Vendor Manual

Contents

1. Management System Policy Manual
2. Vendor
3. Product Lifecycle
4. Purchase Order Procedure
5. Logistics
6. Financial Management
7. Standard Terms and Conditions of Supply.

The following details form an addition to our agreed terms and conditions of purchase.

Introduction

It is the policy of Häfele UK Ltd to strive for and maintain the highest possible standards of warehouse distribution and customer service, with the aim of achieving complete customer satisfaction for our end users, and ensuring their needs and expectations are fulfilled in accordance with all the current industry norms and legislation.

In order to meet this policy objective, the company has established an effective integrated management system which is structured to meet the requirements of ISO 9001:2000, ISO 14001 and F.S.C. Quantitative targets and objectives for quality issues and environmental performance are set and reviewed annually. Sound management principles and practices are applied throughout the organisation to meet commitments to Health and Safety, Quality, the environment and a continual improvement culture.

We have developed, and will continue to develop, partnerships with like-minded vendors to support and mutually benefit from the success these principles have provided. To ensure a common understanding of our requirements we have drafted this vendor manual to communicate those requirements and provide guidelines and assistance in achieving them. The management system policy manual under heading 1.1 details current working practices of our company and as such all vendors should familiarise themselves with its content whether an existing or potential vendor. Goods supplied or quotations made will have to comply with the detailed requirements under the relevant sections.

1. Management System Policy Manual

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2. Vendor
2.1 Vendor Selection

Vendors wishing to supply Häfele UK should in the first instance contact the Purchasing Department via email purchasing@hafele.co.uk providing the following information:

• Company name.
• Company address.
• Contact name/s.
• Contact telephone number/s.
• Contact fax number/s
• E-mail addresses.
• Whether a manufacturer or distributor.
• Products manufactured/Products distributed only.
• Company insurance details (name of insurance company and the type of cover they provide).
• Web site if available.
• Other companies you currently supply.
• Any existing distribution arrangements in the U.K
• Current annual turnover.
• Where you heard about Häfele UK Ltd
• Are you presently supplying any other members of the Häfele Worldwide Group? If so please detail which ones and the products supplied including the appropriate Häfele part codes.

On receipt of your enquiry you will be contacted by the appropriate individual responsible for your area of products. The commercial negotiations will be conducted by them to their conclusion and they will involve and inform the appropriate parties within the organisation.

Häfele UK require a declaration from the vendor with details of the location of the manufacturing site for Häfele UK to consider whether a third party audit of the factory and products is required. Vendors must inform Haefele UK of any change of source, to enable us to assess any impact on our business and reputation.

Häfele UK require all of their suppliers to confirm that they have an appropriate current insurance policy including, but not limited to, the areas of personal injury, product liability and product recall. The levels of cover required can be assessed fully during the supplier evaluation and approval process.

2.2 Vendor Assessment

Successful vendors will be required to complete and return to their appointed coordinator the appropriate questionnaires prior to supplies commencing (See 2.8). The appointed coordinator will decide if supplies can commence and if and when a site visit is required.

2.3 Vendor Auditing

As part of the continual improvement process and for verification purposes vendors will be audited. These may be by members of the Häfele UK Ltd Purchasing and Quality Assurance departments or in certain cases third party organisations. The results of these audits will be analysed and any required action and deadlines reported and agreed with the relevant vendor.

2.4 Approval to Supply Form

Once all the required information has been provided and negotiations concluded the Approval to Supply form will be issued. At this point supplies can commence and all agreed terms and conditions will be detailed on this form. Any changes to the agreed terms can only be made with prior written approval and with the Approval to Supply form being re-issued to incorporate these changes.

2.5 Vendor Performance

Vendor performance is continually monitored by the company. Several quantifiable parameters are used including:

• Rejection analysis.
• Complaints analysis.
• Corrective action response.
• Accuracy of delivery information.

The results of these monitors and other information accumulated during a given period will be communicated to the vendor along with any corrective action and deadlines required.

2.6 Vendor Action Plans

Regular reviews will be held with your appointed coordinator and the management of the Purchasing Department. The results of these reviews, any audits held (see 2.3) and the results of the vendor performance process (see 2.5) will be detailed in an individual vendor action plan detailing agreed deadlines for each action point.

2.7 Disaster Recovery Plan/Business Continuity Management

All existing and potential vendors are required to have in place, and have provided details of, their Disaster Recovery Plan and Business Continuity Management plans.

2.8 Questionnaires

All vendors are required to complete the Vendor Management System Assessment form and return to their appointed coordinator.

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3 Product Lifecycle
3.1 Product Approval

For all products selected a Product Approval Form is required to be completed with the appropriate details prior to deliveries commencing. This form will be used to inform you of the Häfele part code that is to be used.

3.2 Instructions

As part of the product approval process all required instructions are to be included with the product supplied. The format and content will be agreed by your appointed coordinator but it is the vendor's responsibility to create any required artwork and ensure inclusion. Any claim arising from inadequate, incorrect or omitted instructions will be the liability of the vendor.

