Contents
1
2
3
Purchasing
3
Introduction
3
Definitions
3
General Requirements
4
Sourcing Process
4
Source Selection
5
Scheduling Agreements /
Purchase Order
6
Scheduling Agreements
6
Material Surcharge Agreements
13
Supplier Master Agreement
13
Production Part Tooling
14
Materials Planning
14
Introduction
14
MTU America, Inc.
Planning Methodologies
14
Replenishment Strategies
15
Release Delivery Schedules How to Read and Understand
16
Timing Zones
18
Supplier Responsibilities
18
Material Planning Ship to:
Info and Contact Info
21
Attachments
22
Supplier Quality
25
Introduction
25
Quality Management
System Requirements
25
Return Material Process
28
Specifications
29
Glossary
29
Attachments
29
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U.S. Customs Import Guidelines
29
Purpose
30
Scope
30
Definitions
30
Responsibility
30
Procedure
31
Non Compliant Shipments
35
Fines and Penalties
35
Records
35
4.9
Attachments
37
5
Packaging/Preservation
56
Introduction
56
Expendable Packaging /
Returnable Packaging
57
Packaging Approval Process
57
Part Protection, Cleanliness
and Preservation
58
Packaging of Hazardous Materials
58
Import / Export
58
Regulations on Wood Packaging
Material (WPM)
59
Shipment Marking Requirements
59
Production Parts Container Labels
59
Accounts Payable
60
Introduction
60
Invoicing Standards
60
Invoicing Submission
61
Invoicing Processing
61
Payments to Suppliers
62
Payment Inquiries & Disputes
62
Statement Submission
62
Vendor Master Record Creation
and Changes
Error! Bookmark not defined.
6
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1
Purchasing
Introduction
This chapter explains the purchasing procurement process and identifies the documents that suppliers will
receive via the Purchasing Organization. It also provides an explanation as to which documents are
required for proper processing of MTU America orders.
Definitions
Supply base providers consist of the following: suppliers, brokers, sub-contractors, re-packers, licensees,
or providers of a service.
Supplier
A provider of equipment, materials, packaging or services.
Broker
An agent who negotiates and/or contracts the purchase of equipment, materials, packaging or services
which are to be used in the manufacturing of MTU America products.
Sub-Contractor
An outside manufacturer who takes raw state materials and thru machining, assembly or packaging
converts them into a finished product or semi-finished product.
Re-packer
An outside manufacturer who takes “finished product” or “work in process” product produced either
internally or at another external location and packs into a primary packaging container. There is direct
product exposure to the environment.
Licensee
A third party who is granted authorization to manufacture, distribute and /or market a
product under the MTU brand name.
Service
The providing (or a supplier) of accommodations and activities required by MTU America Inc., such as
maintenance, repair, etc.
Purchasing Contract
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A legally binding document agreed between a purchaser and a vendor that defines the purchasing and
supply of goods or services at agreed prices and conditions.
General Requirements
All suppliers shall be knowledgeable and in compliance with the following:
o
o
o
o
All federal, local, regional and state regulatory requirements
International regulatory requirements for exported product (if applicable) as well as US regulatory
requirements for importation of materials or services
US export regulations specific to the International Traffic in Arms Regulations (ITARS)
Requirements as described in this manual
Supply base providers shall ensure that their suppliers are in conformance with these requirements
as well.
Sourcing Process
A MTU America supplier is carefully selected by the buyer based upon several factors. he buyer will
review key criteria such as delivery, quality, cost, and financial stability when making their final
selection. All MTU production suppliers must be ISO or TS certified, or must already be a MTU
America approved supplier. Suppliers who are asked to participate in the quote process need to be in
good standing with all MTU manufacturing locations.
Suppliers will be asked to participate in the quoting process via an official Request For Quote (RFQ)
inquiry from the buyer (i.e., email or phone call). Each quote must be submitted via our standardized
Request for Quote (RFQ) form or via an email to the buyer with the requested information listed.
To view RFQ document follow link: MTU America Request For Quote
When submitting a quote for consideration of new business, it is necessary to identify all costs that
would be required to meet the specifications and function of the product. Suppliers should break out
specific surcharges, packaging costs, tooling changes or any other applicable pricing conditions
relevant to the product. The supplier should also insure that accurate lead times, initial and
ongoing, are listed on their quotation. Lead time should include the supply of raw material, and the
manufacturing time, and transportation time to customers dock if you are responsible. We would
also ask that suppliers include and identify a packaging proposal when submitting quotes to the
buyer if they are unable to adhere to the standard MTU Packaging Specifications listed in this
document. This proposal should identify what packaging material / process will be used to ensure
the parts get to our designated facility in an efficient and effective manner. All packaging proposals
will be reviewed by our Packaging Department. Please refer to the Packaging Specifications
(Section 5) in this manual for further information. Suppliers should also list on the quotation final
product Country of Origin for export purposes. Please refer to the Logistics portion of this document
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(Section 4) for more details in regards to exportation.
Source Selection
Upon receipt of the quotes and careful analysis, a decision will be made as to which supplier (or
suppliers) will be awarded new business. The majority of MTU parts are single sourced, however,
there are some instances where multiple suppliers are used. In those circumstances, we consider
that part to be multi-sourced. The process and the criteria for single sourced vs. multi sourced
Suppliers would still be the same.
As a new supplier to MTU America a Vendor Master Record Request Form will be required to be
filled out and returned to the requesting buyer along with a completed W-9 form (Domestic Supplier)
or W-8 (International Supplier) form.
To view Vendor Master Record Request Form and Tax Documents follow these links:
Vendor Record Request Form
W-9 Form
W-8 Form
If the supplier that is selected is already an approved vendor of MTU they will receive an order
(Purchase Order/Scheduling Agreement) from the Buyer with the part number(s) and agreed to
pricing listed. The PO or SA will also list out any stipulations that apply to the order. For example
specific PPAP requirements, ship to location, terms of payment, etc. The specifics of the
purchasing agreements will be discussed in more detail in the next section.
For suppliers that are currently supplying material to our counterparts in Friedrichshafen (MTU-FN)
buyers for MTU America will still submit an official Request for Quote in an email or RFQ form to be
filled out for parts that MTU America and MTU-FN have requirements for. We expect that base price
and surcharge that have been quoted to MTU-FN are also quoted to MTU America for the same parts
and lot sizes. The supplier should be aware that most price negotiations that are made with MTU-FN
would be applicable for MTU America as well. After price negotiations are approved and completed it will
be the supplier's responsibility to communicate all pricing to MTU America.
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Scheduling Agreements / Purchase Order
Once a supplier has been selected to supply a part or parts to MTU America, Purchasing will issue either
a Purchase Order or Scheduling Agreement to the supplier. These documents are contracts and
provide important information to the supplier on pricing, shipping location, terms and conditions among
other things. If any changes are required to the Scheduling Agreement or Purchase Order, the supplier
must notify the buyer in writing well in advance of the first shipment to avoid invoicing issues or payment
issues. This notification must provide supporting documentation for price change request.
Below are more detailed descriptions of each type of document to help distinguish between the two.
Scheduling Agreements
The Scheduling Agreement is a contract between the supplier and MTU America, Inc. This
document contains key information including unit price, supplemental conditions, payment terms,
target quantity (estimated annual volume), delivery address, contract term, and appropriate MTU
Buyer information. Scheduling Agreements are made for reoccurring/frequent requirements, i.e., for parts
that are required on a routine basis (also referred to as a Blanket Order). Please note a scheduling
agreement is not authorization to ship product to MTU America, the required delivery dates and quantity of
pieces to be shipped are provided to the supplier by means of separate agreement called Delivery
Schedule. The Supplier can find more information about the delivery schedule in the Planning portion of
this document (Section 2).
The supplier's Scheduling Agreement will consist of a 10 digit number beginning with the prefix "4600" for
production orders to be delivered to the warehouse or manufacturing location in South Carolina and for
Aftersales orders to be delivered to the warehouse in Brownstown, MI.
