Production Logistics Process (Start of Series Production)
Production Logistics Process must be coordinated closely between Supplier and Continental location for every new Contract. The following topics must be coordinated and finalized between the Supplier and Continental Logistics Department before the first delivery for series production on the latest:
- Preferred Sourcing Model,
- Packaging Concepts,
- Information Interchange (EDI),
- Shipping Documents of Contract Products,
- Directives, contracts and other agreements,
- First-time Suppliers have to hand in the MMOG/LE,
- Transport concepts,
- Definition of contacts.
It is Continental’s policy not to accept products that do not meet the requirements of the applicable drawings and quality specifications. Requests for deviations on nonconforming products have to be approved by Continental prior to shipment. Required capacities for ramp-up have to be coordinated with the responsible logistics contact for the specific part and ordering Continental location.
The sourcing process is conducted by cross-functional teams and is linked to the qualification process to get the feasibility commitment from suppliers before final supplier(s) selection. Usually the supplier selection process consists in the following steps:
- Step 1: When new parts are to be sourced and potential suppliers are identified, Continental Purchasing or Quality representative forwards the RfQ (Request for Quotation) to Suppliers. With the RfQ the Supplier receives a package with different documents (e.g. quality requirements, contracts, supplier component review template etc.). Within this RFQPackage the Supplier receives also the Supplier Manual Logistics and Logistics Contracts. The Supplier should complete the forms as per Continental request. From SCMA (Supply Chain Management Automotive) perspective, at minimum the logistics part of the “supplier component review template” should be filled in completely and returned to Continental.
- Step 2: Based on the feedback in the RfQ, Suppliers are pre-selected for sourcing and negotiation starts.
- Step 3: Continental initiates a supplier component review (SCR) with pre-selected suppliers. Within this meeting the feedback of supplier in the ‘supplier component review template’ will be discussed.
- Step 4: Based on the outcome of such SCR the final Suppliers are selected for sourcing.
- Step 5: Final negotiation and business award to supplier.
Logistics weight and role in the sourcing process equals the roles of other functional departments (e.g. quality, purchasing).