Bosch Appliances 3 manual Order Processing, Execution, Order Tracking Release Process

Bosch Supplier Logistics Manual, Release. 3.0

1.3Order Processing

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

-that production capacity corresponds to this volume and

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

1.3.1Execution

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

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

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

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

1.3.2Order Tracking (Release Process)

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

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

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

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

1.The cause of the supply problem

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

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

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

Robert Bosch GmbH, CP/LOG, 07.05.2007 Page 10(35)