SUPPLIER HANDBOOK
GKN LAND SYSTEMS
Contents
Introduction3
2|
GKN Land Systems:
Products and vision
Organisation 4–6
7
Supply Chain Management Policy 8–9
Supplier Performance Management:
Quality, Delivery, Cost, Management
10
Forecasting and Capacity Planning
11
GKN Lean Enterprise and Lean Supply Chain
12
General Supply Chain Conditions
13 – 17
Terms and Conditions
18 – 27
Dear Supplier
Welcome to the latest edition of the GKN Land Systems’ Supplier Handbook.
GKN Land Systems Division was launched in the first half of 2010 and is a leading global
supplier of technologically differentiated power management solutions and services. We
design, manufacture and supply products and services for the Agriculture, Construction and
Industrial segments, offering integrated powertrain solutions and through-life support.
Having brought together separate businesses into Land Systems in 2010, in 2013 we
further integrated all of our activities into ‘One Land Systems’. In particular, we are now
focused on offering ‘one face to the customer’, which opens up significant opportunities
for us to sell the full Land Systems product range to a broader customer base, allowing us
to drive growth in all market conditions.
We cannot succeed in isolation, and are entirely dependent upon our suppliers who form
a critical part of our integrated supply chain. We spend around £700m every year with
our suppliers and are striving to build long term strategic partnerships that are mutually
beneficial for GKN, our suppliers and ultimately our customers.
The challenge we must face together is to continuously improve the supply chain from
raw materials all the way through to our end customers. This requires strong collaborative
partnerships with suppliers and customers alike, and a desire to continuously monitor
supply chain performance so that we can constantly strive for further improvements.
Suppliers who wish to build strategic partnerships with GKN Land Systems will share
the same determination to improve by working with us, but also by being proactive with
their own internal continuous improvement journeys. Much of our success is built upon
offering our customers technologically differentiated products. Working closely with our
supplier partners to develop the product and process technologies of the future will be
critical as today’s global market becomes ever more competitive.
This Supplier Handbook provides an overview of the new ‘One Land Systems’
organisation and sets out the expectations we have of our suppliers in a number of key
areas. It is our intention in the future to make this and further information available
online, as well as sharing feedback on your performance across a number of indicators.
GKN Land Systems is committed to communicating openly and honestly
with our suppliers and customers, as well as adhering to the highest ethical
standards. We expect all of our suppliers to operate with the same integrity.
This is reflected in the ‘GKN Supply Chain Management Policy’ you will find
later in this handbook.
GKN has been a market leader in many sectors for over 250 years. We intend to
build on this position to extend and widen our competitive advantage with the
full support of supplier partners that are committed to relentless improvement
throughout the supply chain. We are confident that together we can build an
even more successful future over the next 250 years!
Paul Wyatt
Operations, Purchasing and Supply Chain Director
GKN Land Systems
Technology driven growth
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A leading global engineering
of quality and innovation, ope
Every day
at GKN…
We drive the wheels
of hundreds of
millions of cars…
We help thousan
of aircraft to fly…
Technology and engineering from GKN is at the heart of the vehicles and aircraft
defence manufacturers. More than 40,000 people work in GKN companies and jo
GKN operate in four key business areas:
GKN Driveline
GKN Land Systems
GKN Aerospace
GKN Powder Metallurgy
GKN Driveline is the
world’s leading supplier of
automotive driveline systems
and solutions. As a global
business serving the leading
vehicle manufacturers, GKN
Driveline develops, builds
and supplies an extensive
range of automotive driveline
products and systems – for
use in the smallest ultra
low-cost car to the most
sophisticated premium
vehicle demanding the most
complex driving dynamics.
GKN Land Systems is
a leading provider of
technology differentiated
power management solutions
and services. It designs,
manufactures and supplies
products and services for
the global agricultural,
construction, transportation,
utility vehicles and industrial
machinery markets. In
addition, it provides global
aftermarket distribution and
comprehensive through-life
support.
GKN Aerospace is a
world leading global first
tier supplier of airframe
and engine structures,
components, assemblies
and transparencies to a wide
range of aircraft and engine
prime contractors and other
first tier suppliers. It operates
in three main product areas:
aerostructures, engine
components/sub-systems
and special products.
GKN Powder Metallurgy is the
world’s largest manufacturer
of sintered components.
It comprises Hoeganaes
and GKN Sinter Metals.
Hoeganaes produces the
metal powder that GKN Sinter
metals uses to manufacture
precision automotive
components for engines,
transmissions and body
and chassis applications.
It also produces a range of
components for industrial and
consumer applications.
Armstrong, Wichita: Wheels
Dayton: Clutches, Brakes
Rockford: Driveshafts
Woodridge: Driveshafts, Wheels
GKN Land Systems offer an integrated Powertrain solution from the power source through to where the power is applied.