Please see a few print screens below of examples of a Scheduling Agreement with key data identified.
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- Target Quantity:This field represents an estimated annual volume that is entered when the part
gets initially set up on a Scheduling Agreement. This quantity is only for informational purposes and
should not be used by the supplier to plan for shipments or to order component items. The Planning
Department at MTU America is in charge of sending out weekly Delivery Schedules which will list out
the quantities and dates that parts are required. The dates and quantities listed on this Planning
document are what should be used by the supplier for manufacturing and planning purposes. Please
pay careful attention to the firm zone on Delivery Schedules.
- Pricing: For reporting and tracking purposes MTU America requires that suppliers submit pricing
with supplemental conditions broken out, such as: material surcharge, packaging, etc. These pricing
conditions will be listed out individually on the Scheduling Agreement as pointed out in the print
screens above. Due to some limitations of our internal MRP system that we use we are only allowed
to use two decimal places when entering pricing. If a supplier's pricing exceeds this two decimal
limitation they may see the pricing extended in a higher unit per quantity than what was originally
quoted. Example: Quote Price = 3.562 per 1 pc, Price on SA = 35.62 per 10 pcs.
If the supplier receives the Scheduling Agreement and notices any error in price they are to notify
their MTU Buyer immediately to get the discrepancy corrected in order to avoid payment issues.
- Payment Terms: Terms will be established for a supplier prior to any issuing of purchasing
documents. The terms should be agreed upon by both parties at the time of contract negotiation. It is
important that the supplier understand that payment terms commence after receipt of invoice or date
of goods receipt in an ERS scenario. It is important for suppliers that are set with ERS (Evaluated
Receipt Settlement) payment terms to be aware that they will get paid whatever price is listed
on this Scheduling Agreement document at time of goods receipt regardless of what may be
invoiced.
- Contract Term - Validity Period: MTU America typically prefers to have fixed or negotiated 2-3
year pricing. During that time supplier Scheduling Agreement number(s) will remain the same and
pricing will be updated where necessary (i.e. quarterly surcharges) on this document until the end of
the contract term. If any additional parts are sourced with the specific supplier they will be added to
the existing Scheduling Agreement. At the end of the contract term if no significant price changes or
negotiations occur the contract (Scheduling Agreement) will be extended an additional 2-3 years.
* MTU America Buyers MUST be informed of any price changes on existing parts (for material
surcharge changes, see section 1.7 for more information) 90 Days in advance. This will allow for the
Buyer and Supplier to react and make any necessary changes.
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- PPAP Requirements: PPAP requirements are no longer listed on Scheduling Agreements and
Purchase Orders. If there is a PPAP requirement for parts awarded to MTU America suppliers the
information will be communicated on the PPAP Supplier Award Letter. This letter will be sent to the
supplier along with the Scheduling Agreement or Purchase Order. Below is an example of the PPAP
Supplier Award Letter:
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- Ship to Address:

Aiken/Menlo (Plant 91) Scheduling Agreements starting with the number sequence "4600"
Production parts that are ordered for Plant 91, our South Carolina facility (also known as Aiken
Warehouse), for assembly and/or in-house manufacturing should have the following ship to
address:
MTU America, Inc.
Aiken Warehouse
1025 Textile Ct.
Graniteville, SC 29829
United States

Brownstown Warehouse (Plant 90) Scheduling Agreement starting with the
number sequence "4600"
Service parts that are ordered for Plant 90, our Brownstown, MI facility, for distribution to
customers should have the following ship to address:
MTU America, Inc.
Parts Logistics Center, N.A.
19771 Brownstown Ctr. Dr.
Suite 760
Brownstown Township, MI 48183
United States
*
Please remember that neither current requirements nor delivery dates are included in
the scheduling agreement. This data is provided to the supplier on a weekly basis via the
Delivery Schedule . The Delivery Schedule indicates the requested date of delivery
and quantities to be shipped. More information can found in the planning portion of the
document (section 2).
Purchase Order
Unlike the Scheduling Agreement, the Purchase Order includes information on the required quantity to be
shipped, and date of delivery for a specific part(s). Therefore, there is no separate Delivery Schedule
provided like with a Scheduling Agreement. The MTU America buyer or planner will send the supplier a
Purchase Order via email, fax, or electronically. The supplier should then confirm that they have
received the order and commit to supplying the parts in accordance with the conditions stipulated on
the order itself. The Purchase Order number will consists of 10 digits starting with the prefix "4561" for the
production location in Graniteville, SC and a"6000" for the aftersales facility in Brownstown, MI .Below are
more detailed descriptions to help the supplier to distinguish key information on a MTU America Purchase
Order.
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Amendments - Scheduling Agreement / Purchase Order
Many times amendments will be made to the Purchase Order or Scheduling Agreement for a variety
of reasons including price change, quantity change, part cancellation, delivery date change, etc. If an
amendment is made, the supplier will receive an Amended Scheduling Agreement or Purchase Order
from the Buyer via email, fax or electronically. The amendment that is sent will only identify items that
have changed. For example, if a new part is added to an existing Purchase Order the supplier will
receive an "Amended Purchase Order" that will only list out the part number that w as added. This
applies to both Scheduling Agreements and Purchase Orders.
Example of Amended Purchase Order / Scheduling Agreement:
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Material Surcharge Agreements
Material Surcharge Agreements are made with suppliers who provide us parts where the raw material
price is fluctuating at a rate of +/- 5% on a regular basis. Suppliers who are engaged in a Material
Surcharge Agreement with MTU America need to supply Metal Market information that is being used
to calculate surcharge and a 6 month Metal Market history for a base line establishment. This
information is required 15 days prior to the effective date of this price change. For a quarterly material
surcharge this amount should consist of the average material costs from the prior 3 months. This
surcharge amount is then added to the base price or listed out separately as a supplemental condition
on the scheduling agreement or purchase order.
The information that should be included with each material surcharge request change is:







Part number
Weight for each part
Material type
Base Price
Surcharge per part
Foundry information (name, contact information)
Total Price
The frequency at which surcharge changes take place should be agreed upon by both the MTU
America buyer and the supplier. But no more frequently than 4 times per year.
If a supplier is not involved in a material surcharge program as stated above but have quarterly or bi annual surcharges they will need to be prepared to submit back up information to the Buyer at any
time justifying the surcharge. MTU America tracks the cost of metal commodities monthly and will use
this information as a guide when reviewing supplier surcharges.
Supplier Master Agreement
The Supplier Master Agreement could be used upon completion of price negotiations to confirm the
terms and conditions for supply of parts for a given period of time. The Master Agreement will
include but are not limited to agreements on pricing, estimated annual usages, duration of supply,
and warranty. Any changes to this Master Agreement must be communicated to the Buyer 90 days
prior to requested implementation. Master Agreements once agreed upon must be signed by the
supplier's Executive Management and by MTU America's Executive Purchasing Management. If no
Master Agreement is in place with a supplier the terms and conditions of MTU America will then
apply.
It should be understood that if the supplier has any negotiated pricing or Master Agreement with
any MTU Subsidiary that this pricing or Master Agreement will apply to all MTU Subsidiaries. The
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MTU Terms and Conditions are attached below.
MTU America Terms & Conditions
Production Part Tooling
Any production part quoted that requires tooling should include a break down in detail of the tooling
description, cost, and location. For cast product a tooling description form may be required to be
filled out and returned to the MTU America Tooling Engineer or Buyer. If tooling is paid for by MTU
America this tooling will be tagged as a MTU America asset and a discrete and separate PO will be
issued.
2
Materials Planning
Introduction
Each supplier will be assigned to a Material Planner. The job of the Material Planner is to assure the
efficient supply of parts to MTU America and, at the same time, as your contact person, handle any
questions you may have regarding the Released Delivery Schedule (i.e. quantities to be shipped,
delivery dates, etc).
