www.amf-bruns.com

C O N V E Y O R S

MANUAL FOR SUPPLIERS Guideline for a cooperative partnership with AMF-Bruns

the experience of recent years has shown that also medium-sized companies cannot ignore today‘s challenges and trends. Nor are the effects of globalization, new technologies, or uncertain-ties in financial markets limited to large corpora-tions and industrial enterprises.

Long-term structural changes such as less verti-cal integration in manufacturing companies also affect small and medium-sized businesses, and bear considerable risks. But they also force companies to review their strategies and permit previous methods to be examined, and new ap-proaches to be tried out.

To this effect, we intend to enhance the business relations with our suppliers, and place them on a new basis of innovative cooperation. Hereby, we will explore new avenues, but without abandoning established procedures.

• We are an independent, medium-sized company, owner-operated in the third generation,

and we intend to keep it that way.

•  We are fully aware of the responsibilities we bear for our region and our environment, our employees, and our customers,

and that will continue to be so.•  One prerequisite for this is to maintain our

competitiveness, and that continues to be our primary

company goal.•  To the same extent that vertical integration is

reduced, the value of a good supplier basis and good supplier relationships increases,

and we intend to strengthen them.•  For this, we need cooperative suppliers as in-

novative partners for external added value, and that is our principal direction.•  A good partnership between manufacturer and

supplier always starts with open and direct communication,

and that is the purpose of this manual.

Dear partners,

PREFACE | 3

Apen, in August of 2013

Jan Woltermann, Managing directorTEAMWORK

REPLACES SIMPLE COOPERATION

KERNSTRATEGIE EINKAUF | 5

SHAPING THE FUTURE TOGETHER – CORE STRATEGY – PURCHASING

CORE STRATEGY – PURCHASING | 7

The principles for cooperation described on the following pages apply for all business activities: For the purchase of components, assemblies, and systems, for the purchase of operating sup-plies and investments, as well as the purchase of raw materials and services.

The qualification of our suppliers is established during cooperation, and only those applicants who prove to be strategic suppliers for specific classes of goods will be included in our Strategic Supplier List.

It is our aim to concentrate on a few core sup-pliers, in order to pursue a lasting and consistent development regarding price and quality. Similar-ly, great importance is attached to lean handling procedures in our cooperation.

In summary, we want to achieve a drastic reduc-tion in administrative activities for purchasing, and reduce inventory costs.

PRINCIPLES OF SUCCESSFUL COOPERATION

PRINCIPLES OF SUCCESSFUL COOPERATION

CORE STRATEGY – PURCHASING | 9

AMF-Bruns is fully aware of its social responsibi-lities, and acts accordingly. Both the company‘s reputation as well as the trust placed in us by customers, suppliers, business partners, and the general public depends largely on the sincere and responsible conduct of every employee.

Therefore, AMF-Bruns is committed to carry out its business operations in a fair, correct, and transparent manner. Our dealings are based on the laws of the countries in which AMF-Bruns is active.

Acting responsibly not only means that we are committed to consistent fairness and transparen-cy in our dealings with all our stakeholders, but also to manage our company in a sustainable and resource conserving manner.

We expect that our suppliers also accept and follow these guidelines.

OUR CODE OF CONDUCT: CORPORATE VALUES AND SUSTAINABLE DEVELOPMENT

OUR CODE OF CONDUCT

PRODUCT DEVELOPMENT

Our strategic suppliers are also members of the AMF-Bruns development team.By involving them at an early stage, and an open, constructive exchange of ideas, we are able to shorten our product development times and reach our targets even faster. Moreover, this approach enables us to reduce costs and increase our inno-vative abilities sustainably. An additional aim is to promote systems suppliers.

STRATEGIC COST MANAGEMENT

Cost transparency is essential for identifying competitive products and for optimizing structu-res. Therefore, our focus lies on a long-term co-operation with suppliers who are willing to openly discuss possible cost structure optimizations in a team with us.

Furthermore, it is important for AMF-Bruns that our partners have a sound economic foundation and are therefore able to ensure long-term and stable project handling.

