Supplier Logistics Manual | Release 3.0

Supplier Logistics Manual
Logistics Requirements of Bosch Group
Release 3.0

BoschSupplier Logistics Manual, Release. 3.0

Contents
Preamble ..................................................................................................................................5
1. Information Logistics ............................................................................................................6
1.1 Communication between SUPPLIER and BOSCH........................................................6
1.1.1

Contacts..............................................................................................................6

1.1.2

Availability ...........................................................................................................6

1.2 Information Interchange.................................................................................................6
1.2.1

Classical EDI.......................................................................................................7

1.2.2

WebEDI ..............................................................................................................7

1.2.3

Procurement Control Concepts...........................................................................7

1.2.4

EDI Transactions ................................................................................................8

1.2.5

Consistency of Automated Processing ...............................................................9

1.2.6

ASN / Label Printing / Shipping Documents........................................................9

1.3 Order Processing.........................................................................................................10
1.3.1

Execution ..........................................................................................................10

1.3.2

Order Tracking (Release Process)....................................................................10

1.3.3

Production and Material Release ......................................................................11

1.3.4

Start-Up and Phase-Out Management..............................................................11

1.3.5

Order Processing Using the VMI Process.........................................................11

1.3.6

Order Processing Using the Kanban Process...................................................12

1.4 Controlling of Logistics Performance ...........................................................................12
1.4.1

Delivery Performance .......................................................................................12

1.4.2

Premium Freight ...............................................................................................12

2. Packaging Logistics............................................................................................................13
2.1 Specification of Packaging ............................................................................................13
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2.1.1 Returnable Packaging .............................................................................................15
2.1.2 Disposable Packaging .............................................................................................16
2.2 Handling of Empties ......................................................................................................172.2.1 Procurement of Empties ..........................................................................................172.2.2 Management of Returnable Balances .....................................................................18
2.2.3 Supply of Empties....................................................................................................192.2.4 Storage, Repair and Replacement Procurement.....................................................192.2.4 Cleaning ..................................................................................................................20
3. Dispatch Logistics ..............................................................................................................21
3.1 Shipping Procedure .....................................................................................................21
3.1.1

Carriers .............................................................................................................21

3.1.2 Premium Freight ......................................................................................................22
3.1.3 Combining of Shipping Units ...................................................................................22
3.1.4 Parcels (GSP processing) .......................................................................................22
3.1.5

Pallets, box pallets and large containers...........................................................22

3.1.6

Maximum weight of packing units .....................................................................22

3.2 Delivery specifications .................................................................................................22
3.3 Labeling of Shipping Units ...........................................................................................23
3.3.1

Labeling Methods..............................................................................................23

3.3.2

Format and Attachment ....................................................................................24

3.4 Shipping Advice (with GSP processing) ......................................................................24
3.5 Shipping Documents....................................................................................................25
3.5.1

Delivery Note ....................................................................................................25

3.5.2

Transport Documents .......................................................................................26

3.5.3

Customs Documents.........................................................................................26

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Security in transportation of goods....................................................................26

4.0 Logistics Quality ...............................................................................................................28
4.1 Supplier Performance (LEB) − Logistics ......................................................................28
4.2 Logistics complaints ....................................................................................................28
5. Outlook ...............................................................................................................................30
6. Abbreviations......................................................................................................................31
7. Attachments .......................................................................................................................33

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Preamble
Competition in national and international markets has become significantly tougher in recent years.
The increased individuality of our customers places high requirements on our business, and as aresult also on the logistics functions, in terms of quality and flexibility.
The conventional role of handling commodity and merchandise flows has nowadays turned into acomprehensive, customer-oriented management function.
The quality of logistics is becoming more and more decisive to the competitiveness of our business,and is an increasingly important factor in our strategic success.
However, since the Bosch Group (in the following referred to as BOSCH for short) can only attain thathigh quality level in conjunction with its suppliers, it needs reliable and competent business partners
who work toward the same customer-oriented goals.
This Supplier Logistics Manual is intended to enhance supply relationships between suppliers and
BOSCH Group and to minimise costs resulting from non-conformance.
The standards set out form the generally binding framework for all business units of BOSCH. They
can be supplemented by location-specific standards, in order to respond to the specific supply
relationships of particular plants or regions.
This document is structured as follows:
Text refers to general and standard regulations and processes.
Tables refer to region–specific standards from the point of view of the receiving Bosch plant.
Supplements may be required due to regional requirements or bilateral agreements between a
BOSCH plant and its suppliers. The local partner at the receiving BOSCH plant is able to provide youwith corresponding information.
Liability of SUPPLIER is governed by the agreed delivery contract.

Robert Bosch GmbH
Corporate Sector Purchasing and Logistics
CP/LOG
Postfach 10 60 50
D-70049 Stuttgart
Germanye-Mail: Bosch.Logistics@de.bosch.com

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1. Information Logistics
Communication between SUPPLIER and BOSCH is the basis of a successful cooperation. The
preconditions for this are:Prompt, proactive notification of changes in all matters relating to supplier relations (agreements,
processes etc.) by both parties.
Compliance with and monitoring of agreements.

1.1

Communication between SUPPLIER and BOSCH

1.1.1

Contacts

Suppliers must designate a key contact personnel responsible for handling logistics support (name ofcontact, nominated deputy and superior, with e-mail address, phone and fax numbers).
The key contact person must have the necessary expertise.
Communication language:- language of corresponding customer BOSCH plant, OR- English (as standard for international communication)
1.1.2

Availability

The key contact person designated by SUPPLIER (or his or her proxy) must be reachable on working
days between 7 a.m. and 5 p.m. (SUPPLIER’S local time).
Outside of this time period (and during plant shutdown periods), appropriately qualified staff must be
on call to handle "emergencies".

