Doing Business with Daimler Trucks North America LLC. A Supplier’s Guide to a successful business relationship with Daimler Trucks North America LLC. Revision 02.2011

Table of Contents Table of Contents ........................................................................................1 Index of Figures .............................................................................................4 1.0 Preface ..................................................................................................5 1.1 Welcome to Doing Business with Daimler Trucks North America (DTNA) ........................5 2.0 Purchasing ..............................................................................................6 2.1 Purchase of Materials ...............................................................................6 2.3 Other contracts ......................................................................................6 2.4 eDocs.................................................................................................7 2.5 Financial Information ................................................................................7 2.6 Supplier Evaluation ..................................................................................7 2.7 Cost Transparency ...................................................................................8 3.0 Tooling ..................................................................................................9 3.1 Tooling Introduction .................................................................................9 3.2 Tooling Ownership ...................................................................................9 3.3 Tooling Quote ........................................................................................9 3.4 Tooling Start-up .................................................................................... 10 3.5 Tooling Changes ................................................................................... 10 3.6 Communication .................................................................................... 10 3.7 Receiving E-mail Notifications of Reports ........................................................ 10 3.8 Updating the E-mail Notification List ............................................................. 10 3.9 Tooling Completion ................................................................................ 10 3.10 Invoicing .......................................................................................... 10 3.11 Asset Pictures .................................................................................... 10 3.12 Dimensions and Weights/Programming ........................................................ 11 3.13 Tooling Designs................................................................................... 11 3.14 Tooling Process Sheets .......................................................................... 11 3.15 Payment .......................................................................................... 11 3.16 Asset Tags ........................................................................................ 11 3.17 Tooling Maintenance ............................................................................. 12 3.18 Refurbishment / Replacement Requests ....................................................... 12 3.19 Rework/Modification ............................................................................ 14 3.20 QA Check Fixtures ............................................................................... 14 3.21 Tooling Moves or Resourcing .................................................................... 15 3.22 Tooling Audit...................................................................................... 15 3.23 Scrap Tooling ..................................................................................... 16 4.0 Quality................................................................................................. 18 4.1 Quality Prerequisite................................................................................ 18 4.2 Proof of Certification .............................................................................. 18 4.3 PPAP................................................................................................ 18 4.4 Change Notifications .............................................................................. 18 4.5 Supplier Quality Contacts ......................................................................... 18 4.6 Rejects ............................................................................................. 18

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4.7 Corrective Action Process......................................................................... 19 4.8 Campaigns/Recalls................................................................................ 19 4.9 Reliability/Durability............................................................................... 19 4.10 EBSC .............................................................................................. 19 4.11 Masters of Quality................................................................................ 19 4.12 Supplier Action Team ............................................................................ 19 4.13 Tooling ............................................................................................ 19 4.14 Check fixtures .................................................................................... 19 4.15 Labeling ........................................................................................... 20 4.16 Shipping........................................................................................... 20 4.17 Deviations......................................................................................... 20 5.0 Materials Management ............................................................................... 21 5.1 Introduction to Supplier Management, Launch and Change Management and Material Planning .......................................................................................................... 21 5.2 Changeover ........................................................................................ 21 5.3 Material Supply Planning .......................................................................... 21 5.4 Manufacturing EDI Business Rules and Usage ................................................... 23 6.0 Engineering ........................................................................................... 32 6.1 DTNA Engineering’s Commitment to Suppliers .................................................. 32 6.2 General Expectations of Suppliers ................................................................ 32 6.3 Safety Defect Investigations and Remedy ........................................................ 34 6.4 Parts Development Expectations (prototype/test) .............................................. 34 6.5 Failure Mode and Effects Analysis (FMEA) ....................................................... 34 6.6 CAD Information and Other Data Exchange ...................................................... 35 6.7 Supplier Changes .................................................................................. 36 6.8 Consequences of Chronic Issues ................................................................. 38 6.9 Supplier Innovation ................................................................................ 39 7.0 DTNA Production Parts Packaging, Labeling, and Shipping Guidelines............................ 40 7.1 Introduction ........................................................................................ 40 7.2 Packaging and Shipping Data ..................................................................... 40 7.3 Primary Container Requirements ................................................................. 41 7.4 Internal Part Protection Requirements ........................................................... 42 7.5 Pallet Requirements ............................................................................... 42 7.6 Unitization and Palletization Requirements ...................................................... 43 7.7 Returnable Container Programs................................................................... 44 7.8 Identification and Labeling Requirements ........................................................ 45 7.9 Trailer Loading and Transportation Requirements ............................................... 48 7.10 Glossary........................................................................................... 50 7.11 Forms and Samples .............................................................................. 51 8.0 Logistics............................................................................................... 58 8.1 Terms ............................................................................................... 58 8.2 Routings ............................................................................................ 58 8.3 Compliance with Routing Instructions ............................................................ 60 8.4 SID Numbers ....................................................................................... 60 02.2011REV Daimler Trucks North America LLC

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8.5 Premium Freight Authorization.................................................................... 60 8.6 ASNs................................................................................................ 60 8.7 Cooperation with Ryder Integrated Logistics..................................................... 60 8.8 Regional Integrated Logistics Centers (RILC’s) Shipping Instructions .......................... 60 8.9 DTNA- RILC Communication Procedures - General .............................................. 61 8.10 Shipping Requirements .......................................................................... 63 8.11 Shipments into NAFTA (Mexico/Canada)....................................................... 64 9.0 Accounts Payable..................................................................................... 69 9.1 Evaluated Receipts Settlement (ERS)............................................................. 69 9.2 Payment Terms .................................................................................... 69 9.3 Banking Instructions ............................................................................... 69 9.4 Invoice Details ..................................................................................... 69 9.5 Debit Memos....................................................................................... 70 9.6 Disputes ............................................................................................ 70 10.0 U.S. Import Compliance ............................................................................ 72 11.0 Warranty ............................................................................................. 75 11.1 Introduction....................................................................................... 75 11.2 Warranty Agreement ............................................................................. 75 11.3. Warranty Process ................................................................................ 75 11.4 Failed Parts Return ............................................................................... 76 11.5 Warranty Certification Program.................................................................. 76 11.6 Warranty Rating Criteria ......................................................................... 76 11.7 Warranty Agreement (Example form)............................................................ 77 12.0 Customer Support/Aftermarket ................................................................... 79 12.1 Purchasing ........................................................................................ 79 12.2 Delivery and Availability.......................................................................... 79 12.3 Aftermarket Parts Packaging, Shipping and Documentation .................................. 81 12.4 Marketing Programs.............................................................................. 81 12.5 Sales Support..................................................................................... 81 12.6 Technical Support ................................................................................ 82

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Index of Figures Figure 1: Tooling Quote Description .......................................................................9 Figure 2: Asset Identification for photos................................................................. 11 Figure 3: ID/Certification Tag ............................................................................ 12 Figure 4: DTNA Tooling Refurbishment/Replacement/Questions/Procedures....................... 13 Figure 5: Tool Rework/Modification Questions ......................................................... 14 Figure 6: Tool Acceptance Certificate ................................................................... 15 Figure 7: Audit Form Column Descriptions .............................................................. 16 Figure 8: Tooling Scrap Form............................................................................. 17 Figure 9: SID (Shipment Identification) .................................................................. 26 Figure 10: DTNA Assembly and Manufacturing Locations .............................................. 27 Figure 11: Covisint Directions ............................................................................ 30 Figure 12: Supplier Part Change Time ................................................................... 37 Figure 13: DTNA Change Form ........................................................................... 38 Figure 14: DTNA Production Parts Expendable Packaging Data........................................ 52 Figure 15: DTNA Test Packaging Identifier .............................................................. 53 Figure 16: DTNA Packaging and Shipping Label Detailed Outline...................................... 54 Figure 17: DTNA Master Label Detailed Outline......................................................... 55 Figure 18: DTNA Mixed Load Label Detailed Outline ................................................... 56 Figure 19: DTNA Destination Label Detailed Outline.................................................... 57 Figure 20: Routing Instructions Example ................................................................ 59 Figure 21: Custom Clearance Requirements for Canadian Vendors Shipping Into the U.S. .......... 65 Figure 22: Sample U.S. Customs Invoice form .......................................................... 67 Figure 23: Warranty Agreement Example Form ......................................................... 78

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1.0 Preface 1.1 Welcome to Doing Business with Daimler Trucks North America (DTNA) To create and maintain a successful business relationship with Daimler Trucks North America (DTNA), many specific requirements must be addressed by suppliers. DTNA has an expectation to receive quality products and services in the right quantity, at the right price and at the right time. Understanding the meaning and detail of these expectations can be difficult, so we are providing our suppliers with this guide to help understand the key steps they can follow for a long-lasting and successful business relationship with Daimler Trucks North America. This guide outlines supplier expectations by presenting a logical progression of departments, events and documents that will be encountered when doing business with DTNA. We hope suppliers find it helpful and look forward to a mutually rewarding business relationship. Thank you for your interest in this guide and your service to Daimler Trucks North America.

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2.0 Purchasing DTNA strives for a long-term oriented relationship with its suppliers based on mutual trust and shared business success. All sections in 2.0 refer to Production and Aftermarket purchasing unless specifically noted.

2.1 Purchase of Materials 2.1.1 Production Parts Products currently used in production for the manufacturing and/or assembly of complete vehicles, sales cabs, or gliders at any DTNA production facility.

2.1.2 Production Spare Parts Products currently used in production or placed into production and sold by suppliers to DTNA for the repair or replacement market will be priced to DTNA at the same price specified for the production parts plus any incremental costs associated with packaging. The sum of the price of all sub-components for any given assembly should not exceed the price of the assembly itself.

2.1.3 Service Only Parts (Pure Spare Parts) Parts phased out of production are to be offered on a continuing basis to the DTNA repair or replacement market at the production price level in effect on the last day of use in production for a period of not less than three (3) years after the date of last use in production. Any agreed upon prices will take effect with a minimum 90 day delay from the date of final agreement. Price reductions are permitted with no notification to adjust to changing market conditions. Suppliers are required to provide post-production parts availability as outlined in the DTNA Standard Terms and Conditions.

2.2 Purchase Contracts The Purchasing Contract is a general agreement which stipulates part numbers and prices as well as DTNA’s required Terms and Conditions of purchase. Purchase Contracts are created for recurrent requirements such as parts needed for ongoing truck production. The Purchase Contract expires at the end of each year in which it is issued, unless stated differently. The agreement is renewed annually if it is expected that parts will continue to be purchased from the supplier.

2.3 Other contracts Successful suppliers will be expected to enter into any one of DTNA’s standard form of contracts to manifest the intent and the agreements of a business relationship. Some of the more common are as follows: 1. Warranty Agreement (required of all suppliers) • Detailed information can be found in Section 11 of this guide 2. Non-Disclosure Agreement

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• Assures confidentiality between DTNA and supplier 3. Development Agreement • Documents all aspects and agreements during the development phase of a project prior to production 4. Long-term Agreement • Outlines annual cost reductions and/or efficiency improvement for the period of the agreement • Documents a relationship lasting more than one year with a commitment to competitive pricing, acceptable quality and delivery performance • For the Aftermarket, suppliers will be expected to enter into a long term agreement (LTA) for End of Series (EOS) parts and service only parts that will outline the future pricing model, annual cost reductions and/or efficiency improvements and delivery performance for the parts covered by the agreement.

2.4 eDocs eDocs allows purchasing documents such as inquiries, orders or contracts originating from the DTNA purchasing system to be exchanged over the Internet with any required file attachments. Using secure functions, suppliers can confirm receipt of documents and acceptance of content or reply to inquiries with an online quote. Access to eDocs is supplied via the Global Daimler Supplier Portal in Covisint. An application is provided including a neutral log-in procedure with administrative functions for business partners. Some of the advantages of using eDocs are: - Paperless contracting - Confirmation of receipt and delivery based on online transmission - Reduction of administrative workload - Immediate notification of new parts on a contract - Reduction of invoice discrepancies which can be caused by delayed reviews of pricing agreement The use of eDocs is free of charge to our business partners. In order to become activated for eDocs transmissions, please contact your purchasing agent to receive the required documentation and instructions.

2.5 Financial Information To avoid the interruption of product flow from our Suppliers, which could negatively impact manufacturing operations and delivery of product to our mutual customers, DTNA practices preventive supplier risk management. To accomplish this, DTNA requires a comprehensive risk assessment of our suppliers on a periodic basis. It is DTNA’s expectation that the supplier will provide DTNA with current financial information when requested. This information will be provided to DTNA in the format of a Financial Quick Check (FQC). A Supplier may also be asked to provide additional information in the form of a current corporate presentation, including product portfolio, legal structure and customer structure.

2.6 Supplier Evaluation The intent of the supplier evaluation is to review and evaluate the performance of potential and existing suppliers in terms of the four value drivers: quality, cost, technology and supply. The supplier evaluation supports the pre-production and series production purchasing processes and provides an early indication of support needs for suppliers in the case of an award. Procurement Trucks and Buses (PTB) methods of supplier evaluation include the On-site Assessment, Internal Cross-functional Assessment, and External Balanced Scorecard.

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The On-Site Assessment (OSA) is used in specific cases to evaluate NEW and CURRENT suppliers within the scope of a new contract award for product projects and series production. The main element is the on-site evaluation of the supplier by a cross-functional team of representatives from Purchasing, Engineering, Quality, Manufacturing, Materials and Supplier Evaluation. Results of an On-site Assessment are communicated to the supplier at the end of an assessment through the use of a feedback form containing the “category” rating, noted highlights, and potentials for improvement. The Internal Cross-Functional Assessment (ICA) is used to evaluate CURRENT suppliers within the scope of a new contract award for a product project before start of production. Previous and current experience with the supplier is evaluated by Purchasing, Engineering, Quality, Production, Materials and After Sales by means of a questionnaire. OSA and ICA results in one of the following supplier classifications: Category 1 – Suitable for cooperation with Daimler Trucks North America Category 2 – With support, suitable for cooperation with Daimler Trucks North America Category 3 – Unsuitable for cooperation with Daimler Trucks North America (Note: receipt of a Category 1 or 2 rating does not indicate or guarantee an awarding of business or the continuation of business, and does not waive any rights of DTNA under contracts or law.) The External Balanced Scorecard (EBSC) is an instrument for continuous assessment of the performance of CURRENT suppliers. Target values are determined for each EBSC parameter in interdisciplinary cooperation with Operative Purchasing, Engineering, Quality, Warranty, Parts & Service, Materials, Change Over, After Sales, and Accounting and are tracked in the EBSC through TARGET/ACTUAL comparisons. The results are communicated to the suppliers via the supplier portal. EBSC supports the following: Commodity Strategies Sourcing Decisions Supplier Development Activities Supplier Awards (Masters of Quality Award, see Section 4 for details) If you have any questions regarding Daimler Truck North America’s OSA, ICA or EBSC programs, contact the supplier evaluation group within DTNA Purchasing.

2.7 Cost Transparency Only a strong and stable network of partners is able to navigate the many challenges in an ever-changing business environment. This is why reliable and long-lasting teamwork with suppliers is a tradition at DTNA. DTNA employs various methods to assure supplier pricing can withstand the global competitive pressures at play in today’s marketplace. One of these methods is a collaborative use of cost transparency to aid in the establishment of an agreed-on starting point for future negotiations. In exchange, DTNA may share in-house reference calculation results to help optimize the total value chain.

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3.0 Tooling 3.1 Tooling Introduction The Tooling Operations Group works with Launch and Change Management to coordinate the materials and implementation of projects in the company. Early parts are sometimes needed to run a pre-series to confirm the build, build a test truck, or just let the plant see and install the part before production volumes are run. This will help identify any problems before production. Any general tooling questions can be directed to [email protected].

3.2 Tooling Ownership The Tooling Operations Group is responsible for purchasing and tracking all DTNA owned tooling that is housed at vendor locations. Typically, DTNA pays for 100% of the unique tooling cost incurred and assumes ownership of the tools used to manufacture DTNA proprietary parts. There are cases when tooling is owned by the supplier (i.e. supplier proprietary design) however, DTNA prefers to own assets needed to make proprietary production parts (equipment would be owned by the supplier).