MTU America, Inc. Planning Methodologies
Traditional MRP Planning
Traditional Material Requirements Planning (MRP) determines what assemblies must be built and what
materials must be procured in order to build those assemblies by the required date. MRP queries the bill of
materials and inventory information to derive the necessary elements for planning and scheduling. This
MRP method is the standard way that MTU America develops requirements based on both real and
forecasted customer orders.
Reorder Point Planning
Reorder Point Planning (ROP) is used when there is strong potential for the MRP process to fail on certain
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parts. This MRP failure could happen because of unpredictable demand due to part loss or inventory
misuse causing both sides to have to scramble to cover requirements. Therefore, parts that are often lost
and misused and have a relatively low cost will be planned using ROP.
ROP functions by setting a lower inventory limit at our warehouse that, once reached, will trigger a part
requirement to be added to the next Released Delivery Schedule. Thus, driving the supply of the part
based on real (not calculated) demand. Since requirements are based on real inventory and not
calculated, several future requirements will NOT be seen on your schedules; just the next firm order. We
will still be able to provide your company with forecasted needs for planning, but you will only see one
order at a time.
Replenishment Execution - Buyers vs. Planners
The Material Planner differs from the Buyer in the followings ways:
Buyers are responsible for:



Negotiating Prices and Terms
Establishing and changing Purchase Orders and Scheduling Agreements
Initial point of contact for Payment issues
Material Planners are responsible for:



Generating and communicating delivery requirements
Following up on shipment timing and accuracy
Providing information on forecast/future requirements
Replenishment Strategies
MTU America purchases parts in two different methods: Purchase Orders and Scheduling Agreements.
These purchasing methods are similar but also distinctly different in certain aspects. Please see below for a
detailed explanation of each.
Purchase Orders
A Purchase Order (PO) should be considered a confirmed commitment to buy and should be shipped
based upon the terms defined within the document. When a PO is sent to a supplier it locks in the
purchase price, quantity and delivery date. PO requirements will only represent real needs. Forecast and
planned requirements will not be seen by the supplier. For this reason, accurate lead times are needed so
that MTU America orders material with enough time for procurement and production to take place on the
supplier's side. PO's will be assigned a 10-digit number beginning with 4561xxxxxx.
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Scheduling Agreements
A Scheduling Agreement (SA) should be considered a PLANNED commitment to buy a fixed quantity for a
fixed duration and SHOULD NOT be shipped against until a detailed delivery schedule (Section 2.4) has
been provided. This is similar to a Blanket PO meaning that the agreements covers a fixed period of time
and will show requirements for the entire time window under different degrees of firmness. SA's will be
assigned a 10-digit number beginning with 4563xxxxxx for our Aiken plant, and 4600xxxxxx for our
Brownstown Plant.
How to Handle the Transition of Scheduling Agreements
A Scheduling Agreement's pricing and terms are only valid for a finite amount of time and as these values
can change for a number of reasons (i.e., quarterly surcharge adjustments or year-end changes) paperwork
information needs to stay tied to the correct SA number.
For example, below you will find a scenario where the same part number is on two different SA's. SA #1
ends on December 31 and SA #2 starts on January 1. The shipments on either side of this change need to
very clearly tied to the correct SA number and have the right pricing on the invoices according to the SA.
Without a clear transition, receipts and payments will not be correct. If there are any questions during a SA
transition, please contact your Material Planner.
SA #1
50 pcs
50
50
SA #2
50
50
Nov
Dec
50
Jan
50
Feb
50
Mar
50
Apr
Release Delivery Schedules - How to Read and Understand
Overview of Document
Requirements for MTU America production (Ship to: Graniteville, SC) and MTU America after-sales
(Ship to: Brownstown, MI) scheduling agreements are reported by means of a Released Delivery
Schedule. The Released Delivery Schedule is sent by EDI or Email to suppliers. The specified demand
corresponds to the preceding Delivery Requirements Report and is adjusted to reflect any increases or
decreases in schedule. The supplier should always use the latest Released Delivery Schedule for their
scheduling.
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Frequency of Transmission
Release Delivery Schedules are transmitted each week after individual schedule review by your
Material Planner for accuracy and optimization. Since this review is done individually for each supplier
the transmission day is subject to change, however we aim to keep a consistent day each week.
Released Delivery Schedule Field Descriptions
Please see attachments 2.4.3.a and 2.4.3.b at the end of this section for an example of what the
Release Delivery Schedule looks like and for detailed field descriptions.
Each Released Delivery Schedule has a header with overall information that applies to the entire
schedule. Then each part number is broken out into individual item level detail that gives you the
specific quantity required and timing of the requirements. Please note that all dates listed on these
report are need dates and not ship dates.
Amount of Schedule Shown on Report
The amount of released schedule and the way that these releases are shown (Days, Weeks and
Months) in each Released Delivery Schedule is variable and controlled by the Material Planner. The
standard release window is 3 months of released schedules for NAFTA-based suppliers and 6
months of released schedules for International suppliers. If lead times or other circumstances exist
that require more schedules to be shown each week, please contact the Material Planner and discuss
other options for window length and periodicity.
Changes and Cancellations
Released Delivery Schedules can change each week that they are sent out. As shown in Section
2.5.1, the only time frame that will not change without warning is the Firm Zone. Everything else
needs to be monitored for change each time a new released Delivery Schedule is sent out.
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Timing Zones
Firm Zones
The Firm Zone is a period of time in which existing schedules will not be deleted or moved by the
system without MTU America planner intervention. MTU America will receive all requirements that
show due within that date. This is also known as a "Go Ahead for Production".
Trade-off Zone
If a requirement falls within the Trade-Off Zone date, MTU America will commit to covering the
expense of the initial procurement of raw material, but not to the finished part price, should the
requirements be removed. This is also known as a "Go Ahead for Procurement".
Planning Zone
Outside of the Firm and Trade Off zone the rest of the schedule is considered the Planning Zone
and should be used for planning purposes only. This information is largely based on forecasted
information and MTU America will not commit to moving these orders inside of the Firm Zone at any
time. If the Firm and Trade Off zones do not encompass your entire lead time and you need more
committed time from MTU America, please contact your Material Planner to discuss your timing.
Supplier Responsibilities
Requirement Verification
Once the Released Delivery Schedule has been received each week, please verify whether the
delivery dates and quantities to be shipped can be met. The dates on the Released Delivery
Schedule represent dates of arrival of the requested material NOT shipping dates. When estab lishing
your shipping dates, please take into account the time required for shipping seen below in section
2.6.2.
Standard Shipping Times
Shipping time: European and International Suppliers
Air-Freight: approx. 2-3 days
Sea-Freight: approx. 5 weeks
Shipping Time: NAFTA-based Suppliers
Air-Freight: approx. 1-2 days
Road Freight: 7 days at the maximum
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Notification of Potential Shortage - Exceptions Only
Supplier must contact their Material Planner if they have analyzed their requirements and find they
CANNOT meet our requirements in the time frame listed. We do not require positive
acknowledgements, meaning, if you receive your weekly Released Delivery Schedule and can cover
all needs in time at the right quantity, then you do not need to tell us this information.
However if you cannot supply our stated requirements in the time frame shown you must contact your
Material Planner in writing as to alert them to this potential shortage. An email or fax would be
approved methods to do this. You can always call your planner, but we also ask that you follow up
this call with
something in writing to provide for the ability to track an issue. As always, if you do not know your
planner or cannot get a hold of them, please contact the department at the wfscheduling@mtu online.com email address.
Lot Sizing and Quantity Tolerances
Suppliers must only ship the quantities of part number on the schedule. Over shipments will not be
accepted. If you do not think that the amount listed as a requirement on your Release Delivery
Schedule meets your minimum or a box quantity, please contact your Material Planner to discuss
before shipping.
Please do not just ship the amount that you think is correct. This will cause problems in the U.S.
Customs and Border Patrol clearance process, receipts, and eventually in payment.
Lead Times - Supplier Input Needed
Standard Lead Times
Lead time plays a crucial role in the calculation of requirements. Please see standard leads (below)
that we have input into our system based on the supplier's location. This information will be used in
our system to allow us to plan on receiving a shipment within the time frame given. Meaning if we
have a demand arise 10 days in the future, but the Lead Time in the system shows 14 days, our
system will not automatically schedule that requirement. That being said, if your real lead times do not
fall into this general range please let your material planner know so that they can change our system.
Lead Times for Traditional MRP Planned Parts: Lead Time is defined as the amount of time needed
to finalize the production and ship the parts. This does not include time needed for procurement of
material or manufacturing since these parts will be forecasted and seen for an extended amount of
time.
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International Suppliers - 35 Calendar Days
Canadian and Mexican Suppliers - 21 Calendar Days
United States (Non-Midwest) Suppliers - 21 Calendar Days
Mid-Western U.S. Suppliers - 14 Calendar Days
Lead Times Needed for Blanket/Discreet Purchase Orders
As described in the purchasing section of this document, MTU America uses both Purchase Orders
and Scheduling Agreements to communicate requirements to the supply base. The Scheduling
Agreement can be seen as a “blanket Purchase Order” that covers a certain amount of time, and
could have several different requirement dates shown at once. This allows the supplier to plan their
material flow and see the forecasted requirements in the future.
Conversely, Discreet Purchase Orders represent only 1 requirement for an exact quantity at one point
in time and will not show subsequent requirements in the future. Therefore a good lead time is
needed to get the Discreet PO to the supply base in time to produce the material. Please make sure
that your Material Planner has a good lead time from you for parts that are on Purchase Orders.
Lead Times for Reorder Point Planning Parts
When a part is planned using ROP lead times will obviously be lengthened to accommodate this
lessened visibility. Please determine the length of time you will need to provide parts once a
requirement is triggered and sent to your organization. Once you know the number of days, please
communicate this number to your Material Planner. We are hoping that by sending you periodic
forecasts, raw material will be ordered and in the pipeline before the actual ROP requirement is sent
to you. Therefore lead times should primarily be comprised of the processing, manufacturing and
delivery time needed.
Lead Time for Reorder Point Planned Parts:
International Suppliers - 84 Calendar Days
Canadian and Mexican Suppliers - 42 Calendar Days
United States (Non-Midwest) Suppliers - 42 Calendar Days
Mid-Western U.S. Suppliers - 35 Calendar Days
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Material Planning Ship to: Info and Contact Info
Production Material (Graniteville, SC)
MTU America’s production facility is located in Graniteville, SC and is serviced by an off-site
warehouse that is managed by Menlo Logistics. Released Delivery Schedules will show the correct
Ship To: address for each part, but the standard address for production material is as follows:
Production Ship To:
MTU America, Inc.
Aiken Warehouse
1025 Textile Court
Graniteville, SC 29829
After-Sales Material (Brownstown, MI)
MTU America’s after-sales organization is serviced out of our warehouse in Brownstown, MI.
Released Delivery Schedules will show the correct Ship To: address for each part, but the standard
address for After-sales material is as follows:
After-sales Ship To:
MTU America, Inc.
After-Sales
19771 Brownstown Ctr. Ste 760
Brownstown Township, MI 48183
Departmental Contact Info
All Planning related questions should be routed to your specific Material Planner. However, if this
person is not known or you are not getting adequate responses please use the Material Planning
Department's group email address: wfscheduling@mtu-online.com and we will assist you.
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Attachments
1
Document Print Date
This is the date that the Delivery Schedule was sent out from the MTU
America system.
2
Scheduling Agreement
This is the Scheduling Agreement (SA) number and should be referenced
on all paperwork. You will receive a different Delivery Schedule for each
SA number that is assigned to your company.
3
Our Reference
This field is an internal reference field that can be used for a variety of
reasons. Please disregard this information for your supplier purposes.
4
Contact Person
This field contains the name of the individual who transmitted this delivery
schedule or if it is an automatic transmission (which most of them are) it
shows the MTU America buyer's name. As mentioned above the buyer
negotiates prices and terms, so if there is delivery issue, please
contact your Material Planner.
5
Telephone
This is the phone number that corresponds to the Contact Person.
6
Email
As with the Contact Person and Telephone number, this field shows the
email address of the person that transmits your delivery schedule.
However, if it was automatically sent, it will show a generic email address
of delsched@mtu-online.com. NOTE: This is not a valid email address,
as of November 2009 we are working to get this changed. Please do
NOT send information to delsched@mtu-online.com. If you do not know
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your Material Planner’s email address please send correspondence to
wfscheduling@mtu-online.com.
7
Vendor Number
This is the unique 6-digit code that is given to your organization. Please
reference this on all paperwork.
8
Please Deliver To
This is the Ship To: location for the part number(s) on the Delivery
Schedule. If the Ship to: is in the header of your Delivery Schedule then it
applies to the entire report, however if the Ship To: is listed under each
part number than it could be different by part number and should be
monitored to assure correct shipping.
1
Item Number
Each part number on an SA has an item number to easily identify
it. They are generally in 10-digit increments.
2
Transmission Number
This is a sequential counter that increases each time a part is
released.
3
Created On
This is the exact time that a requirements and delivery schedule
was released in our SAP system. If changes take place after this
time they will not be reflected until the next time this part number is
released.
4
Material
Commonly referred to as a "Part Number", this is the unique
identifier for the material that is being sold to MTU America, Inc..
5
Target Quantity
This is an estimated amount that will be bought during the life of
the Scheduling Agreement. The amount should not be used for
planning and is not the amount that we are firmly ordering. The
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Scheduled Quantity listed on the Delivery Schedule is the amount
that is due on the date listed.
6
Scheduled Quantity
This is the TOTAL number of pieces of the part that has been
scheduled to date. It includes all past requirements that may have
been received or are planned to be received in the future.
7
Delivered Quantity
This field shows the number of pieces that has been received to
date under this SA and Item No. If this part number was on a
different line/item no. on the same SA the Delivered Quantity will
start over.
8
Last Goods Receipt
This field shows last quantity received and which delivery note
number it was received under.
9
Firm Zone
The Firm Zone is a period of time in which existing schedules will
not be deleted or moved by the system without Material Planner
intervention. MTU America will receive all requirements that show
due within that date. This is also known as a "Go Ahead for
Production".
10
Trade Off Zone
If a requirement falls within the Trade-Off Zone date, MTU America
will commit to covering the expense of the initial procurement of
raw material, but not to the finished part price, should the
requirements be removed. This is also known as a "Go Ahead for
Procurement".
11
Delivery Schedule
The Delivery Schedule column is the main focus of this report. If a
date appears under this heading, it is the NEED date for the
part/material. If you have requirements listed in this column they
can fall under any of the zones (Firm, Trade off or Planning); See
Section 2.3 for more info on this topic. The requirement dates can
be shown as a Daily, Weekly or Monthly date; this is noted by a
preceding letter D, W or M respectively. Please assume the first
day of the Week or Month as the exact due date for your planning
purposes.
12
Outstanding Quantity
This is the exact number that is due on the delivery schedule date.
For example, if the line shows W 44.2009 under the Delivery
Schedule column and 6,650 pcs under the Outstanding Quantity
column this means that exactly 6,650 pcs are due no later than the
44th week of 2009 or October 26, 2009. Please do not over ship to
this requirement. Our system will reject all over shipments. If our
requirement does not match your minimum, or box quantity, please
contact your Material Planner to address this issue up front.
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Cumulative Quantity
This is the rolling cumulative of all of the parts that are outstanding.
For example, if you show 6,650 pcs due in Week 44 and another
2,000 pcs due in week 49 the Cumulative Quantity for the week 49
line would show 8,650 pcs.