PRODUCT DEVELOPMENT AND STRATEGIC COST MANAGEMENT

CORE STRATEGY – PURCHASING | 11

QUALITY MANAGEMENT

For AMF-Bruns, quality means product quali-ty as well as quality in business transactions. Our common goal is: Zero faults and continuous improvement.

More details on this are given in Chapter 3 of this supplier manual.

SUPPLY CHAIN MANAGEMENT

Delivery with the shortest possible lead times, high flexibility, and on schedule are criteria that AMF-Bruns achieves with transparent information procedures. Because in the long term, we can only remain competitive if we manufacture according to lean management principles, with simultaneous flexibility and low stock levels.

Therefore, our suppliers must be able to respond flexibly to our demands, and always keep in touch with us.

QUALITY MANAGEMENT AND SUPPLY CHAIN MANAGEMENT

CORE STRATEGY – PURCHASING | 13

SUPPLIER ADVANCEMENT

Advancement of suppliers towards systematic op-timization of technology, quality, costs, and logi-stics is an important element in the continuous improvement of our competitiveness.

That is why we carry out individual improve-ment projects at regular intervals in the fields of purchasing, production, and logistics in order to create an efficient competence network in the course of time.

ELECTRONIC PROCESSING OF BUSINESS OPERATIONS

It is our aim to use electronic means to simplify, improve, and speed up business operations and procedures with our suppliers.

Therefore, we expect our suppliers to provide the necessary technical infrastructure and correspon-ding expertise.

SUPPLIER ADVANCEMENT AND BUSINESS PROCEDURES

CORE STRATEGY – PURCHASING | 15

LIEFERANTEN-LEITFADEN | 17

IMPORTANT INFORMATION FOR OUR SUPPLIERS

OVERVIEW | 19

1. YOUR DIRECT LINE TO AMF-BRUNS ...............................PAGE 20 – 21 1.1 Information and communication 1.2 Contact partners 1.3 Within easy reach 1.4 Information transfer

2. A FORMAL BASIS IS REQUIRED ....................................................PAGE 22 – 23

2.1 General purchasing conditions 2.2 Confidentiality 2.3 Quality assurance agreements 2.4 Framework agreements

3. TOP QUALITY IS OUR CLAIM ............................................................PAGE 24 – 29 3.1 Quality management system 3.2 Process and product audit 3.3 Traceability 3.4 Delivery quality and incoming goods 3.5 Complaints handling, 8D report 3.6 Quality documentation 3.7 Change control management 3.8 Continuous improvement process (CIP)

4. EFFICIENCY WITH CONSISTENT ORDERING & DELIVERY PROCESSES ............................PAGE 30 – 31

4.1 The first delivery 4.2 Order handling 4.3 Order confirmation 4.4 Delivery and marking

5. A FEW BASIC RULES FOR SIMPLIFIED PROCEDURES ..............................................................PAGE 32 – 35 5.1 Driving on our company premises 5.2 Notification and delivery times 5.3 Transport and packaging regulations 5.4 Delivery and invoicing address 5.5 Shipping documents 5.6 Way bill 5.7 Delivery note 5.8 Packaging instructions 5.9 Document download

1.1. INFORMATION AND COMMUNICATION

Efficient communication and a smooth informati-on transfer are essential for successful cooperati-on. To ensure both aspects during hectic everyday work, everyone involved should know: – where the relevant information can be found quickly,– who is the correct contact partner, and– when and how he/she can be contacted.

1.2 CONTACT PARTNERS

The table on the next page shows you who is responsible for what according to function in our company, and how you can contact the right persons.

1.3 WITHIN EASY REACH

Our personnel can be contacted directly during the office hours from 8:00 to 17:00 hours on weekdays. Of course, you can also get in touch with your partner via e-mail.

1.4 INFORMATION TRANSFER

Orders, agreements, contracts, and other docu-ments must be in the customary written form. You can also contact us via e-mail, fax, regular mail, as well as EDI (electronic data interchange).