3.3 Tooling Quote DTNA quotes that include tooling need to include detailed tooling breakdowns with complete information (ie. tool physical address, tool life, tool description, etc.). Many details are needed to start up and track tooling, requiring a complete and accurate DTNA tooling quote form. All quotes need to be reviewed and approved by the DTNA Purchasing department. See figure 1 for a description of the quote form. Column A

Column Title Affected Part Number(s):

B

Rework / Modification

C

DTNA Tag or Asset Number

D E F G H I

Tool Type Detailed Tool Description # of Quoted Tool Sources Country of Origin for Tooling Intended Tool Source Physical Tool Location During Production Lead Time (WKS) For Completed Tooling, Including Tool Transit Time

J K

Additional Lead Time (WKS) For PPAP

L M N

Total Lead Time (WKS) # of cavities / Parts Output Annual Tool Capacity

O

Total Tool Capacity

P Q

Currency Total Cost

Description of Column Content A list of part numbers that the tool will make Yes or no option stating whether a rework/modification will be done on existing tool Tag or Asset number associated with tool (used for rework only) Type of tool Detailed description of the tool The number of quoted tooling shops Country where the tool is physically located Vendor name where tool is to be sourced from Address of where the tool is physically located The time needed to manufacture the tooling to be able to produce a 100% inspected part (non-PPAP’ed) The time needed to run sample parts and prepare & submit PPAP documentation (Entire PPAP process) Auto calculated, Total lead time The number of cavities per parts output Yearly tool capacity Total number of units that the tool can produce in its given life The currency quoted on this form Total cost of the tool

Figure 1: Tooling Quote Description

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3.4 Tooling Start-up Tooling is kicked off by a tooling analyst within the Tooling Operations group. Tooling should never be kicked off by any other group with in DTNA. All tooling purchase orders and tooling directions will come from the Tooling Operations group. Tooling progress payments may apply depending on the complexity and cost of the project. Terms are as negotiated and set forth on the purchase order, but as an example standard terms for progress payments are as follows: 30% kickoff of production tooling, 40% due upon tool completion and 30% due upon PPAP approval and final documentation submitted.

3.5 Tooling Changes Both engineering and supplier requested tooling changes must come through the DTNA Tooling Operations group and the DTNA Purchasing group. It is important to track the latest revision (and part number) of the asset. It is mandatory that the Tooling Operations group be the point of contact for any and all tooling changes or tooling moves.

3.6 Communication Open flow of communication regarding progress of tooling is critical. This communication provides an understanding of timing and the ability to know when first shots or hits will be available. Proactive information regarding tooling is required to help avoid delays in completion of tooling. On-site evaluations may also be set up to monitor progress.

3.7 Receiving E-mail Notifications of Reports The Tooling Operations group will be sending out various reports as aids for communication and tracking to help facilitate on time delivery of the tools. These reports will be distributed via email as attachments. Your supplier profile, in our Enterprise Asset Management (EAM) system, determines who in your organization receives these reports.

3.8 Updating the E-mail Notification List If you require a change to your e-mail distribution list, send an email to [email protected] or a tooling analyst, listing the name and contact information for the person to be changed to. Please be sure to include your supplier code either in the subject line or body of the email.

3.9 Tooling Completion Tooling Due Dates, as outlined on the Purchase Order, are based upon quoted lead times. Tooling due dates must be accurate and adhered to at all times. If the due date listed on the purchase order cannot be met, it must be communicated to the Tooling Operations group immediately. The Tooling Operations group will work with the supplier at rescheduling the due date. The Launch and Change Management group relies on the scheduled due date to know when first shots can be ordered and the scheduling of pre-series and project implementation.

3.10 Invoicing An invoice for the cost of the tooling will need to be provided. The invoice must match the purchase order or it cannot be processed. Invoices should be sent to the Tooling Analyst who issued the purchase order.

3.11 Asset Pictures Pictures of the completed tooling will need to be provided. The picture should include the DTNA Tool Identification Template (See Figure 2) in the photo to help identify each tool.

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Figure 2: Asset Identification for photos

3.12 Dimensions and Weights/Programming Dimensions and weights of the tooling will need to be provided when applicable. If the tooling is only programming, a copy of the program should be sent on a CD/DVD to the tooling group.

3.13 Tooling Designs The tooling design should be provided to the Tooling Operations Group when the design is finished. A copy of the design should be sent on a CD/DVD to the tooling group.

3.14 Tooling Process Sheets The tooling process sheets are required before final payment is made. Please provide these process sheets to the Tooling Analyst.

3.15 Payment The Tooling Group must be provided an Invoice, Asset Pictures, Dimensions and Weights/Programming, Tooling Designs and Process Sheets before appropriate payment will be processed and the tool is considered complete.

3.16 Asset Tags All assets need to be identified with the DTNA asset number provided. Asset tags such as the one shown in Figure 3 can be provided but more importantly, please ensure the asset number (referenced on the P.O. header) is located on the tool/asset in a visible location. Asset tags are available upon request to the Tooling Operations group. The critical fields that should be filled in are: Asset Tag#, Part#, and Description.

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Figure 3: ID/Certification Tag

3.17 Tooling Maintenance Tool maintenance is the suppliers’ responsibility. Assets need to be maintained and preventative maintenance records kept ensuring the life of the tool meets expectations and commitments. All quotes must have a tool life agreement approved up front.

3.18 Refurbishment / Replacement Requests Tooling life agreement is critical as this will be the basis for understanding the refurbishment or replacement request. If the tooling is past its normal useful life, the supplier request is easier to process. Three quotes are still required (from the tool shops) to justify the tool replacement or refurbishment costs. See Figure 4 for an example of the “Information Request Form.”

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Figure 4: DTNA Tooling Refurbishment/Replacement/Questions/Procedures

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3.19 Rework/Modification If there is a design change that requires a rework/modification to the current tool(s), the new change must go through the quote process like a new tool. There are extra questions that are required to be filled out, which are on the second tab of the tooling quote form. (See figure 5 for a list of rework/modification questions) The rework/modification must not be done without the Tooling Operations and Purchasing groups approval, and the Launch and Change group establishing bank builds and setting the date to pull the tool out of production to ensure shortages do not occur.

Figure 5: Tool Rework/Modification Questions

3.20 QA Check Fixtures Quality assurance (QA) check fixtures will be an asset that the tooling group kicks off, but is coordinated by the DTNA QA department. QA check fixtures should be included in the tooling quote as their own separate line

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item, when applicable. All tooling requirements still apply to QA check fixtures. Please contact DTNA Quality Assurance for details.

3.21 Tooling Moves or Resourcing DTNA moves tooling based on supplier performance, cost, capability, market needs, etc. When tooling does move between two different suppliers, a “Tool Acceptance Certificate Form” (See Figure 3) must be completed. Ideally, all three parties need to review the tooling for status. The current supplier, the new supplier and DTNA need to complete and sign the form. This will ensure that all parties agree on the current status of the tool. See Figure 6 for an example of the front and last page of a Tool Acceptance Certificate. If a tool or asset is going to be moved internally, the supplier must contact DTNA and discuss the impact prior to moving. The supplier will be responsible for all charges that DTNA incurs due to a tool being moved without DTNA’s knowledge. DTNA will need to know the old and new addresses of the tool, as well as understand the impact to the parts supply. If a supplier opens up a new facility an OSA (On-Sight Assessment) will need to be conducted to ensure business change fits DTNA needs. When tooling moves to a new supplier, the new supplier receiving the tool has two weeks to review and advise DTNA of any modifications or repairs needed to be able to use the tool.

Figure 6: Tool Acceptance Certificate

3.22 Tooling Audit The Tooling Operations group will schedule an audit of all tooling assigned to the supplier every three years to be SOX compliant and ensure tax payments are accurate. The Tooling Operations group will work with the supplier for scheduling availability and provide a list of assets assigned to the supplier that will need to be verified. The supplier is required to fill out the green highlighted columns on the audit template (See figure 7 for the column descriptions). If a tooling audit has not been previously performed with the supplier, a “blind” audit would be performed. This “blind” audit would entail the supplier to tell the Tooling Operations Group what tooling is physically located at their location(s) and/or tier 2 location(s). Once the list has been provided to the Tooling Operations group, DTNA will verify and work with the supplier to ensure the lists match. Any discrepancies will be discussed and worked through during the verification process.

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Column E F

H I J K L M

Column Title FTL Asset # Supplier's Tool ID (if applicable) Tool Description (Mold, Die, Fixture, etc…) Part Number(s) Part Description Tool Dimension Length Tool Dimension Width Tool Dimension Height Tool Weight (Lbs.)

N

Tool Condition

G

P Q R S

Estimated Remaining Tool Life (Shots, Hits / Parts) Tier 2? Y/N Vendor Name Physical Location Address Physical Location City

T

Physical Location State/Country

O

U Postal Code V Comments Figure 7: Audit Form Column Descriptions

Description of Column Content DTNA Tag or Asset number associated with tool Supplier Tag or Asset number associated with tool Detailed description of the tool A list of part numbers that the tool will make Description of the parts Length of the Tool in inches Width of the Tool in inches Height of the Tool in inches Weight of the Tool in pounds Select one of the five options listed in the drop down menu Estimated number of units that the tool can produce Is the tooling located at a tier 2 location Vendor's name where the tooling is located Physical address where the tooling is located Physical city where the tooling is located Physical state/country/province where the tooling is located Physical address where the tooling is located Additional comments related to the tooling

3.23 Scrap Tooling If there is tooling that a vendor wishes to scrap, authorization must be provided by the Tooling Operations group prior to scrapping of the tool. The supplier must provide the Tooling Operations group a copy of the scrap form; see Figure 8 for a copy of the scrap form. After the tooling has been scrapped, the supplier needs to provide the Tooling Operations group with a copy of the scrap ticket/receipt for proof of disposal.

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Figure 8: Tooling Scrap Form

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4.0 Quality At DTNA, we are committed to working with our suppliers to meet or exceed our customers’ expectations. Guidelines describing DTNA supplier quality requirements can be found in the Supplier Quality Manual which can be accessed by clicking on the link noted below. Please follow this link to access the detailed Supplier Quality Manual: https://daimler.portal.covisint.com/c/document_library/get_file?folderId=128435&name=DLFE-107228.pdf The Supplier Quality Manual includes information on the following: ● ● ● ● ● ● ●

DTNA Quality Requirements Supplier Quality Evaluation Page Production Part Approval Process Statistical Process Control Supplier Corrective Action Masters of Quality – Supplier Quality Award for Excellence Supplier Disapproval

4.1 Quality Prerequisite DTNA requires suppliers to be ISO 9001:2008 or ISO/TS 16949 certified and to successfully meet On-Site Assessment (OSA) requirements.

4.2 Proof of Certification Suppliers are responsible for providing and maintaining DTNA Corporate QA (PPAP Coordinator) with current ISO 9001:2008 or ISO/TS 16949 certification.

4.3 PPAP Suppliers are required to comply with Automotive Industry Action Group’s (AIAG’s) Production Part Approval Process (PPAP) requirements. DTNA expects suppliers to perform full PPAP (Level 3) on all production parts. If PPAP submission is requested, suppliers are required to obtain PPAP approval prior to shipping parts to DTNA truck manufacturing plants. Submission documentation should be sent directly to the PPAP Coordinator located at DTNA Corporate. Unapproved parts must be shipped under the Exception Conditions or may be rejected.

4.4 Change Notifications Suppliers are responsible to provide Product/Process Change Notification (PPCN) and receive approval from DTNA Corporate QA for any process or product change.

4.5 Supplier Quality Contacts Suppliers are responsible for providing DTNA Corporate QA (PPAP Coordinator) with current Quality contacts as changes occur. Note: DTNA Corporate QA maintains one system that stores supplier’s Quality contact information for both DTNA Corporate and Plant QA.

4.6 Rejects

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Suppliers are responsible for the quality of parts they provide to DTNA and any costs associated with rejected parts. In addition, a $120 processing fee may be charged for any Quality Reject Notification (QRN) that is issued by DTNA truck manufacturing plants. DTNA requires an Return Goods Authorization (RGA) response to a Quality Reject Notification within 2-business days. If a response to the RGA request is not received within 2-business days reject lots will either be scrapped and debited to the supplier, or shipped freight collect to the supplier. Rejected parts also negatively impact the supplier’s parts per million (PPM) score. Please follow the instructions outlined on the QRN when responding to any reject.

4.7 Corrective Action Process DTNA requires suppliers to cooperatively work with DTNA on Corrective Action Requests (CAR). CAR response and timeliness will be tracked (via FRACAS) and will affect the supplier’s score in bi-annual supplier evaluations (EBSC – as detailed in section 2.5).

4.8 Campaigns/Recalls DTNA Corporate QA will work with DTNA Field Service Engineering staff and suppliers to determine: the suspect population and location of affected trucks, containment and permanent corrective action, and to restore product flow. Campaigns/Recalls will be coordinated by DTNA Field Service Engineering staff. Campaigns/Recalls are included in bi-annual supplier evaluations by DTNA Corporate QA.

4.9 Reliability/Durability Suppliers are expected to have the capability to evaluate the failure modes of their components that can compromise reliability or durability and make necessary changes to the design, process, or delivery as appropriate. The Supplier resource that has the responsibility for evaluating failure modes must identified prior to the start of series production

4.10 EBSC The Quality section of the External Balanced Score Card (EBSC) determines supplier performance based on the following: ISO 9001:2008 or ISO/TS 16949 certification, parts per million (PPM) score, Corrective Action Requests (CAR) responsiveness, campaigns/recalls, and late PPAP’s.

4.11 Masters of Quality Each year, DTNA recognizes suppliers that meet our strict standards and demonstrate an ongoing commitment to quality improvement by awarding them with the DTNA Masters of Quality Award. The scores from semi-annual multi-functional evaluation (EBSC) are used to select Masters of Quality recipients. Suppliers with production and aftermarket purchases exceeding $500,000 annually and more than 12 months sales history will be evaluated.

4.12 Supplier Action Team Suppliers that consistently fail to meet DTNA requirements may be asked to come to DTNA Corporate Office to present their improvement plans.

4.13 Tooling If tooling is required, the supplier is responsible for handling all tooling needs and associated costs prior to accepting the Purchasing Contract/Order for production parts. Supplier is also responsible to notify DTNA Corporate Tooling Group if existing tooling is worn or inadequate. Final tooling payment may be withheld until PPAP receives final approval.

4.14 Check fixtures

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Check fixtures must be part of your initial quote to DTNA Corporate Purchasing. For information regarding check fixture implementation, please reference the Check Fixture Requirements Book.

4.15 Labeling When specified, suppliers need to comply with permanent labeling requirements per Engineering Standard 49-00051. For traceability purposes, DTNA Corporate QA strongly urges suppliers to use permanent (temporary when appropriate) labeling on each part which includes: part number, rev, supplier code, date/lot/cavity code (as appropriate). Labeling greatly assists DTNA truck manufacturing plants and DTNA Corporate Warranty with proper supplier identification.

4.16 Shipping Suppliers need to comply with DTNA Production Parts Packaging, Labeling, and Shipping Guidelines. Suppliers are responsible to notify DTNA Corporate Packaging Group if returnable containers are damaged or inadequate.

4.17 Deviations Suppliers are required to receive written deviation from DTNA Corporate Engineering for any nonconformances from specification.

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5.0 Materials Management 5.1 Introduction to Supplier Management, Launch and Change Management and Material Planning Daimler Truck North America expects suppliers to be proactive in managing inventories and supplying material in a timely and accurate manner. All suppliers are expected to proactively communicate with Daimler Trucks North America. It is the responsibility of the supplier to accurately manage and provide ordered materials.

5.2 Changeover In order to ensure the quality and timeliness of changeover projects, the Launch and Change Management Team requires the cooperation of all suppliers in complying with the following: A. Quote process time ● When quoting parts which require tooling, quotes will be due three weeks from the day of receiving RFQ, prints and specifications. ● When quoting parts which do not require tooling, quotes will be due two weeks from the day of receiving RFQ, prints and specifications. ● Exceptions will be made for major projects which may require complex tooling or on-site presentations. B. Tooling lead time ● Supplier will quote lead time of tooling at time of RFQ submittal, and will be held accountable for achieving it. C. Tooling modification ● Modification or rework of DTNA-owned tooling is to be done only under the direction of the DTNA Tooling Operation Group. D. Launch support ● Supplier is to provide factory support at time of preseries and production start-up if required. E. Supplier-originated changes ● Supplier of supplier designed parts and assemblies shall give DTNA a minimum of six months notice (more for major projects) of design change, model introduction or modification, or any change requiring DTNA to accommodate with option or design changes. ● Supplier will notify their Purchasing Agent who will communicate to Launch and Change Management. Requests will be reviewed and scheduled by the Changeover Review Board. Implications of not meeting requirements: Suppliers who fail to comply with any of the above mentioned requirements will be rated accordingly in their supplier evaluation and may be removed from future quote opportunities.