1.2

Information InterchangeElectronic data interchange (EDI) as method of information interchange is fundamental to all supplier
relations with BOSCH. SUPPLIER should use EDI to receive and transmit information (such asdelivery call-offs/ scheduled releases) from and to BOSCH. Suppliers who do not have an existing EDI
link to BOSCH must establish an EDI system based on a jointly agreed schedule and procedure withthe receiving BOSCH plant.
Technical requirements and message formats are set out in detail in the specific EDI contracts. Thismanual also relates to those contract elements. Further information can be obtained from the EDI
brochure, available from your BOSCH key contact personnel.
A distinction can be made between categories of EDI: classical EDI / WebEDI.

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Classical EDI

For the interchange of ordering data BOSCH uses the following industry standards:
REGIONSTANDARD

A.

EuropeVDA, ODETTE, EDIFACT

B.

North America

AIAG, EDIFACT

C. South America

RND,EDIFACT

D. South Africa

VDA, ODETTE, EDIFACT

E.

Australia

EDIFACT, ANSI

F.

Asia

EDI format to be defined with the receiving BOSCH plant – except for- Korea

EDIFACT as preferred standard- Japan

ZEXEL legacy system for local supply (imported parts: fax)

1.2.2

WebEDI

WebEDI is an internet-based information system for suppliers to communicate with BOSCH, used forexample in cases of low call-off volumes or where suppliers do not have the necessary infrastructure.
It is an alternative to classical EDI. BOSCH standard WebEDI application is provided by internet
marketplace SupplyOn AG (Internet: http://www.supplyon.com)– except for RBLA plants (SouthAmerica) that use BeSIS.
1.2.3

Procurement Control Concepts

The following procurement control concepts are generally in use:
- Classical delivery call procedure with releases (Release Process)- Vendor Managed Inventory (VMI) or delivery control management (DCM)- KanbanWithin the framework of the implementation of the Bosch Production system (BPS) BOSCH strives toform a lean supply chain from the customer to the supplier.
If the general conditions allow, primarily procurement processes based on pull principles will be used
(only deliver what the previous manufacturing level has consumed) , for example Kanban, DCM, andVMI.
The control concept applied for the respective contracted product is decided by BOSCH.

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The procurement control concepts KANBAN, DCM and VMI,are supported by a web based Inventory
Collaboration Tool provided by the company SupplyOn.

Release Process
Release Orders are transmitted on a rolling basis. They are updated regularly and generally containdata with a horizon of at least 6 months. The last release order is binding and replaces earlier
releases.

VMI Process (Vendor Managed Inventory)

For Vendor Managed Inventory (VMI) the supplier will receive access to gross demand and theinventory levels from Bosch for the supplied parts. SUPPLIER is responsible to manage the shipments
to ensure inventory level within the agreed MIN-/ MAX-stock levels (generally consignment stock).
These levels are agreed upon between BOSCH and SUPPLIER.

DCM Process (Delivery Control Monitor)
Similar to the VMI process (Min / max. stocks) but inventory control according to actual consumption.
When the order point the system produces a suggested amount for delivery (e.g. fill up to max).
Dependent on the agreement with the plant this suggested amount for delivery must be delivered infull or can be modified by supplier related to the agreed Min / max. limits. This control concept is often
used as a interim solution before the introduction of KANBAN (concept used for products with constantconsumption; in many cases several shipments per day).

KANBAN Process
Trigger is the consumption of KANBANs (containers) from supply source near to production(supermarkets). This steering concept is used mainly for A and B parts with constistant consumption
and is the preferred form of supply within Bosch.
If the KANBAN process is used, additional forecast information will be transmitted as well (forecast
valid for production and material release). The KANBAN order is the binding trigger for the shipment.

1.2.4

EDI Transactions

Suppliers with an EDI connection to BOSCH use delivery call-off/ releases (in case of VMI grossdemands), and advanced shipping notifications (ASN) as the minimum EDI transactions.

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The use of stock movement transactions (in particular for consignment arrangements) and self-billinginvoice procedures should be agreed specific to location.
On specific request of BOSCH, SUPPLIER must use forwarding advice (transport advice), while using
WebEDI.
For VMI and eKANBAN EDI based interfaces are available as well and can be installed plant specific.
1.2.5

Consistency of Automated Processing

Ordering and stock information communicated to SUPPLIER by classical EDI should be imported into
SUPPLIER’s IT-system without need of further data entry or additional editing.
The goal is fully automated integration into SUPPLIER’s production planning system (PPS). This
includes, for example, breakdown into parts lists, automatic generation and forwarding of purchaseorders to subcontractors, and integration into capacity planning and production control processes.
The consistency of the system must be ensured throughout the planning, production and shipping
process.
Communication between the systems must be regularly monitored to assure correct and complete
transfer of data.
1.2.6

ASN / Label Printing / Shipping Documents

SUPPLIER shall transmit an ASN via EDI/ WebEDI system or VMI order monitor at the same time thatthe shipping documents are generated.
Shipping documents/ labels are generated in SUPPLIER’S own shipping system according to thefollowing standards.
REGIONSTANDARD

A.

EuropeVDA

B.

North America

AIAG

C. South America

RND (ASN) and VDA (labels)

D. South Africa

VDA

E.

Australia

EDIFACT, ANSI QSP0703-906 (Internal procedure)

F.

Asia

Standards to be defined with according BOSCH customer plant – except for- JapanBOSCH External: ZEXEL legacy system for local supply (Import :VDA)

If SUPPLIER uses SupplyOn WebEDI, it may generate the shipping documents with this tool.
The information used for labelling purposes should be taken from the EDI release/ demand
information sent.

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Order Processing

SUPPLIER receives yearly volumes as non-binding forecast. Based on this, SUPPLIER has to makesure
- that production capacity corresponds to this volume and- that sub-suppliers are able to deliver material accordingly.
1.3.1

Execution

The delivery dates quoted in the call-offs/ scheduled releases (Release processing) are the required
dates of receipt by correspondent BOSCH plant. Any non-conformance to that standard must be
agreed separately. SUPPLIER checks if the received delivery call-off/ release is complete, correct andplausible (e.g. that SUPPLIER name, part number, quantity and delivery dates are correct). If any
discrepancies are noted, SUPPLIER must inform the responsible BOSCH contact immediately.
Delivery call-offs/ scheduled releases are binding for SUPPLIER unless notification to BOSCH within 2
working days after receipt of the release that the requirement cannot be fulfilled
Order confirmations are only required in case of a non-conformance to the specified delivery date orquantity. Any non-conformance to that standard is agreed separately.
In the case of process deviation the supplier must prove a functional escalation management
1.3.2

Order Tracking (Release Process)

SUPPLIER continuously tracks ongoing orders internally. SUPPLIER must be able to provide
information of the progress of production at all times. Comprehensive, transparent tracking of orders
placed with subcontractors must be ensured.
SUPPLIER will install an early warning system to detect supply problems. An effective crisis
management system and emergency plans are required.
If disturbances occur which affect the compliance of BOSCH requirements SUPPLIER must initiate
the necessary countermeasures. If it becomes clear that, despite the necessary measures initiated,
the agreed deliveries cannot be met, SUPPLIER must notify their BOSCH contact immediately via email/ fax and advise a new delivery date and/or quantity, as appropriate.
In this case, SUPPLIER must also be able to provide information on the following points:
1. The cause of the supply problem
2. Production output capabilities for the part(s) in backlog and production planning (number ofshifts/hours per working day and working days per week)
3. Alternative production options investigated (production lines and/or production schedule; always
according to quality requirements)
4. Availability of alternative parts (always according to quality requirements)
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5. Check the possibility of partial delivery
6. Premium freight capabilities and timing
7. Escalation of the problem inside its company
If no mutually agreed solution can be found, involvement from the highest levels within SUPPLIER’sorganization will be required.
Liability of SUPPLIER due to late delivery is regulated by the relevant delivery contract.
1.3.3

Production and Material Release

SUPPLIER is obliged to deliver ordered products and required associated materials to the receiving
BOSCH plant.
Production releases are legally binding purchase orders of finished goods. However, regarding
delivery dates the last updated delivery call-off/ scheduled release is decisive.
Material releases are the basis for BOSCH’s obligation to reimburse respective materials purchased
by SUPPLIER, if any. Production and material releases relate to dates of receipt by BOSCH.
Periods for production and material releases are defined in general in the relevant supply contract. If
the agreed releases are verifiably inadequate to maintain delivery capability, SUPPLIER can apply foran extension for material release or request additional forecast data from his BOSCH contact inindividual cases. Requirements beyond those periods represent non-binding forecasts, based on
which SUPPLIER plans its production capacity and sample production.
If BOSCH cancels delivery call-offs/ scheduled releases of finished goods within production release
period without having placed corresponding future orders, BOSCH decides if receipt of the finishedgoods within a reasonable time is accepted or whether agreed upon price is paid.
If BOSCH cancels delivery call-offs/ scheduled releases of finished goods within material release
period, BOSCH shall reimburse the cost which SUPPLIER incurred for such material, provided
however that SUPPLIER demonstrates that the respective material could not be otherwise used withinreasonable time. BOSCH reserves the right to request the shipment of the cancelled raw material.
1.3.4

Start-Up and Phase-Out Management

During start-up and phase-out BOSCH expects increased flexibility from its suppliers. This requires acapacity planning process in order to be able to supply even small volumes timely in the rightquantities.
Capacity planning must be coordinated between BOSCH and SUPPLIER in time.
1.3.5

Order Processing Using the VMI Process

The processes and agreements described in sections 1.3.1 to 1.3.4 are to be applied analogously withVMI (DCM). Deviations are pointed out in the following.
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With VMI, as a rule, gross demands (= production demands) are transmitted instead of delivery calloffs. SUPPLIER will control the delivery to assure VMI stock to be between the agreed min/ max limits(see also 1.2.3).
In VMI process material and production releases are based on gross demands. As valid periods forthese releases, intervals defined in the delivery contract are applied correspondingly.

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

1.4

Controlling of Logistics Performance

SUPPLIER shall monitor the following variables as a minimum in order to record its logistics
performance and make the results available on request. Visual presentation of the results on site by
SUPPLIER is recommended.
1.4.1 Delivery Performance
SUPPLIER shall operate a system to monitor and, at least on a monthly basis, measure its delivery
compliance (in terms of delivery dates and quantities) to the delivery requests of the receiving BOSCH
plant.
1.4.2

Premium Freight

Premium freight (also named special deliveries or expedited shipments) is considered to be outside
the standard logistics handling as agreed between SUPPLIER and BOSCH in the supply contract.
Premium freight is used when there is a risk to disrupt production as this cost is much higher thannormal transportation.
SUPPLIER shall record, at least on a monthly basis, the premium freight for which it has been
responsible (including as a minimum the instances of such shipments, the additional freight costs, andthe cause). SUPPLIER must be prepared to provide information about premium freights – if requiredby BOSCH.

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2. Packaging Logistics
2.1 Specification of Packaging
Packaging is specified between BOSCH and SUPPLIER in accordance with ecological, economic andqualitative criteria which are stipulated in a Bosch catalogue of requirements. Within the start of the
product live cycle the development of the packaging can be undertaken by the supplier, in case thishas an advantage due to process know-how and product know-how of the SUPPLIER.
The responsible BOSCH packaging planner and SUPPLIER finally agree on the product-specificpackaging (packaging instruction) which is binding for future shipments. If the SUPPLIERS follows thispackaging instruction will be considered in the supplier- evaluation.

