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Supplier Compliance Guidelines
Supplier Training
• Currently, Lear uses a network of cross-docks to
optimize inbound freight for its seating plants in North
America.
• The network consists of five facilities:
1) Romulus, MI
2) Indianapolis, IN
3) El Paso, TX
4) Laredo, TX
5) San Luis Potosi, Mexico:
(Launched June 2013)
Current Cross-dock Network
• Electrical Power Management Systems (EPMS) will be
joining the seating cross-dock network in 2013
• Supplier compliance is crucial to success
• Consequences of non-compliance:
– Quality Notices (QN’s)
• require submission of appropriate root cause analysis and
corrective/preventive action
– Debits for associated costs and losses
– Downgrade on supplier scorecard
EPMS Integration
Current vs Improved Network Operations
Current Process
• Routing orders rec’d only
when there is a change.
• Current cross docks with
Central Transport
• Unmanaged pick-up
windows and ship days
• One bill of lading per
plant destination
Improved Process
• Routing orders will be
received weekly
• New cross docks with
Linc
• Managed pick-up
windows and ship days
• Combined bill of lading
per shipment
1. AIAG standard bar code labeling
2. Pallet stack-ability/standardized component packaging
3. Electronic Advanced Shipping Notice (ASN) : EDI-856
4. Packing Lists, Bills of Lading, Commercial Invoices and
Customs Paperwork
5. Supplier Routing / Packaging
Supplier Compliance Requirements
• AIAG bar code labels are required for every part
– Must conform to samples below, and contain all information
– Part number, quantity, and serial number are required for scanning
– Box labels and master skid labels are required
– Final Lear destination must be clearly identified
• Label Examples:
1. Bar Code Labeling - AIAG
Sample box label Sample master label
• Mixed load label shall be used to identify multiple parts
on one pallet shipping to a single plant
• For a pallet with mixed parts, a Master Label is required
for each part
• Master Labels shall be placed on one side of the pallet
where they can be easily scanned
1. Bar Code Labeling – AIAG (cont’d)
1. Bar Code Labeling – AIAG (cont’d)
1) Individual Master Labels 2) Mixed Label 3) Container/Box Label 4) Packing Slip
Example - label locations on a pallet:
*Each label should be easily accessible for scanning
4
• Supplier ship-from location and final Lear destination are
required in human readable fields
• Additional details can be accessed at www.lear.com
(click on Supplier Information > Web Guides > Logistics
Requirements for Suppliers > Supplier Packaging
Requirements & Guidelines)
• AIAG training courses can be found at www.aiag.org
(select Training)
1. Bar Code Labeling – AIAG (cont’d)
• Pallets must be stackable up to a height of 102” and
individual pallets cannot exceed 51” high.
• Pyramiding, box overhanging, brick stacking and center
column stacking are unacceptable
• All pallets must be shrink-wrapped or banded (min of 2
bands in each direction)
• Pallets over 2,000 pounds must be banded using non-
metal banding
2. Packaging and Palletizing Requirements
2. Packaging and Palletizing - Examples
2. Packaging and Palletizing - Examples
Bad: Pallet height too high (tower loaded)
2. Packaging and Palletizing - Examples
Good: Load dimensions = 47” x 45” x 50”
2. Packaging and Palletizing - Examples
Bad: Excess headspace in carton
*Excess headspace is inefficient leading to crushed boxes and damaged goods
2. Packaging and Palletizing - Examples
Good: Carton filled to capacity
2. Packaging Videos
What happens when you don’t
comply with packaging
requirements
How to properly package
• Palletize in level layers to maximize stackability
• It is imperative that material for each Lear final
destination is palletized separately
• Cross-docks will not break down and reconfigure pallets
2. Packaging and Palletizing - Shipping
• ASNs must be sent out within 20 minutes of shipment
departure
• ASNs must be electronically sent to Lear’s final
destination.
• Each Lear part and quantity shipped requires an ASN
for each plant.
• MX02MO37 - Monarca - 160 (Cd Juarez, Mexico)
• MX02AZ79 - Planta Juarez - 164 (Cd. Juarez, Mexico)
• MX02TR48 - Planta Torres – TR48 (Cd. Juarez, Mexico)
• MX02NOV2 – Nova - 169 (Chihuahua, Mexico)
• MX02SI65 - Sicomoro/Americas - 163 (Chihuahua, Mexico)
• HN02NC72 – Naco - 213 (Honduras)
• HN02HEHE - HEDS-214 (Daws-Honduras)
• PH02GM71 – Cebu - 224 (Philippinnes)
• PH02GM71 – Gabriela - 271 (Philippines)
3. Electronic ASN – EDI 856
Plant Code / Name / Location
ASN required elements:
1. Part Number
2. Quantity
3. Trailer Number
4. Time & Date Shipped
5. Packing List Number
6. Lear Plant Destination
7. Shipment Gross Weight
3. Electronic ASN – EDI 856
To find instructions for sending ASNs (EDI 856):
1. Visit www.lear.com
2. Click Supplier Information
3. Select Lear EDI Guidelines from the left menu
4. Select your region
5. Select your plant
6. Click the Dispatch Advice Guidelines file to access the
detailed information
3. ASN – Submission Guidelines
• The following documents are required to be sent to each final
Lear destination:
• All documents must be printed (hand-written is not accepted)
• Drivers must be provided each document to present at cross-dock
• Commercial invoice / Packing list must be completed timely & accurately,
and sent separately for each final Lear destination (a separate, exclusive
document for each destination)
4. Required Shipping Documents
Packing list: (must match the ASN and must include the correct gross weight, must include Lear Plant, & must be attached to pallet in a packet)
Bill of lading (Current process): (must be separate for each final location)
Commercial invoice: International Shipments Only
(e.g. Brazil, Honduras, Argentina and Cebu)
Bill of lading (New Process): (must be one BOL for the entire
shipment including all final locations)
Single Plant BOL – Current Process
Commercial Invoice - Example
Invoice Number Invoice Date
Shipper Name and Address Sold to Party (if different than consignee)
Ship to (Consignee Name and Address) Notify Party Name and Address
Mode of Transport (air, ocean, truck) Transport Company Name
Customs Broker at (if known) Freight Terms (collect or prepaid)
Terms of (FOB, CIF, Ex-Works, Consignment,
Inter-Company Transfer, etc.)