5.3 Material Supply Planning It is the responsibility of all suppliers to manage their supply chains to prevent late delivery of material to Daimler Trucks North America. A. Communications: DTNA expects supplier contacts to answer phone calls, e-mails, and alert DTNA of issues and shortages within two hours of a problem arising. Planners have multiple options in solving many

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part shortages; however, they must be notified in a timely manner in order to utilize those alternatives which may include contacting another plant or sourcing from the aftermarket. E-mail is the preferred method of communication on most matters. B. Pro-Active: DTNA expects suppliers to use their respective material releases (EDI 830 Planning Schedule with Release, EDI 862 Shipping Schedule or 866 Line Sequence Ship Schedule) daily checking for late, moveup or drop-in orders and to contact the planner. The planner should not have to call or e-mail to find out when something will ship on past due orders. It is the responsibility of the supplier to call and advise a planner when a shipment will be late. Planners expect such a phone call several days in advance of the due date or ship date, so they can work on an alternative and communicate the information to the plant. If an expedited air shipment from plant to plant is required and the parts are late from the supplier, DTNA will debit back the airfreight charges to the supplier. If a call is made far enough in advance and a non-expedited mode of transportation is used, freight charges will not be debited back to the supplier. Those suppliers on the 862 Shipping Schedule are expected to advise planners on all late parts by 9:00 AM in the time zone of the FOB point. The planner should never have to call on any part that is being shipped late by the supplier. C. ASN’s: DTNA expects on-time and accurate ASNs (Advance Shipment Notice). An ASN must be sent within 30 minutes after a shipment leaves a Supplier's dock. The ASN allows both the planner and the plant to see material in transit. ASN’s update DTNA’s MRP system and are reflected on the next EDI report the following day (862 or 866 Shipping Schedule) or week (830 Planning Schedule). When ASNs are not received or are received late, they pose many problems and can cause delayed payment to the supplier. For the 862: If the supplier sends an on-time and accurate ASN yet the requirements are still on the 862 the following day, one of three things may have taken place. First, is a possible timing issue where the ASN is received in DTNA’s system but does not update the 862 (ASN was received after MRP ran). Second, the ASN may have been rejected or did not come through at all. Finally, the ASN may have come through and may have updated the 862, however an adjustment could have been made and the parts still needed. Any of these situations would require the supplier to contact the planner to verify the issues. DTNA may, at our option, complete the ASN for the supplier and issue a debit to charge the supplier for costs associated with loading the ASN and possible damages caused by the lack of visibility. DTNA will notify the supplier prior to such debit action.

5.3.1 EDI Communication Expectations DTNA expects all suppliers to communicate all orders, shipments, invoicing, etc. using EDI (Electronic Data Interchange) • DTNA’s format is the Automotive Industry Action Group (AIAG) and Truck Advisory Group (TAG) approved American National Standards Institute (ANSI) X12 standard. • Advanced Ship Notices (ASN’s) are to be communicated within 30 minutes of shipping. • Accurate shipment visibility is required for the DTNA manufacturing plants and for material planning. • Accurate material releases to supplier are dependent on accurate and timely ASN’s. • Timely supplier payment is dependent on accurate ASN’s and invoices. • To be eligible for the Masters of Quality Supplier Award, suppliers are expected to fully communicate via EDI with DTNA and to be fully integrated with core business systems. • Two alternatives are available for suppliers to use EDI with DTNA and are as follows: - EDICs (T-Systems)-for all suppliers, full-EDI enabled; and for suppliers using the 866 - GXS Tradeweb is an option for low volume suppliers using all transactions but 866

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• All suppliers are required to set up a mailbox on EDICs, regardless of transmission source used ─ EDICs or GXS Tradeweb. For more information regarding the online EDI program through GXS Tradeweb, please email [email protected]. Current EDI Transactions: • 110 – Air freight invoice • 210 – Motor carrier invoice • 214 – Motor shipment status • 810 – Supplier invoice • 820 – Payment/Remittance advice • EFT - Electronic Funds Transfer • 824 – Application advice for 856 or 810 • 830 – Planning schedule with release (6 months) • 850DS & 850PDC aftermarket spot PO • 855 – PO acknowledgement (Aftermarket) • 856 – Advanced Shipment Notice (ASN)- must be sent within 30 minutes of truck departure • 860 – PO change request (Aftermarket) • 861 – Receiving advice • 862 – Shipping schedule – line set (20 days) • 866 – Line sequence schedule by truck number • 997 – Functional acknowledgement

5.4 Manufacturing EDI Business Rules and Usage Planning Schedule with Release Capability (830) The Planning Schedule transaction contains approximately 6 months of requirements. The requirements for the first 4 weeks will be firm orders (although the dates and quantities inside these 4 weeks can change). The next 2 weeks will show the supplier committed orders and the rest of the data will be forecasted orders (roughly 4 ½ months). Not all areas in this section apply to major components. The 862 contains is the same data as the 830, except it is sorted by DTNA plant location and then by date. The 830 is sorted by part number first, then location and date. The 862 shows the next 20 days horizon and the 830 goes out six months in horizon. All quantities/parts/dates on the 862 in the “firm commit range,” may be changed within these 20 days. Each Planning Schedule contains a specific part number. When DTNA transmits a Planning Schedule it is a complete refresh (for all locations). It replaces all existing requirements in a suppliers system for the part number. Because a Planning Schedule can be sent any day of the week, suppliers must process transactions on a daily basis to ensure updates are not missed. In order for the Advanced Ship Notice (ASN) information to reflect on the Planning Schedule transaction, DTNA needs to receive an ASN by 3:00 p.m. PST. Any ASN received after this time might not reflect on the next Planning Schedule the Supplier receives (unless the Planning Schedule goes out a couple of days after receiving an ASN). THE SECTION BELOW DOES NOT APPLY TO MAJOR COMPONENT SUPPLIERS DTNA does send Accum information on the Planning Schedule, but it is not intended to support Accum driven systems. When DTNA performs a material transfer from one DTNA plant to another, this will be reflected in the Accum information and will not truly reflect what the supplier has shipped nor will DTNA change its information to match the supplier.

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Requirements will continue to show on the Planning Schedule until DTNA has received the material and they are reflected in the system. Until material is received into the plant, the material will show on the Planning Schedule as in-transit. The supplier will need to subtract the in-transit quantities from the requirements to find out what quantity and when it is due. Planning Schedules are transmitted at 8:00 p.m. PST. Generally they are set up to be transmitted on Saturday night but can be set up to go out Monday through Friday. Once a week suppliers will receive Planning Schedules for any parts with requirement in the next six months. If there are any changes during the week, the supplier could receive another Planning Schedule before receiving the next cycle of weekly releases. Shipping Schedule (862) If a Shipping Schedule is received, Planning Schedules should be used to build material and the Shipping Schedule should be used to ship against. The Planning Schedule and the Shipping Schedule are generated at different times so there will be occasions when the two differ. In these instances, the Shipping Schedule overrides the Planning Schedule. The Shipping Schedule is generally sent out every day of the week. It will contain data for 20 production days. Unlike the Planning Schedule which shows the material as In-transit, the shipping requirements will come off the Shipping Schedule when an ASN posts to the DTNA system. There is no Accum information on the Shipping Schedule and there are no plans to include this information (or last receipt, etc.). In order for the ASN to reflect on the next Shipping Schedule the Supplier receives, DTNA needs to receive the ASN before 11 p.m. PST. The 862 contains the same data as the 830, except it is sorted by DTNA plant location, then by date (the 830 is sorted by part number first). The 862 shows the next 20 days horizon and the 830 goes out six months in horizon. All quantities/parts/dates on the 862 are in the “firm commit range,” even though there may be changes within these 20 days. Shipping Schedules are transmitted once a day at approximately 2:15 a.m. PST (Monday through Friday). Line Sequence (866) Similar to the 862, the 866 overrides 830 data for each part number that is set up as Line Sequence. The 866 usually shows 20 days of production requirements. This EDI data is transmitted daily, Monday through Friday. On the 866, the Truck Number associated with the material is referenced in order for the Truck Number to be passed back on the ASN for the specific material. As long as the Truck Number is on the ASN, the requirements are reduced on the 866. If the Truck number is not on the ASN the data will continue to show the same requirements for the 866 until the Truck Number is on the Production Line. In order for the 866 to be updated and reflect the change in requirements, the ASN must be received by 11 pm, PST. Functional Acknowledgement (997) DTNA transmits Functional Acknowledgements from the DTNA manufacturing system to suppliers upon receiving an ASN. This transaction is used to confirm the receipt of the Advanced Ship Notices sent by the supplier. DTNA returns a Functional Acknowledgement to confirm the number of ASNs received in the system. The supplier should verify these totals on every transmission to ensure the ASNs are being received. The receipt of a 997 from DTNA to a supplier does not mean the ASN has been posted to the DTNA system, or that the ASN contains correct information. It only signifies the ASN was received in the EDI mailbox. DTNA transmits Functional Acknowledgement transactions every 30 minutes daily (Monday through Friday). Receiving Advice (861) DTNA will transmit a Receiving Advice to supplier if there is a discrepancy in the quantity between what DTNA physically receives and what the ASN indicates. Because it is a manual process to send the Receiving Advice, there will be times when there could be a discrepancy and a Receiving Advice is not sent. If a Receiving Advice is received, the supplier should contact the associated DTNA Material Planner to determine what needs

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to be done. The planner might choose to have the supplier ship more material immediately or determine to hold off until the next shipment and increase the quantity. Receiving Advice Notices go out once a day at 3:15 a.m. PST (Monday through Friday). Application Advice (824) The Application Advice is sent to the supplier if there is a data error with the ASN (e.g., incorrect part number, line item number, purchase order number, etc.). If the supplier is unable to determine the cause of a problem, they should contact the DTNA EDI Coordinator (or Material Planner). If for some reason the Application Advice is not addressed until the following day, the supplier should contact the Material Planner to determine if the ASN still needs to be resent. If the ASN has a format error (non-compliant EDI data) such as missing segments, CTT count missing etc., an Application Advice will not be sent. This is because once the testing has been completed the format should not change; only the data inside the format should change. It is the supplier responsibility to monitor the EDI 824 Application Advice error reporting daily and to make corrections. The 824 serves as the most accurate and current indication of an ASN acceptance or failure. Application Advice Notices are sent out every 30 minutes, at 15 and 45 minutes past each hour. Advanced Ship Notice (856) (Manufacturing) The Advanced Ship Notice (ASN) is sent by the supplier to DTNA to document a shipment of material. The ASN provides DTNA shipment details, as well as the parts and quantities in the related shipment. DTNA expects an ASN to be sent within 30 minutes of the shipment leaving the shipping dock. As DTNA cannot validate the carrier information, it is up to the supplier to provide accurate information. The carrier information is used for shipment tracking issues and if this information is incorrect, DTNA will go back to the supplier for the correct information (consider all fields mandatory on the ASN). The Shipment Identification (SID) number plays a vital role in DTNA’s systems. In order for proper processing by DTNA, the SID must be on the ASN, Invoice and Packing Slip. If the SID number is not an exact match on all related documents, is missing or is not clearly marked, it disrupts the information flow which ultimately delays supplier payment. The ASN and Invoice have specific fields where the SID is located. The supplier’s Packing Slip needs to have a field in the upper right-hand corner labeled “SID Number: ###“, so that DTNA’s Receiving Department can identify the number to receive the material under. DTNA expects the SID Number to be machine printed. There should only be one SID number per shipment, per location. Likewise, there should be only one SID per invoice and one invoice per SID. The only time the supplier should have multiple SID Numbers per location on the same day is if they are shipping material via two different methods: one by air, one by ground; or one by next day and one by 2nd day. In these cases, DTNA expects multiple SID Numbers because the material will theoretically arrive at different times. Hence, there should be multiple invoices to support each SID. Advanced Shipment Notices (ASNs) are processed every 30 minutes by the DTNA system. If there is a data error, DTNA will return an Application Advice within 30 to 45 minutes of receiving the ASN. This means within 90-120 minutes of an ASN being sent, suppliers should check to see if an Application Advice (824) was received. If an 824 was received, correct the problem and resend the ASN and then check back to see if another Application Advice was sent. If an Application Advice is not received, assume the ASN posted correctly to DTNA’s system or contact the Material Planner. Please note for manufacturing purchase orders, DTNA requires suppliers to send a sum total for each part number. Duplicate part numbers will be rejected within the same ASN. DTNA has clearly set standards for EDI compliance, and aims to reduce unnecessary rework resulting from non-compliance. Therefore, DTNA is instituting a process to charge suppliers for clear and repetitive noncompliance with DTNA’s EDI guidelines.

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DTNA may issue Debit Memos for non-compliance to EDI guidelines in the following situations: 1. A shipment is received at a DTNA plant without an Advance Shipping Notice (ASN/856). 2. The Material Planning Department identifies a shipment in-transit lacking a compliant ASN and must notify the supplier of the situation. 3. An assembly line shortage is caused by the supplier due to EDI non-compliance. If a debit is deemed appropriate, each situation will be handled on a per SID basis. For example, if twelve (12) part numbers were on a shipment and the ASN (856) was flawed or missing entirely, we would treat this as one discrete offense (not 12). We will only charge a discrete offense one time, at a rate of $120 USD. In an effort to avoid the potential of a double penalty, DTNA will only issue a single Debit Memo in the event an EDI compliance failure corresponds with a Quality Assurance Reject. Customer Service representatives will be notified of each Debit Memo by your DTNA Supply Chain Analyst, which will state the grounds for issuance. DTNA looks forward to collaborating with your company to resolve systematic flaws and eliminate EDI Compliance issues. Our mutual goal is not to issue any debits, but rather ensure we have consistent and timely flow of EDI transactions between our companies. Doing so will reduce the many hours our respective companies spend on reconciling shipments and flowing invoices and payments. If you have any questions, please contact your DTNA Supply Analyst for further information. Supplier Invoice (810) The supplier invoice is sent by the supplier to bill DTNA for goods or services delivered. A complete implementation guide is available upon request to [email protected]. Please note the importance of the Shipment ID# (see Advanced Ship Notice section above). See also section 9.0 – Accounts Payable. Packaging List Details 1. The SID number is clearly listed as “SID Number.” 2. The part numbers are to be listed in Alpha/Numeric order. 3. Each unique part number should only be listed once, with total quantity. 4. SCAC code is the carrier ID, from Covisint - Reference document routing letter. 5. Pro No is the unique identifier assigned by the carrier or the same as the bill of lading. 6. One ASN per shipment is required. 7. ASN should be sent within 30 minutes after departure from Supplier's dock.

Figure 9: SID (Shipment Identification)

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Figure 10: DTNA Assembly and Manufacturing Locations Note: For further details, please refer to the Logistics section of this guide.

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5.5 EDI Trading Partner Registration and Set Up The first step to get set up on EDI as a Trading Partner with DTNA is to contact the EDI Coordinator at Daimler for Manufacturing at [email protected] once you have been assigned a supplier ID. There is no cost to connect to the Daimler EDI gateway, EDICs, but your VAN or EDI provider may charge for the connection service.

5.5.1 EDICS (T-Systems) DTNA is migrating all of the EDI traffic to the EDICs network. Daimler uses an EDI switch, EDICs, for all EDI data. Suppliers can connect to EDICs through any VAN or as a direct connect using the following options: SFTP, AS2, or OFTP. Please allow a minimum of 10 (ten) business days for EDI set up. It is the responsibility of the Supplier to coordinate the EDI testing and set up with Daimler. The supplier should include their VAN/IT in all correspondence regarding the EDI testing. Daimler can not contact or set up a supplier with a specific VAN, this must be initiated by a Supplier to the VAN of their choice. Manufacturing uses these transactions: 824, 830, 856, 861, 862, 866, 997. Your supplier number may not be set up for all of these transactions types. OEM/Manufacturing EDI transaction versions: ● ● ● ● ● ● ●

824 v4010 830 v2000 856 v4010 861 v3050 862 v3020 866 v3010 997 v4010

Manufacturing ISA and GS send/receive ID’s: ● ●

zz:ftl^^mfg (^=1 space) zz:abcd^mfg

The DTNA ISA and GS send/receive ID’s for Accounting/Finance: ● ●

For the invoices ZZ:FTL^FIAC (^ signifies 1 space) Supplier ID ZZ:ABCD

For Aftermarket the ISA/GS send/receive IDs are: ●

zz:FTL PDCPO (2 spaces - PDC Identifier)

ISA/GS send/receive IDs are: ●

zz:ABCD

The test data sent for the OEM part of EDI testing will only validate transmission. The part numbers and other information will not be production information. The test data is a generic file to ensure transmission is working. It does not contain functional data.

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Once the 856 is successfully tested and in production, the 810 can be tested with the Finance/Accounting Department at DTNA.

5.5.2 Covisint Set Up Covisint is the automotive website that hosts the DTNA/Freightliner Routing instructions for all shipments to all DTNA/Freightliner truck plants. The setup, access, and use are free. Covisint is used to post several DTNA applications, and supplier reference documents, including the following: 1. Purchase Contract 2. Web RFQ 3. eDocs (please refer to Purchasing, section 2) 4. Service ProSupplier 5. Supplier Quality & Delivery Reports 6. Items to Count 7. Routing Letters 8. Assembly Search There is a multi-step process for registering with Covisint. First, the Supplier is set up in the grid. Contact the Manufacturing/Materials EDI Coordinator at [email protected] for additional information on how to register on Covisint. Once Supplier data is loaded, Covisint will send an email with instructions on how to register. You will need your Supplier ID (the Supplier Code given to you by DTNA). You will then be able to begin registering as a user. Go to www.covisint.com, click the Automotive logon and then you can set up an account. You will be contacted by Covisint in approximately two working days from the day the above information with registration information is submitted to Covisint. Suppliers need to log on and submit a request for the applications wanted. Individuals can be approved for only those applications which their organization already owns (any other requests will be automatically rejected). Each organization now owns three applications: ServicePro Supplier, Blanket PO and Supplier Quality and Delivery Report. If you need one of the other applications, please have your CSA (Corporate Security Administrator) add them to the organization's profile first.

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Figure 11: Covisint Directions

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Routing Letters on Supplier.Online Daimler Trucks routing instructions are provided on the website, SupplierOnline. You can access the “ROUTING LETTER” application directly at the following URL: http://supplieronline.freightliner.com/ This link will direct you to the Daimler Trucks North America login page for Routing Letters. Please save this URL in your Internet Explorer “Favorites” or create a shortcut to the address on your desktop for future use. Daimler Trucks expectation is that the routings be checked at least monthly. The “last-updated-date” next to the location shows the last time a change was made for that facility. Failure to follow routing instructions may result in a debit being issued for the difference in expense between the correct routing vs. the method chosen by your location. For login assistance or for questions or concerns on accessing the SupplierOnline site, contact the Daimler HelpDesk at (503) 745-8220

The DTNA helpdesk will need the following information from the supplier when addressing questions or concerns: ● ● ● ● ● ● ● ● ●

Company Name Company Supplier Code Company Address Company City, State, Zip Company Phone Number Covisint ID Contact Name Contact Phone Number Contact Email Address

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6.0 Engineering 6.1 DTNA Engineering’s Commitment to Suppliers Daimler Trucks North America (DTNA) Engineering is committed to the following: •

DTNA Engineering will treat supplier representatives with respect at all times, fostering open and constructive communication between DTNA Engineering and the supplier.

•

DTNA Engineering will provide comprehensive design specifications, in writing, when possible and with back-up materials (charts, drawings, etc) when feasible.

•

DTNA Engineering will respond to questions in a timely manner and foster an environment where suppliers feel comfortable asking questions, thereby ensuring clarity of our needs, targets and expected outcomes.

•

DTNA Engineering will provide opportunities for the supplier’s representatives to meet with our engineers throughout development in order to ensure our needs and expectations have been understood thoroughly.

•

Meetings initiated by DTNA Engineering will be coordinated in advance to ensure that supplier representatives can provide the level of support and time necessary to fulfill the meeting purpose and objectives. This includes the following:

•

•

DTNA will finalize the meeting date at least two week in advance, when possible.

•

DTNA will distribute an agreed upon agenda to attendees at least one week in advance, when possible.

DTNA Engineering will be involved upfront with supplier selection efforts.

6.2 General Expectations of Suppliers In exchange for DTNA commitments listed in section 6.1, DTNA Engineering holds the following expectations of our suppliers: •

Supplier representatives will treat DTNA Engineers and representatives with respect at all times.

•

During spec development, the supplier will take steps to ensure that their company understands DTNA’s needs and requests. This will include mocking up specs for DTNA Engineering to review and initiating meetings/conference calls to clarify points, as needed. The supplier will develop and test all products to ensure that DTNA requirements such as performance, quality and cost targets are met.

•

Visits initiated by suppliers will be coordinated in advance to ensure that DTNA Engineers and Management can provide the level of support and time necessary to fulfill the meeting purpose and objectives. This includes the following: •

Suppliers will finalize the meeting date at least two weeks in advance, when possible.

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•

Suppliers will distribute an agreed upon agenda to attendees at least one week in advance, when possible.

•

Request for Quote responses will be delivered on time and will utilize DTNA’s standard forms and processes 100 percent of the time.

•

Supplier will provide program and product launch support by the appropriate individuals.

•

Supplier will provide engineering support for product feasibility, product design and tooling design/approval, as appropriate, for a particular program as well as Value Analysis & Value Engineering support.

•

Supplier will manage 8D and response process effectively for potential Quality, Safety or Delivery issues.

•

Supplier will take action quickly in order to resolve issues identified by DTNA.

•

Supplier will establish a contact list for all functions, maintain the list on a regular basis, and ensure that the list is easily accessible to all applicable parties in DTNA Engineering.

•

Supplier will provide quotes that are in complete conformance to engineering specifications. Exceptions must be clearly indicated at the time of the quote.

•

Supplier will be expected to adhere to DTNA Engineering’s 49-00051 Parts Permanent Identification requirements. (http://viewcad.freightliner.com/Scripts/ftlDraw.dll?cgiSearchOrder=2&cgiTifRev=2&cgiDRAWID=49 -00051+&cgiCgmRev=0)

6.2.1 Quality Expectations of Pre-production parts and 8D Problem Solving DTNA expects supplied parts to be of a high quality with regard to design and production. If we determine during inspection, use or testing that the supplier’s parts do not meet DTNA standards, the supplier may be required to provide an "8D Report." This report will help identify and resolve issues through problem solving and will increase our understanding of the entire situation, address our concerns and prevent reoccurrence of the quality issue. If an 8D report is requested, you must address all disciplines contained therein and attach supporting documentation providing observable evidence of corrective action. The following disciplines considered when addressing the 8D report are as follows: • • • • • • • • •

D0 – Symptoms & Emergency Response Action D1 – Team D2 – Describe the Problem D3 – Develop Interim Containment Actions D4 – Define and Verify Root Cause and Escape Point D5 – Define and Verify Permanent Corrective Actions D6 – Implement and Validate Permanent Corrective Actions D7 – Prevent Recurrence D8 – Recognize Team and Individual Contributions

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Each supplier is responsible for both the appropriate and timely application of the 8D Analysis and Report and for their organization’s problem solving knowledge and skill level.

6.2.2 Supplier Containment of Quality Issues Suppliers are expected to deploy additional controls in the supplier’s manufacturing process, as needed, to identify known and potential non-conformance to engineering specifications and to prevent these nonconforming parts from being shipped to DTNA. Additional controls can include, but are not limited to inspection audits, dimensional measurements, SPC requirements, appearance checks, part functionality checks, label verification systems, check fixtures and gages and poka yokes. The goal of containment is to protect DTNA from defective material escapes throughout the development process, including the pre-production/prototype phase.

6.3 Safety Defect Investigations and Remedy •

•

• •

The supplier must notify DTNA Design Engineering and Compliance and Regulatory Affairs Departments immediately when initiating any noncompliance or safety defect investigation on any component they supply to DTNA. The supplier is expected to provide regular progress updates and reports regarding noncompliance or safety defect investigations to appropriate contacts in DTNA Design Engineering, Compliance and Purchasing. The supplier is expected to cooperate fully with any related DTNA investigation. The supplier must meet DTNA and government timelines in providing a field remedy to any noncompliance or safety defect detected by supplier representatives or DTNA representatives.

6.4 Parts Development Expectations (prototype/test) •

Suppliers are expected to provide inspection reports of prototype parts and initial production runs to DTNA Engineering for test purposes. Reports should contain DTNA Engineering specifications including key characteristics as specified by DTNA Engineering.

•

In the event that a supplied test part fails due to supplier-responsible design or part quality issue(s), the supplier is expected to pay for all replacement parts and resulting damage to DTNA property.

•

Suppliers are expected to respond to prototype material requests within two business days. If the specific deliverable requested cannot be provided within that time period, the reason for delay and anticipated delivery date of materials must be communicated within the above time period.

•

The cost of development will be clearly defined upfront. DTNA will charge the supplier for DTNA resources used to develop product for the supplier in the event that the product, derivative of the product or related technology can be sold by the supplier for a profit.

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process for the system and components which are to be developed/supplied within good time using suitable software (IQ-FMEA or SAE J1739 forms). The analysis contents and limits of the FMEA must be coordinated with the responsible DTNA department in advance, with the DTNA departments specifying the evaluation of the significance of fault sequences. The documentation scope listed in Section 2.1 will be reviewed by DTNA Engineering and the conclusions drawn from the FMEA must be documented. In some cases, DTNA may define additional requirements to be fulfilled by the supplier. FMEA will not be considered completed until DTNA Engineering is satisfied with the content and outcome. Suppliers are expected to maintain FMEA documentation and DTNA Engineering will have access to these documents upon request.

6.5.1 FMEA Documentation Requirements • • • • • • •

Full system overview (e.g. system structure, block diagram, installation/attachment/assembly drawings, process flow chart) Functional overview (e.g. function network, function tree, effects diagram) Full fault network (faults with all causes and consequences) Evaluation tables The FMEA manager (e.g. project manager) must be defined and documented FMEA participants FMEA form must be completed in full including the following: - Comprehensible evaluations - Preventive measures, discovery measures - A processing status given for each measure. In the event that a measure is aborted, the reason must be documented accordingly - A responsible person and a deadline specified for each measure - Additional requirements as specified by DTNA

6.6 CAD Information and Other Data Exchange DTNA usually develops component parts, systems/modules and complete functions together with the supplier. Close communication and validation on the basis of a digital product description is required to structure the development process in an efficient, reliable and binding manner. To achieve this, it is necessary to undergo continuous, regulated communication via tools including but not limited to Computer Aided Design (CAD), Engineering Data Management (EDM) and electronic data interchange (EDI). Supplier representatives will provide 3D CAD data for all parts and 2D drawings, as required, to DTNA during project preparation as well as part exchange, generation, testing and installation. CAD data must be in CATIA V5 format. For more information about the DTNA CAD/EDM/EDI environment, please visit the following website: https://swan.daimler-trucksnorthamerica.com/. All of the following are affected: •

New, process-relevant CAD data or Electrical/Electronic data which are to be created and as well as

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• •

any modifications to them. Parts integrated from defined predecessor projects plus standard parts and parts similar to standard parts, but with reduced data structure and data quality requirements. All data for spare parts which have been defined in mutual coordination by the aftersales and development departments and the supplier.

In the event that supplied data does not meet its specified contractual obligations as agreed by DTNA Engineering and the supplier, one of the following will take place upon consultation: • •

The supplier, or a service provider commissioned by the supplier, will generate the missing content or rework CAD data at the expense of the supplier. The Supplier, or a service provider commissioned by DTNA, will generate the missing content or rework CAD data at the expense of the supplier.

If DTNA incurs damages due to the fact that the supplier failed to meet its specified contractual obligations, or failed to do so within good time, the supplier is liable to DTNA for these resulting damages.

6.7 Supplier Changes Suppliers may not change the design, manufacturing process or manufacturing location of a component unless the change has been submitted and approved, in advance, by both the appropriate DTNA Engineering and Purchasing groups. Timing of change must also be agreed upon by the appropriate DTNA Engineering representative. Engineering deviations to supplied parts must be coordinated through DTNA Quality Assurance Managers, Production Managers, the corporate Purchasing Department, or Engineering Management and will be handled in accordance to ISO standard 09ENG-WI015 (Engineering Deviation).

6.7.1 Supplier Change Timeline DTNA Engineering expects that all changes made to supplied parts are documented in a supplier timeline. The timeline should comply with the following: •

The timeline should begin from the time the part goes into production and a history is to be maintained for 5 years (or since the start of production, whichever is shorter).

•

Each timeline can be for all part numbers in a family of parts (if the parts are similar) or for each individual part number.

•

The timeline is to include a table listing the following: -

Date of change and starting date code on part

-

A simple description of the change (more detailed descriptions can be kept with the supplier)

-

One of the following types of change:





Design change Tooling change (or future expected tooling change) Material change Manufacturing process change

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-

Quality inspection or EOL testing change Sub-supplier change

Whether this change is at the supplier tier-1 level or the tier-2, tier-3 or tier-4 level

•

Updated timeline is to be submitted to DTNA Engineering annually (or at a specified interval) for our review. In the event that there is a suspected issue, the timeline is expected to be submitted to DTNA Engineering within 24 hours of the time DTNA requested it from the supplier.

•

An example timeline is provided in Figure 8.

Figure 12: Supplier Part Change Time

6.7.2 Engineering Changes Changes to Engineering designs or project scope will be coordinated via the Electronic Change Form (ECF). No changes will be made or approved without adherence to the ECF Process. Suppliers are expected to provide drawings or specifications to support the content of the ECF as required. Information required from the supplier to support the ECF process is as follows: • • • •

Impact of the proposed change on cost, schedule, or other relevant factors Proposed alternate change (if applicable) Number of parts currently in process or as finished parts in inventory which are not able to be changed Date on which supplier will submit sample parts to DTNA including initial sample inspection report (PPAP)

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• •

Revised quote detailing any part or tooling changes (if applicable) Revised schedule (if applicable)

This information will be routed to the appropriate DTNA representatives for review and decision. Engineering change(s) are expected to be implemented as quickly as possible after approval by DTNA.

Figure 13: DTNA Change Form

6.8 Consequences of Chronic Issues A supplier with a pattern of chronic issues (especially with recent trend deterioration) may be invited to an Engineering Management Review Meeting. The intent of the meeting is to bring additional focus to the top issues facing the organization in order to bring about necessary improvements. The appropriate representative from the supplier is expected to attend a Review Meeting and be prepared to: •

Explain the described deficiencies in the following areas: -

Quality, safety, or delivery of parts

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•

Responsiveness to identified issues Quality and timeliness of FMEA and related documentation Quality and timeliness of data exchange, Quality and timeliness of change requests and related documentation

Present an 8D that addresses supplier’s efforts to improve the systems contributing to deficiencies in the above categories

These meetings are not brainstorming sessions. Supporting materials are expected to be complete and submitted to the appropriate DTNA representative no less than 72 hours prior to the meeting.

6.9 Supplier Innovation DTNA encourages innovation from employees, contractors and suppliers. The following summarizes the expectations and processes for supplier innovation. DTNA expects that innovation activities on the part of our suppliers are well-coordinated with DTNA representatives, and requests that changes impacting parts are discussed in a timely manner. The communication may take place in a variety of ways including: • • • •

Informal discussions and contacts Supplier forums and showcases Contacting the Commodity Buyer to engage New Product Strategy or Engineering Leadership Special reviews with DTNA Engineering Management

DTNA encourages ideas which generate results such as: Clear value for the supplier, DTNA and the end-customers Mutually beneficial cost savings Unique features meeting a consumer need Differentiating technology These ideas must meet the following pre-requisites: Business case has been assessed Technical requirements have been well understood Technical issues have been considered and analyzed A plan containing next steps has been prepared Innovations developed in the context of DTNA projects are the property of DTNA.

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7.0 DTNA Production Parts Packaging, Labeling, and Shipping Guidelines 09IE-E01 (03/10/09)

7.1 Introduction The following packaging and shipping guidelines are required for all production materials entering DTNA Trucks North America (DTNA) OE facilities. This revision is effective March 10, 2009 and supersedes the prior February 1, 2009 publication. Developed in conjunction with AIAG standards, the packaging guidelines detailed below are specific to DTNA and may be directly applied to the AIAG standards. For further information contact one of the appropriate DTNA groups following: Packaging: DTNA Corporate Manufacturing Engineering Department - (503) 745-7759 Shipping: DTNA Corporate Traffic Department - (503) 745-6688 Labeling: DTNA Corporate Material Planning Department - (503)745-6322

7.1.1 Compliance Compliance to these guidelines is mandatory and will be continuously monitored. Non-compliance is subject to rejection by DTNA receiving locations with charges for repackaging, disposal, or return shipment billed back to the shipping location. Recurring violations will be referred to the appropriate DTNA buyer for corrective action. Exceptions to the guidelines may be permitted in limited situations with prior written request to the receiving location. Revisions to current packaging must be tested and evaluated in cooperation with DTNA Corporate Manufacturing Engineering. Supplier initiated packaging or cost improvements are encouraged, but must be reviewed and approved by DTNA Corporate Manufacturing Engineering. DTNA Corporate Manufacturing Engineering and the receiving location (including DTNA approved logistics providers) have the option, when necessary, of accepting or rejecting a supplier’s selection of packaging materials, design, and sources.