The following basic principles must be followed:
Avoidance of packaging (as much as possible). The packaging must not be larger or more elaborate
than essential to protect the goods.
Padding material should be kept to a minimum.
Where disposable and returnable packaging is used, recyclable packing materials must be used andidentified according to the specifications of the waste management industry.
Use of single-type component materials. Composite Materials are not allowed.
Where disposable and returnable packaging is equal in economic and qualitative terms, returnable
packaging shall be preferred.
Returnable packaging (e.g. Euro pallets, Euro box pallets, VDA "KLT" [small load carriers]) that is
capable of pooling (used through multiple processes and partners) is to be preferred ahead of
returnable packaging without such capability.
Returnable packaging should correspond to standard sizes. Special design and sizes should only be
defined as exception in case of specific/ extraordinary requirements of the material to be delivered.
Returnable packaging must be designed to be cleaned, emptied and drained easily.

Special requirements for wooden packaging materials (international trade):
Phytosanitary regulations for international trade with packaging materials made of solid wood (ISPM
15) have been issued within the scope of the IPPC (International Plant Protection Convention), which
is a sub-organisation of the FAO (Food and Agriculture Organization of the UN).
Information regarding the IPPC-Regulations.- and country specific regulations could be found under
the following link.
https://www.ippc.int/IPP/En/default.jsp
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REGION

Requirements FOR DELIVERIES FROM OTHER REGIONS TO ...
(according to actual IPPC Status)

A.

IPPC Standard; debarked wood

EuropeRemark: Requirements does not apply to packaging materials made of solid woodfrom European countries which are imported as goods (not in use as packaging).
Temporary provision for stored wood until 31.12.06 (free from bark and infestation).
B.

North America

IPPC Standard

C. South America

To be defined with, according BOSCH customer plant

D. South Africa

To be defined with, according BOSCH customer plantE.

The strong Australian quarantine requirement are binding. (Australian Quarantine
ad Inspection Service (AQIS) www.daff.gov.au/aqis)

Australia

A Packaging declaration has to be attached with the shipment.
All used wooden material have to correspond to the guide line ISPM 15 (ISPM15
imprinting at the wood)
The packaging declaration has to include if the material correspond to the ISPM15
regulation. If not a fumigation Certificate has to be available at the date of thedelivery.
For Packaging raw or brittle wood is not allowed
FLC/LCL packaging regulation
In the case of packaging material made of untreated wood a Treatment
certification/desinfection certificate is necessary.
The use of straw, bark or similar material is forbidden.
Such deliveries will be cleaned and repacked from AQIS. All related costs have to
be covered by the importer. A delay in delivery between 6-9 days is possible andhas to be calculated.
Certificate of packaging supplier (in case of plywood, chipboard, particle board, etc.
F.

Asia

To be defined with, according BOSCH customer plant – except for:- China

Debarked wood
Heat treatment (56° C core temperature / 30 minutes)
Technical drying (if heat treatment's values are achieved)
Fumigation with methyl bromide
Authorized marking
Official plant health certificate
A Non Wood Packaging Material Declaration must be given for using derived timber
products and packaging materials which are not made of solid wood.

- South Korea

IPPC Standard- India

IPPC Standard

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Official plant health certificate

Other applicable documents:
REGIONDOCUMENTS

A.

VDA 4500 (small load carrier ["KLT"] system)

EuropeVDA 4902 (barcode labels)
ESD standards laid down in DIN EN 61340-5-1
EU packaging directives DIN EN 13427 – DIN EN 13432
B.

North America

C. South America

See www.Boschnasuppliers.com
VDA 3214 (for very small parts. “KLT” system)
VDA 4314, VDA 6421 and VDA 6428 (also “KLT” system. For small parts)

D. South Africa

VDA 4500 (small load carrier ["KLT"] system)
VDA 4902 (barcode labels)
ESD standards laid down in DIN EN 61340-5-1
EU packaging directives DIN EN 13427 – DIN EN 13432

E.

Australia

QSP0703-906 (Internal procedure)

F.

Asia

Other applicable documents to be defined with according BOSCH customer plant –Standards are valid for:- China

GB10819-89 Wooden pallet
GB12464-90 Wooden box; GB6453-86 Carton box

2.1.1 Returnable Packaginga) Standard load carriers

Before first delivery the used packaging has to be agreed with the RB-plant
REGION

LOAD CARRIERSA.

Euro pallets and Euro box pallets, up to max. 1000 kg load capacity

EuropeAccording to VDA Recommendation 4500 VDA "KLT" small load carriers (RL).
According to VDA Recommendation 4504 VDA-R-KLT(small load carriers)-ESD(electrical conductive)
B.

North America

C. South America

See www.Boschnasuppliers.com
PBR pallets (Brazilian standard) 1000mmX1200mm.
Preferred: According to VDA-Recommendation 4500 VDA "KLT" small load carriers(RL). According to VDA-Recommendation 4504 VDA-R-KLT-ESD (electrical

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conductive)
Special process: C,-R-KLT, cover related VDA 4500, plastic pallets
It is necessary that the boxes are stored and are arranged to assure non damaged
sea and airfreight.

D. South Africa

CHEP and TRENSTAR

E.

Australia

CHEP, CEVOL Stillages

F.

Asia

Load carriers to be defined with according BOSCH customer plant – Standard are
valid for:- ChinaWorm-free pallets- Hong Kong

Wooden (worm-free) pallets. Size is based on European standard.