14
Please Deliver To
This is the Ship To: location for the parts number(s) on the Delivery
Schedule. If the Ship to: is in the header of your Delivery Schedule
then it applies to the entire report, however if the Ship To: is listed
under each part number than it could be different by part number
and should be monitored to assure correct shipping.
3
Supplier Quality
Introduction
MTU America sees the relationship between itself and its suppliers as a partnership with the combined goal
of providing customers material of the highest quality and with the best service in the industry. MTU
America feels that the foundation that enables an organization to consistently supply a quality service or
product is a solid quality system. This section will lay out, in general terms, MTU AMERICA's expectations
for its suppliers who will be providing components or services to MTU AMERICA or its customers.
Quality Management System Requirements
Standard
MTU standard MTQ 5002, available online at http://www.mtu-online.com, provides the base minimum
quality system requirements for suppliers that will be providing material or services to MTU or industry
specifications. Although not explicitly stated, it is preferred that suppliers hold full 3rd party
certification to ISO 9001.
On-site Audit
MTU AMERICA reserves the right to perform an on-site audit of processes, procedures, equipment,
and personnel that will be employed in the manufacture, handling, and/or acceptance of MTU
AMERICA products at a time convenient for both parties. In most cases, an on -site audit is a
prerequisite before the establishment of a supply relationship.
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Quality Requirements for Supplied Material
To ensure all products provided by suppliers meet all MTU AMERICA requirements, the supplier must
provide evidence of compliance. This section will detail MTU AMERICA's initial sample submission
guidelines.
Material Initial Sample Submission, Inspection, and Approval Requirements
MTU standard MTQ 5003, available online at http://www.mtu-online.com, provides general initial
sample requirements. As stated in MTQ 5003, MTU also accepts documentation in accordance with
VDA and AIAG (Automotive Industry Action Group) Truck Industry specific PPAP standards.
An Initial Sample Submission Report (ISIR) must be supplied for all new or changed material unless a
written waiver is provided by MTU AMERICA Quality. Changes requiring MTU AMERICA to be
notified and a new ISIR submission include, but are not limited to:
o
o
o
o
o
Change manufacturing location
Change in method of manufacturing
Change in Sub-supplier
New tooling
Inactive for more than 3 years
As a general rule, MTU AMERICA must be notified and approve all changes before they are made.
Specific ISIR requirements can be communicated to suppliers in the purchase order, email, or
phone/fax, but at a minimum, all submissions must consist of the following, unless specified
otherwise:
o
o
o
o
ballooned MTU drawing to the latest engineering change level
inspection report containing actual inspection values displaying compliance with ALL drawing
and part specific purchase order requirements
material certifications
Signed cover sheet per VDA or AIAG PPAP Part Submission Warrant
When providing stock prior to ISIR approval, material must be marked with the Initial Sample
Approval Submission Tag seen in the attachment section of this document.
MTU AMERICA prefers that ISIR documentation be submitted to mtuddquality@MTU.com
Deviation to Requirements
Per MTQ 5003, material deviating from MTU specification cannot be supplied without express, written
approval from MTU Development and Quality Engineering. Forms for the Application for Deviation
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Allowance (AE) and Design Change Request (KAA) are available online at http://www.mtuonline.com.
If requested by Quality, suppliers must mark shipments of material under an approved AE using the
Deviation Submission Tag as seen in the attachment section of this document.
Workmanship
Workmanship standard MMN 332 available online at http://www.mtu-online.com, applies to all
materials except where prints or specifications provide specific differing requirements. This document
details critical information such as shelf life, packaging, and general tolerance requirements. It is
imperative for suppliers to be familiar with this standard.
Access to Industry and MTU Standard Specifications
The supplier is responsible for obtaining copies of all standards, MTU or otherwise, that are relevant
to materials or services provided. MTU AMERICA purchasing will provide MTU standards (MMN,
MTN, MTH, etc) upon request at no charge. Due to legal restrictions, all industry standards (DIN ,
ISO, ASTM, etc) must be obtained by the supplier at their own cost.
Plant Disruption
Customer satisfaction is paramount to MTU AMERICA. Providing nonconforming materials and/or services
to MTU AMERICA or its customers can severely damage the MTU AMERICA/Customer relationship.
When defects occur, they must be thoroughly investigated, resolution carefully planned, executed,
and verified in order to ensure the same or similar issues do not reoccur. This section will detail the
processes MTU AMERICA will employ to document and resolve issues.
Defect Notification
All significant issues will receive a unique defect issue number or Notification Report number. Within
the report, MTU AMERICA will provide:
o
o
o
Date defect was discovered
Description of the issue
Expectations for resolution of issue
The defect notification will be provided to suppliers via email or fax. In addition to communicating
issues to suppliers, the report provides data in the calculation of the supplier's performance metrics.
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Corrective Action Expectation
The supplier is required to provide a corrective action resolution within the MTU AMERICA required
timeframe. If material cannot be used as is, the supplier must at a minimum provide the following
information:
o
o
o
Return Material Authorization (RMA) or Scrap Disposition
Interim Corrective Action: How the supplier plans to contain defect while attempting to identify
or correct root cause of defect
Replacement/Certified Stock, if requested
If it is deemed that the supplier has not adequately responded to MTU AMERICA's requests, MTU
AMERICA may take the following actions without supplier consent:
o
o
o
Return goods at supplier's expense
Scrap material at MTU AMERICA at supplier's expense
Inspect material internally or externally or rework material at the supplier's expense
If MTU AMERICA requests that all supplied material must be inspected prior to shipment as a result
of an issue, it must be marked with the Certified Stock Tag as seen in the attachment section of this
document.
Defect Notification Chargeback Process
MTU AMERICA reserves the right to recover the following costs relating to a defect notification
including, but not limited to:
o
o
Labor charges for hourly and/or salaried personnel's time spent correcting the nonconformance (inspection, rework, etc)
Other costs relating to or resulting from the defective product Debits posted to a supplier's
account resulting from a defect notification will reference the defect notification number.
Return Material Process
When supplied materials must be returned or scrapped at a supplier's expense, MTU AMERICA will
create return purchase order and provide copy to supplier that will contain the following information:
o
o
o
o
Defect Notification number
Supplier provided Return Material Authorization (RMA)
Description of issue
Value to be debited to the supplier as a result of the return or scrapping of the material
The resulting debit note will reference the supplier provided RMA number /or return purch ase order
number resulting in a negative posting to the supplier's account. The debit resulting from a return
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purchase order may include the following:
o
o
o
Full purchase price of material
Shipping charges
Import/Export Charges
Specifications
MMN 332: MTU General Workmanship Standard
MTQ 5002: MTU General Quality System Requirements
MTQ 5003: MTU General Initial Sample Submission Report Requirements
MTQ 5011: MTU Quality Assurance Agreement for Suppliers (Series 1600)
Glossary
AIAG: Automotive Industry Action Group
DEFECT NOTIFICATION: Report used to communicate defective conditions
ISIR: Initial Sample Inspection Report
PPAP: Production Part Approval Process - Standard for initial and subsequent approval of parts
maintained by AIAG
Attachments
Initial Sample Inspection Report Submission Tag
ISIR SUBMISSION
TAG
Deviation Submission Tag
DEVIATION
SUBMISSION TAG
Certified Stock Submission Tag
CERTIFIED STOCK
SUBMISSION TAG
4
U.S. Customs Import Guidelines
PROCEDURE: HOW TO SHIP TO THE USA
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Purpose
To ensure compliance with U.S. law and strict adherence to U.S. Customs and Border Protection
(CBP) Regulations; expedite the clearance of imported items; eliminate fines, penalties, forfeitures,
and the seizure of inbound shipments.
Scope
This procedure applies to any country preparing a shipment to the United States which will be
consigned to any location at MTU America Inc.
Definitions
Country of Origin: The country where the goods were originally produced or manufactured.