7.1.2 AIAG Guidelines DTNA supports compliance to the following Automotive Industry Action Group (AIAG) packaging standards for all production parts to DTNA manufacturing locations. Copies of the following publications may be obtained by contacting the Automotive Industry Action Group (AIAG) at (248) 358-3003 or through their website www.aiag.org. RC-7: Solid Waste Management Packaging Material Guideline, 12/92 RC-8: Single and Multi-Use Container System Guidelines, 9/95 B-10: Trading Partners Labels Implementation Guideline, 6/04

7.2 Packaging and Shipping Data Upon acceptance of your quotation by DTNA Corporate Purchasing, a Production Parts Expendable Packaging Data Sheet must be submitted with your packaging proposals for review by DTNA Corporate Manufacturing Engineering prior to regular production volumes. A sample Production Parts Expendable Packaging Data Sheet is located in Section 7.11. Suppliers must furnish the actual material cost to package each purchased part for inclusion in the purchase order. A completed copy of the Test Packaging Label must be adhered to initial shipments for review of acceptability upon receipt at DTNA. A sample Test Packaging Label is located in Section 7.11.

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7.3 Primary Container Requirements The package design is the supplier’s responsibility, and the supplier must ensure that the parts and all packaging shipments are received in acceptable (damage free) condition. The primary container will carry the part from shipping to assembly where it is presented to the operator. It must maintain part quality through transit and multiple handlings. • The compression strength of the container(s) must support contents triple stacked up to 100” in height for maximum trailer density and storage. Containers labeled “Do Not Stack” or “Top Load Only” will not be accepted. Suppliers are encouraged to investigate the benefits of specifying corrugated based on ECT Edge Crush Test (see AIAG RC-7, Section 3.1) and fiber-based corner posts (see AIAG RC-7, Section 3.3) for additional strength. (Do not adhere wood corner posts to container.) • Container(s) should be modular to the DTNA standard 48”x40” pallet footprint, with overhang no more than 2” less than the pallet footprint on any one side. Unacceptable Pallet Overhang

• • • • • •

No more than one part number per container (i.e. no kitting) will be accepted. Container(s) must be completely filled and may require redesign to eliminate void space, part shifting, and container crushing. Small, manually-handled totes must not exceed 40 lbs. and should contain at least 10 parts unless otherwise agreed upon. No individual or aftermarket packaging is permitted for production parts. The unsupported bottom of the manually-handled container must hold the weight of its contents. Large, mechanically-handled bulk containers should be used for large, heavy parts with typically high release quantities. The container must be designed with adequate compression strength to prevent sidewall crushing or bulging and incorporate a ‘break-away’ feature (see AIAG RC-7, Section 3.4) with minimal staple usage if it will be adhered to the pallet for unitization.

To ensure that all packages and shipments will reach their intended point of use in good condition and without damage to parts, all packages must be tested under simulated real-life conditions. Initial shipments of new packaging to DTNA production facilities must be accompanied by a completed Test Package Label and noted on the ASN. A sample Test Package Label is located in Section 11.0. DTNA Corporate Manufacturing Engineering will provide feedback to suppliers regarding the results of the Test Package shipment and the acceptability of the package design.

7.3.1 Selection of a Primary Container The appropriate size, strength and type of primary container must be chosen to support the mode of transportation, government and carrier regulations, part protection, transfer points and distance of travel. The determination must be made to pack the parts in a small, manually-handled tote or a large, mechanicallyhandled bulk container. Factors to consider in determining the primary container size include piece part weight, shipping/release quantities and presentation to the operator.

7.3.1a Carton Selection Apply the finished piece part weight (lbs.) and the estimated shipping/release quantity to the matrix to determine classification into manually-handled tote or a mechanically-handled bulk container. (Do not use this matrix for determining packaging for fasteners.) 02.2011REV Daimler Trucks North America LLC

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Piece Part Weight < 2 lbs. 2 - 4 lbs. >4 lbs.

Estimated Shipping/Release Quantity 0 - 250 parts 250 - 500 parts 500+ parts Tote Tote Tote Tote Tote/Bulk* Bulk Bulk Bulk Bulk

*Part characteristics (size, volume, handling, etc.) to dictate container

7.3.1b Container Sizes Acceptable primary container sizes will be modular to the standard 48”x40” pallet footprint. If it is necessary to deviate from the given primary container sizes, contact DTNA Corporate Manufacturing Engineering for approval. In general, the following matrix can be used to determine an appropriate primary container size for quotation. Length

Width

48”

x

40”

x

24”

x

x

12”

x

10” or 20” 10”, 20” or 40”

Height 10”, 15” or 30” 10” or 15”

x

10”

Containers must be properly palletized in level layers to allow for stacking and proper utilization of transportation. If your standard order quantity does not equate to a level layer on the pallet, contact your DTNA Material Planner and/or Corporate Manufacturing Engineering. When shipping volumes warrant palletization, containers must be loaded on a pallet and shipped as a unit load, secured to a pallet.

7.3.1c Container Sealing Acceptable methods of sealing manually-handled totes are strippable reinforced tape or spot gluing. Alternative methods may only be acceptable with prior approval from the receiving plant locations.

7.4 Internal Part Protection Requirements Parts must be secured and protected in the primary container and be free of damage upon delivery. Internal dunnage must not restrict part presentation to the operator. The following part protection requirements must also be adhered to: • Whenever possible, paper-based dunnage must be used. • Whenever possible, recycled content materials should be used. • For part surfaces requiring plastic packaging materials, the material must be designed for recyclability and ease of segregation. All plastic packaging must be identified by resin type according to the symbology established by the Society of Plastics Industry (SPI). (See AIAG RC-7, Appendix 4.) • No foreign materials may be adhered to corrugated board or wood.

7.5 Pallet Requirements The pallet design is a critical element to assure overall package system performance and part quality. The following pallet requirements must be adhered to: • All pallets must maintain sufficient construction and meet performance requirements. Contact the National Wood Pallet and Container Association (NWPCA) at (703) 519-6104 or at www.NWPCA.com for information regarding their Uniform Voluntary Standard for Wood Pallets, Specialized Pallets

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•

Engineered for Quality (SPEQTM) Assurance Program, and Pallet Data System (PDS) detailing the specifications and durability of a pallet to ensure adequate performance at the best possible price. Effective September 16, 2005, the governments of the U.S., Canada and Mexico will implement Wood Packaging Material (WPM) regulations per the ISPM No. 15 of the North American Plant Protection Organization (NAPPO). The purpose of the regulation is to protect North American forests against foreign pest infestation. This regulation requires ALL WPM used in international trade including pallets, crates, boxes and dunnage, going to or from the United States, Mexico, and Canada, to be kiln dried or heat treated to minimum specifications and stamped with the internationally recognized WPM Mark. Shipments not meeting these requirements will be stopped at the border and re-exported. Treatment or destruction within North America will not be permitted. All three governments strongly encourage shippers to plan ahead for this policy change to avoid shipment delay and additional expense. WPM between Canada and U.S. Exempt U.S. Animal Plant Health Inspection Service (APHIS) and the Canadian Food Inspection Agency (CFIA) Plant Health Division cite that WPM of U.S. and Canadian origin are exempt from the WPM regulation and therefore do not require the international mark. WPM from a Canadian or U.S. origin is still subject to inspection for pests. Mexico All WPM originating in Canada or the U.S. destined for Mexico must be treated and stamped. All WPM originating in Mexico and destined for Canada or the U.S. must be treated and stamped. See APHIS guideline at http://www.aphis.usda.gov/ppq/swp/guidelines.pdf See CFIA Policy Directive D-98-08 at http://www.inspection.gc.ca/english/plaveg/for/cwpc/wdpkge.shtml Terminals and customers should ensure they understand the new regulations. For more information contact APHIS at 301-734-5057 or CFIA at 613-225-2342.

•

• • • • •

The DTNA standard pallet is a 48” x 40” wood pallet. If a unique size pallet is required, the pallet length should be sized to accommodate the part length while maintaining the 48” pallet dimension for proper trailer utilization. Pallets should be stamped on at least one side with the pallet’s overall footprint dimension. Pallets must not be smaller in length and width than the load it carries. All pallets must be of 4-way entry, double face, non-reversible, wood construction. All pallets must be able to support a 2,800lb. load while triple stacked. Pallets must be new. The use of corrugated, salvage, and other pallet alternatives are prohibited unless investigated in cooperation with DTNA Corporate Manufacturing Engineering.

7.6 Unitization and Palletization Requirements Pallet load containment must provide damage protection and optimum load performance with minimal environmental impact. Part damage and load shifts due to packaging failures are subject to rejection upon receipt at all DTNA locations. The following utilization and palletization requirements must be adhered to: • Unitization and/or palletization is required for all parts and should be designed to stabilize and complement the primary containers to prevent movement throughout the handling cycle. • The unit load must be modular to the pallet and remain stable for material handling and storage after initial part access and removal. • All containers must be properly palletized and secured to the pallet. • Palletized cartons should be uniform in size to maintain load stability.

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• •

Maximum overall height per unit load is 40”. Contact DTNA Manufacturing Engineering for load heights greater than 40”. Containers must be palletized in individual level layers on the pallet. No “pyramid” unit loads are allowed. If material release quantities do not permit shipment of individual level layers of containers, explore alternative methods of containerization and/or contact DTNA Corporate Material Planning or Manufacturing Engineering for assistance. Properly Palletized Cartons (Level Layer)

Unacceptable Unit Loads (Pyramid)

•

Palletize by like part numbers. Mixed unit loads is discouraged. (See Section 7.0 of this document.) Mixing right and left hand parts on the same pallet is discouraged.

7.6.1 Containment The preferred method of containment is either plastic, heat sealed strapping of green polyester or stretch film. Plastic strapping and stretch film should secure the entire palletized load including the pallet. The use of unitizing adhesives for individual cartons is encouraged.

7.7 Returnable Container Programs The use of returnable containers for shipping parts to DTNA locations must be negotiated as part of the agreement to supply parts to DTNA. Contact DTNA Corporate Manufacturing Engineering or Purchasing Agent for consideration.

7.7.1 Expendable Packaging Backup Suppliers involved in a returnable container program must maintain a sufficient supply of suitable expendable packaging to be used for expedited shipments, production pilot programs, returnable container shortages, and/or plants not participating in returnable container programs for that part. Whenever possible, the backup expendable packaging should be identical in dimension and density to the returnable container.

7.7.2 Combination Returnable and Expendable Packaging Complex logistics and/or economics may require the use of a returnable container with expendable internal dunnage. DTNA will supply the returnable containers for the program. The supplier is responsible for the design, testing, and replacement of the expendable internal dunnage. The dunnage costs will be included in the piece price on the Purchase Order. An Expendable Packaging Data Sheet must be completed for the expendable internal dunnage. A copy of the Production Parts Expendable Packaging Data Sheet is located in Section 11.0.

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7.7.3 Returnable Container Shortages DTNA provides containers to support a lean manufacturing system. Returnable container overages or shortages must be brought to the attention of DTNA Corporate Manufacturing Engineering for resolution as well as any anticipated changes in volume that may impact an existing returnable container pool.

7.7.4 Returnable Container Repair and Maintenance Suppliers are responsible to ensure that all returnable containers are in good working order and repaired when required. Contact DTNA Corporate Manufacturing Engineering for the proper procedure for repair and maintenance. It is the supplier’s responsibility to inspect all returnable containers prior to loading to ensure that damaged equipment is not used. The cost of damaged parts resulting from a supplier’s inability to properly secure parts in returnable containers for shipping will be charged back to the supplier. Report any signs of repetitive returnable ‘abuse’ to DTNA Corporate Manufacturing Engineering. Effective March 2009, DTNA OE facilities have implemented the use of a shipping rack repair tag for placement on racks which are clearly in need of repair. The OE facilities have been trained to complete the tag in its entirety and to wire tie it to the rack which needs repair. Upon return of racks to supplier locations, any racks found with the tag must be set aside by the supplier for shipment to the DTNA Manufacturing Engineering designated repair location. The tags are yellow and made of Tyvek material which is water and weatherproof. For questions call DTNA Manufacturing Engineering.

7.7.5 Segregation and Control of Returnable Containers DTNA-owned containers must be segregated from other containers and must be used for DTNA parts only. DTNA-owned containers are supplied for containerization and shipping of specific, finished parts to DTNA locations. Transport, storage, or shipment of non-finished parts is strictly prohibited and may result in container loss or shortage.

7.7.6 Returnable Container Specifications Each returnable container/rack shall be stenciled with identification and sequence number, “Property of DTNA” and a vendor return label such as “Return to XYZ, City, State”. For additional specifications including rack drawings, stenciling, and design, contact DTNA Corporate Manufacturing Engineering.

7.8 Identification and Labeling Requirements The following labeling instructions apply for proper addressing of parts and materials shipped or delivered to DTNA locations. Suppliers must insure that all parts and material are correctly labeled and that the labels are properly attached.

7.8.1 AIAG Labeling Guideline The AIAG Trading Partners Labels Implementation Guideline (B-10) provides instructions for printing and applying shipping/parts identification labels to improve productivity and controls at suppliers and DTNA locations.

7.8.2 Label Certification Process Each supplier will submit a label for approval. It will be sent to DTNA or their agent for certification. The label will be reviewed and tested for compliance. It must receive a grade of “C” or better on a verifier. If any corrections are needed, the supplier will be notified of a problem and required to resubmit a revised label. Once the label passes all reviews and tests, the supplier will be notified of their compliance. No special characters will be permitted such as /, $, +, %.

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7.8.3 Label Specifications • • • • • • • • • • •

All labels must by 4” x 6” with bold black ink. The label paper shall be white with bold, black printing. No colored labels or colored inks will be allowed. Adhesive labels can be pressure sensitive or dry gummed as long as adherence to the container is assured, application is wrinkle free and only used for expendable packaging. All bar codes will be Code 128 symbology and .5” high or better. Bar codes will be a minimum of 5 mil to a maximum of 30 mil or .01 to .017 inches for the narrowest element. For bar code symbology, requirements and specifications refer to AIAG B-10. Human readable fonts should be simple and there must be a clear distinction between the letter “O” and number “0”. A quiet zone of no less than .25 inches is required in front of and behind all bar codes. All font heights will be defined in LPBs (lines per block). See Section 7.8.4 LPB Character Parameters Table below. Borders around the labels will not be required, even though they are shown in all of the label examples in this document. Sample labels are located in Section 7.11.0.

7.8.4 Suggested LPB Character Parameters Table Lines per block

Max char per line

Point

Inches

mm

1 LPB

08

64

0.90

22.0

2 LPB

18

32

0.40

11.0

3 LPB

28

20

0.25

7.0

4 LPB

34

16

0.20

5.0

5 LPB

42

12

0.15

4.0

6 LPB

48

10

0.12

3.0

7 LPB

59

08

0.10

2.0

8 LPB

68

06

0.08

1.5

NOTE: Based on 4” x 6” label.

7.8.5 Labeling on Stretch Film When a unit load is stretch wrapped, a Master Label or a Mixed Load Label shall be adhered to the outside of the stretch film, visible to operators and readable for barcode scanning. This label is required for all stretch wrapped unit loads of single or multiple packs. This label may be removed with the stretch film making individual container labeling necessary as described in Section 8.3. See Section 8.8 for Mixed Load Labeling.

7.8.6 Container Label Identical labels should be located on two adjacent sides of each container. The upper edge of the label should be as high as possible on the container. A sample container label is location in Section 7.11. For multiple containers on a pallet, a Master Label (see Section 7.11) or a Mixed Load label (see Section 7.11) should be visible. Pallet-box and Individual Carton Label Locations

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7.8.6a Odd size shipping Shipments of other kinds may require different forms of labeling or hang tags with adhesive labels. Drums, Barrels or Cylinder Containers – Identical package labels shall be located on the top and near the center of the side.

Bale – Identical package labels shall be located on the upper corner of an end and an adjacent side.

Rack – Place label on Kennedy placard adhesive sticker/card or label plate provided on rack or open metal bin.

Open Metal Bin or Tub – Place label on Kennedy placard adhesive sticker/card or label plate provided on rack or open metal bin.

Single Coil or Roll – Attach package label with wire metal hang tag to both inside and outside of coil.

Tubing and Bars/Bundles – Attach package label with wire metal hang tag to each end.

