Packaging Guideline for Suppliers of · recycled in a sustainable manner. To meet the requirements of the Packaging Regulation and to avoid unnecessarily harming the environment,

Packaging Guideline for Suppliers of ZKW Lichtsysteme GmbH,

ZKW Slovakia s.r.o., ZKW Lighting Systems (Dalian) Co., Ltd.,

ZKW México S.A. de C.V. VERSION 12 - AS OF 2019

2 CO_Packaging_Guidelines_EN

Table of Contents

1 List of abbreviations ................................................................................................................... 4

2 Introduction ................................................................................................................................ 5

3 Packaging .................................................................................................................................... 6

3.1 General ........................................................................................................................................................................................... 6

3.1.1 Material selection .............................................................................................................................................................. 6

3.1.2 Size and weight selection .............................................................................................................................................. 7

3.1.3 Container filling .................................................................................................................................................................. 7

3.1.4 Container marking and labeling ................................................................................................................................. 8

3.1.5 Cleaning .................................................................................................................................................................................. 8

3.1.6 ESD packaging and corrosion protection .............................................................................................................. 9

3.2 Reusable packaging .............................................................................................................................................................. 10

3.2.1 Provisioning of packages ............................................................................................................................................ 10

3.2.2 Warehousing of packaging provided .................................................................................................................... 10

3.2.3 Container accounts ....................................................................................................................................................... 10

3.2.4 Stocktaking / inventory control .............................................................................................................................. 11

3.2.5 Complaints ......................................................................................................................................................................... 11

3.2.6 Substitute packaging and extra handling efforts .......................................................................................... 11

3.3 Disposable packaging .......................................................................................................................................................... 12

4 Attachment ............................................................................................................................... 13

4.1 Goods tag sample in conformity with VDA 4902 version 4 ........................................................................... 13

4.2 Link to packaging datasheet ............................................................................................................................................ 13

4.3 Catalog of standard ZKW packaging containers for packaging provided ................................................ 14

4.4 Hazard warning sign for ESD-susceptible parts.................................................................................................... 15

5 Change history .......................................................................................................................... 16

CO_Packaging_Guidelines_EN 3

OBJECTIVES OF THE PACKAGING GUIDELINE FOR SUPPLIERS

This document intends to make the suppliers involved familiar with the packaging guidelines of ZKW Lichtsysteme GmbH in a cooperative manner.

Its purpose is to standardize and limit the types of packaging used.

An optimized packaging design as well as standardized dimensions and loading units aim to assure the quality of the delivered articles and avoid additional efforts.


1 List of abbreviations

6M-SOP 6 Months after Start of Production

AKL Automatic Small-parts Warehouse

ASN Advanced Shipping Notice

DIN Deutsches Institut für Normung (German Standardization Organization)

EDI Electronic Data Interchange

EN European Standard

EPP Expanding Polypropylene

ESD Electrostatic Discharge

EW Einweg - Disposable

ID Identification

IV-System Information Processing System

LAB Delivery Schedule

LGP Logistics Planning

MW Mehrweg - Reusable

PE Polyethylene

PP Polypropylene

PPS Production Planning System

PS Polystyrene

SCM Supply Chain Management

VDA Verband der Automobilindustrie (German Association of the Automotive Industry)


2 Introduction

This guideline has been designed to standardize the number of packaging types, to limit the increasing number of variants, to minimize the associated freight costs at the different sites including the modes of transport and to adapt these to local market conditions.

In conjunction with standardized dimensions and balanced quantities in every loading unit, an optimized choice and design of containers and packaging is aimed at the following goals:

• Assuring the quality of articles

• Adhering to purity and cleanliness standards

• Avoiding the loss of cargo space

• Ensuring an economically feasible storage

• Minimizing the order picking efforts

• Minimizing the handling efforts

• Consistently using the containers delivered right through to the assembly line

• Minimizing the increasing number of diverse packaging

Irrespective of the chosen type of packaging, the supplier must meet the following requirements:

• Avoiding an in-transit loss of quality

• Forming economic loading units

• Meeting ZKW's cleanliness requirements

• Optimizing the container capacity usage

• Securing the loading units in transit

• Ensuring stackability

• Meeting the specified standard dimensions

• Withdrawing parts ready for handling (mainly with regard to specific parts such as electronic components; their position inside the packaging will be specified by ZKW)

• Using recyclable means of packaging

• Preferably using reusable packaging with a cover

• Reducing the use of disposable packaging materials.

