum stocking levels at VWGoA are defined for individual materials, a
delivery time within 24 to 48 hours applies.
•
Delivery exceptions will be agreed upon by VWGoA as needed
•
Deliveries are to be palletized on either a standard 48” x 45” 4-way entry wood
pallet, a standard VWAG-Euro pallet, or as otherwise agreed upon by VWGoA.
•
Packaging needs to be protected from the elements during the handling and
transport process
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•
For palletized loads, any special requirements pertaining to the quantity per
pallet, pallet height, etc. need to be defined by the purchasing VWGoA facility
•
Delivery is made according to a delivery plan approved by VWGoA. A delivery
note should be affixed to each pallet, and include the packaging number/material,
supplier name, production date, company name and address, and any other
information requested by VWGoA
Notes
•
In the event that a delivered does not meet the previously agreed-upon
specifications, the supplier is obliged to provide a replacement within 24 hours.
Any exceptions must be approved by VWGoA.
•
If the delivery time or delivery requirements are not met by the supplier or there is
damage to the product to be delivered, the supplier is liable for all subsequent
damage. In the case of a delayed delivery, a fine will be assessed by VWGoA
that amounts to a maximum of 5% of the order sum.
•
For repeat or multiple deficiencies in the delivery schedule or the product to be
delivered, VWGoA reserves the right to cancel the contract within 30 days.
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General Packaging Planning and Design Requirements:
Basic Requirements:
All Genuine Parts are to be packaged in a way that will appropriately protect the
packaged part from the rigors of shipping and handling between the point of supply to
the end customer. By definition, the customer shall be considered to be the dealer,
body shop, wholesale dealer, or any similar end-user.
Service Parts:
Service parts shall be packaged in a manner that fully protects the parts from the shock,
vibration and other rigors of shipping and handling.
For example, certain body parts, such as a door, would require individual
packaging, as well as being properly secured to an appropriate pallet for delivery.
Retail / Over-the-Counter Parts:
For Genuine Parts that are to be sold in retail or “display” settings by the customer, the
packaging requirements may be more stringent than that of Service Parts.
For example, palletized loads of individually boxed retail product are to be overboxed in master cartons or similar packages, in order to ensure the highest level of
protection between the point of supply and the customer. In other words, a retail
part that has been palletized and shrink-wrapped with no additional outer
protection would not be acceptable.
Approvals:
All primary, secondary and tertiary packaging specifications will require the approval of
VWGoA Package Engineering prior to implementation.
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Packaging Approvals & New Package Development
For suppliers who are awarded a new contract to supply VWGoA with any packaged
product, VWGoA will require advanced information on the technical specifications of all
packaging intended to be used to package the purchased product. Exceptions will be
communicated to the supplier by VWGoA on a case-by-case basis.
All new packaging developments for current or new part introductions are to include the
direct involvement of VWGoA during all phases of design and development.
Process Improvements
Suppliers are expected to offer new packaging innovations, process improvements and
other innovative technologies as they become available in the market place.
This
applies to packaged parts with a previously approved packaging design.
Testing / Validation
In general, and at VWGoA’s discretion, all new parts packaging must pass certain
testing and validation, in order to ensure the packaging can withstand the rigors of
warehousing, internal handling and shipping.
Packaging Changes
Changes to any packaging material, design, process, etc. require the involvement and
approval of VWGoA. Under no circumstances are packaging specifications, materials,
etc. to be changed or substituted without the prior knowledge or approval of VWGoA.
Packaging Materials
General Information
All packaging materials must meet the minimum requirements, as outlined by VWGoA.
Additionally, all packaging materials must be approved by VWGoA prior to use or
introduction.
Specification Numbers
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25
All packaging materials are to be assigned a specification number, and cataloged by
VWGoA for all documentation or references. Numbers will be assigned by VWGoA
Paperboards and Corrugated Fiberboard
When developing paperboard packaging, such as corrugated boxes, standard design
forms shall be observed that specifies a selection or design type (per FEFCO, etc.).
Paperboard / Millboard / Chipboard
Paperboard is a flat packaging material made from fibers mostly of vegetable origin that,
in terms of mass (30.7 lbs. /1000 ft.2 to 123 lbs. /1000 ft.2 ), overlaps with paper and
board. It is stiffer than paper and is generally made from higher quality materials than
millboard.
Millboard is solid paperboard (unlike corrugated fiberboard) with a mass > 143 lbs.
/1000 ft.2. It is single-layer and glued together. It can be laminated, impregnated or
coated, as well as produced as machine-made board or press-rolled board.
Chipboard is a paperboard generally made from recycled paper stock. Uses include
backing sheets for padded writing paper, partitions within boxes, and the center ply or
plies of solid fiberboard.
Uses: Chipboard, paperboard or similar non-fluted cartons should only be used to
package small and/or light-weight parts where the objective is to simply contain
and unitize the product with little exterior structural support needed.
In other
words, chipboard, paperboard or similar non-fluted cartons should not be used on
heavier parts, where the weight of the product causes flexing, deformation or
destruction to the carton used to package the part.