Country of origin is not necessarily the country where the items were purchased; nor is it necessarily
the country from which the good was shipped.
Commercial Invoice: Invoice used for shipping purposes. Other acceptable invoices could be, but are
not limited to, Customs Invoice, Commercial Invoice, Shipping Invoice, or Invoice. By law proforma
invoices must be replaced with a commercial invoice – therefore, it is advised that all offices and
vendors use a commercial invoice which accurately reflects the sale of the merchandise (or
transaction etc…..)
Packing List: Required document for customs purposes that details the contents of the shipment by
box count, with gross and net weights listed. All shipments exported to the United States must include
a packing list.
Responsibility
4.4.1
MTU America Inc.’s Import Compliance Team has been given the authority and responsibility
to handle U.S. Customs clearance for shipments consigned to any U.S. location of MTU America Inc.
4.4.2
The Import Compliance Team is responsible for ensuring that all inbound shipping
documentation received is reviewed and processed per this procedure and meets the requirements of
the Title 19 Code of Federal Regulations.
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4.4.3
The foreign location shipping goods to the United States is responsible for providing all
required information per this procedure including courier shipments.
Procedure
4.5.1
Authorized U.S. Customs clearance for MTU America Inc.
The coordination of all U.S. imports will be processed by the U.S. Import Compliance Team.
4.5.2
All shipping documents where MTU America Inc. is the importer of record, must be forwarded
via e-mail to the MTU America Inc. Import Compliance Department at tradecompliance@MTU.com. In
the alternative MTU America Inc. retrieves the data from the freight forwarders.
If the shipment is handled by MTU America Inc.’s designated freight forwarders, the freight forwarder
will be responsible for forwarding the documents to the import compliance department on behalf of
the supplier. Please contact transportation@MTU.com for the corresponding routing and contact
information.
For Courier shipments: All inbound international courier shipments must include a pre-alert to the
Import Compliance Team. Include copy of the airway bill and commercial invoice. Any value listed on
airway bill must match the value on the commercial invoice.
Truck Shipments from Mexico: Commercial Invoice must be provided to the Import Compliance Team
at the time the shipment is picked up by the truck line.
Shipping Documents
4.5.3
Commercial Invoice (should say “commercial or customs invoice” only
The customs or commercial invoice must be in English, and provide an accurate and complete
summary of the contents of the transaction including the following detail:
-
U.S. consignee and address
P.O number, return order number, other return authorization, name of the person requesting
the goods, and if a return – the reason of the return.
Name and address of shipper
ICC Incoterm (FCA, CIP, DDP) with “named place” i.e. FCA Antwerp based on contract PO
Quantity of each item
Part number(s)
Unit value & total value for each item
Unit measure i.e. kg., pounds, pc., etc.
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A detailed, non-abbreviated, description of each item in the shipment, including model
numbers, grade or quality, and whether new or used. For parts, list the usage – for
measuring devices, explain what they measure. Include information on the composition of the
product such as type of steel, rubber, metal, etc.
Asset/serial number/work order number (very important for U.S. goods returned.)
Currency of invoice (prefer to be in US$) according to contract
NOTE: Parts which have been repaired outside the U.S. and are being returned must show the price
of repair (parts & labor) under the unit and extended price. Price of repair must be shown
regardless if receiving location is to be billed. The standard cost of the part should also be
mentioned in the item text description.
Discounts/Commissions, if applicable
Actual transportation charges, including packing and inland freight, must be identified
separately on the commercial invoice if billable. Estimated transportation charges are not
allowed. If transportation charges are not billable, i.e. equipment being sent for repair, then
the commercial invoice would be totaled to “FCA.”
NOTE: COPY OF FREIGHT FORWARDER INVOICE, RATED AWB, OR B/L SUPPORTING THE
TRANSPORTATION CHARGES MUST BE PROVIDED TO IMPORT COMPLIANCE TEAM PRIOR
TO U.S. ARRIVAL OF SHIPMENT OR IMMEDIATELY THEREAFTER.
-
It is mandatory to declare the country of origin specific to each item on the “commercial” or
“customs” invoice.
Printed name and signature of responsible employee who has knowledge, or can readily
obtain knowledge of the transaction.
The foreign shipper must complete the following declaration to be included on the commercial
invoice for all shipments of returned U.S. goods with an aggregate value over $1,250.00.
Declaration or invoice must be signed.
I, __________________, DECLARE THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF THE
ARTICLES HEREIN SPECIFIED WERE EXPORTED FROM THE UNITED STATES, FROM THE
PORT OF ______________________ ON OR ABOUT ___________, 20__, AND THAT THEY ARE
RETURNED WITHOUT HAVING BEEN ADVANCED IN VALUE OR IMPROVED IN CONDITION BY
ANY PROCESS OF MANUFACTURE OR OTHER MEANS.
4.5.4
Packing List – a required document on all exports to the United States
The packing list must provide the gross and net weight along with the dimensions of each package.
Each package is to be consecutively numbered and is to state exactly which items are packed within
each box. A copy of the packing list will be placed in a waterproof envelope and securely attached to
the outside of each package.
4.5.5
Country of Origin Declaration
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The commercial or customs invoice must accurately reflect the country of origin for each individual
line item contained in the shipment. The country of origin must be listed on the commercial invoice and
must match the product and/or container in which it is shipped.
NOTE: Observed markings on the goods which indicate a country should be the same as that named
on the “Certificate of Origin”, and the commercial and customs invoice’s
country of origin statement must agree with both. If there is any reason to believe the se indicators
may incorrectly designate the country of origin, this must be resolved prior to export. “European
Community, EU, EEC” are all not acceptable country of origin – the country itself must be mentioned
on the paperwork.
4.5.6
Export Packaging and Marking
Packaging of goods must be sufficient to withstand multiple handling during transit to their final
destination. Any loss of equipment and/or damage incurred due to inadequately packaged goods will
be the responsibility of the originating location. Each package must be marked legibly with indelible
ink. Marks to include consecutive numbering of boxes.
4.5.7
Country of Origin Markings
U.S. Customs regulations stipulate that every article of foreign origin imported into the customs
territory of the United States be marked with the English name of the country of origin of the article.
The origin marking must be in a conspicuous place as legibly, indelibly, and permanently as the
nature of the article will permit. It is suggested that the phrase “Made in …” or “Product of …” precede
the named country of origin.
Certain items are exempt from marking regulations due to the fact that they are incapable of being
marked, i.e. Ball Bearings 5/8” diameter or less, bolts, screws, and metal bars or ingo ts.
When an item appears to be exempt from the marking requirements, the outermost container or
holder in which the article ordinarily reaches the ultimate purchaser shall be marked to indicate the
country of origin of the article.
Prior to departure of the shipment, you must ensure all foreign origin items are clearly labelled
depicting the accurate country of origin of the goods. U.S. Customs is taking a tough stance on
marking violations. If found to be non-compliant, importer is subject to seizure of the shipment and/or
penalties.
4.5.8
Anti-Dumping Duties and Countervailing Duties
Some imported products carry duties in addition to the tariff rates of duty, called “Anti-Dumping
Duties” and “Countervailing Duties.”
The list of such products is constantly being revised, but some items that are imported into the United
States which are affected by such duties include ball, roller, and spherical bearings. The rate
assessed often depends on the manufacturer; thus, it is crucial that the commercial i nvoice specify
the name and address of the manufacturer.
-
For the first entry of a new bearing, the MTU America Inc. Bearing sheet (see attached) needs
to be sent to tradecompliance@MTU.com.
Felt gaskets and all articles of cloth-related materials must include a detailed composition of
the material, along with the complete name and address of the manufacturer stated on the
invoice.
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Steel tubes & wires require a mill certifications that documents the origin and composition of
steel used in the product. This document must be attached to the customs invoice at time of
importation.
