Cargotec
Supplier Requirements

1 Management Responsibility

7

1.1 Business Plan

7

1.2 Key Performance Indicators

7

1.3 Financial Stability

7

1.4 Quality Management System

7

1.5 Environmental Management System

7

1.6 Management Review

7

1.7 Resources

7

1.8 Fair Competition

8

1.9 Whistle-blower policy

8

1.10 Code of Conduct

8

1.11 Conflict of Interest & Sanctioned or Exposed Individuals

8

2 Quality Management9

2.1 Document Control

92.2 Quality Planning9

2.3 Internal Audits

9

3 Environmental

10

3.1 Environmental matters

10

3.2 Material data sheets10

3.3 International Material Data System (IMDS) Registration

10

3.4 REACH/ EPA Compliance10

3.5 Environmental impacts

10

3.6 Carbon Emission Reductions

10

4 Risk Management

11

4.1 Risk Plan

112022-01-20 Rev.4

4.2 Compliance with Legislation

11

4.3 Contingency Plan

11

4.4 Emergency Procedures

11

4.5 Security

11

4.6 Insurance

11

4.7 Confidentiality Agreement

12

5 Project Management

13

5.1 Contract Review

13

5.2 Project Management planning13

5.3 Resources and Contact person

13

5.4 Escalation process for Project Management

13

5.5 Change Management13

5.6 Revision Control

13

5.7 IPR - Intellectual Property rights

13

5.8 Project Management handover13

5.9 Prototype building

14

6 Health and Safety Management15

6.1 Health and Safety Management system

15

6.2 Eliminating hazards and reducing Health and Safety risks

15

6.3 Incidents reporting and investigation

15

7 Production

16

7.1 Process Flow Chart

16

7.2 Customer Approval

16

7.3 Work Instructions

16

7.4 Maintenance16

7.5 Customer Tooling16

7.6 Control Plan

16

7.7 Continues Improvements

16

7.8 Rework

16

7.9 Root Cause Analyses

17

7.10 Releasing of Products

17

7.11 Measuring Equipment

17

7.12 Calibration of measuring equipment

17

7.13 Incoming Inspection172022-01-20 Rev.4

7.14 Managing Transportation

17

7.15 Layout and Material Flow17

7.16 Product Audit17

7.17 Labelling and Quantity delivery

17

7.18 Identification18

7.19 Traceability

18

8 People and their Development

19

8.1 Human rights, child labor, forced labor

19

8.2 Compensation and working time19

8.3 Right to organize

19

8.4 Equal Opportunities to grow19

8.5 Education of Personal

19

8.6 Competence Matrix

19

8.7 Development Plans for Employees

19

9 Product Development

20

9.1 Product Development process20

9.2 Design requirements

20

9.3 Project planning20

9.4 Design Review

20

9.5 Development Tools

20

9.6 Control of Design Changes

20

9.7 R&D Capabilities & Innovation

20

9.8 Prototype building20

9.9 QA of Prototypes,

21

10 Purchasing (Supply Chain Management)

22

10.1 Supplier Selection

22

10.2 Supplier Monitoring

22

10.3 Supplier Code of Conduct

22

10.4 Source Identification

22

10.5 Outsourced Services

22

10.6 Outsourced & Assigned Products

22

11 Continuous Improvement23

11.1 Continuous Improvement Program

23

12 Warranty

242022-01-20 Rev.4

12.1 Warranty issues

24

12.2 Warranty Claims

24

13 Product Liabilities25

13.1 Recall Procedure25

14 Logistic26

14.1 Logistic support

26

14.2 Integrated Planning System

26

14.3 Materials management26

14.4 Capacity planning26

15 Spare Parts

27

15.1 Quality27

2022-01-20 Rev.4

1 Management Responsibility
1.1 Business Plan
The Supplier shall have a clear business plan and a strategy to guide the future development of the company.
This plan shall be reflected in respective plans of business units, functions or equal. The plan shall include
objectives, targets, actions, responsibilities and schedules.
1.2 Key Performance Indicators
The Supplier shall define key performance indicators for SQDEC (Sustainability- including Social part,
Safety and environment, Quality as PPM, Deliveries, Environmental and Cost) as minimum, which will be
used to monitor the company’s performance towards its strategic objectives. These KPI shall be measurable
towards the targets into the Business plan. Management shall review these indicators on a regular basis anduse the data to initiate improvement actions.
1.3 Financial Stability
The Supplier shall demonstrate a solid financial history.
1.4 Quality Management System
The Supplier shall ensure that the Supplier itself and all its production units minimum are certified according
to ISO 9001