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Corrugated Fiberboard
General Characteristics and Construction
Corrugated fiberboard is used for warehouse and transport packaging at VWGoA.
Depending on the product application, different types of corrugated materials may be
used. The criteria that influence the proper selection of corrugated packaging are as
follows:
Edge Crush Test (ECT)
Box Crush Test (BCT)
Puncture Test
Bursting Test
Corrugation Type (A, B, C, E, and F Corrugation and their combined facings)
Single Wall, Double Wall and Triple Wall: Illustrations
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Requirements and specifications for single-wall or multi-wall corrugated fiberboard can
be found on the following tables.
Bursting Strength Values:
Edge Crush Test (ECT) Values:
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28
Basis Weight:
At the request of VWGoA, the basis weights of any corrugated product shall be provided
by the supplier. By definition, the basis weight is the measurement of mass per unit
area, and is expressed in the following ways:
lbs.
g
1000 ft .2 or m.2
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Manufacturer’s Joint:
For folding corrugated cartons, the Manufacturer’s Joint must be made according to the
specifications required by VWGoA. Examples of Manufacturer’s Joint styles are as
follows:
Glued
Stitched
Taped
Tolerances: Scored and Slotted Corrugated Sheets
Purpose:
This standard specifies tolerances for:
Scored and slotted single wall and double wall corrugated fiberboard sheets,
With no panel dimensions more than 25 in. (64 cm) or less than 4 in. (10 cm),
That are to be set up, assembled or used by hand or on automatic packaging
equipment
Panels:
Variations in the individual panel dimensions, as measured scoreline to scoreline on the
finished blank, when flat (as a scored and slotted sheet), shall not exceed ± ⅛ in. (3
mm).
Slots:
Variations in slot depth shall be no greater than ± ⅛ in. (3 mm) from some agreed upon
average dimension.
Slots shall be centered within 1/16 inch. (1.5 mm) of the center of aligning scores or any
other specified alignment.
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Warp:
The amount of warp upon delivery to the customer’s plant shall not exceed ¼ inch for
one foot of measurement (6 mm per 30.5 cm). Warp shall be measured by placing a
12-inch straight edge ruler against the most concave surface of the blank. The distance
from the ruler to the concave surface is the amount of warp.
Tolerances: Corrugated Regular Slotted Containers (RSCs)
Purpose:
This standard specifies tolerances for:
•
Top-opening and end-opening RSCs,
•
Containers made from B- or C-flute single wall corrugated fiberboard,
•
Containers certified for a burst strength of 150 to 275 psi or an edge crush test
(ECT) value of 26 to 44 lbs. per inch,
•
Containers for which no panel dimension is more than 25 in. (64 cm) or less than
4 in. (10 cm),
•
Containers that are to be set up, filled and closed by hand or on automatic
packaging equipment
Boxes manufactured within these tolerances ensure, to the greatest extent possible:
•
The packaging is usable and can fulfill its intended function
•
Knock-down boxes will run smoothly on the automatic setup, filling and closing
equipment for which it was designed, or will set up and close easily by hand
•
Filled boxes will stack squarely during palletization, storage and shipment
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Panels:
Variations in the individual panel dimensions, as measured scoreline to scoreline on the
finished blank, when flat (as a scored and slotted sheet), shall not exceed ± 1/16 in. (1.5
mm), and variation in the overall dimensions shall not exceed ± ⅛ in. (3 mm).
Slots:
The amount of gap at the manufacturers’ joint measured at the flap score lines shall not
vary more than ± one board thickness from the target gap, which is usually 3/8 in. (9
mm) or the width of the cut slots.
Variations in slot depth shall be no greater than ± ⅛ in. (3 mm) from some agreed upon
average dimension.
Gaps measured at the flap score lines shall not be less than:
•
1/16 in. (1.5mm) when the joint is taped or when the glued or stitched tab is
affixed to the inside of the adjacent panel, or
•
1/8 in. (3 mm) when the tab is affixed to the outside of the adjacent panel
•
The gap at the manufacturer’ joint measured at the ends of the flaps, shall be not
less than 1/16 in. (1.5 mm).
•
Variations in the slot depth shall be no greater than ±1/8 in. (1.5 mm).
•
Slots shall be centered within 1/16 inch. (1.5 mm) of the center of aligning scores
or any other specified alignment.
Warp:
•
The amount of warp upon delivery to the customer’s plant shall not exceed ¼
inch for one foot of measurement (6 mm per 30.5 cm). Warp shall be measured
by placing a 12-inch straight edge ruler against the most concave surface of the
blank. The distance from the ruler to the concave surface is the amount of warp.
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Flap Gap:
•
The major flaps of a closed box should not overlap and the gap between these
flaps should not exceed the thickness of the corrugated board, unless some
other tolerance is agreed upon between the box consumer and the box
manufacturer.
Environmental Factors:
Suppliers of packaged product or raw packaging material are required to take certain
environmental factors into account when designing or proposing corrugated packaging
solutions. Suppliers will be required to understand the environmental conditions specific
to VWGoA’s storage (including stacking and palletization) and transit environments, and
factor these environmental conditions in any packaging design or proposal.