It is the vendor's responsibility to inform your appointed coordinator of any modifications to previously issued fitting instructions, to provide a copy set of the new fitting instructions for your coordinator, ideally in an electronic format, and to advise the date when deliveries containing the modified fitting instructions will begin.

3.3 Packaging and Labelling

All goods supplied are required to be adequately packaged and palletised to ensure safe arrival and unloading. The exact format will be determined during the commercial discussion with your coordinator but the following should be noted when making any quotations and supplies.
All goods will be required to be palletised. Format 1200x1000 or 1200x800 stamped EUR denoting Euro Pallet. Metal banding strips are not permitted to be used so if banding strips are required they must be plastic.
All goods will be required to be labelled including the following information:

• Häfele Part number
• Short Description of contents in English.
• Vendor part code.
• Quantity enclosed.
• Any additional details as denoted by your coordinator and detailed on the product approval form (See 3.1)

Important Note:

For health and safety reasons, the maximum weight per carton allowed to be handled by our warehouse operatives is 15 kg. Cartons exceeding a weight of 15 kg will only be accepted with prior agreement with your purchasing coordinator and must be clearly marked with a warning label stating the weight of the carton.

3.4 Product Markings/Stamps

Where applicable goods must be supplied with any appropriate product markings/ stamp to comply with any current legislation, norms or standard.Selected examples would be as detailed below:

• ISO 11469:2000 Plastics-Generic identification and marking of plastic products.
• ISO 1043-1/2/3/4.
• EN93/465/EEC C.E Marking Directive.
• B.S. E.N. Standards.

It is the vendors responsibility to ensure any alterations required to markings as a result of changes to existing, or implementation of new legislation, norms or standards are incorporated and communicated to Häfele.U.K.Ltd within the required timeframes.

3.5 Product Modification

Once a product has been approved no modifications can take place without prior written agreement and the product approval form being re-issued stating the modification and the date new specification supplies can commence. Any re-testing required as a result of any changes must be carried out prior to deliveries commencing. All costs are the responsibility of the vendor. Any redundant stock generated as a result of such a change would require full credit and disposal of s tocks at vendors cost.

3.6 Product Discontinuation

Any product discontinuation instigated by the vendor must be communicated to the appointed coordinator and supplies maintained to an agreed date. Quantities for after sales or warranty claims must be available for a minimum of 12 months after that date or a suitable direct alternative made available. Any costs incurred as a result of discontinuation will be the responsibility of the vendor.

3.7 Product Failure/Recalls

Should any vendor become aware of a failing within a product whether safety critical or not, they must inform Häfele U.K.Ltd immediately detailing the following:

• Exact details of the fault.
• Batch/Lot numbers and dates if known.
• The modifications being made to correct the fault.
• Availability date of correct replacements.

Should it be concluded that the correct course of action is to recall the product, the vendor will be liable for all costs incurred including any consequential losses determined at the time of the incident.

3.8 Hazardous Goods

Any goods that are deemed hazardous irrespective of the nature or type of classification, must be clearly identified in the preliminary discussions. All required C.O.S.H.H. and data sheets will be required before approval to supply can be issued. All goods delivered must be labelled to comply with the applicable directive/classification and be transported in compliance with all applicable current legislation including, but not to the exclusion of all others, The Transport of Dangerous Goods Act and A.D.R. All goods delivered should clearly identify the shelf life expiry date, or at minimum the date of manufacture, preferably in the recognised DD/MM/YYYY format.

3.9 Certification Requirements

Wherever applicable all goods are to be supplied complying with current legislation and directives. Supporting third party certification/verification will be required during the product selection process. Any product offered to Häfele U.K. Ltd must have a validity period of a minimum of 1 year remaining and if selected the vendor must be prepared to re-new any appropriate certification for so long as the product is purchased. Any failure to do so will result in the product discontinuation procedure being invoked as detailed in 3.6.

3.10 Wooden Products

Häfele UK Ltd. shall enforce the company policy which insists that all wooden products provided by its suppliers originate from controlled wood sources and, when specified by its customers, from approved Forestry Stewardship Council (F.S.C.) certified sources. Suppliers of FSC certified products need to ensure, that in the event of an interruption to the supply of FSC certified products, labels claiming FSC content must not be attached to non-certified product.

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4 Purchase Order Procedure
4.1 Placing of Purchase Orders

Purchase orders are electronically generated and wherever possible communicated as a PDF file attachment on email. You will require Adobe Acrobat reader to view these orders. If you do not have Adobe Acrobat you can obtain this from the Adobe website

4.2 Purchase Order Confirmations

Confirmation of the order is required within 5 working days of the order being received. The confirmation must contain the information detailed below. Any changes required to be made to the purchase order will only be valid if accepted in writing by your normal purchasing contact.

• Häfele part number.
• Vendor part number.
• Price.
• Quantity.
• Delivery date.

4.3 Amendments to Delivery Deadlines

Any expected delays to deliveries must be communicated to Häfele U.K. Ltd. at the earliest opportunity after every effort has been made to maintain the originally confirmed date. This should be done without any prompting from Häfele U.K.Ltd. If it is necessary to ship direct to our customer by express services in order to maintain a delivery commitment made based on the originally confirmed date, all costs will be the liability of the vendor.