YOUR DIRECT LINE TO AMF-BRUNS

YOUR DIRECT LINE TO AMF-BRUNS | 21

AMF-Bruns GmbH & Co. KGHauptstraße 101 · 26689 D-Apen · Germanywww.amf-bruns.de

YOUR CONTACT PARTNERS

Reception Marlies Janßen .............................Tel. +49 (0) 4489 72-0 ............................ e-Mail: marlies.janssen@amf-bruns.de

Managing director Jan Woltermann ...........................Tel. +49 (0) 4489 72-7120 ................... e-Mail: jan.woltermann@amf-bruns.de

Strategic Purchasing Jörg Bührmann .............................Tel. +49 (0) 4489 72-7210 ................... e-Mail: joerg.buehrmann@amf-bruns.de Gerrit Ihnen ....................................Tel. +49 (0) 4489 72-7200 ................... e-Mail: gerrit.ihnen@amf-bruns.de

Operative Purchasing Rolf Claaßen .................................Tel. +49 (0) 4489 72-7202 ................... e-Mail: rolf.claassen@amf-bruns.de Maik Habelt ..................................Tel. +49 (0) 4489 72-7206 ................... e-Mail: maik.habelt@amf-bruns.de Angelika Nietsch ........................Tel. +49 (0) 4489 72-7204 ................... e-Mail: angelika.nietsch@amf-bruns.de Svea Schmidt ...............................Tel. +49 (0) 4489 72-7143 ................... e-Mail: svea.schmidt@amf-bruns.de Britta Schütte ..............................Tel. +49 (0) 4489 72-7209 ................... e-Mail: britta.schuette@amf-bruns.de

Incoming Goods – Apen factory Goods inwards ............................Tel. +49 (0) 4489 72-7392 .................... e-Mail: einkauf@amf-bruns.de

Incoming Goods – Friesoythe factory Marco Wiese ................................Tel. +49 (0) 4491 789-413 .................... e-Mail: friesoythe@amf-bruns.de

Accounting Jessica Gerdes ............................Tel. +49 (0) 4489 72-7127 .................... e-Mail: jessica.gerdes@amf-bruns.de

Technical Office / Production Contact via Strategic Purchasing

Fax for Purchasing in Apen: +49 (0) 4489 72-7215......Fax for Friesoythe factory: +49 (0) 4491 3617

2.1 GENERAL PURCHASING CONDITIONS

The business relations between you and AMF-Bruns are based on our General Purchasing Terms and Conditions.

2.2 CONFIDENTIALITY

It is quite normal that during business trans-actions between partners, e.g. development projects, confidential information and data are exchanged, which are only accessible to a limited number of persons, and are intended to be used exclusively for a particular purpose – and may not be made accessible to unauthorized third parties for saving, copying or publishing by any means.Therefore, trustful cooperation is impossible wi-thout absolute confidentiality. For this purpose, a corresponding Non-Disclosure Agreement is signed before cooperation begins.

2.3 QUALITY ASSURANCE AGREEMENTS

Not only is quality one of our basic claims, but for most of our products it is also safety-relevant. For us, therefore, fault prevention is more impor-tant than fault minimization. For this purpose, we make individual Quality Assurance Agreements. Of course, the exact criteria are defined in advan-ce together with you.

2.4 FRAMEWORK AGREEMENTS

Framework agreements are intended to speed up and simplify the preparation of individual con-tractual provisions by means of specific rules that have been agreed in advance for all individual con-tracts. Should this be applicable and in your own interest, we will make a corresponding proposal.

A FORMAL BASIS IS REQUIRED | 23

A FORMAL BASIS IS REQUIRED

TOP QUALITY IS OUR CLAIM | 25

3.1 QUALITY MANAGEMENT SYSTEM

Of course, when working together with you, we also observe the regulations of the quality assu-rance systems TS 16949 and DIN ISO 9001 ff. Moreover, we live quality in the sense of continuous improvement of our products and processes.

The consistency of a QM system is an essential success factor for our cooperation. Regarding our customers, we are committed to a zero-fault strategy, and must therefore optimize our perfor-mance continuously. Therefore, this automatically becomes the yardstick for external added value, i.e. also when cooperating with you.