- Malaysia

Plastic Bins & Corrugated Bins

- JapanWooden pallets. Standard returnable plastic box. Special returnable plastic box.

b) Special load carriers

The use of special load carriers is only allowed if standard load carriers cannot be used due
to product requirements. In any case before delivery an agreement from RB to use nonstandard load carriers has to exist.

These include, for example:- self supporting load carriers- other plastic containers, possibly with inserts and / or provided with electrical conductanceplastic pallets for high-shelf storage systems (Standard:1200 x 800 mm)- Box pallets with inserts
2.1.2 Disposable Packaging
Preferred packing materials:
REGION

MATERIALSA.

Plastics: ABS, PS, PE, PP, EPP

EuropeCorrugated board to DIN 55468
Solid board
Wood (for pallets only)
B.

North America

C. South America

See www.Boschnasuppliers.com
The same as the European standard. It is necessary that the boxes are preparedstockpiled and arranged to guarantee non damaged sea and air freight

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D. South Africa

Corrugated board to DIN 55468

E.

Australia

Plastic, Cardboard, Trays (Polystyrene)

F.

Asia

Preferred packaging materials to be defined with according BOSCH customer plant– except for:- Hong Kong

Wooden pallets- Malaysia

Paper Pulp

- Japan

Plastic, Cardboard, Wooden pallets, Paper, Corrugated boardb) Inadmissible packing materials:
-

PVC

-

Food-based packing-

Plastic compounds-

Coated plastic bags (Dry-Shield bags)-

Packing foam

These may only be used in exceptional cases, following consultation with BOSCH.

2.2 Handling of Empties
In order to attain and assure shared quality, supply and inventory goals SUPPLIERS must ensure thefollowing standardized regulation for handling of returnable empties between BOSCH and its
suppliers.
2.2.1 Procurementa). Standard Poolable VDA-KLT / Euro Pallets / Euro-Box-Pallets
REGIONEMPTIESA.

VDA "KLT" small load carrier systems

EuropeEuro pallets
Euro box pallets
B.

North America

See www.Boschnasuppliers.com

C. South America"KLT" small load carrier systems
PBR pallets (1000mmx1200mm)

D. South Africa

CHEP and TRENSTAR

E.

Australia

CHEP, CEVOL Stillages

F.

Asia

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Plastic Spool for PgW (Power Tools division)

Unless otherwise agreed the SUPPLIER shall receive returnable packaging only to cover a definedinventory level (generally 3 days) of the product without any charge for their use (basic: future
demand; Transit stock).
Standard load carriers which are used for SUPPLIER internal usage have to be procured by the
supplier.

Special provisions may be made in individual cases.
Euro pallets and Euro box pallets are subject to the regulations of the European Pallet Association(Internet: http://www.epal-pallets.org).
b) Special load carriersb1) BOSCH-special carriers
see a).
BOSCH-specific load carriers will be procured only by BOSCH.
Special load carriers for the supplier intern production process have to be procured by the supplier(supplier can use in that case Bosch purchasing conditions if agreed).

b2) SUPPLIER-specific load carriers
SUPPLIER specific load carriers must be procured by the supplier. The procurement costs for the
specific load carriers is carried by Bosch if not included in the unit price.
The amount of the necessary inventory in circulation (see a), purchasing price has to be agreed with
Bosch.
c). Non returnable packaging
Generally costs for non returnable packaging and there procurement have to be covered by the
supplier.

2.2.2 Management of Returnable Balances
SUPPLIER shall keep accounts for returnable packaging and cross-check the balances with its
interchange partner, i.e. BOSCH or any external logistics service provider contracted by BOSCH.
BOSCH shall keep accounts for returnable packaging for at least BOSCH-specific empties and forpoolable VDA "KLT" small load carriers. SUPPLIER will be informed of balance on a monthly basis.
Objections by SUPPLIER must be received within 14 calendar days by the responsible empties
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confirmed the stock balance quoted. Quantity discrepancies shall be eliminated by SUPPLIER with theassistance of the responsible BOSCH packaging planner and/or the EDL.
In this context and in the case of complaints (for example caused by quantity differences, waste,damage) the supplier has to provide photos, a short description with reference to the delivery notenumber to the responsible Bosch Returnable Packaging Planer.
If the complaint is already visible after transfer from the service provider the driver of the forwarder has
to sign off on that complaint at the shipping note. This voucher must be forwarded to the Bosch
packaging planner as well. Otherwise the complaint will not be accepted. The following procedure has
to be agreed with the Bosch packaging planner on a case by case basis.
Euro pallets and Euro box pallets are subject to the standard local and industry specific regulations. In
case of doubt, the regulations of the European Pallet Association (Internet: www.epal-pallets.org) shallby apply.
Quantity discrepancies or shrinkage shall be compensated immediately at the current replacement
value by the PARTY deemed responsible.
2.2.3 Supply of empties
If SUPPLIER fails to request or procure packaging at the appropriate time, it shall bear the additionalcosts that may be incurred (such as shipping or repacking costs).
a) Poolable Euro pallets / Euro box pallets
Euro pallets and Euro box pallets are subject to the standard local and industry-specific regulations. In
cases of doubt, the regulations of the European Pallet Association (Internet: http://www.epalpallets.org) shall apply.
b) BOSCH-specific empties and poolable small load carriers (e.g. VDA "KLT")SUPPLIER shall request the required empties promptly in written form, allowing for factors such astransportation times. The call-off quantity is determined by Bosch based on the volumes due fordelivery. Requested returnable empties shall be supplied by BOSCH at no extra cost to SUPPLIER, toa defined delivery point (as stated in the agreed terms and conditions of delivery). Within theframework of Kanban processing a 1:1-trade-off full against empty empties can be arranged between
BOSCH and SUPPLIER.
2.2.4 Storage, Repair and Replacement Procurement
The supplier is responsible for a proper storage (weather protected) of the returnables after transfer ofthe returnables from the Bosch forwarder. The returnables have to be stored in that way that
contamination before, during and after the production process can be avoided. If contamination occurs
during this period the SUPPLIER has to clean the returnables provided by BOSCH at its own expense.
BOSCH shall repair or scrap damaged returnables as appropriate. BOSCH shall charge 50% of therepair or current replacement value to SUPPLIER – if there is no other bilateral agreement between
BOSCH and SUPPLIER. Packing materials used by more than one supplier at any one time shall be
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charged to each supplier involved according to its respective proportion of the total quantity of
returnables used.
2.2.5 Cleaning
Empties must meet the necessary degree of cleanliness of the product or to the Bosch specification.
Responsibility therefore belongs to the supplier.
a).Returnable Empties
Returnable empties have to be cleaned by the supplier. The cleaning has to meet the necessary
degree of cleanliness of the product or to the Bosch specification. Empties have to be cleared of nonvalid labels (e.q. labels or shipping notes).

