1. Home
  2. 2. General Requirements
  3. 2.2 Specific Requirements
  4. 2.2.5 Logistics

2.2.5 Logistics

Purpose:

To define Veoneer Logistic Requirements: Packaging, Labelling, Contract Requirements, Forecasts and Orders, EDI, Deliveries, and Logistics Audits.

Input from Veoneer:

        - access to local Logistic Requirements (VSM/Local Documents)

        - access to WEB SUPPLY

Requirements:

In this document the word "shall" indicates a requirement and the word "should" indicates a recommendation.

1.Scope

Veoneer Logistics Requirements are applicable to all Veoneer suppliers and their sub-contractors.

Additional local logistics requirements are posted on the Veoneer Partner Portal.

Failure to comply with any Veoneer Logistic Requirements should start a Non-Conformance Report (NCM), and the resolution process that follows the VSM "Complaint Reporting and Resolution".

This will affect the supplier's On Time Parts Index (OTP) as described in the Veoneer Standard Supplier Rating VS051.

2.Packaging

2.1.General

All packaging shall be according to VS246 and import/export regulations, and approved by Veoneer prior to any delivery. Packaging might be evaluated by qualification tests upon Veoneer’s request.

2.2.Packaging Specification

Veoneer and the supplier shall agree upon packaging in the Contract Review and S-APQP. The packaging shall be specified in the Packaging Specification.doc. Information related to packaging definition and validation shall be uploaded into the SQP Project using 'SQP IT application in VPP' (see Training).

It is the supplier's responsibility to ensure delivery of non damaged parts according to the Packaging Specification and to inspect the packaging with regard to suitability before using it.

2.3.Returnable packaging

Veoneer favours the use of re-usable standard packaging where applicable.

Veoneer or the supplier shall buy or rent a limited quantity of packaging. If Veoneer owns the packaging the supplier may be charged rent for exceeding quantities.

The responsibility of maintenance and cleaning is to be defined in the Packaging Specification. If not specified, it is the supplier´s responsibility.

Returnable packaging assigned for the defined supply chain is to be used exclusively for Veoneer supplies. In the event of missing or damaged quantities Veoneer shall be notified immediately.

Veoneer may debit the supplier’s account a replacement fee if packaging owned by Veoneer is missing or is damaged due to supplier negligence.

2.4.Disposable Packaging

Disposable packaging is only to be used when considered economically beneficial or when regulations require it.

Any form of disposable packaging (including sub-packaging) shall comply with all international and local recycling regulations. Cartons and pallets shall be of sufficient quality to protect goods in transit.

2.5.Changes of Packaging

Changes of packaging are only possible after agreement from Veoneer and shall be implemented by the supplier after receiving a new Packaging Specification or packaging amendment documentation.

2.6.Substitute Packaging

In the event that substitute packaging cannot be avoided Veoneer shall be sent a written deviation request prior to the delivery. Veoneer shall consider the effects of the deviation and estimate the extra costs from the non-standard process that may be debited to the supplier’s account.

2.7.Packaging weight and size

Individual packaging weight and size shall be according to the Packaging Specification.

2.8.Packaging storage

Packaging shall be stored and maintained dry, clean and usable.

2.9. Pallets

All pallets shall be in perfect condition to ensure stackability and usage without risk.

For intercontinental transports pallets and collars shall comply with ISPM 15.

2.10.Transportation

Pallets shall during transportation be loaded and secured to avoid any kind of damage. Metallic straps are forbidden.

For continental and domestic transports plastic wrapping should be avoided if possible. For intercontinental transports plastic wrapping should be used if applicable.

2.11.Markings

All appropriate marking shall be compliant with local regulations.

3.Labelling

Correct labelling is the supplier’s responsibility. All labels shall be in English to avoid any confusion.

To secure traceability correct labelling is mandatory on each box and on both sides of each individual pallet.

The supplier shall print labels according to the Veoneer Standard Package and Transport Label / VS244. It includes requirements on approved label layouts, sizes, and the information the labels shall contain. It also declares how to handle mixed components on pallets.

All suppliers can print correct labels by using the WEB SUPPLY application through the Veoneer Partner Portal.

Labelling shall be approved through the PPAP process.

Pre-PPAP samples have to be marked with an orange sticker (Pre-PPAP Label) (Pre-PPAP Requirements)

4.Contract Requirements

4.1.Capacity Planning

Capacity planning of tools, production lines, and personnel training needs to be anticipated, achieved and checked by the supplier to meet the required volumes, based on forecasts given by Veoneer.

If the forecasts or orders are showing demands higher than the supplier’s capacity, the supplier shall take immediate contact with the local Veoneer Logistic Department and propose an alternative supply solution.

A defined reserve of production capacity shall be available within a defined lead time at the supplier upon Veoneer request. This should be specified and agreed in the Contract Review and verified through a Run at Rate.