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7.8.7 Master Label A Master Label shall be used to identify the total contents of a multiple single pack load of the same part number. The label shall be placed on the unit load in such a manner that when the unit load is broken apart the label is discarded (ex. attach to outside of stretch wrap). See AIAG B-10 for further information. A sample Master Label is located in Section 7.11.0. Master Label Location

7.8.8 Mixed Load Label Mixing of part numbers on a pallet is discouraged but may be unavoidable due to low order quantities and/or shipping/handling expense. In these limited circumstances, a Mixed Load Label shall be used to identify a load of multiple single packs of different part numbers. Note: Mixed loads are required to have a Master Label of each individual part number on the unit load. The labels shall be placed on the unit load in such a manner that when the unit load is broken apart the label is discarded (ex. attach to outside of stretch wrap). See AIAG B-10 for further information. A sample Mixed Load label is located in Section 7.11.0. Mixed Load Label Location

7.8.9 Destination Label Each unit load must be identified with a properly addressed Destination Label directing the unit load to the exact shipping address of the receiving plant location. The Destination Label must be placed on the unit load where it can be easily seen and read. A sample Destination Label is located in Section 11.0.

7.9 Trailer Loading and Transportation Requirements Packaging design and specifications such as size, weight, and stackability drastically impact the cost of transportation. The DTNA Corporate Traffic Department will designate the most economical mode of transportation consistent with the nature and the volume of the parts. Supplier specific Routing Instructions must be obtained from the DTNA Corporate Traffic Department. The transportation mode may influence the type and size of the packaging selected. It is the supplier’s responsibility to efficiently and economically pack the material for the method of transportation and type of handling planned for the final destination and its intended point of use. The following loading and transportation requirements must be adhered to: • •

Unit loads must be properly loaded, blocked, and braced for shipment. Void space must be filled to prevent load shifting in transit.

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7.9.1 Packing Slips and Bills of Lading Packing slips and bills of lading, whether direct shipments or shipments moving through a consolidation point, must be submitted with every shipment.

7.9.1a Direct Shipments Direct shipments moving from a shipping plant to a destination plant must include packing slips prepared in duplicate. One copy of the packing slip is to be firmly attached to the outside of one of the containers in shipment. The second copy should be tendered to the carrier along with two copies of the bill of lading.

7.9.1b Consolidated Shipments Partial loads moving from a shipping plant through a consolidation point for delivery to a destination plant must include packing slips prepared in sets of four. One copy of the packing slip should be firmly attached to the outside of one of the containers in shipment. The other three copies should be tendered to the carrier along with two copies of the bill of lading. The bill of lading should indicate that the packing slips are to be delivered to the consolidator at the time of delivery.

7.9.1c Customs Papers All U.S. shipments destined outside of the U.S. must have a customs invoice provided by the supplier and included with other shipping documentation. See your Routing Instructions provided by the DTNA Corporate Traffic Department.

7.9.1d Third Party Consignment When making a third party consignment shipment, the bill of lading must include the following: Consigned to: Daimler Trucks North America c/o (Third Party, ex. Acme Parts Supplier)

7.9.2 Packing Slips All packing slips must include the following information: Supplier Information — 1. Supplier Name and Address (Ship point not billing office) 2. Vendor Code 3. Packing slip number 4. Date Shipped Shipping Information ― 1. Ship to: DTNA plant, DTNA location code, address 2. Bill to: DTNA plant, DTNA location code, address 3. Gross, tare, and net (material) weight 4. Shipped Via (routing as instructed by DTNA Corp Traffic Dept) 5. Bill of lading number 6. Freight terms (F.O.B. point, collect prepaid) 7. Transportation mode (rail, truck, etc.) 8. LTL shipments include PRO Number 9. AIR shipments include AirWay Bill Number 10. Full Truck Load or Intermodal shipments include Trailer Number or Container Number, and Carrier 11. Shipment Identification (SID) Number (SID # - this is the same number included on the Advanced Shipping Notice and Invoice)

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Packaging Information ― 1. Number of unit loads: pallets, containers, cartons, etc. 2. Pieces per unit load 3. Unit of measure (if other than pieces per unit load) Item Information — 1. Purchase Order (PO) number 2. PO Line number 3. DTNA Part Number 4. Ship Quantity (Unit of measure if other than each - ie. ft., lbs., etc.) Note: The SID number should be clearly marked as "SID Number." The part numbers are to be listed in Alpha/Numeric order. Each unique part number should only be listed once, with total quantity.

REFERENCE

7.10 Glossary Alphanumeric – a character set that contains alphabetic characters (A-Z), numeric digits (0-9), and some punctuation marks such as hyphen (-), period (.) and space. ANSI – American National Standards Institute Bar Code Symbol – an array of rectangular bars and spaces which are arranged in a predetermined pattern following specific rules to represent elements of data that are referred to as characters. A linear bar code symbol typically contains a leading quiet zone, start character, data character(s), stop character, and a trailing quiet zone Character – any value of one or more numbers, letters, punctuation marks, or other information Code 128 – for the purposes of this document, Code 128 is a bar code symbology as specified by AIM Uniform Symbology Specification Code 128 Container – receptacle or a flexible covering for shipment of goods such as a box, bag, package or pallet (also see transport container and unit load) Data Identifier – a specified character string which defines the specific data that immediately follows as defined by ANS MH10.8.2, Data Identifier Guideline ID – abbreviation for identification. Line on Label – horizontal divider line(s) placed above and/or below building block or blocks. Highlighting lines are easily distinguished from the horizontal separator lines used to separate other building blocks. This visual difference may be the result of using a thicker line chosen by the labeler Label – card (tag), strip of paper (with or without adhesive backing), etc. marked and attached to an object to convey information LPB (Lines Per Block) – unit of measure defining the height of text characters Master Label – label used to identify and summarize the contents of a master pack Mixed Load Label – label used to identify and summarize the contents of a mixed item pack Numeric – a character set of any combination of 0-9 or consisting of any numbers only Quantity – indicates the number of parts, items or other units and assumed to be each unless otherwise designated Quiet Zone – for this document, it is a blank space of at least 0.5 inches in front of and behind a bar code that is free of any lines or other characters Ship From – on a transport label, the address of the location from which the package or pallet was shipped and where the carrier will return the shipment if the container is undeliverable Ship To – address of the location where a carrier will deliver the freight Supplier – in a transaction, the party that produces, provides or furnishes a product or service. Supplier ID – the numeric or alphanumeric data used to identify the supplier as set by DTNA Tag – label (card) that is attached to a shipping container/pack

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Unit Load – one or more transport containers or other items held together by means such as strapping, interlocking, glue, shrink wrap or net wrap making them suitable for transport, stacking, and storage as a package Unit of Measure (UM) – Designation of quantity of shipment when other than each

7.11 Forms and Samples The following pages include forms and samples that suppliers can reproduce to conform to the requirements of this manual.

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Daimler Trucks North America Production Parts Expendable Packaging Data Supplier:

Supplier Code:

Supplier Contact:

Phone:

Daimler Trucks North America Part#(s):

Current Date:



This Data Sheet Reflects:

Current Packaging 

Proposed Packaging

Effective Date:

Packaging Materials and Related Costs (A) General Information:

Cost Per Part

# Par ts Pe r Con tainer =

# Pallets p er 53' Tra iler =

Parts Per 5 3' Trailer =

0

# Containers Per Layer =

# Layers Per Pallet =

# Containers Per P allet =

0

(B) Primary Container Information:

x

x

Length

Width

Tare Weight

Height

Wall Construction

Style of Container

Edge Crush (ECT)

Burst Strength

/ Cost of Container

0

=

(B)

# Parts Per Container

Container Cost Per Part

(C) Dunnage Information: Describe internal part protection (include style and type of materials) in the primary container.

/ Cost of Dunnage

(D) Pallet Information:

x Length

=

(C) Dunnage Cost Per Part

x Width

Tare Weight

0 # Parts Per Container

SPEQTM Certification Code

Height

Describe maximum load and durability per Pallet Data System (PDS) Report.

/ ( Cost of Pallet

x

0

0

# Containers Per Layer

x

# Layers Per Pallet

0

)

=

(D) Pallet Cost Per Part

# Parts Per Container

(E) Unitization Information: Describe method of securing container (banding, stretchwrap, etc.) to pallet.

/ Cost of Unitization

(F) Labeling Information:

0

/

# Containers Per Pallet

0

=

(E)

# Parts Per Container

Unitization Cost Per Part

Follow AIAG Shipping/Parts Identification Label Standard (B-3 03.00 7/93) 2 Labels per container

(G) Total Packaging Cost Per Part:

/

x Cost Per Label

0

Sum of figures in (B) through (F)

Please sign and date the completed form.

=

(F)

# Parts Per Container

Label Cost Per Part

$

=

-

(G)

Submit Data Sheet by mail or fax to: AND

Daimler Trucks North America Corporate Purchasing, C1A-PUR P.O. Box 3849 Portland, Oregon 97208-3849 Fax Number: (503)745-7328 Signature

Daimler Trucks North America Corporate Packaging, C1E-ME P.O. Box 3849 Portland, Oregon 97208-3849 Fax Number: (503)745-7327

Date

Figure 14: DTNA Production Parts Expendable Packaging Data

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Figure 15: DTNA Test Packaging Identifier

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Figure 16: DTNA Packaging and Shipping Label Detailed Outline

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Figure 17: DTNA Master Label Detailed Outline

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Figure 18: DTNA Mixed Load Label Detailed Outline

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Figure 19: DTNA Destination Label Detailed Outline

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8.0 Logistics 8.1 Terms Daimler Trucks North America’s standard terms for delivery of production material are FCA Supplier Dock Incoterms 2000, freight collect. DTNA will provide supplier with instructions for transportation routing from standard shipments and for varying shipment sizes and classes of service. DTNA has standard routes with pre-determined pick up days and time windows. These are set up with assistance from Ryder Logistics. Detailed routes are established on conference phone calls with suppliers where applicable. DTNA expects suppliers to communicate specific transportation orders directly with designated carriers shown in routing instructions. Please call (503) 745-7537 with questions on DTNA routing instructions.

8.2 Routings Specific routings for each supplier and shipping point are available on DTNA’s supplier website at http://supplieronline.freightliner.com/. Contact DTNA’s Help Desk at (503) 745-8208 to obtain a login and password for the website. Please have your vendor code ready when you call. If routings are not shown or if there are questions on the routings, call DTNA Traffic at (503) 745-7537. See Figure 16 for an example of routings from the supplier website. Please note that the top section shows ship day information regarding days of the week for shipping, predominant transportation mode expected and planned transit time. Special instruction notes are located at the bottom of the routings.

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Figure 20: Routing Instructions Example

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8.3 Compliance with Routing Instructions Excess premium freight charges as well as a $100 administrative processing fee (per shipment) may be debited to suppliers who, after communication from DTNA, continue to fail to follow DTNA routing instructions.

8.4 SID Numbers The Shipment Identification Number (SID) on your ASN must also be clearly identified on your bill of lading. For FedEx, BAX and UPS shipments, the SID number must be contained in the reference field of the airway bill.

8.5 Premium Freight Authorization All shipments moving with additional costs to be paid by DTNA, such as air freight or ground expedite freight, must have a Premium Freight Authorization number (PFA). The PFA can be obtained by the material planner assigned to the supplier. The PFA must be shown on the Bill of Lading or on the shipper’s reference area of the airbill (in addition to the SID).

8.6 ASNs ASNs must be sent within 30 minutes of the freight departing from your facility.

8.7 Cooperation with Ryder Integrated Logistics DTNA employs the services of a third party logistics provider, Ryder Integrated Logistics, to assist DTNA. Please cooperate with Ryder representatives as you would with DTNA employees. In particular, please provide Ryder with all packaging and shipping information requested. This information is necessary for Ryder to perform DTNA supply chain optimization. In order for DTNA to plan inbound logistics, suppliers must provide accurate packaging information for all active parts (including packaging type, parts per container, dimensions and weight) to DTNA and its preferred logistics provider within 30 days of request. Packaging details may be requested for each new part with requirements. Supplier will provide packaging details in a format specified by DTNA's designated logistics provider.

8.8 Regional Integrated Logistics Centers (RILC’s) Shipping Instructions VENDOR INSTRUCTIONS for SHIPPING THROUGH RILC’s: 1. In general, unless specified elsewhere in a vendor’s specific routing instructions, breakpoints for shipment optimization are provided for all routes. 2. Pack material according to DTNA’s Packaging Guidelines (see paragraph 7). 3. Segregate freight for each destination. Do not combine material for multiple destinations on the same pallet. 4. Multiple part numbers can be combined on the same pallet if identified as a “mixed load”. 5. Mark the final destination on every piece in the shipment. 6. Use bar code labels configured per instructions in DTNA’s Packaging Guidelines (available on Covisint).

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7. Bills of Lading: a) Prepare a separate bill of lading for each destination. b) Maximum character length is 18. c) The bill of lading number cannot be used as the SID number if more than 15 characters. 8. SID number maximum character length is 15. 9. Follow the add/cancel process per your assigned RILC – LINC (pg.3), Exel Toledo (pg.7), Exel Portage (pg.11), Exel Charlotte (pg.15). 10. Provide the RILC with the following information: a) Vendor name and vendor code b) Destination plant name(s) and location number(s) c) Number of pallets and racks in the shipment for each plant d) Weight of the shipment for each plant 11. Notify RILC of any significant changes in the shipment pieces or weight. 12. Follow the recovery process per your assigned RILC should your shipping requirements exceed allotted space on Collection Routes – LINC, Exel Toledo. Exel Portage. Exel Charlotte, Exel Laredo. 13. Staple one (1) copy of the packing slip(s) and customs invoice if shipping to Canada or Mexico, to the bill of lading and hand it to the driver. 14. Place one copy of the customs invoice in a separate envelope on the freight. 15. ASN’s: a) Use only one (1) ASN per shipment to each destination. b) Do not list the same part number more than once on the same ASN. c) Transmit your ASN within 30 minutes of the driver departing your facility. d) Use the following carrier SCAC code regardless of which carrier picks up your RILC shipment: XEXT for Toledo - XEXP for Portage - XEXC for Charlotte - XEXL for Laredo NOTE: RILC drivers have been instructed not to pick up freight for Locs 013, 030, 058 and 065 if customs invoices are not provided as stated above in items 12 and 13. It will be the vendor's responsibility to ship the material to RILC docks at their own expense.

8.9 DTNA- RILC Communication Procedures - General A. General Communication and Shipping guidelines: 1. This document is intended to give guidance to suppliers shipping material through the RILC network. Due to the complex nature of the routing process, all outlined policies have been established so that material and issues are handled correctly and in a timely manner. It is important that suppliers e-mail all indicated parties in order for the timely resolution. 2. Aftermarket material, also known as PDC freight, can be recovered up to 48 hours after scheduled pick-up if a cube out occurs. Therefore, PDC material should be the last material placed on a trailer

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unless otherwise directed by Exel or DTNA when determining which freight should be loaded on a cubed out route. 3. RILC is not responsible for arranging premium freight handling outside of normal RILC process. B. Deviation of allocated footprint (including no freight): Communication to RILC should be via e-mail to designated contacts hours in advance of a scheduled pick-up. C. Route Cube Out or Carrier Failure: After trailer arrives, if supplier cannot load all requirements onto trailer due to lack of space or weight capacity or trailer not arriving as scheduled, the published communication process must be followed. D. On-Call Supplier Requiring Pickup: Suppliers located in the network with low or infrequent shipping volume will be provided special shipping instructions using either collection route transport, LTL Transport, or parcel transport. E. Move up or Drop in Orders: In cases where DTNA schedule changes result in the need to ship earlier than the next scheduled supplier pick-up date, RILC must be contacted for special pick up arrangements. F. Supplier Failure: Collection route truck arrives and material is not ready at designated pick-up day and window time can result in shipping delays and parts shortages at DTNA plants. Pick time windows are enforced with carriers and suppliers. 1. The collection route carrier must contact RILC if freight is not ready to ship during scheduled window time. The driver will be authorized to leave the supplier’s location after the window time expires.

2. Supplier notifies RILC that a supplier failure has occurred. With DTNA traffic guidance, supplier will arrange to move material at their expense to the cross dock. Supplier needs to communicate to RILC when the material will arrive and by which carrier. G. Other Situations: After pick-up at supplier origin, if it is determined that shipment cannot meet plant need date, normal RILC processing communication procedures must be followed as noted below. This could occur due to supplier error or DTNA schedule change. 1.

Supplier or DTNA discover that RILC collection route truck has picked up shipment and RILC normal processing time will not allow shipment to arrive at plant on need date.

2.

Supplier or DTNA Material Planner calls RILC dispatch and notifies of timing issue and inquires if shipment can meet plant need date by placing a higher priority on the urgent material.

3.

If RILC advises that urgent handling can result in on-time delivery, the shipment is left in the RILC system utilizing urgent handling methods.