Details of environmental factors are as follows:
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Common Carton Styles:
Corrugated Fiberboard: Examples of carton styles commonly used by VWGoA include,
but are not limited to:
FEFCO 0201 / Regular Slotted Container (RSC):
FEFCO 0202 / Overlap Slotted Container (Partial Overlap) (OSC / POL)
FEFCO 0203:
FEFCO 0300 / Full Telescope Design Style Container (FTD):
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FEFCO 0301 / Full Telescope Design Style Container (FTD):
FEFCO 0421:
FEFCO 0713:
Paperboard, Millboard, and Fine Corrugated Board:
FEFCO 0210 / 0211:
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FEFCO 0713:
Plastics
At VWGoA, certain plastics may be used for packaging applications. These materials
include, but are not limited to:
•
High-Density Polyethylene (HDPE)
•
Low-Density Polyethylene (LDPE)
•
Polypropylene (PP)
•
Polystyrene (PS)
•
Polyurethane (PU)
Polyethylene (PE)
When using packaging made from polyethylene (i.e. LDPE or HDPE), such as film
wrap, bags, etc., the packaging material used has to meet certain requirements. Pure
polyethylene may not contain any plasticizers, solvents, etc., and the material must be
free of silicon and free of substances that prevent coating with paint.
HDPE: Polyethylene with a higher density, ρ ≤ 58 lbs. /ft.3
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LDPE: Polyethylene with a lower density, ρ ≥ 58 lbs. /ft.3
Polypropylene (PP)
Polypropylene is heat-seal compatible, and is characterized by low water vapor
permeability, full dimensional stability over the whole climatic range, high puncture
strength, good transparency and brilliance. It is frequently used for sturdy packaging
(bottles, crates and films)
Manufactured Bags / Film Products
The following types of film / plastic products are examples of film / plastic products used
by VWGoA:
•
Stretch film
•
Shrink film
•
Bubble-Wrap
•
Manufactured bags
Example of a manufactured bag:
Dimensions for manufactured bags are in the order of width, length and film thickness
(width x length x film thickness).
Tolerances:
The tolerances for manufactured film products are:
•
±3% for the bag length
•
±2.5% for the bag width
•
The average value may only differ from the target value by 5%.
The weld seam quality of bags should be defined as follows:
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10 test samples of each material with and without shrink seam should be produced and
torn in accordance with DIN 53444 (test speed V, test body 5). On test bodies with
shrink seams, the seam needs to be placed at a right angle to the direction of the tear.
It should also be noted that the test bodies are all made from the same direction of the
film (either width-wise or length-wise to the extrusion direction).
The seam quality is calculated as a quotient of the arithmetic mean of the respective ten
single values using the following formula:
Weld Quality = (tensile strength of film with weld) / (tensile strength of film without weld)
Tolerances for flat and tube films:
Soft Foams
Soft and hard foams are used by VWGoA. Soft foams are made from PE of PUR are
used for cushioning, protecting surfaces, and blocking & bracing.
PE foam has a density of approximately 1.3 lb./ft.3, is normally white, and varies in
thickness. The water absorption is low due to the closed-cell structure. The resistance
to solvents, fuels and oils is good. PE foam is 100% recyclable.
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PUR foam (polyether or polyester foam) is part of the polyurethane group, and has a
honeycomb-style, fine and open-cell structure.
It is resistant to acids and alkalis.
3
Density less than 5 lb./ft. can be produce with composite foam.
VWGoA can use cut or molded foams for various packaging applications. Common
examples of foam properties are:
PUR Foams:
Density:
1.0 lb./ft.3
PUR Composite Foams:
Density:
1.3 lb./ft.3
PE Foams:
Density:
1.3 lb./ft.3
Instapak (Urethane):
Density:
0.5 lbs./ft3 (InstaFill)
Density:
1.4 lbs./ft3 (G-Flex)
Rigid Foams:
VWGoA may use certain foams such as expanded polystyrene (EPS).
During the
manufacture, handling and disposal of EPS foams, the material may not release any
harmful substances, plasticizers, solvents, silicon or other substances that affect paint
coatings.
Packaging inserts made from EPS foam may not cause damage to the surface of the
item. EPS may not rub nor cause electrostatic charging. The correct density should be
selected, relative to the G-force thresholds of the packaged product. A tolerance of ±1
mm applies to EPS foams.
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Metals
Requirements for the use of metals in packaging are to be determined on a case-bycase basis.
Wood
Wooden pallets, crates, boxes and other wood items are used at VWGoA.
Requirements for Wooden Packaging Material:
The use of certified woods shall be considered part of VWGoA’s quality verification
checks.
Furthermore, the wood used shall correspond with the applicable IPPC
standard ISPM15. The material should be free of living pests, and may not show any
signs of worm grooves or remains of bark.
Packaging wood may not exceed relative wood moisture of 20%.
With chipboard,
plywood and OSB, moisture of 19% may not be exceeded.
Marking:
The performance of recognized treatment methods should be documented with a
marking on each wooden packaging, as shown below.
Requirements for wood packaging in accordance with the IPPC standard ISPM No. 15
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The marking should:
•
Correspond with the diagram illustrated below, including the outer frame and
separating line
•
Be permanently legible (branding stamps or printing is preferred)
•
Be applied to at least two clearly visible points opposite each other on the
packaging material
•
Be printed in black. It should be white on very dark wood
Note: The packaging material supplier assures that only wood that meet the applicable
IPPC standard may be used. Suppliers are responsible for informing themselves about
the latest versions of the IPPC standard.
Solid Wood:
When used in solid form, the wood has its unaltered grown structure. Solid wood is
used in the form of sawn timber.
Engineered Wood:
Engineered woods are manufactured by combining bits of solid wood matter and
forming it together with different grain directions. The following requirements apply to
the use of engineered wood:
All board materials should be checked to determine whether weather proof gluing
is necessary. The glues used may not have any corrosion-causing properties
that could have a negative effect on the part quality, personal health or
environment in any way.
The surface qualities need to be defined individually according to the function.
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Tolerances for Wooden Materials: Manufacturing
For wood packaging material to meet the requirements of export and/or overseas
packaging it needs to have the corresponding quality characteristics with regard to plant
health, wood cross-section and wood moisture.
The tolerances need to be given directly with the nominal measurement for test and
function measurements. Test measurements and function measurements should be
indicated as such.
Tolerances for cut wood and manufactured wood products are as follows:
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Printing & Labeling
The following printing methods apply to all packaging that has multi-brand printing,
according to VOLKSWAGEN AG specifications.
combination of different elements.
Packaging is printed using a
The latest specifications should be observed.
Details, as well as specific print templates, will be provided to suppliers in the form of a
CD-ROM.
Printing per the Volkswagen AG printing specifications applies to the following:
•
Original Part Labels
•
Primary Packaging (Cartons, bags, films, etc.)
•
Transport Packaging
•
Wood Products (Pallets, etc.)
All printed materialswill require
a print proof to be approved by VWGoA, prior to
production.
Films and Adhesive Tapes:
For packaging materials such as bags or films, a continuous print is made on one
complete side. Continuous printing is used on printed adhesive tape similar to film
printing. Print templates are available in the form of a CD-ROM.
Carton Printing:
Print specifications for neutral packaging: The carton number should be printed on the
tuck-in flap or on both sections of two-piece boxes (stamp print or perforation).
Otherwise, the corresponding labeled packages do not have any prints.
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Standard Print for Folding Boxes (Bleached Kraft):
Dimensioning: Single block according to specifications / agreement
Printing technique:
Flexographic pre-print, flexographic post print, (E, F or G
corrugation) or offset printing (paperboard)
Standard Print for Folding Boxes (Brown Kraft):
The two large box surfaces (front and rear-side) or, when the box surfaces are the same
size, the two opposite sides should be given the 5-brand basic unit in the center (logo
type with text bar). The narrow sides should be given the box number and bar code
(code 128 without check digit) in the center. Disposal instructions should be given on a
visible flap.
Standard Print for “TOP Symbol” (Brown Kraft):
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TOP symbols should be arranged in the same way as the following figure:
Standard Printing for “TOP Symbol” and “Fragile:”
TOP and Fragile symbols should be arranged in the same way as the following figure:
Other Printing for Sheet Metal:
Arrows:
For certain cartons (sheet metal, windshields, etc.), additional printing will be required. For
example, large “Arrows Up” may be required, in order to indicate which orientation is to be
maintained when shipping the carton. Details on which cartons are to exhibit the arrows will be
provided by VWGoA.
Concealed Damage:
As required by VWGoA, the following print will be required on the exterior of sheet metal
packaging:
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Standard Printing for Transport Packaging:
Placement should be per Code 20. Additionally, a stacking load print should be printed
on both narrow sides above the numbers where the maximum stacking pressure is
added. Symbol in accordance with ISO 780, symbol 11 (DIN 30600, registration no.
02904) for labeling of the stack load (in Kg).
Dimensions:
Square:
100 x 100 mm
Top Bar:
100 x 15 mm
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Printing for Hazardous Goods Packaging:
For products that are considered “Hazardous Materials,” all exterior packaging,
overpacks, etc. must be labeled in accordance to product MSDS sheets, as well as all
other applicable requirements.
Labels: Original Parts
Single Item (QTY = 1)
Unit Pack (QTY > 1)
Single Item (Glass)
Multiple Item (Glass)
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Single Exchange Item (QTY = 1)
Multiple Exchange Items (QTY >1)
Single Exchange Item - Glass (QTY = 1)
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Labels: Original Parts – Required Label Fields
Font Type:
Arial Bold
Font Size:
8 Point
Cartons: Original Parts – Example of Grayscale Printing on Bleached Kraft:
Cartons: Original Parts – Example of Black Printing on Unbleached Kraft:
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New Packaging Development / Packaging Samples
Prior to any new packaging development or packaging introduction, suppliers are to
involve VWGoA throughout the packaging design process, in order to ensure the
highest level of packaging performance and compliance.