“Supporting customers in meeting the demands of a crowded planet. Our product technology delivers the power to
harvest crops, move earth, mine resources, handle materials and capture natural energy.”
Help leading global original equipment manufacturers keep the world running efficiently, reliably and safely.
Design, manufacture, market and service powertrain products and systems to transmit and control power
from source to application.
Enable agricultural, construction/mining and industrial customers’ machinery to propel, position and perform.
An Aftermarket & Services organisation ensuring that we continue to support customers and products to offer
through life support, using our own distribution and service centres across Europe.
4|
group, with over 250 years heritage
erating in more than 30 countries.
nds
…
We deliver the power
to harvest crops
and move earth…
And we make essential
components for industries that
touch lives across the globe.
produced by the world’s leading automotive, off highway, aerospace and
oint ventures in more than 30 countries.
GKN Land Systems
– manufacturing locations
Nagbøl: Wheels
Telford: Wheels, Structures
Grove: eDrive
La Guerche: Discs, Brakes
Ribemont: Reman driveshafts
Couplings
Clutches
Driveshafts
Gearboxes
Brakes
Controls
eDrive
Wheels
Tractor Attachment Systems (TAS)
Sensors
Discs
– engineering centres
Bruneck
Carpenedolo
Dessau
La Guerche
Lohmar
Rockford
Unna
Woodridge
Tokyo: Driveshafts
Carcastillo:
Reman driveshafts
Taicang: Brakes, Couplings,
Clutches, Controls
Huading: Wheels
Liuzhou: Wheels, Driveshafts
Bruneck: Driveshafts
Carpenedolo: Wheels
Cachoeirinha: Driveshafts
São Paulo: Clutches,
Brakes, Couplings
Dessau: Brakes
Lohmar: Driveshafts, TAS
Sohland: Gearboxes
Unna: Clutches, Brakes, Couplings, Controls, Sensors, Discs
Pune:
Clutches,
Brakes
5|
GKN Land Systems
The ever changing world in which we live brings
with it new opportunities… and takes GKN’s
capabilities to new markets.
With a focus on technology leadership, lifetime costs and aftermarket services, GKN Land
Systems is an operationally excellent global manufacturing business delivering value and
reliability to its existing and new markets.­
GKN Land Systems’ drivers for new business
opportunities
The world has an ever increasing population and
ever decreasing availability of land and water
resources. Changing diets and the migration of
labour places growing pressure on improving
yields, automating farming and construction.
The market trend towards electrification of
vehicles as a means to facilitate increasing
efficiencies, already seen in automotive,
brings opportunities for GKN.
Increased urbanisation, development of
existing infrastructure and new mass transit
transportation systems means opportunities are
emerging to utilise capabilities already practised
by GKN in the passenger car or light commercial
vehicle sectors.
Growth in renewable energy around the
globe, driven by scarcity of resources: land,
water and oil, is resulting in new opportunities
which align with our capabilities in terms
of use of lightweight materials, drive and
positioning systems and high integrity
structures.
The trend in the military environment sees
lighter, more agile, well protected all-terrain
vehicles, providing high level performance with
high occupant protection provides new market
opportunities in terms of driveline, structures,
lightweight materials and ballistic protection.
GKN recently acquired Williams Hybrid Power
Limited, the new business will be known as
GKN Hybrid Power. The company specialises
in the design and manufacturer of composite
flywheel-based energy storage systems which
reduces fuel consumption and emission while
increasing efficiency. This provides the
opportunity to industrialize exemplary
technology to global markets, helping solve
the emissions and efficiency challenges faced
by nations around the world.
Is leveraging GKN group wide technology
to provide value added systems and solutions
to existing markets and their aftermarkets.
GKN Land Systems
Looks to exploit GKN’s capabilities in existing
and new markets to more effectively serve
existing markets and their aftermarkets.
Will bring GKN group wide technology and
operational capability to new attractive markets.
Is delivering through a world class global
capability.
GKN Land Systems offers a full range of integrated electro-mechanical PowerTrain components, systems
and solutions that transfer power from the source to your application and with a continually expanding
capability for electric and hybrid drives.