4.

If RILC advises that urgent handling within RILC system cannot result in on-time delivery, supplier or Material Planner calls DTNA Corporate Traffic (See Appendix B) and requests routing instructions. DTNA Corporate Traffic and Exel operations will work together to meet customer needs and expectations.

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H. Route Planning Issues: If supplier requirements consistently do not match anticipated trailer utilization by Exel or general route concerns or questions, supplier must contact the RILC routing analyst for new shipment plan.

8.10 Shipping Requirements Shipments for Portland addresses other than Location 01 Contact Daimler Trucks North America Traffic (503) 745-6688. Multiple Shipments on the Same Day to the Same Destination All shipments from the same address, to the same destination, on the same day, must be combined on one bill of lading or air bill. Carton Markings and Packing Slips Mark every carton with final destination and the number of cartons (i.e. Duluth 1 of 1, Memphis 2 of 3, etc.) and attach packing slips securely to the freight, in an envelope. Packaging and Labeling Packaging must be compliant with DTNA’s packaging guideline – see section 7 of this guide. Wood requirements for International Shipments International shipments must have the wood for pallets, or other wood uses, meet the WPM (Wood Packaging Materials) standard consistent with the U.S. Customs and Border Protection "Wood Packaging Materials" which can be found at http://www.customs.ustreas.gov/xp/cgov/import/commercial_enforcement/wpm/. Trailer Seal Requirements Truckload shipments must have a seal securing the trailers and the seal number must be recorded on the bill of loading consistent with the U.S. Customs and Border Protection "Seal Requirements for Manufacturers" which can be found at http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/fast/us_mexico/mexico_manuf/ma nuf_seal_requirements.xml. Breakpoints for Less-than-Truckload (LTL) and Truckload (TL) Shipments If there is a LTL/TL breakpoint specified on the routing page, use it. Otherwise, use the guideline of shipments over 20,000 pounds or 20 foot in a trailer, stacked normally, should move as a truckload rather than as LTL. 3rd Party Shipments (from one vendor to another, or to non-DTNA receiving locations) DTNA's purchase order number and/or the name of the DTNA employee authorizing the 3rd party shipments must be shown on your bills of lading and airbills. Freight bills without the required information will be paid to the carrier and debited back to your company. Call DTNA Traffic at (503) 745-6688 for the carriers to be used when 3rd party shipments are authorized. The following billing information must show on your bill of lading for all authorized 3rd party shipments: Prepaid with 3rd party billing to: Daimler Trucks North America P.O.Box 3499 Portland, OR, 97208 Carrier Assistance Contacts If the routing instructions specify using one of the following carriers, you should contact them for assistance

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on how to fill out their forms or use their automations systems. Contact information is as follows: BAX Global (any weight) 888-378-5467 for DTNA team FedEx Express (Packages less than 150 lbs) 1-800-463-3339 FedEx Express Heavyweight (over 150 lbs) 1-800-332-0807 UPS SCS (over 150 lbs) 800-443-6379 Truckload shipments to DTNA locations. If no carrier is specified, please call 503-745-7537. Special Instructions for shipments to DTNA Parts Distribution Centers Consolidate all parcel and less than truckload shipments to each designated PDC and ship as one shipment once a week, unless otherwise instructed. Failure to consolidate will result in a minimum $200 debit memo per occurrence, subject to an increasing amount for continued non-compliance. DTNA Aftermarket Drop Ship Vendors Routing will come on each "Emergency Purchase Order" noting which carrier to use and whether payment will be collect or 3rd party billing. If this information is not provided or if a carrier change is necessary, please contact the DTNA planner at (503) 745-6060. When the shipment weight exceeds 19,000 pounds or the shipment takes more than 19 foot in a trailer, call DTNA Traffic (503 745-7350) for truckload carrier routing. Failure to follow this routing may result in a debit for the cost difference incurred. International Shipments from Canada to the US or from US to Canada: Ground shipments, whether UPS or LTL, should show DHL Global Forwarding as the customs broker. Air shipments via UPS or FedEx should show applicable carrier's name as the customs broker to ensure speedy delivery to the dealer. For the customs documentation, DTNA should be shown as the buyer or purchaser and the dealer shown as the consignee or ship to location. All drop shipments originating in Mexico ship via a truckload carrier to Laredo. Expedite from Laredo.

8.11 Shipments into NAFTA (Mexico/Canada) Shipments to Mexico (Santiago and Saltillo) Vendor must complete a typed Mexican Customs Invoice. Links are available for sample and blank customs invoices on the routing page. A copy of the invoice must be attached to both the bill of lading and the freight itself. A packing list must be attached to the freight. All freight must be labeled with the ultimate destination. All airfreight must be consigned to the plant address. Airfreight cannot be consigned to Laredo, TX. Transportation Charges are billed “3rd Party” and Duty and Taxes are “Bill Recipient”. Daimler Vehiculos Comerciales Mexico S.A de CV ID # is DCV-910102-P75. This number may be required on the FedEx airway bill. For airfreight only, Shippers Export Declarations are required for commodities whose values exceed $2,500. Shipper Export Declarations are not required for any ground shipments, regardless of the value. In order to ensure prompt delivery for shipments that require airfreight into Loc. 065, vendors must ship via FedEx regardless of who is paying the bill. The FedEx service level is International Priority or International Priority Freight (depending on the size of the shipment). Vendors cannot select their own carrier when shipping prepaid airfreight into Mexico because of the following reasons: FedEx provides next day door-to-door service. Vendors may use freight forwarders to save money but the transit time can stretch into a week.

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For location 065, FedEx flies into Toluca. The freight is within a 1/2 hour of the plant. Almost all other carriers fly into Mexico City. The transit time from Mexico City to the plant is 3-4 hours. DCVC clears customs under a fiscal deposit provision. This means that DCVC pays no duty upon importation and the customs clearance process is highly specialized. Only a few brokers can clear customs on behalf of Loc. 065. FedEx has people onsite in Toluca who perform this process day in and day out. With other carriers, they need to identify a broker authorized by Loc. 065, physically hand over the documents/freight and then wait for clearance. This is a very time consuming process. FedEx provides up to the minute tracking. With unknown carriers, there may be no Internet tracking, no phone number and/or the information may not be current. If a vendor needs to ship air prepaid to Loc. 065, the vendor must still use FedEx. It is the fastest, most reliable way to expedite the freight into Loc. 065. Shipments from Canadian Origins to U.S. Manufacturing Plants Customs Invoice Requirements for Canadian Vendors Shipping to the United States: Please refer to the customs portion of this guide (section 10) or contact the International Trade Compliance office at DTNA.

Figure 21: Custom Clearance Requirements for Canadian Vendors Shipping Into the U.S.

In addition, one copy of a properly completed Customs Invoice must be stapled to the bill of lading or airbill handed to the driver. One copy must also be included in a separate pouch attached to the freight. A $100 customs document preparation fee will be debited for inaccurate, improperly completed, or missing customs invoices in addition to attendance at a customs documentation seminar.

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INVOICE FOR U.S. CUSTOMS

CUSTOMER REFERENCE NUMBER

Page # of #

Enter Bill of Lading or SID Number EXPORTER / SELLER (name and address)

PRODUCER OF GOODS (if different than exporter)

SHIPPER INFORMATION

CONSIGNEE / SHIPPED TO (name and address)

BUYER (if different than consignee) DAIMLER TRUCKS NORTH AMERICA LLC 4747 NORTH CHANNEL AVE.

DAIMLER PLANT DELIVERYADDRESS

PORTLAND, OR 97208-3820

I.R.S. NUMBER (MANDATORY) 93-0790608

I.R.S. NUMBER (MANDATORY) 93-0790608

PARTIES TO THIS TRANSACTION ARE:

INVOICE DATE:

DATE OF SALE:

INVOICE #:

DISOUNTS:

RELATED NOT RELATED

COUNTRY OF FINAL DESTINATION (if other than United States)

CURRENCY OF SALE: U.S.

CANADIAN OTHER

MARKS AND NUMBERS NUMBER OF PACKAGES

NO. AND KIND OF PKGS

FREIGHT AMT INCL.

SHIPPING WEIGHT

SKIDS, BOXES, ETC.

FREIGHT AMT TO BORDER

YES / NO

NONE

SHOW LBS. COUNTRY OF ORIGIN

DTNA PART NUMBER, DESCRIPTION, & PURCHASE ORDER NUMBER

INVOICE UNIT QTY

UNIT PRICE

INVOICE TOTAL

OF GOODS

PART DESCRIPTION INCLUDING DAIMLER PART # MUST SHOW FOR EACH PART LISTED

NUMBER OF PACKAG ES

AND PURCHASE ORDER # AFFILIATED WITH EACH PART

. SAMPLE DOCUMENT

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XXXXXXX XXXXXXX

.

66

Staple one (1) copy to the Bill of Lading Place one (1) copy in a separate envelope or pouch on the freight. Mail, Email, or Fax one (1) copy to the Customs Broker – DHL Global Forwarding

COMMERCIAL INVOICE MUST MEET ALL THESE REQUIREMENTS. ONLY USE CUSTOMS INVOICE IF COMMERCIAL INVOICE IS UNAVAILABLE AT TIME OF DELIVERY.

CUSTOMS BROKER:

ABOVE PRICES INCLUDE: DUTY

BROKERAGE

FREIGHT

DHL GLOBAL FORWARDING

PRINT SELLER CONTACT NAME

ENTER CONTACT PHONE NUMBER

ENTER BILL OF LADING, SID, PACKING SHIP, PURCHASE ORDER, ETC.

SIGNATURE OF EXPORTER / SELLER

REFERENCE NUMBER(S) OF EXPORTER / SELLER

Figure 22: Sample U.S. Customs Invoice form

Incoterms for Mexico Suppliers Shipping to US Plants and PDC’s For Mexico suppliers shipping to US Truck Plants and PDC’s the terms will be Free Carrier (FCA), with the supplier being the designated exporter from Mexico. The Mexico Supplier must clear Mexico customs when exporting from Mexico and DTNA prefers that supplier use DTNA’s preferred broker. Non-NAFTA Suppliers Suppliers from outside NAFTA will still have their routings available on Supplier Online. Significantly longer lead times will be needed for ocean freight and additional customs requirements may be needed.

Insurance Daimler Trucks North America is self-insured. Do not declare values for insurance because it results in duplicate insurance premiums.

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Hazardous Material Shipments of hazardous materials must be communicated in advance to the DTNA Traffic Dept. Suppliers will follow Haz Mat transportation rules as published by US DOT.

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9.0 Accounts Payable The supplier’s invoice should incorporate the exact information on DTNA’s Purchase Contract. For ERS (Evaluated Receipts Settlement) transactions, the price should be agreed upon prior to shipment. For all other invoices, DTNA’s standard method of invoice receipt is via EDI (Electronic Data Interchange). See Section 5.5 for EDI information.

9.1 Evaluated Receipts Settlement (ERS) ERS (Evaluated Receipts Settlement) is a common practice in the automotive industry whereby the purchaser authorizes payment to supplier based on Goods Receipt - without any invoice from supplier. This requires upfront agreement between purchaser (DTNA) and supplier and full product pricing synchronization between purchaser and supplier is critical. DTNA will begin migrating suppliers to ERS in 2011. Suppliers, who meet rigorous certification requirements, may suppress the creation of invoices and instead receive payment from DTNA based on Goods Receipt. The reference on the payment advice will be the Shipment ID (SID). If shipments cross an international border, customs invoices will still be required to accompany the shipment.

9.2 Payment Terms Payment terms are stipulated in the Purchase Contract. Standard payment terms for inventory purchases are migrating from Net 30th Prox (meaning parts invoiced in the current month are paid by the 30th of the following month) to Net 45 Days. Standard payment terms for other Non-Production Materials (NPM) purchases, such as Tooling, are Net 45 days. Payments will generally be made each Wednesday for invoices due through the following Saturday.

9.3 Banking Instructions DTNA’s standard payment method is EFT. To sign up to receive payment via EFT or make any changes to the banking information, the supplier must contact the master records coordinator at: [email protected]. For security purposes, a form will need to be completed prior to the actual change. Remittance advice to support an EFT payment can be either automatically faxed or e-mailed, as specified by the supplier. Alternatively, an EDI 820 transaction can be provided.

9.4 Invoice Details Multiple Invoice documents per SID are not permitted and may result in payment delay. The relationship between invoice and SID must always be one to one, which means only one Invoice per SID and only one SID per Invoice. The invoice must include the exact number of line items as the SID and it may reference multiple PO’s. One invoice may reference multiple PO/Line #’s (See Import Compliance Section 10 for Customs

Invoice Requirements). SID

Invoice

PO #A

Line Item #X

Shipment ID #

Invoice #

PO #A

Line Item #Y

PO #A

Line Item #Z

SID

Invoice

PO #A

Line Item #X

Shipment ID #

Invoice #

PO #A

Line Item #Y

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PO #A

Line Item #Z

For purchases not subject to ERS, invoices should be sent via EDI (Electronic Data Interchange) 810 as described in Section 5. Only extremely low volume of paper invoices may be sent to: Daimler Trucks North America Attn: Accounts Payable PO Box 5800 Troy, MI 48007-5800 Invoices, whether electronic or paper, must include the following: 1. Invoice number and invoice date  only one invoice per SID 2. Shipment ID (SID) – must match exactly to SID on ASN / packing list  only one SID per invoice 3. Name and address of the supplier and the buyer 4. Ship-to location (plant # / street address – including correct zip code) 5. FOB ship-from location 6. Purchase Order (PO) number and PO Line number a. Part / Material number – matching the material on the PO b. Quantity, Unit of Measure, Unit Price, Extended Amount, Currency 7. Total amount of invoice and any allowed discounts 8. Other charges, if applicable, must be stated separately on the invoice a. Core charges b. Freight c. Taxes Freight should be billed in accordance with routing instructions. See Section 8 – Logistics.

9.5 Debit Memos Suppliers may receive debit memos from DTNA for various reasons such as: • Invoice Price exceeds DTNA PO price • Goods Receipt Quantity less than Invoice Quantity • Routing instructions not followed, resulting in higher freight costs • Packaging instructions not adhered to, resulting in excess handling or damaged goods • Warranty claims (see Section 11 - Warranty) Debit memos are posted to supplier’s account, auto-faxed to supplier, and immediately deducted from payment. Debit memos contain specific information describing the discrepancy and what steps to follow if there are subsequent questions.