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5 Logistics
5.1 Delivery Procedure

All goods being delivered to Häfele U.K.Ltd. require a booking in time. To obtain this you should contact the Goods in Manager on +44 (0)1788 548711 and by e-mail mick.dietrich@hafele.co.uk giving a minimum of 48 hours notice of pending delivery and detailing the number of pallets. This notice period does not guarantee acceptance as certain times will be busier than others. When making the booking it is essential you indicate if the delivery contains items exceeding 1.2 metres in length. This is due to the storage of these items being at a different location. The current delivery addresses are as follows:

Main Site		Long Items Storage		For Chep Pallets
Häfele U.K.Ltd. Swift Valley Ind Est Rugby Warwickshire CV21 1RD Tel: 0044(0)1788 548711		Häfele U.K.Ltd. Unit 2, The IO Centre Valley Drive. Rugby Warwickshire Tel: 0044(0)1788 575225		Häfele U.K.Ltd. Unit 3, The IO Centre Valley Drive. Rugby Warwickshire

Important Note

We operate dock levelling equipment and only rear loading vehicles can be accomodated. If you are unsure as to the suitability of the vehicle being used please clarify with the goods inwards department when making the booking. Any goods not delivered on an appropriate vehicle, identified as not complying with the agreed specification, or considered unsafe to offload may be refused delivery. All costs incurred would be debited to the responsible vendor.

5.2 Returns to Vendor

Where goods are to be returned to a vendor you will have been notified of the reason and given full details on number of pallets to be collected. At this stage all goods are required to be removed within 5 working days or goods will be returned to the vendor with all costs being debited.

5.3 Direct Deliveries to End User.

For commercial or reasons of neccessity to maintain service levels and delivery commitments, on occasion, consignments will be delivered direct to our customers. The specific arrangements for these will be made with your normal purchasing contact but all commercial invoices are to be forwarded to Häfele.U.K.Ltd. and none are to accompany the consignment to customer.

5.4 Freight Agreement.

To ensure the most efficient use of resources and minimise cost your potential supplies will be assessed and a minimum shipment level agreed and included on your approval to supply form. Consignments lower than the agreed level can only be shipped with prior written approval from your purchasing coordinator. Any costs incurred for failure to follow this procedure will be the liability of the vendor.

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6 Financial Management.
6.1 Price Lists.

A fully detailed price list is required for all products supplied. The minimum detail required is as follows:

• Häfele U.K. part number.
• Vendor reference to be used for accurate ordering.
• Prices detailing any quantity breaks.
• Validity period.
• Any rebate agreement.
• Payment terms.
• Raw material costs used for price calculation where applicable.
• Exchange rates used for price calculation where applicable.

Price lists will only be accepted in the following formats in order of preference:

1. Excel Format
2. CD-ROM

Quotations made for new products selected for sale by Häfele.U.K.Ltd. should be added to the master list and the list re-issued as and when necessary complete with revision number and date.

6.2 Price Amendments.

All requirements for changes to agreed pricing must in the first instance be notified to and agreed by your normal Häfele U.K. Ltd. purchasing coordinator. Price negotiations will be held annually in January and June. Agreements made with any other Häfele company are not considered binding unless agreed directly with Häfele U.K. Ltd. Under normal circumstances a minimum of 3 months notification is required to enable any changes to be implemented correctly.

6.3 Delivery Discrepancies.

Any discrepancies highlighted will be reported to the vendor and a course of corrective action agreed. If it is concluded that credit is due or to prevent delay to payment for actual goods received , a debit note will be raised. The details of and the reason for the debit note will be communicated to the vendor in writing before being issued. Whilst every effort is made to identify any such discrepancies at the point of delivery, it is possible that for operational reasons discrepancies are only highlighted at a later date.

6.4 Invoice Claims and Debit Notes.

As in 6.3 any invoice discrepancies on price, damaged goods or rejected goods will be notified to the vendor in writing. The same procedure as 6.3 will then be followed.

6.5 Failure to comply.

Häfele U.K. Ltd. reserve the right to claim for any costs or consequential losses incurred as a result of failure to comply with the agreed terms and conditions as detailed in this manual and/or the Approval to Supply form. Any such claim would be notified to the vendor in writing detailing the breakdown of such costs.

6.6 Rebates.

At the relevant stage in our trading relationship vendors will be contacted to conclude rebate agreements for business generated. The value and format these rebates will take will be negotiated and agreed with your normal purchasing coordinator.

6.7 Disputes.

In the first instance any dispute, howsoever caused should be notified to your normal purchasing coordinator. Should this fail to reach a satisfactory conclusion for both parties it should be referred to the Purchasing Manager who in turn will utilise any required parties to conclude the matter. This process does not prevent either Häfele U.K.Ltd or the vendor from pursuing their claim before the appropriate courts should the matter require it. For this purpose all matters will be dealt with under the law of the United Kingdom unless otherwise agreed with the Purchasing Manager or Managing Director of Häfele U.K. Ltd.

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7 Standard Terms and Conditions of Supply.

These will be detailed on the Approval to Supply form.