6|
Technology driven growth
GKN Land Systems Organisation – Purchasing
Phil Swash
CEO GKN Land Systems
Patrick Mares
Simon Meadows
Dr. Robert Rank
Paul Wyatt
VP, Sales &
Business
Development
Finance &
IS/IT Director
Engineering & Product
Management
Director
Operations, Purchasing
&
Supply Chain
Director
Wolfgang Lemser
Stephen Schrahe
MD Global
Services
Human
Resources
Director
Keith Lister
Gary Jacklin
Paul Gurney
Andreas Kaufmann
Lars Lykke
Director,
Global Steel &
Capex Purchasing
Director,
Supply Chain
Excellence
Director,
Global Commodity
& Indirect
Purchasing
Manager,
Supply Chain
– EU Shafts
Manager,
Supply Chain
– EU Wheels
Herbert Roenchen
Marc Mueller
Dave Hatton
Bernd Ludewig
Guido Rossbach
Manager,
Purchasing
EU Motion
Controls
Director,
Purchasing &
Supply Chain
America & Asia
Manager, Purchasing
& Supply Chain
Structures & Wheels
Europe
Manager,
Purchasing
Driveshafts
Europe
Director, Purchasing
& Supply Chain,
Powertrain Services
& Solutions
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GKN Land Systems
Supply Chain Management Policy
Statement of Policy
GKN operates to high standards of integrity, honesty and fair dealing through a lean
organisation which produces world class products. Our suppliers are integral to our continued
success and it is essential that they conduct their business in a manner that supports this
commitment to strong ethical standards and a world class performance. To this end we aim to
develop and maintain value-adding relationships with our supply base.
General Principles
In their dealings with suppliers and potential
suppliers, all GKN companies must:
-
-
-
-
-
-
-
Before engaging a supplier, take account of its
standards of behaviour and avoid dealing with
any supplier that might damage GKN’s reputation
through its association with suspect or unethical
practices. Amongst others, these may include:
Inadequate health and safety standards for
their employees.
Infringing internationally accepted standards
of workers’ rights.
Use of child or forced labour.
Unsound environmental practices.
Failure to act ethically.
Poor standards of social responsibility.
Failing to comply with relevant laws and regulations.
Before contracting with a supplier, take
appropriate steps in order to eliminate risks
of corruption, including:
- Make suppliers aware of GKN’s Ethical Standards
Policy.
- Ensure suppliers themselves have anti-corruption
policies and procedures in place, and require the
suppliers to ensure their sub-contractors comply
with similar policies and procedures.
- Carrying out due diligence on the supplier
proportionate to any identified risks.
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-
-
-
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Employ effective processes for procurement,
risk management, supplier assessment,
communicating with suppliers and monitoring
their performance, in order to ensure that:
We do business with suppliers who meet our
standards of technical competence, innovation,
product quality, reliability, delivery performance,
cost, financial soundness, safety, ethics and
social responsibility.
Supply of the product or service does not infringe
any third party intellectual property rights.
Where suppliers provide contractors or staff to
carry out work at GKN premises, such persons
operate in an acceptable and safe manner without
undue risks to themselves, GKN employees or
others, and the health, safety and other essential
arrangements pertaining at the site where they are
operating are fully communicated.
All hazards and risks associated with the use of
the products/services supplied are properly
identified and assessed and adequate
safeguards and working practices are put in place.
Technology driven growth
Commit to development of the supply chain
through:
- Developing long-term relationships where it is
practical to do so.
- Assisting suppliers in their development by
assessing their capabilities and needs and
providing support such as training where
appropriate.
- Providing regular feedback from and to suppliers
on both their own contribution and that of GKN to
the supply chain.
- Sharing of best practice to build on the strengths
of GKN and the supplier to optimise the whole
supply chain.
Conduct business in an open and ethical
manner by:
- Requiring our employees to act with integrity at
all times when representing GKN with suppliers.
- Ensuring that suppliers are paid in accordance
with agreed terms.
- Determining through clear contractual
arrangements the ownership of any intellectual
property rights arising from the supply of the
product/service.
- Avoiding situations that create conflicts of interest
for organisations and/or their employees.
- Not tolerating corrupt practices or the acceptance
of bribes, other unauthorised payments or
inducements from suppliers or potential suppliers.
- Safeguarding the ownership and security of the
property and confidential information of the
supplier.
Balance the economic needs to utilise low cost
sources with the desire to support local commerce.
Where low cost sources are used, they will be
subject to all of the requirements set out here;
Use contractual terms and conditions that
support the implementation of this Policy and
review supplier performance in order to ensure
compliance.
This Policy must be read in conjunction with
the GKN Code, any written guidelines, the
GKN Land Systems Ethical standards Policy,
the other GKN Policies and the requirements
regarding their implementation.
For further information visit
www.gkn.com/corporateresponsibility
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GKN Land Systems
Supplier Performance Management
Quality, Delivery, Cost, Management, Technology
In today’s global market, success is dependent on an integrated supply chain, from raw
material to end user. GKN Land Systems’ objective is to continuously improve the supply chain
by developing co-operative partnerships with our suppliers and customers, where possible
integrating suppliers within our processes.