This guideline is in force and effect and supersedes all previous versions.


3 Packaging

3.1 General

A distinction is made between reusable (MW) and disposable (EW) packaging with reference to the site of the supplier and ZKW (see table below):

3.1.1 Material selection

Abrasion resistance is the key to choosing a material with the aim of avoiding particle emissions (preferred materials are PE and PP)!

• Do not use packaging made of cardboard, wood, polystyrene, corrugated cardboard, compressed chipped wood or equivalent materials.

• Pallets to be made of plastic (except for overseas transport)

• Do not use any extra padding or cushioning material (such as polystyrene flakes,...).

• Use plastic sheeting, plastic nonwovens, waterproof foil, plastic trays or equivalent as interlayers.

To ensure an ESD protective packaging from the supplier to ZKW, remember to place electronic components in ESD packaging. Contact Project Purchasing and Quality Engineering to discuss any non-conformities.

Design EPP trays and thermoformed cups in such a way that EPP and thermoformed lids can be used, which are general-purpose ZKW lids (4.3 Catalog of standard ZKW packaging containers for packaging provided). ZKW will provide the technical details of box covers needed to design the associated containers.


3.1.2 Size and weight selection

Top priority when choosing the size of containers is using preferably 100% of the loading volume while considering the max. gross weight (see below) and the batch size agreed on with ZKW with reference to average monthly needs (4.2 Link to packaging datasheet).

In order to avoid packaging waste wherever possible, the packaging volume and weight should be reduced to the absolute minimum required to protect the goods. Reusable packaging further minimizes the waste of materials.

For the above reasons, reusable packaging should always be given preference. Keep disposable packaging materials at a minimum. Ensure that reusable and disposable packaging materials are recycled in a sustainable manner. To meet the requirements of the Packaging Regulation and to avoid unnecessarily harming the environment, environmentally compatible materials are to be used and the statutory provisions are to be adhered to. The design of the internal packaging must consider easy repacking.

Since repackaging and handling efforts are best avoided, the container delivered should support automatic placing into stock and withdrawal for supply at the assembly line. Therefore, the following standard dimensions of loading units (including the pallet and pallet cover) must not be exceeded:

L x W x H [mm]: 1200x800x1100

Also consider the following weight limits:

The maximum gross weight of small load carriers is 15 kg.

The maximum gross weight of large load carriers (including pallet) is 500 kg.

Refer to section 4.3 Catalog of standard ZKW packaging containers for packaging provided for standard container sizes.

The supplier must allow for an easy change of packaging up to 6M-SOP (e.g., from large to small AKL container, from small folding box to large AKL container, or from large to small folding box, etc.) without causing extra costs.

3.1.3 Container filling

Every container must contain parts of a single part number only. Please remember that this includes the delivery of left-hand and right-hand parts in separate packages.

If inner packages are used (blisters, trays, dividers, etc.), check that their height allows the container to be completely filled (i.e., you must adapt the height of every layer to the internal container height). This is to optimize the protection of all parts.

A delivery of sorted parts is standard as defined in the packaging datasheet. A delivery of small-volume quantities shall be agreed on separately.


3.1.4 Container marking and labeling

In case the supplier provides packaging not owned by ZKW, the supplier shall affix an unmistakable and obvious mark of ownership to such packaging. ZKW will be unable to ensure a proper return if such an unmistakable and obvious mark of ownership is not in place.

Containers owned by ZKW are clearly marked with "Property of ZKW" plus a transport container number.

To prevent parts from being mixed up in the process, every container and/or transport unit containing identical parts should have a (barcode-ready) goods tag according to VDA 4902 version 4 affixed to it. As of the first delivery, the goods tag (dimensions: 210 mm x 148 mm (A5 landscape)) shall show the following details

• Goods recipient (attention of xxx)

• ZKW unloading site

• Delivery note number (plain text and barcode)

• ZKW part number (plain text and barcode)

• ZKW designation

• Content capacity (plain text and barcode)

• Batch number (plain text and barcode)

• Supplier number (plain text and barcode)

• Date

• Design revision date (index)

Every container must have a legible label on it, either in a pouch or in a fixture designed for that purpose. Do not use adhesive labels. Prior to filling returned empties, the supplier shall remove all old labels (such as the customer's approval marks, VDA goods tags or equivalent). Refer to the Catalog of standard ZKW packaging containers for packaging provided to know the specified location of labels on a container. For easy identification during receipt, the label should always be visible also when the packaging is stacked. To ensure proper scanning, also check that the label does not cover any container IDs (barcode).