4.2.24 hours emergency phone number

The supplier shall have English speaking contact persons, and a 24 hours emergency phone number. This contact(s) shall be communicated to the Veoneer Lead Buyer and the local Veoneer Logistic Department.

4.3.Scheduling serial deliveries

Serial production and deliveries shall start only after PPAP approval or interim PPAP approval, and when a valid forecast and order release are available unless specifically required by Veoneer.

4.4.Product Changes and Phase in/out operations

In co-operation with Veoneer the supplier has a responsibility for avoiding obsolete material during phase in/out operations and engineering changes.

Focus areas are:

  • Lead time / minimize batch sizes.
  • Constantly monitor changes.
  • Intensify contacts with the local Veoneer Logistic Department.
  • If necessary modify the Packaging Specification.

5.Forecasts and order releases

5.1.General Information

Veoneer strives for giving the supplier as frequent and reliable information as possible. The basis for Veoneer planning is: customer forecasts and orders, and a levelled production. The planning is done locally by each Veoneer plant.

A new forecast or order release shall always replace the previous release. It is the supplier’s responsibility to review the forecasts and order releases and advise Veoneer in case of problems.

5.2.EDI or WEB SUPPLY

Veoneer enforces the use of EDI. If not EDI capable the supplier shall use the WEB SUPPLY application through the Veoneer Partner Portal (VPP).

EDI is the preferred communication tool for Veoneer and will be rolled out to the Veoneer plants over time.

Veoneer communicates with EDI as described in the Veoneer Standard EDI Messages (VS242/1; 2; 3; 4).

5.3.Forecasts and Order Releases

A forecast is a tool for the supplier to plan for material, production and future deliveries. Forecasts and delivery schedules are communicated to the supplier by DELFOR (EDI) as described in VS 242/1.

An order release is a request from Veoneer for a specific material and quantity to be delivered to Veoneer at a defined time. Order releases are sent to the supplier for delivery and are communicated to the supplier by DELJIT (EDI) as described in VS 242/3.

During roll out of EDI and WEB SUPPLY by Veoneer, order releases may be sent to the supplier by fax or e-mail.

6.Deliveries

6.1.General delivery compliance

Veoneer requires 100 % conformance to delivery and service requirements from all suppliers. It is the supplier's responsibility to ensure that goods are available at the right location on time required by each Veoneer plant, even in the case where Veoneer has defined the forwarding agent. In all cases, the supplier shall make arrangements to have material shipped to meet all required dates even if the supplier is on holiday or shut down. The On Time Parts rating is described in the

Veoneer Standard Supplier Rating VS051.

It is the supplier's responsibility to inform the local Veoneer Logistic Department immediately of any potential difficulties in meeting delivery schedules to avoid production downtime and/or premium freights.

Veoneer reserves the right to reject any delivery that does not conform to the logistics requirements. Failure to comply may also result in Veoneer debiting the supplier's account for all incurred costs.

6.2. Premium freights

In the event that premium freights cannot be avoided, the type of transport should be adapted to the emergency situation. The local Veoneer Logistic Department shall receive all necessary information to be able to contact the transport driver at any time (e.g. Premium Transportation Authorization) and also be informed in advance of the estimated arrival time.

6.3. Deliveries according to FIFO

Veoneer Standard Product Traceability VS004 defines the supplier’s manufacturing lot/batch size. Deliveries to Veoneer must follow the First-In-First-Out (FIFO) principle in respect to the oldest batch available.

6.4. Documents

Since payment is based on receipt of appropriate documents, a physical printed Delivery Note shall be attached with the delivered material. This documentation is mandatory and shall be 100% complete. The Delivery Note shall contain the necessary information described in VS242/2.

An electronic Delivery Note (DESADV) shall be mandatory practice for the supplier (to send) if required by Veoneer as described in VS242/2. In addition an electronic Invoice (INVOIC (self billing)) shall be mandatory practice for the supplier (to receive) if required by Veoneer as described in VS242/4.

7.Logistic Audit

Veoneer recommends the supplier to use the Logistics Evaluation Report issued by the Odette Organization (Material Management Optimization Guideline / Logistics Evaluation) for logistic audits.

Output from Supplier:

Acknowledgement of acceptance of VSM (Veoneer Supplier Manual) which includes:

  • Packaging according to Packaging Specifications.
  • Labelling according to VS244 (Package and Transport Label).
  • Receive and send electronic messages according to (VS 242/1; 2; 3; 4).
  • On Time Parts according to orders.
  • Physical Delivery Note with the delivered material.
  • Logistics documentation (e.g. delivery note, DESADV, EX1 export customs document).
  • Logistics audits and associated improvement action plans.

Reference Documents:

Latest revision
Date:
11/01/2022

Updated 2.25 Logistics with Pre-PPAP Label and Pre-PPAP Label Requirements

Revision history
Change date
Description
Date:
12/10/2020
Text: