Lear Corporation · NYSE:LEA
Lear — Investor Presentation (October 2013)
32 slides from Lear's investor presentation, October 2013
Slide 1: Supplier Compliance Guidelines
Supplier Compliance Guidelines Supplier Training
Slide 2: Current Cross-dock Network
Current Cross-dock Network • 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)
Slide 3: EPMS Integration
EPMS Integration • 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/preventiv
Slide 4: Current vs Improved Network Operations
Current vs Improved Network Operations Current Process Improved Process • Routing orders rec’d only • Routing orders will be when there is a change. received weekly • Current cross docks with • New cross docks with Central Transport Linc • Unmanaged pick-up • Managed pick-up windows and ship days wi
Slide 5: Supplier Compliance Requirements
Supplier Compliance Requirements 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
Slide 6: 1. Bar Code Labeling - AIAG
1. Bar Code Labeling - AIAG • 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 i
Slide 7: 1. Bar Code Labeling – AIAG (cont’d)
1. Bar Code Labeling – AIAG (cont’d) • 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 scann
Slide 8: 1. Bar Code Labeling – AIAG (cont’d)
1. Bar Code Labeling – AIAG (cont’d) Example - label locations on a pallet: 1) Individual Master Labels 2) Mixed Label 3) Container/Box Label 4) Packing Slip 4 *Each label should be easily accessible for scanning
Slide 9: 1. Bar Code Labeling – AIAG (cont’d)
1. Bar Code Labeling – AIAG (cont’d) • 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 Requirement
Slide 10: 2. Packaging and Palletizing Requirements
2. Packaging and Palletizing Requirements • 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
Slide 11: 2. Packaging and Palletizing - Examples
2. Packaging and Palletizing - Examples
Slide 12: 2. Packaging and Palletizing - Examples (Bad: tower loaded)
2. Packaging and Palletizing - Examples Bad: Pallet height too high (tower loaded)
Slide 13: 2. Packaging and Palletizing - Examples (Good load dimensions)
2. Packaging and Palletizing - Examples Good: Load dimensions = 47” x 45” x 50”
Slide 14: 2. Packaging and Palletizing - Examples (Excess headspace)
2. Packaging and Palletizing - Examples Bad: Excess headspace in carton *Excess headspace is inefficient leading to crushed boxes and damaged goods
Slide 15: 2. Packaging and Palletizing - Examples (Carton filled)
2. Packaging and Palletizing - Examples Good: Carton filled to capacity
Slide 16: 2. Packaging Videos
2. Packaging Videos What happens when you don’t How to properly package comply with packaging requirements
Slide 17: 2. Packaging and Palletizing - Shipping
2. Packaging and Palletizing - Shipping • 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
Slide 18: 3. Electronic ASN – EDI 856
3. Electronic ASN – EDI 856 • 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. Plant Code / Name / Location • MX02MO37 - Monarca - 160 (Cd Juarez, Mexico
Slide 19: 3. Electronic ASN – EDI 856
3. Electronic ASN – EDI 856 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
Slide 20: 3. ASN – Submission Guidelines
3. ASN – Submission Guidelines 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 informat
Slide 21: 4. Required Shipping Documents
4. Required Shipping Documents • The following documents are required to be sent to each final Lear destination: Packing list: Commercial invoice: (must match the ASN and must International Shipments Only include the correct gross weight, (e.g. Brazil, Honduras, Argentina must include Lear Plant
Slide 22: Single Plant BOL – Current Process
Single Plant BOL – Current Process
Slide 23: Commercial Invoice - Example
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 (co
Slide 24: 4. Required Shipping Documents – BOL’s
4. Required Shipping Documents – BOL’s • 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 •
Slide 25: 4. Required Shipping Documents – Packing List
4. Required Shipping Documents – Packing List • Packing list(s) must be consolidated per load, per plant 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 Dimen
Slide 26: 5. Supplier Compliance / Routing Info
5. Supplier Compliance / Routing Info • 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, con
Slide 27: 5. Current Supplier Routing Instructions - Example
5. Current Supplier Routing Instructions - Example Supplier Shipping Point Destination Point Supplier specific Ship day Mode of Transportation Shipping Requirements Must be signed & returned
Slide 28: 5. New Supplier Routing Instructions - Example
5. New Supplier Routing Instructions - Example Destination Point Supplier Shipping Point Supplier specific Ship day Mode of Transportation Shipping Requirements Must be signed & returned
Slide 29: 5. Supplier Routing - Additional Info
5. Supplier Routing - Additional Info • 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 EPM
Slide 30: 5. Supplier Packaging Requirements
5. Supplier Packaging Requirements • 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
Slide 31: Additional Recommendations
Additional Recommendations • 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 comme
Slide 32: Closing Thoughts
Closing Thoughts • 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 1. Primary contact: Anthony Salter – [email protected] / 248-447-1517