3.1.5 Cleaning

The supplier is responsible for filling clean and dry containers only.

As a general rule, do not line reusable containers with plastic bags. Exception: To avoid impurities, reusable containers to be used for greased articles shall first be lined with a plastic bag. Or you may use special types of containers admitted for the transport of these products only. The supplier shall procure the PE bags, which will not be provided by ZKW.

Production in "low-dust" environments sets particular cleanliness requirements for the components to be processed. The specific standards must also be met by purchased parts.

In these cases, the suppliers' production processes must ensure that the components are never exposed to the effects of dust or dirt that might reduce the quality. If this proves to be impossible, the supplier must take appropriate protective and preserving measures (by choosing and designing the packaging with storage and transport in mind).


This situation is best complied with if the cleanliness requirements are separately defined and specified for every article.

Load carriers are provided and/or shipped "well-swept" (by removing loose packaging residues). In case load carriers fail to meet the quality requirements of the material transported in them, the supplier shall take further cleaning actions at his own expense (e.g., by washing or wiping the containers, …).

3.1.6 ESD packaging and corrosion protection

ESD is short for "electrostatic discharge". It is caused by two bodies carrying different voltage potentials exchanging their charges. Attach or stamp the hazard warning for ESD-susceptible parts (see Annex) in an obvious place on the packaging.

ESD may provoke invisible damage to electronic components.

Note that all parts of the packaging (outer case, cover, internal blister, interlayers, etc.) that might contact electronic components as well as the load carriers they are transported in must be antistatic and conductive.

In order to ensure comprehensive ESD protection, package the entire loading unit (including the carrier for electronic parts) in a conductive manner. Check that every component in the packaging has an ESD hazard warning in conformity with DIN EN 61340-5-1:201707 Hazard warning sign for ESD-susceptible parts on it.

Every conductive material belongs to one of the following four categories:

Shielding materials (less than 10³ Ohms)

By keeping out or attenuating all current flow, these materials act like a Faraday cage. Most shielding materials contain a conductive metal or carbon element; this is also specified as the preferred solution for the packaging of individual prints.

Conductive materials (between 10³ and 105 Ohms)

These low-resistance materials make sure that charges quickly dissipate. They are specified for most electronic components such as prints transported in multipack blisters.

Dissipative/antistatic materials (between 106 and 1011 Ohms)

These materials equalize differences in potential within a fairly short time. They are a good choice for improving the protection of components containing electronic parts already.

Insulating materials

They feature a high surface resistance of no less than 1012 Ohms and are difficult to ground. Static charges will remain in one place of these materials without any dissipation.

Long periods of shipment and provisioning under extreme changes in temperature and humidity may cause serious corrosion damage, particularly in maritime containers. International shipments must therefore consider particular means of corrosion-proofing.


3.2 Reusable packaging

3.2.1 Provisioning of packages

In cases where ZKW has agreed to provide the packaging, the packaging volume will be specified by the packaging datasheet details (production batch size, minimum inventory level and shipping time). Packaging agreed to be provided to the supplier shall be solely used for recirculation between ZKW and the supplier but not for the supplier's own or third-party use (sub-suppliers). Contact ZKW in due time if products cannot be delivered in the specified packaging.

In case the supplier develops the packaging, he is also responsible for ensuring that the parts supplied suffer no loss of quality by the packaging.

First, ZKW provides the supplier with the packaging datasheet including the details of the outer packaging. Next, the supplier will design a packaging concept and submit it to ZKW for approval. A reference sample of the first off-tool parts is then sent to ZKW. Only upon approval by ZKW's Quality Dept. shall the supplier procure the packaging quantities required for series production. Once the series-production quantity has been received, the supplier will send the delivery note to ZKW, so that ZKW is able to create the loading resource number and start stocktaking. Package designs must always take stackability into account (e.g. for trays). → Link to packaging datasheet

Based on previously scheduled deliveries of no more than 2 weeks and the specified packaging, the supplier will determine the need for reusable empties and request the determined amount from ZKW's Packaging Management with a lead time of at least 7 business days.

The supplier shall not misuse the empties for covering their own stock circulating in production or with upstream suppliers, nor shall they keep a stock in excess of the currently scheduled delivery.

In order to keep track of the circulating containers in the container accounts as well as the extra means of reusable packages (e.g. interlayers, plastic lattices, …), it is mandatory that the shipping documents state the type and quantity of empties in every delivery to ZKW. The supplier will check the empties provided against the type and quantity stated on the delivery note.