Supplier Performance is therefore a vitally important
element of our success; this is currently measured
locally by the sites (as detailed in the appropriate
site Quality Manual), but will be integrated and
assessed against the following targets:
Quality – defect rate <10ppm
The review involves a face to face meeting on
the supplier’s site involving senior leadership/
management. The purpose of the meeting will be
cross functional and would generally include a tour
of the site. The standard agenda is:
Delivery – on time delivery (including quantity)
>98%
•Safety
Cost – cost down initiative/VA/VE 5% pa
•Quality
Management – continuous improvement
– Lean e.g. Lead Time Reduction 20%
Supplier performance will be reviewed at a formal
Supplier Business Review or Quarterly Review for all
key and major suppliers, which will then be the basis
for agreeing joint improvement activities, supplier
developments etc.
GKN Supplier Business Review
The Supplier Business Review is a formal business
review process between GKN Land Systems and our
key suppliers, covering all aspects of our business
together. The goals of the reviews are simple –
improve customer satisfaction, risk mitigation and
build better business results and relationships to
continue to strive for a true partnership.
10 |
What is the Supplier Business Review?
•Delivery
•Cost
•Technology
• Relationship Management
Why is the Supplier Business Review important?
GKN Land Systems consider the Supplier Business
Review an important meeting because we consider
suppliers an extension of our business. It helps us to
create a better understanding of total supply chain
and market pressure on cost and flexibility.
Technology driven growth
Forecasting and Capacity Planning
Yearly budget forecast and capacity planning
For Key Commodities, each year a budget forecast will be provided for the following calendar
year based on GKN’s sales budget. This information will form the basis for any agreements
regarding available capacity. This forecast information is for planning purposes only and is
provided to the supplier in good faith and represents GKN’s best estimate at the time of issue.
It is, however, a non-binding forecast.
Forecasting
In order for the supply chain to function efficiently,
our customers, our suppliers and their suppliers
need to be operating at the same pace. Just as
material must flow through the supply chain towards
the end user, information concerning this pace must
flow backwards towards the suppliers.
In order to fulfil this requirement for information flow
GKN companies will provide rolling forecast data
for a 3 to 6 month period on a monthly basis. Due
to market variations and other unforeseen factors
this forecast information cannot be considered
a guarantee of future demand. It does however
represent GKN current best estimate of the future
demand situation and reflects the information used
by GKN for internal planning.
GKN does not commit to purchasing materials
outside of agreed lead times unless otherwise stated
in the purchasing contract.
Flexibility and responsiveness
Whilst GKN will make all reasonable endeavours to
provide accurate forecast data, both GKN and our
customers operate in a very competitive market,
where flexibility and responsiveness to market
demand are the key to success.
GKN may therefore ask suppliers to set up
Consignment Stock Warehouses local to our
manufacturing locations, particularly for long lead
time items and/or where the transport lead time
from supplier to GKN site is more than 2 weeks.
Call off scheduling
In general, the purchase of production material
will be by daily or weekly call offs from an open
purchase order. These call offs will be in the form of
a schedule, which consists of a fixed period, a semi
fixed period and beyond this, a forecast.
For further information contact us at:
purchasing.landsystems@gkn.com
11 |
GKN Land Systems
GKN Lean Enterprise and Lean Supply Chain
For GKN Lean represents the systematic pursuit of perfection and waste reduction within the
organisation through continuous improvement. Lean thinking is a part of everything we do
and has become a part of GKN’s culture.
The Lean Enterprise (LE ) model, developed by GKN plc in 2003, uses a system of tools and measures to
facilitate and track continuous improvement throughout the GKN Land Systems organisation. Tools, such as
5S and Visual Management, provide a common approach for manufacturing and support operations.
A common set of performance indicators is focused on several key items such as Not Right First Time and
Value Added Per Person.
Each GKN site has at least one designated Site Continuous Improvement Leader
(SCIL) to provide focus and leadership to the location. A comprehensive,
46-week leadership training program involves all GKN divisions and is
designed to ensure that site leaders have the necessary skills to
co-ordinate and lead continuous improvement activities.
GKN
Vision
Production
Excellence
GKN has focused heavily on creating a flow in the value stream.
This flow can be broken down into three levels:
- Level 1: Flow in the production cell
Business
Process
Excellence
People Excellence
- Level 2: Flow within the factory
Business Excellence
LEAN ENTERPRISE
- Level 3: Flow in the supply chain, from suppliers
through to customers
The third level of flow is arguably the most important as it can have the greatest impact on the value provided
to an end customer. GKN therefore places a great importance on the co-operation of our suppliers and
customers in the Lean process.
One of the Lean tools used extensively by GKN in the area of supply chain improvement is Value Stream
Mapping (VSM). VSM is the process of graphically representing all of the steps within
a given process from start to finish. The current state map is then used to identify
waste and plan an improved future state. The process being mapped could be
anything from a single production cell through to an entire supply chain from
raw materials through to the end user. When the value stream extends
beyond the walls of a single company it is called Extended Value
Stream Mapping (EVSM).