3.2 PROCESS AND PRODUCT AUDIT

AMF-Bruns stands for high and reproducible quality, which is monitored permanently by our customers worldwide. In this respect, internal as well as external process and product audits are necessary criteria to ensure our quality de-mands. Consequently, and after consultation with you, we will carry out corresponding audits as necessary.

Our experience has shown that such an audit fre-quently results in significant improvements plus simplified cooperation.

3.3 TRACEABILITY

Our customers rightly expect complete traceabi-lity of every product we supply. This means that traceability extends across the entire internal and external added value chain, and is therefore an im-portant factor for our cooperation.

TOP QUALITY IS OUR CLAIM

TOP QUALITY IS OUR CLAIM | 27

3.4 DELIVERY QUALITY AND INCOMING GOODS

To ensure that the components delivered by you can be integrated smoothly into our production, it is extremely important that the specifications and properties determined by us and agreed with you are fully observed. For our customers, we must re-gularly provide evidence of the composition of the materials we use. Obviously, this also involves the internal and external added value chain.

Because we are fully aware of the responsibility we bear for our product quality, we work with a consistent QA system. Similarly, you must have a corresponding QA system that is matched to your company structure and size.

Obviously, we expect that our orders and calls are fulfilled in terms of technical specifications, quan-tities, and delivery schedules.

In accordance with the general trend, we will not carry out any incoming goods inspection in future, and rely on the suppliers‘ certificates.

3.5 COMPLAINTS HANDLING, 8D REPORT

In case of quality problems, we require your im-mediate support. For a constructive solution, we make use of the so-called 8D report. The eight disciplines are:

1. Team strategy (interdisciplinary work group)2. Problem definition & description3. Immediate measures: Implementation and monitoring of interim actions4. Definition and investigation of the root cause(s)5. Selection and verification of permanent corrective measures6. Implementation and validation of permanent corrective measures7. Implementation of suitable measures to prevent the problem occurring again8. Formally thank the team for its collective efforts

INCOMING GOODS AND COMPLAINTS HANDLING

TOP QUALITY IS OUR CLAIM | 29

3.6 QUALITY DOCUMENTATION

To ensure a traceable quality, you will be required to supply documentation that contains the added value stages, and proves compliance with the de-fined specifications. In case of agreed changes to products or processing steps, we will always require a product history in accordance with DIN EN ISO 9000.

The documentation also includes the storage of records such as the test reports of first samples, production releases, tooling reports, purchase contracts, and supplements, for a period of three years. Regarding the record retention period, we are obliged to observe the legal regulations.

3.7 CHANGE CONTROL MANAGEMENT

The procedures for change control management are part of the Quality Assurance Agreement, where they are detailed.

3.8 CONTINUOUS IMPROVE-MENT PROCESS (CIP)

AMF-Bruns has implemented a comprehensive CIP organization, with direct links to company ma-nagement. The continuous improvement of quali-ty, process, logistics, and price is a keystone that also determines the cooperation with your compa-ny. In this respect, we would appreciate being in-formed regularly about your internal CIP projects.

In all events, the philosophy of continuous impro-vement should help to optimize our cooperation.

DOCUMENTATION AND CONTINUOUS IMPROVEMENT

4.1 THE FIRST DELIVERY

For your first delivery, you will need a written re-lease permit confirming that the specifications have been fulfilled in the first sample test report. For all subsequent deliveries, the following proce-dure applies.

4.2 ORDER HANDLING

No order is placed without a previous written ag-reement. On this basis, AMF-Bruns will raise the order.

4.3 ORDER CONFIRMATION

For internal planning, we need your written con-firmation of our order on the next workday after receiving our order. Hereby, we assume that the completeness and correctness of our order has been checked, and the responsible purchaser or dispatcher has been informed.

4.4 DELIVERY AND MARKING

Responsibility for shipping/transport is defined in the agreed Incoterms. For ex-factory deliveries, AMF-Bruns specifies the shipping agent, and will only bear this agent‘s shipping costs. For reasons of simplicity, your company will be responsible for commissioning the shipping agent.