Approving of (substitute) packaging materials does not relieve suppliers of their responsibility of proper parts deliveries.

3.2.2 Warehousing of packaging provided

The supplier has to store the empty packaging in a roofed and dry area. They must also ensure that the packages are not mixed with materials not classified as packaging materials (cardboard, fillers,…).

EPP trays for return deliveries to ZKW shall be turned upside down, sorted and collected on pallets, and kept under roof (in a dry area). One way packaging components shall be disposed of. Empties will be handled by returning (exchanging) containers with every shipment.

3.2.3 Container accounts

ZKW sets up an account to keep track of every inward and outward movement of every reusable packaging.


Reusable packaging is marked with an identification number. Stock movements of all load carriers will be listed and their stock taken at the end of every month. Reconciled container accounts will be checked and discrepancies, if any, reported within 14 days by submitting a copy of the delivery note for evidence.

Reconciled stock levels shall be deemed irrevocably and finally confirmed if no response is sent to ZKW.

Both parties mutually benefit from the packaging accounts being correct. A sufficient amount of empties can be provided in due time only if the counted packaging stock matches the actual stock at hand.

3.2.4 Stocktaking / inventory control

In order to keep track of the circulating containers in the container accounts, it is mandatory that the shipping documents state the type and quantity of empties in every delivery to ZKW.

This applies to extra means of reusable packages (e.g., interlayers, plastic lattices, …) too.

The packaging stock shall be counted at least twice a year once requested by ZKW's Container Management. It is mandatory to physically take the packaging stock. All documented stock levels are deemed accepted if there is no response.

If discrepancies are found to be caused by the loss of or damage to containers owned by ZKW, the costs of procuring replacement resources will be charged to the originator of such loss or damage.

3.2.5 Complaints

All deliveries of containers in need of repair should first be discussed with ZKW's competent departments. In case damaged containers are supplied with goods in them, such shipments shall be confirmed by the carrier and immediately reported to ZKW's competent department.

The parties will then cooperate to decide on the return or disposal of the containers concerned and the correction of accounts.

The supplier is liable for the reduced quality of empty containers attributable to the shipment of non-conforming, wet or contaminated containers.

3.2.6 Substitute packaging and extra handling efforts

Reasons for using substitute packaging (e.g., start of pilot production, unusual lead times, short-term increase of scheduled deliveries,…) shall be given in writing and agreed on with the purchased parts controller and container management in due time.

If so, add "substitute packaging" or "alternative packaging" to the delivery note and do not forget to add the person the packaging was agreed on with (name, department code, phone no.).

In case the supplier fails to use the specified (substitute) packaging owing to actual fault (e.g., by using the wrong container, dirty packaging, …), ZKW reserves the right to charge the additional costs of handling, disposal, rejects handling and repackaging to the supplier concerned.

If substitute packaging is not agreed with ZKW in due time, the extra costs (e.g., of repackaging) will be charged to the supplier.


Where substitute packaging is required, the supplier may suggest and use a specific type of packaging if so agreed upon with the responsible departments. Note, though, that packaging chosen by the supplier must match the standard dimensions of containers used by ZKW and must first be approved by ZKW.

3.3 Disposable packaging

A disposable packaging concept is only allowed if otherwise impossible for economic reasons or if overseas shipments are made. In order to avoid repackaging costs, disposable plastic containers with a removable cover are preferred.

Sizes should match the dimensions of reusable containers (cf. 4.3 Catalog of standard ZKW packaging containers for packaging provided).

The bottom of the container must be able to sustain the component weight. For improved stability, an interlayer may be added at the bottom. The thickness of disposable packaging materials shall be matched to the weight of the packaging container.

Put a removable cover on every container. Choose an ESD container to protect sensitive parts against electrostatic charge. Remember to add a sufficient amount of desiccant to corrosion protected overseas shipments.


4 Attachment

4.1 Goods tag sample in conformity with VDA 4902 version 4

4.2 Link to packaging datasheet

https://zkw-group.com/home/lieferanten/

https://zkw-group.com/home/lieferanten/


4.3 Catalog of standard ZKW packaging containers for packaging provided


4.4 Hazard warning sign for ESD-susceptible parts


5 Change history Index / Revision

Date Reason for Change Change Description Checked: Approved:


Packaging Guideline for Suppliers of · recycled in a sustainable manner. To meet the requirements of the Packaging Regulation and to avoid unnecessarily harming the environment,

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