Bosch

Supplier Logistics Manual, Release. 3.0

With VMI, as a rule, gross demands (= production demands) are transmitted instead of delivery call- offs. SUPPLIER will control the delivery to assure VMI stock to be between the agreed min/ max limits (see also 1.2.3).

In VMI process material and production releases are based on gross demands. As valid periods for these releases, intervals defined in the delivery contract are applied correspondingly.

1.3.6 Order Processing Using the DCM or Kanban Process

With KANBAN the consumption of a KANBAN container triggers a release. The refilling of the empty KANBAN must be done in defined intervalls. Transmission of the electronic KANBAN will be done either with WebEDI or existing interfaces in classical EDI.

1.4Controlling of Logistics Performance

SUPPLIER shall monitor the following variables as a minimum in order to record its logistics performance and make the results available on request. Visual presentation of the results on site by SUPPLIER is recommended.

1.4.1 Delivery Performance

SUPPLIER shall operate a system to monitor and, at least on a monthly basis, measure its delivery compliance (in terms of delivery dates and quantities) to the delivery requests of the receiving BOSCH plant.

1.4.2Premium Freight

Premium freight (also named special deliveries or expedited shipments) is considered to be outside the standard logistics handling as agreed between SUPPLIER and BOSCH in the supply contract. Premium freight is used when there is a risk to disrupt production as this cost is much higher than normal transportation.

SUPPLIER shall record, at least on a monthly basis, the premium freight for which it has been responsible (including as a minimum the instances of such shipments, the additional freight costs, and the cause). SUPPLIER must be prepared to provide information about premium freights – if required by BOSCH.

Robert Bosch GmbH, CP/LOG, 07.05.2007

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Bosch Appliances 3 Controlling of Logistics Performance, Order Processing Using the DCM or Kanban Process, Premium Freight