Hereby, you will ensure that the goods are deli-vered in suitable transport containers that have been approved by AMF-Bruns in order to prevent damage and impairments to quality (e.g. contami-nation, chemical reactions).

Marking of products, components, and packaging is done in accordance with the Logistic Instruc-tions provided by AMF-Bruns.It must be ensured that marking of packaged goods will remain effective also during transport and storage.

EFFICIENCY WITH CONSISTENT ORDERING & DELIVERY PROCESSES | 31

EFFICIENCY WITH CONSISTENT ORDERING & DELIVERY PROCESSES

5.1 DRIVING ON OUR COMPANY PREMISES

German traffic regulations (StVO) apply everywhe-re on AMF-Bruns premises. Maximum permissible driving speed is 15 km/h.

5.2 NOTIFICATION AND DELIVERY TIMES

To ensure efficient handling of your delivery and our internal processes, we request you to inform our Incoming Goods department by phone one day before the agreed delivery date, stating the order number and the expected delivery time. The time slots for delivery are between 7:00 and 15:30 h on weekdays (7:00 to 12:00 h on Fridays).

5.3 TRANSPORT AND PACKAGING REGULATIONS

Shipped goods must always be packaged and se-cured during transport in accordance with appli-cable safety regulations.

5.4 DELIVERY AND INVOICING ADDRESS

These are not necessarily the same. Whilst corres-pondence and invoices must always be addressed to our headquarters in Apen, deliveries can be made to the main factory in Apen as well as the branch factory in Friesoythe.

Main factoryAMF-Bruns GmbH & Co. KGHauptstraße 101D-26689 ApenGermany

Branch factoryAMF-Bruns GmbH & Co. KGEschstraße 24D-26169 FriesoytheGermany

Invoicing address:AMF-Bruns GmbH & Co. KGKreditorenbuchhaltungHauptstraße 101D-26689 ApenGermany

A FEW BASIC RULES FOR SIMPLIFIED PROCEDURES | 33

A FEW BASIC RULES FOR SIMPLIFIED PROCEDURES

A FEW BASIC RULES FOR SIMPLIFIED PROCEDURES | 35

5.9 DOCUMENT DOWNLOAD

Numerous documents and samples are always accessible online from:

suppliers-portal.amf-bruns.de

Please use the following password to download the documents: AMF-Partner

MASTHEAD

Legally responsiblefor content: Jan Woltermann

Publisher: AMF-Bruns GmbH & Co. KG Hauptstraße 101 D-26689 Apen Germany Tel. +49 (0) 4489 72-0 www.amf-bruns.de info@amf-bruns.de

Design & layout: zentral kommunikation werbeagentur GmbH www.zentral-kommunikation.de

5.5 SHIPPING DOCUMENTS

For deliveries to AMF-Bruns, the supplier or ship-per is legally responsible for the correct prepa-ration of shipping documents, and for the safe stowage of the goods during transport.

5.6 WAY BILL

A shipping order normally contains the following shipment details:

• Supplier‘s name and address• Recipient‘s address• Order number, contract number• Number of packages belonging to the shipment• Gross weight of the shipment• Delivery or shipment date

5.7 DELIVERY NOTE

The delivery note is a constituent part of every shipment, and should be attached clearly visible in a delivery note pocket on the outside of the pa-ckage or pallet. A delivery note normally contains the following details:

• Our order number• The article number with a precise article description• The delivered quantity

5.8 PACKAGING INSTRUCTIONS

The packaging must be suitable for the product, and must provide adequate transport protection for all types of shipment. We cannot be held lia-ble for any damage that results from inadequate packaging and which is not accepted by the insu-rance company.

ZertifiziertesManagement-System

Reg.-Nr.: Q1 0105027Reg.–Nr.: Q1 0313014AMF-Bruns GmbH & Co. KG · Hauptstraße 101 · 26689 Apen · Germany

www.amf-bruns.com

C O N V E Y O R S