During the packaging development process, the following will be expected from
suppliers:
Samples:
•
In general, a minimum of 3, unless otherwise specified by VWGoA
•
CAD Drawings (unless otherwise specified by VWGoA)
Printing Proofs:
•
To be approved by VWGoA.
•
Applies to primary, secondary and tertiary levels of packaging
Transport Packaging:
•
Written proof of the maximum loading / stacking strength under real warehouse
and transport conditions
•
Transport packaging to be printed with maximum loading / stacking strength
thresholds (weight)
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Packaging Testing
Transit Testing for Packaged Parts:
VWGoA receives parts from suppliers and redistributes through a two-tiered network.
Due to the potential number of internal and external touch points, the logistical
distances part may be shipped, and the potential modes of shipping, certain packaged
parts will require transit testing. The purpose of the transit testing is to validate the
performance of the combined packaged part, and to ensure the packaged part can
withstand the rigors of internal handling and transportation, allowing the part to arrive at
the customer in good, usable condition.
Transit testing will be used, at the discretion of VWGoA, to validate the performance of
current and potential packaging designs.
In terms of selecting a test protocol, VWGoA has minimum standards that will be
communicated to potential suppliers. Minimum test standards typically will involve any
available test protocol defined by the International Safe Transit Association (ISTA).
Examples of test protocols defined by ISTA include, but are not limited to:
ISTA (International Safe Transit Association):
ISTA Procedure 1A (Example: Headlamps)
ISTA Procedure 2D (Example: Hood)
At the discretion of VWGoA, certain packaged product will require testing that is
considered more rigorous than that defined by the minimum test standards (ISTA). Test
standards that are more rigorous include, but are not limited to:
Federal Express:
For packaged products weighing 150 lbs. or less
For packaged products weighing over 150 lbs.
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Applicability of Transit Testing
The requirement to have material numbers tested will be the sole discretion of VWGoA.
Examples of parts requiring transit testing include, but are not limited to:
•
Windshields
•
Doors
•
Headlamps
•
Alternators
•
Major Sheet Metal (Hoods, Side Panels, Deck Lids)
Examples of parts that may not require transit testing include, but are not limited to:
•
Oil Filters
•
Small fasteners, screws, etc.
Minimum Requirements
All part requiring transit testing will have minimum testing requirements.
Minimum
testing requirements are performed per ISTA test protocols.
Preferred Requirements
For applicable parts, it is the preference of VWGoA that the combined packaging and
product be designed to withstand FedEx Transit Testing. In general, the test protocols
for FedEx are designated for:
Packaged product weighing 150 lbs. or less
Packaged product weighing more than 150 lbs.
Final decision on all parts that require transit testing will be made by VWGoA.
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Supplier Responsibilities:
Prior to the introduction of new packaging designs or specifications for packaged parts,
(and if requested by VWGoA) suppliers are to perform transit testing and provide written
proof of positive test results at their expense.
Unit Load / Export Packaging:
In addition to testing individually packaged-product, other testing obligations may be
required of the vendor. Specifically, this applies to two categories: Unit Load / Pallet
Load Testing and Export Shipper Testing.
Unit Load Testing:
In certain cases, unit load or pallet loads may need to be tested, to ensure the structural
integrity of full pallet loads of packaged product.
Testing requirements are to be
outlined by VWGoA on a case-by-case basis.
Export Packaging:
For any master pack to be exported, testing to ensure the structural integrity and
soundness of the shipper carton will be required, at the discretion of VWGoA.
Examples of testing of export packaging include, but are not limited to, compression
testing of master packaging to validate stacking strength, etc. Any testing requirements
are to be outlined by VWGoA on a case-by-case basis.
Individual Packaging Material Testing:
Aside from transit testing performed on packaged parts, VWGoA will randomly test
individual packaging materials via an independent test lab, in order to verify that the
packaging materials meet the defined requirements and specifications.
Any individual packaging material found to be out of compliance will be rejected, and an
immediate replacement supply will be required, at no cost to VWGoA, and in a time
frame that is agreed upon by VWGoA.
Unitization:
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For packaged product that is to be supplied in unit loads, or multiple primary packages
per load, the following components of unitization should be observed:
Pallets: In most cases, unitized loads will require the use of a base platform or pallet.
Unless otherwise specified, pallets should have either a standard 48” x 45” footprint or
be designed per the standard VWAG Euro pallet. Pallets should also have 4-way forklift
access, unless otherwise agreed by VWGoA.
Slip Sheets: For unitized loads consisting of many smaller cartons, or loads that may
be unstable in nature, the use of slip sheets between layers may be required to increase
the stability of pallet loads.
Stretch-wrapping:
Depending on the nature of unitized loads of packaged product,
VWGoA may require the use of stretch-wrap on the exterior of the pallet load, in order to
ensure a higher level of stability for the pallet load. Decisions on the use of stretch-wrap
on palletized loads to be made on a case-by-case basis by VWGoA.