4.5.9
Ocean Container Security
All containers must be inspected prior to loading. This inspection involves looking at all sides of the
container as well as the locking mechanism for the container. The supplier, in inspecting the
container, should look for false compartments, false walls or bolts and rivets that have been tampered
with. Containers failing inspection should be returned to provider..
Supplier must document this inspection and maintain the records, such as a container inspection
checklist and cargo security summary. These original documents must be filed by the supplier and
can be audited at an point in time by MTU America Inc.
4.5.10 C-TPAT
MTU America Inc. is partnering with U.S. Customs for the purpose of securing the U.S. and
international supply chains from possible intrusion by terrorist organizations. As part of the C -TPAT
process, CBP C-TPAT Supply Chain Specialists (SCSS) and MTU America Inc. will jointly conduct a
validation of our supply chain security procedures. If a supplier is selected to participate in an on -site
validation as part of MTU America Inc.’s C-TPAT validation process, the supplier is expected to
participate through on-site visit as well as completing the C-TPAT supplier questionnaire.
4.5.11 Hazardous Goods
Hazardous materials shipments must include a Material Safety Data Sheet (MSDS) for each
applicable product, and must be included in the shipping documents accompanying the shipment.
4.5.12
Personal Items and Household Goods
Employee’s personal items or work clothing are not to be combined with shipment of goods. There
are special customs requirements for personal effects that may delay clearance of shipment when
personal items are included. Household Goods are not covered by this procedure. Please contact
Human Resources if you see the need/wish to send personal items overseas.
4.5.13 Hand Carried Shipments
This procedure applies to any person traveling on behalf of MTU who may be carrying commercial
samples, laptops, company property, or any article(s) that must be declared to U.S. Customs.
Individuals who will be hand carrying company owned goods into the United States must make a
declaration with U.S. Customs at first port of entry into the United States. This includes any
promotional goods that are hand carried to the US. A commercial invoice containing details as per
previous description will be required by customs at time of declaration. If the value of the goods is
over USD 2,000, it is likely that customs will hold the goods for a formal entry to be filed.
It is the policy of MTU America Inc. to comply with all U.S. rules and regulations. A pre-alert to the
Import Compliance Team is required. All documentation should be submitted to the Import
Compliance Team after arrival into the U.S. and after clearance from customs. No exceptions are
allowed to this rule.
Customs has the authority to conduct enforcement examinations without a warrant, ranging from a
single luggage exam up to and possibly including a personal search. MTU America Inc. employees
must carry company documentation confirming that they are employees of the company, travelling on
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business, with a list of items they have in their possession, including parts, whether for repair or
replacement.
MTU America Inc. employees must declare
-
Items you purchased and are carrying with you upon return to the United States.
Commercial items you are carrying to the United States for any purpose, regardless of value.
Repairs or alterations to any items you took abroad and then brought back, even if the
repairs/alterations were performed free of charge.
Items you received as gifts, such as vendor gifts, birthday presents, etc.
Items you inherited.
Items you bought in duty-free shops or on the ship or plane.
Items you brought home from somewhere else
Items you intend to sell or use in business
Tools, dies, molds, etc. for an overseas job requirement, or tools of the trade, please contact
the Import Compliance Team for more specific guidance.
All employees traveling on MTU business coming into the United States must comply with any preregistration in the “host” country. Check with your logistics or shipping coordinator prior to departing
for the United States for their assistance in providing you with required documentation.
New photo and fingerprinting requirements in place for security purposes in the United States will
require the traveller to declare all items carried, therefore it is essential that the traveller carry proper
work papers.
Non Compliant Shipments
Shipments that fail to comply with the afore mentioned procedure will be reported to the shipping
location
via our corrective action plan. A timely response advising of the corrective action taken is requested
within one week.
Fines and Penalties
Any location that does not adhere to the requirements put forth in this procedure will be responsible
for all
fines, penalties, forfeitures, or seizure of goods incurred as a result.
Failure to follow the policy for “Hand Carried Items” may result in personal penalties assessed against
the individual, in addition to company penalties.
Records
Records will be maintained in accordance with customs regulations, which require a 5-year record
retention program for all documents that support the customs function.
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4.9
Attachments
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5
Packaging/Preservation
Introduction
The goal of MTU America’s packaging requirements is to achieve quality packaging processes that prevent
damage, reduce waste, increase productivity and minimize costs through a cooperative effort between us
and our suppliers.
Through the use of general guidelines and good planning, MTU America and our suppliers should achieve
packaging that is safe, economical and uniform. It is ultimately the supplier’s responsibility to ensure that
their parts arrive at MTU America in good quality condition and ready for production or sale.
The supplier should communicate with the packaging department early in the part development program,
to ensure proper packaging planning can be achieved for Production or Aftersales “Ready for Sale” parts.
Shipment Marking Requirements
Parts which are delivered to Production or After Sales Operations always must be labeled accordingly to
the “Production Parts Container Labels Specification” (CD-TFL-004) which can be obtained at the following
link. For any questions, please contact the Packaging Department (packaging@MTU.com).
CD-TFL-004
Production Operations
For parts delivered to the “MTU America Production Facility” in Aiken (plant 91) refer to the “Aiken
Packaging and Shipping Guidelines” (CD-TFL-001) which can be obtained at the link below. For any
questions, please contact the Packaging Department (packaging@MTU.com).
CD-TFL-001
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After Sales Operations
For spare parts delivered to the “MTU America Parts Logistics Center North America” (plant 90) refer to the
“Brownstown Packaging and Shipping Guidelines” (CD-TNL-012) which can be obtained at the link below.
For
any
questions,
please
contact
the
Brownstown
Packaging
Department
(packaging.brownstown@MTU.com).
CD-TNL-012
Expendable Packaging / Returnable Packaging
MTU America recognizes two types of packaging: expendable packaging and returnable packaging.
Expendable packaging should be designed to protect the part through the entire supply chain; from
supplier, through transportation and storage, to point of use at MTU America. This method of packaging is
designed for one use only, and will be disposed of after its use.
Returnable packaging refers to either MTU America owned or supplier owned containers that are used
several times to deliver parts through the supply chain. Returnable containers can be manufactured from
various materials including plastic, steel, wood, and even corrugated.
The decision between expendable and returnable packaging is derived from several factors including cost,
part protection, supplier location, etc. The MTU America Packaging Department will work closely with
assembly, logistics, purchasing and the supplier to determine whether a returnable container program is
economically justified for a supplier or part.
Further details on expendable and returnable packaging can be found in the “Production Parts Packaging
and Shipping Guidelines” (CD-TFL-001). Any questions or interests can be directed to the MTU America
Packaging Department by contacting packaging@MTU.com.
Packaging Approval Process
All production part packaging must be approved prior to the first shipment of production material and shall
require submittal of the “Packaging Data Sheet” (CD-TFL-002) detailing the supplier’s proposed method of
packaging. A copy of this sheet can be obtained by contacting the MTU America Packaging Department at
packaging@MTU.com
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Additionally, the following may be required prior to implementation:



Sample pack shipped to MTU America
Photographs and drawings of proposed packaging
Package testing
Changes to package quantities, packaging materials or dimensions require review and may require a resubmittal of the “Packaging Supplier Data Sheet” to the MTU America Packaging Department for approval.
Part Protection, Cleanliness and Preservation
Part Protection and Cleanliness
It is the suppliers’ responsibility to ensure that each part is properly packaged to arrive free of damage, dirt,
rust and moisture and should arrive in a manner that allows immediate delivery and use at our assembly or
machining lines without requiring additional handling, part cleaning or washing. Surface protection should
be provided to any part which requires the need, by using an approved protective material.
Preservation
Parts shall be received free of rust or corrosion and shall remain in such state up to point of use.
Note: Service parts may require longer storage times and may require specific packaging since the
material is for resale. Contact the MTU America Packaging Department for questions.
Further details on corrosion and rust prevention can be found in the “Production Parts Packaging and
Shipping Guidelines” (CD-TFL-001).
