Supply Chain Management TOPICS: • Introduction • Supplier Expectations • Points of Contact • Supplier Quality System Audit Process INTRODUCTION VISION To be recognized as a leader in the transportation industry where customers want to do business and be a company where people want to work, leading to company growth and employee satisfaction. OPERATING POLICY General Products strives to consistently create and produce innovative supply solutions for complex and precision machined components with ease, speed and integrity, while providing exceptional value to our stakeholders and challenging ourselves to learn and grow. PROCUREMENT CODE OF ETHICS General Product’s employees are committed to following a published code of ethics. In the event that any questions should arise, we encourage suppliers to contact General Products Human Resource Department. SUPPLIER EXPECTATIONS General Supplier Expectations General Products works closely with suppliers to create a strong relationship to achieve joint business objectives. Suppliers must have a clear understanding of General Products’ requirements and be committed to the management of all related aspects of the business. It is critical that suppliers not only provide quality products on time, but also be an integral part of our business. Through teamwork and the joint development of product and processes, a flexible and responsive supply chain can be developed which will allow them to react to industry demands through continuous improvement. The key business segments utilized to manage supplier activities include cost, quality and delivery. Suppliers must be willing and capable of managing each of these elements. The following describes General Products’ expectations of our suppliers in each of these business segments. Logistics Expectations Suppliers are to provide the right material, in the right quantities, at the right time, in the right place, with the right packaging, utilizing the right carrier. Suppliers are to have in place the internal systems and processes to effectively execute 100% on-time delivery to General Products’ facilities. Quality Expectations Suppliers are to be in compliance with the QS9000 standard and deploy these principals within their organization and with their suppliers. They must also take total responsibility for the quality of their product to General Products and the cost associated with poor quality. Commercial Expectations Suppliers are to have a thorough understanding of General Products’ requirements and the effect their organization has on product cost. Our business relationship will be based on the supplier’s ability to manage cost, quality and delivery. Continuous cost improvements must be a key business objective in order to meet customer specific annual goals and objectives. Supplier Selection Process General Products utilizes a supplier rating system in the evaluation of suppliers. Each supplier is to conduct a self-assessment utilizing General Products Supplier Risk Assessment format. This self-assessment is to be returned to General Products for evaluation. A formal assessment will then be conducted by General Product’s personnel at the supplier’s manufacturing location. The results of the suppliers overall rating will determine if the supplier will be considered an approved supplier to General Products. POINTS OF CONTACT If you have questions concerning this manual or the General Products quality procedures, contact the General Products Purchasing Manager at: General Products Corporation 1411 Wohlert Street Angola, IN 46703 Phone: 260.665.8441 Fax: 260.665.6727 Purchasing/Material Manager Dale Freel Phone: 260.668.1474 Email: dfreel@general-products.com SUPPLIER QUALITY SYSTEM AUDIT PROCEDURE PURPOSE To define the suppliers’ responsibility for compliance to General Products quality system audit requirements. SCOPE This procedure applies to suppliers of production material, or services (painting, heat treating, plating or finishing) to any General Products Business Unit who do not have their quality system registered to ISO 9000/2000, ISO/TS 16949, ISO 9001/9002 or QS 9000. Certain suppliers may be exempt from an audit depending upon the nature and/or quantity of products and services provided. Suppliers who are unsure of their status may contact the General Products Purchasing department for clarification. PROCEDURE Suppliers who do not have quality system registration will be audited on an annual basis by a qualified auditor to the current version of the QS 9000 Quality Systems Assessment Manual (QSA). Length of the audit will follow the QS 9000 mandate requirements, as outlined in the QS 9000 Quality System Requirements Manual. Any audit deficiencies found will be reviewed with the supplier prior to the conclusion of the audit. Corrective action responses must be provided to the auditor for review/acceptance within 30 business days of the audit end date. REFERENCES Automotive Industry Action Group (AIAG) Quality Systems Assessment (QSA) Manual