Master Packaging: Depending on the nature of unitized loads of packaged product,
VWGoA may require the use of a master pack, or shipper carton, to be used as part of
the packaging requirements for a particular pallet load. Decisions on requiring the use
of a master pack to be made on a case-by-case basis by VWGoA.
Material Master:
Prior to the supply of any new part, vendors are to supply certain information describing
the physical attributes to the parts and various levels of packaging.
Any changes to existing or current parts supplied are to be communicated to and
approved by VWGoA in advance.
Part Measurements and Dimensions:
The following levels of exterior dimensions are to be provided:
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•
Loose or unpackaged (if applicable)
•
Primary or single part dimensions
•
Secondary packaging (over pack or pallet load, where applicable)
•
Tertiary packaging (over pack or pallet load, where applicable)
Should be expressed in terms of Length x Width x Height, and should reflect the exterior
measurements as follows:
For small, unitized parts, dimensions should include “blank” or loose parts. Examples
include screws, fasteners, etc.
For parts that must be warehoused in a certain orientation (i.e. bottles of fluid, etc.), the
order of dimensions should reflect any specific product orientation requirements.
Weight Measurements:
For each packaged part, the material weights for packaged parts must be supplied by
the vendor. Supplied weights are to be for the individually packaged parts.
Quantity Unit Packs (QUPs):
VWGoA will require certain supplied packaged parts to have specific Quantity Unit
Packs (QUPs). Specifically, parts with a defined QUP are to always be supplied in
incremental packaged quantities that are established between VWGoA and the supplier.
Three factors that will influence how a QUP is defined are:
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Parts Applications: Certain parts, as defined by VWGoA, are to have QUPs defined to
suit the particular use of the part. For example, spark plugs, etc. should have a QUP
defined and configured to the number of plugs used on a certain engine or family of
engines.
Picker Friendly: Quantity unit packs, as specified by VWGoA, are to be designed to
that they facilitate the picking process. For example, a master pack of 300 oil filters
should be unitized in smaller increments (such as a 10-pack).
Cost Effectiveness: Quantity Unit Packs are to be designed and defined in such a
way as to be cost effective. The cost effectiveness of a QUP could be the result of the
following:
Saves time during the order fulfillment (picking) process
Reducing errors and quality deficiencies during order fulfillment process
Maintaining a high level of protection and structural integrity of the unit
pack
General: All levels of Quantity Unit Packs are to be evenly divisible by the next lowest
unit pack quantity. For example, defined packaging QUPs could be (1 / 10 / 100).
Additionally, all defined unit pack quantities are to be consistently maintained by the
supplier.
Environmentally Friendly / Sustainable Packaging Development and Manufacture:
Environmental impact from packaging is caused both in the manufacturing process, and
in the disposal of packaging that is no longer needed.
account during the planning of packaging.
This should be taken into
By using environmentally friendly
manufacturing methods, in addition to the proper selection of environmentally
compatible materials, minimization of the environmental impact can be achieved.
When planning and purchasing packaging materials, the following philosophy should be
kept in mind:
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“Packaging shall be so manufactured that the packaging volume and weight be limited
to the minimum adequate amount to maintain the necessary level of safety, hygiene and
acceptance for the packed product and the consumer.”
Examples / Applications:
When practical, packaging materials that are recyclable should be given preference
over non-recyclable materials.
For example, corrugated materials should be given
preference over plastics, foams, etc.
When practical, packaging should be designed to facilitate recycling after the packaging
materials are no longer needed. For example, mixing recyclable corrugated with nonrecyclable foams or plastics should be avoided.
Damages
General Information:
All part damages for Original Parts are updated on a monthly basis, and for a time span
of the preceding 12 months. Damages can be tracked in the following ways:
By individual part number
By description/commodity
By order type per part number (Stock Order, etc.)
Damage Thresholds:
Unless otherwise specified by VWGoA, the average 12 month damage threshold for
packaged parts is 0.8%. As such, VWGoA will require suppliers of packaged parts to
ensure that the packaging of their supplied parts is sufficient enough to meet or exceed
the targeted damage threshold.
Suppliers of packaged parts whose damage rate exceeds 0.8% will be asked to improve
or redesign their packaging, unless otherwise specified by VWGoA, so that this target
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damage rate will be met. VWGoA may require suppliers to also provide documentation
(i.e. ISTA or FedEx test reports) confirming the performance of any particular package.
This damage rate requirement applies to the distribution of packaged parts from the
point of supply all the way to the customer.
By definition, the customer shall be
considered to be the dealer, body shop, wholesale dealer, or any other end-user
designated by VWGoA.
Damage Tolerances: Sheet Metal
Customer expectations are that all sheet metal body parts are to be free of any
blemishes, dents, scratches, etc. Examples of blemishes that are considered “damage”
include, but are not limited to:
•
Scratches that are deep enough to deform the material or penetrate the primer
into the metal
•
Scratches that are the cause of dents and/or “dings”
•
Bubbles / webbing / fogging
•
Dents and dings found on the center of the hood are not acceptable, whereas
some minor dents or dings near the corners may be repairable
In some cases, and at the customers’ discretion, some sheet metal may be repaired. In
the even a body part is repaired, the following apply:
•
Repairs must be reimbursable
•
Repairs must not generally exceed 30-60 minutes
Vendor Performance: Service, Delivery and Other Requirements
General
Beyond the material specifications or packaging designs, VWGoA requires certain
service, performance and other general requirements from vendors.