b). Non returnable Empties
If an additional cleaning is necessary Bosch covers the costs of cleaning only upon evidence that theempties have been delivered dirty has been provided. An additional cleaning has to be agreed withBOSCH in advance (see cleaning of empties).

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3. Dispatch Logistics
Within the framework of the production system (BPS) implemented by Bosch the target is to transition
from two-stage inventory levels to supply chain management without inventory levels. In addition toclassic transportation concepts using an area bounded forwarder (GSP), more and more milk run
transport concepts are being implemented. In comparison to the GSP concept, the milk run concept
uses exact predefined time windows (where applicable multiple times daily) to manage pickups. Milkruns are ideally used in combination with pull systems (e.g. KANBAN) and are used for high frequentdeliveries with consistant consumption.
For overseas and regional suppliers the mentioned transport concepts will be done via cross docks.
For local suppliers and A,B parts Ship to Line deliveries are used.
Special features regarding the above-mentioned transport concepts are detailed in the following
chapters.

For deliveries to BOSCH plants in North America SUPPLIER has to consider specific shipping
instructions and packaging/labeling guidelines to be found at the following link:
http://www.Boschnasuppliers.com.

3.1

Shipping Procedure

When accepting the delivery for shipping, the carrier acknowledges receipt of the quantity and type ofparcel or packing unit, but not its content, value or weight.
All paperwork including the bill of lading, the packing slip, and/or commercial invoices are to be sentwith the carrier separate from the material at the time of shipment.
Pick-up times and assigned time windows at SUPPLIER’s location and other specific requirements areto be agreed between SUPPLIER and carrier/ 3PL or are defined in the milk run concept.
The prompt, complete and safe delivery to BOSCH has top priority.
3.1.1

Carriers

The Bosch-specified freight forwarders and parcel services are generally to be used. Exceptions shallbe permitted only in specific cases and only upon prior written consent of the respective BOSCH
facility.

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3.1.2 Premium Freight
Premium freight is usually organized by SUPPLIER. SUPPLIER shall agree with the receiving BOSCH
plant on the carriers to be used.
The costs of premium freight shall be borne by the responsible PARTY. Where BOSCH bears thecost, a prior written declaration of acceptance is required from the responsible BOSCH plant or 3PL
provider in charge.
3.1.3 Combining of Shipping Units
In case of GSP processing all shipping units must be handed over in a logistically optimized form tothe carrier (freight forwarders, parcel services).
Where possible, multiple smaller units should be combined to form one larger unit, taking account of
the generally recognized dimensional and weight limits.
3.1.4 Parcels (GSP processing)Packing items weighing up to a maximum of 31.5 kg and within the maximum outer dimension limits ofthe parcel services are generally dispatched by the specified parcel services.
10 single packaging items or more per working day per BOSCH unloading point are to be combined toform one logistically efficient shipping unit and shipped by the specified freight forwarders.
3.1.5

Pallets, box pallets and large containers

Shipping units shall contain only one single type of load carrier as a matter of principle.
3.1.6

Maximum weight of packing units

Regional/ local regulations concerning maximum weight for single packing units has to be considered.

3.2

Delivery specifications

The basic outer dimensions of pallets must be maintained. Protrusions and overhangs must be
avoided.
All shipping units must be packed by SUPPLIER in a manner which is safe for transportation andprotected from unauthorised access.
The pack items should be packed in single-type batches. Parts of different releases must not be
combined in one pack item.
Packing items are combined to form a safe unit on the shipping unit, and safeguarded against
slippage in transit.
At least the top layer must be covered.
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Available label pockets must be used.
Tags must be attached to returnable packaging by means of easily removable, residue-free adhesive
spots or adhesive tape. Tags must not be glued onto returnable packaging.
In the case of deliveries in "KLT" small load carriers on pallets the top layer must form a single, evenplane.
The undamaged condition of pallets and box pallets (e.g. in accordance with the exchange criteria of
the European Pallet Association EPAL (Internet: http://www.epal-pallets.org )) and other containers
must be ensured.
The packaging must be clean. Compliance with BOSCH-specific cleanliness regulations andconditions in the delivery and production areas must be ensured.
Special requirements apply to electrostatic sensitive devices.
Compliance with VDE, DIN and BOSCH standards where applicable must be ensured.
Mixed consignments are permitted in principle, unless otherwise agreed. The number of mixed
consignments should be kept to a minimum. Identical items should be distributed across the smallest
possible number of shipping units.

