LogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page1/11LogisticsAgreementbetweenXXXXX&ChinaDistributionCentersPartyNameAddressXXXXXSchneiderWingoal(XXXXX)ElectricEquipmentCo.,Ltd.UnitCD,4/F,BuildingC1,XinMaoSciencePark,16RongYuanRoad,HuaYuanIndustrialDevelopmentArea,XXXXXP.R.ChinaChinaDistributionCenters(DC)ChinaSupplyChain&LogisticsPurposeDefinetherulesofthewholelogisticsflowbetweenXXXXXandChinaDistributionCenters.DefinetheprocessesthatwillenableasmoothflowandprovidegoodservicetoChinaDistributionCenters.Contents1.Scopeofthesupport2.Logisticsoffer3.Forecast4.Normalordermanagement5.Urgentordermanagement6.Elephantordermanagement7.Crisismanagement8.Inventorymanagement9.Transportation10.Insurance11.Claims12.Returnpolicy13.KPImanagement14.Communication15.Validityperiod16.AppendixLogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page2/11ItemWho1Scopeofthesupport-Productscoveredinthisagreementareintheattachedlogisticsdatafile.-Anychangesregardingreferencenumber,package,labelling,logisticparameters,transportationandnewproductswillbeagreedtopriortoimplementation,byallparties.XXXXXXXXXXandSC&L2LogisticsofferLogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page3/11-StandardleadtimeoStandardlead-timeisdeterminedbasedonorderpatternfromcustomersVsXXXXXcapacity.oXXXXXagreestosupplySC&Lwithinthestandardlead-timeasdefinedintheattachedlogisticsdatafile,subjecttothetermsandconditionsofthisagreement(exceptionspecifiedinsection5–Urgentordermanagementandinthesection6–Elephantordermanagement).oSC&Lwillplayaroleofchallengerofstandardlead-timeforthesakeofthesupplychain.Intheinterestofcustomers,SC&Lwillyearlyreviewthestandardlead-timeandaskXXXXXifanyimprovementcanbedone,withafocusonindentitemsfirstly,forwhichthestandardlead-timeimpactscustomersdirectly,andalsoforstockitems,forwhichsafetystockcanbeoptimisedwithdecreasestandardlead-time.oThestandardlead-timefromXXXXXtoSC&Lisincludedtheelementsasfollows,thedetailedtimeisdefinedintheattachedLogigramXXXXXsalesorderprocessingtimeXXXXXproductionleadtimeOrdergroupagetimeTransportationtimefromXXXXXtoSC&LGoodsreceivingdaysatDC-LotsizeoSC&Lcommitstoorderasmanyitemsaspossibleaccordingtolotsizedefinedinattachedlogisticaldata.oIfSC&Lhastherequesttoreducelotsize,SC&Lshouldprovidethepastyearsaleshistoricaldata(Ex-DC)tovalidatethisrequest.-PackagingoRefertologisticaldataforstandardpackagingplan.oAllordersshouldbeshippedtoSC&Linagreedpackagingmultiplesasperlogisticsdata.-ChangesoflogisticsofferoLogisticsoffershouldbeupdatedregularlybasedonconsumptionevolution.oAnychangeoflogisticsoffer(Standardleadtime,Lotsize,PackagingandGroupage)shouldbenotifiedinadvancetoSC&L.oForproductlaunching,phaseout,stockpolicychangefromstocktoindent,XXXXXandSC&Lshouldfollowthespecificprocedureasattached.oXXXXXshouldmakethedecisionforthestockpolicychangefromindenttostock,andsharetheinformationwithSC&Lassoonaspossible.XXXXXandSC&LXXXXXandSC&LXXXXXXXXXXandSC&LXXXXXandSC&LLogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page4/113Forecast-ForecastcollectionoBaseonXXXXXinternalprocess-ForecastaccuracyoThemonthlyforecastaccuracy(byproductfamily)within+/-20%XXXXXinternalLogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page5/114Normalordermanagement-WayofplacingPOoOrderswillbeplaceddailyinSAPsystem.-FrequencyofplacingPOoOrderswillbeplaceddailyaccordingtostandardlead-time,lotsize&maximumorderquantityasstatedinlogisticaldata.-OrderacknowledgementoTheorderacknowledgementisdoneautomaticallybySAPsystembasedonlogisticsoffer(excludecustomizedproduct).-ModifyorcancelPOoBeforemodifyorcancelPO,XXXXXandSC&Lshouldreachanagreement.-Dueorder.oTheprioritysequenceofordersisduedate.Overdueorderswillbeofthehighestpriority.oXXXXXshouldworkwithSC&LforanupdateofallpastdueorderslineswithreschedulinginformationtoSC&L.XXXXXXXXXXXXXXXXXXXXXXXXX5Urgentordermanagement-DefinitionofurgentorderoUrgentorderistheorderrequestingearlierdeliverythanstandardlead-time.-ProcessoWheneverthereisarequestfromCustomers/SOA/Marketing,XXXXXshouldcommunicatewithPOA(whoisthecontactwindowinSC&L)forindentreferencesandstockreferencessometimes.oForurgentgoodsreceiving,SC&LshouldputtheXXXXXdelayedshipmenttothe1stpriorityinGR(refertotheprocessinDC).oOutofabovetwosituations,ifXXXXXstillhavespecialrequest,pleasedirectlyinformcorrespondingDCmanager.Therequestofthiskindofcaseshouldbenotsofrequent.oHowever,thereisnoguaranteeforurgentorderrequest.Itdependsonothercustomer’sbacklog,XXXXXcapacity,andcomponentsavailability.XXXXXreservesrightstorescheduleotherordersinordertofulfiltheurgentorders.IfthereschedulingisnotagreedbetweenSC&L&XXXXX,theurgentordersrequestmaynotbeentertained.XXXXXandSC&LLogoalLogisticsAgreementbetweenXXXXX&ChinaDistributionCentersVersion:1Issuedby:XXXXXandSC&LDate:2010-9-10Page6/116Elephan