Supplier Compliance Guidelines · To find instructions for sending ASNs (EDI 856): 1. Visit 2. Click Supplier Information 3. Select Lear EDI Guidelines from the left menu 4. Select

Supplier Compliance Guidelines

Supplier Training

• Currently, Lear uses a network of cross-docks to

optimize inbound freight for its seating plants in North

America.

• The network consists of five facilities:

1) Romulus, MI

2) Indianapolis, IN

3) El Paso, TX

4) Laredo, TX

5) San Luis Potosi, Mexico:

(Launched June 2013)

Current Cross-dock Network

• Electrical Power Management Systems (EPMS) will be

joining the seating cross-dock network in 2013

• Supplier compliance is crucial to success

• Consequences of non-compliance:

– Quality Notices (QN’s)

• require submission of appropriate root cause analysis and

corrective/preventive action

– Debits for associated costs and losses

– Downgrade on supplier scorecard

EPMS Integration

Current vs Improved Network Operations

Current Process

• Routing orders rec’d only

when there is a change.

• Current cross docks with

Central Transport

• Unmanaged pick-up

windows and ship days

• One bill of lading per

plant destination

Improved Process

• Routing orders will be

received weekly

• New cross docks with

Linc

• Managed pick-up

windows and ship days

• Combined bill of lading

per shipment

1. AIAG standard bar code labeling

2. Pallet stack-ability/standardized component packaging

3. Electronic Advanced Shipping Notice (ASN) : EDI-856

4. Packing Lists, Bills of Lading, Commercial Invoices and

Customs Paperwork

5. Supplier Routing / Packaging

Supplier Compliance Requirements

• AIAG bar code labels are required for every part

– Must conform to samples below, and contain all information

– Part number, quantity, and serial number are required for scanning

– Box labels and master skid labels are required

– Final Lear destination must be clearly identified

• Label Examples:

1. Bar Code Labeling - AIAG

Sample box label Sample master label

• Mixed load label shall be used to identify multiple parts

on one pallet shipping to a single plant

• For a pallet with mixed parts, a Master Label is required

for each part

• Master Labels shall be placed on one side of the pallet

where they can be easily scanned

1. Bar Code Labeling – AIAG (cont’d)

1. Bar Code Labeling – AIAG (cont’d)

1) Individual Master Labels 2) Mixed Label 3) Container/Box Label 4) Packing Slip

Example - label locations on a pallet:

*Each label should be easily accessible for scanning

4

• Supplier ship-from location and final Lear destination are

required in human readable fields

• Additional details can be accessed at www.lear.com

(click on Supplier Information > Web Guides > Logistics

Requirements for Suppliers > Supplier Packaging

Requirements & Guidelines)

• AIAG training courses can be found at www.aiag.org

(select Training)

1. Bar Code Labeling – AIAG (cont’d)

• Pallets must be stackable up to a height of 102” and

individual pallets cannot exceed 51” high.

• Pyramiding, box overhanging, brick stacking and center

column stacking are unacceptable

• All pallets must be shrink-wrapped or banded (min of 2

bands in each direction)

• Pallets over 2,000 pounds must be banded using non-

metal banding

2. Packaging and Palletizing Requirements

2. Packaging and Palletizing - Examples

2. Packaging and Palletizing - Examples

Bad: Pallet height too high (tower loaded)

2. Packaging and Palletizing - Examples

Good: Load dimensions = 47” x 45” x 50”

2. Packaging and Palletizing - Examples

Bad: Excess headspace in carton

*Excess headspace is inefficient leading to crushed boxes and damaged goods

2. Packaging and Palletizing - Examples

Good: Carton filled to capacity

2. Packaging Videos

What happens when you don’t

comply with packaging

requirements

How to properly package

• Palletize in level layers to maximize stackability

• It is imperative that material for each Lear final

destination is palletized separately

• Cross-docks will not break down and reconfigure pallets

2. Packaging and Palletizing - Shipping

• ASNs must be sent out within 20 minutes of shipment

departure

• ASNs must be electronically sent to Lear’s final

destination.

• Each Lear part and quantity shipped requires an ASN

for each plant.

• MX02MO37 - Monarca - 160 (Cd Juarez, Mexico)

• MX02AZ79 - Planta Juarez - 164 (Cd. Juarez, Mexico)

• MX02TR48 - Planta Torres – TR48 (Cd. Juarez, Mexico)

• MX02NOV2 – Nova - 169 (Chihuahua, Mexico)

• MX02SI65 - Sicomoro/Americas - 163 (Chihuahua, Mexico)

• HN02NC72 – Naco - 213 (Honduras)

• HN02HEHE - HEDS-214 (Daws-Honduras)

• PH02GM71 – Cebu - 224 (Philippinnes)

• PH02GM71 – Gabriela - 271 (Philippines)

3. Electronic ASN – EDI 856

Plant Code / Name / Location

ASN required elements:

1. Part Number

2. Quantity

3. Trailer Number

4. Time & Date Shipped

5. Packing List Number

6. Lear Plant Destination

7. Shipment Gross Weight

3. Electronic ASN – EDI 856

To find instructions for sending ASNs (EDI 856):

1. Visit www.lear.com

2. Click Supplier Information

3. Select Lear EDI Guidelines from the left menu

4. Select your region

5. Select your plant

6. Click the Dispatch Advice Guidelines file to access the

detailed information

3. ASN – Submission Guidelines

• The following documents are required to be sent to each final

Lear destination:

• All documents must be printed (hand-written is not accepted)

• Drivers must be provided each document to present at cross-dock

• Commercial invoice / Packing list must be completed timely & accurately,

and sent separately for each final Lear destination (a separate, exclusive

document for each destination)

4. Required Shipping Documents

Packing list: (must match the ASN and must include the correct gross weight, must include Lear Plant, & must be attached to pallet in a packet)

Bill of lading (Current process): (must be separate for each final location)

Commercial invoice: International Shipments Only

(e.g. Brazil, Honduras, Argentina and Cebu)

Bill of lading (New Process): (must be one BOL for the entire

shipment including all final locations)

Single Plant BOL – Current Process

Commercial Invoice - Example

Invoice Number Invoice Date

Shipper Name and Address Sold to Party (if different than consignee)

Ship to (Consignee Name and Address) Notify Party Name and Address

Mode of Transport (air, ocean, truck) Transport Company Name

Customs Broker at (if known) Freight Terms (collect or prepaid)

Terms of (FOB, CIF, Ex-Works, Consignment,

Inter-Company Transfer, etc.)

Currency of

Description of Articles Quantity Unit Price Extended Price

Country of Origin of Article: (Mandatory)

TOTALS

Signature of Shipper Phone Number of Shipper

• The Bill of Lading must contain the following:

Description of Goods per Package

Type of Package: Box or Pallet

Dimension of the Package: L x W x H

Unit of Measure: Meters or Inches

Net Weight and Gross Weight

Unit of Measure: Kilograms or Pound

• BOL’s must also contain the Final Destination (Lear Plant)

as well as the cross-dock address in the consigned area

Examples: Correct consignee : Incorrect consignee:

Lear NACO – 213 Central Transport

c/o Central Transport 921 Beiger St.

921 Beiger St. Mishawaka, IN 46544

Mishawaka, IN 46544 USA

USA

4. Required Shipping Documents – BOL’s

The packing list must always refer to the related

commercial invoice (if applicable) & must include:

Lear Part Number

Description of Goods per Package

Type of Package: Box or Pallet

Dimension of the Package: L x W x H

Unit of Measure: Meters or Inches

Net Weight and Gross Weight

Unit of Measure: Kilograms or Pound

4. Required Shipping Documents – Packing List

• Packing list(s) must be consolidated per load, per

plant

• Global Logistics’ supplier routing instructions must be followed

– Instructions identify standard carrier, shipment day, shipment mode, detailed shipping requirements, etc.

– Upon receipt, instructions must be reviewed, signed, and returned

– If necessary, contact respective Lear plant for expedited shipping instructions (Premium Transportation Authorization # required)

• Contact information:

1. Ryder

– Kevin Robbins (krobbins@ryder.com / 915-892-2239)

– Francisco Rodriguez (francisco_rodriguez@ryder.com) / 011-52 (81) 1157 0403

2. Lear Transportation Operations

– Luis Perez (lperez04@lear.com / 915-787-7679)

– Ruben Lazo (rlazo@lear.com / 915-787-7752)

3. Lear Global Logistics

– Cheri Goodman (cgoodman@lear.com / 248-447-1333)

5. Supplier Compliance / Routing Info

5. Current Supplier Routing Instructions - Example

Supplier Shipping Point Destination Point

Mode of Transportation

Must be signed & returned

Supplier specific Ship day

Shipping Requirements

5. New Supplier Routing Instructions - Example

Supplier Shipping Point

Destination Point

Mode of Transportation

Supplier specific Ship day

Shipping Requirements

Must be signed & returned

• Additional costs generated by missed ship-days or

window times will be suppliers’ responsibility

• Additional costs generated by the use of incorrect

transportation mode will be suppliers’ responsibility

• Routing instructions may change as a result of the

EPMS integration into the Seating Division network.

5. Supplier Routing - Additional Info

• Download Lear Supplier Packaging Requirements and Form2100 (Unit

Load Data Sheet) @ www.lear.com

• Ensure expendable / returnable containers meet Lear packaging

requirements (failure to do so will result in rejection of packaging designs)

– Lear plants require an approved, standard packaging footprint for all parts

– All packaging must protect the quality of the part, optimize transportation, and optimize

cost-per-piece

• Unit Load Data Sheet (ULDS) approval process:

– Send to Corporate Packaging Engineer for approval

• send email to packaging@lear.com

• Matt Siakel @ msiakel@lear.com / 248-447-5826

5. Supplier Packaging Requirements

• Prior to first shipment it is imperative to contact Lear to verify the following:

Lear Designated Transportation Carrier & Customs Broker (if applicable)

Confirm supplier routing instructions

Documentation / EDI

Confirm bill of Lading requirements

Confirm commercial invoice details

Confirm ASN and delivery window requirements

Confirm overall EDI requirements / connections

Packaging

Confirm approved packaging design(s) & density(ies)

Confirm minimum order quantity(ies) – level pallet layers preferred

Additional Recommendations

• Your cooperation and compliance are crucial for a

smooth integration

• Compliance is essential to both Lear and its suppliers.

Failure to comply will result in QN’s and may result in significant costs and losses

Closing Thoughts

1. Primary contact: Anthony Salter – asalter@lear.com / 248-447-1517 - (Until 8/21/13) Carlos Ramos – cramos04@lear.com / 915-307-9237

2. Secondary contacts: Joe Duran – jduran@lear.com / 915-307-9236 Cheri Goodman – cgoodman@lear.com / 248-447-1333