As a supplier to GKN Land Systems, it is likely that you will be asked
to participate in the EVSM process. Your support in this area
is expected and appreciated.
The principles of Lean Enterprise will be applied also in the area
of Supply Chain Management. This will allow us to achieve
Supply Chain Excellence.
SUPPLY CHAIN EXCELLENCE
LEAN SUPPLY CHAIN
For further information visit www.gkn.com/aboutus/lean-enterprise
12 |
Technology driven growth
General Supply Chain Conditions
Call-Off Scheduling
• In general, the purchase of production material will be by daily or weekly call-offs from an open
purchase order.
• These call-offs will be in the form of a schedule, which consists of a fixed period, a semi-fixed period and
beyond this, a forecast.
Consignment Stock
• Where beneficial, GKN will request that the supplier set up a consignment stock. In general, the
consignment stock will have fixed minimum and maximum stock levels and will be managed by the
supplier.
• Commercial details of the consignment stock will be detailed in a separate contract.
Supply to Order
• In certain circumstances suppliers will supply directly to GKN against specific fixed purchase orders.
• This is, however, not a desirable solution for normal production materials. Lead times and payment terms
will be stated within the purchasing contract.
Supplier Call-Off Warehouse
• When advantageous to the supply chain a supplier call-off warehouse may be utilised. This is generally the
case when a high volume supplier has production sites with a transport lead time of more than 2 weeks
from the GKN site in question.
•
The warehouse is maintained by the supplier at a location near to the GKN site being supplied. The
warehouse contains a minimum safety stock of material for GKN as well as the normal flow of production
materials based on forecasts and demand schedules. Material is then called-off from the warehouse by
GKN in agreed lot sizes with a lead-time of 1-3 days.
• The safety stock held by the supplier in the warehouse may either be an agreed fixed amount or a variable
amount based on forecast demand for the coming months.
• Specific conditions and parameters regarding the call-off warehouse will be specified in the purchasing
contract.
Demand Forecast
& Call-Offs
Supplier Production
Demand Schedule
Supplier Local Warehouse
13 |
GKN Land Systems
Material Custody
• All production materials remain the property of GKN at all times. Materials enter the custody of the
subcontractor when they are collected by the subcontractor at GKN or delivered to the subcontractor.
•
All materials remain in the custody of the subcontractor until acceptance by GKN’s goods receiving
department. The subcontractor accepts responsibility for any damage, loss or deterioration of materials
which occurs while in his custody. The subcontractor also accepts responsibility for any ensuing cost
related to the damage, loss or deterioration of materials in his custody. This may include but is not
limited to the cost of replacement materials and expedited freight for both replacement materials and
processed materials further along the supply chain.
Material Storage • The subcontractor agrees to store materials in accordance with best practice while in his custody.
• This includes protection against corrosion or any other physical or chemical damage. The supplier also
agrees to store material according to the FIFO (First In First Out) principle. The supplier will immediately
inform GKN if materials in his custody are damaged, lost or rendered unusable in any way.
Direct Delivery of Material
• In the case where material purchased by GKN is delivered directly to the supplier by a third party,
material becomes the property of GKN when accepted by the supplier. As a minimum the subcontractor
will be required to check the quantity of material delivered. The supplier may also be required to carry out
quality checks on the material. The subcontractor must report any deviations to the nominated GKN
supply chain contact immediately.
Stock Control
• Stock levels held by the subcontractor shall be kept up to date by the supplier and GKN Land Systems
advised accordingly.
Identification of GKN owned materials
• All GKN owned material and GKN tooling whether
provided by GKN or purchased by GKN shall be
segregated and conspicuously labelled or designated
as the property of GKN. Further, it shall be
accounted for as material held for GKN. In addition,
the subcontractor shall ensure that any financing
statement filed as to the subcontractor’s property
to specifically exclude material and tools owned
by GKN.
14 |
Technology driven growth
Packaging
• Packaging must guarantee protection against any quality concern that may arise between the supplier’s
production and the beginning of production at GKN (e.g. rust and physical damage).
•
All packaging materials must comply with all laws and regulations, including in regards to health and
safety and environmental protection, of both the sending and receiving countries as well as any third
parties involved in the storage or transport of goods. It is the supplier’s responsibility to ensure that
these requirements are met.
• When practical, reusable packaging shall be employed. Exact packaging requirements will be provided
to suppliers in the form of a packaging specification or approval of a supplier’s packaging
recommendations.
• In the event that a packaging solution is recommended by the supplier, responsibility for the suitability
and legality of packaging remains with the supplier, regardless of approval by GKN.