Packaging of Hazardous Materials
For information regarding hazardous material packaging, any questions or further help can be directed to
the MTU America Packaging Department by contacting packaging@MTU.com.
Import / Export
Certain restrictions and regulations apply to packaging material that crosses international borders. It is the
supplier’s responsibility to ensure all shipments meet the importing country’s import regulations.
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Regulations on Wood Packaging Material (WPM)
All wood packaging materials (WPM) imported into the United States must conform to the international
standard ISPM15 (IPPC) requirements, latest version and must bear the IPPC stamp, example below.
If this requirement is not met, the shipment can be rejected by US Customs and returned to the supplier at
the supplier’s expense. Suppliers that do not comply with this requirement are liable for any and all costs
and fines incurred by MTU America.
For additional information go to: http://www.aphis.usda.gov
Shipment Marking Requirements
Based on the commodity that is being packaged, markings may be required on the packaging to help
prevent incorrect handling, damage and accidents during handling and transportation. It is up to the
supplier to ensure that the packaging is marked accordingly.
If the packaging is not marked accordingly when the packaging poses a risk to safety of the material
handler or product, the shipper/packer of the load can be held responsible in the events of accident or
damage.
Please refer to the “Production Parts Packaging and Shipping Guidelines” (CD-TFL-001) for a complete list
of shipment marking requirements.
Production Parts Container Labels
MTU utilizes an AIAG B10 standard label format for container labels.
Container Label
Each box will use two Container labels, one each placed on adjacent corners.
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Master Label
Each pallet load of small containers will use two Master labels, one each placed on opposite sides of the
pallet load.
For more details, refer to the “Production Parts Container Labels Specification” available by contacting the
MTU America Packaging Department.
Any questions or further help on packaging requirements can be directed to the MTU America Packaging
Department by contacting packaging@MTU.com.
6
Accounts Payable
Introduction
MTU America Inc. Accounts Payable Department is committed to the timely and accurate payment of
invoices from our Suppliers. Such payments will be made in compliance with the defined Terms and
Conditions of the Purchasing Contract.
In Section 6.2 Invoicing Standards below, the requirements for submission of invoices to MTU America Inc.
for payment consideration are stated.
Invoicing Standards
Following are the Invoicing Standards for all invoices:
Minimum Requirements:
1.
Invoice must be billed and addressed to:
MTU AMERICA INC
ATTN: ACCOUNTS PAYABLE
39525 MACKENZIE DR
NOVI, MI 48377
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2.
3.
4.
5.
6.
7.
8.
9.
Each invoice must reference the Purchasing Contract issued at time of ordering (e.g., Purchase
Order or Scheduling Agreement)
Must clearly show the currency denomination of the invoice
Must be stated in English
Must be clearly legible
Must be a professionally created invoice that defines Vendor name and address
Must contain a unique Invoice Number
Must contain Ship to address where goods and/or services were delivered or performed
Must contain description of Goods/services provided (e.g. MTU Part number, type services
performed, etc.)
Failure to meet any of the nine (9) requirements above, will result in rejection of the invoice by MTU
America. In such cases of refusal, the invoice will be returned to the Supplier with explanation. The
Supplier does have the option to correct and resubmit the invoice.
Preferred Requirements
Business partners are encouraged to meet these preferred requirements. Failure to comply, may result in
delayed invoice processing and/or refusal of invoice.
Invoice should:
1.
2.
3.
4.
5.
Contain a valid MTU America Inc. Part number and Description, when available
Include Line item number of Purchase Order/Scheduling Agreement
Include Payment terms that align with the terms defined in the Purchasing Contract
Ensure that the Pricing of goods and/or service is in alignment with the current Purchasing
Contract
Ensure that Quantities invoiced do not exceed the Purchase Order quantity and should be billed in
increments of shipment (i.e. one invoice per shipment and/or delivery)
Invoice Submission
Invoices should be submitted via email to accountspayable@mtu-online.com or via Postal Service to:
MTU AMERICA INC
ATTN: ACCOUNTS PAYABLE
39525 MACKENZIE DR
NOVI, MI 48377
Invoice Processing
MTU America Inc strives to process our Suppliers’ invoices as timely as possible. With that, our goal is to
have the invoice reviewed, checked and entered for payment within 3 days of date of submission. It should
be understood that this timeframe assumes there are no variances or additional approvals required to
finalize payment of invoice. In cases where these occur, invoice processing could and will likely exceed 3
days.
During processing of the invoice MTU America Accounts Payable will;
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1.
2.
3.
Verify that all invoicing standards (defined above) have been met
Verify the invoice against the Purchasing Contract to ensure compliance of all items noted in the
contract.
If required, the invoice will be checked against any receiving or shipping documentation to confirm
quantities on the invoice do not exceed the quantities received or shipped.
Once these 3 points have been completed, the invoice will be entered into the MTU business system and
payments will be scheduled in accordance with the payment terms defined in the Purchasing Contract.
Payments to Suppliers
MTU America initiates payments twice a week. The payment runs occur on Tuesdays and Thursdays of
each week. Once an invoice reaches the due date as defined in the Purchasing Contract, the invoice will
be paid in the payment run closest to the due date.
MTU America’s preferred payment method is either ACH transfer for domestic Suppliers or federal wire
transfer for non-US Suppliers. These methods are not only cost effective but also greatly improve the
timing funds are available to our Suppliers.
MTU America has the ability to execute payments via check. If this is required, please contact the
Accounts Payable or Purchasing department. Please note, the check payment method may delay the
receipt and use of funds due to potential postal delays and funds availability by your financial institution.
Payment Inquiries & Disputes
Invoice payment inquiries and disputes should be made via email to the Accounts Payable email address
noted in Section 6.3. Suppliers may also contact the Accounts Payable department via telephone or fax, if
necessary.
Please understand that on occasion, inquiries may take an extended amount of time to research, but MTU
America Accounts Payable is committed to contacting the supplier within 48 hours of the original inquiry to
confirm that the request is being investigated.
Statement Submission
In order to ensure timely recording and payment of invoices, and accurate Accounts Payable records,
Suppliers should send a monthly statement of account to the Accounts Payable Department in Excel
format (preferred) or PDF via email to accountspayable@mtu-online.com. Statements may also be mailed
by Postal Service to the address listed in Section 6.3.
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Vendor Master Account Creation and Changes
In order to establish a vendor account with MTU America, the following must be submitted to the MTU
America Purchasing Department:
A Completed Vendor Master Maintenance Team Form (VMMT)
A current, valid IRS Form W-9 for US companies; or a current, valid IRS Form W8 for Non-US companies.
These forms may be obtained from your MTU America Buyer.
The VMMT Form should minimally include, in the spaces provided:
















Supplier Name (as shown on Form W-9/W8)
Corporate Address
Remittance Address (if different than corporate address)
Phone number
Product or Service supplied to MTU America Inc
Purchase Order Currency
Payment terms
Federal Tax ID number
Bank Name
Bank Location
Accountholder Name
Bank Routing Number (ACH for US vendors; Wire for non-US vendors)
*Be sure to include all leading zeroes(0)
Bank Account Number
IBAN (Non-US vendors)
SWIFT Code (Non-US Vendors)
Bank Code (Canadian vendors)
The instructions and requirements on the form should be followed and adhered to in order to ensure timely
creation of a Vendor Master Account.
Any changes to a Vendor Master Account must be communicated to MTU America in writing. Changes to
the following data must be submitted via a VMMT form:



Supplier/Company Name and Address (a current/valid IRS Form W-9/W8
must be provided)
Purchase Order Currency
Payment Terms
If the information listed above is not being updated/changed, all other changes may be submitted in writing
on Company letterhead to the Accounts Payable Department via email to accountspayable@mtuonline.com or via Postal Service to the address listed in Section 6.3.
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