These
performance requirements are designed to optimize the flow of supplied materials to
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VWGoA’s facilities with respect to local requirements, and to minimize the space
required for raw material storage in any VWGoA facility.
Any deviation to these requirements is to be arranged and approved by the purchasing
VWGoA facility.
Vendor Managed Inventory:
For all VWGoA locations, it will be the responsibility of the vendor to manage all
packaging material inventory. Specifically, the vendor will be responsible for working
with VWGoA management to optimizing the delivery of product, with respect to local
needs and requirements.
In-Person Inventory:
Unless otherwise specified by VWGoA, it will be the responsibility of the vendor to
manage the inventory of any packaging material supplied, in person. This means that
the vendor will be required to establish a schedule with VWGoA on when the inventory
is to be performed, and any other local material inventory requirements.
While performing in-person inventory, vendors are to complete a written order form,
which is to be approved by VWGoA, prior to any subsequent delivery.
In summary, vendor-managed inventory entails the following:
•
Working with local VWGoA management to establish an inventory schedule
•
Working with local VWGoA management to determine minimum space
requirements for material storage within VWGoA facilities
•
Supporting a JIT delivery schedule
•
Offering process improvements or other “lean” initiatives to improve the supply,
delivery and storage of purchased product, relative to local needs
JIT Deliveries
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In conjunction with the vendor’s in-person inventory management, and to ensure an
optimal balance between material delivery frequency and storage space required within
VWGoA’s facilities required for raw material storage, all deliveries are to be JIT, unless
otherwise specified.
All delivery schedules are to be agreed upon with VWGoA.
Material Substitutions
Packaging material substitutions require the approval of VWGoA prior to delivery.
Under no circumstances are packaging materials to be substituted without prior
approval from VWGoA.
Substitutions include switching from Brand “A” to Brand “B.”
Price Increases
Any price increases presented to VWGoA must be supported by and must not exceed
price increase trends in the market place. Conversely, it is VWGoA’s expectation that
any price decrease in the market place will also be realized by vendors.
Other / General Requirements
•
Unless otherwise directed by VWGoA, the following requirements apply:
•
Supplier is responsible for 100% of all cutting dies and printing plates
•
All items are to be warehoused by the supplier for next day delivery (unless
otherwise specified)
•
Supplier is to design and provide samples free of charge
•
VWGoA and Supplier are to establish consistent quantities per unit, pallet, etc.
For example, corrugated cartons are to have specific quantities per pallet
•
VWGoA and Supplier are to establish pallet dimensions, in terms of length, width
and height, etc., to ensure that materials to be delivered will fit in certain VWGoA
in-house storage areas.
Vendor Performance: Third Party Logistics (3PL)
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Packaging: General
All Third Party Logistics (3PLs) will be required to adhere to the packaging requirements
outlined.. Any deviations or special circumstances with regard to the design,
development and supply of packaging will require the approval of VWGoA prior to the
supply of any packaged product.
Packaging: Standard Operating Procedures
All defined packaging processes and procedures performed by 3PLs should be clearly
defined with step-by-step standard operating procedures (SOPs).
Penalties:
In the event a 3PL has not sufficiently performed
Special / Non-Standard Circumstances
Any deviation from approved SOPs will require prior approval from VWGoA.
Special Notices / Campaigns: Packaging
VWGoA requires all vendors to provide advanced notification for all non-standard
situations that may affect the nature of how a part is packaged. Specifically, any nonstandard primary, transport or other packaging must be approved by VWGoA, prior to
delivery.
Other Supplier Responsibilities and Assumptions of Cost
Any deviations to any of the requirements must be communicated to VWGoA well in
advance, and must also be agreed upon by VWGoA, prior to the delivery of any
packaging or packaged product with such a deviation.
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Non-Compliance
Any supplier found to be in non-compliance with these guidelines, or any additional
requirements outlined in the suppliers’ Purchasing Agreements, will be responsible for
incurring all costs associated with non-conformities.
Specific resolution to non-
conformities will be determined on a case-by-case basis by VWGoA.
Material Returns & Scrapping Costs
In the event of non conforming materials, suppliers will be given the choice of taking the
material back or VW scrap parts at the suppliers cost. A Return Material Authorization
number or RMA will be requested from the supplier. VW will return parts directly from
any and all stocking locations to the suppliers. An RMA number will be requested for
each returning location.
Scrapping costs would include (not limited to) any and all handling, physical scrapping,
waste removal, transportation, and equipment used. This would also include special
disposal requirements for materials considered “hazardous waste”.
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Unloading Points
Genuine Parts suppliers will be instructed where parts are to be delivered in each
forecast/order schedule or special order. Current addresses of unloading points can
also be found under “RDC/PDC Addresses and Phone Numbers.”