1.5 Environmental Management System
The Supplier shall ensure that the Supplier itself and all its production units minimum are working
according to requirements of ISO 14001.
1.6 Management Review
Management shall ensure the quality, environmental and risk management systems’ applicability andeffectiveness by regular reviews. The reviews shall lead to planning and implementing improvements.
1.7 Resources
Suppliers Management shall ensure availability of adequate resources. Employees shall have the required
education, training and competencies for their position and tasks. The supplier shall create and retain all
Certificates, These development plans shall support the fulfilment of the supplier’s business plan.

2022-01-20 Rev.4

1.8 Fair Competition
The Supplier deals fairly with individuals and entities with whom they interact.
1.9 Whistle-blower policy
The supplier has a whistle-blower policy that allows people that wish to report gross negligence or intended
breaches with legislation/ethics to report anonymously without the threat of losing their employment or
career options
1.10 Code of Conduct
The Supplier shall have a documented code of ethics or a code of conduct implemented, including temporary
employees that are in line with Cargotec Supplier Code of Conduct.
1.11 Conflict of Interest & Sanctioned or Exposed Individuals
The supplier shall if they have former or current Cargotec Employees working in or owning the company, or
relatives working at Cargotec, be open and transparent of their position in the company.The supplier shall ifthey have sanctioned individuals or PEP's (Politically exposed person) working in or owning the company,
be open and transparent of their position in the company.

2022-01-20 Rev.4

2 Quality Management
2.1 Document Control
The Supplier shall have a document control system to create, check, approve, release, distribute and delete
quality system related documentation and data throughout the whole organization.
2.2 Quality Planning
The Supplier shall have a systematic Quality project planning process.
It shall be used to determine if all engineering design records and specification requirements are properly
understood by the supplier. The manufacturing process shall have the potential to produce products
consistently meeting these requirements on time.
2.3 Internal Audits
The Supplier shall conduct internal quality (System, Project and Process) audits using qualified auditors
according to set procedures. Internal quality audits shall be planned and executed according to the plans.
Audit results shall be a subject to regular reviews and respective corrective actions shall be taken without
unnecessary delay. These corrective actions’ effectiveness shall be verified.

2022-01-20 Rev.4

3 Environmental
3.1 Environmental matters
The Supplier shall consider environmental matters during all phases of its product development process. Allreasonable efforts shall be made to eliminate or reduce hazardous contents from the product and its
manufacturing process.
3.2 Material data sheets
The Supplier shall have procedures for and evidence of recording the raw material content of its products,
Certificates and material data sheets.
3.3 International Material Data System (IMDS) Registration
When requested by Cargotec, the supplier shall obtain adequate knowledge and report material data into
IMDS.
3.4 REACH/ EPA Compliance
Supplier shall at all times provide documented compliance to REACH (Registration, Evaluation,
Authorization and Restriction of Chemicals) on Substances of Concern and any other legislation valid for its
product, like EPA restrictions in the US -prohibitions on processing and distribution of Phenol, Isopropylated
Phosphate (3:1) (PIP (3:1)) or RoHS

3.5 Environmental impacts
The Supplier shall identify environmental impacts. It shall include, but not limited to, emissions to air, waterand soil. All impacts shall be monitored for continuous improvements.
3.6 Carbon Emission Reductions
Supplier should have clear understanding of own CO2 emissions: scope 1 (direct- fuel combustion/ own
vehicles)/ scope 2 (indirect - electricity purchased) / scope 3 (upstream - supply chain/ downstream - productuse and end of life), and clear strategy with projects defined and running, aiming significant reductions of
CO2 emissions.