3.3

Labeling of Shipping Units

3.3.1

Labeling Methods

All shipping units are to be identified by a master label. The following minimum data are required:- BOSCH type/ BOSCH part number- Total quantity- Name of SUPPLIER/ SUPPLIER number
In the case of heterogeneous shipping units (mixed containers) it must be ensured by SUPPLIER that:- the transport packaging is identified as a "mixed shipment"- all BOSCH part numbers in the container are identified with their respective total quantities and- different releases within the shipping unit are physically separated from each other and clearly
identified.
The smallest packing units generally should be marked by a barcode. The introduction of barcodes
must be agreed with the receiving BOSCH plant concerned. All barcodes must correspond to code 39.
- Label information:- BOSCH type/ BOSCH part number
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- Name of SUPLLIER/ SUPPLIER number- Batch identification
According to the KANBAN process agreed with the plant, KANBANS cards have to be attached at thecontainers by the supplier
The KANBAN cards are provided by Bosch (e.g. internet portal)

3.3.2

Format and Attachment

REGIONSTANDARDA.

The master label on the shipping unit must be in DIN A5 landscape format.

EuropeThe secondary label must be 210 x 74 mm (VDA standard format).
The fixings on the “KLT” small load carrier must be used.
Adhesive labels are prohibited
The formats conform to the regional standards (VDA, GALIA, AIAG, ODETTE, ...)
B.

North America

C. South America

AIAG
Master and secondary label: VDA standard format.
Adhesive: to be avoided
The fixings on the “KLT” small load carrier must be used.

D. South Africa

Standard VDA label

E.

Australia

QSP0703-906 (internal procedure)

F.

Asia

Format and attachment to be defined with according BOSCH customer plant- JapanLocal supply: RBAJ designated cards.
Import: SUPPLIER’s label & Packing list

3.4

Shipping Advice (with GSP processing)

SUPPLIER’s advice of shipping to the responsible carrier must be sent in time to comply with the due
date of delivery to the destination (unloading point) specified by BOSCH.
The carrier must be provided with all data relevant to the delivery prior to shipping.
These data include:- Collection address:
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Delivery address:- Destination/ unloading point- Delivery date
Consignment data:- Quantity, type of shipping units, where appropriate load meter- Gross weight- Where appropriate, customs declaration
The advice of shipping from SUPPLIER to the carrier designated by BOSCH should be sent by EDI/WebEDI. Until implementation of EDI/ WebEDI, the advice forms and procedures of the respective
carrier are to be used.
The carrier shall collect the shipment within a specific time slot, or at the specific time agreed between
SUPPLIER and the carrier.
Advice of shipping of hazardous goods must be sent separately. In the case of hazardous goods,
SUPPLIER is responsible for ensuring that the collecting carrier is provided with all necessary
complete and correct documentation. Components that require extra-ordinary packaging due to theirvolume, shape or design must be announced to the carrier prior to shipping.
Any temperature control required due to sensitivity to heat or frost must be stated to the carrier in timeprior to shipping.

3.5

Shipping Documents

To identify each delivery, the carrier draws up a separate hand-over document to be handed to therecipients at the destination.
In order to record the delivery, carriers are usually to be provided with the following information:
3.5.1

Delivery Note

Sender's address
SUPPLIER number
Recipient's address (receiving plant, unloading point as per delivery call-off)
Total quantity in delivery and quantities per shipping unit
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Usage identification (optional)
BOSCH part number, incl. quantity and type of packaging (e.g. “KLT”, parcel, Euro pallet)
Number of exchange pallets used per order
Delivery note number
Order number / blanket order number
Batch number and, where appropriate, shelf life/expiry datePart modification / revision status
3.5.2

Transport Documents

Standardized transportation/shipping order, e.g. VDA 4922
3.5.3

Customs Documents

The carrier must be provided with all documents and information relevant to customer regulations.
This includes as preference papers and where required National Certificates of Origin.
REGIONSTANDARD

A.

Europe

EUR. 1, UZ FORM A and commercial invoiceB.

North America

Bill of Lading and Commercial Invoice

C. South America

Signed original commercial invoice, certificate of origin (FORM A) and packing list.

D. South Africa

EUR 1, F178, DA550, PACKING LIST, COMMERCIAL INVOICE

E.

Australia

Tax Invoice, Treatment Certificate (Timber), Preferential duty documentation

F.

Asia

Customs documents to be defined with according BOSCH plants – except for:- China

Shipping invoice, packing list, import license if required, customs clearance form

- Hong Kong

Local HK suppliers must provide Proforma Invoice, & packaging slip

- India

Bill of entry, Commercial invoice, Certificate of Origin, Purchase Order & catalogue- Malaysia

Manufacturing License, Custom Form, CJ5.

- JapanCommercial Invoice, Packing List

3.6 Security in the transportation of goods

SUPPLIER declares itself as a "known dispatcher“ towards all assigned service providers (Regulated
representative) by issuing the "security explanation" (actual regulations, forms and explanations see
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resulting requirements. For Airfreight only the cooperation with "regulated representatives" is allowed.
Alternatively the cooperation with service providers is allowed who do not have the admittance to the"regulated representative", by obtaining the "sub-contractor explanation" (homepage LBA).
The written declaration on the dispatch documents is required for each type of transportation carrier. It
cannot be expelled that the mode of transportation will change into air freight later or that air freighttransportation take place afterwards.
With the following dispatches of goods the US American regulations are to be considered additionally:-

Into USA-

Goods with AMERICAN origin-

Goods proportionately consisting of US products-

Goods being developed / produced with the US Know How-

Goods being developed / produced with US-financial support

Beside other things the C TPAT regulations are to be considered.
(http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/).