Currency of
Description of Articles Quantity Unit Price Extended Price
Country of Origin of Article: (Mandatory)
TOTALS
Signature of Shipper Phone Number of Shipper
• The Bill of Lading must contain the following:
Description of Goods per Package
Type of Package: Box or Pallet
Dimension of the Package: L x W x H
Unit of Measure: Meters or Inches
Net Weight and Gross Weight
Unit of Measure: Kilograms or Pound
• BOL’s must also contain the Final Destination (Lear Plant)
as well as the cross-dock address in the consigned area
Examples: Correct consignee : Incorrect consignee:
Lear NACO – 213 Central Transport
c/o Central Transport 921 Beiger St.
921 Beiger St. Mishawaka, IN 46544
Mishawaka, IN 46544 USA
USA
4. Required Shipping Documents – BOL’s
The packing list must always refer to the related
commercial invoice (if applicable) & must include:
Lear Part Number
Description of Goods per Package
Type of Package: Box or Pallet
Dimension of the Package: L x W x H
Unit of Measure: Meters or Inches
Net Weight and Gross Weight
Unit of Measure: Kilograms or Pound
4. Required Shipping Documents – Packing List
• Packing list(s) must be consolidated per load, per
plant
• Global Logistics’ supplier routing instructions must be followed
– Instructions identify standard carrier, shipment day, shipment mode, detailed shipping requirements, etc.
– Upon receipt, instructions must be reviewed, signed, and returned
– If necessary, contact respective Lear plant for expedited shipping instructions (Premium Transportation Authorization # required)
• Contact information:
1. Ryder
– Kevin Robbins ([email protected] / 915-892-2239)
– Francisco Rodriguez ([email protected]) / 011-52 (81) 1157 0403
2. Lear Transportation Operations
– Luis Perez ([email protected] / 915-787-7679)
– Ruben Lazo ([email protected] / 915-787-7752)
3. Lear Global Logistics
– Cheri Goodman ([email protected] / 248-447-1333)
5. Supplier Compliance / Routing Info
5. Current Supplier Routing Instructions - Example
Supplier Shipping Point Destination Point
Mode of Transportation
Must be signed & returned
Supplier specific Ship day
Shipping Requirements
5. New Supplier Routing Instructions - Example
Supplier Shipping Point
Destination Point
Mode of Transportation
Supplier specific Ship day
Shipping Requirements
Must be signed & returned
• Additional costs generated by missed ship-days or
window times will be suppliers’ responsibility
• Additional costs generated by the use of incorrect
transportation mode will be suppliers’ responsibility
• Routing instructions may change as a result of the
EPMS integration into the Seating Division network.
5. Supplier Routing - Additional Info
• Download Lear Supplier Packaging Requirements and Form2100 (Unit
Load Data Sheet) @ www.lear.com
• Ensure expendable / returnable containers meet Lear packaging
requirements (failure to do so will result in rejection of packaging designs)
– Lear plants require an approved, standard packaging footprint for all parts
– All packaging must protect the quality of the part, optimize transportation, and optimize
cost-per-piece
• Unit Load Data Sheet (ULDS) approval process:
– Send to Corporate Packaging Engineer for approval
• send email to [email protected]
• Matt Siakel @ [email protected] / 248-447-5826
5. Supplier Packaging Requirements
• Prior to first shipment it is imperative to contact Lear to verify the following:
Lear Designated Transportation Carrier & Customs Broker (if applicable)
Confirm supplier routing instructions
Documentation / EDI
Confirm bill of Lading requirements
Confirm commercial invoice details
Confirm ASN and delivery window requirements
Confirm overall EDI requirements / connections
Packaging
Confirm approved packaging design(s) & density(ies)
Confirm minimum order quantity(ies) – level pallet layers preferred
Additional Recommendations
• Your cooperation and compliance are crucial for a
smooth integration
• Compliance is essential to both Lear and its suppliers.
Failure to comply will result in QN’s and may result in significant costs and losses
Closing Thoughts
1. Primary contact: Anthony Salter – [email protected] / 248-447-1517 - (Until 8/21/13) Carlos Ramos – [email protected] / 915-307-9237
2. Secondary contacts: Joe Duran – [email protected] / 915-307-9236 Cheri Goodman – [email protected] / 248-447-1333