9.6 Disputes Disputes after payment should be directed as advised on Debit Memos, with pricing questions directed to the purchasing department and quantity discrepancies directed to the receiving location. The Accounts Payable analyst can assist in identifying appropriate contacts but generally will not be able to resolve these issues without the involvement of others. 9.7 Supplier WebPortal In 2010, DTNA will launch a supplier webportal that will allow our suppliers to look up invoice processing status, download ERS settlement reports, obtain copies of debit memos and copies of remittance advices. The site will also allow a supplier to log a dispute. Suppliers should receive direct communication regarding this application. Or, for more information, an e-mail may be sent to: [email protected]

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10.0 U.S. Import Compliance This Shipper’s Guide to U.S. Customs Compliance serves as a general reference for the U.S. Customs procedures to be followed during the development, manufacture, purchase, shipment, reception, storage and withdrawal for sale in North America of products by Daimler Trucks North America LLC (DTNA). This Guide is an educational tool. It includes general procedures and is intended to give all personnel who are responsible for Customs-related functions, a clear understanding of how their responsibilities contribute to DTNA’s compliance with customs laws, regulations and policies. It is our intention to communicate our requirements and expectations to our suppliers, our dealers, our parts distribution centers, our manufacturing plants, and any other entity that could be considered a shipper of cargo for which DTNA is ultimately responsible. As an importer of merchandise, DTNA is aware of the need to establish a strong compliance posture in its relationship with U.S. Customs & Border Protection. DTNA’s internally designed and managed Customs Compliance program is aimed at meeting the goals set forth in the Customs Modernization Act, which promotes a partnership between the importing community and United States Customs & Border Protection. DTNA is the “importer of record” for all DTNA goods. All import compliance concerns are managed through the Daimler International Trade Compliance Department. This Guide documents DTNA’s internal operating procedures with respect to the importation of goods produced abroad. It is not intended to operate as a substitute for the ongoing decisions or directives of management. Questions with regard to any issue relating to international trade compliance should be referred to the Senior Manager - International Trade Compliance, or designee, who is tasked with the primary responsibility for interacting with United States Customs & Border Protection on behalf of the company. Following is the Supplier’s Guide Table of Contents. Detailed information on each topic can be found at: https://daimler.portal.covisint.com/c/document_library/get_file?uuid=31229b39-6c25-4008-a625cb66416cf5cc&groupId=124701

Supplier’s Guide Table of Contents SECTION1.000 BASIC INFORMATION 01.100 Which Products Does This Document Apply To? 01.101 Definitions 01.101.1 Importer of Record 01.101.2 Shipper 01.101.3 The Seller 01.101.4 Country of Origin 01.101.5 Consignee 01.101.6 Buyer/Purchaser 01.101.7 Daimler Trucks North America LLC Trade Compliance 01.200 COMMODITIES COVERED BY THESE PROCEDURES 01.201 Shipment types that are covered 01.202 Customs Clearance of DTNA Goods 01.300 DOCUMENTATION 01.301 Customs and Shipping Documents 01.302 Mailing Address For Documents to DTNA’s authorized U.S. Broker SECTION 02.000 SHIPPING DOCUMENTS AND INSTRUCTIONS 02.100 DOCUMENTATION REQUIRED FOR SHIPMENT 02.101 Customs Invoice

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02.102 Packing List 02.103 Air Waybill 02.104 Ocean Bill Of Lading 02.105 Truck Bill Of Lading 02.106 Free Trade Agreement Country of Origin Certificate, Buy America Certification and Manufacturer’s Affidavit of Origin 02.107 Importer Security Filing “10+2” Program Overview 02.108 Importer Security Filing “10+2” Responsibilities 02.200 SENDING THE DOCUMENTS 02.201 Air 02.202 Ocean 02.203 Truck 02.204 Corrections To Documents After Shipment 02.205 Missing Or Incorrect Documents SECTION 03.000 SHIPMENT OF GOODS 03.100 FREIGHT FORWARDER 03.101 Forwarder Identification 03.102 Third Party Billing 03.103 Customs Brokerage 03.104 Hazardous Articles 03.200 PACKAGING SPECIFICATIONS 03.300 Marking and Identification 03.301 Bill of Lading 03.302 Country of Origin 03.303 Packing List SECTION 04.000 VALUATION OF GOODS 04.100 VALUATION INSTRUCTIONS 04.101 "No Charge" Items Must Include 04.102 Currency Used For Billing 04.103 Supplemental Payments on Commercial Invoice SECTION 05.000 SPECIAL REQUIREMENTS 05.100 SPECIAL DOCUMENTS 05.101 Returned American Goods 05.102 Returned American Goods Not Advanced In Value or Improved In Condition While Abroad 05.103 Returned American Or Non-American Goods After Temporary Use 05.104 Articles Returned After Repairs Or Alterations 05.105 Manufacturer’s Affidavit of Origin 05.106 Certificates Of Origin 05.107 Temporary Importations under Bond into the U.S.A. (TIB) 05.108 Hazardous Materials Certificate 05.109 Toxic Substance Control Act (TSCA) 05.110 Environmental Protection Agency 05.111 Foods and Drug Administration (FDA) 05.112 Federal Communications Commission (FCC) 05.113 Consumer Products Safety Commission (CPSC) 05.114 Department of Transportation – Importation of Motor Vehicles and Motor Vehicle Equipment Subject to Federal Motor Vehicle Safety, Bumper And Theft Prevention Standards (DOT) 05.115 Anti-Dumping/Countervailing Duty (ADD/CVD) SECTION 06.000 SUPPLY CHAIN SECURITY 06.100 Customs Trade Partnership Against Terrorism (C-TPAT) Program 06.101 Overview of C-TPAT Program 06.102 General C-TPAT Program Security Criteria

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06.103 DTNA Participation in C-TPAT Program 06.104 Security Procedure, Point of Origin 06.105 Security Procedure, Participation/Certification in Foreign Customs Administration Supply Chain Security Programs 06.106 Security Procedure, Other Internal Criteria for Selection 06.107 Container Security, General 06.108 Container Security, Container Inspection 06.109 Container Security, Container Seals 06.110 Container Security, Container Storage 06.111 Physical Access Controls, Employees 06.112 Physical Access Controls, Employees 06.113 Physical Access Controls, Deliveries (including mail) 06.114 Physical Access Controls, Challenging and Removing Unauthorized Persons 06.115 Personnel Security, Pre-Employment Verification 06.116 Personnel Security, Background Checks / Investigations 06.117 Personnel Security, Personnel Termination Procedures 06.118 Personnel Security, Documentation Processing 06.119 Procedural Security, Manifesting Procedures 06.120 Procedural Security, Shipping & Receiving 06.121 Procedural Security, Cargo Discrepancies 06.122 Security Training and Threat Awareness

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11.0 Warranty 11.1 Introduction The DTNA warranty process is designed to improve overall brand quality. Active supplier participation in the process ensures the timely resolution of quality issues and increases both customer and dealer satisfaction.

11.2 Warranty Agreement Suppliers are required to have a signed warranty agreement with DTNA. A copy of the standard warranty agreement is included in Section 11.7.

11.3. Warranty Process 11.3.1 Dealer Claim Submittal The warranty process begins when a customer takes their vehicle to a DTNA dealer for a repair. An authorized DTNA dealer checks to see if the vehicle has warranty coverage, performs a repair, and submits the warranty claim using a web-based warranty system called QuickClaim. The QuickClaim system has up-front filters that will only allow a claim to be submitted if the vehicle has warranty coverage for the repair performed. Coverage depends on the make and model of the vehicle, and goes into effect on the vehicle’s in-service date. The date and mileage at the time of the failure must fall within the time and mileage parameters of the coverage for the claim to be accepted.

11.3.2 Claim Processing Warranty claims are processed manually by the warranty processing group or automatically by the warranty mainframe system. Warranty claims containing parts and labor that meet the criteria for auto processing are accepted into the warranty system and submitted to the supplier. Warranty claims that do not meet the system requirements are processed manually. The manually processed claims are reviewed by a claim processor to validate that the parts and labor included in the claim are correct. A claim can be accepted, denied, or adjusted during the manual process. Dealers are paid for the claim once it has been accepted by processing.

11.3.3 Supplier Response Warranty claims are downloaded into an Excel file and emailed weekly to the supplier. The email includes a “new claims” file and an “open claims” file. The “new claims” file contains all of the new claims that were approved by processing the previous week. The open claims file contains all of the claims that are open to the supplier. Claims are left open to the supplier until a vendor recovery analyst closes the claims based on the response from the supplier. The DTNA warranty recovery department requires timely responses within the time frames outlined by the warranty agreement which are 30 days for claims with no part return and 45 days from the final ship date when parts are being returned for analysis. Claims not responded to within these timelines are subject to debit.

11.3.4 Warranty Recovery Suppliers send claim responses to the warranty recovery department. The warranty recovery analyst reviews the response from the supplier and adjudicates the claims accordingly. Claims that are paid in full by the supplier are closed using a supplier credit memo number or a DTNA generated debit number. Claims that are denied, or short paid by the supplier, will be reviewed by the warranty recovery analyst. The warranty recovery analyst will work with the supplier to come to an agreed upon resolution for supplier rejected claims.

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11.4 Failed Parts Return The default part disposition is set for "Scrap." Suppliers are encouraged to work with DTNA on behalf of the end-customers to reduce failed part returns as much as possible. Reduction in part returns is achieved by responding to warranty claims based on the claim’s failure description, whenever possible, or setting up a sampling, or percentage request for returns. Suppliers requesting parts to be returned are responsible for all freight cost associated with returning the part, regardless of the warrantability of the part.

11.4.1 Scrap Claims Warranty claims that do not require the dealer to return the failed part are called scrap claims. Scrap claims require a valid response from the supplier within 30 days of the “submit to supplier” date. The warrantability of the claim is determined by the dealer’s explanation of the failure in the warranty claim story.

11.4.2 Return Claims Warranty claims that require the dealer to return the failed part are called return claims. Return claims require a valid response from the supplier within 45 days of the “ship to supplier” date. The ship to supplier date begins when the tracking information for the failed part is entered into the QuickClaim system by the dealer. Post inspection part disposition must be performed in accordance with the "Warranty Tag" procedures outlined in the warranty agreement. Dealers have the option to request the return of failed parts that have been determined to be non-warrantable. Dealers make this request by marking a return parts checkbox on the warranty tag included with the failed parts. If the dealer does not check the return part check box, the supplier must retain a copy of the unmarked warranty tag for one year.

11.5 Warranty Certification Program The Warranty Certification Program is a program that rewards dealers for warranty excellence. Dealers can achieve the status of bronze, silver, or gold. The benefits to dealers are based on a certification level that is reassessed and adjusted quarterly. One of the benefits for dealers who participate in the program is that dealers certified at the silver and gold levels do not have to return parts to the suppliers who have agreed to participate in the program. The benefits to suppliers who participate in the program are an improved Masters of Quality Rating and a reduction in freight, inspection, administrative, and material management costs.

11.6 Warranty Rating Criteria For the warranty ratings criteria and detailed descriptions, please refer to the “Masters of Quality” section of the Supplier Quality Manual located at https://daimler.portal.covisint.com/c/document_library/get_file?folderId=128435&name=DLFE107228.pdf.

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11.7 Warranty Agreement (Example form)

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Figure 23: Warranty Agreement Example Form

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12.0 Customer Support/Aftermarket 12.1 Purchasing Please find detailed information on Aftermarket purchasing in section 2.0 of this guide.

12.2 Delivery and Availability DTNA and its suppliers must always put the customer first. We respect the mutual relationship shared with our dealers, fleets and vehicle owners; therefore it is imperative that suppliers fulfill our orders as placed. It is the responsibility of the suppliers to accurately manage and provide ordered materials. DTNA expects ontime delivery with flexibility to meet the fluctuating demand of our customers and expects suppliers to be proactive in managing inventories and supplying material in a timely and accurate manner. The Customer Support Excellence Team requires the cooperation of all suppliers in complying with the following: A. Parts Distribution Center (PDC) planning requirements information to include US and Canadian lead times, supplier ship-from location(s), order placement location(s) and contact(s). B. Lead times that are consistent with the movement volume of the part, i.e. 7 to 14 days for fastest moving items, 14 to 28 days for medium moving items, 28 to 30 days for slowest moving items and stocking of non-stock items with immediate shipment. C. Consistent shipping performance to meet PDC lead times, with order shipment in accordance with supplier’s projected ship date at least 95% of the time and past due shipments no to exceed a 2X multiple of the part lead time or 30 days, whichever is less. D. Consolidated shipments to each PDC made once per week. When possible, expedite requests from DTNA should include all other lines due that week for shipment, but exceptions will exist when DTNA expedites one line for air freight, or by other expedited carriers. Deviation from this requirement will result in a charge back for additional freight incurred. Vehicle Off Road (critical) shipments are an exception to this guideline. E. DTNA will notify supplier of receiving part number and quantity discrepancies at the time they are realized. It is the supplier’s responsibility to reconcile the discrepancy within one business day. F. Ability to move out PO line due date without penalty. This can occur when our customer demand drops below anticipated levels. (In this situation, DTNA does not want to cancel and place a new order at lead time.) G. Flexible order requirements to allow for no minimum PDC purchase order restrictions (per part number, per purchase order). H. Obsolescence protection for all-makes parts. DTNA to be notified of the decision to make a part obsolete and to be given a 12-monh window in which to recall and return the entire obsolete product free of penalty and without impacting return allowance. I. DTNA specific inventory return agreements must be established. These should be based on annual purchase volumes and should be consistent with agreement offered by DTNA to its customers: a. At least 8% allowance of previous year’s purchases b. Handling charge not to exceed 10% J. Provide field inspection of perishable return items with approval to return if not damaged. K. Provide field representation to each PDC to resolve product return request issues. L. Provide marketing program exit strategies.

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M. Provide marketing program exit strategies. When new programs are introduced through DTNA Sales and Marketing, there must be an upfront program that will allow for return of unsold product at no penalty. This will include an exit strategy to cover the full supply chain, including the dealer level if necessary. N. Identify service parts breakdowns and repair kits for component and assembly type parts. To include source, cost, proprietary aspects, weight, dimensions and other part attributes for each service part. O. Regular and advanced notification on all product changes and procedures. Changes in form, fit, or function require a change in part number. a. Modifications to DTNA-owned tooling require prior approval by DTNA tooling group. Backwards compatibility is of primary concern. DTNA-owned tooling will be tracked and records will be available for review at any time. P. Provide recommended stocking levels for dealer distribution network. Q. Vehicle Off Road (VOR) support to include critical order process procedures, VOR premium charge definition, 24 hour / 7 days a week product support, ship direct capability to DTNA dealers (U.S. & Canada) within 72 hours, and notification of status of order shipment within 24 hours. R. Suppliers are expected to have full and accurate EDI capability, including the following EDI transactions: Purchase Order Change Control Loop 850 – Purchase Order; for PDC Stock and Direct Ship order types (upon verification by supplier, DTNA can also transmit PDC Emergency Orders via EDI). 855 – Purchase Order Acknowledgement; used by Supplier to acknowledge acceptance or rejection of a DTNA purchase order at the line item level. Can also be used by supplier to transmit requested revisions to the purchase order line items (e.g. quantity, acknowledge ship dates, etc). 860 – Purchase Order Change Request (New); used by DTNA to confirm acceptance of a purchase order change initiated by the supplier, or a change made by mutual agreement of the two parties. It can also be used by DTNA to request a change to a previously submitted purchase order. 865 – Purchase Order Change Request Acknowledgement* (New); used to acknowledge the receipt of a DTNA Purchase Order Change Request. It is used by the supplier to confirm acceptance or rejection of a purchase order change initiated by a Purchase Order Change Request. It can also be used by the supplier to transmit requested revisions to the purchase order line items. *The 865 – PO Change Request Acknowledgement is being rolled out separately from the PO Acknowledgement and PO Change Request. Receiving 856 – Advanced Ship Notice; used by the supplier to relay the content of the shipment, packaging details, marking, physical characteristics, and carrier information. 861 – Receiving Advice; used to convey receiving errors noted on PDC Shipments; e.g., line item overages and shortages. Forecasting 830 – Planning Advice (New); provides the supplier with DTNA forecasting information. S. Provide weight and package dimensions of individual parts prior to receipt of inventory at DTNA PDCs. T. Provide Material Safety Data sheets for all hazardous materials. U. Provide country of origin for all parts.

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V. Information for field support, such as special tools, dies, templates, assembly instructions, etc. W. Suppliers will be held responsible for expediting charges should orders be past due. A response to customer service inquiries such as expediting or receiving issues is required within 24 hours. X. Any emergency drop ship order must receive a waiver of part quantity and dollar minimum, have a ship date within 24 hours and be shipped within 72 hours. Y. Variance beyond these levels will result in a charge back to cover added handling cost incurred and compensation for lost sales.

12.3 Aftermarket Parts Packaging, Shipping and Documentation Suppliers are responsible for unit packaging and labeling aftermarket parts so that they arrive, at Daimler Trucks North America's Parts Distribution Centers and/or the point-of-use, in damage free condition, with appropriate documentation. In addition, packaging must be economical with minimum impact on the environment and labeling must be in accordance with industry standards. Compliance with aftermarket packaging requirements as outlined in the “Daimler Trucks North America – Packaging & Labeling Requirements for Aftermarket Parts” guide. Bar coding capability is required. A link to the packaging guidelines is provided here:

https://daimler.portal.covisint.com/web/freightliner/downloads/-/journal_content/ Suppliers are to adhere to DTNA’s traffic routing instructions, using the carriers and guidelines provided by the DTNA Traffic Department.

12.4 Marketing Programs Supplier is to provide promotional merchandising and marketing programs to strengthen Customer Support distribution and address end user needs including but not limited to financial participation in price discounts, incentives, training and cooperative funding of marketing programs. Supplier is to support Parts Marketing with market pricing intelligence to assist in profit and price competitiveness for DTNA and dealers. DTNA expects that supplier provides a dedicated account representative with authority to address Customer Support requirements throughout North America. Supplier must give advance notification of all new product development and/or changes in the marketplace.

12.5 Sales Support DTNA requests supplier support via a field organization that is dedicated to the Aftermarket distribution (OE dealers). Supplier is required to provide continuous product/sales support to DTNA dealers to assure competitive position in the marketplace. Onsite dealer training and end-user seminars will further improve the knowledge and customer service capabilities.

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12.6 Technical Support DTNA expects suppliers to bring new technology, both product and process, to DTNA in order to ensure DTNA’s continued competitive position in the market place. DTNA Parts Technical & Support department requires that suppliers provide detailed service part breakdowns including adequate documentation such as pictorially accurate exploded views (preferred) or line art, matched with service part numbers. A technical service hot-line as well as dedicated technical contact(s) is needed to resolve customer inquiries and/or problems.

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