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4.0 Logistics Quality
4.1 Supplier Performance Assessment (LEB) − Logistics
The aim of Supplier Performance Assessment (LEB) is to provide an objective overall analysis of thepurchase decision. It also provides a systematic, comprehensive assessment of BOSCH suppliers
based on uniform criteria.
The results of the Supplier Assessment are incorporated into the following decision-making processes:
Selection of preferred suppliers
Exclusion of poorly performing suppliers
Supplier development measures
Selection of potential suppliers
Supplier recognition
The highest-volume suppliers and the preferred suppliers, as a minimum, are assessed at regularintervals. This assessment is based on the performance delivered in the assessment period.
The BOSCH Supplier Result Assessment is structured and weighted as follows:
Quality result
Cost/ price result
Logistics result:- Delivery compliance- Flexibility- Logistics (EDI capability, shipping docum., labeling, etc.)- Communication, Cooperation
The responsible BOSCH planner can provide information on the details of the plant-specific logistics
results (LR) of the LEB. The responsible purchasing department can provide information on the overall
result.
(See attachment 1: Supplier Result Assessment / Logistics Result – LR)

4.2 Logistics complaints
Logistics complaint notices may be issued if there is a disruption to BOSCH processes caused by
SUPPLIER.

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Logistics complaints are recorded and evaluated according to the category of failure (see attachment
2) and the costs incurred.
In the event of non-conformance with the standards set out in the Supplier Logistics Manual, or thesite-specific standards imposed due to reasons within responsibility of SUPPLIER, BOSCH reserves
the right (reserving other legal rights) to refuse acceptance of the shipment and/or to charge for the
additional costs incurred (e.g. storage, repacking, disposal, return of packing materials, increasedhandling, line stoppage, etc.).
In the event of a logistics complaint SUPPLIER is notified immediately and requested to analyze thesymptoms and initiate remedial action. A logistics complaint from BOSCH is processed anddocumented by SUPPLIER according to the 8D system. Documentation can be requested by BOSCH.
If complaint reoccurs, BOSCH may request SUPPLIER to carry out a logistics self-assessment
including drafting of action plans in accordance with the guidelines (e.g.: VDA Volume 17 / ODETTE
Logistics Evaluation/ AIAG MMOG).
As required, BOSCH carries out logistics audits on the basis of SUPPLIER’s logistics self-assessment.

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5. Outlook
BOSCH is continuously striving to improve its incoming and outgoing logistics processes. This meansthat the requirements placed on suppliers will continue to change in future.
The goal is to formulate standardized requirements and to limit logistics concepts to a manageable
variety.
In this, the focus will be on:- Establishment of the e-business capability of BOSCH suppliers and increased digitalization of the
supply chain through EDI/WebEDI.
- Introduction of the relevant BPS procurement control and transportation concepts (compare to1.2.3,3)- Integration of suppliers into concepts such as BPS (BOSCH Production System)- Introduction of the Global Transport Label (GTL).
- Implementation of measures to simplify the returnable management process, for example theintroduction of purchase/ sale systems and RFID technology for tracking returnables.

This requires the proactive involvement of BOSCH suppliers and service providers. Only suppliers
who are prepared to proactively cooperate with BOSCH in new, collaborative concepts may expect tocontinue business with BOSCH on a long-term basis.

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6. Abbreviations
3PL

Third Party Logistics: Integrated external logistics service provider (transport and/or warehousing)ABS

Acrylonitrile-butadiene-styrene

AIAG

Automotive Industry Action GroupASN

Advanced Shipping Notice

AT

Working day

BPS

Bosch Production System

C-TPAT

Customs-Trade Partnership Against Terrorism

DCM

Delivery Control MonitorDFÜRemote data transmission, see EDI

DIN

Deutsche Industrie-Norm (German industry standard)

EDI

Electronic data interchange

EDIFACT

Electronic data interchange for administration, commerce and transport

EDL

External logistics service provider

EPP

Expanded Polypropylene

EPS

Expanded Polystyrene

ESD

Electrostatic discharge

EN

European norm

EU

European Union

GaV

Credit advice procedure

GSP

Area Bounded Forwarder

KANBANpulls system based on consumption as in the Toyota production system

KLTStandardized small load carrier

LAB

delivery call-off/release process

LBA

Luftfahrt Bundesamt (aeronautical federal office)

LBW

Stock movement

LEB

Supplier Result Assessment

ASN

Advance Shipping Notice

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Milkruntransportation concept with predetermined routes and regular transport intervals

ODETTE

Organization for Data Exchange by Tele Transmission in Europe

PE

Polyethylene

PP

Polypropylene

PPS

Production planning system

PS

Polystyrene

PVC

Polyvinyl chloride

VDA

Verband der Automobilindustrie (German Automobile Industry Association)

VDE

Verband der Elektrotechnik (German Electrical Engineering Association)

VMI

Vendor managed inventory

WebEDI

EDI via internet, with content displayed and/or entered using a browser

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7. Attachments
Attachment 1

Supplier Result Assessment (LEB): Criteria of the logistics result (LR)

Attachment 2

Categories of logistics complaints

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Attachment 1: Supplier Result Assessment (LEB): Logistics Result (LR)(Assessment Period till 31.12.2006)

The current valid LEB is available from the responsible RB contact.

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Attachment 2: Categories/subcategories of logistics complaints

Quantity differencess (MD):- Higher than ASN / delivery note
- Lower than ASN / delivery note

Delivery notes (LP):- No ASN at delivery- incorrect /missing DN data
- deviation between ASN and Delivery Note

Packaging (VP):- Barcode/transponderfault packaging unit
- incorrect labelling of packaging unit
- wrong or missing material tag- damage of product- damage and pollution of container / packaging- incorrect packaging

Incorrect Delivery (SO):- Delivery to incorrect customer unloading point- Delivery to incorrect customer- mixed delivery- incorrect product delivered

Rescheduling the production
Stop of production line Bosch plant
Stop of Production line Bosch customer

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