2022-01-20 Rev.4

4 Risk Management
4.1 Risk Plan
The Supplier shall have an up to date risk plan. It shall promote effective identification, analysis, control,
prevention and monitoring of business risks. Management shall ensure that it is appropriately communicated,
understood and implemented throughout the whole organization. The plan shall include strategy, financials,
quality, operations, supply, logistics, technology, location, natural hazards (incl. pandemic) and (trade)political risks.
4.2 Compliance with Legislation
Supplier must provide documented compliance of National and International legislations as well as specific
European Union legislations. Supplier must also continuously remain updated of changes and news to thelegislation.
4.3 Contingency Plan
Supplier shall have a Business contingency plan. Including Major disruptions, Fire, Production stop etc.
It shall guarantee business operations continuity and customer service in case of an interruption
4.4 Emergency Procedures
The Supplier shall have appropriate emergency procedures including evacuation and rescue plans.
4.5 Security
The Supplier shall implement security procedures covering buildings, employees, documents, IT systems andmovement of products. It shall also include measures to prevent unauthorized access to its IT systems.
Necessary precautions shall be implemented in form of fireproof cabinets, virus scans, up-to-date electronic
back-ups etc. Supplier should maintain restricted access to packing and warehouse (supply chain security)
4.6 Insurance
The Supplier shall have insurance coverage (or similar arrangement in its own capital) that allows it torecover from major disruptions.The Supplier shall have: a liability insurance for finished products covering
Cargotec’s market areas.
4.7 Confidentiality Agreement
The Supplier shall have a confidentiality agreement with all of its employees who have access to sensitive
company or customer information or technology, including temporary employees and resident
subcontractors.

2022-01-20 Rev.4

5 Project Management
5.1 Contract Review
The Supplier shall have a formal Project management review system to convert customer requirements into
Supplier’s internal requirements. The requirements referred to may be: Requirements specifically
documented in Cargotec specifications, purchase order, agreement, request for quotation or otherdocumentation
5.2 Project Management planning
The supplier shall have a project plan for its project management, with milestones included.
The plan shall cover important activities from RFQ to start of production.
5.3 Resources and Contact person
The supplier shall make sure that they have the right resources available for Project management, including
their responsibility. The supplier shall nominate contact person(s) to manage the relationship between
Cargotec and the Supplier. The contact persons shall have fluent skills in English.
5.4 Escalation process for Project Management
The supplier shall have a defined process for handling disruptions in the project plan, and inform Cargotec iftime plan will be affected.

5.5 Change Management
Contractual changes like engineering changes and changes related to customer requirements shall be
managed using Project Management Planning.
5.6 Revision Control
The supplier shall have a system to manage and control that the right specification revisions (such as
drawings) are used for manufacturing. It must also include sub suppliers (Tier 2).
5.7 IPR - Intellectual Property rights
The supplier shall have a policy or procedure to protect 3rd party IPR (Intellectual Property Rights).
According to the policy the Supplier shall have a procedure within its Project Management system to assurethat no 3rd party IPR are included in deliveries to Cargotec without the right to do so.
5.8 Project Management handover
The supplier shall have an official handover process from project management to serial production. There
shall be an agreement between the project and production that they are ready to start serial production.

2022-01-20 Rev.4

5.9 Prototype building
Prototypes shall be managed early in the supplier’s project management system. The plan shall clearly define
how and when a prototype shall be built.

2022-01-20 Rev.4

6 Health and Safety Management
6.1 Health and Safety Management system
The Supplier shall have a documented Health and Safety management system. It shall be under regularreviews and emphasize continuous improvement actions.
6.2 Eliminating hazards and reducing Health and Safety risks
The Supplier shall have a process for Health and Safety precautions and hazard identification, risk
assessment, elimination of hazards and reduce all significant HS risks.
6.3 Incidents reporting and investigation
The supplier shall have a procedure/ process in place, including reporting, investigating and taking action todetermine and manage incidents.