Minimum Shelf Life for Genuine Parts
Genuine Parts which become unusable or defective as time goes on need to be clearly
marked as such on the product in a suitable fashion or on the packaging with the expiry
date stated. Products not marked with a storage time restriction can legally be regarded
as defective and will result in product liability claims in the case of any damages.
Genuine Parts with limited storage times are marked as such in the master data of
VWGoA Parts Logistics systems and cannot be booked as goods receipts without a
specified shelf life. Suppliers are therefore required to observe the following procedure:
•
With the process for new parts, a note must be made on the data sheet as to
whether the material is to be treated as a material with a limited shelf life or not
and the maximum storage time needs to be set in the logistics system.
Plausibility of this information must be proven on request. New declarations e.g.
due to product changes must be explained immediately by the supplier without
the need for any request.
•
Where parts with limited shelf life are delivered packed suitably for storage,
labels on materials must be marked with the expiry date: year (four digits) and
month (two digits).
•
Parts with a limited storage time, which are not delivered suitable for storage
such as bulk material must contain the expiry date on the delivery documents.
•
All parts with limited storage time should have their expiration date included in
EDI shipment information at the item level. Deliveries of batches of parts with
differing expiration dates should be separated at the line item level for
identification
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Special Logistics Processes
Drop shipments
In a drop shipment, materials scheduled for delivery by VWGoA Parts Logistics are sent
directly by the supplier or regional freight carrier to dealer customers of the Volkswagen
Organization. This means parts are not physically touched by the VWGoA Part Logistics
RDCs or PDCs.
Demand-driven Order Process (DD process)
The DD process is a requirements-based order process, which guarantees
supply of Genuine Parts according to customer demand without going through VWGoA
PDC’s or RDC’s. Genuine parts scheduled in the DD process are also sent directly by
the supplier to dealer customers of the Volkswagen Organization (wholesale level). The
materials and information flow is the same as that of a drop shipment.
Supplier prerequisites for participation in DD process
•
Parts with low turnover frequency
•
C and D parts range derived from the ABC analysis/Variety Management
•
Series parts or new parts, series parts being phased out, post-series parts
•
Parts must not have any stock which can be planned
•
No open orders to suppliers (backlogs)
•
Participation in EDI process must be ensured (see drop shipment)
•
Sending and receiving of messages (orders and delivery note data) as per
standard data delivery formats
Direct Shipments
In the case of urgently required genuine parts or in the case of a car down, direct
shipment of genuine parts by the supplier to the customer may be necessary. The
supplier will receive a special order for the required materials including the order
quantity and the material number; this also contains the delivery address for the
customer. The supplier sends the materials to the customer after receiving the direct
shipment order and sends a copy of the delivery note to VWGoA Accounting Services.
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The customer receipt of the item will be confirmed through VWGoA systems. Since in
this special process also, the material does not physically touch VWGoA Parts
warehouses, payment for this direct shipment is triggered by a retrospective goods
receipt posting using a copy of the delivery note.
Process Support by EDI
EDI standards in the Volkswagen Group
The delivery process for Genuine Parts in the Volkswagen Group is supported by EDI
(Electronic Data Interchange). By EDI, we understand exchange of structured business
data (e.g. Schedule Line/Forecast, Purchase Orders, Advance Shipping Notice,
Invoice/Debit, Technical Acknowledgement, Application Acknowledgement, Receipt
Advice ) and product data between the information systems of our external partners and
our own process control systems.
EDI transactions between ourselves and external partners are based on message and
communication standards both developed and recommended by automobile industry
standards.. EDI is essential for lean, efficient business processes during delivery of
Genuine Parts. For this reason, EDI is an essential prerequisite for collaboration with
external partners.
All suppliers are obliged to guarantee and monitor receipt and processing of EDI data
and sending of shipping notifications (see General Purchasing Conditions and General
Shipping Regulations).
EDI Standard Transactions:
Use
EDIFACT
ANSI X12
Schedule Line / Forecast
DELFOR
862
Purchase Orders
ORDERS
830
Advance Shipping Notice
DESADV
856
Invoice
INVOIC
810
Technical acknowledgement
CONTRL
997
Application acknowledgement
APERAK
824
Receipt advice
RECADV
861
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Contact Information for EDI Specifications:
Harsha R Gudeti
Phone 248-754-5881
[email protected]
The EDI Delivery Note (Shipping Notification)
VWGoA Parts Logistics expects an EDI message (ASN = Advanced Shipping
Notification) for delivery note data and transport data from external partners for delivery
of parts to unloading points.
Subsequent Calculation of Process Costs
Material flow between Volkswagen and the supplier is essentially determined by the
elements time, means of transport and information. Delivery notes that are free from
errors and legible and EDI data that can be correctly processed are absolutely
imperative for a smooth logistics process, as is compliance with the packaging
agreement or specified delivery deadlines. Logistics processes which are free from
errors reduce costs both for VWGoA Parts Logistics and for the supplier.
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