Documentation
• Labelling and documentation should be in accordance with the requirements of the receiving site.
Transport
• Detailed transport instructions including Incoterms will be stipulated in the purchasing contract.
• Where the supplier arranges delivery, transport method and frequency between the supplier’s site and
the GKN location shall be agreed with the GKN supply chain function.
• Goods receiving department working hours vary from site to site. Contact the local GKN supply chain or
purchasing function for hours of operation. Deliveries outside of normal hours of operation will not be
accepted unless agreed in advance.
Delivery Problems
• The supplier must make every effort to avoid arrears
against the agreed schedules. If a delivery problem
occurs or is foreseen by the supplier, the supplier
must alert the GKN location immediately.
GKN reserves the right to check the delivered total
quantity and the quantity per bin. Non-conformance
with quantities declared in paperwork is a severe fault
and will lead automatically to the issue of a
concern report.
15 |
GKN Land Systems
Incorrect & Excess Deliveries
• In the event that excess material or the wrong material has been delivered, the supplier shall be
informed of the error immediately. A compromise solution may be met; however, GKN reserves the
right to return the material in question at the supplier’s cost. Incorrect or excess deliveries will result
in a concern report.
Special Transport
• The supplier shall inform GKN if an agreed delivery schedule will not be fulfilled in time and provide
a new delivery date. In such a case, GKN will assess the new delivery date and inform the supplier if
expedited freight will be required. If expedited freight is deemed to be necessary, the supplier will
accept responsibility for costs. The use of expedited freight in such cases is at the discretion of GKN.
• Expedited freight at the cost of the supplier may also be required in the case of quality discrepancies
or shortfalls in delivery quantity.
• GKN will only accept responsibility for expedited freight if an earlier delivery date has been requested
outside of the agreed and accepted lead-times and/or order flexibility as detailed in the purchasing
contract.
Quality System Requirements
• The preferred Supplier Quality System certification requirements are to be certified by an accredited
third party Certification body to TS 16949:2002 or ISO9001:2000 with evidence provided to GKN with
a copy of a Certificate.
•
The minimum Subcontractor/Supplier Quality System certification requirements as stated in
TS 16949:2002 or ISO9001:2000 standard is, (unless otherwise specified by the customer):
Suppliers to GKN shall be 3rd party registered to TS 16949:2002 or ISO9001:2000 by an accredited
certification body or other requirements locally agreed.
•
Each GKN site shall manage each Supplier’s Quality
System Certification compliance status by obtaining
evidence of Certification and provide the results to
GKN purchasing function.
•
For each new subcontractor added to the supplier base,
evidence of compliance shall be provided to GKN Land
Systems Purchasing prior to issuing of purchase orders
for series production.
16 |
Technology driven growth
Risk of Business Interruption
• The supplier must prove that his facilities are well protected against risk of business interruption
(e.g. fire, arson, environmental pollution). Special emphasis is placed on housekeeping in potentially
hazardous areas. Third Party Audit results and certificates from insurance companies are acceptable
and should be made available to GKN Land Systems.
•
The supplier shall maintain an emergency strategy with the goal of ensuring supply in the event of a
disruption to the normal production and procurement processes. The plan may include but is not
limited to alternative production locations, alternative sub-suppliers, or safety stocks. The supplier
shall make available an up to date emergency strategy summary to GKN Land Systems.
• GKN encourages suppliers to adopt Total Productive Maintenance (TPM) as part of an overall risk
reduction strategy.
Planned Shutdown Periods
• The supplier must inform the GKN supply chain function via Email of any planned shutdown periods
with 3 months notice. GKN will assess the impact of the shutdown on material planning. If requested
the supplier must provide alternative means of delivery (against call-offs or otherwise) during the
shutdown period. This may include the suppliers despatch remaining open on certain days during the
shutdown period.
• The supplier must provide an appropriate contact number for the duration of the shutdown period.
Tooling & Equipment
• Any and all tooling owned by GKN, which is in supplier’s possession or possession of supplier’s agents
shall remain the property of GKN. The supplier shall mark such tooling as the property of GKN.
Such tooling shall not be sold, assigned by way of security, pawned, mortgaged, charged or otherwise
encumbered or disposed of nor used for the manufacture of goods for parties other than GKN without
the express prior written consent of GKN.
Supply Chain Audit
• GKN reserves the right, given reasonable notice, to
inspect any supplier premises where material
destined for GKN is stored, processed, assembled
or despatched for the purpose of ensuring compliance
with this document and any other agreements.
17 |
GKN Land Systems
Standard Terms and Conditions of Purchase - UK
These are a sample of the UK Terms and Conditions. Please follow the link for the latest T&Cs and for your relavent country and translation:
www.gkn.com/landsystems/about-us/Pages/Suppliers.aspx
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1.
DEFINITIONS AND INTRODUCTION
“we”, “us” and “our” refers to the applicable purchaser among GKN AutoStructures Ltd, GKN Driveline Services Ltd,
GKN Land Systems Ltd, GKN Stromag UK Ltd, Chassis Systems Ltd or other members of the Group.
“Group” means GKN plc and its group companies.
Our agreement with you (the “Contract”) consists of:
(i) any duly signed contract which applies to our purchase of goods and/or services from you;
(ii) any purchase order or delivery schedule order (an “Order”) that we issue to you and you confirm;
(iii) these General Purchasing Conditions;
(iv) any specifications and safety, health and environmental requirements that we agree with you;
(v) any supplementary terms and conditions of purchase that we agree with you; and
(vi) our quality and other requirements or procedures which can be found at www.gkn.com/landsystems, or are otherwise made
available to you. If there is any inconsistency between any parts of the Contract, the parts placed higher in the list will prevail.
2.
YOUR CONDITIONS EXCLUDED
If you seek to impose additional or different terms on our purchase, they will not form part of the Contract and are excluded and
rejected by these General Purchasing Conditions.
3.
3.1
DELIVERY
You must deliver goods and/or services that we order in accordance with the delivery terms and dates set out in the Contract. If any
goods and/or services are not delivered on time or are delivered incorrectly, we may terminate the relevant Order.
3.2
Goods must be delivered DDP (as defined in current Incoterms), unless another part of the Contract states different delivery terms.
Ownership of the goods you deliver will transfer to us on delivery.
3.3
All goods must be packaged so as to protect them adequately before, during and after delivery and, if we require, each delivery shall
be accompanied, in a form acceptable to us, by a certificate of conformity and/or an up-to-date material safety data sheet.
4.
4.1
QUALITY, REJECTION AND INDEMNITY
Any goods supplied by you must be: (i) of the quantity and description specified in the Contract; (ii) of satisfactory quality; (iii) fit for
their normal purpose and any specific purpose we inform you about or which you ought reasonably be aware of; (iv) free from defects
in design, material and workmanship; and (v) free from any encumbrances.
4.2
Any services supplied by you must be: (i) performed efficiently, safely and competently by suitably qualified and experienced
personnel, in conformity with any applicable industry code of practice; and (ii) of the quality which would reasonably be expected
from a skilled and experienced operator providing equivalent services in the same circumstances.
4.3
Any goods or services (and any associated technology) supplied by you must: (i) comply with all applicable legal requirements and
regulations, including those relating to transportation, health, safety and the environment; (ii) not infringe the intellectual property
rights of any third party; (iii) conform to any specification or other requirements referred to in the Contract; and (iv) conform to any
sample approved by us.
4.4
We may (but are not obliged to) inspect and test the goods delivered by you and may reject and return (at your risk and expense)
any goods that fail to conform with the terms of the Contract. You must replace such rejected goods within a reasonable time
(being not more than 15 days after notice of rejection) with goods which do comply with the Contract.
4.5
You will reimburse each member of the Group for all losses, damages, costs and expenses (including reasonable legal fees) or other
claims (including third party claims and costs relating to recalls and service measures implemented by our customers or their
customers) arising from or incurred as a result of: (i) any breach by you of the Contract; and (ii) any negligent act or omission by you
or your employees, agents or sub-contractors in supplying goods and/or services pursuant to the Contract.
5.
5.1
INVOICING AND PAYMENT
We will pay you the price set out in the Contract (which will be inclusive of delivery costs and exclusive of sales tax) for the goods and
services that you deliver in accordance with the Contract. You may only invoice us after delivery of the goods and/or services ordered
by us and in accordance with any payment schedule in the Contract.
5.2
Invoices must show: the date of delivery, Order number, delivery address and description of goods/and or services delivered, and
must be sent to the invoice address specified in the relevant Order.
5.3
Unless otherwise set out in the Order, payment will be due from us within 90 days of the Thursday following the end of the month
of receipt by us of a validly issued invoice.
5.4
We may deduct from the price of the goods and/or services ordered by us any sums due to the Group under the Contract or any other
contract between you and the Group.
Technology driven growth
6.
6.1
CONFIDENTIALITY AND INTELLECTUAL PROPERTY
You must not disclose to any other person or entity any confidential information belonging to the Group or any of its divisions, customers,
suppliers or collaboration partners (including, without limitation, this Contract, specifications, formulae, manufacturing processes, knowhow and any technical or economic information) or use such information for any purpose except for the supply of goods and/or services
to us or as expressly authorised in writing by us. You must return to us such information and any copies if requested.
6.2
You must, on request, transfer to us, free of charge and free from encumbrances, any documents, specifications, plans, drawings,
samples, information or goods created or prepared for us by you or your employees, subcontractors and consultants, which we may
use without any charge.
6.3
Intellectual property rights in any information, documentation, prototypes or tooling provided by us to you shall remain owned by
us or our customers or our suppliers and shall only be used for the sole purpose of supplying goods and/or services to us. If any
intellectual property rights are created or generated from such information, documentation, prototypes or tooling or in performing
the Contract then such rights shall be owned by us.
7.
7.1
OUR PROPERTY
This section relates to all property (including tooling of any kind) and any related information, documentation and intellectual
property rights therein: (i) purchased by us and/or manufactured by you pursuant to an Order;( ii) provided by us to you for use in the
supply of goods and/or services or for any other purpose; whether or not modified, repaired or replaced (“Our Property”).
7.2
Our Property (and any scrap resulting from it) is solely owned by us and we shall keep title to it at all times. If we disagree as to who
owns any of Our Property, the presumption will be that we do.
7.3
Where you are in possession or control of Our Property it is on a fiduciary basis as our bailee and you have no rights in it. You have a
revocable non-exclusive licence to use Our Property at your premises only for performing the Contract until we request its return,
which we may do at any time. You may not sub-licence the use of Our Property or use it for any other purpose.
7.4
Risk in Our Property passes to you on delivery and remains with you until it is returned to us. Whilst Our Property is in your
possession or control you shall: (i) be responsible for any loss or damage to it (other than fair wear and tear); (ii) store and use
it at your premises in a proper and secure manner; (iii) clearly label or identify it as belonging to us; (iv) maintain insurance against
all loss or damage; (v) use it with care; (vi) inspect it and maintain it in good order and condition; (vii) immediately notify us if it is
lost, damaged or seized; (viii) not modify or tamper with it, or attach it to anything, or anything to it; (ix) not part with possession
of it or allow anyone else to use it (x) not sell, dispose or encumber it; (xi) give us free and unrestricted access to it on reasonable
notice during ordinary business hours; (xii) make it available for collection by us at any time and allow us access to your premises to
remove it; and (xiii) not copy or reproduce it in any way.
7.5
We have an exclusive, irrevocable option to purchase all bespoke tooling owned by you and put in place for the production of goods
pursuant to the Contract at its present value.
8.
8.1
TERMINATION
We may cancel all or any part of any Order by giving you notice at any time prior to your full performance of the Order and in such
event we will not be liable to pay the price for such goods or services but shall reimburse your reasonable costs arising directly from
such cancellation.
8.2
We may terminate the Contract: (i) for convenience by providing you with written notice; (ii) immediately if you or your parent
company become subject to a bankruptcy or insolvency event or enter into a composition with any of your creditors; or (iii) if you
breach the Contract, and, if the breach can be remedied, you fail to remedy such breach within 10 days of receiving notice of
the breach.
8.3
Termination of all or part of an Order or the Contract will not prejudice accrued rights.
8.4
You may be required to continue to supply spare parts and related services up to 15 years after termination or expiry of the Contract.
9.
9.1
GENERAL
You and your suppliers must comply with all applicable laws, regulations and codes including those concerning anti bribery and anti
corruption and also with the GKN Code and the GKN policies set out at: www.gkn.com/corporate responsibility. We have the right to
visit your premises on reasonable notice to audit and ensure compliance.
9.2
You must provide us with any information we request relating to the goods and services supplied by you, all of which must be
complete and accurate.
9.3
You and your employees, agents and sub-contractors must abide by applicable site and safety rules when on our property and you
shall provide evidence of your applicable insurance.
9.4
Our rights or remedies under the Contract will not limit any of our other rights or remedies, whether under the Contract or otherwise.
9.5
You will not be entitled to transfer or subcontract any of your rights or obligations under the Contract without our prior written
consent. Each company within our Group shall have the benefit of the Contract and may purchase goods and/or services pursuant
to the terms of the Contract.
9.6
Any failure or delay by us to enforce or partially enforce any provision of the Contract will not be a waiver of any of our rights.
9.7
If any of your employees transfer to us by law then we may dismiss him/her and you shall indemnify us for all costs arising from
such dismissal.
9.8
The provisions of the United Nations Convention on Contracts for the International Sale of Goods are excluded.
10.
LAW AND JURISDICTION
The Contract shall be exclusively governed by English law. The courts of England shall have non-exclusive jurisdiction to settle any
disputes or claims that arise out of or in connection with the Contract or its subject matter.
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GKN Land Systems Headquarters
lpsley House
Ipsley Church Lane
Redditch
Worcestershire B98 0TL
United Kingdom
© GKN Land Systems
09/14
www.iconnet.co.uk
Tel: +44 (0) 1527 517715
Email: purchasing.landsystems@gkn.com
www.gknlandsystems.com