2022-01-20 Rev.4

7 Production
7.1 Process Flow Chart
The supplier shall have a production process implemented according to an optimized plan. The process flow
shall ensure effective operation and control of the process. If any part of the process is subcontracted, thisshall be indicated in the process flow.
7.2 Customer Approval
The supplier’s process and materials including related changes shall be qualified and approved according to
set procedures by the Customer. The records of process and material qualification shall be available to theCustomer.
7.3 Work Instructions
The Supplier shall have work instructions, it shall include descriptions for each workstation in the process.
7.4 Maintenance
The Supplier’s process equipment shall be qualified for the purpose. The equipment shall be underpreventive maintenance according to a specific plan. All records of maintenance shall be stored.
7.5 Customer Tooling
The supplier shall establish appropriate procedures for storing, inspecting and maintaining customer owned
tools, fixtures and jigs. All customers owned equipment must be labelled with “property of Cargotec”.
7.6 Control Plan
The supplier shall define a production control plan in order to keep the process under control. Respective
controls shall be established, for processing, assembly and inspection/testing with results recorded. The
control plan shall be available at the different workplaces. All inspections, testing according to control plan
have been conducted and all records maintained and stored. Operators shall have been trained..
7.7 Continues Improvements
The Supplier shall use statistical methods and techniques to analyze process data for continuous
improvement. All records of all improvements must be stored.
7.8 Rework
The supplier shall define in-process rework and appropriate procedures for conducting it. Repaired and/or
reworked products shall be re-inspected.

2022-01-20 Rev.4

7.9 Root Cause Analyses
The supplier must conduct root cause analyses for production and process failures.
All records must be stored.
7.10 Releasing of Products
Prior to releasing products for delivery the Supplier shall assure that the products conform to requirements.
7.11 Measuring Equipment
The serial production supplier shall have all necessary measuring equipment to be able to measure and verify
if the products comply with all customer requirements, stated on drawings and standards. And also to be able
to keep an in-house process control.
7.12 Calibration of measuring equipment
The Supplier shall have a documented procedure for the calibration and certification of tools/equipment. Alldata from calibration and certification of inspection, measurement and test equipment must be stored.
7.13 Incoming Inspection
The Supplier shall have a procedure describing appropriate inspection of incoming materials. These
procedures shall include systems to ensure traceability of product if found unacceptable.
7.14 Managing Transportation
The Supplier shall establish methods and means for preventing damage to materials and products during
handling and transportation.
7.15 Layout and Material Flow
The Supplier’s manufacturing, "end to end" shall have a clear layout to avoid bottlenecks created due tospace constraints or unsuitable material or product flows. Well-organized, clean and proper order.
7.16 Product Audit
The Supplier shall conduct Product Audits at suitable intervals of the products while they are in stock.
7.17 Labelling and Quantity delivery
The Supplier shall pack and label the products appropriately prior to the delivery to avoid damage or loss. It
shall also be established controls and procedures to assure on-time and right quantity deliveries.
7.18 Identification
The Supplier shall have a documented procedure for ensuring that all products are identified to indicate theirconformance or non-conformance throughout all process steps

2022-01-20 Rev.4

7.19 Traceability
The Supplier shall implement a method for traceability of individual parts used in the final productthroughout all stages of the manufacturing process. When traceability of a finished product is a specificrequirement, every completed product or lot shall have a clear, well-documented means of identification.
This identification shall be recorded and retained as a quality record.

2022-01-20 Rev.4

8 People and their Development
8.1 Human rights, child labor, forced labor
The Supplier does not breach human rights at any of their work places, nor does it allow child labour andforced labour.
8.2 Compensation and working time
Compensation paid to workers and working time is in line with legal requirement and international standards(ILO= International Labor Organisation)
8.3 Right to organize
The Employees have a right to organise themselves to bargain employment conditions.
8.4 Equal Opportunities to grow
The Employees have opportunities independent of race, gender, association, nationality, to grow towards
other and more senior positions.
8.5 Education of Personal
The supplier shall continuously educate and train their personal/resources. All records of all training must be
stored.
8.6 Competence Matrix
The supplier shall have a procedure in place to define/monitor the competence skills the employees/resources
possess.
8.7 Development Plans for Employees
The supplier shall regularly conduct Personal Development Plans with all their employees.

2022-01-20 Rev.4

9 Product Development
9.1 Product Development process
The Supplier shall have a documented product development process to ensure effective planning, execution
and control of the product throughout its lifecycle.
9.2 Design requirements
The development process shall be based on the requirements identified during contract review.
9.3 Project planning
The supplier shall have a project planning tool. It shall clearly identify responsibility for engineering/designand development. Project shall be managed according to planned targets in terms of resourcing, scheduling,
product quality and costs.
9.4 Design Review
The Supplier shall perform formal design reviews to systematically analyze the progress of the productdevelopment activities and their output at certain milestones.
9.5 Development Tools
The Supplier shall validate all design and development tools including software. The tools used shall becompatible with ones used by Cargotec.
9.6 Control of Design Changes
The Supplier shall establish procedures to manage track and document changes in requirements and designs.
The process shall include practices for documentation and version management. The Supplier shall inform
Cargotec of all engineering changes.
9.7 R&D Capabilities & Innovation
The supplier shall have a strategy and plan for future technologies and innovation.
9.8 Prototype building
The Supplier shall be able to handle prototype building during the project phase in the project management.
Prototypes shall be provided to customer according to a set time plan and effective manner.
9.9 QA of Prototypes,
The supplier must verify that prototypes are produced so they are representing the technical documentation.
Records of verification must be available upon request.

2022-01-20 Rev.4

10 Purchasing (Supply Chain Management)
10.1 Supplier Selection
The Supplier shall have a defined process to select and approve its new potential suppliers, including Code of
Conduct compliance.
10.2 Supplier Monitoring
Supplier performance shall be monitored on monthly (serial production) basis on minimum QD (Quality and
Deliveries) and targets shall be defined.
10.3 Supplier Code of Conduct
The supplier requires their existing suppliers to sign a Code of Conduct (or similar process, to verify
sustainability and compliance in their supply chain).
10.4 Source Identification
The supplier commits to provide necessary information to confirm that conflict minerals (tantalum, tin,tungsten, and gold) in their supply-chain are "conflict free". The supplier are following the OECD due
diligence guideline for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
10.5 Outsourced Services
The supplier shall have procedures to ensure quality and sustainability of outsourced services (example ofIT).
10.6 Outsourced & Assigned Products
The supplier shall have a procedure for Quality Planning and Assurance of outsourced and assigned products(example of painting).

2022-01-20 Rev.4

11 Continuous Improvement
11.1 Continuous Improvement Program
The supplier shall have continuous improvement programs. The programs shall be applicable for internal
improvements, as well as for supply chain improvements.

2022-01-20 Rev.4

12 Warranty
12.1 Warranty issues
The supplier shall have a process for handling Warranty issues.
2.2 Warranty Claims
The Supplier shall have a corrective action process for warranty to evaluate customer claims

2022-01-20 Rev.4

13 Product Liabilities
13.1 Recall Procedure
The Supplier shall have a Product Liability Procedure including a recall process and defined liability related
responsibilities.

2022-01-20 Rev.4

14 Logistic
14.1 Logistic support
The Supplier shall have an established system and access to necessary service providers to supply bothproduction material and spare parts to Cargotec on a global basis
14.2 Integrated Planning System
The Supplier should use an integrated planning system for order management, materials requirements
planning, procurement, warehousing and inventory management.
In order to reduce the administrative waste in his processes, supplier should have an adequate Electronic
Data Interchange (EDI) system in place.
14.3 Materials management
The Supplier shall work according to First-In-First-Out (FIFO) principle.
The Supplier should actively manage inventory accuracy by regularly stock takes.
14.4 Capacity planning
The Supplier shall have a tool for capacity planning. This tool must also include sub-suppliers,sub-contractors and raw-materials.

2022-01-20 Rev.4

15 Spare Parts

15.1 Quality
The supplier shall have a process for Quality Planning and Assurance of spare parts.

2022-01-20 Rev.4